ARIKA RESOURCES LIMITED - Capital/Financing Update 2014

Level 9 575 Bourke Street Melbourne VIC 3000 Phone: +61 3 9606 3888 | Fax: +61 8 9606 3800

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ASX Code: PLD

25 November 2014

Admiral Bay Zinc Project Mineral Resource

Previous Mineral Resource Estimate (MRE) re-stated in compliance with JORC Code
Inferred Resource of 72Mt at 3.1% Zn, 2.9% Pb, 18 g/t Ag (5.4% ZnEq [1] )
Higher grade zones (Zn or Pb > 5%) show significant metal accumulation
Substantial intersections (20 – 75m) indicate potential for resource expansion
High success rate of past drilling supports potential for locating additional mineralisation
The MRE is currently limited to 2.1km of a drill tested 18km long mineralised corridor
Discussions have commenced with a wide range of potential development partners

PLD Corporation Limited (ASX:PLD) (“PLD” or “the Company”) is pleased to advise it has completed a review of the Admiral Bay Project data and can now re-state the historical drill hole results and Mineral Resource estimation outputs in compliance with the JORC Code 2012 and ASX Listing Rules.

The results confirm the project to be one of the world’s most significant undeveloped zinc deposits, which hosts 72Mt at 5.4% ZnEq [1] (4.31Mt of contained zinc and lead). Higher grade zones (>5% Zn or Pb) as well as and substantial intersections (20m–75m) indicate the potential to significantly improve the MRE.

The MRE is currently limited to a 2.1km strike of an 18km long mineralised corridor, which has been partially drill tested yet with a high success rate of mineralised drill intersections, also indicating the potential to significantly improve the MRE.

Admiral Bay is described as a carbonate-hosted zinc-lead-silver-barium deposit and classified as a Mississippi Valley-type deposit (MVT), with the ratio of mineralised drill intersections along the 18 km mineralised corridor being very high, providing support for the potential of additional deposits of similar size as the MRE at Admiral Bay, along the mineralised corridor.

The Company is now compiling a Mineral Resource upgrade and conducting a Metallurgical Testwork review and will keep the market informed of this work as part of the due diligence process.

Commenting on the Resource and Discussions Managing Director Matt Gauci said:

“The review confirms Admiral Bay as a Tier 1 zinc deposit of 72Mt at 5.4% ZnEq [1] that is hosted within only 2.1km of an 18km mineralised corridor which shows extraordinary continuity. The Company is now working through a Mineral Resource upgrade and Metallurgical Testwork review as part of the due diligence process. Discussions have commenced with a wide range of potential development partners aimed at ultimately creating value for PLD shareholders”.

1 Zinc Equivalent calculated as ZnEq=0.9*Zn+0.85*Pb+0.01*Ag

October 2014 monthly metal prices as listed in www.indexmundi.com of US$2276.83/tonne for Zn and US$2034.26/tonne for Pb

Metallurgical testwork has predicted recoveries in excess of 95% for Pb, 90% for Zn and from 46–54% for Ag; consequently a Ag recovery of 50% was selected (however it should be noted that the highly variable grades Ag and unknown smelter thresholds mean the significance of silver is minor).

After review of the historical metallurgical testwork it is the Company’s opinion that there is a reasonable potential for both zinc, lead and silver to be recovered and sold.

Level 9 575 Bourke Street Melbourne VIC 3000 Phone: +61 3 9606 3888 | Fax: +61 8 9606 3800

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Background

The Admiral Bay deposit was discovered in 1981 by Meridian Oil NL during petroleum exploration, and was subsequently acquired by CRA Exploration (the exploration arm of CRA Limited, now Rio Tinto Ltd), who undertook substantial exploration from 1986 to 1992. Kagara Ltd acquired the deposit from CRA Exploration in 2004 and completed an exploration programme that lead to an Inferred Resource, as well as a prefeasibility study to test the viability of the project.

Location

The Admiral Bay Project is located in the coastal region of the Great Sandy Desert, on the southern edge of the Kimberley region some 140km south of Broome, Western Australia (Figure 1). The project area is well located, being only 70km east of the all-weather Great Northern Highway, which connects Port Hedland to Broome. Power is present nearby with the Broome Natural Gas Pipeline servicing the West Kimberley Power Project. The Ports of Broome and Derby provide port options servicing Western Australia's Kimberley region and currently support various exports.

Tenure

The Admiral Bay deposit is located within two granted Mining Licences (ML04/244 and ML04/249), which are valid until 20/3/2033 and one granted Exploration License (EL04/1610), which is valid until 3/9/2017. The minimum annual expenditure commitment is $248,100 and annual rents are $46,910. The tenements are currently in good standing with the WA Department of Mines and Petroleum.

Geology, Mineralisation, Resources and Potential

Within the project area, the surface geology is dominated by Quaternary aeolian sand. Sand sheets in the northwest grade into 2–10m high dunes towards the southeast.

The stratigraphy is comprised of a thick sequence of Cretaceous-Jurassic-Permian sandstones/siltstones (up to 1,200m thick), which overlies a variably dolomitised siltstone/shale/limestone – the Nita Formation – which is host to an upper zinc-rich zone and a lower lead-rich zone of mineralisation (Figure 2).

McCracken et al (1996) report that the deposit is located in the Great Sandy Accommodation Zone (GSAZ) of the Admiral Bay Fault Zone (ABFZ), a major fault zone which separates the Broome Platform from the Willara Sub-basin of the Canning Basin.

The Admiral Bay deposit consists of four main mineralised zones (Figure 3):

(1) an extensively altered and fractured algal bioherm association;
(2) a lower, lead-rich zone in the upper Goldwyer Formation and lower Leo Member of the Nita Formation;
(3) a hydrothermal dolomite zone that extensively replaces the Leo Member; and,
(4) an upper, zinc-rich zone in the Cudalgarra Member of the Nita Formation and lower Bongabinni Formation.

Admiral Bay is described as a carbonate-hosted zinc-lead-silver-barium deposit, with mineralisation hosted mainly in the Nita Formation and, to a lesser degree, in the Carribuddy and Goldwyer Formations, over a mineralised strike extent of 2.1km; nominally the deposit is classified as a Mississippi Valley-type deposit (MVT).

However, Admiral Bay does not appear to show all of the characteristics of typical MVT deposits. Rather it appears to be a large and strongly focused MVT deposit, more like Reocin (Spain) or Polaris (Canada), as compared to the more ‘poddy’ Goongewa (Western Australia),mid-continental US or Polish-style MVTs. The ratio of mineralised drill intersections in early-stage exploration drilling is very high for this style of mineralisation.

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Level 9 575 Bourke Street Melbourne VIC 3000 Phone: +61 3 9606 3888 | Fax: +61 8 9606 3800

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Figure 1: Admiral Bay Project Location

Level 9 575 Bourke Street Melbourne VIC 3000 Phone: +61 3 9606 3888 | Fax: +61 8 9606 3800

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Figure 2: Admiral Bay schematic East-West Long Section (from Kagara)

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Figure 3: Schematic Northeast-Southwest Cross Section of Admiral Bay (from McCracken et al 1996[2] )

2 McCracken, S., Etminan, H., Connor, A. and Williams, V. (1996). Geology of the Admiral Bay Carbonate hosted zinc-lead deposit, Canning Basin, Western Australia. Society of Economic Geologists Special Publication No. 4. Pp330–349

Level 9 575 Bourke Street Melbourne VIC 3000 Phone: +61 3 9606 3888 | Fax: +61 8 9606 3800

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Zinc-lead-silver sulphides infill dissolution, breccia and fracture porosity and overprint stylolites. Previous drilling indicates that the upper high-grade Zn-rich zone is up to 20m thick, whilst the lower high-grade Pb zone is up to 15m thick. The high-grade zones described above are hosted within a broad envelope, of moderate-grade Zn-Pb mineralisation up to 110–120m thick.

In general, base metal mineralisation occurs in the lower parts of the Siluro-Devonian Caribuddy Formation and the Ordovician-age Nita and Goldwyer Formations about 1,250m below surface. Mineralisation is most typically hosted within calcareous rocks, and commonly associated with appreciable barite as a gangue mineral.

