Impact Minerals Limited

ASX ANNOUNCEMENT

Date: 18 September 2014 Number: 365/180914

Impact Minerals Limited (ASX:IPT) is pleased to announce that it will receive $125,000 under the N.S.W. State Government's Co-operative Drilling Funding Programme to help fund the forthcoming drill programme at the Broken Hill Nickel-Copper-PGE Joint Venture Project located 15 km south of Broken Hill.

The Co-funding initiative, awarded on a dollar-for-dollar basis for direct drilling costs, has been designed to encourage innovative exploration and prioritised high quality, technically and economically sound proposals that demonstrated either new exploration concepts or the application of new exploration technologies.

Impact's Managing Director, Dr Mike Jones, said "The award of this significant grant by the New South Wales Government further emphasises the highly prospective nature of the Broken Hill Project. The funds will go towards our drill programme at the Red Hill Prospect where we have defined four priority drill targets with very significant and high grade rock chip and soil sampling results.

"In today's climate where every exploration dollar counts, the award of these funds is a credit to our COO, Leo Horn, who successfully secured this funding" said Dr Jones.

Impact is earning an 80% interest in the nickel-copper-PGE rights to the project from Golden Cross Resources Ltd.

The host ultramafic intrusive unit at Red Hill, which outcrops over an area of about 500 sq metres, has a nickel-rich core and copper-precious metal-rich margins (Figure 1 and announcement dated 21 May 2014). This is a common feature in many major nickel-copperprecious metal sulphide deposits around the world.

The centre of the unit is marked by nickel-in-soil values greater than 10,000 ppb and up to 16,100 ppb nickel (MMI digest) that is 100 m wide and 300 m long. This is a priority area for drilling.

Both the western and, in particular, the eastern margins of the unit are marked by copper-in-soil results greater than 2,500 ppb and up to 16,200 ppb copper (MMI digest) that are up to 200 m wide and 600 m long (Figure 1).

Figure 1. Geology and Soil and Rock Chip Results from the Red Hill Prospect.

Within these margins there are a further three priority areas for follow up work that contain greater than 20 ppb platinum+palladium+gold-in-soil results (fire assay) covering several hundred square metres and which contain rock chip samples with high grade nickel, copper and precious metal assays (Figure1):

1. At the Red Hill Shaft, mined to a depth of about 40 m in the early 1900's, grab samples from outcrops around the shaft returned up to 16 g/t platinum, 12.1 g/t palladium, 4.2% nickel, 7.7% copper, 1.3 g/t gold and 221 g/t silver. Rock chip samples from a surface excavation about 50 m long located 100 m to the south of the shaft returned up to 1 g/t platinum, 2.6 g/t palladium, 0.9% nickel, 0.8% copper, 1.8 g/t gold and 3.3 g/t silver.
2. At Simons Find, rock chip samples returned up to 0.7 g/t platinum, 1.7 g/t palladium, 0.4% nickel, 0.1% copper, 1.9 g/t gold and 6.6 g/t silver.
3. In the south east corner of the intrusion, grab samples from weathered rocks associated with some surface diggings returned up to 22% copper, 0.2% nickel, 0.8 g/t gold and 91.1 g/t silver.

The soil geochemistry survey was completed by Impact at a spacing of 50 m by 50 m and submitted for analysis by the MMI partial digest (nickel and copper) and fire assay (platinum, palladium, gold and silver) (see Table 1).

Next Steps

Follow up detailed mapping at scales of 1:500 and 1:1000 as well as further rock chip sampling have recently been completed at Red Hill. The results of this work will be integrated with geophysical data to define specific drill targets. The drilling is scheduled to commence in the last Quarter of 2014 subject to statutory approvals. The documentation for the approvals has been lodged with the relevant government department.

Update on Commonwealth Drill Programme

Impact's maiden drill programme at Commonwealth was completed last week. A significant number of assay results are expected this week with further results to come over the following few weeks.

Dr Michael G Jones
Managing Director

The review of exploration activities and results contained in this report is based on information compiled by Dr Mike Jones, a Member of the Australian Institute of Geoscientists. He is a director of the company and works for Impact Minerals Limited. He has sufficient experience which is relevant to the style of mineralisation and types of deposits 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, Mineral Resources and Ore Reserves (the JORC Code). Mike Jones has consented to the inclusion in the report of the matters based on his information in the form and context in which it appears.

For more information, please visit http://doc.irasia.com/listco/au/impactminerals/press/p140918.pdf.

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