REGIONAL DRILLING CONFIRMS TWO NEW PROSPECTS AT THE BADEN · PDF file Baden Powell Project Area The Baden Powell project is located about 60km NNW of Kalgoorlie. Step back RC drilling

REGIONAL DRILLING CONFIRMS TWO NEW PROSPECTS AT

THE BADEN POWELL AND WINDANYA PROJECT AREAS

HIGHLIGHTS

 Regional drilling comprising 58 RC holes for 4,763m completed in September 2019. Two

historic prospects “Baden Powell North” and “Capricorn” returned significant new gold

mineralisation in an area of limited historic exploration

 At the Capricorn prospect, follow up drilling was conducted on a 40m spacing along 360m

of strike length. Significant results include1:

o 12m @ 3.62g/t Au from 28m including 1m @ 24.0g/t Au from 32m (WDRC19031)

o 5m @ 6.56g/t Au from 43m including 1m @ 21.60g/t Au from 46m (WDRC19028)

o 5m @ 6.15g/t Au from 66m including 1m @ 26.20g/t Au from 66m (WDRC19029)

o 10m @ 1.97g/t Au from 65m (WDRC19033)

 At the Baden Powell North prospect, historic workings and adjacent areas up to 600m NNW

of the historic open pit area were tested. Significant results include1:

o 8m @ 2.79g/t Au from 76m* (BPRC19028)

o 5m @ 2.67g/t Au from 12m (BPRC19022)

o 3m @ 5.73g/t Au from 18m (BPRC19022)

 At the Baden Powell mine area, infill drilling was conducted to convert the established

mineralisation to a JORC compliant resource. Better results include1:

o 6m @ 1.82g/t Au from 54m (BPRC19014)

o 5m @ 1.61g/t Au from 56m and 2m @ 1.10g/t Au from 70m (BPRC19011)

Commenting on the latest results, Horizon Managing Director Mr Jon Price said:

“The regional drilling program continues to deliver new and exciting results in areas where limited

modern exploration has been conducted in the past. The Windanya and Baden Powell areas are

now demonstrating the potential for new resources to be established within trucking distance from a

centralised processing facility. We look forward to the next round of drilling to further test the extent

of mineralisation and infill drilling to improve geological confidence. ”

1 3See Table 1 on Page 10, Competent Persons Statement on page 12 and JORC Tables on Page 13. * 4m composite, single results pending.

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Overview

Horizon Minerals Limited (ASX: HRZ) (“Horizon” or the “Company”) (formerly Intermin Resources

Limited) is pleased to announce further excellent reverse circulation (“RC”) drilling results from the

100% owned Kalgoorlie regional gold project areas located along the Bardoc Tectonic Zone and

Abattoir Shear Zone in the heart of the Western Australian goldfields (Figure 1).

Figure 1: Kalgoorlie Regional Project area location and surrounding infrastructure

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During 2019, the Company completed 3 RC programs, focused on resource growth at Coote and

Crake, but also testing a number of under explored regional prospects such as the Central Binduli

area (Darter and Honeyeater), Black Flag, Capricorn and Baden Powell. These tenements are all

located within the highly prospective Abattoir Shear-Bardoc Tectonic Zone corridor. To date, Horizon

has drilled a total of 164 RC holes for 14,227m in 2019.

Windanya Project Area

The Windanya group of tenements are located about 45km NW of Kalgoorlie. During March and

April 2019, the Company completed a first pass 5 hole, RC program at the historic Capricorn

Prospect (refer to Metaliko 2010 IPO prospectus dated 16 July 2010 for more details). Earlier drilling

had delineated gold bearing quartz veins on the contact of an ultramafic and basaltic unit. Significant

historical intercepts included 1:

 1m @ 9.5g/t Au from 36m (PCN/DCN003)

 1m @ 24.2g/t Au from 86m (PCN021)

 3m @ 3.35g/t Au from 66m (PCN022)

The March drilling confirmed the tenor of mineralisation with results including 2:

 1m @ 9.91g/t Au from 35m and 1m @ 1.05g/t Au from 41m (WDRC19012)

 5m @ 2.28g/t Au from 92m and 1m @ 1.68g/t Au from 106m (WDRC19009)

Given the positive results and favourable geology, Horizon conducted a follow up, resource style drill

program on a 40m spacing along 360m of interpreted strike length. The results are promising with

relatively shallow, high grade mineralisation intercepted (Figures 2 and 3). Highlights include 3:

 12m @ 3.62g/t Au from 28m, including 1m @ 24.0g/t Au from 32m (WDRC19031)

 5m @ 6.56g/t Au from 43m including 1m @ 21.60g/t Au from 46m (WDRC19028)

 5m @ 6.15g/t Au from 66m including 1m @ 26.20g/t Au from 66m (WDRC19029)

 10m @ 1.97g/t Au from 65m (WDRC19033)

Typical of these areas, there is a near surface depletion zone that has blanketed the prospect with

deeply weathered clays. Beneath this, the primary mineralisation dips to the east and averages about

4m thick but can blow out in the oxide zone to 10-12m in width as shown in WDRC19031. Some

pinching and swelling, typical of high strain terrains, together with inferred fault offsets have

complicated the ore shoot distribution.

