7 October 2015 Hunter Resources plc ( Hunter or the Company ) (AIM: HUN) RECENT RESULTS FROM THE COMPANY S EXPLORATION PROGRAMME AT PROSPERO (PAMPAMALI NORTH) The Company is pleased to announce the results from its initial exploration programme at the recently acquired Prospero concessions, immediately north of Pampamali, its high- grade gold, silver and base metal project in Peru. PROSPERO HIGHLIGHTS Numerous anomalous prospects identified with alteration, geological and geochemical characteristics typical of both epithermal and porphyry style precious and base metal mineralisation. Prospero appears to represent an extension of the nearby Pampamali geological system while the geochemistry suggests it is higher in the system with the presence of more base metals. 212 samples were submitted for analysis at ALS Laboratories, Peru Identification by Hunter of new prospects exhibiting prominent alteration and containing anomalous to high grades of gold, copper, silver and/or zinc. The defined targets include: Strong Au anomalism in veins in the south east around the epithermal Claudio prospect and potentially along same vein containing the Gaviota prospect in Pampamali to the south. Best results: 6.04 g/t Au, 7.85 g/t Ag, 0.76% Cu 3.64 g/t Au, 11.15 g/t Ag, 1.65% Cu 2.06 g/t Au, 1.34 g/t Ag, 0.04% Cu Mapped and sampled epithermal anomalies in central- east of concessions with best results from Horatio and Titania prospects. Best results: Horatio 3.64 g/t Au, 11.15 g/t Ag, 0.13% Cu Titania 0.25 g/t Au, 145 g/t Ag, 9.85% Cu 0.02 g/t Au, 1.63 g/t Ag, 2.93% Cu Mapped and sampled porphyry style anomalies in central portion of concessions. Best results: Low order, anomalous gold with elevated copper and zinc 1
Prospero The 6 Prospero project concessions are owned 100% by Hunter's wholly owned subsidiary, Gold Hunter SAC and cover 5,000 hectares, located approximately 500km from Lima, Peru. The Prospero concessions are approximately 1km north west and along strike of Hunter s 51% owned Pampamali Project and from where the trend of mineralisation is seen to extend into the Prospero area. Prospero and Pampamali are located within a prospective silver- gold- base metal belt. The Compania de Minas Buenaventura owned Julcani silver- base metal mine lies approximately 25 km north west of the Prospero and Pampamali Projects and has been operating since 1937. Simon Hunt, Executive Chairman of Hunter, said We are pleased and encouraged with the initial findings received from our recent reconnaissance sampling programme at Prospero leases just north of our Pampamali project. This limited program confirms the extension of the epithermal system we are encountering at Pampamali. It also suggests that Prospero is situated stratigraphically higher in the mineralised sequence and consequently encounters a wider variety of mineral assemblages including base metals. This latest program represents only a small portion of the Prospero area but provides confidence in extending the study area and following up several anomalous targets. Exploration results During August and September, the Prospero concessions were visited for initial exploration. 212 samples were taken and sent for multi- element analysis. The results of the analyses are encouraging and indicate strong possibility for high grade epithermal, skarn, and manto replacement style deposits as well as large copper porphyries. In the month that was spent in the field, 18 targets were explored with varying levels of geochemical anomalies. The Prospero area appears to have potential for gold and base metal mineralization and the recognized occurrences to date appear to be fairly evenly distributed. More targets should be identified following further exploration. Table 1 summarises the highlights of sampling the Prospero anomalies while Figures 1 and 2 show the prospect locations and some sampling results. Name Table 1. Highlights of reconnaissance rock chip and channel sampling, Prospero Concessions (North Pampamali) Prospect Au ppm Ag ppm As ppm Cu ppm Pb ppm Sb ppm Zn ppm PRO- 202 Cassius 0.005 0.48 48.7 4.4 720 1.74 3120 PRO- 205 Cassius 0.005 1.09 38.8 68.1 2750 6.01 8590 PRO- 207 Cassius 0.005 0.98 52.9 120 2230 10.55 5850 PRO- 208 Cassius 0.005 0.92 29.7 39.6 1440 7.47 6980 PRO- 95 Claudio 3.64 11.15 11.80 16450 1190 4.50 22.0 PRO- 97 Claudio 0.70 22.20 >10000 1470 210 51.20 110 PRO- 108 Horatio 0.67 0.88 246 637 32.7 38.7 29.0 2
