ADMIRALTY RESOURCES NL. - Capital/Financing Update 2012

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ASX ANNOUNCEMENT Date: 28 June 2011

Extension of magnetic susceptibility west of Mariposa confirmed by supplementary ground magnetic survey

The Board of Admiralty Resources NL (“ Admiralty ” or “the Company ”) is pleased to announce that Quantec Geoscience Chile (‘ Quantec ”) has finalised the interpretation of the results of a supplementary high resolution ground magnetic survey performed at the Mariposa Prospect, located within the Harper South iron ore district, in the Atacama Region, Chile.

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The survey, completed by Quantec Geoscience Chile, in March 2011 was designed ad a follow up of an initial survey performed in September 2011, which covered two of the targets within Harper South, Mariposa and La Chulula.

Above: 3D inversion of the ground magnetic survey results, showing magnetic susceptibilities at 0.60, 0.70, 0.80 and 0.90 S.I. units.

The 3-D inversion of the results of Phase I showed the Mariposa Prospect located in the centre of the survey grid and exhibiting an oval shape with two branches, dipping into the western direction and registering magnetic susceptibility levels higher than 0.9 S.I. units.

Below: Map of magnetic susceptibility at 400m elevation.

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The purpose of Phase II was to fully define the extension of the magnetic response in Mariposa and clearly separate it from the La Chulula Prospect at the horizontal UTM coordinate 6826500.

Phase II has confirmed the continuation of the Mariposa ore body towards the west of the grid, although with levels of magnetic susceptibility ranging from 0.1 to 0.5 S.I. units.

Admiralty Resources NL ABN 74 010 195 972 Tel: +61 3 9620 7144 | Fax: +61 3 8677 6949 Registered in Australia Email: [email protected] Registered Office: Level 16, 379 Collins Street, Melbourne Victoria 3000 Australia Website: www.ady.com.au

The combined results of Phase I and II has confirmed the following characteristics for the Mariposa Prospect:

Lateral dimensions of 300m x 600m;
Depth up to 300m;
Magnetic susceptibility levels higher than 0.9 S.I. units between 500m and 200m elevations;
It is fully confined within the boundaries of Admiralty’s property in Harper South;
Extended magnetic field west of Mariposa; and
It is located near the surface.

A preliminary review of the results of the 3D inversion of the ground magnetic survey by Goldberg Resources, Admiralty’s external geological consultants, appears to show that the West of Mariposa may be a traditional IOCG type deposit type (Iron Oxide Copper Gold) and may join the targets on the West of Harper South, Mal Pelo and La Vaca.

Admiralty’s management will review the results in depth with Golberg Resources and an exploration plan for the west of Mariposa and west of Harper South will be put in place in order to be able to integrate the current results with other geophysical and geological information to validate any potential economic mineralisation.

The full report is attached to this announcement.

Yours faithfully, ADMIRALTY RESOURCES NL PER:

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Stephen C. Prior

Managing Director

ADY – ASX Announcement – 28 June 2012 – Extension of magnetic susceptibility west of Mariposa confirmed Page 2

About Admiralty Resources NL

Admiralty Resources NL is a public diversified mineral exploration company listed in the Australian Securities Exchange (ASX: ADY) with mineral interests in Chile and in Australia.

Admiralty’s flagship projects are the iron ore districts in Chile: Harper South (2,498 Ha), Pampa Tololo (3,455 Ha) and Cojin (600 Ha). The districts are located in prime locations, with close and easy access to the Panamerican Highway (a major route), a railway line and operating shipping ports.

Admiralty’s projects in Australia are the Bulman project , a lead and zinc project located in the NT and the Pyke Hill project, a cobalt and nickel project in WA whose mining lease is 50% owned by Admiralty.

About Admiralty in Chile

The Harper South district (“Harper South”) is the most advanced district in respect to exploration. To date, seven targets have been confirmed as carriers of magnetite style mineralisation: Mariposa, La Chulula, Soberana, Media Soberana, Negrita, La Vaca and Mal Pelo.

