ALDORO RESOURCES LIMITED — Interim / Quarterly Report 2019

Jul 24, 2019

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25 July 2019

ASX ANNOUNCEMENT

Manager of Company Announcements ASX Limited Level 40, Central Park 152-158 St George’s Terrace PERTH WA 6000

By E-Lodgement

QUARTERLY REPORT

Period Ended 30 June 2019

Aldoro Resources Ltd ( Aldoro or the Company ) (ASX: ARN) provides the following commentary and Appendix 5B for the Quarter ended 30 June 2019.

HIGHLIGHTS

• Re-evaluation of nickel sulphide potential at Ryans Find Project in progress

• Results received from orientation surface sampling programme

• Grant of tenements at Cathedrals Belt Project, immediately adjacent to St George Mining’s Mt Alexander Project, enabling on ground exploration to commence

• Prospectivity of Leinster Nickel Project enhanced by shallow nickel mineralisation reported in adjacent drilling by Talisman Mining, owner of the Sinclair Nickel Project

• In addition to developing its prospective Nickel Projects, the Company is reviewing potential acquisitions and investments across a range of commodities and jurisdictions

Ryans Find Project

The Ryans Find Project is located 100km northwest of Southern Cross and covers a substantial part of the NNW-SSE trending Watt Hills greenstone belt, part of the Archaean Yilgarn Craton. The Watt Hills greenstone belt is the southern extension of the mafic-ultramafic

Suite 2, 1 Altona Street, West Perth WA 6005 E: contact@aldororesources.com W: aldororesources.com

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complex that makes up the stratigraphically lower part of the larger Diemals-Marda greenstone belt. It is close to the eastern margin of the Southern Cross Province and is bounded to the east and west by Archaean granitoids and gneiss. The detailed structure of this Belt is not as well understood as other Belts in Western Australia due to the typical poor outcrop and a general lack of exploration in the past.

Aldoro’s exploration initially focussed on the nickel-cobalt potential of ultramafic rocks within the Watt Hills Greenstone belt. With recent appreciation in the nickel price, along with a decline in the cobalt price, the project is being re-evaluated for the potential to host nickel sulphide mineralisation. Both Western Mining Corporation and Arimco Mining Pty Ltd have reported encouraging results from nickel sulphide exploration at the Ryans Find project (refer WAMEX reports A001189 and A045655).

During the March Quarter, an orientation geochemical survey and geological reconnaissance was completed across the Ryans Find Project, comprising 124 soil samples and 15 rock chips. Results were received after the end of the Quarter and are currently being compiled and interpreted.

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Figure 1. Geological Map of the Ryans Find Project.

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Cathedral Belt Project

The Cathedral Belt Project comprises 7 tenements located 250km northwest of Kalgoorlie (Figure 2), adjacent to nickel sulphide discoveries made by St George Mining Ltd ( St George ) at the Cathedrals, Strickland and Investigators Prospects.

St George has released thick intersections of high-grade nickel-copper cobalt-PGE mineralisation at the Investigators Prospect including 10m @ 2.47% Ni, 1.06% Cu, 0.07% Co and 2.52g/t PGEs from 142m including 3m @ 3.85% Ni, 2.12% Cu, 0.11% Co and 4.22g/t PGEs from 145m and 2m @ 5.04% Ni, 1.47% Cu, 0.16% Co and 2.12g/t PGEs from 150m (refer ASX Announcement ASX.SGQ 14 June 2019). More recently St George announced the expansion of exploration across its tenure and the identification of new targets to be drilled in coming months (refer ASX Announcement ASX.SGQ 14 June 2019).

The Company’s tenements lie to the east, and west, of St George’s tenure (Figure 2) and the Company’s interpretation is that the greenstones hosting the nickel-sulphide mineralisation extend into Aldoro’s tenure. Extensions to the prospective ultramafic unit which hosts the nickel-copper mineralisation within St George’s Mt Alexander Project would represent high priority targets for further exploration.

