AUSTRALIA WRM.AX 0,06 AU$ -5,97%

ASX Release: 27 October 2016

Quarterly Activities Report - for the period ended 30 September 2016

ASX Code: WRM Issued Securities Shares: 551.6 million Options: 100.5million Cash on hand (30 Sept 2016) $0.43M Market Cap (as at 26 Oct 2016) $8.2M at $0.015 per share Directors & Management Brian Phillips Non-Executive Chairman Geoffrey Lowe Non-Executive Director Peter Lester Non-Executive Director Matthew Gill MD & CEO Rohan Worland Exploration Manager Shane Turner CFO & Company Secretary For further information contact: Matthew Gill or Shane Turner Phone: 03 5331 4644 [email protected] www.whiterockminerals.com.au

QUARTERLY ACTIVITY SUMMARY Mt Carrington Gold-Silver Development Project White Rock commissioned Mining Plus, a fully integrated global mining consultancy, to review the Mining section of the Mt Carrington gold - silver Project Scoping Study1. As a result of this initial Mining review, a key element of the upcoming Feasibility Study will be to investigate a range of parameters associated with selecting the optimal plant size and mining rate to maximise the economic returns from the Project. The optimisation work will consider: Plant throughputs between 800,000 to 1,200,000 tonnes per annum; Reduced mining and processing costs as a result of this larger tonnage throughput; An increased gold equivalent2 production profile up to and exceeding 40,000oz per annum initially, Whilst still retaining an initial 6 to 7 year mine life3. Importantly, the initial pit designs have highlighted that Feasibility Study optimisation work could result in: a 20% increase in in-pit Mineral Resource tonnes; a 20 to 40% increase in gold equivalent production per annum. Red Mountain Zinc-Silver-Lead-Gold Exploration Project, Alaska During the quarter, White Rock announced that a number of high priority VMS targets have been identified at the Red Mountain project. The high priority VMS targets are conductors located within zones of anomalous surface geochemistry that are indicative of proximal VMS mineralisation. To capitalise on the identification of these high priority VMS targets, White Rock acquired a further 114 mining claims in addition to the original 110 mining claims, more than doubling the Red Mountain project tenement strategic position, with the total area now controlled exceeding 143km². White Rock is now well positioned to advance exploration with the recent geochemical and geophysics studies providing a pipeline of targets for follow-up field assessment. The highest priority conductivity anomalies will be advanced through field programs of surface geochemical sampling and ground geophysics to define drill targets for the coming field season. Corporate During the quarter, White Rock appointed Mr Matthew Gill as Managing Director and Chief Executive Officer of the Company. Several financing agreements were initiated that will assist the Company to progress its feasibility study, permitting and construction work that would lead to first production of gold-silver at Mt Carrington.

Mt Carrington Gold-Silver Project Development

White Rock commissioned Mining Plus, a fully integrated global mining consultancy, to review the Mining section of the Mt Carrington gold - silver Project Scoping Study1. The review highlighted that there is considerable upside potential for expanding the in-pit Mineral Resource, which could then flow through to increased mine life and / or higher gold and silver production rates.

This potential uplift would further enhance the strong financial metrics of the Project, where the current Scoping Study1 results already deliver an outstanding investment proposition - a Project with a pre-tax NPV10 ofA$60.6M4 andan IRR of over 100%, with A$100M in free cash (undiscounted and before financing) delivered over its initial 7 year mine life.

As a result of this initial Mining review, a key element of the upcoming Feasibility Study will be to investigate a range of parameters associated with selecting the optimal plant size and mining rate to maximise the economic returns from the Project. The optimisation work will consider:

• Plant throughputs between 800,000 to 1,200,000 tonnes per annum;

• Reduced mining and processing costs as a result of this larger tonnage throughput;

• An increased gold equivalent2 production profile up to and exceeding 40,000oz per annum initially,

• Whilst still retaining an initial 6 to 7 year mine life3.

