ASX and Media Release: 13 September 2016 ASX Code: WRM‌‌

White Rock's New Zinc-Silver Targets

Figure 1: Red Mountain project tenement outline on DGGS geology map (after Freeman et al., 2016) with locations for the Dry Creek and West Tundra Flats VMS deposits, and the geochemical target areas.

Figure 2: High priority conductors (pink) on a conductivity depth slice at 40m below surface from the 1D inversion of airborne electromagnetics. Locations for the Dry Creek and West Tundra Flats VMS deposits, and target areas (ReRun, Dry Creek West, Rod, WTF, Smog South, Smog North, Glacier East, Glacier West and Sheep Rogers) are defined by geochemical alteration (in green boxes), and the corridor of conductors along the northeast trend from Dry Creek to West Tundra Flats (dashed yellow line).

Figure 3: High priority conductors (pink) on a magnetics image (TMI-RTP). Locations for the Dry Creek and West Tundra Flats VMS deposits, and target areas (ReRun, Dry Creek West, Rod, WTF, Smog South, Smog North, Glacier East, Glacier West and Sheep Rogers) defined by geochemical alteration (in green boxes), and the corridor of conductors along the northeast trend from Dry Creek to West Tundra Flats (dashed yellow line). Note the general northeast trend of magnetic linear features through the area, particularly notable in the southern portion of the tenement package.

THE RED MOUNTAIN PROJECT

The Red Mountain Project is located in central Alaska, 100km south of Fairbanks, in the Bonnifield Mining District. The tenement package comprises 224 mining claims over a total area of ~143km², including the Dry Creek and West Tundra Flats VMS deposits.

Geology

The regional geology consists of an east-west trending schist belt of Precambrian and Palaeozoic meta- sedimentary and volcanic rocks. The schist is intruded by Cretaceous granitic rocks along with Tertiary dykes and plugs of intermediate to mafic composition. Tertiary and Quaternary sedimentary rocks with coal bearing horizons cover portions of the older rocks (Wahrhaftig, 1968). More

than a dozen VMS prospects are found within the Bonnifield District. The massive sulphide mineralisation is most commonly located in the upper portions of the Totatlanika Schist which is of Carboniferous to Devonian age (Figure 1).

White Rock has chosen to focus exploration on the Bonnifield East area where the two most significant deposits of Dry Creek and West Tundra Flats are located on opposite limbs of a regional syncline. The syncline controls the distribution of the prospective VMS horizon with the upper metasiliciclastic rocks of the Totalanika Schist forming the hangingwall to VMS mineralisation throughout the district. The prospective footwall sequence dips steeply to the north along the southern limb (where the Dry Creek deposit is located) and shallow to the south along the northern limb (where the West Tundra Flats deposit is located).

White Rock has recently expanded the Red Mountain tenement package to cover the best geochemical targets along both limbs of the syncline (Figure 1), including a significant area down dip of the exposed prospective VMS horizon. (ASX Announcement 9 August 2016).

Geochemical Target Generation

Dr Jim Franklin, a recognised global VMS expert, completed modern vector analysis of the geochemical data. The analysis reviewed all data compiled from historical exploration reports together with public data including that recently released by the Alaskan Division of Geological and Geophysical Surveys (DGGS). The assessment relies on a compilation of historical data. The historical data is not comprehensive and is of variable quality. Consequently, the analysis has focused on the geochemical vectors that can be adequately assessed using the available data. Future work will look to improve the quality of data required to complete a more comprehensive analysis of the geochemical vectors such that target areas can be refined.

The focus of the analysis was to determine alteration vectors that point to areas of probable VMS deposition. The most useful vectors using the available data compilation were shown to be the identification of sodium depletion in the footwall, barium addition in the footwall, barite in the massive sulphide horizon and hangingwall, and base metal (zinc-lead-copper) and precious metal (gold-silver) anomalism as direct indicators of mineralisation. The data compilation is of insufficient quality for additional vectors using manganese, magnesium, antimony and arsenic (amongst others) to be applied in the regional assessment of target areas, though in some cases they can be used to more precisely define vectors within individual target areas.

Based on alteration zonation patterns for local and global VMS deposits, the assessment was able to identify a number of high priority VMS target areas within the expanded Red Mountain tenement package, being ReRun, Dry Creek West, Rod, WTF, Smog South, Smog North, Glacier East, Glacier West and Sheep Rogers (Figure 1).