Woodlawn Drilling Update – High Grade Results from new Lisa Lens

Heron Resources Ltd. (“Heron” or the “Company”) is pleased to report a significant intercept of high-grade massive sulphide grading approximately 18% Zn from the discovery hole drilled into the Lisa Lens.

These results form part of the highly successful 2014-15 drilling program that will delineate new Mineral Resources to contribute to the on-going Preliminary Economic Assessment (PEA) for the planned Woodlawn Underground Project.

The Phase I drill campaign has concluded with step-out holes being drilled to the north of the Kate Lens and directly to the south of the historic open-pit mine.

Woodlawn is a high-grade, volcanogenic massive-sulphide (VMS) deposit, wholly-owned by Heron and located approximately 50km northeast of Canberra and 250km southwest of Sydney, in New South Wales, Australia.

Assay Results

Assay results for diamond drill hole (DDH) WNDD0015 confirm 18.3m of pyrite dominant massive-sulphides containing a significant polymetallic intercept of:

4.2m @ 17.7% Zn, 1.6% Cu, 5.0% Pb, 1.1g/t Au, 28g/t Ag from a depth of 246m

DDH WNDD0015 targeted a position directly to the north of two historic drill holes, W089 and W145, in an area postulated to contain an additional lens of mineralisation (Figure 1). The results of the historic holes include:

4.0m @ 4.9% Zn, 2.8% Cu, 2.3% Pb, 0.8g/t Au and 25g/t Ag from a 266m depth (W089)

4.0m @ 2.0% Cu from a 234m depth (W145)

The result in WNDD0015 is highly encouraging and demonstrates the potential for Woodlawn to host relatively shallow high-grade mineralisation analogous to that historically encountered in the idled underground.

Neighbouring DDH WNDD0017 targeted the predicted up-plunge direction of the new lens as follow-up to WNDD0015, however a late-stage dolerite intrusive body has displaced the target. DDH WNDD0017 was continued and intersected the D Lens, where an interval of 9.5m of massive sulphides was intersected (assays pending).

DHEM Surveys

Down-hole electro-magnetic (DHEM) surveying of WNDD0015 has been completed and preliminary modelling indicates good potential for extensions of the mineralisation both down-dip and along strike to the north and south. At this stage modelling suggests the centroid of the lens is positioned below the DDH WNDD0015 intercept, and explains the lack of mineralisation found in DDH WNDD0017 which penetrated the up-dip position. As shown in Figure 1, the modelled lens “plate” is smaller than the Kate Lens, but the excellent grade returned from WNDD0015 supports follow-up drilling. Lisa Lens is located within 100m of existing underground development.

Figure 1: Plan overview of the Woodlawn Lenses showing pit and existing underground decline. The new Lisa Lens is shown in the top left hand corner.

To view the graphic in its original size, please click http://www.fscwire.com/sites/default/files/NR/662/5777_image1.jpg

Drilling Program Update

Phase I drilling at Woodlawn has now concluded. In addition to DDH WND 0015, DDH WNDD0018 tested the postulated northerly extension of the Kate Lens, and WNDD0020 was drilled to test at depth below the southern end of the Woodlawn pit where historic Jododex hole W024 intersected 15.7m grading 8.7% Zn, 0.9% Cu, 2.6% Pb, 1.0g/t Au and 71g/t Ag. There is limited follow up drilling in this area. The key results for these two holes are as follows:

• WNDD0018 intersected 2.2m of semi-massive sulphides, with minor base-metal sulphides from a 370m down-hole depth, indicating a potential position proximal to the limit of the Kate Lens mineralisation in the northern direction towards D Lens.
• WNDD0020 intersected a number of zones containing VMS-related moderate to intense sericite, quartz, pyrite alteration within the Woodlawn Volcanics, including a number of narrow (>1m) zones of remobilized zinc mineralisation (sphalerite) in quartz veins.

DHEM is planned for both these holes to identify potential off-hole conductors.

The results from the drilling program support Mineral Resource modelling, providing a key input into the Preliminary Economic Assessment due to be released in the first-half of 2015.

Full details of all holes drilled and assay results to date are provided in Tables 1 and 2 at the end of this report. The total diamond metres for the first phase program was 7,613m in 20 holes. In addition, some 770m of diamond drilling in 11 holes was undertaken for geotechnical assessment of the decline access route, which has now also been finalized.

