Exploration Office Unit 2 81 Harrison Road Dudley Park

SA 5008

ABN: 96 110 336 733

Tel: +61 8 8245 4900

Fax: +61 8 8245 4999

www.monaxmining.com.au

For Immediate Release

Thursday 13 November, 2014

ASX RELEASE

Potential Kimberlite Discovery in Northern South Australia

HIGHLIGHTS

• Potential kimberlite discovered at Margaret Dam project, located in northern

South Australia

• Detailed ground magnetic and gravity surveys completed

• Early 2015 drilling planned to confirm whether target is a diamondiferous kimberlite

Monax Mining Limited ("Monax") (ASX:MOX) is pleased to announce the discovery of a potential kimberlite on its Margaret Dam Exploration Licence (EL) 5347, located south of William Creek in northern South Australia (see Figure 1).

Monax originally selected EL 5347 to search for iron-oxide copper-gold (IOCG) targets within the basement of the Gawler Craton. A review of the available aeromagnetic data showed two small circular features located within the southern part of the licence area which is considered to be consistent with that of a kimberlite intrusion (Figure 2). Initial modelling showed this feature was relatively shallow and not likely to represent an IOCG target.

Monax recently completed detailed ground magnetic(1) and gravity surveys over the circular magnetic features to check the validity of the data, and assist with modelling the dimensions and depth of the target. The new ground magnetic data reveals a discrete elongate magnetic dipole with a SW-NE trend and a smaller magnetic anomaly located to the SW (Figure 3). The gravity data shows a subtle gravity response associated with the magnetic feature (Figure 4).

Geophysical Modelling

Geophysical modelling outlined a magnetic body at a depth of approximately 80m. The dimensions of an elliptical body 250m long 45m wide with a tapering root to 400m depth was outlined. The main feature (shown in blue on Figure 5) strikes 230o/50o (SW-NE) with a near vertical dip (see Figure 5). (Magnetic susceptibility χ = 0.015 SI units).

A small secondary anomaly (red) is located in the SW of the survey area at a depth of 75m and is characterised by an elliptical body geometry and is approximately 100m long by 30m wide. Strike direction is 300o/120o (WNW-ESE) - (see Figures 5 & 6). The gravity model suggests that the magnetic body has subtle density contrasts.

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Background

Macrodiamonds and kimberlitic indicator minerals have been found within close proximity to Monax's Margaret Dam project area. In 1894, a single ~1 carat (ct) diamond was found in alluvial gold workings at Peake Creek, north of William Creek (see Figure 7) (Morris, 2003).

In the early 1980's, eight microdiamonds were reported from loam and stream sediment samples from Edwards Creek and two at Reedy Lagoon (Figure 7), along with numerous kimberlitic indicator minerals including picroilmenite, pyrope garnet and chrome spinel (Morris, 2003).

The Margaret Dam area has been explored for diamonds by several companies, most recently by Flinders Diamonds Ltd ("Flinders") on EL 2758. Flinders considered this area prospective for kimberlites because:

• Previously discovered indicator minerals from the area are fresh, suggesting the primary source rocks are in the general region;

• The interpreted palaeocurrent direction indicates fluviatile flow towards the north; and

• Exploration area (now EL 5347) falls on the G2 lineament (refer to Figure 7) (Flinders

Diamonds Ltd, 2007).

Flinders drilled 65 holes totalling 1690m with 29 samples collected for testing for indicator minerals. Holes which did not intersect the target Algebuckina Sandstone or intersected silicified rock were not sampled or tested (Flinders Diamonds Ltd, 2007). Figure 8 shows the location of drill holes within the vicinity of EL 5347 and shows the holes which reported indicator minerals.

Monax believes that past failures to locate kimberlite bodies on EL 5347 is due to the previous explorers focus on diamond indicator studies and a lack of attention to the available geophysics. The magnetic anomaly is located in an area of positive diamond indicators and may represent the source of the diamond indicator minerals discovered by previous exploration.

Forward Program

Monax is assessing and integrating the newly acquired geophysics with open file diamond exploration data and , at this stage is planning to undertake a shallow drilling program in early

2015 to confirm whether the target is a diamondiferous kimberlite.