During the Quarter, the final two tenements in application in the Cathedrals Belt Project were granted (E29/1029 and E29/1031). The Company is now planning its initial field activities at the project which will initially comprise ground inspection of areas of interest identified in data from the Company’s high resolution aeromagnetic survey. Fieldwork will also comprise geological reconnaissance to identify areas of outcrop and subcrop as the area is generally covered by recent sediments as well as orientation geochemical surveys. Further details will be released as field work commences.

Leinster Project

Exploration at the Leinster Project has successfully identified targets for nickel sulphide mineralisation. Targets were identified in a high powered EM survey carried out by Aldoro Resources and are associated with known and interpreted ultramafic units in the project area (refer ASX Announcement 18 December 2018).

Ultramafic units along strike from the Leinster Nickel Project host nickel sulphide mineralisation at BHP’s Leinster Nickel Operations, which include the Perseverance, Rockys Reward and Venus Deposits and Talisman Mining’s Sinclair Nickel Project (Figure 2).

During the Quarter, Talisman Mining reported results of regional aircore drilling along the Sinclair Trend at the Amy Rix Project, adjacent to Aldoro’s Firefly Prospect (refer ASX.TLM Announcement 20 May 2019). Results included 21m at 1.03% Ni from surface and 32m at 0.78% Ni from surface (SNAC0197 and SNAC0200, refer ASX.TLM Announcement 20 May 2019) with broad, shallow nickel mineralisation reported over 500m of strike.

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Figure 2. Aeromagnetic Image showing the Cathedral Belt and Leinster Projects.

Aldoro’s Firefly Prospect lies directly along strike from Amy Rix (Figure 3) and is associated with the same high magnetic response unit. The higher magnetic responses in the Firefly area have previously been determined to correlate to ultramafic units by drilling. The geological information announced by Talisman confirms this setting with drilling intersecting ultramafic lithologies along with a variety of other rock types including sediments, felsic intrusives and mafic lithologies.

Aldoro completed a high powered ground electromagnetic ( EM ) survey over the Firefly Prospect in December 2018 which detected an intense EM anomaly within a large, 1km scale anomaly (refer ASX Announcement 18 December 2018). The strength of this anomaly implies it is likely to have a high conductance and therefore a higher probability of a result of accumulations of sulphide minerals. Other anomalies have been noted in the northern part of the survey and while these are less intense, their spatial association with the larger anomaly provides encouragement that these features are worthy of further investigation.

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Figure 3. Regional RTP1VD aeromagnetic image showing location of Amy Rix (TLM) and Firefly (ARN).

Historical drilling has been completed at the Leinster Nickel Project, predominantly shallow drilling with isolated deeper RC or diamond core holes. Assay and logging data from these holes is being reviewed in detail to assess if any potential vectors to mineralisation are present. Given the complexity of most ultramafic flows in the Eastern Goldfields and the resultant controls on nickel sulphide mineralisation the Company is attempting to model of the potential channelways by interpretation of the magnetics / geological relationships as well as the drilling data with the aim of delineating robust drilling targets. The identification of shallow nickel mineralisation by Talisman provides significant encouragement to this ongoing work and the potential of the Firefly Prospect.

Kalgarin Project

The Company is currently designing a geochemical sampling programme across the Kalgarin Project, following the detection of elevated Ni-Co results in its first pass survey (refer ASX Announcement 29 April 2019). The Kalgarin Project is located along trend from Golden Mile Resources’ Quicksilver Nickel-Cobalt Project (Figure 2). During 2018 Golden Mile announced the identification of new EM targets along strike from the Quicksilver Project, which is an encouraging sign for the potential of Aldoro’s Kalgarin Project to host Ni-Co mineralisation (refer Figure 2 and ASX.G88 Announcement 8 August 2018). A maiden Mineral Resource for the Quicksilver Nickel-Cobalt Project was published in November 2018 (refer ASX.G88 Announcement of 19 November 2018).