Mariposa is the most developed target and it has a JORC compliant resource. A 3,000m diamond drilling programme was performed in early 2012 and upgraded resource statement is expected in the 3[rd] quarter of 2012. An engineering mine plan (or Prefeasibility Study) to produce 1.2 million tonnes of finished product per annum has been commissioned to Redco Mining Engineers and results are expected in September 2012.
La Chulula . A high resolution ground magnetic survey carried out in 2011 showed it as the ore body with highest susceptibility and depth within Harper South. A 600m test drill hole was sunk in February 2012 and a 2,650m reverse circulation drilling campaign is currently taking place, with a resource statement being expected in the third quarter and a reserve statement in the fourth quarter of 2012.
Soberana . Redco Mining Engineers are working on an early mine production study out of Soberana and results are expected before the end of 2012.

The Pampa Tololo district. A high resolution ground magnetic survey carried out in 2011 identified three targets: Cochrane, O’Brien and Simpson. A reverse circulation drilling campaign is scheduled to commence at Simpson in July 2012, with a resource statement expected in the fourth quarter of 2012.

The Cojin district. It is the least advanced of the Admiralty’s projects in Chile, with the first piece of exploration work being a high resolution ground magnetic survey carried out in 2012. The survey identified 5 targets in total with 3 of them showing great depth and high susceptibility.

ADY – ASX Announcement – 28 June 2012 – Extension of magnetic susceptibility west of Mariposa confirmed Page 3

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QUANTEC GEOSCIENCE LTD 3D MAGNETIC INVERSION REPORT

HARPER SOUTH DISTRICT MARIPOSA PROSPECT HILE (C ) ON BEHALF OF ADMIRALTY MINERALS CHILE PTY LTD AGENCIA EN CHILE

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KEVIN KILLIN, PGEO JIMMY STEPHEN, PH

QUANTEC GEOSCIENCE LTD 146 SPARKS AVE, TORONTO, ONTARIO, M2H 2S4, CANADA PHONE: (416) 306‐1941 / FAX: (416) 306‐1949 WWW.QUANTECGEOSCIENCE.COM

15/06/2012

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EXECUTIVE SUMMARY

INTRODUCTION

A high resolution ground magnetic survey was carried out by Quantec Geoscience over the Mariposa Prospect, in the Harper South District area located southwest of town of Vallenar, in the Atacama region, Chile, on behalf of Admiralty Minerals Chile Pty Ltd. Agencia en Chile during August‐September 2011 (Phase I) and February‐March 2012 (Phase II).

The results of Phase I of the ground magnetic survey performed in the NE area of the Harper South District were presented in a single report that delineated a strong magnetic response with regions of high and low magnetic intensity in two clearly identifiable targets: Mariposa and La Chulula , separated by horizontal UTM coordinate 6826500.

Phase II was carried out following a review of the first phase and considering the size of both targets and the potential continuation of magnetic response on the west of Mariposa and south of La Chulula and its purpose was to fully define the extension of these anomalous zones and issue separate reports for each of the prospects.

This report discusses the 3D inversion results of Mariposa Prospect where the ground magnetic survey consisted of 24 EW trending lines, having lengths of about 750m‐1500m, spaced at 50m apart, covering an approximate area of 1.25 km[2] . Figure 1‐2 on page 9 of this report shows the lines surveyed over the Mariposa Prospect in both phases, with the second phase mostly comprising lines from vertical UTM coordinates 321250 to 322250.

The magnetic data were recorded every 10 meters during Phase I and continuously recorded using a walking magnetometer during Phase 2 along the lines. A hand‐held Garmin GPS unit was used to collect positioning information at each station. A magnetic base station was used to correct diurnal magnetic variations.

SURVEY OBJECTIVES

The purpose of the ground magnetic survey within the Mariposa Prospect was the identification of structural trends and the detection and definition of magnetite style mineralization and alteration patterns and to define extensions of potential targets for iron mineralization both at depth and along strike for drill targeting.

