AERIS RESOURCES LIMITED — Capital/Financing Update 2016

Aug 2, 2016

3 AUGUST 2016

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ASX/MEDIA RELEASE

AERIS RESOURCES LIMITED (ASX: AIS)

UPDATED ORE RESERVE ESTIMATE FOR THE TRITTON DEPOSIT – CONTAINED COPPER INCREASES BY 32%

Aeris Resources Limited (ASX: AIS) (Aeris or Company) is pleased to announce an update of the Mineral Resource and Ore Reserve Estimates, as at 30 June 2016, for its Tritton deposit at the Company’s Tritton Copper Operations in New South Wales.

The updated Proved and Probable Ore Reserve Estimates for the Tritton deposit is 6.4Mt at 1.6% copper for 100k tonne of contained copper metal. This represents a 32% increase, (by contained metal), on the previous public reported Ore Reserve estimate (as at 30 June 2015) of 4.4Mt at 1.7% coper for 76k tonne of contained copper and is after depletion by mining in the year of 28k tonne contained copper metal.

The increase results from a resource drilling program completed in early 2016 that extended knowledge of the Tritton deposit to approximately 1,250 below surface. An update of the Mineral Resource estimate has also been completed, based on this drilling program. The Tritton deposit remains open at depth and further resource drilling is planned for the future when suitable underground drill locations become available.

Aeris’ Executive Chairman, Andre Labuschagne said “The updated Mineral Resource and Ore Reserve estimates for the Tritton deposit underpin an extension of the mine life at the Tritton Operations to 2023.”

The revised estimates for these deposits are reported in accordance with the JORC Code 2012 standards. The supporting JORC Code 2012 documentation for the updated Mineral Resource and Ore Reserve estimate is attached to this release and posted on the company’s web site.

ENDS

For further information, please contact: Mr. Andre Labuschagne Executive Chairman Tel: +61 7 3034 6200, or visit our website at www.aerisresources.com.au

Media:

Michael Cairnduff Cannings Purple Tel: 0406 775 241 mcairnduff@canningspurple.com.au

About Aeris

Aeris Resources Limited (ASX: AIS) is an established, top 10 independent Australian copper producer and explorer.

The Company’s core asset is its Tritton operations in New South Wales, which produced 30,425 tonnes of copper in FY2016. The existing operations incorporate multiple mines and a 1.8 million tonne per annum processing plant.

Aeris also has an exciting portfolio of highly prospective near mine and regional exploration projects creating a pipeline for future growth and a clear opportunity to leverage the Company’s established infrastructure at Tritton.

Aeris has a highly experienced Board and management team, and is actively reviewing suitable merger and acquisition opportunities.

MINERAL RESOURCE ESTIMATE

RESULTS

The Mineral Resource estimate reference date is 30[th] June 2016. The Tritton deposit has been mined and the Mineral Resource depleted since the previous public report.

Table 1 Classified Mineral Resource for the Tritton deposit as at 30th June 2016

Resource Category	Tonne(kt)	Copper(%)	Contained Copper(kt)
Measured	3,850	1.9	73
Indicated	5,430	1.4	73
Total M&I	9,270	1.6	146
Inferred	1,960	1.2	24
Total	11,240	1.5	169

1. Mineral Resources are quoted as INCLUSIVE of Ore Reserve.

2. Mineral Resource is reported at a 0.6% Cu cutoff grade.

3. Discrepancy in summation may occur due to rounding.

4. Estimate is constrained by the survey stope and development positions for Tritton as at end June 2016.

5. Indicated estimate includes 490k tonne at 2.6% Cu for 12.7 k tonne of copper metal contained in the upper Tritton Pillars between the 4655m RL and 4565m RL that have been down-graded from Measured Resource due to risk.

CHANGE FROM PREVIOUS PUBLIC REPORT

Material changes to the Tritton Mineral Resource from the previous reporting period include mine depletion, additional drilling data resulting in spatial changes to the mineralised system and a revised geological interpretation. Mine production in the period reported between each model from June 2015 to June 2016 was 1,412 thousand tonne at 2.0% copper for 27.6 thousand tonne contained copper. This production depleted the Mineral Resource. Net depletion of the Mineral Resource is different from mine production due to the combined impact of dilution and ore loss during mining as well as variation between estimated and actual Mineral Resource.

The updated resource model has changed noticeably in comparison to the previously reported Mineral Resource which was created in 2012. The differences relate to an increase in drill density and spatial changes to the mineralised system through the previous Indicated and Inferred regions. Additions to the mineralised system are associated with the increased thickness and geometry changes at depth below 4200mRL and extensions to the known mineralised system below 4000mRL.

Table 2 Change in the reported Tritton Mineral Resource since previous public report

Estimate	Resource Category	Tonne(kt)	Copper(%)	Contained Copper(kt)
June 2016	Measured	3,850	1.9	73
	Indicated	5,430	1.4	73
	Total M&I	9,270	1.6	146
	Inferred	1,960	1.2	24
	Total	11,240	1.5	169
June 2015	Measured	2,750	2.1	59
	Indicated	4,620	1.7	79
	Total M&I	7,380	1.9	138
	Inferred	3,140	1.4	45
	Total	10,520	1.7	182
difference	Measured	1,100	‐0.2	14
	Indicated	810	‐0.4	‐6
	Total M&I	1,890	‐0.3	8
	Inferred	‐1,180	‐0.2	‐21
	Total	720	‐0.2	‐13

ORE RESERVE ESTIMATE

RESULTS

The Tritton mine Ore Reserve Estimate as at 30[th] June 2016 is reported in Table 3 . It is reported according to JORC 2012.

Table 3 Ore Reserve Estimate for Tritton deposit as at 30 June 2016

Category	Tonne (k tonne)	Copper %	Contained Copper (k tonne)
Proved Probable Total	3,580 2,790	1.7 1.4	61 39
	6,370	1.6	100

1. Ore Reserves are reported as INCLUSIVE of the supporting Mineral Resource estimate. 2. Discrepancies in summation will occur due to rounding.

CHANGES FROM PREVIOUS ESTIMATE

The Ore Reserve estimate presented in this report is an update that accounts for changes to the Mineral Resource estimate including depletion due to mining in the year since last report. An increase in the Mineral Resource, net of depletion, resulted from a resource drilling program and subsequent geology modelling of the deposit. Measured and Indicated Mineral Resource has been extended to 4000mRL.

The Ore Reserve has been extended to the depth of 4050mRL consistent with the extension of the Indicated Mineral Resource to 4000mRL.

All of the Measured and Indicated Mineral Resource has been assessed for inclusion in the Ore Reserve. All resource that can be converted has been reported as Ore Reserve. Conversion rates of resource to reserve are 80% for that material above 4080mRL and 5% for that material below 4080mRL, (this level is the last of sublevels where high rates of conversion is possible with current mining methods).

Modifying factors applied for dilution and ore loss have been slightly altered from the prior estimate where the estimate now includes some larger stopes. The modifying factors are selected following review of production reconciliation against the Ore Reserve estimate. The reconciliation indicates that the Ore Reserve estimate is within 2% of the actual ore processed for the stopes mined in the year 2015.

The previous Ore Reserve estimate was made as at June 30[th] 2015.

Table 4 Change in Ore Reserve from previous estimate

Estimate	Category	Tonne (k tonne)	Copper %	Contained Copper (k tonne)
June 2016	Proved Probable Total	3,580 2,790	1.7 1.4	61 39
		6,370	1.6	100
June 2015	Proved Probable **Total **	2,359 2,040	1.8 1.7	42 34
		4,399	1.7	76
Difference	Proved Probable Total	+1220	-0.1	+19
		+750	-0.3	+5
		+1970	-0.1	+24

Mr Cox confirms that he is the Competent Person for all the Mineral Resources estimates summarised in this Report and he has read and understood the requirements of the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 Edition). Mr Cox is a Competent Person as defined by the JORC Code, 2012 Edition, having relevant experience to the style of mineralisation and type of deposit described in the Report and to the activity for which he is accepting responsibility. Mr Cox is a Member of the Australasian Institute of Mining and Metallurgy (MAusIMM No. 220544). Mr Cox has reviewed the Report to which this Consent Statement applies. Mr Cox is a full time employee of Aeris Resources Limited.

