Keras drilling confirms high grades at Klondyke

Keras Resources says drilling has confirmed historic intercepts at its 100% owned, flagship Klondyke gold project in the East Pilbara district of Western Australia.

This follows the receipt of assay results for the remaining six holes of the reverse circulation drilling programme completed in November, which returned high-grade gold intersections. Highlights:

- Wide, near surface gold intercepts including multiple higher grade zones returned in the final six holes of the Klondyke drill programme, underlining the potential for bulk open pit extraction

- High-grade gold intervals at depth suggest suitability for underground exploitation, as well as, initial open pit operations, potentially extending the life of mine

- Five holes were drilled within the defined JORC compliant mineral resource estimate, of 5.6Mt at 2.08g/t gold ('Au') for 374,000oz, along the Klondyke trend, over a strike length of approximately 1.4km

- One hole was drilled in the area between the current resources confirming grade continuity in this area

- Intercepts include:

* Hole KKC003: 60m @ 1.00g/t from 0m to end of hole ('EOH') incl. 2m @ 5.77g/t Au from 6m, 4m @ 1.94g/t Au from 15m, 16m @ 1.97g/t Au from 35m

* Hole KKC004: 44m @ 1.08g/t Au from 0m incl.13m @ 2.28g/t Au from 14m

* Hole KKC005: 38m @ 1.52g/t Au from 0m incl.28m @ 1.98g/t Au from 0m

* Hole KKC006: 37m @ 1.60g/t Au from 50m incl. 21m @ 2.66g/t Au from 62m

* Hole KKC007: 38m @ 1.92g/t Au from 0m, incl. 23m @ 2.68g/t Au from 2m

* Hole KKC008: 90m @ 1.34g/t from 0m to EOH incl. 6m @ 3.32g/t Au from 11m, 6m @ 4.45g/t Au from 24m, 7m @ 1.87g/t Au from 57m, 5m @ 3.42g/t Au from 69m, 4m @ 5.50g/t Au from 86m to EOH

- Results bolster previously reported gold intercepts in holes drilled under the satellite Copenhagen pit:

* Hole KKC001: 18m @ 6.3g/t Au from 33m (incl. 6m @ 9.3g/t Au from 34m and 3m @ 16.0g/t Au from 45m)

* Hole KKC002: 9m @ 6.9g/t Au from 49m (incl. 6m @ 9.5g/t Au from 49m)

- Significant further upside potential:

* High-grade gold (up to 14.1g/t over 1m) intersected near the bottom of hole KKC008, beyond the final depth of the hole being twinned, underscores potential for the discovery of additional gold mineralisation

* Drilling tested only 1.4km of the 7.5km trend and that historic drilling did not test the full trend

* Recent chip sampling recorded 10g/t Au results at both the extreme eastern and western ends of the Klondyke tenement package

* Old workings present along the 7.5km trend

- Samples from significant intercepts are currently being analysed by screen fire assay to provide more accurate grades and analyse more accurately any coarse gold mineralisation intercepted

Managing director Dave Reeves said: "Our maiden drill programme at the Klondyke Gold Project has confirmed that gold mineralisation of substantial thickness commences at surface along parts of the Klondyke trend. It is important to note that our drilling tested only 1.4km of the 7.5km trend and that historic drilling did not test the full trend. Rock samples collected from the Klondyke horizon during the recent mapping programme returned anomalous levels of gold along parts of the trend not tested by historic drilling, defining targets for further work. In addition to the wide, high-grade gold intercepts returned in two holes drilled under the small Copenhagen pit, the results of drilling and sampling along the Klondyke trend emphasise the considerable potential of our flagship project.

"Drill samples are currently being analysed by screen fire assay to provide more accurate gold grades. Once we have these results, planning for the 2017 drill programme, which aims to expand the current resource estimate of 5.6Mt at 2.08g/t Au for 374,000oz, will be finalised. I look forward to reporting the results of screen fire analysis in due course and providing updates on the next phase of exploration at Klondyke."