Review of seismic data shows that the post-Nita Formation sequence of rocks is recognised as a well stratified sediment succession on seismic sections and allows a good interpretation of post-Nita geological events. The host sequence is defined as the seismic interval immediately below. Its poor seismic character is due to alteration, faulting in the area below the mineralisation, probable significant facies variation across strike, and the relatively restricted thickness of the zone. Rift-style faulting and sedimentation can be inferred below the Willara Formation.

The facies variation is associated with reef growth over the leading edge of a sub-basin hanging wall block. It appears that the crest of the hangingwall block of the Admiral Bay Fault was covered by reefs. Longitudinal facies continuity (in long section) of this reefal zone can be seen.

There is a strong correlation of drilled mineralisation with the reefal environment and basement fault location. Further re-processing and interpretation of the seismic data is expected to provide valuable information to support resource estimation and exploration targeting.

Historical Drilling Results

The main zone of mineralisation at Admiral Bay was sampled using diamond core drilling over several drilling campaigns undertaken by CRA Exploration Pty Ltd and by Kagara Ltd. A total of 21 surface diamond drillholes were used for the resource estimation, of which 11 drilled by Kagara. All drillholes were vertical.

Higher grade (Zn or Pb > 5%) and/or substantial intersections (from 20–75m) flag potential for high grade zones with in the mineralisation envelopes.

A summary of drill intersections is provided in Table 2, with collar locations provided in

Figure 4 and Figure 5.

The current Inferred Mineral Resource is hosted within 2.1km segment of an 18km strike length of the Admiral Bay Fault Zone within the tenement area. Regional scout holes testing the same structural/mineralisation corridor along strike have intersected a number of zones of significant mineralisation (as shown in Table 3 and Figure 6). Unusually for MVT style mineralisation there has been a high success rate of intersecting mineralisation in past drilling which suggests the potential for locating additional mineralisation is positive.

While MVT style mineralisation is unlikely to be continuous along the entire 18km extent of the Admiral Bay Fault Zone with the project tenements, the known mineralised intersections in regional scout holes provides support for the potential of additional deposits of potentially similar size to the known resources at Admiral Bay.

Comprehensive details of the drilling programme are provided in Appendix 2, JORC Table 1.

Level 9 575 Bourke Street Melbourne VIC 3000 Phone: +61 3 9606 3888 | Fax: +61 8 9606 3800

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Mineral Resource Estimates

Admiral Bay currently has an Inferred Resource of 72Mt which is based upon drilling along only a small portion (2.1km of the 18km) of strike extent. The current Inferred Resource (Table 1) was initially estimated by Coffey Mining in 2008.

Table 1: Admiral Bay Mineral Resource Estimate

le 1: Admiral BayMineral Resource Estimate	le 1: Admiral BayMineral Resource Estimate	le 1: Admiral BayMineral Resource Estimate	le 1: Admiral BayMineral Resource Estimate	le 1: Admiral BayMineral Resource Estimate	le 1: Admiral BayMineral Resource Estimate

INFERRED RESOURCE
Zone	Million Tonnes	Zn (%)	Pb (%)	Ba (%)	Ag (g/t)

ZONE 1 (CFM/NFM contact zone--high Zn/low Pb)	21.9	3.8	0.9	7	14
ZONE 2 (NFM hosted zone--high Zn/high Pb)	35.1	4	2.1	13	20
ZONE 3 (NFM hosted zone--low Zn/high Pb)	24.6	0.1	2.7	28	8
ZONE 6 (NFM/GFM contact zone--low Zn/high Pb)	15.1	0.1	7.5	15	21
TOTAL	96.7	2.4	2.9	16	15

Notes:

Zones 1, 2 and 6 equate to 72 million tonnes at a grade of 3.1% Zn, 2.9% Pb, 18 g/t Ag and 11% Ba.
Inverse Distance (Power=2) Whole Block Estimates using 25mE x 25mN x 5mRL Parent Block Dimensions
Reported using a Zinc Equivalent lower cut-off grade of 2% where ZNEQ=ZN+(0.79PB)+(0.02AG)
Unconstrained and using ROUNDED figures.
Zinc-Lead-Barium-Silver Grade-Tonnage Distributions subdivided by JORC Resource Categories.
CFM = Cudalgarra Formation, NFM=Nita Formation, GFM=Goldwyer Formation

As part of a due diligence review of the Admiral Bay Project CSA Global was retained to appraise the geology and resources of the project. To comply with the 2012 edition of the JORC Code, CSA has completed a desktop review of the geology of the project and compiled a Table 1 as required by the JORC Code (see Appendix 2).

A summary of the information used in the resource estimation is as follows:

Drilling techniques

The deposit was sampled using diamond core drilling (DD) over several drilling campaigns undertaken by CRA Exploration Pty Ltd and by Kagara Ltd. A total of 21 surface diamond drillholes were used for the resource estimation, of which 11 drilled by Kagara. All drillholes were vertical. Mud rotary pro-collars were used to drill the cover sequence and manage zones of artesian water and gas kicks.

All drilling by Kagara through the mineralised zones utilised predominantly HQ diamond core, with exception being NQ core used in hole ABRD001. Logged core recovery is only available for the Kagara drillholes. The data indicates excellent average recoveries of 99% of cored portions of the drillholes. CRAE holes were predominantly NQ is size.

Sampling and Sub-sampling techniques

The entire length of the drill core was sampled. For CRAE core one third core was sampled; for Kagara drillholes the entire length of the drillcore was sampled. The HQ core was sampled as quarter core, and the NQ (ABRD001 – partial) as half core. The core was routinely sampled on 1m intervals, with a minimum interval of 0.25m. Sample sizes are considered to be appropriate to accurately represent the mineralisation at Admiral Bay based on the thickness and consistency of the intersections, the sampling methodology and the percent value assay ranges for the primary elements.

Level 9 575 Bourke Street Melbourne VIC 3000 Phone: +61 3 9606 3888 | Fax: +61 8 9606 3800

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The mud rotary precollars were collected as 10m composite samples by the contract mud loggers. These samples were not analysed

Geological Interpretation

Drillhole data spacing is variable. Higher density drilling occurs along the 285° striking orientation of mineralisation for approximately 2.1km of strike length, which represents the model area. Definition of mineralisation across strike is limited with only 4 of the cross sections having two or more drillholes.

The zones are currently interpreted to be coincident with reef mount structure associated with the Admiral Bay Fault Zone (ABFZ). Mineralisation appears to be relatively continuous along the strike of the reef, but lower grade / less well developed on its flanks. However, the flank areas are poorly defined or tested by drilling.

While mineralisation trend continuity appears to be predictable, grade continuity within the mineralised zones remains relatively uncertain for some of the defined zones and is not adequately defined / constrained by the current drillhole spacing.

Drillhole intercept logging and assay results have formed the basis for the geological interpretation. The precise limits and geometry cannot be absolutely defined due to the limitations of the current drill coverage. Further work is required to better define the geometry and limits of the mineralised zones. The grade and lithological interpretation forms the basis for the modelling. Coffey Mining Pty/Ltd developed a geological and mineralisation framework suitable for grade estimation based on a review of the available geological and geochemical data.

Sample Analysis Methods

CRAE samples were processed by Analabs and a four acid digest with AAS finish for Cu, Fe, Pb, Zn, Ag, Ca, Mg; pressed powder XRF for Ba, Sr; and Fusion/Specific ion electrode) for F. Kagara samples were processed by SGS Mineral Services and also used a four acid digestion with AAS finish for Cu, Fe, Pb, Zn; four acid digest with ICPOES finish for Ag, Ca, Mg, As, Bi, Co Cd, Sb; Leco analyser for S; and fusion with OES finish for Ba and Sr.

A Wireline suite comprising gamma, calliper, density, neutron, resistivity, SP, temperature, sonic and magnetic deviation was collected from all drill holes.

