Mr. Wayne Taylor reports

WOODLAWN DRILLING UPDATE: KATE LENS RETURNS MASSIVE SULPHIDES

Heron Resources Ltd. has completed the first diamond drill hole into the Kate lens at its high-grade Woodlawn zinc-copper project, located in New South Wales, Australia.

Highlights:

• Completion of the first diamond hole targeting Kate lens, with massive sulphides intersected over a downhole intercept of 15.5 metres;
• Reverse circulation drilling also commenced on the updip projection of the A lens;
• Diamond core is being prepared, geotechnically logged and cut for assay 2014.

Woodlawn drilling program

Heron is pleased to report encouraging initial results from the first diamond hole, which has now been completed as part of the diamond drilling program announced in September, 2014.

The first diamond hole WNDD0001 was completed at approximately 425.5 metres, targeting the northern strike extent of the Kate lens. The hole intersected 15.5 metres of predominantly massive sulphides between 373.6 to 389.1 metres downhole, visually estimated to be approximately 12 metres true width. The intersection occurred on a northwest trend about 53 metres from the Kate lens 2013 discovery hole WLTD015, at approximately the same depth from surface. The massive sulphide intercept comprised pyrite, sphalerite, galena and chalcopyrite, typical of the historically mined complex ore and similar to the high-grade material intercepted in the lower part of hole WLTD015.

Samples are being prepared for assay, and results will be released when available, likely to be in four to six weeks.

The hole will now be cased for downhole electromagnetic surveys that will assist in further defining the physical limits of the lens.

Heron's managing director, Wayne Taylor, commented: "It is very pleasing to see further support for the Kate lens discovery, which is, so far, showing consistency with the modelled EM plate conductors. This new discovery continues to shape up as an attractive component of potential future underground development."

Photographs of the mineralized intercept confirm typical Woodlawn complex ore.

The technical information in this news release relating to the exploration results at the Woodlawn project is based on information compiled by Rod Arnold, who is a member of the Australian Institute of Geoscientists. Mr. Arnold is a full-time employee of Heron Resources and has sufficient experience, which is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a competent person as defined in the 2012 edition of the Australasian code for reporting of exploration results and qualified person as this term is defined in Canadian National Instrument 43-101. Mr. Arnold consents to the inclusion in this news release of the information in the form and context in which it appears.

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