A total of 20 diamond drill (DDH) holes for 7,613m and 11 reverse-circulation (RC) holes for 1,201m were drilled focussing on the Kate Lens, before drilling high-priority targets in other positions. Limited deeper drilling intersected multiple lenses in both the I and D Lens positions (a single 940m deep hole).

Heron believes ample opportunities remain to expand the resource of this large mineralising system above 500m depth and further discoveries in shallow zones reduce the near-term need to drill deeper targets. This will be the focus of the Phase 2 campaign. The key lenses comprising the resource are described in greater detail below and detailed tabulation of drill hole data and assays results are provided at the end of the report.

Geological Setting

Woodlawn is a well-documented historic producer of metals from high-grade, polymetallic volcanogenic massive sulphide deposits which are hosted within the Woodlawn Volcanics of Silurian age. Woodlawn is second only to the world-class Rosebery Tasmania VMS camp in terms of Australian historic VMS production. At Woodlawn, the felsic volcanic sequence hosts multiple stacked lenses of high-grade mineralisation and has intense hydrothermal alteration, as commonly associated with deposits elsewhere in the world.

Following, are descriptions of the major lenses defined and discovered to date within this deposit.

Kate Lens

Ten of the Phase 1 DDH holes targeted the Kate Lens to follow-up the single discovery hole from 2013, and were planned on a nominal 40 x 40m intercept spacing (Figures 1-3). The modelled downhole electromagnetic (DHEM) data suggested the presence of a moderately west-dipping "plate" of conductive material, which proved to be a reliable guide to the discovery of a laterally-extensive zone of massive sulphides Highest polymetallic grades were found towards the centre of the lens, which becomes copper-dominant and semi-massive towards the south, whilst to the north, the massive sulphides are off-set by the 790 Fault system. Seven of the 10 holes drilled into the Kate Lens returned significant high grade results including:

- 14.4m @ 4.6% Zn, 4.1% Cu, 0.8% Pb, 1.0g/t Au, 57g/t Ag from 374m (WNDD0001)
- 8.8m @ 12.6% Zn, 1.6% Cu, 7.5% Pb, 2.3g/t Au,152g/t Ag from 374m (WNDD0002)
- 12.3m @ 20.0% Zn, 2.1% Cu, 6.1% Pb, 0.8g/t Au, 53g/t Ag from 414m (WNDD0007)
- 8.1m @ 7.2% Zn, 1.1% Cu, 2.3% Pb, 0.9g/t Au, 28g/t Ag from 309m (WNDD0009)

Figure 4 shows representative core photos of the massive sulphide mineralisation in the Kate Lens. While the Kate Lens has been delineated along strike by the Phase 1 drilling, a number of extensional positions remain open and are a high priority target for the Phase 2 drilling.

I Lens

Three DDH holes were drilled into the I Lens position. Two holes intersected minor sulphides in the expected position of the lens; however modelling of DHEM data suggests the main lens may pass between these two DDHs, and thus remains an untested target. One DDH intersected the projected down-plunge position of the lens and returned two intercepts suggesting the lens has bifurcated into an upper high-grade zone, and a lower low-grade zone some 50m below:

- 5.6m @ 13.3% Zn, 0.7% Cu, 5.4% Pb, 1.2g/t Au, 26g/t Ag from 626m (WNDD0006)
- 4.0m @ 4.8% Zn, 0.5% Cu, 0.2% Pb, 14g/t Ag from 679m (WNDD0006)

The new intercepts, combined with well-defined DHEM modelled plates, provide further support for a significant down plunge extension to the I Lens originally identified in the TriAusMin 2012 and 2013 drilling.

