EPITHERMAL GOLD-SILVER MINERALIZATION INTERCEPTED IN FIRST

www.argentinamining.com.au ACN 141 940 230

Suite 6, 25 Walters Drive, Osborne Park, WA 6017 PO Box 1767, Osborne Park DC, WA 6916 Perth, Western Australia Tel: +61 (8) 9204 2433 Fax: +61 (8) 9244 7273 Email: [email protected] ASX:AVK

17 June 2013 ASX ANNOUNCEMENT

EPITHERMAL GOLD-SILVER MINERALIZATION INTERCEPTED IN FIRST PASS DRILLING AT LAS LEÑAS

High grade responses confirm Au-Ag deposit potential which warrants further testing

HIGHLIGHTS

• 5m @ 2.14g/t Au and 34.93g/t Ag from 59m, incl. 2m @ 5.10 g/t Au & 79.65g/t Ag in LLDH_2 • 2m @ 2.63g/t Au and 47.80g/t Ag from 14m in Hole LLDH_7 • Gold & silver in massive quartz, vein stock-working & breccia in 20-50m wide shear zone • Successful scout program confirms potential & justifies further testing of 3,700m shear zone

Summary Argentina Mining Limited (Argentina Mining or the Company) (ASX: AVK) is pleased to announce results from the Company’s recently-completed 651m Phase 1 diamond core scout-drilling program at the 3,700m long Las Leñas epithermal-porphyry gold-silver multiple reef target in the Company’s San Francisco Project in San Juan Province in Argentina. Best drill intercepts from the program include: LLDH_2

• 5m @ 2.14g/t Au & 34.93g/t Ag (*Gold Equivalent 2.71g/t) from 59m, including 2m @ 5.10g/t Au & 79.05g/t Ag (*Gold Equivalent 6.39g/t)

• 1m @ 2.57g/t Au & 28.19g/t Ag (*Gold Equivalent 3.03g/t) from 13m LLDH_7

• 10m @ 0.81g/t Au & 14.67g/t Ag (*Gold Equivalent 1.05 g/t) from 14m, including 2m @ 2.63g/t Au & 47.80g/t Ag (*Gold Equivalent 3.41g/t)

LLDH_1

• 1m @ 1.15g/t Au & 19.55g/t Ag (*Gold Equivalent 1.47g/t) from 12m The initial drilling program has been a success in that:

• Drilling confirms continuity at depth beneath high grade surface gold and silver results from surface sampling on Section 2105N.

• Extensive mineralized breccia and quartz veining was identified on Sections 2050N & 2140N. • All holes intersected the targeted silicic and breccia reefs mapped during surface sampling. • Good vertical and horizontal continuities of the reefs mapped at surface are demonstrated. • Drilling shows the reefs to be components of a large gold-silver mineralized shear system. • Drilling identifies an additional mineralized breccia zone, hidden under surface deposits.

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Argentina Mining Limited

• The hidden breccia defines a major fault and may be the most significant zone in the system. • Drilling confirms the “blind” intrusive andesitic porphyry interpreted from geophysics.

Conclusions

• Interpretation shows potential for a large epithermal gold-silver deposit in a 20-50m wide, fault-bounded shear system in inter-bedded black shales and sandstones enclosing massive and drusy hydrothermal quartz-veining, quartz-breccias and quartz-vein stock-working originating from an adjacent “blind” intrusive porphyry whose emplacement is responsible for deformation of the host rocks and structural ground preparation for loci of mineralization.

• Because only a short strike length (130m) of the mapped 3,700m length of the shear structure has been tested, and only on a scout basis, by this program, further surface mapping, geophysics and drilling is justified to test the full length of the shear system.