RESULTS

The ground magnetic survey conducted over the Mariposa Prospect was successful at detecting and delineating very strong positive and negative anomalous patterns. The 3D inversion results obtained with the MAG3D UBC code suggested the presence of one potential targets of interest for the economic exploration of iron mineralization, which is named as Mariposa .

Phase I showed the target Mariposa as being located in the center of the survey grid and exhibiting a complex oval shape with two branches, dipping into the western direction and registering magnetic susceptibility levels higher than 0.9 SI units.

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Phase II has confirmed the continuation of the Mariposa ore body towards the west of the grid, although with lower levels of magnetic susceptibility, ranging from 0.1 to 0.5 SI units (west area of the lines L16N to L24N).

In general, Mariposa appears as a target yielding a maximum depth of about 300m, registering magnetic susceptibility levels higher than 0.9 SI units between 500m and 200m elevations and confined within the boundaries of Admiralty Minerals Chile Pty Ltd Agencia en Chile.

Based on the 3D inversion results of magnetic data over the prospect, it is recommended to further integrate this result with other available geophysical / geological information to choose test drill sites to validate any potential economic mineralization.

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LE OFCONTENTS	LE OFCONTENTS
List of Figures ........................................................................................................................................ 5
List of Tables .......................................................................................................................................... 5
1	Introduction ............................................................................................................................. 6
1.1	Survey Objectives ............................................................................................................. 6
1.2	General Survey Information ............................................................................................. 6
2	Results and Interpretation ..................................................................................................... 10
2.1	Description Mag3D inversion procedure ....................................................................... 10
2.2	Data and Mag3D parameters ......................................................................................... 10
2.3	Digital Archive ................................................................................................................ 11
2.4	Discussion of Results ...................................................................................................... 11
	2.4.1 Depth (Elevation) Slices .......................................................................................... 16
	2.4.2 Vertical Cross‐Sections ........................................................................................... 16
	2.4.3 Susceptibility Iso‐surfaces ...................................................................................... 16
	2.4.4 Targets .................................................................................................................... 22
3	Conclusions and Recommendations ...................................................................................... 23
4	Statement of Qualifications and Competent Person Statement ........................................... 24
A	Geosoft Plan Maps of the 3D magnetic Susceptibility Models .............................................. 26
B	References.............................................................................................................................. 34

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LIST OF FIGURES

Figure 1‐1: General project location. .................................................................................................... 8 Figure 1‐2: Location map and survey layout. ........................................................................................ 9 Figure 2‐1: Residual magnetic anomaly (upward continued to 25m) of the Mariposa Prospect (a) and calculated susceptibility voxel model (b). ............................................................................ 12 Figure 2‐2: Combined horizontal plan slices and vertical sections (NW looking). .............................. 13 Figure 2‐3: Plan map slices of magnetic susceptibility at different elevations. .................................. 14 Figure 2‐4: Selected vertical sections of magnetic susceptibility. ...................................................... 15 Figure 2‐5: Plan maps of magnetic susceptibility at every 100m elevation. ...................................... 17 Figure 2‐6: Vertical sections of magnetic susceptibility along selected lines. .................................... 18 Figure 2‐7: Susceptibility iso‐surfaces for 0.6 SI, 0.7 SI, 0.8 SI, and 0.9 SI units. ................................. 19 Figure 2‐8: 3D view of the Mariposa Prospect from susceptibility iso‐surfaces at 0.75 SI, 0.85 SI, 0.90 SI and 0.95 SI units, all NE looking. ...................................................................................... 22

LIST OF TABLES

Table 2‐1: 3D magnetic inversion parameters for Mariposa Prospect. .............................................. 11

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1 INTRODUCTION

This report presents the 3D inversion results of the ground magnetic survey carried out in August‐ September 2011 (Phase I) and February‐March 2012 (Phase II) over the Mariposa Prospect, in the Harper South District, on behalf of Admiralty Minerals Chile Pty Ltd. Agencia en Chile.