G Lens

Five DDH holes intersected the main part of G Lens (Figure 5). The results confirm the high-grade nature of the lens and support the potential for thicker zones of mineralisation in what is thought to be a keel-shaped structure towards the centre of the lens (Figure 5). Key results include:

- 8.0m @ 3.6% Zn, 1.3%Cu, 2.6% Pb, 1.0g/t Au, 65.4g/t Au from 37m WNRC0010
- 14.8m @ 5.4% Zn, 2.7% Cu, 2.0% Pb 1.2g/t Au, 49g/t Ag from 198m WNDD0009
- 4.4m @ 4.1% Zn, 3.2% Cu, 0.9% Pb, 0.5g/t Au, 39g/t Ag from 206m WNDD0010
- 9.3m @ 6.4% Zn, 3.2% Cu, 2.8% Pb, 2.4g/t Au, 151g/t Ag from 76m WNDD0013
- 2.1m @ 3.1% Zn, 6.5% Cu, 1.3% Pb, 1.2g/t Au, 146g/t Ag from 61m WNDD0014

The G Lens has shown strong potential for up and down-dip extensions to mineralisation and is a high-priority target for Phase 2 drilling.

Lisa Lens

Two DDH holes tested the along-strike continuity from two older DDH holes which recorded Cu-rich intercepts in the stratigraphic plane of the I Lens (Figure 4). The historical holes recorded:

- 4.0m @ 4.9% Zn, 2.8% Cu, 2.3% Pb, 0.8g/t Au and 25g/t Ag from 266m (W089)
- 4.0m @ 2.0% Cu from 234m (W145)

One DDH intersected high-grade polymetallic mineralisation - the new "Lisa Lens":

- 4.2m @ 17.7% Zn, 1.6% Cu, 5.0% Pb, 1.1g/t Au, 28g/t Ag from 246m (WNDD0015)

The Lisa Lens represents the discovery of a new high-grade lens and further drilling is being planned to delineate this position. Modelling of DHEM data suggest the presence of a strong conductor down-plunge and to the north of this intercept, and provides an immediate drill target.

D Lens

The D Lens was intersected in the following significant intercepts:

- 8.1m @ 3.0% Zn, 2.3% Cu, 3.1% Pb, 2.6g/t Au, 68.8g/t Ag from 699m (WNDD0006)
- 10.0m @ 1.6% Zn, 1.7% Cu, 0.2% Pb, 0.2g/t Au, 15g/t Ag from 759m (WNDD0006)
- 9.5m @ 3.8% Zn, 1.6%Cu, 0.3% Pb, 0.8g/t Au, 17g/t Ag from 254m (WNDD0017)

At the present time, D Lens is not a high-priority target; however, these intercepts confirm previous drilling interpretations.

E Lens

As with the D Lens, E Lens was not a high-priority for the Phase 1 drill program, however, a strong off-hole DHEM conductor provided a robust target that was tested and returned the following high-grade result in the up-dip E Lens positon:

- 4.2m @ 14.8% Zn, 2.2% Cu, 6.2% Pb, 0.7g/t Au, 37g/t Ag from 135m (WNDD0012)

This confirmed continuity between parts of the E Lens which were previously thought separate and expands the resource base in this relatively shallow position.

A Lens

The interpreted up-dip projection of the A Lens was targeted by the early round of RC drilling; however the campaign did not intersect significant massive sulphides due to a post-mineral dolerite stoping out the VMS horizon. Similarly, there were limited DHEM targets generated from these RC holes, so it is interpreted that the lens pinched-out in this area. However, a subtle off-hole response in the DHEM data was returned from the down-plunge position of the A Lens and this will be assessed during the Phase 2 program.

Other Lenses

The B, C, F and H Lenses were not targeted in Phase 1 drilling; however, all have strong potential for down-plunge extensions and will be considered for subsequent drill programs. These deeper targets, particularly on the B Lens, did not fall within the objective of defining resources in the upper 500m at Woodlawn.

Towards the end of Phase 1, a single hole was drilled into the interpreted southern extent of the Woodlawn system, to test at-depth mineralisation (intersected in W024), which returned 15.7m at 8.7% Zn, 2.6% Pb, 0.9% Cu, 1.0 g/t Au, 71 g/t Ag (Figure 3). This single DDH (WNDD0020) intersected a number of broad zones of strong alteration, with assays up to 1.0% Zn over 3m; however it did not intersect significant massive sulphides. DHEM data was collected and returned a broad anomaly, from 320-460m depth, which modelling suggests is related to a an off-hole conductor beyond the end of this hole. Further assessment of this anomaly is being undertaken to determine whether it relates to massive sulphides in the footwall to the C Lens.