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Corporate

During the quarter, a total of 2,602,499 fully paid ordinary shares were released from ASX mandatory escrow. As a result of the execution of voluntary escrow agreements with the Company, the holders of the majority of these securities will be subject to voluntary escrow for a further 12 month period as set out below:

Description	Number	Date of Release (ASX Mandatory Escrow)	Date of Release (Voluntary Escrow)
Fully Paid Ordinary Shares	1,643,500	1 June 2019	1 June 2020
Fully Paid Ordinary Shares	373,999	12 June 2019	12 June 2020
Fully Paid Ordinary Shares	585,000	12 June 2019	n/a
Total	2,602,499

For and on behalf of the board:

Sarah Smith Company Secretary

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Competent Persons Statement

The information in this announcement that relates to Exploration Results and other technical information complies with the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code) and has been compiled and assessed under the supervision of Mr Bill Oliver, a Director of Aldoro Resources Ltd. Mr Oliver is a Member of the Australasian Institute of Mining and Metallurgy and the Australasian Institute of Geoscientists. He has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the JORC Code. Mr Oliver consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

Disclaimer

Some of the statements appearing in this announcement may be in the nature of forward looking statements. You should be aware that such statements are only predictions and are subject to inherent risks and uncertainties. Those risks and uncertainties include factors and risks specific to the industries in which Aldoro operates and proposes to operate as well as general economic conditions, prevailing exchange rates and interest rates and conditions in the financial markets, among other things. Actual events or results may differ materially from the events or results expressed or implied in any forward looking statement. No forward looking statement is a guarantee or representation as to future performance or any other future matters, which will be influenced by a number of factors and subject to various uncertainties and contingencies, many of which will be outside Aldoro’s control.

Aldoro does not undertake any obligation to update publicly or release any revisions to these forward looking statements to reflect events or circumstances after today's date or to reflect the occurrence of unanticipated events. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions or conclusions contained in this announcement. To the maximum extent permitted by law, none of Aldoro, its Directors, employees, advisors or agents, nor any other person, accepts any liability for any loss arising from the use of the information contained in this announcement. You are cautioned not to place undue reliance on any forward looking statement. The forward looking statements in this announcement reflect views held only as at the date of this announcement.

This announcement is not an offer, invitation or recommendation to subscribe for, or purchase securities by Aldoro. Nor does this announcement constitute investment or financial product advice (nor tax, accounting or legal advice) and is not intended to be used for the basis of making an investment decision. Investors should obtain their own advice before making any investment decision.

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Tenement Table: ASX Listing Rule 5.3.3

Mining tenement interests held at the end of the quarter and their location

Western Australia

TENEMEN T	REGISTERED HOLDER / APPLICANT	Permit Status	GRANT DATE (APPLICATION DATE)	EXPIRY DATE	AREA SIZE (Blocks)	Interest / Contractual Right
E16/489	Aldoro Resources Ltd	Granted	27 January 2017	26 January 2022	15 BL	100%
E77/2502	Aldoro Resources Limited	Application	(1 December 2017)	N/A	21BL	100%
E77/2535	Aldoro Resources Limited	Application	(17 April 2018)	N/A	27BL	100%
E70/5061	Blue Ribbon Mines Pty Ltd	Granted	12 July 2018	11 July 2023	21BL	80%
E70/5068	Blue Ribbon Mines Pty Ltd	Granted	13 July 2018	12 July 2023	16BL	80%
E29/1029	Blue Ribbon Mines Pty Ltd	Granted	15 May 2019	14 May 2024	28BL	80%
E29/1030	Blue Ribbon Mines Pty Ltd	Granted	15 March 2019	14 March 2024	45BL	80%
E29/1031	Blue Ribbon Mines Pty Ltd	Granted	15 May 2019	14 May 2024	9BL	80%
E29/1032	Blue Ribbon Mines Pty Ltd	Granted	15 March 2019	14 March 2024	12BL	80%
E29/1033	Blue Ribbon Mines Pty Ltd	Granted	27 February 2019	26 February 2024	26BL	80%
E29/1035	Aldoro Resources Limited	Granted	15 March 2019	14 March 2024	37BL	100%
E36/910	Jindalee Resources Limited	Granted	16 March 2018	15 March 2023	21BL	80%
E36/895	Jindalee Resources Limited	Granted	11 April 2018	10 April 2023	20BL	80%
E36/931	Aldoro Resources Limited	Granted	28 November 2018	27 November 2023	43BL	100%
E36/930	Aldoro Resources Limited	Granted	27 September 2018	26 September 2023	23BL	100%

