ASX ANNOUNCEMENT Date: 7 June 2016 Number: 473/070616 EXPLORATION - PDF document

ASX ANNOUNCEMENT Date: 7 June 2016 Number: 473/070616 EXPLORATION UPDATE AND PRESENTATION A major drill programme is underway at Impact Minerals Limited ’s (ASX:IPT) 100% owned Commonwealth Project 95 km north of Orange in New South Wales (Figure 1). The programme, which will comprise up to 3,000 m of reverse circulation (RC) and diamond drilling, is testing a significant number of targets that have been identified by Impact at four prospects: the Commonwealth deposit, Silica Hill, Welcome Jack and Doughnut (Figure 1). The targets were identified in geological, geochemical and geophysical data sets collected and compiled over the past 12 to 18 months and in particular as areas of variably overlapping gravity, Induced Polarisation (IP) and soil geochemistry anomalies. The targets are described in detail in announcements dated 5 April, 18 April, 26 April and 5 May 2016. Three diamond drill holes have been completed at Commonwealth South with one in progress at Silica Hill. In addition three reverse circulation drill holes have been completed at Welcome Jack (in addition to several pre-collars for further diamond drill holes). All completed holes have intersected vein and disseminated sulphide mineralisation over widths varying from a few metres up to ten metres and which is visually similar to the precious and base metal mineralisation seen in many previous holes at Commonwealth. First assays are expected in two to three weeks. As previously reported, one hole was designed to test a small EM conductor identified in a previous down hole geophysical survey and interpreted as being possibly caused by massive sulphides. The source of the conductor has not been found and a down hole EM survey will be required. The survey will be completed together with other holes towards the end of the drill programme. Other targets for massive sulphides will be tested in the next two weeks. The drill programme has been delayed for four days because of unsafe work conditions caused by the heavy rainfall that has affected much of eastern Australia. The programme is due to recommence tomorrow. Presentation A presentation is attached that will be given by Impact’s Managing Director at the Proactive Investors lunchtime seminar series in Sydney today and Melbourne tomorrow. 26 Richardson Street West Perth Western Australia 6005 Tel +61 (8) 6454 6666 Facsimile +61 (8) 6454 6667 Email info@impactminerals.com.au www.impactminerals.com.au

Figure 1. Geology and location of the four priority prospects at the Commonwealth Project: Commonwealth, Silica Hill, Welcome Jack and Doughnut. Investment by Squadron Resources Pty Limited The Commonwealth gold-silver-zinc-lead project and also Impact’s Broken Hill platinum-copper-nickel project are part of the investment agreement between Impact Minerals and Squadron Resources Pty Ltd, part of the Minderoo Group which represents the philanthropic and business interests of Andrew and Nicola Forrest (see announcement 17 July 2015). As part of the investment agreement, Squadron at its sole discretion, can invest a further A$1 million into either or both of the projects to earn a 19.9% interest after Impact has spent a combined total of $2.5 million on them. It is anticipated that Impact will meet the $2.5 million expenditure target in the September Quarter 2016. 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.

Investor Update June 2016

Next Steps: 2015 Work Programme

Is this the time?!

Introducing Impact Minerals (ASX:IPT) Capital Structure Listed on ASX November 2006 CASH: $4 million Shares on Issue 789 million Options/Warrants 67.5m unlisted Executive 75.4m unlisted Squadron $2m – Squadron Convertible Note Share Price 2.7¢ Market Cap $21.3m Shareholders Board Position Bunnenberg Family 28% Peter Unsworth Chairman Squadron Resources 6% Dr. Michael Jones Managing Director Directors 7% Dr. Markus Elsasser Non Executive Director Top 20 56% Paul Ingram Non Executive Director Top 50 65% Felicity Gooding Non Executive Director No of Shareholders 1,448 4 4

Impact has 3 projects each with the potential for the discovery of a major mine 5 5

