7 December 2015

SIGNIFICANT EXTENSION OF MINERALISATION TO OVER 11 KM AT BENNET WELL

HIGHLIGHTS

• Current drilling has significantly extended the strike length of mineralisation in the Bennet Well Channel demonstrating its extension for at least 7 km

  
  

• The Bennet Well channel remains open to southeast extending into Cauldron's Exploration Licence Application E08/2774 (ASX Announcement 13 October 2015)

  
  

• Successes of many recent drilling programs confirm Cauldron's belief that Bennet Well is located in a mineralised uranium province of significant global proportion

  
  

• Mud rotary drilling highlights include:

   BW0099: 4.45 m @ 518 ppm eU3O8 from 76.50 m

   BW0100: 0.65 m @ 312 ppm eU3O8 from 83.70 m

   BW0103: 1.35 m @ 516 ppm eU3O8 from 72.30 m

   BW0104: 0.80 m @ 353 ppm eU3O8 from 75.85 m

   BW0106: 2.30 m @ 461 ppm eU3O8 from 79.85 m

   BW0107: 1.25 m @ 248 ppm eU3O8 from 34.40 m

   BW0108: 2.35 m @ 271 ppm eU3O8 from 38.20 m

   BW0113: 2.50 m @ 426 ppm eU3O8 from 66.60 m

   BW0114: 0.35 m @ 324 ppm eU3O8 from 38.20 m

   BW0116: 2.55 m @ 301 ppm eU3O8 from 67.75 m

   BW0118: 0.75 m @ 217 ppm eU3O8 from 59.60 m

  
  

• The Bennet Well Channel is adjacent to the Bennet Well deposit and the total known length of mineralisation is at least 11 km

  
  

• Cauldron is currently drilling at Bennet Well Channel and intends to complete a Mineral Resource over the combined mineralisation of Bennet Well and Bennet Well Channel

  
  

• There may be a resultant increase in the total Mineral Resource (JORC 2012) of the Bennet Well uranium deposit (36.1 Mt at 270 ppm uranium oxide for a total contained oxide content of 21.5Mlb at 150 ppm cut-off), depending on results of the Mineral Resource estimate completed on the Bennet Well Channel

ABN 22 102 912 783

32 Harrogate Street, West Leederville WA 6007

PO Box 1385, West Leederville WA 6901

ASX code: CXU 268,053,444 shares

66,725,000 unlisted options

Board of Directors

Tony Sage Executive Chairman

Qiu Derong

Non-executive Director

Judy Li

Non-executive Director

Mark Gwynne

Non-executive Director

Catherine Grant Company Secretary

32 Harrogate Street, West Leederville WA 6007 Ph: (+618) 9380 9555 Fax: (+618) 9380 9666 PO Box 1385, West Leederville WA 6901 Web: www.cauldronenergy.com.au

Australian resources company, Cauldron Energy Limited (ASX: CXU) (Cauldron or the Company) is currently drill testing the recently identified Bennet Well Channel. Drilling completed in the channel, since last update, amounts to 25 mud rotary holes for 2411 m.

The Bennet Well Channel is a linear zone of mineralisation situated adjacent to the area used to define the Bennet Well Mineral Resource. The drilling completed by Cauldron, to date, has confirmed mineralisation extends southeast from the Bennet Well deposit to the tenement boundary for at least 7 km. The lateral continuity of mineralised palaeovalley is at least 11 km; extending from the northwest of Bennet Well Central to the southeast of currently delineated Bennet Well Channel. Mineralisation is still open to the southeast which provided the justification for exploration licence application ELA E08/2774 (ASX announcement 13 October 2015), refer to Figure 2.

Cauldron will commission Ravensgate Mining Industry Consultants, to complete an independent Mineral Resource estimate on the Bennet Well Channel. Depending on the results of the resource estimation, there may be an increase the total Mineral Resource (JORC 2012) of the Bennet Well uranium deposit (36.1 Mt at 270 ppm uranium oxide for a total contained oxide content of 21.5Mlb at 150 ppm cut-off). The lateral continuity of mineralisation in Bennet Well Channel is not fully understood and is a major task for study in the upcoming Mineral Resource estimate.

Figure 1: Bennet Well Channel - plan view of all drilling at Bennet Well Channel with a summary of mineralisation

The successes of all recent drilling programs confirm:

• the significant size potential of mineralisation at Bennet Well (Figure 2);

• proves the value of the exploration model developed by Cauldron, in predicting the occurrence of mineralisation.

Most significantly the exploration success confirms Cauldron's belief that this is a mineralised uranium province of significant global proportion.

Figure 2: The size potential of mineralisation of the Bennet Well Channel combined with Bennet Well

The Target Zone highlighted in Figure 2 demonstrates the excellent prospectivity of the Bennet Well deposit and the high potential for further increases in the size of the deposit. Even though the zone is close to Bennet Well, it was recognised from the excellent results from drilling the Bennett Well Channel.

Coupled with the high potential for further advances in exploration, there is favourable economic factors for extraction by in situ leach recovery processes because of the shallow depths to mineralisation at the southeastern end of the Bennet Well Channel.

For reference, Cauldron reported the area of the Bennet Well Channel in an Exploration Target estimate announced to ASX on 22 September 2015 and announced the first high grade intercept of the current drilling program on 16 November 2015.

Cauldron's Manager of Operations, Simon Youds said: 'The continued significant successes of Cauldron's drilling program re-enforces the Company's clear understanding of the mechanism of mineralisation. This fact is worth noting for investors as the team switch their attention to Cauldron's large landholding in the Carnarvon basin with its proven prospectivity for low cost ISR potential uranium production. Non-ISR mineralisation is unlikely to be economic and progressed to production in the current low cost uranium price environment.'

Figure 3: Project location