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1 ABN: Level 1, 37 Ord Street, West Perth WA 6005 Phone: +61 (0) Website: ASX Release 28 November 2012 EXPLORATION UPDATE LACHLAN FOLD BELT and ALBANY FRASER MOBILE ZONE is pleased to provide an update for its Lachlan Fold Belt copper-gold exploration, including new tenement applications near Gundagai NSW, and initial field work from the Albany Fraser Mobile Zone at Bedonia and Rocky Gully, WA. ASX:HRR Issued Shares 253M Share Price $0.195 Market Cap $49M Cash $42M as at 27 November 2012 Lachlan Fold Belt Initial reconnaissance drilling confirms presence of mineralising copper and gold systems with anomalous assays returned. New applications for gold exploration tenements near Gundagai NSW, with recent sampling identifying potential for high-grade gold in epithermal style quartz veins. Albany Fraser Mobile Zone Initial soil auger sampling completed at Bedonia nickel-copper project, results awaited, aiming to optimize drill testing of previously defined airborne EM conductors. Surface EM surveys commenced at the Rocky Gully nickel-copper project. LACHLAN FOLD BELT Girilambone Copper-Gold Project Reconnaissance reverse circulation (RC) drilling (7 holes for 1,270m) was completed at four target areas to test various geological and geophysical features and gain a better understanding of the local geology (Figure 1). Key conclusions are described as follows: Target 1 Three holes were drilled to test a surface gossan zone adjacent to a discrete magnetic anomaly and where historic wide spaced RAB drilling had returned anomalous gold intercepts. The Heron drilling confirmed the presence of anomalous gold 75ppb gold from 16m depth in GBRC001), hosted by strongly sericite, carbonate, chlorite and silica altered Girilambone Bed meta-sediments. The assay and geological results confirm that a mineralising system is present at this prospect and Heron has now taken a step back to better test the broader area. A soil auger geochemical program has recently been completed and the area geologically mapped in detail. This work will then form the basis for a future program of RC drilling. Figure 1 Girilambone Project Initial Target Areas
2 Target 4 Hole GBRC005 was drilled at this target to test a subtle EM conductor adjacent to a larger magnetic anomaly. Again strong sericite, chlorite and carbonate alteration was observed with disseminated sulphides. Individual 1m samples of the sulphidic zones returned up to 1,080ppm copper which indicates the potential for copper mineralisation in this area. A thin graphite shear zone intersected in the hole is thought to be the cause of the original EM anomaly, however downhole EM surveying has identified the presence of an off-hole conductor that also requires further drill assessment. As with Target 1, Heron is now taking a step back and assessing the broader area through a program of detailed auger soil sampling prior to conducting further drilling. In particular, the auger soil sampling is being undertaken south of Target 4 to test a structural target identified in the aeromagnetic data. RC drilling at Target 2 was designed to test various magnetic and geochemical anomalies but failed to return any significant assay results. At this stage no further work is planned for Target 2. Coolabah Target An auger soil program has been finalized at Coolabah now that land ownership has been clarified. The target zone covers the interpreted Avoca Tank Extensions to the northwest. Gundagai Gold Project The Company is targeting the regional Lachlan Fold Belt on the basis of recent exploration successes at Mallee Bull by Peel Mining and Avoca Tank-Kurrajong by Straits Resources, and has recently established a systematic tenement monitoring system to acquire new land positions in the Lachlan Fold Belt. The Gundagai tenement applications (Figure 2) cover some 280 square kilometres located 315 kilometres south-west of Sydney New South Wales within the southern Lachlan Fold Belt. The area consists of northerly trending hills underlain by the slates and other sediments of the Silurian-aged Jakalass Slate Formation intruded by porphyry units, which are often closely associated with the gold mineralisation. Several old gold workings exist in the tenement area with mining dating back to 1842, however there appears to have been very limited modern exploration. The area was last explored for gold around 2004 where results from drilling beneath the old Big Ben workings ( 8 hole aircore program) returned intercepts including 4.25g/t gold from 20m depth (Golden Cross Resources Ltd quarterly report t o the ASX, 30 July 2004). Figure 2 Project Location Map showing the Company s key NSW projects Recent reconnaissance work by Heron in the area has identified gold targets through panning of the crushed quartz veins sourced from a number of the old working (Figure 4 to 6). The quantity of panned gold recovered from these samples indicates potential for high-grade epithermal quartz lodes (Figure 7). Rock chip grab samples assayed by the Company returned a maximum grade of 2.04g/t gold from quartz waste rock from the Old Gundagai workings, and a maximum of 0.32g/t gold from a quartz vein in altered porphyry at the Big Ben workings. Minimal modern follow-up work appears to have been completed and there is scope to find high grade lodes with systematic mapping, surface sampling and targeted drilling. Additionally, the Jackalass Slate Formation appears to have all the characteristics of a Volcanogenic Massive Sulphide (VMS) target, being a distal sulphidic shale unit, so the potential for copper mineralisation is being assessed. 2
3 Albany Fraser Mobile Zone Bedonia Nickel-Copper Project At the Company s Bedonia project, located 60 kilometres west southwest of the Sirius Resources NL Nova nickelcopper discovery, auger soil sampling has been completed over high priority magnetic and airborne electromagnetic (EM) targets (reported previously 22 October 2012). The sampling is aimed at prioritizing airborne EM conductors ahead of surface EM surveys and RC drill testing. Rocky Gully Nickel-Copper Project At Rocky Gully, 85 kilometres north-west of Albany, a ground based EM survey has commenced to directly target nickelcopper sulphide bodies associated with mafic/ultramafic intrusions in the area. Ian Buchhorn Managing Director For further information: Ian Buchhorn Paul Downie The information in this report that relates to Exploration is based on information compiled by David von Perger who is a Member of the Australasian Institute of Mining and Metallurgy. David von Perger is a full time employee of. David von Perger has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration, and to the exploration activity that he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. David von Perger has consented to the inclusion in this report of the matters based on his information in the form and context that it appears. 3
4 Figure 3 Gundagai Project Tenement outline on Topography Figure 4 Typical rolling topography with old gold workings in foreground 4
5 Figure 5 Photo of gold workings at old Big Ben mine showing late stage strongly phyllic altered porphyry intrusion (white) emplaced into altered sediment country rock Figure 6 Photo of old working - old stope or slot some 4m wide indicating width of the worked high-grade lodes Figure 7 Photo of some of the panned gold from small volumes (~150g) of bucky white quartz vein samples taken from old workings (FOV ~ 10cm), returning bonanza dish grades. Visually similar mullock samples to those shown below assayed at up to 2.04g/t gold. This is a typical epithermal gold outcome, with bonanza grades returned from quite modest in appearance quartz vein material. The bonanza dish grades were only discovered on a subsequent field visit when an accompanying experienced Lachlan prospector alerted Heron to the attractiveness of the Gundagai prospect by dollying his quartz samples, with the stunning results shown below. 5
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