Alkane Resources — Capital/Financing Update 2019

May 16, 2019

ASX and MEDIA RELEASE

17 May 2019

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Third Near-Mine Discovery at El Paso Confirms 2.5km Tomingley Gold Corridor

• ➢ Significant gold mineralisation at the southern part of the El Paso prospect is confirmed with RC and diamond core drilling over a strike length of 480 metres.

• ➢ The El Paso prospect is approximately 7 kilometres to the south of the Tomingley Gold Operations (TGO) processing facility. Together with the Roswell and San Antonio prospects there is a cumulative strike length of 2,500 metres of gold mineralisation within 8 kilometres of TGO.

• ➢ RC drilling results received for the El Paso prospect intersected significant gold mineralisation, with intercepts of:

EPP012 12 metres grading 4.99g/t Au from 108 metres; incl 3 metres grading 11.15g/t Au from 108 metres; and 21 metres grading 2.38g/t Au from 141 metres; incl 6 metres grading 6.18g/t Au from 144 metres; and 6 metres grading 10.65g/t Au from 168 metres; incl 3 metres grading 17.80g/t Au from 171 metres;

• ➢ EPP012 was drilled on the southernmost RC drill traverse and this significant gold mineralisation is open to the south.

• ➢ This extensive regional exploration program focused on the immediate mine area to the south of Tomingley has continued as part of the plan to provide additional ore feed, either at surface or underground, in the future to Tomingley Gold Operations (TGO).

• ➢ Further drill results, to be announced in the coming weeks as assays are received, are expected to confirm the potential for substantial mine life extension.

CONTACT INVESTORS MEDIA

: NIC EARNER, MANAGING DIRECTOR, ALKANE RESOURCES LTD, TEL +61 8 9227 5677

: NATALIE CHAPMAN, CORPORATE COMMUNICATIONS MANAGER, TEL +61 418 642 556 : HILL+KNOWLTON STRATEGIES: MARCHA VAN DEN HEUVEL, TEL +61 2 9286 1226 OR +61 468 960 457

Ground Floor, 89 Burswood Road, Burswood WA 6100, AUSTRALIA (PO Box 4384, Victoria Park WA 6979, AUSTRALIA) Telephone: +61 8 9227 5677 Facsimile: +61 8 9227 8178 www.alkane.com.au mail@alkane.com.au

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Tomingley Gold Project

Alkane Resources Ltd 100%

The Tomingley Gold Project (TGP) covers an area of approximately 440km[2 ] stretching 60km north-south along the Newell Highway from Tomingley in the north, through Peak Hill and almost to Parkes in the south. The TGP contains Alkane’s currently operating Tomingley Gold Operations (TGO), an open pit mine with a 1Mtpa processing facility that is transitioning to underground through 2019.

Over the last year Alkane has conducted an extensive regional exploration program with the objective of defining additional resources that have the potential to be mined either via open pit or underground operations and fed to TGO. The program has yielded broad, shallow high grade intercepts that demonstrate potential for material project life extension and show that a return to open pit mining and / or underground extension is possible with appropriate resource confirmation, landholder agreement and regulatory approvals.

Exploration drilling in the last twelve months has focussed on the Roswell, San Antonio and El Paso prospects which are all located within 7km of the TGO processing facility.

Significant broad high grade results have been reported for the Roswell prospect (ASX announcement 1 February 2019) and at the San Antonio prospect (ASX announcement 29 March 2019), 3 to 4km south of TGO. As part of the recent program assay results were received from 10 reverse circulation (RC) drill holes completed at the El Paso prospect, approximately 7km from TGO, for a total of 1,973 metres.

The drilling undertaken:

• targeted the southern section of the El Paso prospect where the deep overburden shallows to only 25 metres thick;

• was completed along four, nominal 80 metre spaced, traverses with 60 metre drill hole spacing, testing a 220 metre strike length;

• includes three drill holes that did not reach target depth, two subsequently were re-drilled; and

• 3 metre composite samples were assayed. Assaying of 1 metre re-split samples is underway.

An additional 3,000 metres of RC drilling to further test mineralisation extensions at the Roswell and San Antonio prospects is now completed. Assaying of the supplementary drilling program is underway and will be announced when received.

Managing Director, Nic Earner, said: “The third new discovery by Alkane only 7 kilometres from the Tomingley Gold Operations processing plant is great news. Together with the Roswell and San Antonio prospects we now have over 2,500 metres strike length that is still open to the south towards Peak Hill. We’re looking forward to announcing further drill results in the coming weeks, and confirming the potential for substantial mine life extension.”

