Mt Carrington Gold Silver Project Positive Scoping Study

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1 ASX and Media Release: 31 July 2012 Mt Carrington Gold Silver Project Positive Scoping Study White Rock Minerals Ltd (ASX:WRM) has completed a robust scoping study on the Mt Carrington goldsilver project in northern NSW. The study results confirm the potential for a medium scale low cost production profile of 40,000 oz AuEq 1 per year with strong financial returns, based on an estimated capital expenditure of $24M and short payback timeframe of less than 18 months. The results of the study strongly support White Rock s vision of accelerating the development of a gold silver operation at Mt Carrington in the next 18 months, subject to continued positive results from feasibility studies. Highlights: Proposed initial development 40,000oz AuEq 1 per $869 / oz cash cost Capital Costs of $24M (processing plant and mine infrastructure) Undiscounted project value of $68M ($97M pre tax) $40M NPV at a 10% discount rate ($60M NPV pre tax) IRR of 67% (92% pre tax) Capital payback within 18 months 6 year open pit mining operation with production of 107koz gold and 6.9Moz silver 0.8Mtpa floatation and CIL circuit to produce silver gold concentrate and bullion Overall 85% recovery for all deposits Average open pit strip ratio of 2.4 : 1 White Rock Managing Director Mr Geoff Lowe said today, We are extremely pleased with the results of the Scoping Study for Mt Carrington, and it provides confidence that we have the right ingredients for an attractive and financially robust silver gold project. We have the advantages of mining leases with infrastructure already in place which underpins a modest capital expenditure estimate. The current Resource base is amenable to open pit mining, and sighter metallurgical test work has provided a number of viable processing routes. We will now look to undertake a definitive feasibility study next year, and subject to further positive results, press the button on development during 2013 with the aim of production in early The Scoping Study results provide a very healthy starting point for a new operation, but we believe it is just that the starting point. The Drake Volcanic Caldera represents one of the most under explored volcanic belts in Eastern Australia and we will look to accelerate the district exploration program to build a Resource base that supports a sustainable, long term 100,000oz per annum gold equivalent production profile. The recent drilling success reported at the Mozart, Red Rock and Junction Prospects highlights the quality of the target portfolio and increases the likelihood of future Resource additions.

2 Introduction Following the release of the new Resource Estimation for Mt Carrington in February 2012, White Rock engaged independent consultants RMDSTEM Limited to undertake a Scoping Study to determine a preferred mining and processing scenario for the gold / silver Mineral Resource base at Mt Carrington, located 100km west of Lismore in northern NSW. The Mt Carrington project contains Mineral Resources of 0.28Moz gold and 23.3Moz silver, reported in accordance with the JORC (2004) code, and classified as Indicated and Inferred. The Resource base is contained within seven shallow deposits which are either golddominant with subordinate silver and zinc, or silver dominant with subordinate gold and zinc. Minor levels of lead and copper also exist within sections of the gold deposits. RMDSTEM Limited were assisted in this study by independent consultants from the Hatlar Group Pty Ltd (environmental and metallurgical) MineComp Pty Ltd (conceptual mine planning and Whittle pit optimisation modelling), and internal White Rock personnel. A number of mining and processing scenarios were developed and evaluated within the study model, and an optimum base case selected. This base case is centred on contractor operated, scheduled open pit mining of five of the seven deposits, and a combined floatation / Carbon In Leach ( CIL ) processing plant with a nominal throughput rate of 800,000tpa. This provides a project life of 6 years, with total open pit production of 107koz gold and 6.9Moz silver. A detailed description of the Scoping Study follows. All cost/revenue estimates and gold and silver prices are reported in Australian dollars. For further information, please contact: Geoffrey Lowe (Managing Director) Amber Rivamonte (Company Secretary) Phone: E mail: info@whiterockminerals.com.au Website: Media enquiries to: Simon Jemison C/. Collins Street Media Phone: or E mail: simon@collinsstreetmedia.com.au

