Mr. Mark McCauley reports

MELIOR RESOURCES INC.: GOONDICUM OPERATION RESOURCE ADDITION

Melior Resources Inc. has completed a resource report in compliance with National Instrument 43-101 for mining lease application 80141 (MLA 80141) adjoining the existing granted mining lease (ML 80044). The new resources abut the southern boundary of the ML resources creating a contiguous deposit with similar style of ilmenite mineralization.

Highlights:

• Total indicated resources comprising ML and MLA increased by over 40 per cent from 1.9 million tonnes to 2.69 million tonnes of ilmenite;
• Total inferred resources comprising ML and MLA increased by 33 per cent from 1.93 million tonnes to 2.57 million tonnes of ilmenite;
• Additional mineralization prospective for further exploration identified on the eastern side of the MLA.

The MLA covers an area of 2,863.13 hectares, or approximately 80 per cent, of a geomorphological feature known as the Goondicum crater. The MLA directly adjoins Melior's 100-per-cent-owned mining lease 80044, which includes the Goondicum mine, currently in the process of being restarted.

The new mineral resource estimate defined for the MLA is additional to the previously announced resource of 1.9 million tonnes of indicated and 1.93 million tonnes of inferred ilmenite resources which is included in the ML. The MLA ilmenite resources cover an area of approximately 10.5 square kilometres on the western side of the crater; additional mineralization in the same area but not covered in this report comprises apatite and titano-magnetite. Similar-style ilmenite, apatite and titano-magnetite mineralization has been identified on the eastern half of the lease, though there is currently insufficient geological information to define a mineral resource.

The new resource estimate for the MLA is based on 332 reverse circulation drill holes and 38 hand auger holes for 2,152 metres and 2,523 samples, drilled between 1996 and 2000. Geological work on the ML allowed for the delineation of four mineralized units from drilling information and surface topography/mapping. These units comprise colluvium (CL), an upper clay-sand unit subdivided into high slimes (CS-H) and low slimes (CS-L), and a lower decomposed gabbro (DG). For the MLA however, a lack of detailed drill sample logging information meant the CL and clay-sand units were combined into one CS unit. Hence, the opportunity exists to further refine the delineation of clay-sand unit into high and low slimes units. As is evidenced by the resources within the existing ML, the higher slimes clay-sand units can carry significantly higher ilmenite grades.

Current mineral resources for the MLA, reported at a cut-off grade of 2.5 per cent ilmenite, are estimated to be 15.6 million tonnes at 5.1 per cent ilmenite of indicated and 12.3 million tonnes at 5.2 per cent ilmenite of inferred resource to be added to Goondicum's resource inventory.

           RESOURCE ESTIMATE BY HOST LITHOLOGY FOR MLA 80141

Lithology     Category        Tonnes    Ilmenite    Ilmenite    Slimes
                                  (M)         (%)        (Mt)       (%)

CS            Indicated          8.7         6.1        0.53      43.8
DG            Indicated          6.9         3.7        0.26      11.4
              Total             15.6         5.1        0.79      29.5
CS            Inferred           7.5         6.1        0.46      37.9
DG            Inferred           4.8         3.7        0.18      10.8
              Total             12.3         5.2        0.64      27.3

Minor rounding errors.

The table shows the previously announced resource estimate for ML 80044 with a total of 31.3 million tonnes at 6.1 per cent available ilmenite of indicated and 30.9 million tonnes at 6.3 per cent available ilmenite of inferred resource.

          RESOURCE ESTIMATES BY HOST LITHOLOGY FOR ML 80044

Lithology     Category        Tonnes    Ilmenite    Ilmenite    Slimes
                                  (M)         (%)        (Mt)       (%)

CL            Indicated          4.1        10.8        0.45      52.9
CS_H          Indicated          4.9        12.9        0.63      52.4
CS_L          Indicated          5.0         4.0        0.20      10.2
DG            Indicated         17.3         3.6        0.62      11.1
              Total             31.3         6.1        1.90      22.9
CL            Inferred           2.5        10.1        0.25      53.1
CS_H          Inferred           8.8        11.2        0.99      46.3
CS_L          Inferred           5.9         4.0        0.23      11.0
DG            Inferred          13.7         3.3        0.46      10.7
              Total             30.9         6.3        1.93      24.3

1. Available ilmenite represents the total amount of ilmenite present
in the 5.5A recovered magnetic fraction and is calculated for each
interval submitted as part of a composite sample.