PRO- 88 Horatio 3.15 13.20 >10000 1340 92.4 211 36.0 PRO- 89 Horatio 0.79 2.51 1330 899 77.8 45.2 265 PRO- 30 Lysander 0.01 0.58 50.9 622 3.4 72.0 114 PRO- 31 Lysander 0.16 0.85 880 892 27.2 15.65 399 PRO- 173 Miranda 0.005 0.45 3450 1990 216 42.3 24.0 PRO- 174 Miranda 0.005 0.23 19.1 1480 2.9 4.88 84.0 PRO- 175 Miranda 0.03 2.55 1525 673 33.2 21.7 24.0 PRO- 176 Miranda 0.06 9.12 5400 821 78.4 34.5 63.0 PRO- 25 Titania 0.86 26.30 1420 562 24700 941 1940 PRO- 40 Titania 0.10 11.80 1520 88.2 1120 50.4 2160 PRO- 41 Titania 0.23 6.02 653 473 405 151.5 102 PRO- 42 Titania 0.18 1.20 376 618 114 35.1 136 PRO- 45 Titania 0.16 14.15 435 963 215 44.6 150 PRO- 46 Titania 0.02 1.63 5080 29300 50.0 2350 600 PRO- 47 Titania 0.25 145.00 5900 98500 706 23000 1470 PRO- 81 Titania 0.40 2.79 1195 694 124.5 17.35 40.0 PRO- 82 Titania 0.58 73.90 610 68.9 645 118.5 104 PRO- 03 Unnamed 0.15 8.23 677 1030 48.5 48.5 34.0 PRO- 139 Unnamed 1.2 2.99 512 776 146.5 46.6 113 PRO- 140 Unnamed 6.04 7.85 11.2 7600 250 12.8 15.0 PRO- 172 Unnamed 0.005 0.09 193 2370 7.8 7.04 29.0 PRO- 51 Unnamed 0.01 0.09 16.9 10.0 23.6 2.43 2300 PRO- 54 Unnamed 0.01 0.57 67.2 3630 8.0 5.06 15.0 PRO- 55 Unnamed 2.06 1.34 275 497 56.6 18.2 302 PRO- 59 Unnamed 0.16 2.68 3500 462 282 75.90 1310 The predominant structural trends in the Prospero area are a series of north- south and northwest- southeast veins. This is essentially the same structural setting as the Pampamali area. Two of the main faults from Pampamali project appear to cross into the Prospero area, including the structure containing the mineralized Gaviota and Piscocota veins (Figure 3). Several targets are located within the Claudio- Bianca area in south east Prospero, near a juncture of the north- south structure containing the Gaviota and a northwest- southeast regional fault. This area appears to replicate the setting at Gaviota and may be key for more Pampamali- style mineralization within the Prospero concessions. The mineralized occurrences in the Prospero area can be categorized into epithermal and porphyry styles. The epithermal style occurrences, in most instances, appear to be spatially related to porphyritic intrusions which suggests not just a continuation of the mineralised epithermal settings seen at Pampampali but that at surface they are stratigraphically higher in the geological system. 3
Targets prospect ranking Prospects were ranked for future exploration based on the following factors and their presence at or near the vicinity of the prospect: 1. Existence of potential source of mineralizing fluids (eg: Proximity to a porphyry) 2. Presence of Structure/Plumbing that could provide path for mineralising fluids (e.g. Regional structures and intersection of structures) 3. Hydrothermal alteration and veining 4. Potential Trap (Ie: a geological feature or structure or chemical barrier that could entrap migrating mineralizing fluids) 5. Geochemistry anomalies demonstrating presence of metals (Au, Cu, Mo, Ag, As, and base metals) Based on those criteria and following assessment in the field prospects were ranked as shown in Table 2. These rankings will help guide future work programs at Prospero. Prospect Rank Score Table 2. Prospect ranking, key features and highlights of assay results. Mineralisation style Miranda 16 Porphyry Titania 14 Epithermal Horatio 12.5 Epithermal Puck 11 Epithermal Claudio- Bianca area 11 Epithermal Lysander 10 Porphyry Ophelia 9 Porphyry Viola 8.5 Porphyry Solanio 8.5 Porphyry Features Mineralised 3 phase porphyry containing 2m wide hydrothermal breccia Hydrothermal breccia on contact between felsic breccia and sediments. ~100m wide breccias and prospective for limestone replacement (manto or skarn) Manto style replacement, skarn and brecciation. Small Spanish workings Intense silicification, stockwork veining with sulphide centres Scattered silicified structures with alteration and elevated grades. Along same structures identified in Pampamali Intrusion located in major fold hinge providing pathways for various mineralizing fluids. 