Program Details Drilling commenced on 29 April 2013, following completion of an IP/RES geophysical survey on 15 April 2013 and interpretation of results to assist drill site selection, and was completed on 9 May 2013. The program entailed seven diamond drill holes designated LLDH_1 to LLDH_7 for a total advance of 651m, with holes ranging in depth from 60m to 158.3m (refer Table 3). All holes achieved their objectives of intersecting the main Anita and Anita East silicic, quartz-vein and quartz-breccia reefs, which the Company’s surface rock-chip sampling and trenching in 2012 and early 2013, prior to drilling, (refer previous ASX announcements or Background information below) has shown to carry potentially economic gold-silver mineralization. The most significant surface mineralization had been defined by rock-chip sampling on Section 2105N (refer Figure 2). Accordingly, three holes (LLDH_1, 2 & 7) were drilled on Section 2105N on a common easting of 2437312E, with two of them (LLDH 1 & LLDH_2) inclined to the west to test the mapped vein system, while the third hole, LLDH_7, was inclined to the east to probe for the porphyry interpreted from geophysics. Two holes (LLDH_3 & LLDH_4) were drilled 35m to the north of 2105N on Section 2140N and common easting 2437305E with a westerly azimuth to test the vein system, while a further two holes (LLDH_5 & LLDH_6) were drilled 55m south of 2105N, on 2050N and common easting 2437340E, also with westerly azimuths to test the vein system. Mineralization, Geology and Structural Controls Interpretation of drilling results indicates that moderate to higher grade gold-silver (Au-Ag) mineralization (1 – 5+g/t Au and up 91g/t Ag), as recorded on Section 2105N, occurs typically in a complex of white massive white quartz, drusy quartz and quartz-Fe veins, veinlets, stock-works and breccias in silicified sandstones and shales, with a halo of lower grade gold (0.1-1g/t Au) and less-abundant and lower grade silver (to approximately 5g/t Ag) enclosing the main zones of veining and brecciation. The mineralized zones lie in a broad, composite shear structure centred on, between or associated with two major faults, where the most intense brecciation and stock-working occurs (refer Figure 1).

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This composite fault and shear structure occurs within intensely sheared, foliated and laminated fine to coarse sandstones inter-bedded with thin lenses or units of occasionally fine quartz- and quartz-limonite-veined pyritic black shales, as well as occasional thicker black shale units of the order of tens of metres. Within the vertical range tested by drilling (~150m), intercalated sandstones and more minor shales occur on both the east and west side of the fault/shear structure. Shear foliation in all lithologies and brecciation in brittle lithologies increase in intensity approaching the centre of faulting, with precious metals grades increasing accordingly. It is possible that there are two generations of pyrite within the black shales, those of syn-genetic origin, and later hydrothermal sulphides, as some quartz-veining of likely hydrothermal origin in the black shales exhibits limonite staining from alteration of iron sulphides. Further, the black shales appear to have either scavenged silver, which is not uncommon, or have had silver emplaced by a later external mineralizing process, to maximum levels of around 5g/t Ag. Where this is noted, arsenic, copper, lead and zinc values are occasionally elevated to maxima of 1000-2000ppm and are considered locally anomalous. On Section 2105N, the shear structure ranges in width from approximately 45-50m at surface to approximately 20-25m at around 80m vertical depth. Two holes (LLDH_6 and LLDH_7, on separate drill sections 55m apart), confirm the existence of non-outcropping (“blind”) andesitic porphyry interpreted from the geophysics, at depth on the eastern side of the drilled area. It is believed most likely that this porphyry has been responsible for the mechanics of deformation, faulting and shearing in the adjacent sandstones, shales and black shales, and is also the source of hydrothermal Au-Ag +/- sulphide mineralization, typically arsenic, copper, lead and zinc, generally at low-order but anomalous levels. The black shales in two thick units, one on either side of the centre of faulting, as well as the minor units inter-bedded with sandstones and shales, are thought to have acted as glide planes which have assisted deformation and fracturing of the relatively brittle sandstones and shales during intrusion of the porphyry, thus providing the necessary ground preparation to allow passage and emplacement of mineralizing hydrothermal solutions. Hydrothermal silica-flooding of these sediments may have increased their embrittlement as well as provided a means of hydraulic fracturing, perhaps in sequential phases. The quartz-limonite-breccias and stock-works provide ample support for this likely process. Figure 2 depicts a plan of the area of drilling, and shows a typical multiple silicic-quartz-Fe shear system aligned along a well-recognized 340o - trending structural mineralization control in San Juan geology. The system shows typical anastomosing and bifurcating fault, shear and reef structures. These characteristics may also be seen in section, as shown in Figure 1. While the best results were demonstrated on the central Section 2105N, Sections 2050N and 2140N were successful in confirming the horizontal continuity of the fault, shear and reef structures and the persistence of the styles of alteration, veining and brecciation seen in Section 2105N, described as follows:

