De Grey Mining Ltd

ASX Announcement

12 July 2016

RC drilling program completed at the Turner River Project

ASX Code DEG ABN 65 094 206 292

COMPANY DIRECTORS

Simon Lill

Executive Chairman

Davide Bosio

Non-executive Director

Steve Morris

Non-executive Director

Craig Nelmes

Company Secretary/CFO

CONTACT DETAILS

Principal & Registered Office Level 2, Suite 9

389 Oxford Street

Mt Hawthorn WA 6016

PO Box 281

Mt Hawthorn WA 6016 www.degreymining.com.au [email protected]

T +61 8 9381 4108

F +61 8 9381 6761

Highlights

• RC drilling programs completed at Discovery and Tabba Tabba prospects

• Sulphide mineralisation including sphalerite and galena noted in drill holes at Discovery and Tabba Tabba

• Assay results expected over the coming few weeks

De Grey Mining Ltd (ASX: DEG, "De Grey", "Company") is pleased to advise that the RC drilling programs at the Discovery (Au-Ag-Zn-Pb) and the Tabba Tabba (Au-Ag-Zn- Pb-Cu) prospects have been completed.

At Discovery, a total of 24 holes were completed for an advance of 1646m. Drilling has been completed over a strike length of 350m to better define the oxide mineralisation where previous limited drilling had intersected encouraging shallow mineralisation including previous intercepts of:

 28m @ 1.60g/t Au, 49g/t Ag, 1.9%Zn, 0.94%Pb from 3m (including 11m @ 3.17g/t Au, 94.7g/t Ag from 3m); and

 24m @ 2.15g/t Au, 250g/t Ag, 5.4% Zn, 2.56% from 18m (including 10m @ 3.3g/t Au, 386.2g/t Ag from 20m.)

At Tabba Tabba, drilling includes infill drilling of the known Au-Ag-Zn-Pb-Cu mineralisation associated with a priority IP anomaly and an along strike IP target approximately 500m to the south west. A total of 12 holes were completed for an advance of 772m.

Fresh sulphide mineralisation including sphalerite (a zinc mineral) and galena (a lead mineral) has been noted in at least half the drill holes at Discovery and a limited number of holes at Tabba Tabba.

Initial 4m composite samples are in the process of being submitted to the laboratory with assay results expected over the next few weeks.

Turner River - Unlocking Shareholder Value

Figure 1 Discovery RC drill chips with fresh sulphide rich mineralisation including sphalerite (Zn) and galena (Pb)

For further information:

Simon Lill (Executive Chairman) or Davide Bosio (Director)

De Grey Mining Ltd Phone +61 8 9381 4108

[email protected]

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 to 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 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 his information in the form and context in which it appears.

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