Macarthur Minerals Intersects High Grade Magnetite at Its Lake Giles Iron Project in Western Australia

VANCOUVER, Dec. 10, 2019 - Macarthur Minerals Ltd. (TSX-V: MMS) (ASX: MIO) (the “Company” or “Macarthur”) is pleased to provide an update on the recent infill drilling program at its Lake Giles Iron Project in the Yilgarn region of Western Australia. Infill Drilling has intersected a zone of high-grade magnetite mineralisation identified previously at the Moonshine North deposit and assay results have been received for several Reverse Circulation (RC) drill holes.

The drilling programme commenced on 17 August 2019 and concluded on 8 December 2019 with a total of 21 RC holes and nine diamond drill holes completed.

The results of the drilling campaign have shown a successful intersection of high-grade magnetite mineralisation. Previous test work has demonstrated the potential to produce a processed high-grade magnetite concentrate of approximately 68-69%.

HIGHLIGHTS

• Reverse Circulation drilling has successfully intersected the previously identified high grade magnetite mineralisation at Moonshine North.
  • Hole LGRC_2160 intersected an interval 86m to 180m (94m) averaging 40.51% Fe (including the interval 121m to 171m with a grade of 47.52% Fe).
  • Hole LGRC_2166 intersected the interval 95m to 152m (57m) averaging 40.23% Fe (including the interval 129m to 147m with a grade of 60.64% Fe).
• Diamond drill hole LGDD_071 drilled at Moonshine North has also intersected the high-grade magnetite mineralisation from a down hole depth of 91.5m to 162.74m (71.24m) with strong visual magnetite content (Photo 1).

Photo 1 - Strong magnetite mineralisation at Moonshine North Zone in diamond drill hole LGDD_071

Photo 1 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/08d6ce4e-46a5-4bfe-8298-c94d62439a70

Mr Cameron McCall, Executive Chairman of Macarthur Minerals commented:

“The Company is extremely pleased with its successful listing on the Australian Securities Exchange (ASX) and the positive market response in the first two days of trading. Macarthur’s dual listing on the ASX and the TSX-V will provide the Company with increased opportunities in the pre-development stage of its flagship Moonshine Magnetite Project.

“With Australia as a major exporter of iron ore to the world and the ASX being the home exchange to some of the world’s largest iron ore producing companies, it makes sense for Macarthur to be dual listed in Australia.”

Moonshine Magnetite Infill Drilling Program

The majority of the Moonshine and Moonshine North deposits are defined by drill hole spacing of 200m X 200m and classified as an Inferred Mineral Resource of approximately 710 mt at 30.2% Fe¹.

The current infill drilling program has been designed at closer drill hole spacing to upgrade the resource classification for some of the Moonshine and Moonshine North deposits. The planned program included 21 RC drill holes and nine diamond drill holes. The program has concluded with a total of 3,674 metres of RC drilling and 2,673 metres of diamond drilling completed.

The drilling program has been designed with the goal of upgrading the resource classification to include Indicated and Measured Mineral Resources. The updated mineral resource, when completed, will underpin the Feasibility Study to be completed for the Lake Giles Iron Project.

The photo below shows the Diamond Drill rig in operation (Photo 2) at the Moonshine North deposit.

Moonshine North Magnetite Results

At the Moonshine North deposit, Reverse Circulation and Diamond drilling has successfully intersected the previously identified high grade magnetite mineralisation. Assay results for intervals of high-grade magnetite obtained to date are provided in the table below, NOTE these are drill intersections and not true widths.

Analytical results are pending for a further eight holes also drilled at Moonshine North, all of which include visually logged intervals with a high percentage of magnetite content.

Preliminary metallurgical test work on a sample of similar iron grade obtained from hole LGRC_203 drilled at Moonshine North previously showed great potential to obtain a high-grade magnetite concentrate¹. Single and two-staged Low Intensity Magnetic Separation (LIMS) obtained concentrate grades ranging from 67.3% to 68.4% Fe and 4.2% to 5.0% SiO₂ with high mass recoveries of 57.8% to 60.3%. Material of higher head grade is likely to result in higher mass recovery in comparison to the conservative design criteria of 38% used in the Preliminary Economic Assessment, 2019¹.

Photo 2 - Diamond Drill Rig in Operation at Moonshine North - Hole LGDD_071

Photo 2 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/ee22417c-c4aa-4309-adb5-40349086be87

Update of the Moonshine/ Moonshine North infill drilling program

Since the release of the Preliminary Economic Assessment¹ the company commenced its work for a Feasibility Study (FS). The study is well underway with the infill drilling program completed on 8 December 2019. Analytical results have been returned for the first two batches of RC samples and 4 ½ diamond holes. A third batch of the remaining core samples is in transit to the laboratory. Davis Tube analysis results are awaited.

The table below provides analytical results of the programme returned from the SGS Australia Pty Ltd laboratory in Perth. SGS Australia Pty Ltd is a Member of the SGS Group that provides analytical services throughout the world. All samples were dispatched to SGS Perth Laboratory. On completion of each drill hole the calico sample bags were placed in poly-weave bags and transferred to the Ularring exploration compound where they were securely stored. The poly-weave bags were placed in large bulka bags and transported to the assay laboratory depot in Kalgoorlie and then Perth using a contracted freight company.