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El Paso Prospect

El Paso prospect has been predominantly tested by nominal 200 metre spaced air core drilling traverses and four diamond core drill holes with mineralisation and alteration evident over a 1,000 metre strike length. The mineralised bedrock is covered to the south by 25 metres thick cover, deepening to the north to 50 metres thick detrital alluvial sands and gravels.

The current RC drilling was conducted on nominal 80 metre spaced traverses testing a strike length of over 220 metres with drill holes spaced 60 metres apart, comprising 10 drill holes for a total of 1,973 metres. The RC drilling targeted the moderately covered, southern section of the prospect where a previous diamond core drill hole intersected significant quartz veining with visible gold along the western contact of an intensely phyllic altered feldspar phyric andesite (EPD004 assayed 2.6 metres grading at 6.31g/t Au – ASX Quarterly Activities announcement 27 April 2018). Recent petrographic studies have identified this unit as texturally and mineralogically identical to the andesite unit that hosts the majority of the Roswell and San Antonio gold mineralisation.

The mineralisation is characterised as bleached zones of quartz-carbonate-pyrite-arsenopyrite veins mostly hosted within a phosphorous rich feldspar phyric andesite with lesser gold zones hosted within the volcaniclastics. The mineralisation at south El Paso appears to be constrained as sub vertical dipping sheeted veins, striking north, within subvertical stratigraphy comprising of volcanics interlayered with immature volcaniclastic metasediments.

The mineralisation is occasionally displaced by post mineralisation dolerite dykes. These dolerites commonly transect the Mingelo Volcanic Belt with a typical orientation of steeply dipping to the northnortheast, striking west-northwest.

Significant gold mineralisation confirmed by the recent RC drilling at El Paso prospect is of a combined strike length of over 220 metres, with results of:

EPP007	15 metres grading 1.05g/t Au from 48 metres;
EPP011	6 metres grading 2.88g/t Au from 180 metres;
incl	3 metres grading 4.78g/t Au from 183 metres;
EPP012	12 metres grading 4.99g/t Au from 108 metres;
incl	3 metres grading 11.15g/t Au from 108 metres;
and	21 metres grading 2.38g/t Au from 141 metres;
incl	6 metres grading 6.18g/t Au from 144 metres;
and	6 metres grading 10.65g/t Au from 168 metres;
incl	3 metres grading 17.80g/t Au from 171 metres;
EPP013	9 metres grading 1.68g/t Au from 75 metres;
EPP014	9 metres grading 1.38g/t Au from 159 metres;

Encouragingly, the high grading gold mineralisation intersected on the southernmost RC drill traverse (EPP011 and EPP012) is only tested by shallow air-core drilling 120 metres further to the south. As observed at San Antonio and Roswell prospects, air-core drilling has often missed these narrow high grade gold structures due to poor lateral coverage and/or poor penetration on significant quartz reefs.

Further drilling and ground magnetic surveying is being planned.

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Regional Geology and Drill Hole Locations: El Paso

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El Paso Sections 6387720mN

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		TOMINGLEY GOLD PROJECT RC DRILLING – May 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT RC DRILLING – May 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT RC DRILLING – May 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT RC DRILLING – May 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT RC DRILLING – May 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT RC DRILLING – May 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT RC DRILLING – May 2019(>0.25g/t Au)	TOMINGLEY GOLD PROJECT RC DRILLING – May 2019(>0.25g/t Au)
Hole ID	Easting	Northing	Dip	Azimuth	Total	Interval	Interval	Intercept	Au	Prospect
	(MGA)	(MGA)		(Grid)	Depth	From(m)	To(m)	(m)	(g/t)
EPP006	613209	6387878	-57	270	252	132	135	3	0.61	El Paso
EPP007	613268	6387878	-57	270	270	48	63	15	1.05
and						123	126	3	0.95
and						156	159	3	0.28
EPP008	613329	6387877	-57	270	82*	No significant results
EPP009	613331	6387890	-57	270	96*	42**	45	3	0.57
and						84	87	3	1.62
EPP010	613246	6387804	-57	270	222	48	51	3	0.49
and						60	63	3	0.54
EPP011	613209	6387719	-57	270	258	42	45	3	1.28
and						48	51	3	0.38
and						180	186	6	2.88
incl						180	183	3	4.78
EPP012	613269	6387719	-57	270	258	48	51	3	0.35
and						108	120	12	4.99
incl						108	111	3	11.15
and						141	162	21	2.38
incl						144	150	6	6.18
and						168	174	6	10.65
incl						171	174	3	17.80
EPP013	613329	6387866	-57	270	198	75	84	9	1.68
and						105	108	3	0.44
and						171	174	3	0.39
EPP014	613210	6387942	-57	270	240	108	114	6	0.63
and						138	141	3	0.41
and						159	168	9	1.38
and						189	192	3	0.36
EPP015	613290	6387938	-57	270	97*	No significant results

• hole abandoned early. **base of alluvium. True widths are approximately 50% of intercept width.