The assaying data is slightly incomplete. For the 6,117 data intervals only 6,017 have data for Zn, Pb, Cu. Sulphur data was limited only the Kagara drillholes and there were only 2,429 intervals. Ba data was present for 4,437 intervals with some selectivity on portions of drillholes

Estimation Methodology

Five individual mineralised zones were interpreted based on the drillhole sample data using approximate 1.5-2% Zn and/or Pub cut-offs to define coherent zones of sulphide mineralisation. The currently interpreted mineralised zones extend for approximately 2.1km along 285° NW strike. The width of the zones varies from 150m to 670m with maximum 50m thickness for individual mineralised envelopes. The mineralised zones extend from the depth of 1,160m to the depth of 1,500m below the surface.

All Zn, Pb, Cu, Ag, Total Sulphur and Ba variables estimated in the Admiral Bay resource model mineralised zones were generated using Inverse Distance (ID) using a power of 2. The ID estimates have been completed using Datamine software. Block discretisation of 5x5x2 points (for X x Y x Z respectively) was used for block estimation. Composite length and bulk density weighting was used in the estimation process

The block model was constructed using a 25mE x 25mN x 5mRL parent block size, with subcelling to 6.25mE x 6.25mN x 1.25mRL for domain volume resolution. The parent cell size was chosen on the basis of the general morphology of mineralised bodies and in order to avoid the generation of too large block models. The subcelling size was chosen to maintain the resolution of the mineralised bodies.

Level 9 575 Bourke Street Melbourne VIC 3000 Phone: +61 3 9606 3888 | Fax: +61 8 9606 3800

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For all variables estimated (Zn, Pu, Cu, Ag, Sr, and Ba), a two-pass estimation strategy has been applied, with progressively expanded sample searches applied to successive estimation passes only considering blocks not previously assigned. First pass searches used an anisotropic range of 600m x 300m x 300m with major axis oriented horizontally along strike. If a block was not estimated in the first pass, a second pass search utilised a maximum range of 1200m x 600m x 600m.

The use of similar search radii for the semi-major and minor axis orientations considered the narrow structures being modelled, the variable orientations and curvature of the structures, and erratic distribution of data within the mineralised zones.

The maximum number of composites used for any estimate was restricted to 20 composites for all estimated variables. The minimum number of composites used for any first pass estimate was 10 composites for all estimated variables. The minimum number of composites used for any second pass estimate was two composites for all estimated variables. No octant or other search constraint was applied

All mineralised zone divisions were treated as hard boundaries for data and parameters used in the estimation process.

The block model size was selected largely as a compromise for adequate volume definition of the narrow mineralised zones in an underground mining scenario.

Classification Criteria

The Inferred Mineral Resource classification is based on the evidence from the available drill sampling and seismic interpretation. This evidence is sufficient to imply but not verify geological and grade continuity.

Cut-off grades

Five individual mineralised zones were interpreted based on the drillhole sample data using approximate 1.5–2% Zn and/or Pb cut-offs to define coherent zones of sulphide mineralisation. The resource was reported using a Zinc Equivalent lower cut-off grade of 2%.

Mining factors and assumptions

In June 2010 the Admiral Bay Prefeasibility Study (PFS) was completed by RSV Australia Pty Ltd. The PFS is, by its nature, conservative and encompasses only a small proportion of the broader potential of the Admiral Bay project. The PFS is based on a small portion representing 35% of the Inferred Mineral Resource tonnes, and is modelled over a strike length of 2.1km.

Level 9 575 Bourke Street Melbourne VIC 3000 Phone: +61 3 9606 3888 | Fax: +61 8 9606 3800

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Matt Gauci Managing Director T: +61 3 9606 3888

David Tasker Professional Public Relations T: +61 8 9388 0944

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The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the ‘JORC Code’) sets out minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves. The Information contained in this announcement has been presented in accordance with the JORC Code and references to “Measured, Indicated and Inferred Resources” are to those terms as defined in the JORC Code.

The information in this report that relates to Geology and Exploration Results is based, and fairly reflects, information compiled by Dr Simon Dorling, who is a Member of the Australian Institute of Geoscientists. Dr Dorling is employed by CSA Global Pty Ltd, independent resource industry consultants. Dr Dorling 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’. Dr Dorling consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Mineral Resources is based, and fairly reflects, information compiled by Mr Serik Urbisinov, who is a Member of the Australian Institute of Geoscientists. Mr Urbisinov is employed by CSA Global Pty Ltd, independent resource industry consultants. Mr Urbisinov 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 Urbisinov consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

All parties have consented to the inclusion of their work for the purposes of this announcement.

The interpretations and conclusions reached in this report are based on current geological theory and the best evidence available to the authors at the time of writing.

It is the nature of all scientific conclusions that they are founded on an assessment of probabilities and, however high these probabilities might be, they make no claim for absolute certainty.

Any economic decisions which might be taken on the basis of interpretations or conclusions contained in this report will therefore carry an element of risk.

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Level 9 575 Bourke Street Melbourne VIC 3000 Phone: +61 3 9606 3888 | Fax: +61 8 9606 3800

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Figure 4: Tenements and drill hole locations over DTM showing sand dunes

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Level 9 575 Bourke Street Melbourne VIC 3000 Phone: +61 3 9606 3888 | Fax: +61 8 9606 3800

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Figure 5: Plan view of resource area showing drill holes (colours are different zones within the model)

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Level 9 575 Bourke Street Melbourne VIC 3000 Phone: +61 3 9606 3888 | Fax: +61 8 9606 3800

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Figure 6: Admiral Bay Project – total metal accumulation (in metre.percent for zones with >2% ZnEq)

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APPENDIX 1 – Drill Hole Information

Table 2: Drill Hole Intersections from Admiral Bay Project Inferred Mineral Resource Intersections are length weighted average grades for zones wider than or equal to 2m and greater than 2% Zn or Pb, including up to 2m of internal waste

Tenement	HoleID	Collar Easting (GDA94_51)	Collar Northing (GDA94_51)	Collar RL	TD	From (mGL)	Width Metres	Zn %	Pb %	Ag g/t	ZnEq`3`%
M04/249	ABRD001	428,591	7,874,672	91.1	1431.10	1265.0	5.0	3.41	0.64	14.3	3.8
						1281.0	18.0	2.87	0.28	9.7	2.9
						1313.0	35.0	5.32	3.25	22.7	7.8
						1378.0	10.0	0.02	2.30	10.4	2.1
M04/249	ABRD002	428,522	7,874,520	90.4	1567.40	1377.0	11.0	1.74	0.43	9.7	2.0
						1430.0	6.0	0.01	2.42	3.7	2.1
M04/249	ABRD003	429,132	7,874,498	89.5	1453.80	1345.0	12.0	6.09	1.93	20.9	7.3
						1361.0	9.0	0.36	1.89	4.2	2.0
M04/249	ABRD004	428,140	7,874,692	94.9	1497.50	1370.0	11.0	2.02	0.37	9.1	2.2
						1386.0	5.0	0.09	1.83	4.2	1.7
M04/249	ABRD005	428,207	7,874,905	96.4	1468.50	1272.0	7.0	2.59	0.57	5.4	2.9
						1341.0	36.0	3.45	3.40	17.2	6.2
M04/249	ABRD006	427,830	7,874,916	96.2	1469.30	1295.0	11.0	2.06	0.30	10.5	2.2
						1310.0	69.0	3.23	1.98	16.0	4.7
						1384.0	14.0	0.01	1.76	4.6	1.5
M04/249	ABRD007	428,606	7,874,849	100.5	1541.90	1406.0	7.0	1.91	0.57	7.9	2.3

3 Zinc Equivalent calculated as ZnEq=0.9Zn+0.85Pb+0.01*Ag

Based on October 2014 monthly metal prices as listed in www.indexmundi.com of US$2276.83/tonne for Zn and US$2034.26/tonne for Pb

Metallurgical testwork has predicted recoveries in excess of 95% for Pb, 90% for Zn and from 46–54% for Ag; consequently a Ag recovery of 50% was selected (however it should be noted that the highly variable grades Ag and unknown smelter thresholds mean the significance of silver is minor).

After review of the historical metallurgical testwork it is the Company’s opinion that there is a reasonable potential for both zinc, lead and silver to be recovered and sold.

