Update on Progress

29 December 2015

1nq

NQ Minerals PLC (ISDX:NQMI)
(“NQ Minerals” or the “Company”)

Update on Progress

NQ Minerals PLC (ISDX:NQMI), an Australia-based exploration and mining company, which listed on the ISDX Growth Market in July 2015, is pleased to provide an update on the progress of its projects.

Highlights

UKALUNDA

— Priority areas for drilling on the site are Pyramid, Birthday Gift, Walhalla, Carrington, Carrington NE, Rosenthal, Polka Dot, Sunbeam, & White’s Hope. So far 32 holes totaling 3,120m have been planned mainly targeting depth extensions to primary ore and, at Carrington, shallow oxide/supergene extensions to the north east. The planned drill holes in these locations are pegged on site with drilling of the first 10 holes at Carrington, Walhalla & Rosenthal to commence in January 2016.

— Full campsite facilities have been established on site and a solid work program is progressing with reconnaissance, mapping, and geochemical sampling. Systematic evaluation of past exploration results continues to uncover promising results neglected by previous operators.

— New prospect areas continue to be discovered with recent promising assay results from Duncans where specimens ran 6.4 & 5.4 g/t Au, 3 & 13 g/t Ag, 2.4 & 10.9% Cu, and 0.1% W. Results from the infill soil sampling at Mt Wyatt East also showed widespread anomalous gold.

— Preliminary Metallurgy tests on samples from the Ukalunda stockpiles revealed impressive results. Specialist metallurgical test work services company ALS Minerals* has reported as follows:

o Head assay Silver (Ag) grades for the samples were as high as 8520 ppm at Sunbeam (with Cu at 4.23%), 464 ppm at Daisy (with Cu at 4.17%) & 44 ppm at White’s Hope (with Cu at 4.56%)

o For Whites Hope: Concentrate assaying 454 ppm Ag and 39.3 % Cu was produced in Whites Hope test 2. Another result has reported combined rougher concentrate assaying 278 ppm Ag and 23.4 % Cu.

o For Walhalla: Leach Well results are very good with Gold (Au) at 25ppm Au. Au recovery is over 98 % without regrind in the leach. This indicates that Au in this sample is free gold (not encased by pyrite), so it is highly possible to produce to a saleable Au concentrate through flotation.

o For Sunbeam:

— Over 93% recovery of Silver and Copper in test samples has been achieved.

— A bulk concentrate with around 3.4 % Ag (Silver) at 99.7 % recovery was produced through flotation.

o The preliminary investigation has shown that all samples could be processed to produce saleable products.

o Mineralogical work by ALS established the following assemblages in the metallurgical samples: (Note the chamosite at Sunbeam. This is a relatively uncommon iron rich chlorite mineral in nature. Chamosite is usually related to an early hydrothermal phase and occurs mainly in a mineralized breccia type stockworks in which it fills open spaces and as replacements of precursor minerals).

 
                                                                           Sunbeam 
------------------------------------------------------------------------------------------------------------------------------------------------------------- 
 Mineral    Chalcopyrite   Galena     Other                     Pyrite      Tennantite-Tetrahedrite   Barite                              Chamosite    Quartz 
                                       Pb Minerals 
---------  -------------  ---------  ------------------------  ----------  ------------------------  ----------------------------------  -----------  ------- 
 Wt%        2.03           9.08       0.80                      1.38        11.99                     16.41                               7.30         33.13 
---------  -------------  ---------  ------------------------  ----------  ------------------------  ----------------------------------  -----------  ------- 
                                                                         Whites Hope 
------------------------------------------------------------------------------------------------------------------------------------------------------------- 
 Mineral    Non sulphide   Minor                                Fe          Quartz                    Phyllosilicates   Amphiboles        Other_silicates 
             Cu minerals    Cu bearing                          oxide 
                            gangue                              hydroxide 
---------  -------------  -----------------------------------  ----------  ------------------------  ----------------  ----------------  -------------------- 
 Wt%        7.84           4.96                                 3.07        1.51                      5.11              26.92             49.75 
---------  -------------  -----------------------------------  ----------  ------------------------  ----------------  ----------------  -------------------- 
                                                                            Daisy 
------------------------------------------------------------------------------------------------------------------------------------------------------------- 
 Mineral    Chalcopyrite   Other      Tennantite-tetrahedrite   Non sulphide                          Minor             Pyrite            Carbonates   Quartz 
                           Pb                                    Cu minerals                           Cu bearing 
                           minerals                                                                    gangue 
---------  -------------  ---------  ------------------------  ------------------------------------  ----------------  ----------------  -----------  ------- 
 Wt%        3.16           0.79       0.76                      3.05                                  15.35             1.89              27.17        27.83 
---------  -------------  ---------  ------------------------  ------------------------------------  ----------------  ----------------  -----------  ------- 
                                                                           Walhalla 
------------------------------------------------------------------------------------------------------------------------------------------------------------- 
 Mineral    Minor          Pyrite     Fe                        Other       Carbonates                Quartz            Phyllosilicates   Amphiboles 
             Cu                       oxide                      oxides 
             bearing                  hydroxide 
             gangue 
---------  -------------  ---------  ------------------------  ----------  ------------------------  ----------------  ----------------  -------------------- 
 Wt%        4.31           14.13      0.69                      1.61        45.02                     29.15             2.79              1.49 
---------  -------------  ---------  ------------------------  ----------  ------------------------  ----------------  ----------------  -------------------- 
 