Mr Ian Sheppard, confirms that he is the Competent Person for all the Ore Reserves estimates summarised in this Report and Mr Sheppard has read and understood the requirements of the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 Edition). Mr Sheppard is a Competent Person as defined by the JORC Code, 2012 Edition, having five years’ experience that is relevant to the style of mineralisation and type of deposit described in the Report and to the activity for which he is accepting responsibility. Mr Sheppard is a Member of The Australasian Institute of Mining and Metallurgy, No. 105998. Mr Sheppard has reviewed the Report to which this Consent Statement applies. Mr Sheppard is a full time employee of Aeris Resources Limited.

Mr Sheppard has disclosed to the reporting company the full nature of the relationship between himself and the company, including any issue that could be perceived by investors as a conflict of interest. Specifically Mr Sheppard holds 22,418,546 options to subscribe for shares in in Aeris Resources Limited. These options are subject to various vesting conditions as described in the Notice of General Meeting dated 13 November 2015. These vesting conditions have not been met at this time.

Mr Sheppard verifies that the Ore Reserve sections of this Report is based on and fairly and accurately reflects in the form and context in which it appears, the information in his supporting documentation relating to Ore Reserves.

THE FOLLOWING SECTIONS ARE PROVIDED FOR COMPLIANCE WITH REQUIREMENTS FOR THE REPORTING OF EXPLORATION RESULTS UNDER THE JORC CODE, 2012 EDITION.

JORC CODE, 2012 EDITION – TABLE 1 REPORT: TRITTON MINERAL RESOURCE

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

• Criteria JORC Code explanation Commentary Sampling 1. Nature and quality of sampling (e.g. cut techniques channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.

  1. All Diamond core samples are based on ½ core. Pre-collar RC samples in waste zones taken as 4 metre composites and re-spit to 1 metre samples when return assays or geology indicate copper or gold mineralisation. Underground samples are collected from drive headings or cross cuts at 1 metre intervals or at geological breaks. Underground samples are collected as rock chips.

  2. All diamond core is aligned, measured and metre marked. All underground face samples are digitally photographed with face positions measured from survey control points and survey pickups. Underground cross cuts are not digitally photographed however their positions are referenced from survey control points.

2. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

1. During all drill programs at the Tritton deposit Aeris Resources Limited have ensured drill contractors completing the works maintain a high industry standard. Diamond drill sample lengths are generally taken at 1.0 metre intervals. At geological boundaries (based on mineralisation textural differences or material changes in chalcopyrite content) the sample length can vary between a minimum of 0.5 metres and maximum of 1.4 metres. Sampling is extended 10m beyond the mineralised system. Exploration and resource definition diamond core drilled from surface which intersected the mineralised Tritton deposit pre 2010 are predominantly NQ2 in size. Resource definition holes drilled during 2010 to 2012 (targeting 4300mRL to 4000mRL) are HQ3 in size while resource definition holes drilled from 2014 onwards (4200mRL to 3900mRL) are NQ2 in size. Underground grade control holes are NQ2 for down holes and LTK60 for up holes. Underground face samples (rock chip) are also collected for grade estimation with ore drives mapped and ore boundaries picked up by survey. All Exploration holes sampled by Aeris Resources Limited for the Tritton Mineral Resource are analysed by a 35 element three stage Aqua Regia digestion with an ICP finish (ME-ICP41) suitable for Cu concentrations between 1 ppm to 10,000 ppm. All Cu samples greater than or equal to 1.0% Cu were re-submitted for an ore digest to determine Cu concentrations greater than 1.0% (ME-OG46).

3. Aspects of the determination of mineralisation that are Material to the Public Report.

4. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.

Criteria	JORC Code explanation	Commentary
		Au assays were completed via fire assay fusion with an AAS finish using a
		30g charge (Au-AA22) suitable for Au grade ranges between 0.01 g/t – 100
		g/t. All Au samples greater than or equal to 1.0 g/t Au were re-submitted for
		an ore grade 30g fire assay charge to determine Au concentrations greater
		than 1.0 g/t Au (Au-AA25). All grade control diamond drill holes and
		underground samples are assayed using the ore grade digest method (ME-
		OG46) for Cu, Fe, Ag, Zn, Pb and S. Au assays are completed via Au-AA25.
		Sample preparation and assaying are completed at the ALS laboratory in
		Orange N.S.W.
Drilling	1. Drill type (e.g. core, reverse circulation, open-	1. All drilling data intersecting the Tritton mineralised system was completed via
techniques	hole hammer, rotary air blast, auger, Bangka,	diamond drilling. A small number of RC drill holes were completed early in
	sonic, etc.) and details (e.g. core diameter, triple	the exploration phase pre 2000. These drill holes targeted up upper portions
	or standard tube, depth of diamond tails, face-	of the mineralised system which has subsequently been mined. Diamond
	sampling bit or other type, whether core is	hole diameter sizes vary from HQ3 and NQ2 for resource definition
	oriented and if so, by what method, etc.).	programs. Grade control hole diameter sizes are NQ2 for down holes and
		LTK60 for up holes. All underground samples are rock chip samples.
Drill sample	1. Method of recording and assessing core and	1. All diamond core recoveries are measured and recorded by Aeris Resources
recovery	chip sample recoveries and results assessed.	Limited field technicians or geologists. Initial drill holes completed by NORD
	2. Measures taken to maximise sample recovery and ensure representative nature of the samples.	targeting the Tritton deposit did not have RQD routinely recorded (BDS006 to BDS125). RC pre-collar sample recoveries were not recorded nor required to be recorded as all material estimated for the Tritton mineralisation is defined
	3. Whether a relationship exists between sample	by diamond drill core. RQD measurements are taken on all core prior to all
	recovery and grade and whether sample bias	sampling. This procedure has been part of the standard drill core processing
	may have occurred due to preferential loss/gain	procedure since 2005.
	of fine/coarse material.	2. Rock competency is very good through the Tritton mineralised system and
		adjoining country rock. Faults intersected are generally sub metre in
		thickness and contain minor amounts of clay/fine susceptible to core loss.
		Industry standard drilling practices are maintained to ensure sample
		recoveries and core presentation remains at a high level.
		3. No significant relationship appears to exist between recovery and grade.
Logging	1. Whether core and chip samples have been	1. All diamond core and RC chips are geologically logged by company
	geologically and geotechnically logged to a level	geologists. All surface holes drilled by Aeris Resources Limited are
	of detail to support appropriate Mineral Resource	geotechnically logged. All logging is to the level of detail to support the Tritton
	estimation, mining studies and metallurgical	style of mineralisation (VMS Besshi style).
	studies.

Criteria	JORC Code explanation	Commentary
	2. Whether logging is qualitative or quantitative in	2. Logging of diamond core and RC samples record lithology, alteration,
	nature. Core (or costean, channel, etc.)	mineralisation, degree of oxidation, structure, RQD and recovery. All
	photography.	exploration core was photographed in both dry and wet form. Underground
	3. The total length and percentage of the relevant	resource definition and grade control holes are photo in wet form only. All RC
	intersections logged.	intervals are stored in plastic chip trays, labelled with intervals and hole
		number. Core is stored in core trays and labelled similarly. Underground
		headings which have been sampled are spatially referenced using survey
		control points. Underground headings which are sampled have a digital
		photography taken.
		3. All RC and core samples were logged in full. Underground samples are
		logged for lithology and structure.
Sub-	1. If core, whether cut or sawn and whether quarter,	1. Diamond core samples are cut using an Almonte automatic core saw. Half
sampling	half or all core taken.	core samples are collected on average at 1.0 m intervals and can vary
techniques and sample preparation	2. If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. 3. For all sample types, the nature, quality and appropriateness of the sample preparation technique.	between 0.5 metres to 1.4 metres. Sample intervals not equal to 1.0 metre generally occur at mineralisation/geology contacts. 2. RC samples for waste sections are collected at 1 metre intervals, with a 1m split and bulk residual collected on the drill rig. The bulk residual was composited to 4 metre intervals by spear sampling. If RC composites returned above background copper or gold values, the stored original 1m split
	4. Quality control procedures adopted for all sub-	was sent to the laboratory for analysis.
	sampling stages to maximise representivity of samples.	3. Samples taken are appropriate for the Tritton mineralisation style (Copper VMS). Half core drill core samples are sent to ALS laboratory in Orange for
	5. Measures taken to ensure that the sampling is	sample preparation and assaying. Upon arrival at the laboratory sample
	representative of the in situ material collected,	weights are recorded. Samples greater than 3kg are crushed via a Boyd
	including for instance results for field	crusher (90% passing 2mm) and rotary split to a sub sample between 2kg to
	duplicate/second-half sampling.	3kg. The sub sample is pulverised via a LM5 to 85% passing 75µm. A 300g
	6. Whether sample sizes are appropriate to the grain size of the material being sampled.	sample is taken from the pulverised material for assaying. Samples less thank 3kg are crushed via a jaw crusher to 70% passing 6mm and the whole sample is pulverised in a LM5 with a 300g sub sample taken for assaying.
		Underground face samples are treated in the same manner as diamond core
		described above.
		4. Sample blanks and industry standards are routinely submitted at a frequency
		of 1:20. Duplicates and Pulps are retained and re-submitted periodically to
		test assay reproducibility.

