18 September 2015
Market Announcements Platform
ASX Limited
Exchange Centre
20 Bridge Street
Sydney NSW 2000

ASX Code: SEG

SEGUE AND MMG LIMITED ENTER INTO PLUMRIDGE NICKEL JOINT VENTURE

HIGHLIGHTS:

 Segue has entered into a farm-in joint venture with a subsidiary of MMG Limited (MMG) covering eight (8) exploration tenements at the Plumridge Nickel Project in the Fraser Range Province .

 Through the joint venture, MMG can earn a 51% interest in the project by investing $6.5 million in exploration activity from September 2015 to December 2019.

 MMG also has the option to increase its interest to 70% by investing an additional $7.5 million.

 All joint venture tenements will be maintained by MMG during the earn-in period and MMG will manage all exploration activities.

Figure 1: Plumridge Nickel Project Location Map

Key Facts:

Segue Resources Limited

ASX Code: SEG Share price (16/09/15): 0.2¢
52 week range: 0.1¢-1.5¢ Shares on issue: 2,639.8m Market cap.: $5.3m

Plumridge Nickel & Gold Project

Location: Fraser Range, WA Tenement holding (100%1): 3,300km2

Deralinya Nickel Project

Location: Fraser Range, WA Tenement holding (70%): 1,700km2

Pardoo Nickel Project

Location: Pilbara, WA Tenement holding (100%1): 330km2

1. Subject to farm-out joint venture may reduce to 49% initially.

Page 1

Segue Resources Limited (Segue or the Company) is pleased to announce that it has entered into a joint venture agreement with international resources company, MMG, over eight (8) tenements at the Company's Plumridge Nickel Project in the Fraser Range Province, Western Australia.
The Plumridge Nickel Joint Venture (Joint Venture) allows MMG to earn up to a 70% interest by funding up to $14 million of exploration covering 2,250km2 of exploration licences across the Fraser Range. Segue will retain a 100% interest in three (3) exploration licences which includ e the Corvette gold prospect and Salt Creek Intrusive Complex (Figure 2).

Figure 2: Plumridge Nickel Joint Venture tenements over regional magnetics

Page 2

Plumridge Nickel Joint Venture (Segue 100%, MMG earning up to 70%)

Under the Joint Venture, MMG can earn an initial 51% interest through the expenditure of $6.5 million before 31 December 2019 (Stage 1), including $1.5 million to be spent before 31 December 2016.
Once MMG has met the Stage 1 requirements, MMG can elect to increase its interest by 19% (to 70%) through the additional expenditure of $7.5 million within two (2) years ( Stage 2). MMG must maintain all tenements in good standing during both Stage 1 and Stage 2.
The Joint Venture agreement contains standard provisions, including contributions in prop ortion to equity holdings, dilution and pre-emptive rights. If either Segue or MMG's joint venture interest dilutes to less than 10% then that party's interest will convert to a 1.5% NSR royalty.
Over the past two years, Segue has completed a series of tr ansactions which have resulted in the Company owning a 100% in over 3,300km2 of exploration tenements at the Plumridge Project in the Fraser Range Province of Western Australia. Segue has undertaken a significant amount of regional exploration, including a detailed aeromagnetic survey and more recently a project -wide gravity survey. The 100%-owned, contiguous tenement holding, coupled with high quality datasets and systematic exploration programme has allowed Segue to enter into the first exploration joint venture with a leading mining company in the Fraser Range.
Commenting on the Plumridge Nickel Joint Venture, Segue's Managing Director, Mr Steven Michael, said:

The Plumridge Nickel Joint Venture with MMG is a significant milestone for Segue in the exploration for a world-class nickel deposit in the Fraser Range. The multi-million dollar, multi-year joint venture with a leading diversified base metals company will provide the necessary resources, both financial and technical, to adequately explore the extensive tenement holding at the Plumridge Nickel Project.

MMG has a highly skilled team of geologists and geophysicists who will help maximise the potential for a significant nickel-copper discovery at Plumridge with a large and accelerated exploration programme. MMG will manage all exploration activities on the Joint Venture tenements and is required to spend a minimum of $1.5 million by 31 December 2016 and a further $5.0 million by

31 December 2019 to earn an initial 51% interest in the Joint Venture.

If MMG elects to continue sole-funding beyond Stage 1, it can increase its interest to 70% through an additional $7.5 million of expenditure over two years. If this occurs, a total of $14 million would have been spent by MMG on the Plumridge Nickel Project, with Segue retaining a 30% interest.

We are excited about the potential upside this joint venture partnership may deliver.

Plumridge Project (Segue 100%)

Segue will retain a 100% interest in three exploration licences to the west of the Plumridge Nickel Joint Venture tenements (Figure 2). These tenements contain the Harris Lake Shear Zone which hosts several known gold prospects (Plumridge Gold Project) and the Salt Creek Project. Segue is currently developing an exploration strategy for both the Salt Creek Project and Plumridge Gold Project.
The Plumridge Gold Project lies approximately 60km southwest of the +5 million ounce Tropicana Gold Project. Gold mineralisation at the Plumridge Gold Project was discovered in 2007 by previous tenement holders and includes the Corvette, Mustang, Stingray and Camaro prospects. Segue has

Page 3

completed a Portable Infra-red Mineral Analysis (PIMA) study on over 14,000 historical bedrock drill chips and undertaken a structural review incorporating the recent gravity survey data.
The Plumridge Project also contains around 40 strike kilometres of the Salt Creek Complex, which is a series of discrete magnetic features potentially representing mafic/ultramafic intrusions prospective for magmatic nickel-copper sulphide mineralisation. In late 2014, Independence Group NL (ASX: IGO) entered into the Salt Creek JV with AngloGold Ashanti covering ~3,000km2 of tenements immediately to the north and south of Segue's Salt Creek Project (Figure 3).

Figure 3: Plumridge Project (blue) over simplified geology

Page 4

About MMG

MMG is a leading global resources company which operates and develops copper, zinc and other base metals projects across Australia, the Democratic Republic of Congo (DRC), Laos and Peru. MMG is headquartered in Melbourne, Australia and listed on the Hong Kong Stock Exchange (HKEx: 1208).

For further information visit or contact:

Segue Resources Limited Mr Steven Michael Managing Director

T: +61 8 9383 3330
E: [email protected]

Page 5