ASX Announcement ASX Code: MAR 17 December 2015

ASSAYS RECEIVED FOR LADY MARY DRILLING PROGRAM

• Assays have been received for the RC drilling program at the Lady Mary Prospect

• Best intersection is 2m @ 3.20g/t Au and 1.90% Cu

Malachite Resources Limited (ASX Code: MAR) ("Malachite" or the "Company") is pleased to announce that assays have been received for drill samples from the recent program of reverse circulation drilling at the Lady Mary Prospect. The Lady Mary Prospect is located 6km west of Malachite's Lorena gold mine near Cloncurry in northwest Queensland (see Figure 1 - Location Plan).

Figure 1: Location plan of Lady Mary Prospect and Lorena Gold Mine

The drilling program consisted of eight holes (total 558m), testing the Lady Mary Prospect over a strike length of 400m. Hole lengths varied between 42m and 114m (refer Table 1 for drill hole details). The holes intersected metadolerite and quartz schist/quartzite units of the Toole Creek Volcanics, and mica schist units of the Mt Norna Quartzite. Zones of quartz-carbonate veining and alteration were also intersected.

Malachite Resources Limited ABN 86 075 613 268

Suite 2, Level 10, 8-10 Loftus Street, Sydney NSW 2000 P O Box R1295, Royal Exchange NSW 1225

Tel: (02) 9251 0032 Fax: (02) 9475 0439

www.malachite.com.au

Assays have now been received from the SGS laboratory in Townsville for a suite of 323 x 1m drill samples (including assay standards and duplicate samples), which were assayed for gold and a suite of accompanying elements. The only intersection of significance was in drill hole LERC04, which assayed 2m @ 3.20g/t Au and 1.90% Cu from 12m to 14m. All other drill holes returned low gold values (generally

The lack of mineralized intersections in the other six drill holes suggests that the mineralization previously sampled from the dumps surrounding the old pits is sourced from discontinuous pods of mineralization, none of which were intersected in the drill holes.

However, the intersection in drill hole LERC04 is to the east of the line of old pits and the gold-copper soil anomaly (see Figure 2), and this position was not tested by any of the other drill holes in this northern section of the prospect. Hence a program of follow-up drilling along strike and down-dip of this intersection is warranted.

Table 1 - Lady Mary Drill Hole Details

Figure2: Lady Mary Drill Hole Location Plan

For further information, please contact Malachite Resources Limited on (02) 9251 0032 or by email at [email protected] or visit the company's website at www.malachite.com.au

COMPETENT PERSON STATEMENT:

The information in this report that relates to Exploration Results is based on information compiled by Mr Russell Meares, a Competent Person who is a Member of the Australian Institute of Geoscientists. Mr Meares is a part-time employee of Malachite Resources Limited. Mr Meares has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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 Meares consents to the inclusion in this report of the matters based on his information in the form and context in which it appears. Exploration results are based on standard industry practices, including sampling, assay methods, and appropriate quality assurance/quality control (QA/QC) measures.

JORC Table 1 - Section 1: Sampling Techniques and Data for the Lady Mary Drilling Program