ASX and Media Release

Two high priority gold exploration targets to be drilled at Tunkillia

WPG Resources Ltd (ASX:WPG, WPGO) has received and assessed the results from the program of calcrete sampling that was conducted within EL 4812 at Tunkillia in the Gawler Craton of South Australia during September and October 2015. A total of 398 samples were collected at eight significant prospects in the immediate vicinity of the Tunkillia 223 deposit. The eight prospects sampled were selected from the 13 higher priority anomalies out of the total of 33 targets identified earlier this year for further work.

The background information on each prospect was detailed in the Tunkillia follow up calcrete sampling program ASX release on 21 October 2015. All calcrete assay results are summarised in Appendix 1.

Highlights

Y WPG's calcrete sampling has defined two high priority targets for deep drilling, which will commence early in the New Year;

Y At the Area 51 prospect results have outlined a large gold in calcrete anomaly that includes seven samples that returned values greater than 100 ppb gold. Importantly this major anomaly remains open to the north-west;

Y At the Tomahawk Extended prospect results have defined a new significant gold in calcrete anomaly with assays up to a maximum value of 154 ppb gold; and

Y A smaller and lower tenor gold in calcrete anomaly has been outlined at the Hatchet prospect, which will be drilled later.

21 December 2015

ASX Announcement - 21 December 2015

These three new targets are all located within close proximity to the existing Tunkillia 223 deposit as shown in Figure 1.

Figure 1: Tunkillia Project Regional Calcrete Anomalies & Location of Prospects Sampled During the Recent Follow-up Program

A summary of the sampling results is as follows:

1. Area 51

   The Area 51 prospect is located 4.5km along strike to the north-west of the Tunkillia 223 deposit was identified by strongly anomalous calcrete gold and silver results on a traverse sampled by a previous explorer. The in-fill sampling carried out by WPG consisted of forty-two calcrete samples on a 50m x 50m grid pattern along six traverses. The results have defined a significant gold anomaly that covers an area with dimensions 400 metres by 370 metres and is open to the north west, a direction that importantly coincides with the principal strike trend of the Tunkillia 223 gold deposit and its host, the major Yarlbrinda Shear Zone. These latest results are consistent with, but better define, the anomaly identified by previous explorers with seven samples returning values greater than 100 ppb gold, up to a maximum of 137 ppb Au.

   The anomaly peak of 185 ppb Au is comparable to the anomaly of 230 ppb Au that led to the discovery of the 223 deposit and the anomaly of 296 ppb Au that led to the discovery of the Challenger gold deposit. Challenger has produced more than 1 million ounces of gold. A joint venture between WPG and the PYBAR Group is the process of acquiring Challenger.

   Only limited follow-up was carried out by previous explorers, and this was comprised mainly of wide spaced RAB drilling. Several of these holes intersected anomalous gold values. The only deeper drilling done was a fence of five inclined RC percussion holes that were drilled as part of the 223 systematic resource drilling and were sited 300m to the south west of the centre of the Area 51 anomaly. All of these holes recorded highly significant wide intersections of low grade gold mineralisation and clearly define a strong bedrock anomaly that WPG considers could be part of a mineralised bedrock halo surrounding a zone of higher grade mineralisation.

   ASX Announcement - 21 December 2015

   
   

   Figure 2: Area 51 Prospect Calcrete Gold Anomaly

   The previous drilling intersected anomalous gold values in several holes in the immediate vicinity of the Area 51 prospect including 20m @ 0.3 g/t Au (40-60m EOH) in hole LER 1160 and 12m @ 0.18 g/t Au (42-54m EOH) in the adjoining hole LER 1161. The low grade mineralisation in both these holes was recorded within hydrothermally altered gneiss similar to that which is the principal host rock to the gold mineralisation in the 223 deposit.

   The Area 51 anomaly is also located proximal to a large, regional magnetic low that has a prominent north, north-west trend and may indicate the presence of a zone of hydrothermal alteration along a splay structure to the Yarlbrinda Shear Zone.

   The contour map of gold in calcrete at Area 51 and a cross section along the previously drilled line 116 000N 300m to the south west of the anomaly centre are shown in Figures 2 & 3.

   
   

   Figure 3: Area 51 Prospect Section 116 000N Bedrock Geochemical Gold Anomaly

   ASX Announcement - 21 December 2015

   
   

2. Tomahawk Extended

   The Area 191 and Tomahawk prospects are situated within a broad regional calcrete anomaly located 3.1km to the east of the Tunkillia 223 deposit, as shown in Figure 1. Drilling by previous explorers intersected significant gold mineralisation both within the upper weathered oxide and supergene saprolite zone and the primary bedrock at both these locations.

   The Tomahawk Extended prospect covers a zone with a potential 700 metre strike extent to the south of the previously located mineralisation. WPG collected 95 new calcrete samples on a systematic 50m x 100m grid pattern over an area of just under half a square kilometre across this target zone. The results have outlined a significant new anomaly that covers an area of 580m (local grid east-west) by 550m (local grid north-south) and with a peak value of 154 ppb Au as shown in Figure 4.

   
   

   Figure 4: Tomahawk Extended Prospect Calcrete Gold Anomaly.

   
   

3. Chainsaw

   Thirty samples were collected on a 50m x 100m pattern over the Chainsaw Prospect. Two samples returned anomalous gold results greater than 40 ppb, with a peak value of 87 ppb Au.

   
   

4. Hatchet

Hatchet is a new prospect that was generated from a comprehensive data review by WPG and is located 450 metres due north of the centre of the Tunkillia 223 deposit. Several RAB holes drilled by previous explorers in this vicinity recorded significantly anomalous gold values including an intersection of 7m @ 1.28 g/t Au and 0.70 g/t Ag.

WPG collected thirty-three samples at the Hatchet prospect on a 50m x 100m grid. Results have defined a small but discrete gold in calcrete anomaly that is 200m long by 340m wide with a peak value of 98 ppb Au as shown in Figure 5.