At all times the samples were under the security of either Macarthur or the transport company personnel, and then under the security of the laboratory. Rip tie security tags were used to secure all samples. Pulp samples were analysed using Borate Fusion with XRF finish (laboratory analytical code XRF78L), considered the industry standard practice for iron ore. Industry standard certified reference materials (CRMs) and blanks were utilized in order to check laboratory assay quality control. The insertion rate for CRMs is a nominal 1 in 20. Different CRMs have been selected for use at varying Iron grades over the life of the project. The combined insertion rate of pulp blanks and CRMs is a nominal 1 in 20 samples. The QA/QC program includes CRMs, blanks, preparation duplicates and field duplicates and is acceptable according to industry standards. Pulp duplicates were also analysed to test for analytical accuracy.

The table below gives the surveyed Reverse Circulation drill hole locations plotted as MGA Zone 50

A photo of the Reverse Circulation drill rig in action on hole LGRC_2161 at the Moonshine North deposit is shown below (Photo 3) and RC chip samples of materials from the Moonshine North deposit shown in photo 4.

Photo 3 - Reverse Circulation Drill in action on hole LGRC2161 at Moonshine North.

Photo 3 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/0be6abe0-a58d-4dba-b97d-4d79e78447cb

Photo 4 - Reverse Circulation Drill chip samples of materials from the Moonshine North deposit.

Photo 4 is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/3f215be3-f7d3-4bb7-b5b9-dcfc23038977

No New Information
To the extent that this announcement contains references to prior exploration results and Mineral Resource estimates, which have been cross referenced to previous market announcements (including supporting JORC reporting tables) made by the Company, unless explicitly stated, no new information is contained in accordance with Table 1 checklist in the JORC Code. The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcements and, in the case of Mineral Resources that all assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

QUALIFIED PERSONS

Mr Ian S Cooper, B.Sc., A.R.S.M., F.G.S. FAusIMM, a Fellow of the Australasian Institute of Mining and Metallurgy (membership number 107348, is a consultant of Macarthur and is a Qualified Person as defined in National Instrument 43-101. Mr Cooper is in charge of Macarthur’s exploration programs and has reviewed and approved the technical information contained in this news release.

ABOUT MACARTHUR MINERALS LIMITED (TSX-V: MMS, ASX: MIO)

Macarthur is an iron ore development, gold and lithium exploration company that is focused on bringing to production its Western Australia iron ore projects. The Lake Giles Iron Project includes the 80 million tonne Ularring hematite resource (approved for development) and the 710 million tonne Moonshine magnetite resource. Macarthur has prominent (~1,281 square kilometer tenement area) gold, lithium and nickel exploration interests in Pilbara region of Western Australia. In addition, Macarthur has lithium brine Claims in the emerging Railroad Valley region in Nevada, USA.

On behalf of the Board of Directors,
Macarthur Minerals Ltd.

“Cameron McCall”
Cameron McCall, Executive Chairman

Company Contact
Joe Phillips, CEO and Director
Email: jphillips@macarthurminerals.com
Telephone: +61 448899247

Website: www.macarthurminerals.com

A different version of the current report was submitted to the ASX and formatted according to the JORC requirements. The technical data presented in both reports are identical and only the format and legal statements may differ.

_______________________
¹ NI43-101 Technical Report filed June 17, 2019, titled “Macarthur Minerals Ltd., Preliminary Economic Assessment Lake Giles Iron Project, Western Australia”, NI43-101 Technical Report – Preliminary Assessment

THIS NEWS RELEASE IS NOT FOR DISTRIBUTION TO UNITED STATES SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Caution Regarding Forward Looking Statements
Certain of the statements made and information contained in this press release may constitute forward-looking information and forward-looking statements (collectively, “forward-looking statements”) within the meaning of applicable securities laws. All statements herein, other than statements of historical fact, that address activities, events or developments that the Company believes, expects or anticipates will or may occur in the future, including but limited to statements regarding: the proposed strategy regarding core mining, road and rail inputs at the Project; anticipated increases in annual production at the Project; anticipated decreases in Project costs; the possible reclassification of current inferred mineral resources on the Project as indicated mineral resources in the future; expected completion of the FS on the Project containing a new reserve calculation and a new economic assessment; the granting of a license for the Menzies rail siding; the status of the MRRT; and plans to secure mining approvals under the Mining Act, are forward-looking statements. The forward-looking statements in this press release reflect the current expectations, assumptions or beliefs of the Company based upon information currently available to the Company. With respect to forward-looking statements contained in this press release, assumptions have been made regarding, among other things, the reliability of information prepared and/or published by third parties that are referenced in this press release or was otherwise relied upon by the Company in preparing this press release. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and no assurance can be given that these expectations will prove to be correct as actual results or developments may differ materially from those projected in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include but are not limited to: unforeseen technology changes that results in a reduction in iron or magnetite demand or substitution by other metals or materials; the discovery of new large low cost deposits of iron magnetite; the general level of global economic activity; future changes in strategy regarding core mining, road and rail inputs with respect to the Project; final Project costs varying from those determined from the EOI program; failure to successfully negotiate a BOO arrangement for the Project; failure to complete the FS; failure of the FS to reflect currently anticipated increases annual production and decreases in expected costs at the Project; the results of infill drilling being insufficient to reclassify current inferred mineral resources on the Project as indicated mineral resources; failure to receive a license for the Menzies rail siding; failure to repeal the MRRT; and failure to obtain mining approvals under the Mining Act. Readers are cautioned not to place undue reliance on forward-looking statements due to the inherent uncertainty thereof. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. The forward-looking statements contained in this press release are made as of the date of this press release and except as may otherwise be required pursuant to applicable laws, the Company does not assume any obligation to update or revise these forward-looking statements, whether as a result of new information, future events or otherwise.