ASX Announcement

20 March 2015

Maximus commences airborne magnetic survey on Gawler Craton copper-gold project in SA

Summary

• Detailed airborne magnetic survey commenced on Welbourn Hill copper gold project

• Copper gold bearing hydrothermal breccias known to exist from previous exploration

• Survey consists of 1,200 line kilometres over discreet circular magnetic anomaly

• Tenement is held 100% by Maximus

Maximus Resources Limited (ASX: "MXR") is pleased to announce the commencement of a detailed airborne magnetic survey at the Company's wholly-owned Welbourn Hill project in South Australia.

The project is located within the under-explored Northern Gawler Craton province, 1,100 km north of Adelaide, on EL5248. This is Maximus' second South Australian copper-gold project to be explored this year after recently announcing the planned drilling at the Oliffes Dam Iron Oxide Copper Gold (IOCG) prospect, in cooperation with Monax Alliance, located on the Gawler Craton region within the Woomera Prohibited Area (WPA).

Drilling in 2008 by a previous explorer over the peak of the magnetic anomaly at Welbourn Hill, intersected wide zones of hydrothermally brecciated, and intensely sericite-chlorite altered Proterozoic-aged metamorphosed sandstones, with visible copper mineralisation. Assay results reported a 19m zone of mineralised core from 639m, within the breccia zones.

The hydrothermal breccias discovered to date appear to be located within the roof zone/cupola of a deeper seated mafic intrusion. This intrusion is considered to provide the fracture system itself in addition to providing the source of copper and gold mineralisation.

The new airborne magnetic survey is designed to reveal both the internal and external structure of the intrusion, and allow for further modelling, in association with existing detailed gravity and Induced Polarisation data.

The three day airborne magnetic survey is being completed using a fixed wing aircraft with processed data delivered to Maximus about a week later.

Maximus will combine the new and historic data over what it says is a highly prospective target, to determine the next exploration phase for Welbourn Hill.

Figure 1. Maximus' Gawler Craton copper gold projects on a State gravity image showing major IOCG deposits

For further information contact

Kevin Malaxos on 08 7324 3172 Duncan Gordon, Adelaide Equity Partners

[email protected] on 08 8232 8800 or 0404 006 444 [email protected]

Further information relating to Maximus Resources Limited and its diversified exploration projects will be found
on Maximus' website: www.maximusresources.com

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Kevin Malaxos who is a fulltime employee of Maximus Resources Ltd, who is a Member of the Australasian Institute of Mining and Metallurgy, and who has sufficient experience relevant to the style of mineralisation, the type of deposit under consideratio n, and the activities being undertaking, to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration results, Mineral Resources and Ore Reserves (the JORC Code). This report is issued in the form and context in whi ch it appears with the written consent of the Competent Person.

Background

Comalco Aluminum Ltd (1981) first identified the circular magnetic features at Welbourn Hill from a regional airborne magnetic survey. This was followed up with gravity traverses over the magnetic feature, which indicated a residual gravity anomaly immediately south of the magnetic high. The survey returned a 9 Mgal residual gravity anomaly, at a depth of 1,000m, with the main magnetic source commencing at 1,800m depth. Comalco drew comparisons with the Olympic Dam deposit, where the gravity and magnetic bodies model at different vertical depth, the magnetic body being deeper. Comalco was not convinced that IOCG deposits could develop in the region, and did not drill the target.
Newcrest Mining Ltd (1991) followed on from Comalco's work with further gravity surveys, and wide spaced Inducted Polarisation (IP) surveys. Newmont concluded that the geophysical signature of Welbourn Hill had many similarities to that of Olympic Dam, and were sufficiently encouraged to complete further work. Newcrest completed a three hole drilling program, to a maximum depth of 550m, which the Company considered to be
the economic limit for an IOCG deposit. Two of the three holes planned failed to achieve target depth, due to unfavourable drilling conditions, while the deepest hole penetrated to just 507m, before it was abandoned, still in cover rocks. Newcrest planned to return and drill the target upon review of more suitable drilling techniques, but never returned.
Caldera Resources (2003) completed a single gravity line over the target and concluded that a gravity anomaly of 8 Mgal is associated with the magnetic anomaly. Depth to the top of the gravity anomaly was calculated at
600m.
Eromanga Uranium Limited (2009) (now Tychean Resources) reviewed the Newcrest data, and drilled two holes to basement. The second hole, EWHDDH02, drilled over the magnetic anomaly, penetrated the cover rocks and intersected basement from 450m, drilling a sequence of intensely altered metamorphosed sandstone, with several hydrothermal breccia zones. These breccia zones contained disseminated chalcopyrite and pyrite, and thin veins of chalcopyrite. Anomalous gold was also detected in assays.
In 2012, Monax Alliance entered into a Non-Binding Agreement with ERO Mining (now Tychean Resources) to explore the Welbourn Hill Prospect for IOCG deposits. Monax Alliance considered that the drilling by ERO Mining had not adequately explained the significant gravity anomaly. In referring to the drill hole intersection of
19m @ 0.1% copper from 639m depth, Monax Alliance interpreted this intersection and related alteration as
possibly being located peripheral to an iron oxide copper gold style deposit.
Monax Alliance proposed to conduct a 900 station gravity survey and detailed heli-bourne magnetic survey. The gravity survey was completed late in 2012, but not the heli-mag survey. Monax Alliance concluded that the detailed gravity survey did not produce a suitable target suggestive of a large iron-oxide copper-gold body. (Monax Mining Limited ASX release dated 17/10/2012.)
In 2013, Maximus recognised the potential of the area to host copper gold mineralisation within the breccia systems developed above an intruding mafic body (as intersected in EWHDDH02). Reinvestigation of the core confirmed that several breccia zones were present in the core, and all would be expected to propagate to the basement surface, at 450m.
Maximus acquired the tenure from ERO Mining in 2013, including all data sets and a Heritage Survey Report.