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On Section 2050N, Hole LLDH_3 features a 16m intercept from 4-20m in quartz vein breccia with anomalous silver to 3.28g/t Ag at 19-20m, arsenic, copper, lead (to 2082ppm Pb) and zinc responses. Its step-back companion Hole LLDH_4 identifies the same breccia over at least 15m from 10-25m, where it carries gold to 0.36g/t Au at 20-21m and silver to 6.92g/t Ag at 23-24m (Table 2), in association with anomalous arsenic to 2706ppm As, copper to 1387ppm Cu, lead to 2759ppm Pb and zinc to 2050ppm Zn. In addition, it shows elevated silver to 3.38g/t in laminated black shale with massive quartz veinlets over 6m from 66-72m, in association with elevated arsenic, lead and zinc. On Section 2140N, Hole LLDH_5 shows intense quartz veining and fracturing in silicified shales over 10m from 5-15m depth, with anomalous gold to 0.29g/t Au (Table 2) and elevated arsenic. Its step-back companion Hole LLDH_6 records 8m of vein breccia from 24-32m depth (refer example, Figure 3), with elevated silver to 3.05g/t Ag at 30-31m, associated with low but anomalous arsenic, molybdenum, lead and zinc. The molybdenum signature is thought to be a result of the proximity to the intrusive porphyry intersected only a further 13m down the hole, where it is encountered initially as a melange of brecciated porphyry, sandstone and shale, with abundant pyrite, including pyrite veinlets. This persists for 22m from 45-67m until the contact with the andesitic porphyry, where there is abundant quartz veining and intense sericitic and potassic alteration. Summary Drilling has successfully intercepted the targeted silicic components of a large fault-bounded shear system which have been mapped at surface over a distance of 3,700m, in fine to coarse sediments with thin intercalated and thick bounding black shale units. In response to deformation during intrusion of an andesitic porphyry, intersected in two drill-holes, the black shale units have acted as lubrication or glide planes of greater competency while the inter-bedded brittle sediments have become sheared, fractured and brecciated. This process of ground preparation which has accommodated the emplacement of hydrothermal solutions that have brought about pervasive silicification, massive and drusy quartz veining and quartz vein stock-works, some calcite veining, mainly in the sediments but also in the adjacent black shales, and epithermal gold-silver mineralization up to 6.39g/t Au (Gold Equivalent) with base metal anomalism. An additional thick mineralized breccia zone not previously mapped, and which may be a significant host, has been discovered beneath recent sediments.

====== END ====== For further information, please contact:

Company Contacts: Eduardo Videla – Managing Director +54 (264) 427 8583 Doug Bright – Chairman +61 (8) 9204 2433 Email: [email protected]

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Figure 1: Section 2105N – Interpretation of Geology & Mineralization

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Figure 2: Las Leñas – Geological Plan showing mapped silicic, vein and

breccia structures & recent surface sampling results

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Figure 3: Hole LLDH_6 – Core at 25m depth in silicified vein and sandstone breccia, with white &

drusy quartz veins, Fe-oxides in fractures & fault gauge.

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Table 1 – Significant Results

SECTION HOLE-ID FROM TO m Au (g/t)

Ag (g/t)

Gold Equiv.* (g/t Au)

2105N LLDH_1 12 13 1 1.15 19.55 1.47 LLDH_2 13 14 1 2.57 28.19 3.03

59 64 5 2.14 34.93 2.71 Incl. 59 61 2 5.10 79.05 6.39 LLDH_7 14 24 10 0.81 14.67 1.05 Incl. 22 24 2 2.63 47.80 3.41

Table 2 – Anomalous Gold & Silver Results

SECTION HOLE-ID FROM TO m Au (g/t)

Ag (g/t)

2050N LLDH_4 10 15 5 0.13 0.94 Incl. 11 12 1 0.32 2.14 20 26 6 0.14 4.02 Incl. 20 21 1 0.36 1 Incl. 23 24 1 0.07 6.92

2140 LLDH_5 6 13 7 0.18 3.48 Incl. 8 9 1 0.29 0.7 60 61 1 0.14 0.9 LLDH_6 30 31 1 0.03 3.05

Table 3 – Diamond Drill-hole Collar Location Data for May 2013 Las Leñas Program

HOLE-ID EASTING NORTHING RL LENGTH (m) AZ DIP

LLDH_1 2437312 6602105 3430.71 60.3 266.7 -47.1 LLDH_2 2437312 6602105 3430.71 158.3 255.5 -75.0 LLDH_3 2437305 6602140 3410.5 60.0 270 -45.0 LLDH_4 2437305 6602140 3410.5 90.0 270 -80.0

