De Grey Mining Ltd

A.B.N. 65 094 206 292

21 March 2016

ASX/MEDIA RELEASE

Tantalum and Lithium Potential at Turner River

Highlights

• Tantalum and Lithium potential highlighted at Turner River

• Sampling programmes planned for April

• Clarification of tenement ownership

De Grey Mining Ltd (ASX: DEG, "De Grey", "Company") wishes to update shareholders on progress of the on-going technical review of the Turner River Project (TRP), located approximately 50km south of Port Hedland in the Pilbara, Western Australia.

The review has highlighted the potential for pegmatite related Tantalum and Lithium mineralisation to occur on De Grey's project area (Figure 1), with particular emphasis on the eastern most tenements, namely E45/2533 and E45/2364 (Figure 2). These two tenements are located immediately along strike of the previously mined Tabba Tabba Tantalum Mine to the north east.

De Grey Chairman Simon Lill commented, "The Turner River Project now has a further dimension to complement the existing gold and base metals resources and prospects. The opportunity to commence an assessment of the Tantalum and Lithium potential is currently being integrated into our upcoming exploration activities and planned April 2016 site visit. We are fortunate to have a large tenement footprint in what is considered a globally significant region for the production of lithium".

Registered Office: Level 1, Suite 5, The Business Centre, 55 Salvado Road, Subiaco, WA 6008 ▪ PO Box 131, Subiaco, WA 6904

Tel: +61 8 93814108 ▪ Fax: +61 8 9381 6761 ▪ Email: [email protected] ▪ Website: www.degreymining.com.au

Figure 1 Turner River Project location

Tenure

On the 17 March 2016, Sayona Mining Limited (ASX: SYA) made an announcement titled "Strategic Entry into the Western Australian Lithium Market" where it states "Sayona has entered into an agreement over E45/2364 with AttGold Pty Ltd (Attgold)."

De Grey would like to clarify that it is the owner of E45/2364.

Attgold retained the pegmatite related rights on this tenement only. The pegmatite rights give Attgold rights to explore on the tenement for pegmatite minerals, which in turn are defined as "tin, tantalum, niobium, lithium, cesium and non-gold bearing or base metal bearing aggregate."

This is as a result of the previous acquisition of this tenement by De Grey from Attgold, whereby Attgold retained the pegmatite rights, subject to various clauses of priority, access and normal statutory requirements.

Hence De Grey holds all other mineral rights in this tenement, most specifically gold and base metals which has been the focus of De Grey's past activities.

De Grey also wishes to clarify that it owns all mineral rights within the adjacent E45/2533 including all pegmatite related rights (Figure 2).

In De Grey's opinion, the rights are not yet assigned as Attgold has not yet provided De Grey with a covenant from the assignee (Sayona) to be bound by the terms of the agreement. De Grey expects that this will be forthcoming in the near future.

Figure 2: Tenement E45/2533 and E45/2364 showing pegmatite rights, Tabba Tabba Mine location, anomalous historical Ta stream sediment results and De Grey's Zn-Pb-Au-Ag resources and prospects

(Note Tantalum results greater than 200ppm are highlighted in text and the associated anomalous drainage is also highlighted where Red is >200ppm Ta and Pink > 400ppm Ta)

Lithium and Tantalum Potential

The Tabba Tabba Mine, located immediately adjacent to E45/2364, is currently being re- developed by Pilbara Minerals Limited and is a tantalum deposit hosted in fractionated pegmatite rocks. The potential for these prospective pegmatites to occur along strike to the south east into the Company's two tenements is considered high.

Regionally, the pegmatites of the Northern Pilbara are variable, highly fractionated and host significant tantalum and/or lithium resources (eg Tabba Tabba and Pilgangoora) and are also considered highly prospective for Niobium, Tin and other Rare Earth Elements (REE).

Review of past third party exploration results over the project area has highlighted a number of anomalous stream sediment samples completed by CSR Limited during the early 1980's. This sampling targeted stream sediment trap sites which were assessed to be the best locations to collect potential heavy minerals associated with pegmatite mineralisation.

The anomalous Sayona sample sites and anomalous CSR drainage samples within E45/2533 and E45/2364 are shown in Figure 2.

Other indicator elements in the sampling results, including Niobium, are considered elevated. Lithium results are considered generally of a low order nature, however the method of sampling the stream sediment trap sites is not expected to recover Lithium efficiently.

The assays depicted in Figure 2 are of a panned concentrate so the values for each sample are inherently concentrated by the sampling method and therefore care should be taken in evaluating the actual assays levels quoted. However, the sampling results from this programme clearly shows a central corridor of anomalous streams that occur to the north east of the company's Orchard Tank Zn-Pb-Au-Ag deposit and provides an immediate focus for further work to assess in more detail.

Planned work programme

De Grey is currently preparing for a programme of works at Turner River and this will include mapping to locate any outcropping pegmatites, rock chip sampling and further stream sediment sampling throughout E45/2533. This programme is planned to commence in early April.

The Company will provide further updates as results of this planned programme and the ongoing review come to hand.

For further information:

Simon Lill (Chairman) or Craig Nelmes (Company Secretary/CFO)

De Grey Mining Ltd Phone +61 9381 4108

Davide Bosio

Director

+61 8 9263 5210

The information in this report that relates to exploration results is based on, and fairly represents information and supporting documentation prepared by Mr Andrew Beckwith, a Competent Person who is a member of The Australasian Institute of Mining and Metallurgy. Mr Beckwith is a consultant engaged by De Grey Mining Limited. Mr Beckwith has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 JORC Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resource and Ore Reserves". Mr Beckwith consents to the inclusion in this report of the matters based on information in the form and context in which it appears.