Criteria		JORC Code explanation	Commentary
			5. Field duplicates from grade control holes are conducted routinely.
			Regression analysis of the field duplicates shows very good correlation. The
			understanding of sample representativeness and grade estimation is also
			reviewed through mine to mill reconciliations and stope reconciliations and
			closing reports. All core samples are visually examined against assay values
			and logged mineralisation.
			6. The sample sizes are considered appropriate to the grain size of the material
			being sampled.
Quality	of	1. The nature, quality and appropriateness of the	1. Mineralisation at the Tritton deposit is associated with primary sulphides.
assay	data	assaying and laboratory procedures used and	Copper mineralisation is primarily associated with chalcopyrite. Copper
and		whether the technique is considered partial or	mineralisation is largely interpreted to be remobilised and varies in nature
laboratory		total.	from fine disseminated spots to zones of erratic +10cm scale stockwork
tests		2. For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations	textures. The assay methods described previously are considered appropriate for the style of mineralisation. Sample preparation methods are also considered appropriate for the style of mineralisation. Review of sample duplicates indicates the assay repeatability is very good.
		factors applied and their derivation, etc.	2. Information regarding assay techniques used for samples taken pre 2005
		3. Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision	cannot be confirmed. However, drill holes completed up to this period are associated with mineralised zones which have already been mined. Aeris Resources Limited are confident the assay methods used would meet industry standards based on the geological protocols in place at the time.
		have been established.	3. No other methods were used to derive assay values for resource estimation.
			4. Laboratory QA/QC samples included the use of blanks, duplicates, standards
			(commercial certified reference materials) and repeats.
Verification		1. The verification of significant intersections by	1. Significant mineralised intersections are reviewed by the logging geologist.
of sampling		either independent or alternative company	QAQC results are reviewed on a batch by batch and monthly basis.
and		personnel.	Deviations from precision tolerances are investigated on a batch by batch
assaying		2. The use of twinned holes.	basis. If grade bias is observed then follow up with the laboratory typically occurs on a monthly basis.
		3. Documentation of primary data, data entry procedures, data verification, data storage	2. No twinned holes were conducted.
		(physical and electronic) protocols.
		4. Discuss any adjustment to assay data.

Criteria		JORC Code explanation		Commentary
				3. All Aeris Resources Limited geological data is logged directly to a Panasonic
				tough book laptop at the core yard using company logging codes. Data is
				logged directly to Acquire (off line) which is then uploaded to the Acquire
				network database once the computer is docked to the office workstation. In
				built Acquire validation occurs at the time of data entry. Assay results are
				returned electronically on a batch by batch basis from the ALS laboratory via
				the webtrieve portal. Returned assay batches are reviewed prior to upload to
				the Acquire database. If a batch fails QAQC procedures then follow up and
				potential reassaying from the laboratory is required. Assay data are not
				uploaded to the Acquire database until a batch passes all QAQC tests.
				4. No adjustments to assay data are made.
Location	of	1. Accuracy and quality of surveys used to locate		1. All surface drill holes completed from 2005 onwards have collar locations
data points		drill holes (collar and	down-hole surveys),	surveyed by using a DGPS by either a contractor or staff surveyor. All pre
		trenches, mine workings and other locations		2005 drill holes were surveyed by either staff surveyor(s) or contractors using
		used in Mineral Resource	estimation.	a theodolite. All underground drill hole collars are surveyed by company
		2. Specification of the grid system used.		surveyors or contractors using a theodolite. Surveys are entered into the Aeris Resources Limited corporate Acquire database. Underground samples
		3. Quality and adequacy of topographic control.		are located spatially against survey stations which are installed by either staff
				or contract surveyors.
				2. Geology interpretations and grade estimates are based on a local Tritton
				Mine Grid (TMG). The TMG is rotated 8.423⁰to the west from AGD 66 true
				north.
				3. Quality and accuracy of the drill collars are suitable for geological
				interpretation and resource estimation. A majority of drill holes intersecting
				the current Mineral Resources are from underground drill holes.
Data spacing		1. Data spacing for reporting	of Exploration Results.	1. Drill spacing across the Tritton deposit vary from approximately 80m (N) x
and distribution		2. Whether the data spacing and distribution is sufficient to establish the degree of geological		40m (RL) to 20m (N) x 20m (RL). 2. As a general rule Measured Mineral Resource is defined from a 20m x 20m
		and grade continuity appropriate for the Mineral		drill spacing. Indicated Mineral Resource is defined from a 40m x 40m drill
		Resource and Ore	Reserve estimation	spacing. Inferred Mineral Resource is defined from drill spacings up to 100m
		procedure(s) and classifications applied.		x 100m. Based on the observed geological continuity from underground
		3. Whether sample compositing has been applied.		develop and drill holes the drill spacing is appropriate.
				3. The Tritton mineralisation is defined sufficiently to define both geology and
				grade continuity for a Mineral Resource estimation and Ore Reserve
				evaluation. The material defined as Measured is suitable for detailed stope
				design.

Criteria	Criteria		JORC Code explanation	Commentary
				4. Samples are composited to 1.0 metre intervals. A majority of the assay data
				are 1.0 metres in length. Within an estimation domain composite lengths are
				created at 1.0 metre intervals from HW to FW. In some instances, the FW
				sample may be less than 1.0 metre in length. Samples greater than or equal
				to 0.5 metres are retained for estimation and those less than 0.5 metres are
				not used for estimation.
Orientation			1. Whether the orientation of sampling achieves	1. Underground drill holes are collared from dedicated HW drill drives. In some
of	data	in	unbiased sampling of possible structures and the	instances, drill holes intersecting mineralisation perpendicular to geology.
relation		to	extent to which this is known, considering the	This is more noticeable on the periphery of the deposit and for holes which
geological			deposit type.	intersect the deposit down dip at oblique angles. This is not considered to
structure			2. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	represent a material issue for Measured and Indicated Mineral Resource. There are a small number of holes intersecting mineralisation below the 4000mRL level which cross cut the deposit at an acute angle. Underground samples taken from development headings do not extend across the entire estimation domain. There is potential for a small amount of bias to occur, however it should be noted that there is only a small number of faces
				sampled per level and the amount of diamond drill data would minimise any
				potential grade bias.
				2. No material issues due to sampling bias have been identified. Based on
				mine to mill reconciliations over the course of mining activities the Tritton
				resource estimate reconciles within tolerance levels.
Sample			1. The measures taken to ensure sample security.	1. Chain of Custody is managed by the Company. Samples are stored on site in
security				polyweave bags containing approximately 5 samples. These bags are
				securely tied, then loaded and wrapped onto a pallet for dispatch to the
				laboratory. The samples are freighted directly to the laboratory with
				appropriate documentation listing sample numbers and analytical methods
				requested. Samples are immediately receipted by a laboratory staff member
				on arrival, with a notification to Aeris Resources Limited of the number of
				samples that have arrived.
Audits		or	1. The results of any audits or reviews of sampling	1. External reviews and audits have been conducted by AMC, Optiro and HDR
reviews			techniques and data.	between 2010 to 2015. No fatal flaws or significant issues were identified.

