N a v a r r e M i n e r a l s L i m i t e d ( N M L ) A S X A n n o u n c e m e n t P a g e | 1

ASX Announcement

25 October 2016

Navarre Minerals Limited

ABN 66 125 140 105 ASX Code: NML

Corporate Details

Issued capital:

147.5M ordinary shares 25.4M unlisted options

Directors & Management:

Kevin Wilson

(Non-Executive Chairman)

Geoff McDermott (Managing Director)

John Dorward

(Non-Executive Director)

Colin Naylor

(Non-Executive Director)

Jane Nosworthy (Company Secretary)

Contact Details

Geoff McDermott Managing Director

Navarre Minerals Limited 40 - 44 Wimmera Street

Stawell VIC 3380 Australia

PO Box 385

Stawell VIC 3380 Australia

Tel: +61 (0)3 5358 8625

Email: [email protected] Website: www.navarre.com.au

Drilling Update, Stawell Corridor Gold Project

Drilling set to commence in November to test new gold targets at Irvine gold prospect

• Contract for 4,000m air-core drilling program executed

• Purpose is to drill test for the potential source of approximately 1 million ounces of alluvial gold mined during the 19th century

• Recently identified shallow drill targets at the Irvine gold prospect are proximal to the historic alluvial mine workings and may be part of the potential primary gold source

• Targets have never been drill tested, except one which returned 0.5m

  @ 7.2 g/t gold from 86.5m in DD94AA2541 and remains open in all directions

• The drill targets are geochemical & IP geophysics anomalies located proximal to the margins of the Irvine basalt dome and are consistent with that expected from a typical Stawell-style gold system

• Drilling to commence in the first half of November, weather permitting

Navarre Minerals Limited (ASX Code: NML) (Navarre or the Company) is pleased to advise that it has executed an agreement for a 4,000m air-core drilling program to test the Irvine gold prospect at its 100%-owned Stawell Corridor Gold Project, located 15 kilometres south of Stawell in western Victoria (Figure 1).

The program is designed to test for the potential primary reef source to approximately 1 million ounces of alluvial gold production mined during the 19th century. The Company's recent field investigations have identified a number of shallow geochemical and geophysical targets proximal to the alluvial workings which may form part of the potential source to the Ararat Goldfields alluvial gold production.

Navarre believes the Irvine prospect is a potential analogue of the multi-million ounce Stawell Magdala gold deposit located on the opposite side of the Stawell Granite in similar rocks, 15 kilometres to the north (Figure 1).

With the exception of one drill target, these targets have never been drill tested. In 1994 drill hole DD94AA254 returned a highly encouraging intercept of 0.5m @

7.4 g/t gold (see NML ASX release 29 April 2016) into the area now referred to as Target 5 (see Figure 2). DD94AA254 is the only drill hole to effectively test the flanks of the Irvine basalt dome and this target remains open in all directions.

1 Source: 1994 unpublished CRA Exploration technical report (see NML ASX release 29 April 2016)

Navarre Minerals Limited | ABN 66 125 140 105

40 - 44 Wimmera Street | PO Box 385 | Stawell VIC 3380 Australia t +61 3 5358 8625

e [email protected]u | w navarre.com.au

Navarre Minerals Limited | ABN 66 125 140 105

40 - 44 Wimmera Street | PO Box 385 | Stawell VIC 3380 Australia t +61 3 5358 8625

e [email protected] | w navarre.com.au

Navarre is preparing to commence drilling in the first half of November 2016, weather permitting. It is anticipated that peak gold results from the air-core drilling will be followed up with a Diamond drill program in early 2017.

Expenditure on Navarre's Irvine prospect exploration program will be matched dollar for dollar up to a maximum of $626,000 by a Victorian government co-funding grant under the TARGET Minerals Initiative (NML ASX release 28 June 2016).

Background

The Stawell Corridor Gold Project comprises two exploration licences, Tatyoon and Ararat, which includes the historic Ararat Goldfield. It is located between 10 and 70 kilometres south-east of the Stawell Gold Mine which is owned by Navarre's largest shareholder, Newmarket Gold Inc. (Figure 1).