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Competent Person

Unless otherwise advised above, the information in this report that relates to exploration results, mineral resources and ore reserves is based on information compiled by Mr David Meates MAIG, (Alkane Senior Exploration Geologist) who has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Meates consents to the inclusion in this report of the matters based on his information in the form and context in which it appears

Previously reported information

This report includes information that relates to exploration results which were prepared and first disclosed under JORC Code 2012. The information was extracted from the Company’s previous ASX announcements as follows:

• Roswell Prospect: 1 Feb 2019 “Multiple High Grade Gold Zones at Tomingley”

• San Antonio Prospect: 29 March 2019 “Significant Au Intercepts Confirm Potential Tomingley ext.”

• El Paso Prospect: 27 April 2018 “Quarterly Activities Report”

The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements. The Company confirms that the form and context in which any Competent Person’s findings are presented have not been materially modified from the original market announcement.

Disclaimer

This report contains certain forward looking statements and forecasts, including possible or assumed reserves and resources, production levels and rates, costs, prices, future performance or potential growth of Alkane Resources Ltd, industry growth or other trend projections. Such statements are not a guarantee of future performance and involve unknown risks and uncertainties, as well as other factors which are beyond the control of Alkane Resources Ltd. Actual results and developments may differ materially from those expressed or implied by these forward looking statements depending on a variety of factors. Nothing in this report should be construed as either an offer to sell or a solicitation of an offer to buy or sell securities.

This document has been prepared in accordance with the requirements of Australian securities laws, which may differ from the requirements of United States and other country securities laws. Unless otherwise indicated, all ore reserve and mineral resource estimates included or incorporated by reference in this document have been, and will be, prepared in accordance with the JORC classification system of the Australasian Institute of Mining, and Metallurgy and Australian Institute of Geoscientists.

ABOUT ALKANE ‐ www.alkane.com.au ‐ ASX: ALK and OTCQX: ANLKY

Alkane is a gold production company with a multi‐commodity exploration and development portfolio. Alkane’s projects are predominantly in the Central West region of NSW, but extend throughout Australia.

Alkane’s gold production is from the Tomingley Gold Operations (TGO) which has been operating since early 2014. Alkane has investments in other gold exploration and development companies.

Alkane’s most advanced gold exploration projects are in the 100% Alkane owned tenement area between TGO and Peak Hill and have the potential for sourcing additional ore for TGO.

Alkane has other 100% owned exploration tenements in Central Western NSW prospective for gold and copper.

Alkane’s largest non‐gold project is the Dubbo Project (DP), a large in-ground resource of zirconium, hafnium, niobium, yttrium and rare earth elements. As it is an advanced polymetallic project outside China, it is a potential strategic and independent supply of critical minerals for a range of sustainable technologies and future industries. It has a potential mine life of 75+ years. The DP is development ready, subject to financing, with the mineral deposit and surrounding land acquired and all major State and Federal approvals in place.

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The following tables are provided to ensure compliance with the JORC Code (2012) edition requirements for the reporting of exploration results.

JORC Code, 2012 Edition – Table 1 TOMINGLEY GOLD PROJECT

Section 1 Sampling Techniques and Data

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

Criteria	JORC Code explanation	Commentary
Sampling techniques	• Nature and quality of sampling (e.g. cut 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.	RC samples are collected at one metre intervals via a cyclone on the rig. The cyclone is cleaned regularly to minimise any contamination.
	• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	Drilling, sampling and QAQC procedures are carried out to industry standards.
	• Aspects of the determination of mineralisation that are Material to the Public Report. 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.	RC Drilling – the total sample (~20-30kg) is delivered via cyclone into a large plastic bag which is retained for future use if required. A sub-sample of approximately 1kg is spear sampled from each plastic bag and composited to make a 3 metres sample interval. The 1m intervals forming composite samples assaying ≥0.20 g/t Au or with high As are resplit using a Jones riffle splitter on the rig into a separate calico at the time of drilling and re-submitted to the laboratory for re-assay. All samples sent to laboratory are crushed and/or pulverised to produce a ~100g pulp for the assay process. Gold was determined by fire assay fusion of a 50g charge with an AAS analytical finish. A multi-element suite was determined using an aqua regia or multi-acid digest with an AES, MS analytical finish.
Drilling techniques	• Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc).	Reverse circulation (RC) drilling using 110mm rods 144mm face sampling hammer.
Drill sample recovery	• Method of recording and assessing core and chip sample recoveries and results assessed.	Sample quality is assessed by the sampler by visual approximation of sample recovery and if the sample is dry, damp or wet.
	• Measures taken to maximise sample recovery and ensure representative nature of the samples.	A high capacity RC rig was used to enable dry samples collected. Drill cyclone and sample buckets are cleaned between rod changes and after each hole to minimise cross-hole contamination.
	• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	There is no known relationship between sample recovery and grade.
Logging	• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	Each one metre interval is geologically logged for characteristics such as lithology, weathering, alteration (type, character and intensity), veining (type, character and intensity) and mineralisation (type, character and volume percentage).
	• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.	All logging is qualitative with visual estimates of the various characteristics.