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2 (not used for Tritton), also apply to this section.)

Criteria	**JORC Code explanation **	Commentary
Database	1. Measures taken to ensure that data has not been	1. All assay results are logged against unique sample numbers. A sampling
integrity	corrupted by, for example, transcription or keying	sheet detailing sample numbers and core / RC intervals is completed prior
	errors, between its initial collection and its use for	to sample collection. During the sampling process each sample interval is
	Mineral Resource estimation purposes.	cross-referenced to the sample number and checked off against the
	2. Data validation procedures used.	sampling sheet. Pre-numbered bags are used to minimize errors. Assay data is received via email in a common electronic format and verified
		against the AcQuire database.
		2. Data validation and QAQC procedures are completed by staff geologists.
		Geology logs are validated by the core logging geologist. Assay data is not
		uploaded to the corporate Acquire database until all QAQC procedures
		have been satisfied.
Site visits	1. Comment on any site visits undertaken by the	1. Brad Cox (Aeris Resources Limited – Geology Manager) has made
	Competent Person and the outcome of those	numerous site visits during the latest resource definition drill program from
	visits.	2014 onward.
	2. If no site visits have been undertaken indicate
	why this is the case.
Geological	1. Confidence in (or conversely, the uncertainty of)	1. The confidence in the Tritton geology model is high. The deposit has been
interpretation	the geological interpretation of the mineral	mined for over 10 years. During this period a significant amount of
	deposit.	geological data has been collected from drill core and underground
	2. Nature of the data used and of any assumptions made.	mapping. This information has been used to create the geology models which as each level is developed are showing good correlation between interpreted domain boundaries and their actual location (< 5 metres
	3. The effect, if any, of alternative interpretations on	difference).
	Mineral Resource estimation.	2. Data used for the geological interpretation includes drill hole data (diamond
	4. The use of geology in guiding and controlling	core) and underground mapping. There are not significant assumptions
	Mineral Resource estimation.	made other than the mineralised system extends between drill holes along
	5. The factors affecting continuity both of grade and geology.	the interpreted orientation. The geology is relatively simple with minimal structural deformation. Mineralisation is easily visible from the host turbidite sequences. The geometry of the mineralised system is well
		understood at drill spacings up to 40m x 40m.

Criteria	**JORC Code explanation **	Commentary
		3. For the updated Mineral Resource estimate two different geological
		interpretations were trialled. The alternative interpretation domained out 2
		high grade (+2% Cu) lodes below 4100mRL. Their orientation is oblique to
		the dominate trend of the sulphide system. The alterative model was used
		to understand the grade/metal differences between each interpretation.
		There was no material difference between the estimates. The high grade
		domains were discarded from the final estimate with Cu estimated within a
		lower grade 0.4% Cu shell.
		4. Estimation domains used for the latest resource estimate are based on
		interpreted geology defined from drill core and underground mapping. Cu
		estimates are constrained within a broad low grade 0.4% Cu shell based
		on log probability distribution. Internally within this domain unmineralised
		turbidite sequences are domained out and a massive high pyrite unit along
		the HW is also modelled separately. A significant sub horizontal fault at
		~4050mRL is also modelled and may affect Cu grades either side. Given
		the stratiform nature of mineralisation variogram continuity is orientated
		down the plane of the sulphide horizon. Within the plane the direction of
		maximum continuity is steeply plunging to the south. Structural
		measurements from orientated drill core have assisted with determining the
		orientation of ore boundaries in areas of sparse drilling below 4000mRL.
		5. Mineralisation is still open at depth below the 3860mRL (> 1,400 metres
		below surface). Although there is not a significant amount of information
		the geology (stratigraphy and ore textures) is similar in this region. From
		4300mRL down the orientation of mineralisation changes from a NNE trend
		to a E-W trend. Within this zone mineralisation changes from two distinct
		mineralised systems, divided by a small unmineralised sequence, to a
		broad lower grade thicker zone of mineralisation. The change in
		orientation is not fully understood, however the geometry change is well
		understood.
Dimensions	1. The extent and variability of the Mineral	1. The main Tritton mineralised zone is tabular in nature with an overall down
	Resource expressed as length (along strike or	dip length of 1.5km with mineralisation still open at depth. Mineralisation
	otherwise), plan width, and depth below surface	begins at approximately 155m below surface (5115mRL). The main body
	to the upper and lower limits of the Mineral	varies in thickness averaging 6-8 metres above the main “roll over” at
	Resource.	4500mRL. Below the “roll over” the mineralised sulphide package thickens
		with true widths in the order of 15 to 30 metres to 4300mRL. Below this
		the mineralised body dips at a shallower angle (25⁰) and thickens to 70m
		thick down to the 4000mRL. The geological understanding below this RL
		is limited based on a small drill hole dataset and the dimensions of
		mineralisationareinferred. The strikelengthofthemineralised system is

Criteria		**JORC Code explanation **	Commentary
			typically in excess of 300m (5000mRL to 4300mRL). Below this the strike
			length reduces to approximately 100 to 150 metres. An along strike
			extension of the Tritton deposit (South Wing) is located on the southern
			extremities of the central Tritton resource. The south wing is broadly
			triangular in shape with the long axis down dip with a length of 900 metres
			with a width at the widest point of 250 metres. The thickness varies from 1
			to 8 metres averaging 2 metres.
Estimation	and	1. The nature and appropriateness of the estimation	1. Ordinary kriging was used to estimate all variables. Ordinary kriging is an
modelling		technique(s) applied and key assumptions,	appropriate for this style of mineralisation. Given that a majority of Cu is
techniques		including treatment of extreme grade values,	contained within one domain (0.4% Cu shell) there will be some grade
		domaining, interpolation parameters and	averaging occurring, particularly in areas with variable Cu grades. An
		maximum distance of extrapolation from data	indicator kriged estimate was trialled to determine whether some of this
		points. If a computer assisted estimation method	variability could be captured in the estimate. There was little difference
		was chosen include a description of computer	between the OK and IK estimates. The indicator variograms at cut-offs
		software and parameters used.	above the median have short ranges (≤10m) and is likely the reason the IK
		2. The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.	estimate does not reflect a higher degree of variability. Vulcan software was used to create 3D geology/estimation domain wireframes, generate descriptive statistics and grade estimation. Isatis software was used to report descriptive statistics and model variograms. Metal per composite analysis and review of descriptive statistics were used to determine
		3. The assumptions made regarding recovery of by-	appropriate top cut values. For the Cu data no top cuts were applied.
		products.	Estimation was either performed in 2 passes or 3 depending on the search
		4. Estimation of deleterious elements or other non- grade variables of economic significance (e.g. sulphur for acid mine drainage characterisation).	size and dimensions of the estimation domain. Estimation pass 1 was generally set at 70% of the variogram range, estimation pass 2 set at 140% of variogram range and estimation pass 3 was designed to populate all remaining blocks within the estimation domain. A majority of Measured
		5. In the case of block model interpolation, the	and Indicated Mineral Resource classified blocks are associated with
		block size in relation to the average sample	estimation pass 1.
		spacing and the search employed.	2. All estimates within each estimation domain are validated against
		6. Any assumptions behind modelling of selective	declustered composites. Mean grade estimates that fall within 5% of the
		mining units.	declustered composite mean grade are considered acceptable. If the
		7. Any assumptions about correlation between variables.	difference is outside a 5% tolerance, then the estimation and/or decluster cell size is reviewed and changes made if necessary. The model is also reconciled against previous models and mill reconciled data on 6 monthly
		8. Description of how the geological interpretation	increments. Estimates are within acceptable tolerance levels when
		was used to control the resource estimates.	compared against the reconciliation data.
		9. Discussion of basis for using or not using grade	3. No assumptions have been made for the recovery of gold and silver by-
		cutting or capping.	products.
		10. The process of validation, the checking process	4. Other variables estimated included S,Fe,Zn and bulk density. Sulphur