3 Resources The current Resource Estimate for the Mt Carrington project was prepared by independent resource consultants Ravensgate Pty Ltd (2012) and Mining One Pty Ltd (2008). These are summarised in Table 1 with further details contained in the Company s previous ASX announcements. MT CARRINGTON INDICATED & INFERRED MINERAL RESOURCE SUMMARY Tonnes Gold grade Gold Silver grade Silver (g/t) ounces (g/t) ounces Gold Dominant Deposits 5,010, , ,000 Silver Dominant Deposits 12,210, , ,805,000 Total Resources Indicated 4,670, ,000 4,342,000 Inferred 12,550, ,000 18,920,000 Total 17,220, ,000 23,262,000 Table 1: Mt Carrington Resource Summary Mining Preliminary Whittle open pit optimisation was completed on the Resource block models for each of the seven deposits to assess the optimal open pit design shell, using a gold price of AUD$1,500 per ounce and a silver price of AUD$30 per ounce. On the basis of the optimal pit shell for each deposit, a number of mining scenarios were subsequently analysed to identify preferred mining options which would maximise resource recovery and project Net Present Value (NPV). The Whittle modelling indicated that five of the seven deposits were amenable to favourable open pit mining scenarios Strauss (Au), Kylo (Au), Lady Hampden (Ag Au), Silver King (Ag) and White Rock (Ag). Strip ratios range from 1.6 : 1 (Kylo) to 3.3 : 1 (Lady Hampden) with an overall average strip ratio for these five deposits of 2.4 : 1. Mining recovery and ore dilution factors of 95% and 5% respectively were used to determine mined tonnes and grade.

4 Metallurgical Test work Further metallurgical test work is underway to confirm the processing options for the Ag / Au Resources and provide a basis for proposed Preliminary Feasibility Studies ( PFS ). This work is being undertaken by Ammtec Laboratories in Adelaide, using bulk drill core samples which have been composited from each of the Strauss, Kylo, Lady Hampden and White Rock deposits. The samples have been designed to accurately represent specific metallurgical domains within the Resource block model. The results of this test work are expected in late August. Processing Scenario All deposits at Mt Carrington comprise predominantly sulphide hosted gold and silver mineralisation. On the basis of recent sighter metallurgical test work and the evaluation of historical test and mine production data, a processing plant has been conceptually designed to treat all sulphide ore types present utilising two process pathways: 1. A standard milling and floatation circuit for the silver dominant Resources (Lady Hampden, Silver King and White Rock), to produce a clean high grade silver gold concentrate, combined with conventional CIL leaching of the floatation tailings. Electrowinning has been selected to extract the precious metals from the leach solution prior to producing gold silver bullion. The high grade silver gold concentrate will be sold directly into the market. Overall average recoveries of 88% for silver and 86% for gold are assumed for this process. 2. A standard milling and floatation circuit for the gold dominant Resources (Strauss and Kylo), producing a rougher concentrate that is subsequently reground and treated in an intensive leach process to recover the precious metals The rougher floatation tailing would be treated in a standard CIL circuit. Electrowinning has been selected to extract the precious metals from the leach solutions prior to producing gold silver bullion. Combined overall recoveries of 85% for gold and 33% for silver are assumed for this process. While the silver recovery by this process is low, the mined silver grades for Strauss and Kylo are only 4.0g/t and 2.5g/t Ag respectively, which constitutes an insignificant portion of the overall Resource.

5 Infrastructure The Mt Carrington Project is located 100km to the west of Lismore and 250km south of Brisbane. The project is conveniently located in close proximity to key regional infrastructure and utilities, and also contains considerable mining infrastructure in place at the project site which is owned by White Rock. The Resource base is located on granted Mining Leases (1,000Ha) which are current to the end of The key regional infrastructure and site assets include: 1.5Mt tailings storage facility with capacity for expansion; 750ML freshwater dam; Site exploration / mine administration office; Water treatment plant with 0.8ML/day output capacity; Connection to the NSW State Power grid which traverses directly through the Mining Leases; The project is located adjacent to the sealed Bruxner Highway, and is 80km west of the Sydney Brisbane railhead at Casino; and Local workforce and suppliers at nearby regional centres of Casino (population 11,000) and Tenterfield (population 4,000). White Rock considers that this asset base significantly de risks the project and enhances the ability of the company to deliver on our near term development vision, with the ability to expand annual production to 100,000oz gold equivalent on the back of future Resource expansions and exploration success. Capital and Operating Cost Estimates An upfront capital cost estimate of $20.7M has been developed by RMDSTEM for the proposed 0.8Mtpa processing plant, and $3.2M for the additional site infrastructure. It is considered that the current site infrastructure owned by White Rock underpins a substantial cost saving on upfront capital expenditure. The total cash cost is estimated to be is $46/tonne milled, or $869/oz AuEq, excluding State Government royalties.