LLDH_5 2437340 6602050 3438.69 62.0 264.5 -45.6 LLDH_6 2437340 6602050 3438.69 80.1 270 -70.4 LLDH_7 2437312 6602105 3430.71 140.3 90 -47.1 TOTAL 651.0

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About Argentina Mining Limited Argentina Mining Limited is exploring a suite of five gold and base metal projects in San Juan Province, Argentina. These projects range from the established porphyry copper-gold-molybdenum project at Cerro Blanco, epithermal vein gold and copper mineralisation at Amiches, San Francisco and Tres Amigos and regional exploration projects near Barrick Gold Corporation’s major Veladero (Reserves 12Moz Au) and Pascua-Lama (Reserves 17.8Moz) gold operations. The Company’s first 5 diamond core-holes drilled in two phases in 2011 at the Copper Hill Prospect at Cerro Blanco intersected broad zones of porphyry copper-gold-molybdenum mineralisation which, supported by results from geophysical Ground IP-Res and Magnetics surveys, confirm the presence of a large mineralised porphyry sulphide and oxide system. Follow-up drilling is planned in 2013. Program Background In late 2012, sampling over a 36m long section of the main reef in the central part of the Las Leñas Prospect yielded a continuous run of 12 x 3m long samples averaging 36m @ 1.23g/t Au & 4.85g/t Ag, as reported to ASX in the Company’s December Quarterly Report.

A follow-up trenching and rock-chip sampling program set out to extend sampling over a 1,200m strike distance along the central part of the main reef structure, as a prelude to a program of IP geophysics, both of which were intended to assist with determining vein orientations and resolving mineralization at depth, prior to laying out pads for the April 2013drilling program. The following best results from the program were announced to ASX on 11th March, 2013:

• 1m @ 3.63g/t Au & 7.7g/t Ag • 1m @ 2.76g/t Au & 8.7g/t Ag • 1m @ 2.56g/t Au & 10.7g/t Ag • 1m @ 2.5g/t Au & 5.8g/t Ag • 1m @ 2.37g/t Au & 6.5g/t Ag • 7.48m @ 2.29g/t Au & 6.46g/t Ag from an across-strike sample run on 6,602,102N. • 14.6m @ 2.65g/t Au & 7.10g/t Ag from an along-strike sample run on 2,437,291E • A ~500m long zone of gold-silver anomalism averaging <0.8g/t Au and >4g/t Ag.

This program entailed 91 individual 1m samples taken from 1m deep trenches cut across the central part of the main 5-6m thick vein in the multiple vein system, at nominally 10m intervals, thereby extending the sampling to cover a 1,200m along-strike section of the reef.

Sampling broadly defined a gold-silver anomalous zone over 500m along strike with an overall average grade exceeding 0.8g/t Au and 4g/t Ag; this is centred on what has been so far defined as a 140m long higher-grade zone reporting values to a maximum of 3.63g/t Au and 7.7g/t Ag in Sample 7095, one hand-specimen from which exhibits visible gold Geophysics An Induced Potential-resistivity (IP-Res) geophysical survey comprising two lines transecting the multiple vein structure was completed on 15 April 2013. The program was designed to resolve reef orientation and to determine centres of mineralization and thereby assist with planning the siting of drill-pads. Results were integrated with information from surface trenching, geochemistry, geological and alteration mapping and cross sectional interpretation to generate drill targets. Notes 1. Coordinate System: Gauss Kruger, Zone 2 , Campo Inchauspe, as used in Argentina 2. Analysis: All samples prepared and analysed at Alex Stewart Assayers, Argentina in Mendoza Province.

Gold assayed using fire assay method FAA515, all other elements using method ICP 40B 3. Gold Equivalent Calculation: Gold Equivalent conversion factors and long-term commodity price assumptions used are:

Gold Equivalent Formula = Au ppm+ (Ag ppm x 0.016) Commodity price assumptions Au (US$ 1,000/oz), Ag (US$ 16.33/oz)

Competent Person Statement The information in this report relating to Exploration Results is based on information compiled by Mr Doug Bright, a Member of the Australasian Institute of Mining and Metallurgy and a Director of and geological consultant to Argentina Mining Limited. Mr Bright has sufficient experience relevant to the style of mineralisation and type of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.’ Mr Bright consents to the inclusion in this report of the matters based on his information in the

form and context in which it appears.

Documents

EPITHERMAL GOLD-SILVER MINERALIZATION INTERCEPTED IN FIRST