Forward Program and Mineral Resource Estimate

The Phase 1 drilling program at Woodlawn demonstrated the potential to extend and delineate relatively shallow (

DHEM and Other Drill Targets

The DHEM surveys and modelling undertaken as part of the Phase 1 program continue to demonstrate the utility of this method to predict extensions of known mineralisation (eg. Kate Lens) and to identify new positions for drill testing. Several off-hole conductors identified in the Phase 1 program remain to be drilled and suggest that many of the lenses can be extended beyond the limits of current drilling. A number of more conceptual targets also remain to be tested in a similar fashion to the Lisa Lens target where there are gaps in the earlier drilling along know mineralised trends.

Metallurgical Samples and Geotechnical Data

A critical path outcome from the Phase 1 drilling program was the collection of fresh massive sulphide material for metallurgical test work. This material facilitated the first test work to be undertaken on Woodlawn mineralisation since the mine closure in 1998. This test work was successful in demonstrating improved recovery performance to better quality products than that achieved during previous operations (Press Release, 11 February 2015), and also provided confirmation for the combined treatment of a tailings (Woodlawn Retreatment Project) and underground (Woodlawn Underground Project) ores through a single processing facility.

Each DDH was geotechnically logged, building a vital dataset for rock quality assessment which provides the basis for evaluating underground mining methods and ground support, such as cemented paste fill. This is expected to result in the application of mining methods that provide higher productivities and higher resource recoveries.

Preliminary Economic Assessment (PEA)

The Phase 1 drilling program has provided initial input data and information for the Woodlawn PEA. The PEA is well advanced and the results from this study are expected to be released in the coming weeks. Following the study release it is anticipated that the Company will move forward with a feasibility study covering the combined development of the Woodlawn tailings and underground projects. The feasibility study is expected to take 12 months to complete and will incorporate the Phase 2 drilling program. The Woodlawn Project continues to advance towards production and the delivery of zinc (and other) base metals concentrates into a market forecast to be in a supply deficit.

About Heron Resources Limited:

Heron is engaged in the exploration and development of base and precious metal deposits in Australia. Heron's projects include the high grade Woodlawn Zinc-Copper Project located 250km southwest of Sydney, New South Wales, and the Kalgoorlie Nickel Project located north of Kalgoorlie, Western Australia. In addition the Company holds a number of other high quality exploration properties located in the Lachlan Fold Belt, New South Wales.

For further information, please visit www.heronresources.com.au or contact:

Australia:

Mr Wayne Taylor, Managing Director and Chief Executive Officer:
Tel: +61 8 6500 9200
Email: heron@heronresources.com.au
Canada:
Tel: +1 905 727 8688 (Toronto)

Figure 1 (top): Cross section through the Woodlawn underground lenses looking north. Figure 2 (bottom): Long-section looking east for the Kate Lens showing recent drilling and modelled DHEM plate.

Figure 3: Plan overview of the Woodlawn Lenses showing pit and existing underground decline.

Figure 4: Drill core photographs from WNDD0001 (378.9m to 389.1m) showing an example of a mineralised intercept from the Kate Lens. The fine-grained black minerals are predominantly galena (lead sulphide) and sphalerite (zinc sulphide), whereas the yellow minerals are a mixture of pyrite (predominantly) and chalcopyrite (copper sulphide).

Figure 5: Long Section of the G Lens showing historical and recent drill results

Technical Information

Table 1: Drill hole details for diamond drill holes relevant to this update

Notes: WMG = Woodlawn Mine Grid

Table 2: Details of massive sulphide intercepts and reported grades from current Heron campaign

Notes: True width is an estimate of the actual thickness of the intercept based on interpreted lens orientation (approximately 80% of downhole width); grades are weighted average grades, weighted by length of samples intervals downhole, which are nominally 1 metre. No weighting was applied for differences in density apart from hole WNDD0016 where there was considerable variability of the density measurements making it relevant to apply such a weighting. * Previously reported results.