Criteria	**JORC Code explanation **	Commentary
	used, the comparison of model data to drill hole	estimates are used for the identification of PAF material.
	data, and use of reconciliation data if available.	5. The parent block sized used for the updated estimate was 10m (E) x 10m
		(N) x 4m (RL) with sub celling down to 1m (E) x 1m (N) x 1m (RL). The cell
		size takes into consideration drill spacing (grade control 20m x 20m x 20m
		and resource definition 40m x 40m x 40m) and grade variability in different
		orientations.
		6. No assumptions have been applied to the model for selective mining unit.
		7. No correlation has been made between variables. Fusion
		8. The distinction between background Cu and Cu associated with
		mineralisation was defined from a combination of geology/textural logging
		and population distributions associated with a log probability plot. From
		this a 0.4% Cu cut-off was selected to define the bounding Cu estimation
		domain. Geological domains were modelled and tested against each other
		(geological interpretation, descriptive statistics, QQ plots and contact plots)
		to determine whether they could be incorporated into one domain or
		separated. This approach was used for each variable estimated.
		Generally, domain boundaries were treated as hard domains whereby only
		composite data associated with an estimation domain is used for
		estimation. In some instances, based on contact plots, if a semi-soft profile
		is identified across an estimation domain boundary then composites from
		an adjoining estimation domain can be selected for estimation.
		9. Each estimation domain for each variable was reviewed to determine
		whether top cuts are required. Top cuts were applied based on metal per
		composite analysis, histogram distributions and spatial location of
		composite data. Top cuts were applied if too much metal was assigned to
		particular composites (metal per composite) and/or clear disconnect from
		histogram distribution and spatially where the anomalous composites occur
		in relation to other samples.
		10. All estimates within each estimation domain are validated against
		declustered composites. Mean grade estimates that fall within 5% of the
		declustered composite mean grade are considered acceptable. If the
		difference is outside a 5% tolerance, then the estimation and/or decluster
		cell size is reviewed and changes made if necessary. Estimates were also
		validated visually in Vulcan displaying block estimates and composite data.
		Swath plots on 20m levels were also created showing block estimates and
		declustered composite data in the X, Y and Z directions for each variable
		estimated.

Criteria		**JORC Code explanation **	Commentary
Moisture		1. Whether the tonnages are estimated on a dry	1. Tonnages are estimated on a dry basis.
		basis or with natural moisture, and the method of
		determination of the moisture content.
Cut-off		1. The basis of the adopted cut-off grade(s) or	1. A 0.4% Cu cut-off was used for domaining mineralised Cu. The selection
parameters		quality parameters applied.	of an appropriate cut-off grade was based on geology (ore textures and
			lithology) and log probability plot distributions. Previously a higher cut-off
			was used (0.8% Cu) which reflected the higher grade more constrained
			geometry of the mineralised system. The mineralised system below the
			current mining front is becoming thicker with less pronounced higher grade
			zones of mineralisation.
Mining	factors	1. Assumptions made regarding possible mining	1. The only consideration to the mining method is the minimum interpretation
or assumptions		methods, minimum mining dimensions and	width applied is 2 metres downhole. Otherwise no other mining
		internal (or, if applicable, external) mining	assumptions have been applied to the Tritton model.
		dilution. It is always necessary as part of the
		process of determining reasonable prospects for
		eventual economic extraction to consider
		potential mining methods, but the assumptions
		made regarding mining methods and parameters
		when estimating Mineral Resources may not
		always be rigorous. Where this is the case, this
		should be reported with an explanation of the
		basis of the mining assumptions made.
Metallurgical		1. The basis for assumptions or predictions	1. The dominant Cu mineral within the Tritton deposit is chalcopyrite.
factors	or	regarding metallurgical amenability. It is always	Material mined from Tritton is processed at the Tritton Copper Operations
assumptions		necessary as part of the process of determining	copper ore processing plant. Copper recovery to copper concentrate at a
		reasonable prospects for eventual economic	24% copper in concentrate grade is on average 94.5%.
		extraction to consider potential metallurgical
		methods, but the assumptions regarding
		metallurgical treatment processes and
		parameters made when reporting Mineral
		Resources may not always be rigorous. Where
		this is the case, this should be reported with an
		explanation of the basis of the metallurgical
		assumptions made.

Criteria		**JORC Code explanation **	Commentary
Environmental		1. Assumptions made regarding possible waste and	1. Tailing waste from ore processing is disposed at the current tailings
factors	or	process residue disposal options. It is always	storage facility within ML1544 (or utilised as paste fill). Waste from
assumptions		necessary as part of the process of determining	underground development is stored on site for future rehabilitation of the
		reasonable prospects for eventual economic	Tailing Storage Facility. Any potentially acid forming waste is used for
		extraction to consider the potential environmental	stope backfill underground. No significant environmental impacts have
		impacts of the mining and processing operation.	been identified from the Tritton mining operation.
		While at this stage the determination of potential
		environmental impacts, particularly for a
		greenfields project, may not always be well
		advanced, the status of early consideration of
		these potential environmental impacts should be
		reported. Where these aspects have not been
		considered this should be reported with an
		explanation of the environmental assumptions
		made.
Bulk density		1. Whether assumed or determined. If assumed, the	1. Bulk density has been estimated via OK within all estimation domains. For
		basis for the assumptions. If determined, the	the background estimation domain outside of the mineralised system two
		method used, whether wet or dry, the frequency	estimation passes were run. For unestimated blocks outside of the 2
		of the measurements, the nature, size and	estimation passes a default value of 2.90 was applied (mean value from
		representativeness of the samples.	internal dilution estimation domain).
		2. The bulk density for bulk material must have been	2. Bulk density values were measured using the Archimedes Principle
		measured by methods that adequately account	Method' (weight in air v's weight in water). Varying forms of silicification is
		for void spaces (vugs, porosity, etc.), moisture	present throughout the mineralised system and porosity associated with
		and differences between rock and alteration	the turbidite host sediments is negligible. Vugs have been noticed within
		zones within the deposit.	the drill core on rare occasions. Technically the bulk density determination
		3. Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.	method does not take into account for the presence of vugs. Given they have only been observed on the rare occasion and are not correlatable to specific zones they are not considered to represent a material problem with current bulk density determinations.
			3. Bulk density has been estimated from the bulk density measurements. For
			material outside the mineralised domains an average density value for the
			host material has been assigned based on the mean bulk density from the
			internal dilution estimation domain.

• Criteria JORC Code explanation Commentary Classification 1. The basis for the classification of the Mineral 1. Classification of the resource estimate has been guided by confidence in Resources into varying confidence categories. the geological interpretation, drill density, underground development. Measured classified areas were constrained to levels defined from grade

• 2. Whether appropriate account has been taken of control drilling (drill spacing 20m x 20m x 20m). The Measured resource

• all relevant factors (i.e. relative confidence in extends down to the 4170mRL level. Indicated classified areas were

• tonnage/grade estimations, reliability of input constrained to 40m x 40m drill spacings below 4170mRL. The Indicated

• data, confidence in continuity of geology and resource extends down to the 4000mRL level. The Inferred Mineral

• metal values, quality, quantity and distribution of Resource incorporates the south wing estimation domain (located along

• the data). strike and south of the main Tritton mineralised system) and down dip

• 3. Whether the result appropriately reflects the extensions below the Indicated resource within the main Tritton mineralised Competent Person’s view of the deposit. system. Within the main mineralised system, the Inferred resource was extended down to the 3860mRL level which coincides with the deepest drill intersection.

• 1. The drill and input data density is comprehensive in its coverage for this style of mineralisation and estimation techniques to allow reasonable confidence for the tonnage and grade distribution to the levels of Measured, Indicated and Inferred.
• 1. The updated Tritton geology interpretation/model and resource estimate appropriately reflects the competent persons understanding of the geological and grade distributions. The classification of the resource in the area of the upper Tritton Pillars has been downgraded from Measured to Indicated due to concerns regards the continuity of this mineralisation around old and unfilled stopes.