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TENEMEN T	REGISTERED HOLDER / APPLICANT	Permit Status	GRANT DATE (APPLICATION DATE)	EXPIRY DATE	AREA SIZE (Blocks)	Interest / Contractual Right
E36/929	Aldoro Resources Limited	Granted	3 July 2018	2 July 2023	14BL	100%

The mining tenement interests relinquished during the quarter and their location

Nil.

The mining tenement interests acquired during the quarter and their location

Acquired - None

Granted – E29/1029, E29/1031

Beneficial percentage interests held in farm-in or farm-out agreements at the end of the quarter

Not applicable.

Beneficial percentage interests in farm-in or farm-out agreements acquired or disposed of during the quarter

Not applicable.

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

Aldoro Resources Limited

ABN 31 622 990 809	Quarter ended (“current quarter”)
31 622 990 809	30 June 2019

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000	Year to date (12 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Research and development refunds 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	- (72) - - - (86) - 19 - - - -	- (674) - - - (576) - 43 - - - -
	(139)	(1,207)
2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets	- - -	(25) - -

• See chapter 19 for defined terms

Page 1

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
2.2 Proceeds from the disposal of: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	- - - - - - -	- - - - - - -
	-	(25)
Explanation necessary for an understanding of the transactions.

3. Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from issue of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (proceeds from unissued shares) 3.10 Net cash from / (used in) financing activities	- - - - - - - - -	5,000 - - (422) - - - - -
	-	4,578
4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above)	3,691 (139) - -	206 (1,207) (25) 4,578

• See chapter 19 for defined terms

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Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows	Current quarter $A’000	Year to date (12 months) $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	-	-
	3,552	3,552
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	3,552 - - -	3,691 - - -
	3,552	3,691
6. Payments to directors of the entity and their associates Current quarter $A'000 6.1 Aggregate amount of payments to these parties included in item 1.2 (91) 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 - 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2
		Current quarter $A'000
		(91)
		-
Explanation necessary for an understanding of the transactions 6.1Fees paid to Directors and/or Director related entities $18,000 Geological consulting fees paid to a Director and/or Director related entity $37,500 Company secretarial and financial management fees paid to a Director related entity $35,700
7. Payments to related entities of the entity and their associates Current quarter $A'000 7.1 Aggregate amount of payments to these parties included in item 1.2 - 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 - 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2
		Current quarter $A'000
		-
		-
Explanation necessary for an understanding of the transactions

• See chapter 19 for defined terms

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

8. Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 8.1 Loan facilities - - 8.2 Credit standby arrangements - - 8.3 Other (please specify) - - 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
	-	-
	-	-
	-	-

9. Estimated cash outflows for next quarter	$A’000
9.1 Exploration and evaluation 9.2 Development 9.3 Production 9.4 Staff costs 9.5 Administration and corporate costs 9.6 Other (provide details if material) 9.7 Total estimated cash outflows	(125) - - - (120) -
	(245)

10. Changes in tenements (items 2.1(b) and 2.2(b) above)	Tenement reference and location	Nature of interest	Interest at beginning of quarter	Interest at end of quarter
10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced	N/A
10.2 Interests in mining tenements and petroleum tenements acquired or increased	N/A

• See chapter 19 for defined terms

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Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

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Sign here: Date: 25 July 2019 Company Secretary

Print name: Sarah Smith

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms

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