Investment Summary 1. Commonwealth Project (IPT: 100%) • Multi-million ounce gold potential in the Cadia-Ridgeway region (>25 Moz gold and 4 Mt copper) • High grade gold-silver-copper-lead-zinc Inferred Resource of 110,000 eqAu ounces with numerous drill targets identified to expand resource and discover new deposits • Major drill programme in progress to test exciting new targets 2. Broken Hill, NSW (IPT: 100%) • Potential for > 1 million ounces of platinum group metals (PGMs) along a prospective 60 km belt • Highest grade PGM drill assays in Australia and exceptional zinc-lead-silver results all with very high dollar per tonne values • Follow up drilling to commence later in 2016 3. Mulga Tank (IPT: 100%) • Large greenstone belt prospective for multi-million ounce gold and >1 Mt nickel deposits • High grade nickel copper discovered in maiden drill programme in 2014 • Numerous geophysical and geochemical targets for follow up drilling identified 6 6

Squadron Transaction $3 million cash injection August 2015 • $2 million convertible note: 3 year term, interest free, redeemable in shares. • Convertible at the lower of 2.1¢ per share or 80% of the 30 day VWAP. • $1 million placement at 2.1¢ • Impact to spend $2.5 million on Commonwealth and Broken Hill Potential $2 million in Joint Venture funding • Option for Squadron to invest a further $1 million into either or both Commonwealth and Broken Hill, to earn a 19.9% interest Potential $2.3 million investment from option conversion • 71,500,000 unlisted options at 3.25¢ps 7 7

Commonwealth Project Gold-Silver-Base Metals New South Wales Impact 100% 8

Major Copper-Gold Mining Province 9 9

Four Prospects, One System? • Multiple targets over 5 sq kilometres • Potential to be part of one large system 10 10

Inferred Resource Statement Category Tonnes Au ppm Ag ppm Cu% Pb% Zn% Inferred 722,000 2.78 48 0.1 0.6 1.5 722,000 tonnes at 4.5 g/t gold equivalent for 100,000 gold equivalent ounces >1,000 oz gold equivalent per vertical metre from surface Potential very profitable starter pit 11 11

Ore Shoots Open at Depth 12 12

Gravity Survey • Identified Main Shaft • Indicates dense body at depth • Three new targets to west and east • New target Silica Hill 13 13

3D View of Gravity: Commonwealth Depth Extension 14 14

What’s Hiding Under Silica Hill? • Large sulphide-silica alteration system at least 300m thick and 500m long • Significant thick and high grade silver results – possible epithermal feeder zone 15 15

The Big Picture? 16 16

The Big Picture? • Multimillion ounce potential • Recognition of metal-assemblages in soil geochemistry indicating – Porphyry copper-gold similar to Cadia Ridgeway (>$25 billion of metal) • Major breakthrough for Impact • Drilling in progress 17 17

Commonwealth: Major Porphyry Potential? Cu SH Mo SH SH 18 18

Jam at the Doughnut? 19

Wafi-Golpu Analogy (75 Moz Au eq) Zn Au Cu  Look for tasty ‘donuts’ 20 20

Broken Hill Project PGM-Nickel-Copper New South Wales 21

Highest Platinum Grades in Australia • Widespread rare high grade platinum group metals over 40 km belt 3 priority targets: • Red Hill: lmpact discovery of high grade PGE-Cu-Ni • Platinum Springs: previous drill intercept of 52.6 g/t platinum equivalent • Moorkai: High grade rock chip samples over 9 km trend Recent expansion of ground holding to 517 sq km • Impact owns 100% of all licences except EL7390 • Impact has 80% of zinc-lead-silver rights on one licence • Squadron has the right to farm in to two licences (blue) 22 22

High Grade Indeed! 1.2 metres at 4.6 g/t rhodium, 7.2 g/t iridium, 5.6 g/t osmium and 3.1 g/t ruthenium 10.4 g/t platinum, 10.9 g/t gold, 294 g/t (9.5 ounces) palladium (335.8 g/t (10.8 ounces) 6PGE+gold) 7.4% nickel, 1.8% copper and 19 g/t silver 0.6 metres at 11.5 g/t platinum, 25.6 g/t palladium, 1.4 g/t gold 7.6% copper, 7.4% nickel and 44.3 g/t silver 23 23

High Grade Zinc-Silver Drill hole RHD018 returns 1 metre at 26.8% zinc, 2.8% lead, 133 g/t silver (4 ounces); and 1 metre at 21.4% zinc, 0.8% lead and 31.5 g/t silver (1 ounce) within a broader intercept of 5.1 metres at 10% zinc, 0.8% lead, 40.4 g/t silver. First significant assay of Broken Hill-style mineralisation by Impact Follow up drilling required 24 24