Ann: Option Agreement for Joint Venture Signed, page-2

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EXCLUSIVE OPTION AGREEMENT SIGNED WITHKENNECOTT EXPLORATION COMPANY FOR AJOINT VENTURE ON BERENGUELA PROJECTThe Board of Valor Resources Limited (“VAL” or the “Company” is very pleased toannounce the signing of a joint venture Option Agreement with KennecottExploration Company (“KEX”, part of the Rio Tinto group, in respect of theBerenguela copper-silver-manganese project in south-eastern Peru (”Project”,endorsing the potential value of the project.HIGHLIGHTSThe key terms of the agreement are:• KEX to pay US$700,000 prior to February 2019 to cover the due instalmentpayable to SSR Mining Inc (“SSR”;• KEX to actively spend US$2 million on exploration expenditure on theProject over the next 12 months (“Initial Expenditure”. During this time,KEX will be solely responsible for designing and implementing theexploration program. Any assistance required from VAL will be reimbursedat cost plus 10%;• Following the satisfaction of the Initial Expenditure, KEX can exercise anoption to form a 50:50 incorporated joint venture with VAL in respect ofthe Project on payment of an additional US$3 million to VAL (“JV Option”.After the formation of the JV, all costs, management, and decision makingwill be shared pro rata;• Following the JV Option, KEX has a further option to solely fund anadditional US$5 million on the Project within three years to earn anadditional 25% in the joint venture;• VAL cash balance is A$1.9m before receipt of USD $700,000 from KEXwhich is expected to be received shortly.The Company believes that the introduction of KEX as a partner to the Project is asignificant and exciting step forward in its development; in addition to endorsingits current value, it speaks to the highly prospective and exciting developmentpotential of the Berenguela mineral system. As part of the Rio Tinto group, KEXhas access to a depth of exploration and mine development personnel, and accessto the required levels of capital to ensure the Project’s future going forward.