Horseshoe Metals Limited  pleased to advise of the completion of the maiden Mineral Resource estimation, in accordance with the JORC guidelines and code for reporting of Mineral Resource Estimates, at the Kumarina Copper Project located in the Peak Hill Mineral Field of Western Australia. The Mineral Resource estimation has been completed on the Rinaldi Prospect. At a cut-off grade of 0.5% Cu, the Mineral Resource estimate is 835,000 tonnes @ 1.3% Cu for 10,600 tonnes of contained copper.

Horseshoe commissioned independent resource specialists H & S Consultants Pty Ltd to undertake the estimation, following the completion of drilling by the Company in December 2012. The mineralisation at the Rinaldi Prospect is hosted within a north-south oriented sub-vertical fault zone, one of several such faults identified within the Company’s tenement by a 2011 aeromagnetic survey. The deposit is very shallow with resource blocks occurring from 2 metres to 120 metres below surface. Importantly the higher grade zone of mineralisation which contains over 98% of >1.0% copper mineralisation is concentrated between 7267925mN and 7268275mN, a distance of about 350 metres. Importantly the copper mineralisation within the fault zone remains open along strike to the north and south of the deposit as well as at depth. The Company is pleased with the progress of exploration at the Rinaldi Prospect which has culminated in this maiden Mineral Resource estimate.

Planned Activities

Kumarina Project
Additional drilling will be undertaken at the Rinaldi Prospect to test for extensions to the mineralisation within the north-south fault zone. A small number of holes drilled by the Company have intersected copper mineralisation within the interpreted fault zone at depth in a dolerite sill. Drilling to identify copper mineralisation within the dolerite sill/fault zone contact will be undertaken this year. A recently completed soil geochemical survey over a large portion of the project area has identified several anomalies, some co-incidental with north-south faults, including along the fault zone south of the Rinaldi Prospect. Follow up exploration on these anomalies is being planned, which will include reconnaissance drilling in the coming field season. A co-incidental soil and aeromagnetic anomaly has also been identified at the Kumarina Deeps Prospect. Drill testing of this interpreted deep anomaly will be a priority once the necessary site access clearances are received.

Horseshoe Lights Project
The Company’s immediate focus is to update the Mineral Resource estimate following the completion of over 10,000 metres of drilling at Horseshoe Lights in 2012. Much of the Quality Assurance/Quality Control work on the historical parts of the database has now been completed. Release of the updated Mineral Resource estimate is expected towards the end of March 2013. A geophysical study of the mine and surrounding areas is being finalised to identify targets for the next stage of drilling.

Drilling at the Horseshoe Lights Project for the 2013 field season will focus on:

1. deep, high grade copper/gold zones - potentially located down dip and down plunge of the Main Zone - of sufficient grade to potentially support underground mining; and
2. exploration targets outside of the immediate pit area which have not been adequately tested by previous exploration efforts.