Mr. Cameron McCall reports

LAKE GILES IRON ORE PROJECT UPDATE

Macarthur Minerals Ltd. has provided an update to shareholders outlining recent activities advancing the Lake Giles iron ore project in the Yilgarn region of Western Australia.

Significant advancement has been made in the following areas:

• Diamond and reverse circulation drilling infill program has commenced to support a resource category upgrade and obtain samples for metallurgical test work;
• Development of the commercial and technical capabilities in the company to deliver the completion of a bankable feasibility study;
• Application for in-principle advice seeking consideration from the Australian Stock Exchange for a proposed dual listing of the company;
• Discussions with commercial partners for power and water supply, mining services, road and rail haulage, port infrastructure development, and process plant design and construction.

Macarthur will release more detailed information to the market on these key project developments as they are finalized.

Cameron McCall, executive chairman of Macarthur Minerals, commented:

"The first half of 2019 has been very rewarding for the company with the closure of an offtake agreement with Glencore, rail haulage negotiations with Aurizon, successful closure of capital raising to fund the delivery of a bankable feasibility study, the positive result of the Lake Giles iron ore project in the June, 2019, technical report with improved capital and operating costs of the project. During this period Macarthur also repositioned its non-iron ore assets for gold, lithium and copper in the Pilbara region of Western Australia into an earn-in agreement with an active explorer, Fe Ltd., allowing Macarthur to concentrate its full focus on the iron ore projects.

"Some shareholders have contacted me about the recent decline in the share price on the TSX-V. Let me assure you there are no project or company issues contributing to this decline. The global sentiments around China/USA relations, U.S. economic slowdown, volatility across major stock exchanges and the recent pullback of the iron ore spot prices to $95 (U.S.)/tonne all have, in part, contributed to this share price decline.

"The Lake Giles iron project, with its stated costs for magnetite production of $37.43 (U.S.)/tonne, still provides a robust margin today for the company's target three Mtpa product of 65 per cent Fe magnetite concentrate.

"Moving forward, the board is seeking in-principle consideration from the Australian Stock Exchange for a dual listing of Macarthur Minerals. Australia is seen as a logical exchange given investor and institution familiarity in mining, specifically iron ore, and the geographic proximity to its Lake Giles iron project. Australia, and specifically Western Australia, is the largest iron ore supplier in the world, accounting for 39 per cent of global supply in 2018 exporting over 800 million tonnes per annum.

"Over the course of the coming months, Macarthur will have a solid workload in supporting the completion of a feasibility study, key route-to-market and mining tasks, and building a commercial and technical team to support the development of the project.

"Our non-iron asset partners, FEL, are also undertaking an active program in exploration for the gold, lithium and copper assets in the Pilbara following a successful initial reconnaissance trip which identified areas of significant prospectivity."

About Macarthur Minerals Ltd.

Macarthur is an iron ore development, gold and lithium exploration company that is focused on bringing to production its Western Australia iron ore projects. The Lake Giles iron ore project includes the 80-million-tonne Ularring hematite resource (approved for development) and the 710-million-tonne Moonshine magnetite resource. Macarthur has prominent (approximately 1,281-square-kilometre tenement area) gold, lithium and nickel exploration interests in the Pilbara region of Western Australia. In addition, Macarthur has lithium brine claims in the emerging Railroad Valley region in Nevada.

Qualified person

Ian S. Cooper, BSc, ARSM, FGS FAusIMM, a fellow of the Australasian Institute of Mining and Metallurgy (membership No. 107348), is a consultant of Macarthur and is a qualified person as defined in National Instrument 43-101. Mr. Cooper has reviewed and approved the technical information contained in this news release.

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