This report reflects the results of the 3D magnetic inversion performed with 3D UBC magnetic inversion code[1] developed by UBC‐GIF. The results are presented as horizontal depth slices at different elevations, vertical sections and iso‐surfaces of susceptibility solid model at different calculated susceptibility values.

1.1 SURVEY OBJECTIVES

The explorations objectives of the survey are the identification of structural trends and the detection and definition of magnetite style mineralization and alteration patterns and to define extensions of potential targets for iron mineralization both at depth and along strike for drill targeting.

The Harper South District is located south of the magnetic equator where the geomagnetic field has an inclination of ≈‐28°, a declination of ≈0.5° and average amplitude of 23600 nanoTesla (nT).

The ground magnetic survey should provide excellent means of delineating highly magnetic target mineralization including magnetite and other magnetic minerals. In addition, the ground magnetic survey can be used as a mapping tool for mapping geological contacts and mafic and ultramafic intrusive bodies.

1.2 GENERAL SURVEY INFORMATION

Quantec Project No.: CH00697C Client: Admiralty Minerals Chile Pty Ltd. Agencia en Chile Client Address: Padre Mariano 87, Oficina 101 Providencia, Santiago Chile Client representative: Claudio Ferrada V. Project Name: Mariposa Prospect (within the Harper South District) Survey Type: Ground magnetics

1 MAG3D ver.4.0

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Project Survey Period: Phase I: August‐September, 2011 Phase II: February‐March 2012 General Location: Approximately 13 km southwest of Vallenar Province Atacama Region District Harper South Nearest Settlement: Vallenar Datum & Projection: PSAD56 UTM Zone 19J Latitude & Longitude: Approx. 070°49’12”W, 28°40'34”S UTM position: Approx. 322370m E, 6826885m N List of Claims Surveyed 24 Lines

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Figure 1‐1: General project location[2] .

2 Image downloaded from Google Earth™, 2012/06/01

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‐ Figure 1 2: Location map and survey layout.

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2 RESULTS AND INTERPRETATION

2.1 DESCRIPTION MAG3D INVERSION PROCEDURE

The 3D magnetic inverse problem is formulated as an optimization problem where an objective function of the model is minimized subject to certain constraints. For magnetic inversion, the first question that arises concerns definition of the "model". Two possible choices are the susceptibility K and In (K), but any function g (K) can, in principle, be used. In general, K is used since the field anomaly is directly proportional to the susceptibility that varies on a linear scale. But depending upon the expected dynamic range of susceptibility and the physical interpretation attached to its value or variation, it may be that In (K) is more desirable. To perform a numeric solution the model objective function is discredited using finite difference approximation on the mesh defining the susceptibility model and then defining a 2‐norm misfit measure. The inverse problem is then solved by finding a model m which minimise the objective function Φm and misfits the data by a pre‐determined amount. In summary the methodology providing a basic components for the 3D magnetic inversion consist in forward modeling, a model objective function that incorporates a depth weighing, a data misfit function, a trade‐off parameter that ultimately determines the quality of the fit and the logarithmic barrier method to obtain the solution with positivity, although this last option is no longer necessary in the latest version of the software in which upper and lower bounds can be defined. By default the program uses susceptibility bounds of [0, 1]. While it is true that some rocks have susceptibility greater than 1.0 S.I. units MAG3D assumes small susceptibilities. However, in the case of very high magnetic susceptibilities, the relation between the incident and induced magnetization is no longer linear and the problem becomes more complicated. This, inverting the data in the presence of very high susceptibilities is still a topic of research, and the current version of MAG3D (4.0) does not allow for high susceptibilities in the solution.