o The most suitable conditions determined for the flotation treatment of the sample from Sunbeam are summarized below. ALS Minerals have advised “A concentrate assaying 3.15% Ag, 18% Cu and 31.3% Pb will be produced at very high recovery. Based on the current metal price, the Ag in one ton of the concentrate is worth USD$20,000, while Cu and Pb are worth USD$1200 and USD$650.”

 
 Test                    Grades and Recoveries - Final Concentrate 
  No. 
-----  ---------------------------------------------------------------------------- 
        Product         Ag               Cu               Pb               Zn 
-----  --------  ---------------  ---------------  ---------------  --------------- 
                   %     % Rec'y    %     % Rec'y    %     % Rec'y    %     % Rec'y 
-----  --------  -----  --------  -----  --------  -----  --------  -----  -------- 
          Ag 
  7       Conc    3.15    93.6     18.0    95.2     31.3    90.8     3.28    94.0 
-----  --------  -----  --------  -----  --------  -----  --------  -----  -------- 
 

— The Sunbeam Mining Lease application ML 100040 is progressing through the Queensland Department of Natural Resources and Mines, as planned.

SQUARE POST

— The geological team has primarily kept its focus, over recent months, on the Ukalunda project in preparation for the drilling program in January 2016.

— Aside from this, galena bearing samples from Breccia Knob were delivered to Geoscience Australia representatives to assist their regional Pb isotope age dating and other isotopic studies in the area. These are aimed at linking the ore deposition to crustal evolution. The results are likely to assist future exploration targeting.

On 29 December 2015, NQ Minerals issued a further 1,250,000 shares at the original 8p placing price. The New ordinary shares will rank pari passu with the existing ordinary shares and will be immediately admitted to trading on ISDX. Following the placing the Company has 144,386,909 ordinary shares in issue.

Commenting, Non-Executive Chairman Brian Stockbridge, said:

“The Board and Management of NQ Minerals continue to be encouraged by recent metallurgy work on the stockpiles and new assay results from previously overlooked areas on the Ukalunda site. The drill program has also been well planned and drill holes pegged ready for commencement in January. The Board looks forward to providing further guidance on the project development in due course.”

NQ Minerals plc
Brian Stockbridge
http://www.nqmpl.com
Tel: + 44 (0) 7876 888 011

Alfred Henry Corporate Finance Limited – Corporate Advisor
Nick Michaels and Jon Isaacs
www.alfredhenry.com
Tel: +44 (0) 207 251 3762

Yellow Jersey PR Limited – Financial PR & IR
Alistair de Kare-Silver, Dominic Barretto and Harriet Jackson
www.yellowjerseypr.com
Tel: +44 (0) 7738 076 304

DJ NQ Minerals PLC Update on Progress -2-

NQ Minerals is an Australian–based exploration and mining company, focusing on projects where past exploration work has established the presence of mineral occurrences. The Company’s management team has decades of experience in the exploration and production of gold, silver and a variety of base metals.

NQ Minerals is focused on two exploration projects known as Ukalunda and Square Post, in North Queensland, Australia. These projects are both located in prospective mining districts that form part of the well– known Charters Towers Gold Province, where more than 20 million ounces of gold has been mined.