ADELONG GOLD LIMITED — Interim / Quarterly Report 2017

Apr 27, 2017

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Activities Report for the Quarter Ending 31[st] March 2017

• 3D Resources acquires two advanced gold projects in Haiti (subject to Due Diligence). These projects have already been extensively drilled and are targeted for production within 2 years. These are the subject of active investigation with the plan to visit Haiti again in May to finalise much of the Due Diligence. A release of a more comprehensive report on the project is expected to be made over the next month.

• Following grant of a Mining Entry Permit to enter the Aboriginal reserve over the prospective Cosmo Newberry Gold project, the company has engaged a specialist geochemical consultant to undertake the initial reconnaissance. Company is awaiting final clearance from the Aboriginal groups to start the program

• A complete reassessment of the Halls Creek tenement package has been undertaken using the detailed airborne magnetics to target and prioritize areas for follow up exploration during the 2017 field season starting in this quarter.

1. Haiti Gold Projects

The company announced in the last month, that it had entered a Heads of Agreement to acquire two gold projects in Northern Haiti that are located within 30km of each other and close to the international port and airport of Cap Haitian.

The acquisition involves 3D Resources Ltd acquiring up to a 75% interest in two Haitian companies, which in turn own the Morne Bossa and Grand Bois Gold Deposits. This acquisition is subject to due diligence which the company expects to conclude during the next quarter.

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Location of Morne Bossa and Grand Bois Areas . Both projects are close to the port of Cap Haitien and major roads(Highway #1 to the Port Au Prince runs past Grand Bois and Highway#3 is located closeto Morne Bossa

Morne Bossa

The Morne Bossa deposit was the subject of a UN aided exploration program with follow up exploration by other companies. Initial work had focused on the broader gold mineralization and had targeted a large scale heap each gold project. More recent work focused on the higher grade core that culminated in a positive feasibility study based on a plan to treat the oxide resources in a conventional CIP process. To date there has been at least 20 diamond drill holes into this high grade core to this deposit. In 2016 the then owner of Morna Bossa acquired the Grand Bois project thereby opening up the potential for the projects to be combined and potentially increasing the scale of the operation.

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Typical cross section across the
deposit showing gold grades
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Shape of potential ore body at 1g/tAu
Cutoff Grade
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Drilling carried out over Morne Bossa Deposit

Grand Bois

Grand Bois deposit and project area has been the subject of extensive exploration in the past including programs of drilling by Billiton and Newmont. Over 12,000m of diamond drilling has been completed on the property targeting extensive geochemical anomalies that demonstrate the presence of a large scale mineralizing system in the area.

Some of this exploration drilling has also focused on possible targets for a porphyry copper and VMS style deposits, but 75 of these drill holes have defined an oxide gold cap to the deposit. This oxide resource is the initial focus of the company’s attention as it offers the prospect of a relatively simple project to develop and scope to integrate with the Morne Bossa Project. However, the overall exploration potential of this permit is potentially quite significant and will be investigated further once a base is established in the country.

The extent of the gold anomaly and oxide gold resource together with past drilling.

Typical Cross sections across the Oxide Resource showing grades.

The company plans to revisit Haiti in early May to progress its due diligence on the projects and have engaged CPC Engineering (Kalgoorlie) to accompany it and to assist in the assessment of plant requirements and also assess the plant sites proposed for these potential mines. The Company has been highly encouraged to date by the government support for this project and their desire to get the mine into production quickly. The Company is therefore confident of fast tracking the project once due diligence is complete.

2. Cosmo Newberry Gold Project (3D Resources 100% ,except E38/2274 3D Resources 75%)

During the quarter, the company engaged HGS Exploration Services to undertake an initial reconnaissance of the Cosmo Newberry project area and in particular to undertake some orientation surveys to test the best geochemical exploration techniques for use in that area. A program was submitted to the Cosmo Newberry Aboriginal Corporation that administer the Aboriginal Reserve as well as the Yilka Land claimants. The company is awaiting final approvals from the Aboriginal groups to undertake the program and expects to commence work very soon.

3. Halls Creek Joint Venture(3D Resources 80%)

Exploration focus for the Halls Creek joint venture has shifted towards locating additional resources to those outlined by drilling of the Mt Angelo North deposit and is aimed at exploring the highly prospective Koongie Park Formation for additional VMS Style Copper-Lead Zinc deposits.

During the quarter there has been a total reassessment of the prospective areas within the license using the high resolution magnetic data that is available as a by-product of an earlier HeliTEM survey completed by the Halls Creek Joint Venture.

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Geological Interpretation of E80/3496 surrounding Mt Angelo North and Mt Angelo Porphyry. A similar interpretation has been completed for the Northern Licenses.

Given that large areas of the prospective Koongie Park formation are buried beneath cover in the license areas, this re-interpretation of the airborne magnetic data provides a geological interpretation that can assist with prioritizing targets based on the regional geochemical and Airborne EM surveys harried out by the Halls Creek Joint Venture. As highlighted by the December quarter these anomalies are extensive and needed to be prioritized before field work recommences in the next quarter.

3. Corporate

The company placed the shortfall from the 1 for 1 Rights Issue during the March quarter thereby finalizing its $1.1Million capital raising.

As announced in April, 3D Resources has entered a Heads of Agreement and paid a $100,000 refundable deposit, to acquire two Haitian Companies that hold the rights to two gold deposits in Northern Haiti. The details of this acquisition (subject to due diligence) is contained in the Company’s previous announcements.

TENEMENTS

Project and Location	Tenements Held At End at Commencement ofQuarter	Tenements Acquired or Disposed of During Quarter	Beneficial Interest at End of Quarter	Notes
Halls Creek Joint Venture, East Kimberly WA	E80/3370, E80/3496, E80/3517, M80/247,	No Change, No Change, No Change, No Change	80%, 80% 80% 80%	Dept of Mines and Petroleum granted an extension to all three Exploration Licenses and a program now underway focused on expanding resources through additional VMS discoveries.
Cosmo Newbery, Laverton WA	E38/2274, E38/2627, E38/2774 E38/2850 E38/2851	No Change, No Change, No Change, No Change, No Change	75% 100% 100% 100% 100%	Agreement reached over Aboriginal Reserve and a Mining Entry Permit issued by Minister for Aboriginal Affairs at end of December. An initial exploration program planned for the nextquarter

Information in this “ASX Announcement” relating to Exploration Results and geological data has been compiled by Mr. Peter Mitchell who is a Member of the Australian Institute of Mining and Metallurgy and is Managing Director of 3D Resources Ltd. He has sufficient experience that is relevant to the types of deposits being explored for and qualifies as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code 2012 Edition). Peter Mitchell has consented to the release of the announcement.

For Further Information, Contact

Peter Mitchell (Managing Director) Andrew Draffin (Company Secretary)

Telephone: +61 4 0088 0309 Telephone: +61 3 9620 0033