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Level 9 575 Bourke Street Melbourne VIC 3000 Phone: +61 3 9606 3888 | Fax: +61 8 9606 3800

Tenement	HoleID	Collar Easting (GDA94_51)	Collar Northing (GDA94_51)	Collar RL	TD	From (mGL)	Width Metres	Zn %	Pb %	Ag g/t	ZnEq`3`%
						1434.0	5.0	0.01	1.76	2.8	1.5
M04/249	ABRD008	427,451	7,875,057	96.7	1490.30	1294.0	3.0	1.28	0.15	2.7	1.3
						1326.0	7.0	1.90	0.44	4.0	2.1
						1372.0	10.0	4.26	0.76	20.3	4.7
						1386.0	7.0	1.91	1.93	9.0	3.5
M04/249	ABRD009	429,185	7,874,683	90.0	1464.10	1289.0	13.0	1.19	0.29	4.8	1.4
						1340.0	26.0	0.96	1.83	8.6	2.5
M04/249	ABRD010A	427,069	7,875,172	98.2	1196.20	1306.0	13.0	1.52	0.22	2.8	1.6
						1381.0	11.0	2.43	0.59	13.7	2.8
						1397.0	5.0	0.11	1.76	5.6	1.6
M04/249	ABRD011	429,099	7,874,351	90.5	1515.60	1415.0	5.0	2.34	0.53	12.6	2.7
						1438.0	10.0	0.01	2.67	11.2	2.4
M04/249	ABRD011D2	429,099	7,874,351	90.5	1488.30	1250.0	7.0	3.56	0.83	8.6	4.0
						1410.0	7.0	2.60	0.55	12.1	2.9
M04/249	ABRD012	429,484	7,874,665	89	730.7	abandoned - no SigInt
M04/249	Cudalgarra-1	428,763	7,874,655	99.5	1703.00	1270.0	75.0	2.42	0.51	11.8	2.7
						1378.0	24.0	0.15	5.71	17.6	5.2
M04/249	DD86SS02	428,882	7,874,628	92.0	1753.60	1264.0	40.0	2.86	0.82	18.9	3.5
						1319.0	28.0	3.19	2.85	11.9	5.4
						1362.0	22.0	0.09	10.91	6.3	9.4
						1513.0	9.0	0.04	6.47	21.2	5.7
						1603.0	7.0	8.54	1.18	2.1	8.7
E04/249	DD87SS05	428,587	7,874,020	89	1269.4	No SigInt
E04/249	DD88SS08	428,659	7,874,289	94.5	1854	No SigInt
M04/249	DD89SS14	428,705	7,874,441	95.6	1620.35	1424.0	6.5	3.01	1.24	14.1	3.9
						1449.0	4.0	0.00	2.13	5.3	1.9

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Tenement	HoleID	Collar Easting (GDA94_51)	Collar Northing (GDA94_51)	Collar RL	TD	From (mGL)	Width Metres	Zn %	Pb %	Ag g/t	ZnEq`3`%
						1466.0	53.0	0.22	7.81	30.4	7.1
M04/249	DD89SS15	428,338	7,874,789	104.1	1638.50	1336.0	41.0	3.26	1.87	17.2	4.7
						1619.0	5.0	0.06	7.00	19.1	6.2
M04/249	DD89SS16	429,497	7,874,511	94.1	1507.75	1349.0	20.0	2.06	1.07	14.1	2.9
E04/1610	DD89SS17	430,357	7,874,863	94.30	1520.00	1315.6	3.4	4.78	3.00	34.5	7.2
						1336.0	39.0	3.71	0.76	20.2	4.2
						1379.0	5.0	0.03	3.76	9.7	3.3
						1389.0	8.0	0.01	2.91	5.5	2.5
						1419.0	5.0	0.16	4.85	28.6	4.6

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Table 3: Admiral Bay Project Regional Drill hole intersections

Intersections are length weighted average grades for zones 2m or wider with greater than 2% Zn or Pb, including up to 2m of internal waste

Tenement	HoleID	Collar Easting (GDA94_51)	Collar Northing (GDA94_51)	Collar RL	TD	From (mGL)	Width Metres	Zn %	Pb %	Ag g/t	ZnEq %
M04/244	DD87SS06	417750	7880575	102.1	1612.7	1420.0	7.0	3.06	1.09	7.6	3.8
						1460.0	27.0	4.25	3.21	27.1	6.8
M04/244	DD87SS07	428917	7875181	95.5	1819.3	No SigInt
M04/244	DD89SS18	418030	7880990	107.5	1536.2	1420.0	2.0	4.99	1.07	31.9	5.7
						1460.0	5.0	0.00	1.21	5.1	1.1
M04/244	DD90SS19	415589	7881440	114.3	1686.2	1571.5	1.5	3.30	0.31	8.8	3.3
						1581.0	1.0	1.08	3.29	15.0	3.9
M04/244	DD90SS20	417863	7880741	108.0	1505.8	1384.0	14.0	2.77	1.98	19.6	4.4
M04/244	DD90SS21	417638	7880409	102.0	1656.8	1549.8	6.1	2.90	0.50	8.5	3.1
E04/1610	DD86SS03	425045	7875850	100.1	1723.6	1257.0	6.0	2.47	0.60	4.7	2.8
						1376.0	20.0	3.23	2.15	20.4	4.9
						1608.0	47.0	0.04	3.18	13.2	2.9
E04/1610	DD88SS09	421809	7878061	98.7	1752.7	1321.0	10.0	2.01	0.77	5.4	2.5
						1416.0	7.0	2.95	3.56	22.8	5.9
E04/1610	Cudalgarra-2	423260	7876880	110.7	1550.0	1392.0	18.0	1.97	1.09	17.9	2.9
E04/1610	DD86SS01	423867	7876421	104.0	360.0	abandoned - no SigInt
E04/1610	DD86SS01A	423867	7876416	104.0	366.0	abandoned - no SigInt
E04/1610	DD88SS13	412839	7884979	111.1	1527.5	No SigInt

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APPENDIX 2 – JORC Code Table 1

Criteria Section 1	JORC Code explanation	Commentary
Section 1 Sampling Techniques and Data
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 meaningofsampling.	The deposit was sampled using diamond core drilling (DD) over several drilling campaigns undertaken by CRA Exploration Pty Ltd and by Kagara Ltd. A total of 21 surface diamond drillholes were used for the resource estimation, of which 11 drilled by Kagara. All drillholes were vertical.
	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	• CRAE drillhole collar locations were recorded from the CRAE exploration reports and checked by Survey North. Although only one collar could be located, the rehabilitated drillhole pads were easily located. This survey confirmed the approximate locations of the drillholes (±10m) and also the surface RL values (±1m). • The Kagara drillholes were sited using a handheld GPS (approximate error ± 5m). At the time of writing drillholes ABRD001, ABRD002, ABRD003, ABRD005, and ABRD010 had been accurately surveyed by licensed surveyors, Survey North using DGPS. The RLs for the unsurveyed holes have been estimated based on the surveyed holes and ground control provided by Survey North. It is estimated that these RLs are within 1.5m of the true RL. • The CRAE drillholes were surveyed every 50-100m using a single shot survey tool which recorded the deviation from vertical only with no assigned azimuth. Because of the lack of azimuth data, the CRAE drillholes were assumed to be vertical, with average dip being 88 degrees. • Kagara drillholes were surveyed downhole in three phases. `o` As part of a larger geophysical logging exercise, downhole surveys were completed by Weatherford using a magnetic deviation tool. `o` The second phase of surveys was completed by Scientific Drilling International using a Keeper Gyro System. As part of this survey, the diamond tail of hole ABRD009 was surveyed using both the magnetic deviation tool and the gyro. A comparison of both surveys reveals only minimal variation in the northing coordinate and confirms the validity of the magnetic deviation surveys. `o` The third phase of surveys was completed by Downhole Surveys of Kalgoorlie using a SPT north–seeking gyro tool