2.2 DATA AND MAG3D PARAMETERS

The magnetic data were presented in Geosoft database with X, Y coordinates in UTM zone 19S (WGS84 datum) and raw data and diurnally corrected data. The coordinates were then re‐projected into Psad56 /UTM zone 19S coordinate system. The data underwent further processing including despiking using a non‐linear filtering followed by a smoothing filter (upward continuation of 25m). The residual magnetic anomaly was calculated by removing the regional component (IGRF) from the corrected data. The elevations derived from the SRTM were used for station elevations.

The input data for the MAG3D inversion code[3] was the filtered residual magnetic anomaly with station location and a topographic file derived from the SRTM. This report discusses the data and inversion results within the Mariposa Prospect. However, the 3D inversion used other magnetic data available around this prospect to achieve a better 3D solution. The size of the mesh in the horizontal direction (EW and NS) was fixed at 20m, whereas it was variable in the vertical direction, starting from 10m and increasing gradually up to 100m. The inversion was carried out with no constraints using a homogenous half space of 0.001 SI.units (Système International). The inversion assumes the following assumptions:

The magnetic susceptibility varies within a range of [0, 1] and there is no negative susceptibility.
Only induced magnetization is in effect and there is no remnant magnetization.

3 UBC‐GIF, 2005

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A comprehensive overview about the inversion theory can be found in the papers listed in the References section of this report.

The inversion parameters are provided in Table 2‐1 below.

Table 2‐1: 3D magnetic inversion parameters for Mariposa Prospect.

*Table 2‐1: 3D magnetic inversion parameters for Mariposa Prospect.*	*Table 2‐1: 3D magnetic inversion parameters for Mariposa Prospect.*

UBC 3D Magnetic Inversion Parameters
No. of inverted data points	3,031
Mesh size	109 x 122 x 145
EW cell size	20m
NS cell size	20m
Vertical mesh size	Variable(startingfrom 10m)
Weightingoption	depth
Mode	Chi factor(=1)
Initial model	Half‐space(0.001 SI)
Iterations	6

2.3 DIGITAL ARCHIVE

The DVD attached to this report contains a copy of all the inversion results, Geosoft files including the 3D voxel, 3D inversion results in XYZ format, and an electronic copy of this report.

2.4 DISCUSSION OF RESULTS

Figure 2‐1 illustrates the residual magnetic anomaly (upward continued to 25m) used for the inversion and the susceptibility voxel model (3D solution) of the lower boundary of which is clipped at 0.25 SI. The residual magnetic anomaly shows very strong anomalous patterns with alternating strong negative (<‐ 1700 nT) and strong positive anomalies (>3000 nT). The main feature seems to be roughly trending north‐northwest in the survey grid. This anomaly is well modelled in the 3D inversion as seen in the voxel model. The top and bottom of the voxel model in Figure 2‐1 is clipped at 400m and 0m elevations respectively for better illustration of the highly susceptible zones.

In order to analyze the 3D results, a series of plan maps (elevation slices) and vertical sections were generated from the voxel model. Figure 2‐2 shows a 3D view of a combination of some horizontal slices and vertical sections. Separate figures are also included for elevation slices and vertical sections in Figure 2‐3 and Figure 2‐4 respectively for reference.

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Figure 2‐1: Residual magnetic anomaly (upward continued to 25m) of the Mariposa Prospect (a) and calculated susceptibility voxel model (b).

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Figure 2‐2: Combined horizontal plan slices and vertical sections (NW looking).

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Figure 2‐3: Plan map slices of magnetic susceptibility at different elevations.

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Figure 2‐4: Selected vertical sections of magnetic susceptibility.

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2.4.1 DEPTH (ELEVATION) SLICES

A series of magnetic susceptibility horizontal elevation slices were extracted from the 3D model solution and presented for analysis. The elevations are ranging from 500m to ‐200m at 100m interval (Figure 2‐5).

The near surface plan slices at 500m to 200m clearly depict the main susceptibility zone with a complex shape and susceptibility values greater than 0.9 SI units, identified as target Mariposa . This zone may be interesting to explore any possible association with iron rich formations.

