Further significant channel sampling results at New Departure Silver Mine, Montana

Black Mountain Resources Limited (ASX | AIM: BMZ), the silver focused development company with interests in the US, is pleased to announce that further high grade silver (‘Ag’) results have been returned from channel sampling at its New Departure Silver Mine in Montana.

Highlights

Second round sampling results surpass expectations with Ag 90 oz/t (2,550 g/t) plus over 0.5-2m channels (see highlights in table 1 and full results)

• Key samples confirm proposed run of mine grade and key production assumptions
• Grades confirm earlier high grade sampling programmes and extend the Main Zone silver mineralisation
• Hard Rock Consulting (‘HRC’) has taken historical sample data and recent underground sample results to construct a model of the silver vein mineralisation (see Fig 1) to confirm the historical resource estimates and update the mine plan for New Departure
• HRC is also incorporating zinc and lead as saleable products from the New Departure
• Results highlight that the Blue Dot level has the largest potential for hosting a mineral resource in the downward and northwest plunging remainder of the ore body as well as confirming existing historical results
• A third and final round of underground sampling and drilling is planned in September to expand high grade zones in historical workings and a drill possible extension zones in the Blue Dot level Main Zone

Black Mountain Chairman, Pete Landau, said:

“These high grade sampling results once again confirm the quality of this silver asset, which will be the first of our three assets to be brought into production upon completion of financing.  We believe that this will be forthcoming in the near term and accordingly, HRC is constructing a model of the silver vein mineralisation to confirm the historical resource estimates and to develop a preliminary mine plan for New Departure.  Notably, these grades of up to 90 oz/t of silver confirm the proposed run of mine grade and key production assumptions, which holds us in good stead as we continue to tread the path towards transforming Black Mountain to become a low cost, high grade silver producer in the near-term.”

Sampling Process

28 samples were delivered to Osborn, Idaho for sample preparation and assay by American Labs.  All samples were taken from the Blue Dot Level at New Departure.  A Thermo Scientific Niton XL3 XRF instrument was used extensively to check for zinc grade in the Blue Dot Level. This instrument will be used in future sampling and drilling programmes to validate high zinc zones.

Highlights of the results are listed below. Note that silver results are given in ounces per ton and length in centimetres. Full details of the sampling results are provided in Annexure A.

Table 1 – Highlight of Sample Results (refer to Annexure 1 for full results)

 These samples continue to confirm the high grade nature of the New Departure silver mineralisation (see map below).  The map below also shows the silver vein mineralization confirming the historical resource estimates and develops a preliminary mine plan for New Departure.

Figure 1: New Departure Mine – September 2014 Sample Results & Proposed Resource Areas

Following the proposed third and final round of underground sampling and drilling this month to expand high grade zones in historical workings and a drill possible extension zones in the Blue Dot level Main Zone, the Company will move into production with appropriate financing having been sourced.

For and on behalf of the Board

Peter Landau

Executive Director

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

About Black Mountain Resources Limited

Black Mountain Resources Limited is a dual listed (ASX | AIM: BMZ) silver and gold focused development company focussed on the advancement of three highly prospective previously operating assets located in two of the world’s most developed and proven silver and gold mining regions of Idaho and Montana, USA.

The Company holds a 70% interest in the New Departure Silver Project, the Conjecture Silver Project and the Tabor Gold and Silver Project pursuant to 45 year leases from Chester Mining Company, Lucky Friday Extension Mining Company and Brush Prairie Minerals respectively.  Black Mountain plans to implement low cost production and development programmes across all three assets.  It is also implementing exploration programmes to capitalise on the exploration upside potential apparent across its portfolio.

Black Mountain Resources Limited was incorporated on 29 October 2010 and is listed on the Australian Securities Exchange (ASX) and London’s AIM Market – trading codes BMZ and BMZO.

Forward Looking Statement

Certain statements made during or in connection with this communication, including, without limitation, those concerning the economic outlook for the silver market, expectations regarding silver ore prices, production, cash costs and other operating results growth prospects and the outlook of the Company’s operations including the likely commencement of commercial operations of the New Departure and Conjecture Silver Projects, its liquidity and the capital resources and expenditure, contain or comprise certain forward-looking statements regarding the Company’s development and exploration operations economic performance and financial condition.  Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct.  Accordingly, results could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in economic and market conditions, success of business and operating initiatives, changes in the regulatory environment and other government actions, fluctuations in silver ore prices and exchange rates and business and operational risk management.  For a discussion of such factors refer to the Company’s most recent annual report and half year report.  The Company undertakes no obligation to update publicly or release any revisions to these forward-looking statements to reflect events or circumstances after today’s date or to reflect the occurrence of unanticipated events.