ASX announcement

8 JUNE 2016

Argonaut Extends Crescent Lake Lithium Holding

Argonaut Resources NL (ASX: ARE) (Argonaut or the Company) is pleased to announce it has increased its lithium holding by securing the remainder of the Crescent Lake/Seymour Lake pegmatite swarm in Ontario, Canada.

Highlights

• Argonaut has been granted a 100% interest in 22 Mining Claims in the Crescent Lake area.

• The claims are within the Crescent Lake/Seymour Lake spodumene pegmatite swarm.

• The claims cover one known spodumene pegmatite occurrence (Figure 1) plus large, under-explored areas of prospective terrain.

• The new claims cover an area of 54km2, increasing Argonaut's total holding in the project area to 80km2.

• The tenement holding is east of Ardiden Limited's (ASX: ADV) Seymour Lake lithium project and contiguous with the Falcon Lake and Zigzag claims over which Argonaut holds an option to purchase.

• Drilling permits have now been granted and drilling will commence in approximately one week.

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 Extensions

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

On 11 March 2016, Argonaut announced the acquisition of lithium deposits known as Falcon Lake and Zigzag, collectively the Crescent Lake Lithium Project. Pegmatites at Crescent Lake are spodumene bearing. In the subsequent weeks, Argonaut pegged additional claims between Falcon Lake and Zigzag, and to the NW of Falcon Lake (Figure 1). These claims are now registered and are 100% held by Argonaut's Canadian operating subsidiary.

The new claims cover the under-explored area between clusters of known spodumene bearing pegmatites. The Falcon Lake Far West spodumene pegmatite occurrence is located within the new claims (Figure 1).

The new claims cover an area of 54km2 and Argonaut now holds or has an option to acquire approximately 80km2 of the Crescent Lake/Seymour Lake pegmatite swarm.

Crescent Lake Drilling

In May 2016, Argonaut geologists commenced preparatory exploration works at the Crescent Lake Project in anticipation of statutory drilling approvals. On 6 June 2016, Argonaut announced the grant of Exploration Permits valid for three years. Mobilisation of drilling and earthmoving equipment to the Crescent Lake Lithium Project will occur in approximately one week.

The initial program will be comprised of approximately seven drill holes. The Company anticipates analytical results will be available approximately six week after the completion of each drill hole.

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/ Seymour Lake lithium exploration claims and lithium pegmatite occurrences over geology.

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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 Lake

CANADA

Greenbush Lake Project

James Bay

James Bay

Opinaca

Rose

Whabouchi

Tanco

Berens

East Pashkokogan

Uchi ER

BR

Crescent Lake Project

Seymour Lake

Moblan

Separation WR

Lake Nipigon

QueticoAbitibi

Grenville Province

Rapids Georgia Lake

Wabigoon

Lacorne/Quebec Lithium

Wawa

Thunder Bay

Lake Superior

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.

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Background

Argonaut is focused on fast-tracking development of its lithium assets. The Company now has rights to two Canadian projects and one South Australian lithium exploration target.

Argonaut expects to announce a further acquisition in the coming weeks as well as the commencement of drilling at its flagship Crescent Lake project in Ontario, Canada.

WESTERN

NORTHERN TERRITORY

QUEENSLAND

CANADA

Greenbush Lake

ONTARIO

Crescent Lake

AUSTRALIA

Lake Blanche

SOUTH AUSTRALIA

NEW SOUTH WALES

VICTORIA

UNITED STATES of AMERICA

TASMANIA

Figure 3 Argonaut lithium project locations.

Crescent Lake Project, Canada (Argonaut acquiring 100%)

On 4 March 2016, Argonaut released details of the acquisition of the Falcon Lake and Zigzag blocks within the Crescent Lake Lithium Project area in Ontario, Canada (Figure 2).

Highlights of previous drilling at the Crescent Lake Lithium Project, released to the ASX on 11 March 2016, include:

Falcon Lake Area

• 8.1m at 1.48% Li2O from 2.7m in drill hole W-3

• 10.5m at 1.15% Li2O from 34.5m in drill hole W-9

• 14m at 0.99% Li2O from 69.3m in drill hole CO-10-001

• 7m at 1.07% Li2O from 55.3m in drill hole CO-10-002

• 11m at 1.10% Li2O from 39.4m in drill hole CO-10-003

  Zigzag Area

• 6.1m at 1.08% Li2O from 12.4m in drill hole CO-10-007

Other Crescent Lake Lithium Project highlights include:

• Adjacent 23m and 10m thick pegmatites at Falcon Lake West deposit (Figure 4).

• Three to four stacked spodumene bearing pegmatites over 670m at the Tebish occurrence.

• The deposits are hard rock pegmatite deposits containing spodumene mineralisation.

• The areas surrounding these known deposits are yet to be systematically explored.

• There is excellent potential to define deposit extensions and additional deposits.

• The deposits are well located, close to the North American rail network and a major port.

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