• Audits or 1. The results of any audits or reviews of Mineral 1. External reviews and audits have been conducted by AMC and Optiro for reviews Resource estimates. early generations of the Tritton resource models. No fatal flaws or

• External reviews and audits have been conducted by AMC and Optiro for early generations of the Tritton resource models. No fatal flaws or significant issues with the past Tritton models were identified at the time. The current geological interpretation, estimation domain assumptions and grade estimates have been reviewed by HDR. No fatal flaws or significant issues were identified.

Criteria		**JORC Code explanation **	Commentary
Discussion	of	1. Where appropriate a statement of the relative	1. The models have been validated visually against drilling and statistically
relative		accuracy and confidence level in the Mineral	against input data sets on a domain and on swath plot basis. The relative
accuracy/		Resource estimate using an approach or	accuracy of the Mineral Resource estimate is reflected in the reporting of
confidence		procedure deemed appropriate by the	the Mineral Resource as per the guidelines of the 2012 JORC code. Over a
		Competent Person. For example, the application	12 month period the Measured Mineral Resource should reconcile within
		of statistical or geostatistical procedures to	5% of reported mill figures. This trend has been consistently observed our
		quantify the relative accuracy of the resource	previous 12 month periods.
		within stated confidence limits, or, if such an
		approach is not deemed appropriate, a	2. The statement relates to local estimates of tonnes and grade above
		qualitative discussion of the factors that could	4170mRL for Measured material. Below 4170mRL the estimate is treated
		affect the relative accuracy and confidence of the	as a global estimate for Indicated material. For the Indicated material grade
		estimate.	control drilling to nominal 20m x 20m drill spacing will be required to firm
		2. The statement should specify whether it relates to global or local estimates, and, if local, state the	the mineralised position and grade distribution suitable for final stope designs. Inferred material relates to a global estimate.
		relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.	3. Mine to mill reconciliations for the FY2016 year have shown that Ore Reserves has estimated within 2% of tonnes and 2% of grade providing a minimal variance for metal. Tritton resource has been mined since 2005. Reconciliations demonstrate the current models provide good confidence
		3. These statements of relative accuracy and	in the estimation and the estimation process used for the Tritton Resource.
		confidence of the estimate should be compared
		with production data, where available.

JORC CODE, 2012 EDITION SECTION 4 – TABLE 1 REPORT: TRITTON ORE RESERVE

Criteria		**JORC Code explanation **	Commentary
Mineral		1. Description of the Mineral Resource estimate	1. The Ore Reserve estimate is based on the 30thJune 2016 Mineral Resource
Resource		used as a basis for the conversion to an Ore	for Tritton mine, estimated by the Tritton Resource named_Model trifeb16_rsc-_
estimate	for	Reserve.	12032016.bmf.
conversion	to	2. Clear statement as to whether the Mineral
Ore Reserves		Resources are reported additional to, or	Mr Brad Cox is the competent person responsible for Mineral Resource
		inclusive of, the Ore Reserves.	Estimation and both estimating models.
			Measured Mineral Resource is estimated above 4170mRL and Indicated
			Mineral Resource below this level down to 4000mRL.
			2. Mineral Resources are quoted as INCLUSIVE of the Ore Reserve estimate

Criteria	**JORC Code explanation **	**JORC Code explanation **				Commentary
Site visits	1. Comment on any site		visits undertaken by			1. Mr Ian Sheppard, competent person for the Tritton mine Ore Reserve, has
	the Competent Person		and the outcome of			visited the Tritton mine on several occasions and is familiar with the mine
	those visits.					conditions.
	2. If no site visits have been undertaken
	_indicate why this is the case. _
Study status	1. The type and	level of	study	undertaken to		1. Tritton mine Ore Reserve estimate is based on ten years of mine production
	enable Mineral	Resources to be converted to				history, production budgets, and mine designs that in aggregate exceed the
	Ore Reserves.					level of detail expected from a feasibility study. The mine budget and
	2. The Code requires that a study to				at least	associated Life of Mine plan demonstrate the technical and economic viability
	Pre-Feasibility	Study	level	has	been	of mining the Ore Reserve.
	undertaken to convert Mineral			Resources to
	Ore Reserves.	Such studies will have been				2. Modifying factors used in the conversion of Mineral Resource to Ore Reserve
	carried out and will have determined a mine					are based on reconciliation and observation of past mining and ore processing
	plan that is	technically achievable and				performance.
	economically	viable,	and	that	material
	_Modifying Factors have _		_been considered. _
Cut-off	1. The basis of the cut-off grade(s) or quality					1. The June 2016 Ore Reserve uses copper grade, Cu%, as the cut-off grade
parameters	parameters applied.					criteria.
						2. A cut-off grade of 1.1% Cu is applied to whole stope estimates of grade after
						dilution. Stopes are designed within the Mineral Resource grade envelope that
						has been interpolated by geologists at a nominal 0.6% Cu cut-off. Designers
						aim to reject as much mineralisation with grade less than 1.1% Cu as is
						practical from the stope, however sub-cut-off grade mineralisation will be
						included if necessary to generate a practical stope design. The average grade
						of the whole stope volume is estimated to give the pre-dilution stope tonnage
						and grade, (including any sub cut-off grade blocks within the stope). Dilution
						from surrounding rock and from backfill is then estimated followed by
						estimation of ore loss. Dilution and ore loss factors are applied to estimate the
						diluted stope grade. The diluted whole of stope grade is tested against the
						cut-off grade. The stope average diluted grade must exceed the 1.1% Cu cut-
						off grade to be accepted.
						3. Where access development tunnel designs are available, all Mineral
						Resource inside these development design shapes and above 0.6% Cu is
						converted directly to Ore Reserve without modification. A lower marginal cost
						applies to this material equivalent only to the cost of ore processing. Mining
						costs will be incurred irrespective of a decision to process this material or not.
						Hence a lower cut-off grade of 0.6% Cu is applied. No dilution or ore loss
						factors are applied to Mineral Resource contained within the development
						shapes in the estimation of Ore Reserve.

Criteria		**JORC Code explanation **			Commentary
					4. Gold and silver grades in the ore are of minor importance as economic by-
					products. Gold and silver grades are strongly correlated with copper grade
					and this combined with minor economic importance means they need not be
					included in the cut-off grade criteria. Gold in copper concentrate grades are
					only occasionally above the payable limit of 1.0g/t. Silver in concentrate
					grades are approximately 60g/t and so silver contributes a modest value of
					AUD$40 to $50 per tonne copper concentrate.
					5. There are no significant impurities in the mineralisation that require inclusion
					inthe cut-offgrade criteria.
Mining	factors	1. The method and assumptions		used as	1. June 2016 Mineral Resources have been converted to; underground Ore
or assumptions		reported in the Pre-Feasibility or	Feasibility		Reserve by a process of detailed stope and development design. The life of
		Study to convert the Mineral Resource to an			mine plan scheduled production is equivalent to the Ore Reserve.
		Ore Reserve (i.e. either by application of
		appropriate factors by optimisation or by			2. The mining method used at Tritton mine is underground open stoping with
		preliminary or detailed design).			cemented paste backfill. Open stope mining methods have been used with
		2. The choice, nature and appropriateness of			success for ten years. Use of cemented paste fill allows high rates of
		the selected mining method(s)	and other		conversion of Mineral Resource to Ore Reserve, with no permanent pillars
		mining parameters including	associated		required to be left.
		design issues such as pre-strip, access, etc.
		3. The assumptions made		regarding	3. Geotechnical stability of the stope designs is based on stable span
		geotechnical parameters (eg pit slopes,			dimensions established over several years of operational experience with the
		stope sizes, etc), grade control		and pre-	use of cemented paste fill. A modest level interval of 20m vertical is used to
		production drilling.			limit the length of hanging wall exposure in the shallow dipping (35 to 50
		4. The major assumptions made and Mineral			degree) ore body. Tritton specific empirical design curves based on prior
		Resource model used for pit and stope			stope stability are used to assist with design of stable spans.
		optimisation (if appropriate).
		5. The mining dilution factors used.			4. The Ore Reserve estimates for development and stope ore include the
		6. The mining recovery factors used.			volume of material that is below the cut-off grade and which is considered
		7. Any minimum mining widths used.			impractical to exclude from the surrounding or adjacent volume of ore. Such
					diluting material is inclusive to the design ore volume and estimate of grade.
		8. The manner in which Inferred Mineral			5. Ore recovery factor of 90% and dilution factor of 11% are applied in the
		Resources are utilised in mining studies and			estimation of Ore Reserve for stopes less than 40m high; “small stopes”.
		the sensitivity of the outcome		to their
		inclusion.			6. Ore recovery factor of 95% and dilution factor of 5% are applied in the
		9. The infrastructure requirements		of the	estimation of Ore Reserve for the largest stope 40m or higher.
		selected mining methods.
					7. Ore recovery factor of 50% and dilution factor of 20% are applied in the
					estimation of Ore Reserve for the upper levels old pillar stopes.