Mariposa appears to be a reasonable target due to its high susceptibility and dimensions. Though bearing a complex shape, it exhibits a lateral extension reaching maximum of about 300m x 600m at 400m elevation. The body thins out vertically, yielding a maximum depth of about 300m. In general, the Mariposa target appears to be mostly confined within the prospect boundary.

2.4.2 VERTICAL CROSS‐SECTIONS

Susceptibility vertical sections corresponding to 9 selected survey lines (L04, L08, L10, L12, L14, L16, L18, L20 and L22) are illustrated in Figure 2‐6. Most of these lines show the high susceptibility target Mariposa in various dimensions. The results are similar as observed along the depth slices, except the vertical extent is more highlighted in these sections.

Sections L10 to L20 clearly highlight the Mariposa target. Section L12 depicts a complex structure with nearly 2 branches.
The top of Mariposa appears to be in the shallow sub‐surface, which shows a thickness of about 300m.
The target body shows a general westward dip, as clearly evidenced from sections L10, L12 and L16.

2.4.3 SUSCEPTIBILITY ISO‐SURFACES

Besides the horizontal and vertical slices, susceptibility solid models represented as iso‐surfaces for susceptibility values of 0.6 SI, 0.7 SI, 0.8 SI and 0.9 SI units were generated and presented under different viewing angles in Figure 2‐7.

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‐ Figure 2 5: Plan maps of magnetic susceptibility at every 100m elevation.

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‐ Figure 2 6: Vertical sections of magnetic susceptibility along selected lines.

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----- Start of picture text -----

Looking
North‐East
Looking
North‐West
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‐ ‐ Figure 2 7: Susceptibility iso surfaces for 0.6 SI, 0.7 SI, 0.8 SI, and 0.9 SI units.

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----- Start of picture text -----

Looking
East
Looking
West
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‐ ‐ Figure 2 7 (cont): Susceptibility iso surfaces for 0.6 SI, 0.7 SI, 0.8 SI, and 0.9 SI units.

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----- Start of picture text -----

Looking
North
Looking
South
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‐ ‐ Figure 2 7 (cont): Susceptibility iso surfaces for 0.6 SI, 0.7 SI, 0.8 SI, and 0.9 SI units.

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2.4.4 TARGETS

The 3D m agnetic inversion resul t s and their interpretati o n in the M a riposa Prospect delineated a potential target for ir o n mineraliza t ion exhibiting very high s u sceptibility ( >0.9 SI units ) .

Mariposa – Complex s hape body l o cated in the central portion of the pr o spect, exhibiting two branches with maximum dimen s ions up to about 300m x 600m x 300m with top l o cated near t he surface ( F igure 2‐8). Thi s target see m s to be di p ping weste r n direction. The body i s surrounde d by areas h aving magnetic susceptibili t y averaging 0.5 SI unit s and is confined within the bound a ries of Ad m iralty Minerals C hile Pty Ltd, Agencia en C hile.

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Figure 2‐8: 3D view of the Mariposa Prospect from susceptibility iso‐surfaces at 0.75 SI, 0.85 SI, 0.90 SI and 0.95 SI units, all NE looking.

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QUANTEC GEOSCIENCE LTD

3 CONCLUSIONS AND RECOMMENDATIONS

The ground magnetic survey carried out within the Mariposa Prospect was successful at detecting very strong positive and negative anomalous patterns. The 3D inversion results obtained with the MAG3D UBC code highlighted one potential target with very high susceptibility greater than 0.9 SI units. The identified target, Mariposa , may be further explored for validating any potential economic mineralization in the region.

The targets Mariposa , is located in the center of the survey grid and exhibits a complex shape dipping in the western direction. The body reaches its maximum lateral extent at 400m elevation with 300m x 600m and exhibits a thickness of up to 300m.