Criteria Section 1	JORC Code explanation	Commentary
	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.	• Sample collection procedures for CRAE core are not documented • For Kagara drillholes `o` The mud rotary precollars were collected as 10m composite samples by the contract mud loggers. These samples were not analysed `o` The diamond core was processed systematically conforming to the following routine: `�` Core orientation based on a nominal “cut line”. `�` Metre marks and recoveries. `�` RQD, geotechnical and magnetic susceptibility. `�` Photographs (dry and wet). `�` Geological and structural logging. `�` Specific gravity measurements (20m above the mineralised interval and 10m below). `�` Sampling. `o` The entire length of the drill core was sampled. `o` The HQ core was sampled as quarter core, and the NQ (ABRD001 – partial) as half core `o` The core was routinely sampled on 1m intervals, with a minimum interval of 0.25m • Sample preparation procedures for CRAE samples are not documented • For Kagara drillholes: `o` The samples preparation process used was PRP88 whereby up to 3.5kg of sample is dried, crushed, then pulverised to 90% passing 75µm • CRAE samples were processed by Analabs and utilised the processes – 103-AAS (perchloric, nitric, hydrochloric and hydrofluoric acid digest with AAS finish); 104-AAS (perchloric, nitric, hydrochloric and hydrofluoric acid digest with AAS finish); XRF (pressed powder XRF; Fusion (Fusion/Specific ion electrode) • Kagara samples were processed by SGS Mineral Services and utilised the processes – AAS43B (4 acid digestion with AAS finish);ICP40Q (4 acid digest with ICPOES finish);CSA06V(Leco analyser).
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.).	• The deposit was sampled using Diamond Drilling (DD) over several drilling campaigns. The latest drilling campaign was completed by Kagara Ltd. A total of 21 surface diamond drillholes were used for the resource estimation, of which 11 drilled by Kagara. • Kagara 2007-08 drilling programme comprised 10 mud rotary/core holes and one incomplete pre-collar hole drilled to depths of up to 1,515m for a total of 13,137.1 rotary and 3,608m of diamond drilling. Holes were drilled on nominally 400m spaced sections, 150m apart. The drilling comprised two elements: `o` Precollars drilled with a rotary mud rig to depths of between 1,200-1300m – by Australian Drilling Services (ADS) utilising a Kremco K-600-T rig; and `o` HQ core tails drilled with a diamond core drilling rig to extend each hole to a total depth of approximately 1,500m – by Boart Longyear (BL) utilising a UDR 1500 rig.
Drill Sample Recovery	Method of recording and assessing core and chip sample recoveries and results assessed.	• All drilling by Kagara through the mineralised zones utilised predominantly HQ diamond core, with exception being NQ core used in hole ABRD001. Logged core recovery is only available for the Kagara drillholes. The data indicates excellent average recoveries of 99% of cored portions of the drillholes.

Criteria Section 1	JORC Code explanation	Commentary
	Measures taken to maximise sample recovery and ensure representative nature of the samples.	• Diamond core was reconstructed into continuous runs for orientation marking, depths being checked against the depth marked on the core blocks. Additionally the diamond core was processed systematically conforming to the following routine. `o` Metre marks and recoveries. `o` RQD, geotechnical and magnetic susceptibility. `o` Photographs (dry and wet). `o` Geological and structural logging. `o` Specific gravity measurements (20m above the mineralised interval and 10m below). `o` Sampling
	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.	• Sample Recovery is generally very high (99%) within the mineralised zones. No significant bias is expected, and any potential bias is not considered material at this stage of resource development.
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	• Diamond core was geotechnically logged for recovery and RQD for Kagara drillholes. Information on structure type and orientation are recorded in the database. Kagara core is stored in Broome for future reference; CRAE holes are stored in the DMP core library. • The level of geological logging is not fully documented; however, the drillhole database contains adequate geological detail to construct a basic resource model. Full wireline log suites are available for all drill holes
	Whether logging is qualitative or quantitative in nature. Core (or costean,channel,etc.) photography	• Detailed qualitative logs of lithology and mineralisation are available. Additionally all core was photographed (though some photography of earlier CRAE core was not available for this work).
	The total length and percentage of the relevant intersections logged.	• All drill core was logged in full; summary chip logs of the rotary mud sections of the holes are also available.
Sub-sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken.	• For CRAE core one third core was sampled • For Kagara drillholes the entire length of the drillcore was sampled. The HQ core was sampled as quarter core,and the NQ (ABRD001 –partial)as half core.
	If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.	• 10m composites of rotary mud chips were collected.
	For all sample types, the nature, quality and appropriateness of the sample preparation technique.	• Sample preparation procedures for CRAE samples are not documented. • For Kagara samples: `o` The samples preparation process used was PRP88 whereby up to 3.5kg of sample is dried, crushed,thenpulverised to 90%passing75µm
	Quality control procedures adopted for all sub-samplingstages to maximise	• No QA/QC data for CRAE is documented; discussions with the rig geologists at the time reveal that no standards or blanks were submitted with the lab batches though selected duplicate core was submitted.

Criteria Section 1	JORC Code explanation	Commentary
	representivity of samples.	• Most QA/QC data pertains to Kagara’s samples submitted to Genalysis. Genalysis QA/QC documentation (Genalysis, 2008) covers only Ba and Sr assays. Apparent lack of review of Pb, Zn, Cu, and Ag results is a major omission. • Blanks `o` Kagara – no blank samples submitted `o` Laboratory – Genalysis assayed 34 control blanks. Genalysis review of Ba and Sr assays of blank material at the approximate detection limits of the assays. No details of Pb, Zn, Cu and Ag results are given. • Standards `o` Kagara – One standard was included for every 25 samples in the sample run. Kagara used Gannet standards. `o` Laboratory – Genalysis analysed approximately 47 standard samples comprising 3 different reference materials. Only Ba and Sr assay are referenced, with no details on any analyses for Pb, Zn, Cu and Ag elements. • Coarse reject duplicates `o` Kagara – not submitted `o` Laboratory – not submitted • Pulp Duplicates `o` Kagara – not submitted `o` Laboratory – not submitted • Repeat Assays (same pulp) `o` Laboratory – Genalysis documented that 30 pulp repeats were analysed – re-assayed at a later time than the original samples • Repeat Assays (AAS Respray) `o` Laboratory- Genalysis documented that 44 pulp repeats were analysed – re-assayed at the same time as the original samples. • Umpire and Check Assaying – No routine assaying of selected samples through an umpire laboratory was completed either by Kagara or CRAE. 50 pulp samples from CRAE core were re-assayed by Kagara using Australian LaboratoryServices(ALS).
	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.	• The entire length of the drill core was sampled. • The HQ core was sampled as quarter core, and the NQ (ABRD001 – partial) as half core • The core was routinely sampled on 1m intervals, with a minimum interval of 0.25m • The mud rotary precollars were collected as 10m composite samples by the contract mud loggers. These samples were not analysed
	Whether sample sizes are appropriate to the grain size of the material being sampled.	• Sample sizes are considered to be appropriate to accurately represent the mineralisation at Admiral Bay based on the thickness and consistency of the intersections, the sampling methodology and the percent value assay ranges for the primary elements.
Quality of assay data and laboratorytests	The nature, quality and appropriateness ofthe assayingand	• CRAE samples were processed by Analabs and utilised the processes – 103-AAS (perchloric, nitric, hydrochloric and hydrofluoric acid digest with AAS finish)for Cu,Fe,Pb,Zn,Ag;104-AAS(perchloric,nitric,