A technical report in compliance with reporting requirements of National Instrument 43-101 has been prepared and will be filed by Melior on the SEDAR within the next seven days.

Mark McCauley, chief executive officer of Melior, commented: "We are pleased by the increase in the known ilmenite resources within the Goondicum crater. While we are fully focused on the upgrade and restart of the Goondicum operation, the confirmation of additional resources outside of the current project area provide Melior with a number of future opportunities to further leverage the substantial installed infrastructure to potentially increase the mine life, or to reassess the scale of the existing operation. These potential options will be subject to further technical and economic studies and appropriate permitting."

About Goondicum

The Goondicum residual ilmenite deposit comprises a near-surface, ilmenite-rich oxidized gabbro. The area under investigation sits in the western half of the crater with oxidation and erosion producing a complex weathering pattern of the host rock. Mineralization comprises weathering resistant ilmenite, apatite and titano-magnetite liberated by the complex weathering process.

The new estimates for the MLA are based on 332 reverse circulation drill holes and 38 hand auger drill holes for 2,152 m and 2,523 samples. The newly devised mapping and drill hole logging codes were used to generate new lithology surfaces with some minor modifications, particularly from the slimes assays, to maintain geological sense. A total of 1,844 one m composites was used to model the 5.5A recovered magnetic fraction and slimes data. Ilmenite and slimes grades for the CS (clay-sand) unit are markedly higher than the DG (decomposed gabbro) unit indicating modification of the eroded material by alluvial and eluvial processes.

The 1996 samples were transported to the Monto-based DFS Laboratory where they underwent subsampling, screening and washing, prior to magnetic separation. The 1999/2000 samples were transported direct from the drill site to readings laboratory in Lismore, New South Wales, where they underwent a similar program of sampling, screening and washing, prior to magnetic separation to that used previously in the Monto Laboratory. In both cases following magnetic separation, composited intervals of the 5.5A magnetic fractions were forwarded to MD mineral technologies laboratory, in Carrara, Queensland, for Clerici float/sink testwork and XRF analysis to determine the contained ilmenite, reported as an ilmenite conversion factor for different lithologies.

The quality assurance/quality control for the sampling has included field duplicates of the original 1996 and 1999/2000 RC samples, testing of repeat samples from both drilling programs, and comparison between the 1996 Monto DFS and the 1999/2000 Readings Laboratory sample treatment. Based on retesting some shaking table tailings, the Readings Laboratory in producing higher ilmenite in the table concentrates also lost between 18 and 23 per cent of the total 5.5A magnetics during tabling.

The new resources form an arcuate shape that is approximately five kilometres long by 1.5 km wide with a depth from surface range of zero m to approximately eight m.

Reporting of the resource estimates used partial per cent volume adjustment factors for the regional topographic surface and the base-of-assaying surface, with an ilmenite cut-off grade of 2.5 per cent. An additional constraint was the mapped outlines of prospective areas generated from the recent mapping work. Classification of the resource estimates is primarily based on the modelling search parameters after consideration of other impacting criteria, that is grade continuity, data quality, quality assurance/quality control sample recovery, density and geological understanding.

There are opportunities of expanding the size of the MLA resource by drilling in the newly identified prospective areas of the western part of the crater that have no drilling to date. From the modelling, additional resource potential is suggested on the periphery of the prospective areas, which requires filed inspection to confirm. Further exploration opportunities exist within the remainder of the eastern half of the Goondicum crater as some of the earlier drilling work had intersected significant amounts of similar-style ilmenite mineralization.

Further proposed exploration on the property is primarily designed to expand the size of the resource. An exploration budget is enclosed to allow for the expanding and some upgrading of the resource estimates.

A feasibility study has not been completed, and there is no certainty the proposed operation will be economically viable.

Qualified persons statement

Mineral resources were estimated by H&S Consultants Pty. Ltd. (H&SC), a geological consultancy based in Sydney, New South Wales, Australia, and are reported in accordance with National Instrument 43-101.

The effective date of the mineral resources estimates disclosed in this press release is Feb. 13, 2014.

The scientific and technical information in this press release has been reviewed and approved by Simon Tear (BSc (honours), PGeo, EurGeol, MIOM3, MAusIMM) a director at H&SC and Graham Lee (BSc, FAusIMM, CP (Geo)), an associate of H&SC, both of whom are qualified persons under National Instrument 43-101.

For detailed technical information please see the technical report prepared by H&S Consultants, which will be posted on Melior's SEDAR profile.

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