Respectfully Submitted

Toronto, ON, the 15/06/2012,

Kevin Killin, PGeo Quantec Geoscience Ltd

Jimmy Stephen, PhD Quantec Geoscience Ltd

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4 STATEMENT OF QUALIFICATIONS AND COMPETENT PERSON STATEMENT

KEVIN KILLIN, PGEO

I, Kevin J. Killin, declare that

I am a Professional Geophysicist with residence in Whitby, Ontario and am presently employed as the Vice President of Interpretation overseeing the interpretation group with Quantec Geoscience Ltd., Toronto, Ontario.

I obtained an Honours Bachelor of Science Degree (HBSc), in Geological Geophysics from the University of Western Ontario in London Ontario, in 1986, including a Geology degree and Geophysics degree.

I am a Professional Geophysicist, with license to practice in the Province of Ontario (APGO member # 0823).

I am a member of the Prospectors and Developers Association of Canada, the Canadian Exploration Geophysics Society (KEGS), and the American Geophysical Union (AGU).

I have no interest, nor do I expect to receive any interest in the properties or securities of Admiralty Resources NL , its subsidiaries or its joint‐venture partners;

I have reviewed the 3D inversion results and this Geophysical Report. The statements made in this report represent my professional opinion in consideration of the information available to me at the time of writing this report.

Toronto, Ontario, the 15/06/2012

Kevin Killin, H.BSc. P.Geo.

Quantec Geoscience Ltd.

Competent Person Statement

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Kevin Killin, who is a member of the Association of Professional Geoscientist of Ontario (“APGO”). APGO is a "Recognised Overseas Professional Organisation" ("ROPO") included in the list published by the ASX.

Kevin Killin is a full time employee of Quantec Geoscience Ltd. and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Kevin Killin consents to the inclusion in the report of the matters based on his information and context in which it appears.

QUANTEC GEOSCIENCE LTD

JIMMY STEPHEN, PHD

I, Jimmy Stephen, declare that:

I am a Geophysicist with residence in Toronto, Ontario and am presently employed in this capacity with Quantec Geoscience Ltd., Toronto, Ontario;

I obtained my Bachelor of Science Degree (B.Sc.), Physics from Mahatma Gandhi University, India in 1994, a Master of Science and Technology Degree (M.Sc.Tech.), Marine Geophysics from Cochin University of Science and Technology, India in 1998, and Doctor of Philosophy (PhD), Geophysics from Swami Ramanand Teerth Marathwada University, India in 2004;

I have practiced my profession continuously since November 1998 in India, Middle East and North America.

I am a member of the Society of Exploration Geophysicists (SEG), and the American Geophysical Union (AGU);

I have no interest, nor do I expect to receive any interest in the properties or securities of Admiralty Resources NL , its subsidiaries or its joint‐venture partners;

I undertook the 3D inversions of the magnetic data, and have compiled the results and authored this 3D magnetic interpretation report.

The statements made in this report represent my professional opinion in consideration of the information available to me at the time of writing this report.

Toronto, Ontario, the 15/06/2012

Jimmy Stephen, PhD Quantec Geoscience Ltd.

QUANTEC GEOSCIENCE LTD

A GEOSOFT PLAN MAPS OF THE 3D MAGNETIC SUSCEPTIBILITY MODELS

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Plan Map at 500m Elevation of Magnetic Susceptibility.

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Plan Map at 400m Elevation of Magnetic Susceptibility.

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Plan Map at 300m Elevation of Magnetic Susceptibility.

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Plan Map at 200m Elevation of Magnetic Susceptibility.

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Plan Map at 100m Elevation of Magnetic Susceptibility.

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Plan Map at 0m Elevation of Magnetic Susceptibility.

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‐ Plan Map at 100m Elevation of Magnetic Susceptibility.

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‐ Plan Map at 200m Elevation of Magnetic Susceptibility.

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B REFERENCES

B.1 MAGNETIC 3D INVERSION

Li, Y. and Oldenburg, D. W., 1996, 3D‐inversion of magnetic data: Geophysics, 61, no 02, 394‐408.