Criteria Section 1	JORC Code explanation	Commentary
	laboratory procedures used and whether the technique is considered partial or total.	hydrochloric and hydrofluoric acid digest with AAS finish) for Ca, Mg; XRF (pressed powder XRF for Ba, Sr; Fusion (Fusion/Specific ion electrode) for F • Kagara samples were processed by SGS Mineral Services and utilised the processes – AAS43B (4 acid digestion with AAS finish) for Cu, Fe, Pb, Zn; ICP40Q (4 acid digest with ICPOES finish) for Ag, Ca, Mg, As, Bi, Co Cd, Sb; CSA06V (Leco analyser) for S; DP/OES specific fusion with OES finish) for Ba and Sr.
	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.	• A Wireline suite comprising gamma, calliper, density, neutron, resistivity, SP, temperature, sonic and magnetic deviation was collected from all drill holes
	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.	• Field QAQC procedures included the insertion of commercial standards (one standard for every 25 samples) by Kagara; CRAE included a limited number of field duplicates of ¼ core. • No external laboratory checks were performed on samples. Assay results have been generally satisfactory demonstrating acceptable levels of accuracy and precision.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel.	• No physical core was inspected by CSA; however, CSA was provided by high quality photographs of the core for CRAE holes (SS02, SS14, SS22, SS24) and all holes drilled by Kagara.
	The use of twinned holes.	• Only one hole has been twinned, by wedging, due the depth and cost of the holes. Repeatability between ABRD011 and ABRD011D2 was reasonable
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	• All core was logged then data was sent for validation and storage into a relational database.
	Discuss anyadjustment to assaydata	• No adjustments were made
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.	• CRAE drillhole collar locations were recorded from the CRAE exploration reports and checked by Survey North. Although only one collar could be located, the rehabilitated drillhole pads were easily located. This survey confirmed the approximate locations of the drillholes (±10m) and also the surface RL values (±1m). • The Kagara drillholes were sited using a handheld GPS (approximate error ± 5m). At the time of writing drillholes ABRD001, ABRD002, ABRD003, ABRD005, and ABRD010 had been accurately surveyed by licensed surveyors, Survey North using DGPS. The RLs for the unsurveyed holes have been estimated based on the surveyed holes and ground control provided by Survey North. It is estimated that these RLs are within 1.5m of the true RL.

Criteria Section 1	JORC Code explanation	Commentary
		• The CRAE drillholes were surveyed every 50-100m using a single shot survey tool which recorded the deviation from vertical only with no assigned azimuth. Because of the lack of azimuth data, the CRAE drillholes were assumed to be vertical. • Kagara drillholes were downhole surveyed in 3 phases. `o` As part of a larger geophysical logging exercise, downhole surveys were completed by Weatherford using a magnetic deviation tool. `o` The second phase of surveys was completed by Scientific Drilling International using a Keeper Gyro System. As part of this survey, the diamond tail of hole ABRD009 was surveyed using both the magnetic deviation tool and the gyro. A comparison of both surveys reveals only minimal variation in the northing coordinate and confirms the validity of the magnetic deviation surveys. • The third phase of surveys was completed by Downhole Surveys of Kalgoorlie using a SPT north–seeking gyro tool
	Specification of the grid system used.	• The grid system is GDA94 Zone 51 • Earlier CRAE work used AGD84 Zone 51,but Kagara converted all data to GDA94
	Quality and adequacy of topographic control.	• All collar locations have been picked up by means of DGPS. Apart from drillhole collar surveys, survey definition of surface topography was not essential as a constraint for the top of the resource model given the depth of the mineralisation.
Data spacing and distribution	Data spacing for reporting of Exploration Results.	• Kagara drillholes were drilled on nominally 400m spaced sections, 150m apart. This tested the entire 2.7km mineralized horizon within M4/249
	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.	• The data spacing and distribution is very limited • Geological evidence is sufficient to imply but verify geological continuity • Lithological packages hosting the mineralisation are discernible on seismic imagery and provide evidence of geological continuity • Grade continuity is less well established and given the nature of MVT-style mineralisation is expected to be complex • It is considered that available data is sufficient to demonstrate spatial and grade continuity of the mineralised horizon to support the definition of Inferred Mineral Resources under the 2012 JORC code.
	Whether sample compositing has been applied.	• The mud rotary precollars were collected as 10m composite samples by the contract mud loggers. These samples were not analysed
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,consideringthe deposit type.	• Kagara drillholes were drilled on nominally 400m spaced sections, 150m apart, perpendicular to strike. This tested the entire 2.7km mineralized horizon within M4/249
	If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a samplingbias,this	• Diamond drilling confirmed that drilling orientation did not introduce any bias regarding the orientation of the mineralised zones.

Criteria Section 1	JORC Code explanation	JORC Code explanation	Commentary
	should be assessed and reported if material.
Sample Security	The measures taken to ensure sample security.		• No information available; it is assumed that both CRAE and Kagara organised delivery of samples directly to the laboratoryin Perth.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.		• In general, drillhole data was compiled to industry standard. Lack of documentation, QA/QC data, and complete downhole surveys for non-Kagara drillholes suggests to remove these holes from the future resource estimations where the higher resource classification categories Indicated and Measured applied. • No detailed validation of the assaydata against laboratorycertificates was completed.

Criteria Section 2		JORC Code explanation	Commentary
Section 2 Reporting of Exploration Results
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 national park and environmental settings.	• The Admiral Bay Project is located in the central Canning Basin, on the southern edge of the Kimberley region some 140km south of Broome, Western Australia. • The Admiral Bay deposit is located within two granted Mining Leases (ML04/244 and ML04/249), which are valid until 20/3/2033 and one granted Exploration Licence (EL04/1610), which is valid until 3/9/2017. • The Company has signed an agreement with Kagara Ltd (in Liquidation) to acquire the Admiral Bay Project, via a combination of cash and shares, including $30,000 cash for an exclusive three month Due Diligence Period, $1,000,000 in cash and convertible notes and a 1.5% NSR to acquire 100%, with a further $6,000,000 in various milestone payments. • The tenement is located wholly within Vacant Crown Land and is covered by the Native Title Determined Area of the Karajarri People(Area A)
		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.	• The minimum annual expenditure commitment is $248,100 and annual rents are $46,910. • The tenements are in good standing with the WA Department of Mines and Petroleum (DMP).
Exploration done by other parties		Acknowledgment and appraisal of exploration by other parties.	• The Admiral Bay deposit was discovered in 1981 by Meridian Oil NL during petroleum exploration, and was subsequently acquired by CRA Exploration (the exploration arm of CRA Limited, now Rio Tinto Ltd), who undertook substantial exploration from 1986 to 1992. Kagara Ltd acquired the deposit from CRA Exploration in 2004 and completed an exploration programme that lead to an initial Inferred Resource, as well as a pre- feasibility study to test the viability of the project. Kagara Ltd entered into Administration in 2012 and subsequently Liquidation in 2013. • Past work has been of a high standard and suitable for resource estimation.
Geology		Deposit type, geological setting and style of mineralisation.	• Admiral Bay lies within the Admiral Bay Fault Zone, which separates the Broome Platform and Willara Sub- basin of the Canning Basin. • Admiral Bay is carbonate-hosted zinc-lead-silver-barium deposit, with mineralisation hosted mainly in the Nita Formation and, to a lesser degree, in the Carribuddy and Goldwyer Formations, over a mineralised strike extent of at least 18km;nominallythe deposit is classified as a Mississippi ValleyType deposit(MVT).

Criteria Section 2	JORC Code explanation	Commentary
		• Admiral Bay does not appear to be a typical mid-continental MVT. Rather it appears to be a large and strongly focused MVT more like Reocin or Polaris, rather than the more ‘poddy’ Goongewa or mid- continental US or Polish-style MVTs. The ratio of mineralised hits in the drilling is actually very high for this style of mineralisation. • Within the project area, the surface geology is dominated by Quaternary Aeolian sand. Sand sheets in the northwest grade into 2–10m high dunes towards the southeast. • The stratigraphy is comprised of a thick sequence of Cretaceous-Jurassic-Permian sandstones/siltstones (up to 1,200m thick), which overlies a variably dolomitised siltstone/shale/limestone – the Nita Formation – which is host to an upper zinc-rich zone and a lower lead-rich zone of mineralization. • Sulphides infill dissolution, breccia and fracture porosity and overprint stylolites • Previous drilling indicates that the upper high-grade Zn-rich zone is up to 20m thick, whilst the lower high- grade Pb zone is up to 15m thick. The high-grade zones described above are hosted within a broad, moderately Zn-Pb mineralised, zone up to 110-120m thick. • In general, base metal mineralisation occurs in the lower parts of the Siluro-Devonian Caribuddy Formation and the Ordovician-age Nita and Goldwyer Formations over depths of around 1,250m to 1,700m. Mineralisation is most typicallyassociated with calcareous rocks,commonlywith appreciable barite.
Drillhole 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:	See Tables 1 and 2, presented in Appendix 1
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.	• Results were weighted by sample intervals • No top or bottom cuts were applied • For treatment of data used in the resource estimation see Section 3 below
	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.	• Intersections are length weighted average grades for zones wider than or equal to 2m and greater than 2% Zn or Pb, including up to 2m of internal waste
	The assumptions used for any reporting of metal equivalent values should be clearlystated.	Zinc Equivalent calculated as ZnEq=0.9Zn+0.85Pb+0.01*Ag • Based on October 2014 monthly metal prices as listed in www.indexmundi.com of US$2276.83/tonne for Zn

