5 March 2015

Pioneer Commences Drilling at Fairwater Nickel Project

in Albany Fraser Orogen

Pioneer Resources Limited ("Company" or "Pioneer") (ASX: PIO) is pleased to announce that it has commenced drilling at its Fairwater Nickel Project in the Albany Fraser Orogen in south eastern Western Australia.

The drill program will consist of up to 99 aircore holes at the FWNi003 nickel anomaly, within the Fairwater project. The FWNi003 target area is sand-covered, and the drilling will enable the Company to identify geological units and appraise subsurface geochemistry.

Pioneer is exploring for mafic-intrusion hosted nickel sulphide deposits at the Fairwater Project, similar to the major, high grade Nova and Bollinger nickel discoveries of Sirius Resources (ASX: SIR) in the region.

The drill program is expected to take three weeks and final results will be released as soon as they are available, which is expected to be in April. Pioneer holds a 75% interest in the Fairwater Nickel Project.

A successful drill program will:

• Discover the presence of mafic and/or differentiated ultramafic rocks, being the potential geological host for mafic intrusion-related nickel deposits;

• Return anomalous, coincident, nickel, copper and PGM geochemical responses within the regolith drill samples. These are considered proximity indicators for magmatic sulphide mineralization;

• Detect direct evidence for the presence at depth of magmatic sulphides, including pyrrhotite, pentlandite and chalcopyrite. Within the regolith it is likely that sulphide minerals will have been oxidized, however the geochemical signature of these minerals and textural evidence of their existence would be a very promising result.

The FWNi003 target features a number of favourable exploration indicators to the point - being:

• Aeromagnetic data which shows a cluster of magnetic units with a response consistent with mafic or ultramafic rock units, occurring over a strike length of 2 kilometres;

• Elevated nickel and chromium soil geochemistry results which coincide with the magnetic units. These are strong indicators that mafic or ultramafic rocks occur beneath the sand cover;

• Coincident nickel-copper and platinum group metal anomalism, which together are considered indicators for the presence of magmatic sulphides within the mafic complex; and

• Proterozoic aged stratigraphy. Proterozoic-aged rocks host the Nova-Bollinger discovery.

Mafic-intrusions host a number of major nickel deposits. In Australia examples include the Nova-Bollinger, Nebo-Babel, Savanah and Radio Hill deposits, and overseas, Norilsk and Voisey's Bay.

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- ENDS -

Managing Director

Pioneer Resources Limited

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For further information please contact:

David Crook James Moses

Managing Director Media and Investor Relations

Pioneer Resources Limited Mandate Corporate

T: +61 8 9322 6974 M: +61 420 991 574

E: [email protected] E: [email protected]

Competent Person

The information in this report that relates to Exploration Results is based on information supplied to and compiled by Mr David Crook. Mr Crook is a full time employee of Pioneer Resources Limited and a member of The Australasian Institute of Mining and Metallurgy (member 105893) and the Australian Institute of Geoscientists (member 6034). Mr Crook has sufficient experience which is relevant to the styles of mineralisation and types of deposit under consideration and to the activities undertaken to qualify as a Competent Person as defined in the
2004 and 2012 Editions of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Additional information in respect of soil geochemical data and interpretations was provided by Dr Nigel Brand, Information in respect of geophysical data and interpretations was provided by Mr Ben Jones, and information in respect of geology was supplied by Mr Don Huntly. Mr Crook, Dr Brand, Mr Huntly and Mr Jones consent to the inclusion in the report of the matters based on their information in the form and context in which it appears.

Caution Regarding Forward Looking Information

This document may contain forward looking statements concerning the projects owned by the Company. Statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates based on specific assumptions.
Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes.
Forward looking statements in this document are based on the Company's beliefs, opinions and estimates of the Company as of the dates the forward looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.
There can be no assurance that the Company's plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that the Company will be able to confirm the presence of additional mineral deposits, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of the Company's mineral properties. Circumstances or management's estimates or opinions could change. The reader is cautioned not to place undue reliance on forward-looking statements.

Glossary:

"Aircore" is a blade drilling technique which returns relatively uncontaminated samples through a central annulus inside the drill pipes. It is used to test the regolith (near surface unconsolidated and weathered rock) as an alternative to RAB drilling when conditions are wet, sandy or holes need to go deeper than practical by RAB.
"Gossan" means intensely oxidized, weathered or decomposed rock, usually the upper and exposed part of an ore deposit or mineral vein. In the classic gossan all that remains is iron oxides and quartz often in the form of boxworks, retaining the shape of the dissolved ore minerals.
"Regolith" means the layer of loose, heterogeneous material covering solid rock. It includes dust, soil, broken rock, and other related materials. In Western Australia it most commonly refers to the almost ubiquitous layer of weathered and decomposed rock overlying fresh rock.

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