Ann: Exploration Update - Barlee Gold Project, page-3

Segue Resources Limited (Segue or the Company) is pleased to provide an update on the soil sampling programme underway at the Barlee Gold Project in the Southern Cross Region of Western Australia (Figure 1). Soil sampling is being undertaken on a 400m x 100m grid over the 14 gold targets identified through previous BLEG gold and pathfinder element sampling (Figure 2) (see announcement on 29 March 2017). Figure 1: Project location map Figure 2: Project tenement map and exploration target areas Soil sampling has been completed over the T1 – T4 targets with the remaining target areas expected to be completed by the end of May. Multi‐element assay results have been received from the T1 area with soil values of 0.6 g/t Au (600ppb Au), 0.46g/t Au (460ppb Au) and 0.33g/t (330ppb Au) over three discrete gold prospects. Assay results from the T2 – T4 target areas are expected to be received within two weeks. ASX Code: SEG Page 2 The T1 target area occurs in the Evanston Greenstone Belt which has been deformed by the crustal scale Evanston Shear Zone and sits immediately along strike from the historic Evanston Gold Mine and Rainy Rocks prospector workings. Initial soil sampling at the T1 area has delineated three extensive gold anomalies with associated pathfinder elements indicative of an orogenic gold system (Table 1 & Figure 3). Table 1: T1 target area – gold prospects and associated pathfinder elements Prospect Dimensions Pathfinders Present T1a 4.5km x 1.0km Ag, As, Bi, Cd, Cu, Mo, Pb, Te, W, Zn T1b 4.5km x 1.2km As, Bi, Mo, Pb, Sb, Te, W, Zn T1c 1.5km x 0.5km As, Mo, Sb Figure 3: T1a-c prospects within the T1 target area, including rock chips results Page 3 The gold anomalies are further supported by the presence of pathfinder elements consistent with orogenic gold systems. The presence of these elements indicates that the prospects within T1 have undergone hydrothermal alteration by a potentially gold bearing fluid. The coincidence and zonation of W‐Mo‐Bi with As‐Sb indicates the mixing of oxidised and reduced fluids within the T1 project area which can be a significant contributor to gold precipitation (Figure 4). Figure 4: A model for Orogenic Gold after Halley and Tunjic (2006) While undertaking the soil sampling programme at the T1a prospect, Segue collected five rock chips approximately 2km south‐west of the Rainy Rocks prospect. Three of the rock chips returned significant gold mineralisation including 22.6g/t Au, 9.13g/t Au and 7.37g/t Au. These rock chips results together with previous samples from the Rainy Rocks prospect (including 23.7g/t Au) confirm the high‐grade nature of mineralisation in this region (see announcement on 23 November 2016). After a short weather delay, the soil sampling programme has recommenced over target areas T5 – T14 and is expected to be finished by the end of May. Segue plans on commencing the second phase of infill soil sampling (200m x 50m) over priority gold prospects in June. Subject to the granting of exploration licences and regulatory approvals being received, Segue is anticipating commencing first pass drilling at the Barlee Gold Project in July 2017.