22 December 2015

High Grade Lisa Lens Intercept Completes the Phase II Drilling Program at Woodlawn

• Significant assays received from Lisa Lens:

  o 12.4m @ 20% ZnEq1 from 222m (12% Zn, 1.6% Cu, 2.0% Pb, 0.7g/t Au, 23g/t Ag), WNDD0104

   Including 9.5m @ 26% ZnEq from 223m (16% Zn, 1.7% Cu, 2.7% Pb, 0.68g/t Au, 28g/t Ag)

• Significant assays received from H Lens :

o 2.5m @ 45% ZnEq from 93m (7.1% Cu, 4.5g/t Au, 626g/t Ag) WNDD0103

Heron Resources Limited (ASX:HRR TSX:HER, "Heron" or the "Company") is pleased to provide recent results from the Phase II drilling program as part of the feasibility study at Woodlawn, its wholly-owned project, located 250km south- west of Sydney, New South Wales, Australia.

As highlighted in the Heron release dated the 25 November 2015, the final hole of the Phase II program intersected a thick zone of high-grade polymetallic sulphides in the Lisa Lens position. Assay results from this drill core have confirmed the high grade nature of this new lens. In addition, a number of other high grade intercepts have been recorded in the H and G2 South lenses, providing further confirmation of substantial mineralisation at shallow depth.

Heron's Managing Director and CEO, Mr Wayne Taylor, commented on these latest results:

These high grade intercepts represent the last assays from the Phase II drilling program and is an excellent way to complete this stage of work at Woodlawn. The principal aim of this campaign was to upgrade known resources; however, the program was also successful in providing further support for the substantial potential of a number of zones at shallow depth. The results at Lisa Lens are particularly pleasing, as it provides increased confidence in this new zone which will be readily accessed from the existing mine design. This work further provides the foundation to expand the mine plan beyond the initial reserve position which is being developed as part of the Woodlawn Feasibility Study.

Lisa Lens

o 12.4m @ 20% ZnEq from 222m (12% Zn, 1.6% Cu, 2.0% Pb, 0.7g/t Au, 23g/t Ag), WNDD0104

 Including 9.5m @ 26% ZnEq from 223m (16% Zn, 1.7% Cu, 2.7% Pb, 0.68g/t Au, 28g/t Ag)

This recent intercept into the new Lisa Lens is very encouraging and confirms a significant high grade mineralised zone along strike from the previously mined I Lens (see Figure 1). The lens appears to be offset across a sub-horizontal fault which crosscuts both lenses, but the Lisa Lens remains open both above (up-dip) and below (down-dip) this interpreted fault. Further drilling will be required to delineate the dip and strike limits of the lens; however the grade and thickness suggests this will be a valuable addition of shallow resources to the mining inventory in the early years of mining.

1 Zn equivalents (ZnEq) in this release are based on the formula: Zn (%) + 0.81 x Pb(%) + 3.12 x Cu(%) + 0.86 x Au(g/t) + 0.03 x Ag(g/t). All these metals are expected to be recoverable. Refer to the announcement of 22 April 2015 entitled "Preliminary Economic Assessment Delivers Strong Business Case for the Woodlawn Zinc-Copper Project" for further information.

Other Assay Results

A number of further significant assay results were also received in the G2, G2 South and H Lens positions:

o 4.5m @ 13.4% ZnEq from 90.5m (5.2% Zn, 0.2% Cu, 3.4% Pb, 2.5g/t Au, 89g/t Ag) WNDD0100: G2 South o 4.4m @ 7.1% ZnEq from 97.1m (3.9% Zn, 0.2% Cu, 2.1% Pb, 0.4g/t Au, 25g/t Ag) WNDD0100: G2 South o 2.2m @ 14.9% ZnEq from 84.3m (7.7%Zn, 0.1% Cu, 3.0% Pb, 0.8g/t Au, 125g/t Ag) WNDD0101: G2 Lens o 2.5m @ 45.3% ZnEq from 92.6m (7.1% Cu, 4.5g/t Au, 626g/t Ag) WNDD0103: H Lens

The results from the G2 South position are encouraging and represent an extension of the G2 Lens 100m to the south, consistent with down hole electromagnetic modelling (EM) from surveying an existing drill hole. WNDD0100 was drilled into the centre of the EM modelled plate, and a shallow, modest tonnage is expected to be developed in this area. The mineralisation in WNDD0100 is similar to the other G2 Lens mineralisation, being high-grade sphalerite/galena stringer sulphides in a volcanic mudstone host.

The result from WNDD0103 is also very encouraging, being a very high grade copper/gold/silver intercept at the south end of H Lens (see Figure 1). This zone remains partially open to the south and confirms the high grade nature of this shallow mineralisation.

Coming at the end of the Phase II program these results continue to demonstrate the potential of the multiple ore horizons at Woodlawn, and the ability to expand the existing resources within relatively shallow depths.

Feasibility Study Timetable

The Company continues to make excellent progress with the Woodlawn Feasibility Study following the completion of the Phase II drilling program. Resource modelling is now well advanced and additional components to this detailed study including metallurgical testwork, mining and geotechnical engineering are all proceeding and the study remains on target for completion in the second quarter of 2016.

Figure 1: Lisa, G, H, E Lenses Long-Section looking east with recent intercepts shown.

About Heron Resources Limited:

Heron is engaged in the exploration and development of base and precious metal deposits in Australia. Heron's primary development project is the high grade Woodlawn Zinc-Copper Project located 250km southwest of Sydney, New South Wales.

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

Mr Wayne Taylor, Mr Jon Snowball

Managing Director and Chief Executive Officer: FTI Consulting

Tel: +61 8 6500 9200 Tel: +61 2 8298 6100 or +61 477 946 068

Email: [email protected] Email: [email protected]

Canada:

Tel: +1 905 727 8688 (Toronto)

Table 1: Drill hole details for Diamond drill holes completed as part of the Phase II drill campaign. Note only recent holes listed. Earlier Phase II holes are listed in the Heron ASX/TSX release dated the 7th October 2015.

Notes: WMG = Woodlawn Mine Grid

Table 2: Details of massive sulphide intercepts and reported grades from the Phase II drill campaign.