Criteria		**JORC **	**Code explanation **	Commentary
				8. Dilution due to over break of the hanging wall of small stopes is estimated as
				an average of 12 % for small stopes. A copper grade of 0.8% Cu is estimated
				for this dilution, based on the results of stope reconciliation.
				9. Dilution due to fall-off of paste fill from adjacent filled stopes is estimated as an
				average of 3.0% for all stopes. There is no economic copper in the paste fill
				dilution.
				10. Ore loss due to under break on the footwall of the small stopes, (due the
				shallow dip) is estimated as an average of 12% for all stopes. The grade of
				this ore loss is assumed to be the average of the un-diluted stope grade.
				11. Ore loss due to inability to recover all the broken ore is estimated at an
				average of 2% for all stopes. The grade of this ore loss is assumed to be the
				un-diluted stope grade.
				12. The detailed modifying factors described in items 8 to 11 above are simplified
				into the simple 90% ore recovery and 11% dilution factors applied in the Ore
				Reserve estimate, giving the same estimate within precision of the estimate.
				13. Inferred Mineral Resources is scheduled within the Life of Mine plan for
				Tritton, however the small quantity of inferred material does not affect the
				economic viability of the Ore Reserve. All Inferred Mineral Resource is
				schedule for production after the Ore Reserve is exhausted and does not
				impact the decision to mine the Ore Reserve material.
				14. Capital development, ventilation, backfill distribution, electrical, pumping and
				other infrastructure necessary to support the Tritton mine is installed
				incrementally over time. The sustaining capital cost of installing the
				infrastructureisincludedintheLife of Mine plan.
Metallurgical		1.	The metallurgical process proposed and the	1. The Triton mine ore is treated at the existing Tritton ore processing plant
factors	or		appropriateness of that process to the style	located adjacent to the mine portal. Copper, gold and silver metal are
assumptions			of mineralisation.	recovered to a copper concentrate by sulphide flotation methods.
		2.	Whether the metallurgical process is well-
			tested technology or novel in nature.	2. The sulphide flotation treatment method is proved on Tritton ore with over 12
		3.	The nature, amount and representativeness	million tonne of ore successfully treated to date.
			of metallurgical test work undertaken, the
			nature of the metallurgical domaining applied
			and the corresponding metallurgical recovery
			factors applied.

Criteria	**JORC **	**Code explanation **	Commentary
	4.	Any assumptions or allowances made for	3. Tritton ore processing plant to produces a copper concentrate with 24%
		deleterious elements.	copper. Average recovery ranging from 94% to 95% of copper is achieved.
	5.	The existence of any bulk sample or pilot	Gold is recovered to the copper concentrate at 45% recovery, however grades
		scale test work and the degree to which such	in the concentrate are generally below payable limits and only occasional
		samples are considered representative of the	value is derived from the gold. Silver recovery averages 75%.
		orebody as a whole.
	6.	For minerals that are defined by a	4. The Ore Reserve assumes that no allowances are required for deleterious
		specification, has the ore reserve estimation	elements in the copper concentrate. This is supported by historical production
		been based on the appropriate mineralogy to	of a very clean concentrate.
		_meet the specifications? _
Environmental	1.	The status of studies of potential	1. The Tritton deposit is located on ML1544. The mine is fully permitted for
		environmental impacts of the mining and	production.
		processing operation. Details of waste rock
		characterisation and the consideration of	2. Tailing from ore treatment are disposed to the existing Tritton Resources
		potential sites, status of design options	tailing storage facility. Closure of this tailing storage facility will be required at
		considered and, where applicable, the status	end of mine life. Sufficient topsoil and waste rock with suitable geochemistry is
		of approvals for process residue storage and	stockpiled and available for capping for capping of the facility at mine closure.
		waste dumps should be reported.
			3. Waste rock with potential to be acid forming is disposed into stopes
			underground andnot stored onsurface.
Infrastructure	1.	The existence of appropriate infrastructure:	1. The Tritton mine and ore processing site has all necessary infrastructure
		availability of land for plant development,	installed and operating. Infrastructure includes change facilities, offices,
		power, water, transportation (particularly for	workshops, electrical power, water, and road access. Sufficient skilled labour
		bulk commodities), labour, accommodation;	is available in region to support the mine and accommodation is available in
		or the ease with which the infrastructure can	the town of Nyngan located within 50km distance from the mine.
		be provided, or accessed.
			Land from which the Tritton mine is accessed is freehold lease owned by
			Tritton ResourcesPtyLtd.
Costs	1.	The derivation of, or assumptions made,	1. Capital costs for the Tritton mine include only sustaining capital for mine
		regarding projected capital costs in the study.	development, ventilation extension and mining equipment replacement. These
	2.	The methodology used to estimate operating	costs are based on recent development experience and the purchase of
		costs.	similar mine equipment. Accuracy of estimate is at feasibility study or better
	3.	Allowances made for the content of	precision, (± 15%). The sustaining capital expenditure schedules are included
		deleterious elements.	in the Life of Mine plan.
	4.	The derivation of assumptions made of metal or commodity price(s), for the principal minerals and co- products.	2. Tritton mine operating cost estimates are based on recent experience applied to first principles build-up from physical schedules for the budget year (FY 2017 ending June 2017). The budget estimates are projected forward with
	5.	The source of exchange rates used in the study.	appropriate modification to account for increasing depth of mining over time. Accuracy beyond the budget year is considered to be ±15%.
	6.	Derivation of transportation charges.

• Criteria JORC Code explanation Commentary 7. The basis for forecasting or source of 3. Metal price assumptions for copper, gold and silver are Aeris Resources treatment and refining charges, penalties for Limited corporate long term assumptions derived from a variety of market failure to meet specification, etc. sources – see next section.

• 8. The allowances made for royalties payable, both Government and private. 4. Exchange rates used in the studies that support the Ore Reserve estimate are

• Exchange rates used in the studies that support the Ore Reserve estimate are Aeris Resources Limited corporate long term assumptions derived from a variety of market sources – see next section.

• Copper concentrate product transport costs include road and rail freight to port, port handling and sea freight. The costs assumed in the Life of Mine plan are based on the budget year contract rates with future changes based on market intelligence. Budget for financial year 2016 costs are approximately AUD$90 per dry tonne concentrate.

