Mr. David Taplin reports

SINGAPOREAN STEEL AND SHIPPING GROUP SIGNS FUNDING MANDATE FOR MACARTHUR MINERALS AUSTRALIAN IRON ORE PROJECT

Macarthur Minerals Ltd. has entered into a non-exclusive mandate with the Tulshyan Group to raise up to $200-million (Australian) with an initial tranche of $50-million (Australian) to develop the company's Ularring hematite iron ore project located in Western Australia.

The Tulshyan Group made a strategic investment in the company in January this year. The Tulshyan Group, based in Singapore, is one of the largest recyclers of scrap steel in the world, has a significant shipping business with a fleet of over 30 ships and is expanding its commercial aircraft leasing business. The Tulshyan Group has significant experience in sales, marketing of steel and iron ore, and access to capital for potential development of the company's Western Australian iron ore projects.

David Taplin, president, chief executive officer and director of Macarthur, commented:

"Macarthur Minerals is pleased to be working with Tulshyan Group to raise funds to develop the company's Ularring hematite project. Tulshyan brings to Macarthur significant experience in shipping, sales, marketing of steel and iron ore, and has access to capital to assist in potential development of the company's Western Australian iron ore projects. We are now observing good indications that the price of iron ore has recovered from its 2015 low of $38.30 (U.S.) (1) per tonne to a spot price today of $92.23 (U.S.) (2) per tonne with the advantage of a favourable exchange rate due to deprecation of the Australian dollar against U.S. dollar."

Australian iron ore projects

Macarthur Minerals' iron ore projects are located on mining tenements covering approximately 62 square kilometres located 175 km northwest of Kalgoorlie in Western Australia. Within the tenements, at least 35 km strike extent of outcropping banded iron formation (BIF) occurs as low ridges, surrounded by intensely weathered and mostly unexposed granites, basalts and ultramafic rocks.

The iron ore projects consist of two distinct mineral projects:

• The Ularring hematite project: encompassing hematite iron ore, to be marketed as potential direct shipping and/or beneficiated iron ore;
• The Moonshine magnetite project: encompassing magnetite iron ore, to be marketed as a beneficiated magnetite concentrate.

The company has been maintaining the core iron ore projects' assets and they remain valuable assets having previously spent over $60-million to develop them. There is real potential for the iron ore projects to add significant value with the recovery of global iron ore markets.

Since July, 2006, Macarthur Minerals has drilled 1,841 reverse circulation percussion drill holes (142,443 metres) and 49 diamond holes (4,170 metres) targeting iron mineralization associated with BIF units. Exploration at both Ularring hematite and Moonshine magnetite projects has been sufficient to allow the estimation of mineral resources for both projects.

The Ularring hematite project's mineral resource consists of indicated 54.46 million tonnes at 47.2 per cent iron and inferred 25.99 million tonnes at 45.4 per cent Fe (3). Macarthur Minerals published a prefeasibility study in 2012, reporting mineral reserves (4).

The company has received approval to develop an iron ore mine for the Ularring hematite project and associated infrastructure at the project location under the Environmental Protection Act 1986 and the Environmental and Biodiversity Conservation Act 1999.

The inferred mineral resource estimate for the Moonshine magnetite project was initially prepared by CSA Global Pty. Ltd. (5) and was updated by Snowden Mining Industry Consultants, with an inferred mineral resource consisting of 1,316 million tonnes at 30.1 per cent Fe (6).

A preliminary assessment report was prepared on the Moonshine magnetite project by Snowden Mining Industry Consultants in 2011 (7).

Terms of mandate

The company, through its 100-per-cent-owned subsidiary, Macarthur Australia Ltd., has entered into a mandate with Jewel Bright Ltd., part of the Tulshyan Group. Jewel Bright will raise up to $200-million (Australian) via various tranches to finance the Ularring hematite project, for a 10-per-cent fee on moneys raised, a specified amount of options in MAL and other conditions.

Qualified persons

David Williams, a member of the Australian Institute of Geoscientists, is a part-time employee of CSA Global Pty. Ltd. and is a qualified person as defined in National Instrument 43-101. Mr. Williams has reviewed and approved the technical information in relation to the iron ore projects contained in this news release.

About Macarthur Minerals Ltd.

Macarthur Minerals is an exploration and development company that is focused on identifying and developing high-grade lithium and counter-cyclical investments, with significant lithium exploration interest in Australia and Nevada. In addition, Macarthur has two iron ore projects in Western Australia; the Ularring hematite project and the Moonshine magnetite project.

Upcoming events

Macarthur will be attending the 2017 Prospectors and Developers Association of Canada (PDAC) International Convention and Investors Exchange in Toronto, March 5 to 8, at the Metro Toronto Convention Centre.

The company invites you to meet the Macarthur team at booth No. 2344. The conference will provide current and prospective shareholders an opportunity to speak with management about the company's recent developments.

(1) Jasmine Ng, "Iron ore sheds 4.3pc on week, ending at record low," Australian Financial Review, Dec. 12, 2015.

(2) Australian financial review, Feb. 14, 2017.

(3) Previously announced on Aug. 16, 2012, NI 43-101 technical report filed Oct. 1, 2012, titled "NI 43-101 technical report, Macarthur Minerals Ltd., prefeasibility study, Ularring hematite project, Western Australia."

(4) Previously announced on Aug. 16, 2012, NI 43-101 technical report filed Oct. 1, 2012, titled "NI 43-101 technical report, Macarthur Minerals Ltd., prefeasibility study, Ularring hematite project, Western Australia."

(5) NI 43-101 technical report filed Dec. 17, 2009, titled "NI 43-101 technical report on Lake Giles iron ore project: Western Australia."

(6) NI 43-101 technical report filed March 25, 2011, titled "Macarthur Minerals Ltd.: Moonshine and Moonshine North prospects, Lake Giles iron project, Western Australia, NI 43-101 technical report -- preliminary assessment."

(7) NI 43-101 technical report filed March 25, 2011, titled "Macarthur Minerals Ltd.: Moonshine and Moonshine North prospects, Lake Giles iron project, Western Australia, NI 43-101 technical report -- preliminary assessment."

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