CONTACT : NIC EARNER, MANAGING DIRECTOR, ALKANE RESOURCES LTD, TEL +61 8 9227 5677 INVESTORS : NATALIE CHAPMAN, CORPORATE COMMUNICATIONS MANAGER, TEL +61 418 642 556 MEDIA : HILL+KNOWLTON STRATEGIES: MARCHA VAN DEN HEUVEL, TEL +61 2 9286 1226 OR +61 468 960 457

Ground Floor, 89 Burswood Road, Burswood WA 6100, AUSTRALIA (PO Box 4384, Victoria Park WA 6979, AUSTRALIA) Telephone: +61 8 9227 5677 Facsimile: +61 8 9227 8178 www.alkane.com.au mail@alkane.com.au

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Criteria	JORC Code explanation	Commentary
		A representative sample of each one metre interval is retained in chip trays for future reference.
	• The total length and percentage of the relevant intersections logged.	All samples have been geologically logged by qualified geologists.
Sub-sampling techniques and sample preparation	• If core, whether cut or sawn and whether quarter, half or all core taken.	RC drilling only
	• If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	Initially each one metre interval is spear sampled with 3m composite samples collected in a calico sample bag and forwarded to the laboratory. The 1m intervals forming composite samples assaying ≥0.20 g/t Au or with high As are resplit using a Jones riffle splitter on the rig during the time of drilling and re-submitted to the laboratory for re-assay. Laboratory Preparation – the entire sample (~3kg) is dried and pulverised in an LM5 (or equivalent) to ≥85% passing 75µm. Bulk rejects for all samples are discarded. A pulp sample (±100g) is stored for future reference.
	• For all sample types, the nature, quality and appropriateness of the sample preparation technique.	ALK sampling techniques are of industry standard and considered adequate.
	• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.	Field duplicate samples collected at every stage of sampling to control procedures - ~1:50 alternating with CRM.
	• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.	Duplicate samples are collected for both composite intervals and re-split intervals. Duplicates generally show excellent repeatability.
	• Whether sample sizes are appropriate to the grain size of the material being sampled.	Sample sizes are industry standard and considered appropriate.
Quality of assay data and laboratory tests	• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	Gold is determined using a 50g charge fused at approximately 1100°C with alkaline fluxes, including lead oxide. The resultant prill is dissolved in aqua regia with gold determined by flame AAS. For other geochemical elements, samples are digested by aqua regia or multi-acid with each element determined by ICP Atomic Emission Spectrometry or ICP Mass Spectrometry. These additional elements are generally only used for geological interpretation purposes, are not of economic significance and are not routinely reported.
	• For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.	No down hole geophysical logging or hand held XRF analyses undertaken.
	• 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 _have been established. _	Commercially prepared Certified Reference Materials (CRM) are inserted at 1 in 50 samples. CRM’s are not identifiable to the laboratory. Field duplicate samples are inserted at 1 in 50 samples (alternate to CRM’s). Laboratory QAQC sampling includes insertion of CRM samples, internal duplicates and screen tests. This data is reported for each sample submission. Failed standards result in re-assaying of portions of the affected sample batches.
	• The verification of significant intersections by either independent or alternative company personnel.	Drill data is compiled and collated, and reviewed by senior staff. External consultants do not routinely verify exploration data until resource estimation procedures are deemed necessary.
	• The use of twinned holes.	No twinned holes have been drilled at this early stage of exploration.