In addition to the drilling, Horizon has also been actively exploring the entire Windanya tenement

group having taken over 200 soil samples and rock chips in 2019. Several anomalies coincident with

interpreted structures were generated and remain to be tested. POW’s for 2020 drill programs have

been submitted.

1 As announced to the ASX by MKO on 16 July 2010. 2 As announced to the ASX on 16 July 2019. 3 See Table 1 on Page 10, Competent

Persons Statement on page 12 and JORC Tables on Page 13.

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Figure 2: Capricorn Drill hole Collar Plan

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Figure 3: Capricorn Cross Section (see Figure 2 for location)

Baden Powell Project Area

The Baden Powell project is located about 60km NNW of Kalgoorlie. Step back RC drilling by Horizon

in 2017 confirmed that there was potential to build a limited resource around the old pit (Figure 4).

The gold mineralisation is steeply dipping and typically occurs in a shear zone along a porphyry and

ultramafic contact. Significant 2017 intercepts included 1:

 17m @ 3.00 g/t Au from 104m (BPRC1703)

 14m @ 1.87 g/t Au from 129m (BPRC1708)

 10m @ 1.30 g/t Au from 183m (BPRC1701)

1 As announced to the ASX on 29 August and 28 November 2017.

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The drilling highlighted some gaps in the data and potential extensions immediately north of the pit

(Figure 4). These areas were recently drill tested (Figure 5). Significant results include 1:

 6m @ 1.82g/t Au from 54m (BPRC19014)

 5m @ 1.61g/t Au from 56m and 2m @ 1.10g/t Au from 70m (BPRC19011)

 4m @ 1.57g/t Au from 29m (BPRC19013)

Deep drilling (BPRC19018-19019) 100m north of the pit did not intersect any significant mineralisation which definitively bounds the potential Baden Powell resource size to the north. The southern area of the pit has still to be tested.

In keeping with the Baden Powell resource expansion program, a series of historic workings about 250-600m NNW of the old pit were sampled. Quartz veins on the mullock returned high grade assays up to 67.1 g/t Au. The workings had been drill tested (possibly in the 1990’s) but there was no sample/assay record of them in the GSWA Wamex database.

The drill spoils were in poor condition but were resampled as 4m composites by Horizon. The maximum result was 4m @ 1.3 g/t, with several other anomalous composites (>0.1 g/t Au) observed. Similar to the Baden Powell historic pit (Figure 4), the gold appeared to be located along the porphyry-ultramafic contact.

Given the comparable geology, the high grade veins and sampling results, Horizon completed 9 RC scout holes around these workings. The results were pleasing with several promising, shallow intercepts made along the trend line. Better results include 1:

 8m @ 2.79g/t Au from 76m* (BPRC19028)

 5m @ 2.67g/t Au from 12m (BPRC19022)

 3m @ 5.73 g/t Au from 18m (BPRC19022)

Two other historic workings, located between Baden Powell North and the Scotia workings another 2km NNW were also tested. Some minor gold was observed in SRC19001 (2m @ 0.68 g/t Au from 56m). Follow up infill drilling is planned at Baden Powell North.

Figure 4: Historic Baden Powell pit looking north.

1 3See Table 1 on Page 10, Competent Persons Statement on page 12 and JORC Tables on Page 13. * 4m composite, single results pending.

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Figure 5: Baden Powell mine and Northern Prospect Collar Plan.

Black Flag Project Area

The Black Flag project is located about 35km NNW of Kalgoorlie and overlies part of the highly prospective Abattoir Shear Zone (Teal-Jacques-Gimlet Deposits) and arguably, the south-eastern edge of Mt Pleasant anticline. The geology is dominated by the Black Flag volcanics, sediments and porphyry intrusives. Much of the historical (drilling) work was completed by Centaur Mining (1996-1998) and Placer Dome (2003-2006). This work resulted in an improved geological understanding of the area which was mostly covered by sheet wash and lake clays. There are few, if any, historical drill holes of note, the best result being 1m @ 1.24 g/t (38m) and 1m @ 4.46 g/t (46m) from BFLA553 near the interpreted Abattoir Shear.

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