ASX announcement

11 JU LY 2016

Crescent Lake Drilling Intercepts Thick Spodumene Pegmatites

Argonaut Resources NL (ASX: ARE) (Argonaut or the Company) is pleased to announce the completion of the initial drilling program at its Crescent Lake project in Ontario, Canada.

Highlights

• A six-hole program of drilling at the Falcon Lake West deposit (Figure 1) has been completed.

• Drilling has succeeded in intercepting two adjacent spodumene bearing pegmatite units with thicknesses of up to 24m and 11m.

• Spodumene mineralisation is found throughout the drill core and varies in concentration from moderate to intense.

• All drill core has been cut and submitted for assay. Argonaut expects to report analytical results in three weeks.

• Visual assessment of mineralisation and thickness provides encouragement for further exploration in the Crescent Lake area.

400,000m E 410,000m E 420,000m E

Falcon Lake Discovery

Falcon Lake West

Falcon Lake Far West

Dempster East Falcon Lake East

5,590,000m N

North Aubry

Seymour Lake (Pye)

Tebishogeshik Dempster L28

Zigzag

Falcon Lake

Granitoids Metasediments Metavolcanics Diabase

South Aubry

5,580,000m N

Crescent Lake 11

0 5

kilometres

Unmapped area Water bodies/lakes

Recorded Lithium Pegmatites Tracks/trails

Geological boundary Fault

Argonaut Option Claims Argonaut Claims 100% Ardiden (ADV) Claims

Figure 1 Crescent Lake claim locations, spodumene pegmatite occurrences and geology.

Argonaut Resources NL ABN 97 008 084 848

Registered Office

Suite 4, Level 9

341 George Street

Sydney, NSW, 2000, Australia T +61 2 9299 9690

F +61 2 9299 9629

E [email protected]

Adelaide Office

Level 1

63 Waymouth Street Adelaide, SA, 5000, Australia T +61 8 8231 0381

F +61 8 8231 6092

E [email protected]

Crescent Lake Drilling

Crescent Lake is located 250km NNE of Thunder Bay in Ontario, Canada (Figure 2).

Following the grant of a required permit for the conduct of drilling at the Crescent Lake project area, Argonaut commenced a six-hole program of Diamond core drilling at the Falcon Lake West deposit. The program targeted two pegmatite units, one of which outcrops boldly (Plate 1). Spodumene mineralisation is clearly evident in outcrop (Plate 2).

The program confirmed the presence of the two targeted spodumene bearing pegmatites. The lower pegmatite unit is up to 24m thick (Plate 3) and the upper pegmatite unit is up to 11m thick. Spodumene mineralisation was logged throughout the pegmatite intervals. Spodumene concentrations vary from moderate to intense (Plate 4).

The drilling program has now been completed and all mineralised core has been cut. Samples have been submitted for analysis and Argonaut expects to report analytical results in three weeks.

High grade metamorphic complex Metavolcanic dominant

Granitic dominant Metasedimentary dominant Proterozoic and Phanerozoic cover International border

Provincial boundary Coast/lake

Major city

Geological subprovince boundary Superior Province geological boundary Lithium mine/resource

Lithium occurence

Hudson Bay

Labrador Trough

Thompson Belt

MANITOBA

ONTARIO

Trans Hudson

Sachigo

Pakeagama

CANADA

Greenbush Lake Project

James Bay

James Bay

Opinaca

Rose

Whabouchi

Lake

Berens

East Pashkokogan

Uchi ER

Crescent Lake Project

Seymour Lake

Moblan

Tanco BR

WR

Quetico Abitibi

Grenville Province

Separation

Rapids

Wawa

Lake Nipigon

Wabigoon

Georgia Lake

Thunder Bay

Lake Superior

Lacorne/Quebec Lithium

QUEBEC ONTARIO

Subprovince names ER English River BR Bird River

WR Winnipeg River

Southern Province

Lake Michigan

Toronto

0 200

kilometres

UNITED STATES OF AMERICA

Canada 01

Figure 2 Geology of the Superior Province, Canada, showing Greenbush Lake, Crescent Lake and regional lithium occurrences.

2 Argonaut Resources NL | ASX ANNOUNCEMENT

Structural Geology

Pegmatite emplacement and geometry is strongly influenced by structural geology. Argonaut engaged an international structural geology expert to consider the spodumene pegmatites at Crescent Lake. The resultant report has outlined two elongate zones that warrant detailed exploration for undiscovered pegmatites.

Argonaut is planning an exploration program to investigate these target zones with a view to adding to the inventory of lithium mineralisation already outlined at the Crescent lake project. Contingent drilling to define pegmatite thicknesses and grades is intended to follow this near-term program.

Plate 1 Outcropping spodumene bearing pegmatite at the Falcon Lake West deposit.

Argonaut Resources NL | ASX ANNOUNCEMENT 3

Plate 2 Large laths of spodumene (parallel and oblique to image) in Falcon Lake West outcrop.

Plate 3 Spodumene bearing pegmatite core from the Falcon Lake West deposit. Core trays 1.5m in length.

Plate 4 Intense spodumene mineralisation (white mineral oblique to core axis) in Falcon Lake West core.

4 Argonaut Resources NL | ASX ANNOUNCEMENT