6 Project Economic Analysis Assumptions The economic evaluation for the project was prepared by RMDSTEM based on a pre tax financial model incorporating a number of assumptions, with a view to identifying the key sensitivities. This approach will then allow future feasibility studies to be directly focused on the key value and risk drivers for project development. The key assumptions used in the model are summarised below. Assumptions Gold price (AUD$/oz) 1,500 Silver price (AUD$/oz) 30 Treatment Rate (Mtpa) 0.8 Ore milled (Mt) 4.6 Average open pit strip ratio 2.4 : 1 Mine Life (years) 5.8 Recoveries Au/Ag (bullion %) 85 / 33 Recoveries Au/Ag (concentrate %) 86 / 88 Bullion Produced Au (Koz) 82 Bullion Produced Ag (Koz) 1,201 Concentrate Produced Au (Koz) 26 Concentrate Produced Ag (Koz) 5,710 Au Payability bullion (%) 99.9 Ag Payability bullion (%) 99.5 Au Payability concentrate (%) 90 Ag Payability concentrate (%) 90 Royalty (%) 4 Tax (%) 30 Discount Rate 10% Table 2: Mt Carrington Scoping Study Assumptions Summary Financial Summary pre tax NPV (pre tax) ($M) 60 NPV (post tax) ($M) 40 IRR (pre tax %) 92 IRR (post tax %) 68 Undiscounted Cash Flow (pre tax $M) 97 Undiscounted Cash Flow (post tax $M) 68 Net Revenue ($M) 330 Total Capital Cost ($M) 23.9 Total Operating Cost ($M) 214 Payback (years) 1.4 Mine Life (years) 5.8 C1 Cash Cost ($/oz AuEq) (ex royalties) 869 Table 3: Mt Carrington Financial Outcomes Summary

7 Sensitivity analyses undertaken during the study indicate that the project NPV is sensitive to: 1. Market Factors: Silver price: a 10% increase in the silver price increases the Project NPV by 26%. Similarly, a 10% decrease in the silver price lowers the Project NPV by 26%. Gold Price: a 10% increase in the gold price increases the Project NPV by 18% and a 10% gold price reduction results in an 18% reduction in the Project NPV. 2. Project Factors: Throughput: a 10% increase in throughput increases the Project NPV by 8% and a 10% reduction decreases the Project NPV by 9%. Floatation Recoveries (individual deposits) Silver: a 10% decrease in the floatation recovery for silver decreases the Project NPV by 2 7%. A 10% increase in floatation recovery increases the Project NPV by 2 7%. The impact of gold floatation recoveries is similar. Mining operating cost: a 10% decrease in the Mining operating cost increases the Project NPV by 11%. A 10% increase decreases the Project NPV by 11% Next Steps The positive Scoping Study results strongly support the implementation of Feasibility Studies and future development of the Mt Carrington project. Detailed metallurgical test work is underway to confirm the optimum processing route for all gold and silver Resources, with results expected in late August. It is anticipated that the new metallurgical data will provide a more accurate estimation of metal recoveries to be built into the Scoping Study model, and will provide the impetus to proceed to Prefeasibility Studies.

8 Limitations of Scoping Study The scoping study which has been undertaken is, by its nature, not as reliable or certain in its outcomes as a pre feasibility or a definitive feasibility study, neither of which have been undertaken. As further modelling of the resources and the project is undertaken, the scoping study is expected to change and therefore it is not a definitive indication of how the Mt Carrington project will be developed. The scoping study (inclusive of the cost estimates contained within it) is subject to a range of sensitivities, qualifications, assumptions and risk factors, which could affect the project's development. There are also a range of approvals required before the project can be implemented, which have not been obtained at this stage. The Mt Carrington Scoping Study announcement contains forward looking statements. All statements other than those of historical facts included in this announcement are forward looking statements. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward looking statements. Such risks include, but are not limited to, gold and other metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks and governmental regulation and judicial outcomes. The Company does not undertake any obligation to release publicly any revisions to any forward looking statement. *Competent Persons Report The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled by Mr Rohan Worland who is a Member of the Australian Institute of Geoscientists and is a full time employee of White Rock Minerals Ltd. Mr Worland has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which 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. Mr Worland consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The gold and silver Resource figures for Strauss, Kylo, Lady Hampden, Silver King and White Rock North have been taken from the resource estimate prepared by Ravensgate Minerals Industry Consultants on behalf of White Rock Minerals Ltd and authored by Mr Don Maclean. Mr Maclean is a member of the Australian Institute of Geoscientists and has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken 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. Mr Maclean consents to the inclusion in this report of the matters based on this information in the form and context in which it appears. The gold and silver Resource figures for White Rock and Guy Bell have been taken from the resource estimate report dated 1 October 2008 prepared by Mining One Pty Ltd on behalf of Rex Minerals Ltd and authored by Dr Chris Gee who is a professional geologist with more than 10 years experience in resource estimation. Dr Gee is a Competent Person as defined by the JORC Code and consents to the inclusion in this report of the matters based on this information in the form and context in which it appears. 1 AuEq and AgEq calculated at 50:1 Ag : Au using metal prices of $1,500 per oz and $30 per oz and does not account for mining or metallurgical recoveries