Criteria Section 2	JORC Code explanation	Commentary
		and US$2034.26/tonne for Pb • Metallurgical testwork has predicted recoveries in excess of 95% for Pb, 90% for Zn and from 46–54% for Ag; consequently a Ag recovery of 50% was selected (however it should be noted that the highly variable grades Ag and unknown smelter thresholds mean the significance of silver is minor). • After review of the historical metallurgical testwork it is the Company’s opinion that there is a reasonable potential for both zinc, lead and silver to be recovered and sold.
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 mineralised zones at Admiral Bay are approximately tabular and flat lying to shallowly dipping, at a nominal depth of 1,350m below the surface. • Mineralisation is generally intersected with near true width 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.	• Refer to Figures in the body of the report
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.	• Results from all drill holes within the project tenements are reported • The table of drill intersections above includes some isolated regional holes with that intersected mineralisation but not all regional holes are 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,	• Wireline logging suites comprising gamma, calliper, density, neutron, resistivity, self-potential, temperature, compensated sonic and magnetic deviation are available for all drill holes. • Extensive 2D seismic data both from dedicated surveys at Admiral Bay and from regional petroleum exploration work are available for the project area. • Metallurgical, geotechnical, hydrogeological and mining studies have been completed on the project.

Criteria Section 2	JORC Code explanation	Commentary
	groundwater, geotechnical and rock characteristics; potential deleterious or contaminatingsubstances.
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).	• PLD aims to design exploration and resource evaluation programmes to test the controls on and continuity of mineralisation at Admiral Bay. Work to increase the understanding of the continuity of geology and mineralisation are fundamental to advancing the project. Planned work includes additional drilling as well as application of suitablegeophysical techniques.
	Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commerciallysensitive.	• Work is not yet sufficiently advanced to enable delineation of new target areas and zones of potential extensions to mineralisation.

Section 3 Criteria	JORC Code explanation	Commentary
Section 3 Estimation and Reporting of	Mineral Resources
Database integrity	Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.	• Data used in the Mineral Resource estimate was supplied by Digirock Pty Ltd. It is primarily sourced from a Microsoft Access database and converted to comma delimited text files for drillhole and assay data. Wireframes of Formation tops and mineralised zones were provided in CAD DXF format. All provided data were import into Datamine software for use in the Mineral Resource estimate.
	Data validation procedures used.	• Database information was validated against previous data supplied for Admiral Bay, imported and desurveyed. Validation of the data import include checks for overlapping intervals, missing survey data, missing and incorrectly recorded assay data, missing lithological data, and missing collars.
Site visits	Comment on any site visits undertaken by the Competent Person and the outcome ofthose visits.	• No site visit was undertaken as part of the resource estimation. • A CSA geologist was present in 1988 during drilling and seismic acquisition activities by CRAE
	If no site visits have been undertaken indicate whythis is the case.	• CSA Global conducted a desktop review on the basis of the reports prepared by Digirock, Coffey, Kagara, RSV Australia. Currently,no exploration and drillingactivities are beingcarried out at the deposit to be observed.

Section 3 Criteria	JORC Code explanation	Commentary
Geological interpretation	Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit.	• Drillhole data spacing is highly variable and limited. Drilling has targeted the 285° striking mineralisation at approximately 2.6km of strike length in the model area. Definition of mineralisation across strike is limited with only 4 of the oblique sections have 2 or more drillholes. • The zones are currently interpreted to be coincident with an antiformal structure associated with the Admiral Bay Fault Zone (ABFZ). Mineralisation appears to be relatively continuous along the strike of the anticline, but lower grade / less well developed on the limbs. However, the limbs areas are poorly defined or tested by drilling. • While structural continuity appears to be predictable, grade continuity within the mineralised zones remains relatively uncertain for some of the defined zones and is not adequately defined / constrained by the current drillhole spacing. • The assaying data is slightly incomplete. For the 6,117 data intervals only 6,017 have data for Zn, Pb, Cu. Sulphur data was limited only the Kagara drillholes and there were only 2,429 intervals. Ba data was present for 4,437 intervals with some selectivity on portions of drillholes
	Nature of the data used and of any assumptions made.	• Drillhole intercept logging and assay results have formed basis for the geological interpretation.
	The effect, if any, of alternative interpretations on Mineral Resource estimation.	• The precise limits and geometry cannot be absolutely defined due to the limitations of the current drill coverage. Further work is required to better define the geometry and limits of the mineralised zones.
	The use of geology in guiding and controlling Mineral Resource estimation.	• The grade and lithological interpretation forms the basis for the modelling. Coffey Mining developed a geological and mineralisation framework suitable for grade estimation based on a review of the available geological andgeochemical data.
	The factors affecting continuity both of grade and geology.	• The Mississippi Valley Type Lead-Zinc mineralisation is interpreted to be coincident with an antiformal structure associated with the Admiral Bay Fault Zone. Mineralisation appears to be broadly continuous along the strike of the anticline, but lower grade / less well developed on the limbs, however the local distribution of grade ispotentiallyless continuous.
Dimensions	The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.	• Five individual mineralised zones were interpreted based on the drillhole sample data using approximate 1.5- 2% Zn and/or Pub cut-offs to define coherent zones of sulphide mineralisation. • The currently interpreted mineralised zones extend for approximately 2.6 km along 285`0`NW strike. The width of the zones varies from 150m to 670m with maximum 50m thickness for individual mineralised envelopes. The mineralised zones extend from the depth of 1,160m to the depth of 1,500m below the surface.
Estimation and modelling techniques	The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining,interpolationparameters	• All Zn, Pb, Cu, Ag, Total Sulphur and Ba variables estimated in the Admiral Bay resource model mineralised zones were generated using Inverse Distance (ID) using a power of 2. The ID estimates have been completed using Datamine software. Block discretisation of 5x5x2 points (for X x Y x Z respectively) was used for block estimation. Composite length and bulk density weighting was used in the estimation process.

Section 3 Criteria	JORC Code explanation	Commentary
	and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.
	The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account ofsuch data.	• No previous estimates have been completed for this deposit, and no mining has taken place. The grade estimates were validated against the data used to create them, both visually and statistically.
	The assumptions made regarding recoveryofby-products.	• No assumption have been made
	Estimation of deleterious elements or other non-grade variables of economic significance (e.g. sulphur for acid mine drainage characterisation).	• Cu, Ag, Total Sulphur and Ba, F
	In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.	• The block model was constructed using a 25mE x 25mN x 5mRL parent block size, with subcelling to 6.25mE x 6.25mN x 1.25mRL for domain volume resolution. The parent cell size was chosen on the basis of the general morphology of mineralised bodies and in order to avoid the generation of too large block models. The subcelling size was chosen to maintain the resolution of the mineralised bodies. • For all variables estimated (Zn, Pu, Cu, Ag, Sr, and Ba), a two-pass estimation strategy has been applied, with progressively expanded sample searches applied to successive estimation passes only considering blocks not previously assigned. `o` First pass searches used an anisotropic range of 600x300x300 metres with major axis oriented horizontally along strike `o` If a block was not estimated in the first pass, a second pass search utilised a maximum range of 1200x600x600 metres. • The use of similar search radii for the semi-major and minor axis orientations considered the narrow structures being modelled, the variable orientations and curvature of the structures, and erratic distribution of data within the mineralised zones. • The maximum number of composites used for any estimate was restricted to 20 composites for all estimated variables. • The minimum number of composites used for any first pass estimate was 10 composites for all estimated variables. • The minimum number of composites used for any second pass estimate was 2 composites for all estimated variables. • No octant or other search constraint was applied • All mineralised zone divisions were treated as hard boundaries for data andparameters used in the estimation

