December 15, 2015

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Off-hole conductors confirmed beneath nickel sulphides in new area at Talc Lake

Key Points

• Two off-hole conductors identified below recently intersected nickel sulphides in new area on eastern edge of Talc Lake Prospect

• At least one of these conductors may indicate the development of better mineralisation, including massive nickel sulphides proximal to the hole.

• Detailed assessment of all geological and geophysical data underway ahead of drill testing of this high-priority target area.

• Assays received for hole RHDD0023 at Talc Lake confirm previously reported presence of nickel bearing sulphides: 1.3m at 0.5% nickel.

Mining Projects Group (ASX: MPJ) is pleased to advise that it has confirmed the presence of off-hole conductors situated below recently intersected nickel sulphides at its Talc Lake Prospect, part of its 100%- owned Roe Hills Nickel Project, located near Kambalda in WA (Figures 1 & 2).

Figure 1. MPJ projects location in Figure 2. Roe Hills Nickel Project geographical Western Australia location including relevant infrastructure

The conductors were identified during geophysical surveying of recently completed holes RHDD0026 and RHDD0027, which are located in a new area on the eastern edge of Talc Lake (Figures 3 & 4).

These holes, which were drilled 600m apart, represent the first effective test of what is now interpreted to be the basal ultramafic sequence at Talc Lake.

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Technical Director Mr Neil Hutchison said, "These results are an extremely exciting development in locating Massive Nickel Sulphides at Roe Hills. The eastern sequence is interpreted to be the main basal ultramafic flow in the Talc Lake area and potentially the most prospective. Newexco have identified new significant conductors coincident with recent Nickel Sulphide intersections within this sequence. These targets will be included in the high priority list for follow up drilling."

Both holes encountered well developed zones of disseminated, blebby and narrow veinlet massive nickel bearing sulphides with spot readings of up to 7 per cent nickel from portable Niton XRF (see ASX release dated November 26, 2015). Assays are pending on both these holes.

Hole RHDD0027 in particular intersected three zones of nickel sulphide mineralisation with the deepest zone extending over approximately 50m between the down hole depths of 320m and 370m (Figure 5).

Figure 3: Drilling Locations

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A preliminary assessment of the DHEM data by the Company's geophysical consultants, Newexco, reports a strong off-hole conductor situated north of RHDD0026. This conductor is possibly coincident with a shale horizon north of the hole, however as seen elsewhere there is often a close spatial relationship between shales and nickel sulphide accumulations. Consequently the conductor is considered worthy of further evaluation.

Newexco also reports off-hole responses from RHDD0027. The intersection responses within RHDD0027 appear to be related to sulphidic black shales internal to the ultramafic sequence while the off-hole responses are coincident with zones of nickel-bearing sulphides and may indicate the development of better mineralisation, including massive nickel sulphides proximal to and down dip of the hole (Refer Figure 5).

A detailed assessment of all available geological and geophysical data is in progress to guide follow-up drill testing of this emerging high priority target area.

Figure 4: Talc Lake Drilling Locations

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Figure 5: Schematic Cross Section of Diamond Drill Hole RHDD0027

TALC LAKE WEST

Assays received for hole RHDD0023 at Talc Lake confirm the previously reported presence of nickel bearing sulphides (refer Figure 3 & 4 and ASX Announcement dated November 9, 2015).

The assay result for RHDD0023 was: 1.3m at 0.5% nickel; 1077ppm Cu; 81ppbPt; 139ppbPd from 256.8m

As reported previously, spot readings of sulphide blebs/veinlets within the zone sampled for assay using portable Niton XRF returned values up to 3.42% nickel.

Drillhole RHDD0028, which was targeted on a strong off-hole conductor identified from hole RHDD0023, encountered a zone of disseminated and blebby nickel bearing sulphides over approximately 1m from 277m in close proximity to the basal ultramafic contact without identifying a source of the conductor.

Spot readings of selected sulphide blebs within the mineralised zone using portable Niton XRF confirm nickel values up to 2.0%.

To better define the location of the conductor in order to assist ongoing drill testing of this high priority target, a DHEM survey of the hole was initiated. Unfortunately the survey was unable to be completed due to a blockage within the PVC casing installed within the hole.

As a consequence, a selection of key holes (RHDD0004 & 5; RHDD0023) previously completed in the area were re-surveyed utilising previously unavailable high powered DHEM equipment to ensure that the best possible definition is achieved prior to initiating further drilling.

A preliminary assessment of the data by Newexco has successfully identified a strong late time conductor located down dip/plunge of holes RHDD005 and RHDD0023 in a position coincident with interpreted basal ultramafic contact.