9 About White Rock Minerals White Rock is an Australian minerals exploration company focussed on the discovery and development of shallow gold, silver and copper deposits in the New England Fold Belt, northern NSW. The Company is targeting deposit styles similar to those at Cracow, Mt Rawdon and Mt Carlton. White Rock s cornerstone asset is the 100% owned Mt Carrington project where shallow Indicated and Inferred Mineral Resources totalling 284,000oz gold and 23.3Moz silver* have been defined. Exploration drilling at Mt Carrington is in progress with the aim of extending the shallow Resource base, and to test a number of prospective regional and near mine targets within a tenement area of 600km 2 over the under explored Drake Volcanics. Market Capitalisation: A$0.10/share Issued Capital: 87m Ordinary shares, 6.4m Unlisted options Balance Sheet: Cash ~A$2.62M (30 June 2012), no debt Shareholders Greenstone Property Pty Ltd 10.10% Silverstone Investment Holdings Pty Ltd 7.75% Board and Management 4.00% Grand South Development Ltd 3.47% Banlona Pty Ltd 2.29% TOP 20 45% Board and Management Brian Phillips Non Executive Chairman Geoffrey Lowe Managing Director Steven Olsen Non Executive Director Amber Rivamonte Company Secretary Janet Mason Chief Financial Officer Rohan Worland Exploration Manager About Mt Carrington, New South Wales Mt Carrington is located near the township of Drake in northern New South Wales and is only a 4 hour drive from Brisbane. The project covers the historic Drake Mineral Field. Gold was first discovered in the region in 1853 with a number of discoveries made over the next 25 years at the Drake, Tooloom, Pretty Gully, Lunatic and Boorook fields. In 1886 gold and silver were identified at Drake (then called Fairfield), Mount Carrington, White Rock and Red Rock. Prospecting and small scale mining of high grade gold silver and copper lodes continued through to the 1920 s. The Drake field saw a resurgence of exploration from the 1960 s onwards. Carpentaria Exploration explored the White Rock and Lady Hampden areas for a number of years, and in 1970 Mount Carrington Mines Ltd (MCM) was floated. MCM planned to develop a resource base on a number of the Mt Carrington gold silver deposits, and from 1974 to 1976 the company mined 9,500 tonnes at a grade of 220g/t Ag and 5 g/t Au from the Lady Hampden open pit. The Mt Carrington field was explored further in the mid 1980 s and MCM constructed and commissioned a new open pit mining operation, focussed on extracting oxide gold and silver ore from the Strauss, Kylo, Guy Bell and Lady Hampden deposits. The operation ran from 1988 to mid 1990, producing approximately 22,000 oz of gold and 435,000 oz of silver. The mine closed due to depletion of oxide ore and secondary copper zones causing CIP processing issues. At the time of closure the gold and silver prices were US$370 and US$5 respectively. Following the mine closure a joint venture was formed between MCM and CRA Exploration. CRAE was focused on exploring for a large polymetallic mineralised system in a Pacific Rim type environment. Their work identified a 15km diameter, circular feature of subdued magnetic response. The feature hosts all of the known gold, silver and copper mineralisation in the Drake Field. Recent detailed mapping by White Rock Minerals Ltd has established the feature as a large volcanic caldera structure.

10 In April 2008 Rex Minerals Ltd acquired the project and subsequently re estimated a shallow Inferred Resource base of 190,000 oz Au and 10.5M oz Ag. White Rock Minerals was demerged from Rex Minerals in June 2010 with the purpose of undertaking Resource definition drilling and feasibility studies to increase the Resource base and assess the viability of near term re development of the project into an open pit gold silver mining operation. The initial twelve months of Resource evaluation has increased the Resource base on the project to 284,000 oz Au and 23.3M oz Ag. In conjunction, a comprehensive regional exploration program testing epithermal style precious metal targets defined within the 400 square km regional volcanic caldera feature is ongoing, and this has defined several prospects with high grade Au and Ag anomalism at surface. No systematic regional exploration has been undertaken on the mineral field for over 16 years.