200m x 200m pyrite mineralized porphyry Traces copper, lead, molybdenum. Two porphyries (~50-100m) in strongly altered and hornfelsed zone with stockworks, sulphides and leaching. 50m porphyry intruded into sediments with stockwork veining. Porphyry and replacement style mineral targets. Best Assays PRO- 172: 0.24% Cu PRO- 173: 0.19% Cu PRO- 173: 0.15% Cu PRO- 47: 145 g/t Ag, 0.25g/t Au, 9.85% Cu, 2.3% Sb PRO- 82: 73.9g/t Ag, 0.58g/t Au PRO- 54: 0.36% Cu, PRO- 55: 2.06 g/t Au PRO- 89: 0.79 g/t Au PRO- 88: 3.15 g/t Au, 13.2 g/t Ag, 0.13% Cu PRO- 95: 3.64 g/t Au, 11.15 g/t Ag, 1.65% Cu PRO- 97: 0.70 g/t Au, 22.2 g/t Ag, 0.15% Cu PRO- 139: 1.2 g/t Au, 0.08% Cu PRO- 140: 6.04 g/t Au, 7.85 g/t Ag, 0.76% Cu PRO- 139: 1.2 g/t Au, 0.08% Cu PRO- 31: 0.16 g/t Au, 0.09% Cu 4
Priam 7.5 Epithermal Sebastian 7 Epithermal Caliban 6.5 Epithermal Hydrothermal breccia zone associated with porphyry Silicified structure, 0.5m wide over >20m Quartz vein breccia zone associated with porphyryies. Approx 200m length Future exploration Hunter intends to extend the area of mapping and follow up the prospects outlined in Table 2. Large and scale mapping is needed, with focus on limestones and other reactive host rocks. Mapping of these units combined with observations of hydrothermal fluid bearing structures will develop targets with potential to be large replacement style bodies. In particular, 1. Mapping, geophysics, and further sampling is being considered for Titania, Miranda and Puck. These targets are the most accessible and have the highest probability of returning good results. 2. Follow up sampling will occur in the Claudio- Bianco area as well as an incorporation of the findings from work completed at Pampamali over the Gaviota vein mineralisations. 3. We will investigate the use of ASTER photography and analysis to better guide fieldwork and identify additional target areas. Competent Person In accordance with the guidelines of the AIM Market of the London Stock Exchange, Andrew Richards BSc (Hons), DipEd MAusIMM MAIG MSEG GAICD, a Director of Hunter and a qualified geologist with over thirty years of experience in the mining industry, is the qualified person as defined in the London Stock Exchange's Guidance Note for Mining and Oil and Gas companies. Mr. Richards has reviewed and approved the technical information contained in this announcement and has relied on primary information supplied by staff and third party consultants in carrying out his review. For further information, please contact: Hunter Resources PLC Simon Hunt (Chairman) +44 7733 337 755 Andrew Richards (Director and qualified geologist) +6142304 4879 Allenby Capital Limited (Nominated Adviser and Broker) Nick Harriss/Nick Naylor +44 20 3328 5656 www.allenbycapital.com www.hunter- resources.com Additional Information A copy of this announcement with mapping of lithology, veins and sample locations, shown with the Hunter Resources concessions can be viewed at www.hunter- resources.com, with the references as shown above. 5
Figure 1. Concession location plan. Pampamali and Prospero (Pampamali North) projects 6
Figure 2. Prospero concessions showing geology and target prospects identified. 7
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Figure 3. Prospero Project. Identified target prospects and highlights of assays received. Note location of Claudio area apparently along same structure as Gaviota Vein to the south in Pampamali Project area 9