Compliance Statement (JORC 2012 and NI43-101)

The technical information in this news release relating to the exploration results at the Woodlawn Project is based on information compiled by Mr David von Perger, who is a Member of the Australian Institute of Mining and Metallurgy (Chartered Professional - Geology). Mr von Perger is a full time employee of Heron Resources Limited and has sufficient experience, which is relevant to the style of mineralization and type of deposit 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 and "qualified person" as this term is defined in Canadian National Instrument 43-101 ("NI 43-101"). Mr von Perger has reviewed this press release and consents to the inclusion in this news release of the information in the form and context in which it appears.

CAUTIONARY NOTE REGARDING FORWARD-LOOKING INFORMATION

This news release contains forward-looking statements and forward-looking information within the meaning of applicable Canadian securities laws, which are based on expectations, estimates and projections as of the date of this news release. This forward-looking information includes, or may be based upon, without limitation, estimates, forecasts and statements as to management's expectations with respect to, among other things, the timing and amount of funding required to execute the Company's exploration, development and business plans, capital and exploration expenditures, the effect on the Company of any changes to existing legislation or policy, government regulation of mining operations, the length of time required to obtain permits, certifications and approvals, the success of exploration, development and mining activities, the geology of the Company's properties, environmental risks, the availability of labour, the focus of the Company in the future, demand and market outlook for precious metals and the prices thereof, progress in development of mineral properties, the Company's ability to raise funding privately or on a public market in the future, the Company's future growth, results of operations, performance, and business prospects and opportunities. Wherever possible, words such as "anticipate", "believe", "expect", "intend", "may" and similar expressions have been used to identify such forward-looking information. Forward-looking information is based on the opinions and estimates of management at the date the information is given, and on information available to management at such time. Forward-looking information involves significant risks, uncertainties, assumptions and other factors that could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking information. These factors, including, but not limited to, fluctuations in currency markets, fluctuations in commodity prices, the ability of the Company to access sufficient capital on favourable terms or at all, changes in national and local government legislation, taxation, controls, regulations, political or economic developments in Canada, Australia or other countries in which the Company does business or may carry on business in the future, operational or technical difficulties in connection with exploration or development activities, employee relations, the speculative nature of mineral exploration and development, obtaining necessary licenses and permits, diminishing quantities and grades of mineral reserves, contests over title to properties, especially title to undeveloped properties, the inherent risks involved in the exploration and development of mineral properties, the uncertainties involved in interpreting drill results and other geological data, environmental hazards, industrial accidents, unusual or unexpected formations, pressures, cave-ins and flooding, limitations of insurance coverage and the possibility of project cost overruns or unanticipated costs and expenses, and should be considered carefully. Many of these uncertainties and contingencies can affect the Company's actual results and could cause actual results to differ materially from those expressed or implied in any forward-looking statements made by, or on behalf of, the Company. Prospective investors should not place undue reliance on any forward-looking information. Although the forward-looking information contained in this news release is based upon what management believes, or believed at the time, to be reasonable assumptions, the Company cannot assure prospective purchasers that actual results will be consistent with such forward-looking information, as there may be other factors that cause results not to be as anticipated, estimated or intended, and neither the Company nor any other person assumes responsibility for the accuracy and completeness of any such forward-looking information. The Company does not undertake, and assumes no obligation, to update or revise any such forward-looking statements or forward-looking information contained herein to reflect new events or circumstances, except as may be required by law.

No stock exchange, regulation services provider, securities commission or other regulatory authority has approved or disapproved the information contained in this news release.

Appendix 1 - JORC 2012 Table 1

Section 1 Sampling Techniques and Data

(Criteria in this section applies to all succeeding sections)

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

SOURCE: Heron Resources Limited