About Heron Resources Limited:

Heron is engaged in the exploration and development of base and precious metal deposits in Australia. Heron’s projects include the high grade Woodlawn Zinc-Copper Project located 250km southwest of Sydney, New South Wales, and the Kalgoorlie Nickel Project located north of Kalgoorlie, Western Australia. In addition the Company holds a number of other high quality exploration properties located in the Lachlan Fold Belt, New South Wales.

For further information, please visit www.heronresources.com.au or contact:
Australia:
Mr Wayne Taylor, Managing Director and Chief Executive Officer:
Tel: +61 8 9215 4444
Email: heron@heronresources.com.au
Canada:
Tel: +1 905 727 8688 (Toronto)

Technical Information

Notes: WMG = Woodlawn Mine Grid

Notes: True width is an estimate of the actual thickness of the intercept based on interpreted lens orientation (approximately 80% of downhole width); grades are weighted average grades, weighted by length of samples intervals downhole, which are nominally 1 metre. No weighting was applied for differences in specific gravity. * Previously reported results.

Compliance Statement (JORC 2012 and NI43-101)

The technical information in this news release relating to the exploration results at the Woodlawn Project is based on information compiled by Mr David von Perger, who is a Member of the Australian Institute of Mining and Metallurgy (Chartered Professional – Geology). Mr von Perger is a full time employee of Heron Resources Ltd. and has sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results and “qualified person” as this term is defined in Canadian National Instrument 43-101 (“NI 43-101”). Mr von Perger has reviewed this press release and consents to the inclusion in this news release of the information in the form and context in which it appears.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

This news release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian securities laws, which are based on expectations, estimates and projections as of the date of this news release. This forward-looking information includes, or may be based upon, without limitation, estimates, forecasts and statements as to management’s expectations with respect to, among other things, the timing and amount of funding required to execute the Company’s exploration, development and business plans, capital and exploration expenditures, the effect on the Company of any changes to existing legislation or policy, government regulation of mining operations, the length of time required to obtain permits, certifications and approvals, the success of exploration, development and mining activities, the geology of the Company’s properties, environmental risks, the availability of labour, the focus of the Company in the future, demand and market outlook for precious metals and the prices thereof, progress in development of mineral properties, the Company’s ability to raise funding privately or on a public market in the future, the Company’s future growth, results of operations, performance, and business prospects and opportunities. Wherever possible, words such as “anticipate”, “believe”, “expect”, “intend”, “may” and similar expressions have been used to identify such forward-looking information. Forward-looking information is based on the opinions and estimates of management at the date the information is given, and on information available to management at such time. Forward-looking information involves significant risks, uncertainties, assumptions and other factors that could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking information. These factors, including, but not limited to, fluctuations in currency markets, fluctuations in commodity prices, the ability of the Company to access sufficient capital on favourable terms or at all, changes in national and local government legislation, taxation, controls, regulations, political or economic developments in Canada, Australia or other countries in which the Company does business or may carry on business in the future, operational or technical difficulties in connection with exploration or development activities, employee relations, the speculative nature of mineral exploration and development, obtaining necessary licenses and permits, diminishing quantities and grades of mineral reserves, contests over title to properties, especially title to undeveloped properties, the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other geological data, environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding, limitations of insurance coverage and the possibility of project cost overruns or unanticipated costs and expenses, and should be considered carefully. Many of these uncertainties and contingencies can affect the Company’s actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Prospective investors should not place undue reliance on any forward-looking information. Although the forward-looking information contained in this news release is based upon what management believes, or believed at the time, to be reasonable assumptions, the Company cannot assure prospective purchasers that actual results will be consistent with such forward-looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither the Company nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. The Company does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law.

No stock exchange, regulation services provider, securities commission or other regulatory authority has approved or disapproved the information contained in this news release.

To view Appendix 1 – JORC 2012 Tables 1 / 2 as a PDF file, click onto the following link: http://www.fscwire.com/sites/default/files/news_release_pdf/heron02172015.pdf.

For Heron Resources Limited
Australia:
Mr Wayne Taylor, +61 8 9215 4444
Managing Director and Chief Executive Officer
heron@heronresources.com.au
or
Canada:
+1 905 727 8688 (Toronto)