Mustang Resources Ltd.: Scoping Study underway on Caula Vanadium-Graphite Project

Sydney - Mustang Resources (ASX:MUS) (FRA:GGY) (OTCMKTS:MTTGF) is pleased to announce that its strategy to develop the Caula Vanadium-Graphite Project in Mozambique is well on track with the appointment of highly regarded specialists Bara International to undertake the Scoping Study.

Key Points

- Highly regarded specialists Bara International appointed to undertake the Caula Vanadium-Graphite Scoping Study

- Scoping Study expected to be completed by end-July 2018, putting the project on track for production and cashflow by mid-2019

- Key impending results and milestones for Caula include:

o Imminent return of all graphite and vanadium assays from the 2017 scoping study drilling campaign

o Initial graphite and vanadium ore-sorting and ore upgrade results - expected early June 2018

o Additional metallurgical test work on graphite and first vanadium metallurgical results - expected in June 2018

o Maiden JORC compliant vanadium resource based on the combined 2016 and 2017 scoping study drilling results - expected by end-June 2018

o Updated JORC Compliant graphite Resource estimate - expected by end June 2018

o Completion of the geological resource model and conceptual mine design for an integrated vanadium and graphite processing plant - expected July 2018

o Commencement of Definitive Feasibility Study (DFS) work program

Bara is an engineering consultancy based in Johannesburg, South Africa with extensive experience in African graphite and vanadium.

Mustang Managing Director Dr. Bernard Olivier said: "This appointment is another key step in our strategy to be in production at Caula by the middle of next year.

"We have multiple workstreams underway to deliver a maiden vanadium JORC Resource and an upgraded graphite resource along with metallurgical testing for an integrated vanadium and graphite processing flowsheet. We are also awaiting the results of ore-sorting testwork in Australia."

1) Vanadium and graphite assay results

Vanadium and graphite sample analysis on the remaining 3 drillholes from the 2017 scoping study drilling campaign is currently being completed by SGS South Africa with final results expected within the next two weeks. Once received, the project's 'competent person' will immediately finalise the incorporation of the results into the geological and resource model and enable the estimation of the maiden JORC complaint vanadium Resource as well as an upgraded JORC compliant graphite Resource.

2) Ore sorting testwork and results

Mustang dispatched initial Caula core samples to TOMRA Sorting Solutions in Castle Hill, Australia for trial ore sorting test work to determine the suitability of Caula's ore for upgrading through the application of its proprietary technology. Once the initial results are received, an ore sorting testwork campaign will be conducted.

3) Metallurgical testwork

Dual metallurgical testwork is currently well advanced with IMO and Nagrom Laboratories in Perth, Australia. The outcome of these studies will seek to confirm the graphite metallurgy and processing flowsheet as well as provide the Company with more information on the extraction of vanadium from the mica-roscoelite minerals contained in the Caula ore. The Company expects initial results to be available before mid-June 2018.

4) Maiden Vanadium JORC Inferred & Indicated Resource

Following the receipt of the outstanding assay results from SGS and the completion of metallurgical testing, the 'competent person' will estimate a maiden vanadium JORC Inferred & Indicated Resource for Caula. The Company expects this to be completed and announced to the market by the end of June 2018/start of July 2018.

5) Upgraded Graphite JORC Inferred Resource

In conjunction with the maiden JORC complaint inferred vanadium Resource, the Company's 'competent person' will also complete an upgraded JORC Inferred Resource for the Caula graphite Resource (refer ASX release 1 December 2017 "Maiden Inferred Mineral Resource estimate Caula Graphite") which, owing to the 11 additional DD holes drilled in December 2017, is expected to increase the maiden 5Mt @ 13% TGC estimate significantly. The upgraded JORC Resource is also expected by end-June 2018.

6) Scoping study: mine design and integrated vanadium-graphite processing plant design The above milestones are all integral components of the Caula scoping study expected to be finalised by end-July 2018 with the goal of providing initial economic parameters for an integrated vanadium and graphite processing plant with a staged deployment as described in detail in the ASX Announcement dated 21 March 2018.

7) Definitive Feasibility Study ("DFS") campaign

Initial work that forms part of the DFS has commenced. The DFS study will require additional drilling using a combination of reverse circulation (RC) and diamond drilling (DD) to upgrade the JORC Resource. The Company is also planning to extract a large bulk sample for export to China which will enable additional large scale metallurgical and plant design testwork, as well as produce concentrate for trial marketing. The Company is targeting completion of the DFS by end of calendar 2018.

The Company remains committed to delivering first vanadium and graphite cashflow from the stage 1 development of Caula by H1-2019.

About Mustang Resources Ltd:

Listed on the Australian Securities Exchange, Mustang Resources Ltd. (ASX:MUS) (FRA:GGY) is an emerging gemstone developer and producer focused on the near-term development of the highly prospective Montepuez Ruby Project in northern Mozambique.

The Montepuez Ruby Project consists of three licences and now one mining concession covering 19,300 hectares directly adjacent to the world’s largest ruby deposit discovered by Gemfields Plc in 2012. Since supply of rubies from sources outside Mozambique has become fractured and unreliable, Mustang stands to capitalise on the current high demand around the world for ethically produced rubies by becoming a reliable, consistent supplier of high-quality rubies.

The Company is currently fast-tracking its work program on the Montepuez Ruby Project with extensive secondary deposits discovered and low-cost bulk sampling well underway. First rough ruby sales are scheduled for 27 to 30 October 2017 in Port Louis, Republic of Mauritius under a closed bid tender of more than 350,000 cts gem quality rubies.

Visit the Mustang website at http://www.mustangresources.com.au for more information.



Contact:

Mustang Resources Ltd.
Managing Director: Bernard Olivier
bernard@mustangresources.com.au
+61 (0) 408 948 182
+27 (66) 4702 979

Media & Investor Relations:
Paul Armstrong
paul@readcorporate.com.au
+61 (0) 8 9388 1474