Approximately 6 million ounces of historic and modern gold production has occurred from Ararat and Stawell.

The Irvine gold prospect is located 15 kilometres south of Stawell's Magdala Gold Mine and was identified in 2015 (NML ASX release 12 June 2015). The prospect occupies the northern end of the Ararat Goldfield, which is estimated to have produced approximately one million ounces of gold mainly from alluvial and deep lead production during the period 1854 to 1925.

Production of primary hard-rock gold from the Ararat Goldfield was low given the richness of the alluvial deposits, in contrast to the Stawell Goldfield, and is one of the reasons why Navarre is searching for economic primary gold mineralisation in the vicinity of the richest alluvial gold deposits.

The largest gold mine along the Stawell Corridor is the Magdala Gold Mine, which is producing gold from a deposit that has been mined to depths in excess of 1,600 metres below surface. Modern gold mining at Stawell has been continuous since 1982 with the Magdala gold deposit contributing more than 4 million ounces of the total 5 million ounces of gold produced to date from the Stawell Goldfield.

Gold mineralisation of the Stawell style occurs proximal to the margins of large basalt dome structures. The basalt structures are rigid and do not deform as much as the surrounding sediments. The deformation leads to the creation of voids allowing quartz veining and gold mineralisation to form around the basalt margins.

- ENDS -

For further information, please visit www.navarre.com.au or contact:

Geoff McDermott Managing Director

E: [email protected] T: +61 (0)3 5358 8625

Competent Person Declaration

The information in this release that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Geoff McDermott, who is a Member of The Australian Institute of Geoscientists and who is Managing Director of Navarre Minerals Limited. Mr McDermott has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity which he is undertaking, to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr McDermott consents to the inclusion in the release of the matters based on his information in the form and context in which it appears.

Forward-Looking Statements

This announcement contains "forward-looking statements" within the meaning of securities laws of applicable jurisdictions. Forward-looking statements can generally be identified by the use of forward-looking words such as "may", "will", "expect", "intend", "plan", "estimate", "anticipate", "believe", "continue", "objectives", "outlook", "guidance" or other similar words, and include statements regarding certain plans, strategies and objectives of management and expected financial performance. These forward-looking statements involve known and unknown risks, uncertainties and other factors, many of which are outside the control of Navarre and any of its officers, employees, agents or associates. Actual results, performance or achievements may vary materially from any projections and forward-looking statements and the assumptions on which those statements are based. Exploration potential is conceptual in nature, there has been insufficient exploration to define a Mineral Resource and it is uncertain if further exploration will result in the determination of a Mineral Resource. Readers are cautioned not to place undue reliance on forward-looking statements and Navarre assumes no obligation to update such information.

About Navarre Minerals Limited:

Navarre Minerals Limited (ASX: NML) is an Australian-based resources company that is creating value from a portfolio of early to advanced stage gold and copper projects in Victoria, Australia.

Navarre is searching for gold deposits in the extension of a corridor of rocks that host the Stawell (~5 million ounce) and Ararat (~1 million ounce) goldfields. The discovery of outcropping gold at the Irvine prospect is a prime focus for the Company in 2016/17. This is located 15km south of the operating Stawell Gold Mine which is owned by Navarre's largest shareholder and leading Victorian gold producer, Newmarket Gold Inc.

At the high-grade Tandarra Gold Project exploration work is targeting the next generation of gold deposits under shallow cover 40kms north of the 22 million ounce Bendigo Goldfield. Under a farm-out agreement, Catalyst Metals Limited is earning a 51% equity interest in Tandarra by spending $3 million over four years by advancing the project towards mineral resource status.

The Company is also targeting large VMS, porphyry-copper and gold deposits. The Western Victoria Copper Project captures multiple, largely untested targets in 130km of western Victoria's Stavely Arc volcanics.

Figure 1: Stawell Corridor Gold Project location map

Figure 2: Plan of the Irvine gold prospect showing drill targets, historic alluvial workings, Stawell Granite and interpreted basalt structures over an aerial photograph.