Importantly, the initial pit designs have highlighted that Feasibility Study optimisation work could result in:

• a 20% increase in in-pit Mineral Resource tonnes;

• a 20 to 40% increase in gold equivalent production per annum.

This initial work that Mining Plus conducted was a high-level review of the detailed mining section of the Scoping Study. Ongoing review, detailed mine planning and scheduling, and optimisation of the Project's in-pit Mineral Resource will form a key component of the Feasibility Study, scheduled to commence in December 2016.

This work has advanced the project through the initial design of the first five mine pits, the site layout, waste dumps and mine scheduling (Figures 1 & 2).

In addition, Mining Plus has highlighted a number of areas in the Scoping Study that will be focused on to realise improved economic outputs that could further enhance what is already a compelling financial investment case.

Additional areas of mine optimisation during the Feasibility Study will include:

• Pit sequencing and Pit production staging;

• Geotechnical slope design of fresh material;

• Re-optimisation of the pits;

• Reduced dilution;

• Fleet optimisation; and

• Waste haulage optimisation.

1 Refer to ASX release dated 20 October 2016 for all Scoping Study assumptions, production targets and forecast financial information. All material assumptions underpinning the production targets and forecast financial information derived from the production targets, contained in Annexure A of the ASX release dated 20 October 2016, continue to apply and have not materially changed.

2 Gold equivalent production target calculations are based on the gold production plus silver production estimated from the Scoping Study using the assumptions (gold price, silver price and metal recovery) provided in Annexure A of the 20 October 2016 ASX Release. The price assumptions are A$1,600/oz for gold and A$22/oz for silver.

3 The in-pit Mineral Resource is made up of a combination of Indicated (70%) and Inferred (30%) JORC Resource blocks. There is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further work will result in the determination of Indicated Mineral Resources or that the production target itself will be realised. The material assumptions and modifying factors considered to form reasonable grounds for stating the production targets and forecast financial information related to the Mt Carrington Project Scoping Study are contained in Annexure A of the 20 October ASX Release.

4 The Mt Carrington Scoping Study considers an NPV accuracy of +/-30%, ranging between $42M and A$78M.

Figure 1:

Aerial view towards the south-west looking down on the preliminary pit designs for the Strauss and Kylo gold deposits, and showing their close proximity to the processing plant layout which will utilise the existing foundations and haul roads.

300 metres

LEACHING

CRUSHING

LIME SILO

ADSORPTION

REAGENTS

GOLD ROOM

FLOTATION CIRCUIT

FINE ORE STOCKPILE

GRINDING

Figure 2: Aerial view looking towards the north and looking down on the preliminary processing plant layout utilising the former ROM pad and existing foundations.

The scoping study referred to in this report is insufficient to support estimation of Ore Reserves or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Scoping Study will be realised. All material assumptions underpinning the production targets and forecast financial information derived from the production targets, contained in Annexure A of the ASX release dated 20 October 2016, continue to apply and have not materially changed.

In discussing 'reasonable prospects for eventual extraction' in Clause 20, the JORC Code 2012 ('Code') requires an assessment (albeit preliminary) in respect of all matters likely to influence the prospect of economic extraction including the approximate mining parameters by the Competent Person. While a Scoping Study may provide the basis for that assessment, the Code does not require a Scoping Study to have been completed to report a Mineral Resource.

Scoping Studies are commonly the first economic evaluation of a project undertaken and may be based on a combination of directly gathered project data together with assumptions borrowed from similar deposits or operations to the case envisaged. They are also commonly used internally by companies for comparative and planning purposes. Reporting the results of a Scoping Study needs to be undertaken with care to ensure there is no implication that Ore Reserves have been established or that economic development is assured. In this regard, it may be appropriate to indicate the Mineral Resource inputs to the Scoping Study and the process applied, but it is not appropriate to report the diluted tonnes and grade as if they were Ore Reserves. While initial mining and processing cases may have been developed during the Scoping Study, it must not be used to allow an Ore Reserve to be developed.

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