Gary Ferris Managing Director, Monax Mining

Ph: (08) 8245 4900

Email: [email protected]

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr G M Ferris, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Ferris is employed full time by the Company as Managing Director and, has a minimum of five years relevant experience in the style of mineralisation and type of deposit under consideration and qualifies as a Competent Person as defined in the 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" Mr Ferris consents to the inclusion of the information in this report in the form and context in which it appears.

(1) Ground magnetic survey was undertaken by two TAFE students as part of a 2nd year project for their Diploma of Geoscience. Gravity data was collected by Daishsat and provided to the students for their project.

References

Flinders Diamonds Ltd, 2007. Open file Envelope 9851. Government of South Australia. Department for

Manufacturing, Innovation, Trade, Resources and Energy.

Morris, B., 2003. Review of diamond potential in South Australia. MESA Journal 29, p14-17.

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Figure 1. Monax tenement location pian highlighting EL 5347.

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Figure 2. RTP image derived from SAEI C4 airborne magnetic survey. (NB

small magnetic anomalies outlined in yellow circle in the SW corner - no cultural features are obvious in available satellite imagery or from site survey).

Figure 3. Reduced to Pole magnetic image with 10 nanoteslas contours

(derived from ground magnetic data).

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Figure 4. High pass gravity image with magnetic contours.

Figure 5. Magnetic model showing size and calculated depth to potential main kimberlite body (shown in blue on the left side image).

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Figure 6. 3D model of two potential kimberlites on EL5347.

Figure 7. Diamond occurrences and tectonic setting in South Australia (source: MESA Journal 29, 2003). Approximate location of EL 5347 shown by black dot south of William Creek.

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Figure 8. Location of drilling for indicator minerals within the area surrounding EL 5347.

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JORC Code, 2012 Edition - Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria JORC Code explanation Commentary

Sampling techniques

Drilling techniques

Drill sample recovery

• Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

• Aspects of the determination of mineralisation that are Material to the

Public Report.

• In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

• Method of recording and assessing core and chip sample recoveries and results assessed.

• Measures taken to maximise sample recovery and ensure representative nature of the samples.

• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

• Not Applicable for ground magnetic and gravity surveys.

• Not Applicable for ground magnetic and gravity surveys.

• Not Applicable for ground magnetic and gravity surveys.

.

Logging • Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

• Not Applicable for ground magnetic and gravity surveys.

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Criteria JORC Code explanation Commentary

Resource and Ore Reserve estimation procedure(s) and classifications applied.

• Whether sample compositing has been applied.

Readings were taken every 10m with Easting and Northing X-Y observations within the +/- 5m tolerances laid out in the project proposal, this was achieved using a Garmin GPSMap 60. A total of three east-west lines at 6765100N, 676500N and 6768100N points were carried to fulfill the 2 % station repeat requirement.

• Not applicable - data not used for resource estimation.

Orientation of data in relation to geological structure

• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

• If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

• Not Applicable for ground magnetic and gravity surveys.

• Not Applicable for ground magnetic and gravity surveys.

Sample security

Audits or reviews

• The measures taken to ensure sample security. • Not Applicable for ground magnetic and gravity surveys.

• The results of any audits or reviews of sampling techniques and data. • Not Applicable for ground magnetic and gravity surveys.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

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Criteria JORC Code explanation Commentary

Information for all Material drill holes: .

o easting and northing of the drill hole collar

o elevation or RL (Reduced Level - elevation above sea level in

metres) of the drill hole collar

o dip and azimuth of the hole

o down hole length and interception depth

o hole length.

• If the exclusion of this information is justified on the basis that the

information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.

Data aggregation methods

Relationship between mineralisation widths and intercept lengths

• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

• The assumptions used for any reporting of metal equivalent values should be clearly stated.

• These relationships are particularly important in the reporting of

Exploration Results.

• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

• Not Applicable for ground magnetic and gravity surveys.

• Not Applicable for ground magnetic and gravity surveys.

.

Diagrams • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

• Map showing location of survey area included in this report.

Balanced reporting

Other substantive exploration data

• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential

• Not Applicable for ground magnetic and gravity surveys.

• Data from previous exploration has been previously released..

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