			6. Copper concentrate treatment and refining charges assumed in the Life of	6. Copper concentrate treatment and refining charges assumed in the Life of
			Mine plan	are the financial year 2016 budget costs; USD$100/t concentrate
			smelting and USD 10c/lb copper refining,
			7. NSW government royalty of 4% is payable on revenue less deductible items.
			After deductions, the effective royalty rate on revenue is approximately 3% for
			Tritton Resources. No privateroyaltieswillapply.
Revenue factors	1.	The derivation of, or assumptions made	1. Tritton Ore	Reserve breakeven cut-off grade is calculated using the mid-term
		regarding revenue factors including head	(2018) Aeris Resources Limited forward looking economic assumptions
		grade, metal or commodity price(s) exchange	regards metal price, exchange rate, smelter treatment, and product handling
		rates, transportation and treatment charges,	cost:
		penalties, net smelter returns, etc.	a.	Copper price of USD$5,200/tonne range
	2.	The derivation of assumptions made of metal	b.	Gold price of USD$1200/oz
		or commodity price(s), for the principal	c.	Silver price of USD$17/oz
		metals, minerals and co-products.	d.	AUD:USD exchange rate of 0.71
			e.	Copper treatment charge of USD$100/tonne
			f.	Copper refinery charge of USD10c/lb
			g.	Standard Tritton Resources contract smelter terms for payable
				metal; effective copper payable is 95.8% for concentrate with 24%
				copper content
			h.	Assumptions were current at June 2016

Criteria	**JORC **	**Code explanation **				Commentary
						Under this range of economic assumptions and the estimated operating
						costs, the break-even grade varies from;
						 1.4% Cu if full site costs are included
						 1.1% Cu if only variable costs are considered (site fixed
						administration cost ignored), and cost reduction from a change to
						larger stopes.
						Based on the above estimated range of break-even grades, a cut-off
						grade of 1.1% Cu has been applied in the estimation of Ore Reserve.
						Prior year cut-off grade was 1.2% Cu. In general, the shallow small stopes
						in the Ore Reserve have been designed to this slightly higher cut-off
						grade.
						The cut-off grade policy applied in the estimate of Ore Reserves is derived
						by testing the value of the whole Tritton Operations business at a range of
						design cut-off grades. The selected cut-off policy of 1.1% Cu was shown
						toreturnthe bestvalue giventhe assumedforward curveforcopperprice.
Market	1.	The demand, supply and stock situation for				1. The world market for copper concentrate is large compared to production from
assessment		the particular	commodity,		consumption	Tritton mine. The Tritton mine copper concentrate is a very clean product with
		trends and factors likely to affect supply and				low impurities and demand for this product from copper smelters is expected
		demand into the future.				to remain high.
	2.	A customer and	competitor analysis along
		with the identification		of likely market		All copper concentrate is sold under life of mine contract to Glencore
		windows for the product.				International AG.
	3.	Price and volume	forecasts and the basis for
		these forecasts.
	4.	For industrial	minerals the customer
		specification, testing		and	acceptance
		_requirements prior to a supply contract. _
Economic	1.	The inputs to the economic			analysis to	1. The Tritton Life of Mine plan and associated commercial model estimates a
		produce the net present		value	(NPV) in the	positive Net Present Value for the operation at a discount rate of 7%. The
		study, the source and confidence of these				economic assumptions used in the valuation of the Life of Mine plan vary over
		economic inputs including estimated inflation,				time. They are consistent with the assumptions of economic inputs applied in
		discount rate, etc.				the calculation of break-even grade discussed above.
	2.	NPV ranges and	sensitivity to		variations in
		the significant assumptions and			inputs.	2. The Tritton mine is one of several mines that will supply ore to the Tritton
						processing plant in the Life of Mine plan. The plan assumes that Tritton mine
						shares the cost of site administration, processing plant sustaining capital and
						otheroverheadswiththe other mines.

Criteria	**JORC **	**Code explanation **		Commentary
Social	1.	The status of agreements with	key	1. The Tritton mine is located on existing Mining Lease ML1544. The mine is
		stakeholders and matters leading to social		fully approved to operate.
		licence to operate.
				2. Tritton Resources is based in the township of Nyngan in the Bogan Shire
				NSW. Strong community support for the continued operation of Tritton
				Resources has been evidenced in regular community consultation sessions.
				There are no known objections from the community against the Tritton
				Resources operations. Tritton Resources owns the land on which access to
				Tritton mineislocated.
Other	1.	To the extent relevant, the impact of	the	1. No material natural risks have been identified for the Ore Reserves.
		following on the project and/or on	the
		estimation and classification of the	Ore	2. All copper concentrate produced by Tritton Resources from the Tritton mine
		Reserves:		will be sold to Glencore International AG under an existing life of mine
	2.	Any identified material naturally occurring		contract.
		risks.
	3.	The status of material legal agreements	and
		marketing arrangements.
	4.	The status of governmental agreements	and
		approvals critical to the viability of the project,
		such as mineral tenement status,	and
		government and statutory approvals. There
		must be reasonable grounds to expect	that
		all necessary Government approvals will be
		received within the timeframes anticipated in
		the Pre-Feasibility or Feasibility study.
		Highlight and discuss the materiality of	any
		unresolved matter that is dependent on a
		third party on which extraction of the reserve
		_is contingent. _
Classification	1.	The basis for the classification of the	Ore	1. The Proved Ore Reserve estimate results from the conversion of Measured
		Reserves into varying confidence categories.		Mineral Resource. The end of the Measured Mineral Resource for June 2016
	2.	Whether the result appropriately reflects	the	is set at RL4170m, which is the limit of completed grade control drilling. Above
		Competent Person’s view of the deposit.		RL4170m is Proved Ore Reserve and Probable Ore Reserve is below this
	3.	The proportion of Probable Ore Reserves		level.
		that have been derived from Measured
		Mineral Resources (if any).		2. Below RL4170m all Ore Reserve is categorized as Probable. This Ore
				Reserve is based on the conversion of Indicated Mineral Resource described
				by the resource model.

Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary
3. 4.	A Probable Ore Reserve of 0.27Mt has been estimated by conversion of blocks of resource remaining as pillars between completed primary stopes that were mined before the operation used cemented backfill. These blocks of pillar resource are located in the upper levels of the mine; RL4860m and above. The pillar Ore Reserve is derived from Indicated Mineral Resources. Uncertainty over the geotechnical condition of the rock mass in the pillar resource would have been applied as a modifying factor in the estimation of the pillar Ore Reserve. Only Probable Ore Reserve would be estimated for the pillars, irrespective of the resource categorization. The classification of the Ore Reserve as a combination of Proved and Probable is an appropriate reflection of the conditions in Tritton mine in the opinionofthe competent person,Mr IanSheppard.
Audits or reviews 1. The results of any audits or reviews of Ore Reserve estimates. 1.	No audits of this June 30th2016 Ore Reserve have been completed. Previous Ore Reserve estimates have been externally reviewed as part of requirements forprovisionof financewith no significant discrepanciesfound.
Discussion of relative accuracy/ confidence 2. Where appropriate a statement of the relative accuracy and confidence level in the Ore Reserve estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the reserve within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors which could affect the relative accuracy and confidence of the estimate. 3. The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. 4. Accuracy and confidence discussions should extend to specific discussions of any applied Modifying Factors that may have a material impact on Ore Reserve viability, or for which there are remaining areas of uncertainty at the current study stage. 1.	For Tritton mine; Criteria Risk Rating Comment Mineral Resource estimate for conversion to Ore Reserves Low Reconciliation of the Mineral Resource and Ore Reserve shows good correlation between actual and estimated; <5% difference on tonne, Cu grade and contained Cu metal for Proved Ore Reserve. The resource modelling that supports Indicated Mineral Resource estimates has been shown to be moderately conservative after reconciliation with modelling that supports Measured Mineral Resource (based on greater drilling density). Classification Low All Probable Ore Reserve based on Indicated Mineral Resource. No complications from modifying factors. Site visit Low Site visits completed. Tritton is an operating mine with 10 years production history. Study status Low Ore Reserves are support by Life of Mine plan and budgets that are higher precision than Feasibility Study.

Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary
5. It is recognised that this may not be possible or appropriate in all circumstances. These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.	Cut-off grade	High	Cut-off grade is sensitive to mine operating costs achieved and dilution in addition to the normal metal price volatility risk.
	Mining factors	Medium	Dilution and ore loss factors are derived from detailed stope review and reconciliation of actual to reserve estimate
	Metallurgy factors	Low	Tritton ore has been processed for ten (10) years achieving metal recoveries and concentrate quality consistent with those assumed in the preparation of the Ore Reserve.
	Environmental	Low	Located on existing Mining Lease with all approvals in place.
	Infrastructure	Low	All required significant infrastructure is in place.
	Costs	Low	Estimates are based on recent operating cost experience.
	Revenue Factors	High	Copper metal price has high annual variability. Tritton mine cash margins after sustaining capital are moderate and operations could be suspended during periods of extended low metal price.
	Market assessment	Low	Life of mine concentrate sale contract is in place.
	Economics	High	Risk reflects impact of metal price variability and modest grade of the deposit for a deep underground mine.
	Social	Low	Continued operation of the Tritton Mine is strongly supported by the local community at Nyngan.