Ann: Exploration Update, page-3

DRILLING AND ASSAY UPDATE

Highlights:
• Diamond drilling commenced at Ema with 5 holes completed
• Updated assay timetable

Brazilian gold explorer, BBX Minerals (ASX: BBX or “the Company”) is pleased to provide the following exploration and assay update.

BBX has completed 5 diamond drill holes, totalling 525.5 metres at the Ema prospect (see fig 1) that do not require environmental approval. All five holes drilled to date passed through a zone of intense lateritic weathering, comprising largely kaolin and lesser quartz, into an unweathered, hydrothermically altered igneous rock containing rounded glassy quartz grains and feldspars largely altered to kaolin. Sampling of the first three holes has been completed and the samples submitted to SGS for analysis. Drilling is continuing in areas which do not require environmental approval.

Environmental Licence
The Company is yet to receive environmental licences for the proposed trial mining and the
diamond drilling programme which requires the approval. Discussions with the state
environmental authority, IPAAM have indicated that the delay is mainly bureaucratic and BBX
has no reason to believe that the licences will not be issued.

Assay Programme
As detailed in BBX’s announcement dated 25 October 2017, extraction testing/assaying of the
10m x10m small bulk samples from Três Estados and Ema is currently in progress and results
will be released on receipt.

The timeline below outlines the various steps involved in sampling, transporting, preparing and
assaying the samples. The Company’s initial estimate on the announcement of assay results in
late October/early November has been impacted by delays in all of the above steps and by
holidays in Brazil.

In light of the extended period during which BBX´s shares have been suspended, the Company
had considered shortening the leach period prior to smelting of the bulk samples to approximately
14 days. The leach period was, however, eventually extended to 30 days to replicate as closely
as possible the leaching time of the samples the subject of the 14 August announcement. Results
are now expected by the end of November.

Sampling and assay timeline:
20th September – Announcement on the ASX of BBX´s intention to sample six 10 x10m
outcrop areas at Três Estados and Ema, to be treated using the same process as the samples
subject of the announcement dated 14 August 2017.

22nd September – Commencement of sample collection at Três Estados and Ema including
logging and recording of co-ordinates of each individual rock sample comprising the six bulk
samples.

28th September – Collection of surface samples finalised, and samples bagged and sealed
for transportation to SGS in Belo Horizonte

29th September – Samples transported to Belo Horizonte – approx. 8 days (700km journey
by unsealed road to Itaituba then air freight to Belo Horizonte) (note rock samples cannot
travel on commercial aircraft in Brazil).

7th October – Samples received by SGS to be crushed and milled to -150 mesh and prepared
for despatch to refinery (over 40kgs of material required to be crushed and pulverised using
laboratory scale equipment).

16th October – Samples sent by courier to Marcelo da Silva Pinto refinery, Rio de Janeiro,
addressed to the refinery manager

18th October – Samples received at refinery for processing /refining

19rd October – Leaching of samples commenced.

17th November – termination of leaching at Marcelo da Silva Pinto refinery after 30 days
leaching and extraction commenced to produce buttons for assay.