Section 3 Criteria	JORC Code explanation	Commentary
		process.
	Any assumptions behind modelling of selective miningunits.	• The block model size was selected largely as a compromise for adequate volume definition of the narrow mineralised zones in an underground miningscenario.
	Any assumptions about correlation between variables.	• Metal zonation occurs vertically through the mineralised zones and has the following characteristics: `o` Higher Zn grades in upper zones `o` Higher Pb grades in lower zones `o` Ag grades are anomalous throughout all mineralised zones, but increase with depth. `o` Bagrades tend to be higher in the lower mineralised zones.
	Description of how the geological interpretation was used to control the resource estimates.	• Five individual mineralised zones were interpreted based on the drillhole sample data using approximate 1.5- 2% Zn and/or Pb cut-offs to define coherent zones of sulphide mineralisation. The zones are currently interpreted to be coincident with an antiformal structure associated with the Admiral BayFault Zone
	Discussion of basis for using or not using grade cutting or capping.	• Assessment of the composite data was completed to determine the requirement for high grade cutting. Limited and light high grade cuts were applied to the Zn, and Pb data. It should be noted that there are small amounts of data available within the individual mineralised zones for assessment and determination of possible outliers,and definition of appropriate highgrade cuts maychange significantlywith additional data.
	The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data ifavailable.	• Validation of the block model consisted of comparison of the block model volume to the wireframe volume. Grade estimates were validated by statistical comparison with the drill data, visual comparison of grade trends in the model with the drill data trends. No reconciliation data is available at this early stage of the project.
Moisture	Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.	• The tonnages are estimated on a dry basis
Cut-off parameters	The basis of the adopted cut-off grade(s) or quality parameters applied.	• Reported using a Zinc Equivalent lower cut-off grade of 2% • The Mineral Resource is quoted from estimated blocks above this cut-off grade.
Mining factors or assumptions	Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining 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 regardingminingmethods and	• Initial study work by Mining Plus indicated that a modified sub-level cave (SLC) would be the most appropriate method to mine the deposit. However, additional work by Kevin Rosengren concluded that whilst an uphole retreat sub-level cave mining method may be practical it was not optimal or ideal. It suggested that some form of modified room-and-pillar method may be appropriate. • A subsequent study was carried out by Snowden to test the viability of the project based on the known resource. Snowden’s geotechnical work, coupled with a cursory literature survey, indicates that an adaptation of a room-and-pillar mining method with paste fill is most appropriate from both a geotechnical and a risk perspective.

Section 3 Criteria	JORC Code explanation	Commentary
	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 factors or assumptions	The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic 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.	• The test work was carried out in the first half of 2009 at Optimet laboratories. The test work was conducted on various composite samples obtained from Kagara. • The Pb and Zn grades are quite variable. The orebody is not homogenous. The better understanding of the grade variability will emerge as the variography testing results become available. Four mineralised zones are identified. • Four composites: Zn+Pb+Ba (with and without hydrocarbons) and Pb+Ba (with and without hydrocarbons), were examined. • The findings of the Optimet work were that recoveries in excess of up to 95% lead and 90% Zn were possible. Silver recoveries were were 56% in Zn concentrate and 46% in Pb concentrate. Metallurgical test work has shown that coarse grained very high quality lead and zinc concentrates could be produced at recoveries in excess of 90% into very high quality concentrates: Zinc concentrate grade of +55% Lead concentrate grade of +70%
Environmental factors or assumptions	Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing 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.	• The establishment of a mine and processing facility at the Admiral Bay site will have significant impact on a large area. • However, only limited environmental monitoring and studies have as yet been completed.

Section 3 Criteria	JORC Code explanation	Commentary
Bulk density	Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness ofthe samples.	• No documentation was provided regarding collection of bulk density data. Data in the drillhole database suggest that the data was collected on-site using the Archimedean method on either half core or whole core samples. The database contains 906 bulk density determinations.
	The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vughs, porosity, etc.), moisture and differences between rock and alteration zones within the deposit.	• No documentation was provided regarding collection of bulk density data.
	Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.	• Bulk density data was allocated to the corresponding raw sample intervals containing assay data. It should be noted that the bulk density intervals tended to be smaller and selective relative to the assay intervals. • For bulk density weighting during compositing and estimation, assay intervals not having bulk densities were assigned bulk densities based on linear regression of the Ba% data • For bulk density weighting during compositing and estimation, assay intervals not having bulk densities were assigned bulk densities based on linear regression of the Ba% data
Classification	The basis for the classification of the Mineral Resources into varying confidence categories.	• The Inferred Mineral Resource classification is based on the evidence from the available drill sampling and seismic interpretation. This evidence is sufficient to imply but not verify geological and grade continuity.
	Whether appropriate account has been taken of all relevant factors (i.e. relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution ofthe data).	• The Inferred classification has taken into account all available geological and sampling information, and the classification level is considered appropriate for the current stage of this project.
	Whether the result appropriately reflects the Competent Person’s view ofthe deposit.	• The Mineral Resource estimate appropriately reflects the view of the Competent Person
Audits or reviews	The results of any audits or reviews of Mineral Resource estimates.	• The original Coffey 2008 MRE was audited by Snowden in 2010. Snowden’s opinion was that the ID2 MRE inappropriately smooths the continuity and grade variability of the deposit” and recommended that conditional simulation methods be used to investigate the resource. • Conditional Simulation using MAF (Minimum/Maximum Autocorrelation Factors, used to preserve multi- element correlations) generated 20 grade realisations for the deposit. • CSA consider that usingConditional Simulation modellingto understand the risk associated with the resource

Section 3 Criteria	JORC Code explanation	Commentary
		is appropriate; the Snowden work demonstrated a risk due to variability in the range of ±5Mt and ±0.6%ZnEq. Given the mineralisation style, CSA consider this a very conservative assessment. • CSA Global undertook a review of the 2008 MRE for this report. CSA’s comments are included throughout this Table 1.
Discussion of relative accuracy/ confidence	Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource 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 resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.	• The relative accuracy of the Mineral Resource estimate is reflected in the reporting of the Mineral Resource to an Inferred classification as per the guidelines of the 2012 JORC Code
	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.	• The statement refers to global estimation of tonnes and grade
	These statements of relative accuracy and confidence of the estimate should be compared with production data,where available.	• No production data is available; this is an advanced exploration project

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ARIKA RESOURCES LIMITED Capital/Financing Update 2014

64420_rns_2014-11-24_2a7c294c-959e-4705-a017-b0782eee04d7.pdf

ASX Code: PLD

Admiral Bay Zinc Project Mineral Resource

Commenting on the Resource and Discussions Managing Director Matt Gauci said:

Background

Location

Tenure

Geology, Mineralisation, Resources and Potential

Historical Drilling Results

Mineral Resource Estimates

Drilling techniques

Sampling and Sub-sampling techniques

Geological Interpretation

Sample Analysis Methods

Estimation Methodology

Classification Criteria

Cut-off grades

Mining factors and assumptions

APPENDIX 1 – Drill Hole Information

APPENDIX 2 – JORC Code Table 1

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ARIKA RESOURCES LIMITED — Capital/Financing Update 2014

64420_rns_2014-11-24_2a7c294c-959e-4705-a017-b0782eee04d7.pdf

ASX Code: PLD

Admiral Bay Zinc Project Mineral Resource

Commenting on the Resource and Discussions Managing Director Matt Gauci said:

Background

Location

Tenure

Geology, Mineralisation, Resources and Potential

Historical Drilling Results

Mineral Resource Estimates

Drilling techniques

Sampling and Sub-sampling techniques

Geological Interpretation

Sample Analysis Methods

Estimation Methodology

Classification Criteria

Cut-off grades

Mining factors and assumptions

APPENDIX 1 – Drill Hole Information

APPENDIX 2 – JORC Code Table 1

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ARIKA RESOURCES LIMITED Capital/Financing Update 2014