Li, Y. and Oldenburg, D. W., 1998, Separation of regional and residual magnetic field data: Geophysics, 63, no. 02, 431‐439.

Li, Y. and Oldenburg, D. W., 2000, Joint inversion of surface and three‐component borehole magnetic data, Geophysics, 65, no. 2, 540‐552.

MAG3D, A program Library for Forward Modeling and Inversion of Magnetic Data Over 3D Structures, ver. 4.0, 2005 UBC‐GIF.

AI assistant

ADMIRALTY RESOURCES NL. Capital/Financing Update 2012

64309_rns_2012-06-27_bff57fa6-b539-4deb-9864-fec6a382fd4c.pdf

ASX ANNOUNCEMENT Date: 28 June 2011

About Admiralty Resources NL

About Admiralty in Chile

QUANTEC GEOSCIENCE LTD 3D MAGNETIC INVERSION REPORT

EXECUTIVE SUMMARY

INTRODUCTION

SURVEY OBJECTIVES

RESULTS

TABLE OF CONTENTS

LIST OF FIGURES

LIST OF TABLES

1 INTRODUCTION

1.1 SURVEY OBJECTIVES

1.2 GENERAL SURVEY INFORMATION

2 RESULTS AND INTERPRETATION

2.1 DESCRIPTION MAG3D INVERSION PROCEDURE

2.2 DATA AND MAG3D PARAMETERS

2.3 DIGITAL ARCHIVE

2.4 DISCUSSION OF RESULTS

2.4.1 DEPTH (ELEVATION) SLICES

2.4.2 VERTICAL CROSS‐SECTIONS

2.4.3 SUSCEPTIBILITY ISO‐SURFACES

2.4.4 TARGETS

3 CONCLUSIONS AND RECOMMENDATIONS

4 STATEMENT OF QUALIFICATIONS AND COMPETENT PERSON STATEMENT

KEVIN KILLIN, PGEO

Competent Person Statement

JIMMY STEPHEN, PHD

A GEOSOFT PLAN MAPS OF THE 3D MAGNETIC SUSCEPTIBILITY MODELS

B REFERENCES

B.1 MAGNETIC 3D INVERSION

AI assistant

ADMIRALTY RESOURCES NL. — Capital/Financing Update 2012

64309_rns_2012-06-27_bff57fa6-b539-4deb-9864-fec6a382fd4c.pdf

ASX ANNOUNCEMENT Date: 28 June 2011

About Admiralty Resources NL

About Admiralty in Chile

QUANTEC GEOSCIENCE LTD 3D MAGNETIC INVERSION REPORT

EXECUTIVE SUMMARY

INTRODUCTION

SURVEY OBJECTIVES

RESULTS

TABLE OF CONTENTS

LIST OF FIGURES

LIST OF TABLES

1 INTRODUCTION

1.1 SURVEY OBJECTIVES

1.2 GENERAL SURVEY INFORMATION

2 RESULTS AND INTERPRETATION

2.1 DESCRIPTION MAG3D INVERSION PROCEDURE

2.2 DATA AND MAG3D PARAMETERS

2.3 DIGITAL ARCHIVE

2.4 DISCUSSION OF RESULTS

2.4.1 DEPTH (ELEVATION) SLICES

2.4.2 VERTICAL CROSS‐SECTIONS

2.4.3 SUSCEPTIBILITY ISO‐SURFACES

2.4.4 TARGETS

3 CONCLUSIONS AND RECOMMENDATIONS

4 STATEMENT OF QUALIFICATIONS AND COMPETENT PERSON STATEMENT

KEVIN KILLIN, PGEO

Competent Person Statement

JIMMY STEPHEN, PHD

A GEOSOFT PLAN MAPS OF THE 3D MAGNETIC SUSCEPTIBILITY MODELS

B REFERENCES

B.1 MAGNETIC 3D INVERSION

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ADMIRALTY RESOURCES NL. Capital/Financing Update 2012