Macphersons Resources : Boorara Gold Project

BORC 118 drill intercept of 66 metres grading 1.89 g/t

Trial mining on schedule to commence hauling ore on 26 September 2016 for processing

Figure 1: Boorara Trial Pit Operation

Boorara Gold Project

MacPhersons Resources Limited (ASX: MRP) is pleased to announce that drilling of three reverse Circulation (RC) holes for 177m within the Southern Stockworks - Crown Jewel Deposit at Boorara for metallurgical testwork samples adjacent to the trial open pit reported the best intercept (BORC 118) returned at Boorara of 66 metres grading 1.89 grams per tonne (g/t) gold. The intersection was still in ore grade mineralisation at the end of hole with the last metre grading 1.1 g/t Au. The final 23 metres grading 1.66 g/t Au contained primary hard sulphide gold ores.

BORC118 was orientated to drill down plunge of the main ore shoot to maximise the sample available for metallurgical testwork while the other holes were drilled more perpendicular to the Crown Jewel lodes due to limited accessibility and the shallower dip of the mineralisation.

Metallurgical carbon in pulp (CIP) testwork undertaken on samples from within the BORC 118 interval resulted in gold recovery of 96%. Overall, metallurgical testwork undertaken to date on the Boorara Gold Project ranges from 93% to 97% for oxide, transitional and fresh ore types.

Based on the 4 x 4 metre close spaced RC drilling to a depth of 20 metres, MRP estimate output of 1,700- 1,800 ounces of gold from the trial pit. The pit is mined on 2.5 metre flitches and will be completed by the end of September. MRP anticipate starting haulage of approximately 30,000 tonnes of gold ore to the FMR Greenfields processing plant in Coolgardie on 26 September 2016.

The Board has approved a new 4,100 metre RC drill program at Boorara to commence this month in order to:

drill the northern boundary of the current Northern open pit design where the geology is not as well understood. The additional drill holes are designed to confirm and extend the current geological/mineralisation interpretation within the top 75 metres; and

intersect the area from 100-140 metres below the surface in both the Southern and Northern lodes where there is currently limited historical drilling with significant mineralised intercepts defining Inferred Resource material.

Figure 2: Boorara Gold Project RC collar location plan

Figure 3: Boorara Gold Project 6030N Cross Section.