16 May 2014 Market Announcements Platform ASX Limited Exchange Centre, 20 Bridge Street Sydney NSW 2000 ASX Code: SEG SEGUE IDENTIFIES THREE NEW GROUND EM CONDUCTORS AT PLUMRIDGE NICKEL PROJECT Segue Resources Limited (Segue or the Company) is pleased to announce the identification of another three ground EM conductor bodies at its Plumridge Nickel Project in the Fraser Range Province (Figure 1). This follows the two ground EM conductors identified and released on 7 May 2014. Segue s ground EM survey in the Fraser Range is now 80% complete. Commenting on the new EM conductors, Segue s Managing Director, Mr Steven Michael, said: As the largest ground EM survey in the Fraser Range nears phase 1 completion, we are delighted to announce the identification of another 3 conductors, on top of the 2 announced a week ago. The early success of this programme is very encouraging and comes at a time of strengthening nickel prices having increased over 50% year-to-date to around US$9/lb. Segue s Technical Director, Dr Howard Carr explained: The Moving Loop EM (MLEM) conductors, identified from recently collected field data, are located within three different magnetic eye features. This data requires processing and possible plate modelling to more accurately locate and define the conductive body. More data acquisition may be conducted prior to processing and modelling to provide us with confidence that these conductors represent quality drill targets. Conductor 3 Conductor 3 is classified by our geophysics consultants Newexco as the most promising conductor identified to date (Figure 2). It is hosted by eye #6, a cluster of discrete magnetic anomalies within a broad zone of flat magnetic signature. The conductor lies midway from the centre to the boundary of the interpreted intrusion and shows a medium to strong response in the 2-5ms time delay channels, suggestive of a shallow, medium conductance (conductivity x thickness) body. Depth of cover in this area is around 38 metres. Data processing and modelling is warranted to more accurately determine the size, shape and depth of the body. Page 1
Conductor 3 Conductor 5 Conductor 4 Conductor 1 Conductor 2 Completed EM Line EM Conductor Figure 1 Plumridge Nickel Project Eye Targets and EM Survey (Targets 4 16 Complete) Page 2
Conductor 3 0 0.5 1 2 kilometres (south) shows an anomalous response coincident with the western flank of the Figure 2 Conductor 3: The Bz data of the high density MLEM traverses over eye #6, showing an elevated 2-5ms response towards the centre of the interpreted intrusion (overlain on Total Magnetic Intensity-Reduced to Pole) Conductor 4 Conductor 4 is on the NE margin of eye #7 and shows a low to medium response in the 2-5ms time delay channels, indicating it is a relatively shallow body (Figure 3). This conductor remains open to the east and the conductive traverse will likely be extended around 400 metres further to the east to close it off. Early indications are that this body warrants more data acquisition, data processing and plate modelling. Conductor 4 0 0.25 0.5 1 kilometres Figure 4: E18 sits on the margin of a regional geological contact. MLEM profiles of channels 15 Figure 3 Conductor 19 4: (2 Bz 5 data ms) of show the a high weak density anomalous MLEM response traverses on line over 6670700 eye at #7, the showing eastern margin an elevated 2-5ms response on the NE of the interpreted intrusion (overlain on Total Magnetic Intensity-Reduced to Pole) Page 3
Conductor 5 Conductor 5 has been identified in the northern most reconnaissance MLEM traverse across eye #8 (Figure 4). The conductor towards the centre of interpreted intrusion eye shows a low to medium response in the 2-5ms time delay channels, indicating it is a relatively shallow body. This conductor remains open to the south, and north, and parallel MLEM traverses on our high density EM specifications (400m transmitter loops, 100m stations), data processing and plate modelling appear to be justified at this stage. Depth of cover in this area is around 41 metres. Conductor 5 0 0.5 1 2 kilometres Figure 3: The northern line of E17 shows an elevated response central to the interpreted Figure 4 Conductor 5: Bz data of northern most reconnaissance MLEM traverse over eye #8, showing an elevated 2-5ms response towards the centre of the interpreted intrusion (overlain on Total Magnetic Intensity-Reduced to Pole) Segue and Newexco have completed a review of the ground EM survey results received to date. Given the ground EM crew are still in the field, a phase 2 follow-up data acquisition survey is being developed to better define some of the conductors identified to date, and to take advantage of the elimination of mobilisation/demobilisation costs. The 16 eye features subject to the phase 1 intensive ground EM survey were chosen from a suite of 30 eyes, identified from high resolution aeromagnetic data. All 16 eyes were distal to lignite-bearing palaeodrainage, as defined by regional AirCore drilling completed by previous explorers. This has proven to be a very successful selection technique with only one eye feature to date recording EM-conductive surficial material. The lack of surficial conductors improves the overall quality of EM data, depth of penetration of the survey and the reliability of processed and plate modelled data. Now that the most EM-responsive eye targets have been surveyed and priority targets generated for further work, the remaining 14 eyes will be further investigated. It is planned to complete reconnaissance EM traverses over a number of these eye targets to determine the impact of any surficial conductors to the identification of true bedrock conductors. If warranted, follow-up MLEM surveying on the same specifications as that currently underway (400m transmitter loops and 100m receiver stations) will be completed. Page 4
For further information visit www.segueresources.com or contact: Segue Resources Limited Mr Steven Michael (Managing Director) or Dr Howard Carr (Technical Director) T: +61 8 9486 4699 E: info@segueresources.com Competent Persons Statement The information in this report that relates to Exploration Results and Mineral Resources at the Plumridge and Deralinya Projects is based on information compiled by Dr Howard Carr, Technical Director, who is a Member of The Australian Institute of Geoscientists. Dr Carr has more than five years experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves. Dr Carr consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Page 5
Criteria JORC TABLE 1 Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.) Explanation Sampling techniques Moving Loop Electro Magnetic (MLEM) Survey. 400m transmitter loops, 100m spaced receiver stations. No rock or ore sampling conducted. Drilling techniques No drilling conducted. Drill sample recovery No drill samples recovered. Logging No logging conducted. Sub-sampling techniques and sample preparation No sub-sampling or sample preparation conducted. Quality of assay data and laboratory tests No assays completed. Verification of sampling and assaying No verification of sampling and assays. Location of data points Data spacing and distribution Ground EM lines located by hand held GPS. 100m-spaced receiver stations. Orientation of data in relation to geological structure MLEM lines at right angles to the axis of elongation of interpreted late stage intrusions. Sample security Audits or reviews No sampling. No audits. Page 6
Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Criteria Explanation Mineral tenement and land tenure status Tenement ID Status Interest at beginning of quarter Interest acquired or disposed Interest at end of quarter Plumridge Project E28/2267 Granted 0% 100% 100% E39/1710 Granted 0% 100% 100% E28/2266 Granted 0% 100% 100% E39/1709 Pending 0% - - E28/1475 1 Granted 0% 0% 0% E39/1084 1 Granted 0% 0% 0% E39/1117 1 Granted 0% 0% 0% E39/1118 1 Granted 0% 0% 0% 1. Segue will acquire an initial 65% interest in the four tenements for $100,000 in cash and the issue of 50 million Segue shares. Segue may acquire an additional 35% (for a total of 100%) by the payment of $200,000 to IGS within three months of the agreement. Exploration done by other parties None. Geology Drill hole Information Proterozoic Intrusive Nickel Sulfide deposit. No drilling. Data aggregation methods None. Relationship between mineralisation widths and intercept lengths No intercepts. Page 7
Criteria Diagrams Explanation No discovery. Balanced reporting Other substantive exploration data All exploration results reported. No other data. Further work MLEM survey continues. Page 8