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Criteria	JORC Code explanation	Commentary
Verification of sampling and assaying	• Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	All drill hole logging and sampling data is entered directly into field data entry spreadsheets for transfer and storage in an industry standard access database with verification protocols in place. All primary assay data is received from the laboratory as electronic data files which are imported into sampling database with verification procedures in place. QAQC analysis is undertaken for each laboratory report. Digital copies of Certificates of Analysis (COA) are stored in a central database with regular (daily) backup. Original survey data is stored on site. Data is also verified on import into various software packages.
	• Discuss any adjustment to assay data.	No assay data was adjusted.
Location of data points	• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	Drill holes are laid out using hand held GPS (accuracy ± 2m) then DGPS surveyed accurately (± 0.1m) on completion.
	• Specification of the grid system used.	MGA (Zone 55), GDA94
	• Quality and adequacy of topographic control.	As noted above, all drill holes DGPS surveyed accurately (± 0.1m) on completion.
Data spacing and distribution	• Data spacing for reporting of Exploration Results.	At this early exploration stage, the data spacing is variable as the focus is on geological mapping and identifying new zones of mineralisation.
	• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.	Reconnaissance drilling only, no resource estimations being undertaken.
	• Whether sample compositing has been applied.	3m sample composites collected as described above
Orientation of data in relation to geological structure	• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.	Early phase drilling at El Paso prospect, however core hole EPD004 measured mineralised structures dipping sub vertically, striking north. Drill holes are collared 60oto the west which is considered practical for a drill rig and approximately 50% to intersecting the mineralised structures.
	• 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.	It is not thought that drilling direction will bias assay data significantly.
Sample security	• The measures taken to ensure sample security.	All samples are bagged in tied numbered calico bags, grouped into larger tied polyweave bags and transported 1.5 hour to ALS in Orange by Alkane personnel. All sample submissions are documented via ALS tracking system and all assays are reported via email. Sample pulps are returned to site and stored for an appropriate length of time (minimum 3 years). The Company has in place protocols to ensure data security.
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	The Company does not routinely have external consultants verify exploration data until resource estimation procedures are deemed necessary.

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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or nationalpark and environmental settings.	Drilling completed on exploration licence number 5675 is owned 100% by Alkane.
	• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	All exploration licences are in good standing. EL5675 expires on 17 January 2023
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	Significant exploration has been completed in the area by Alkane since 2001 and the Tomingley Gold Mine was commissioned in 2014. Minor work was completed by previous companies in EL5675 area covered by this announcement but many holes did not penetrate the cover sequence.
Geology	• Deposit type, geological setting and style of mineralisation.	Mineralisation at Tomingley is associated with quartz veining and alteration focused within porphyritic sub-volcanic andesite sills and adjacent volcaniclastic sediments. The deposits appear to have formed as the result of a competency contrast between the porphyritic sub-volcanic sills and the surrounding volcaniclastic sediments, with the sills showing brittle fracture and the sediments ductile deformation, and have many similarities to well documented orogenic - lode-style gold deposits. Geological nature of the Tomingley Deposits is well documented elsewhere. Geological nature of Peak Hill is well documented elsewhere. Geological nature of Glen Isla is fine grained low-sulfidation epithermal Au mineralisation that was discovered in Middle Devonian continental felsic volcanic sequences (Dulladery Volcanics) in the Young Zone. The gold prospective Dulladerry Volcanics host a number of low sulfidation epithermal occurrences including the Mt Aubrey gold deposit (120,000 t @ 3.3 g/t Au) and are broadly similar in age (~370Ma) to dates published (~350 - 360 Ma) for volcanic units that host well known Drummond Basin epithermal Au deposits in north Queensland. Dulladerry Volcanics include flow banded rhyolites and quartz feldspar porphyries and are locally bimodal, with amygdaloidal basalts identified at Glen Isla and Mt Aubrey.
Drill hole Information	• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length.	See body of announcement and figures.
	• If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	Required information on all drill holes included in body of announcement.
Data aggregation methods	• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.	Exploration results reported – for uncut gold grades; grades are calculated by length weighted average.

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Criteria	JORC Code explanation	Commentary
	• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.	Reported intercepts are calculated using a lower cut of 0.25g/t Au. No top cut has been used.
	• The assumptions used for any reporting of metal equivalent values should be clearly stated.	No metal equivalents are reported.
Relationship between mineralisation widths and intercept lengths	• These relationships are particularly important in the reporting of Exploration Results - If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).	The mineralisation is structurally complex and drilling is reconnaissance in nature and there is currently minimal understanding of the true widths. Down hole lengths reported – true widths estimated to be 50% of the down hole lengths.
Diagrams	• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Plans and sections are included in the body of the announcement.
Balanced reporting	• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	The drilling program is reconnaissance in nature with 10 holes completed. All completed drill holes are listed with samples assaying ≥0.25g/t Au have been reported.
Other substantive exploration data	• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	No other exploration data is available to assist in interpretation
Further work	• The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).	It is recommended that further drilling be undertaken within the licence to further define the targets.
	• Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	See figures included in the announcement.

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