ARK MINES LIMITED — Capital/Financing Update 2014

Jul 20, 2014

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Ark Secure s Funds and will Com m ence Drilling at F rances Creek Gold Project, N orthern Territory

Sydney, 21 July 2014: The Boar d of Ark Mines Ltd (ASX: AHK) is pleased to ann o unce that it plans to commence drilling in August at its Frances Creek Gold Projects in the Northern T erritory.

Ark Mines Ltd (Ark) is pleased to announce that Arafura Resources Limited h a s agreed to extend, until 26 December 2014, the period for Ark to undertake its minimum obligatio n s under the Mining, Farmin and Joint Venture Agreement dated 14 January 2014 (Agreement) – see further Ark ASX Announcement of 14[th] January 2 013.

Ark is required to spend on ex p loration of certain tenements set out in the Ag r eement (as recently varied) not less than $200,000 , on or before 26 December 2014 (Immediate Expense). A further $200,000 is required to be spe n t on or before 26 August 2015. Subject to sati s fying expenditure of not less than $400,000 Ark shall earn a 40% interest in assets identified in the A greement and then be entitled to either earn a fur t her 30% of those assets (making a total of 70 % ) or acquire 100% of those assets.

In order to fund the Immediate Expense Ark has recently raised $285,000 by way of a placement of 3,000,000 ordinary shares at $0 . 095 per share.

Ark wishes to extend the strike and further define the size of the Golden Hon c ho deposit, with the view of defining a high-grade s h allow oxide gold deposit. This project is proxi m al to the Ark Mines Mt Porter 34,000 oz (1999 JOR C ) gold project resource announced by Arafura on 1 April 2004. Ark is not in possession of any new i n formation or data that materially impacts on t he reliability of that estimate or that the supporting information has changed materially.

On completion of the drilling an d costeaning Ark intends to propose a second p h ase of drilling with a view to defining a JORC resourc e at the Golden Honcho and Golden Slips deposi t s.

For the duration of the Agree m ent Ark has also been granted mining rights o ver ML23839 in the Mount Porter area (see further Ark ASX announcement of 14[th] January 2014). P rior to commencing mining at Mount Porter Ark m ust conduct a base case environmental stu d y and has recently engaged a consultant to condu c t this work (Study). Subject to a satisfactory o u tcome of the Study Ark intends to commence mining at Mount Porter as soon as practicable t h ereafter, subject to raising funds or securing debt s u fficient for such purposes.

FRANCES CREEK GOLDEN HONCHO PROGRAM

• Targeting the oxide z o ne less than 20m vertical depth from surfa c e

• Infill drilling - 20 by 1 5 m angled RC holes targeting 8m vertical d e pth (refer to Fig 2)

• • Infill drilling - 20 by 3 0 m angled RC holes targeting 15m vertical d epth (refer to Fig 2)

• 20 costeans to test the near surface Gold value

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Figure 1 – Cross section of G olden Honcho – refer to Ark announcemen t of 14 January 2014 and Arafura announc e ment of 27 August 2004

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Figure 2 – Proposed drill traces along the strike of Golden Honcho

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Plan n ed RC Drill Holes

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Table 1 –Drill Intersection Hi g hlights at Frances Creek (not true thicknes s )

Hole Number	From m	To m	Interval m	Au grams	Prospect
FCRC015	16	17	1	1.02	Golden Slips
FCRC016	6	8	2	2.47	Golden Slips
FCRC017	15	19	4	47.54	Golden Slips
FCRC017	21	23	2	1.68	Golden Slips
FCRC018	27	28	1	3.3	Golden Slips
FCRC019	27	28	1	1.47	Golden Slips
FCRC020	27	28	1	2.88	Golden Slips
FCRC023	33	34	1	10.32	Golden Slips
FCRC024	32	34	2	9.92	Golden Slips
FCRC035	32	33	1	5.07	Golden Slips
FCRC035	45	47	2	1.44	Golden Slips
FCRC037	33	35	2	10.07	Golden Slips
FCRC038	3	4	1	1.38	Golden Slips
FCRC040	10	12	2	1.67	Golden Slips
FCRC041	12	14	2	6.39	Golden Slips
FCRC042	13	14	1	2.58	Golden Slips
FCRC044	17	18	1	3.33	Golden Slips
FCRC045	1	3	2	1.56	Golden Slips
FCRC045	8	11	3	1.78	Golden Slips
FCRC045	14	15	1	3.75	Golden Slips
FCRC046	3	4	1	1.07	Golden Slips
FCRC046	7	8	1	2.06	Golden Slips
FCRC047	30	31	1	2.31	Golden Slips
FCRC048	46	48	2	2.09	Golden Slips
FCRC026	19	21	2	6.51	Golden Honcho
FCRC027	17	19	2	3.88	Golden Honcho
FCRC027	25	27	2	11.61	Golden Honcho
FCRC028	14	19	5	4.44	Golden Honcho
FCRC029	9	10	1	1.38	Golden Honcho
FCRC029	14	17	3	10.66	Golden Honcho
FCRC029	23	24	1	1.1	Golden Honcho
FCRC029	30	31	1	5.08	Golden Honcho
FCRC030	14	16	2	8.15	Golden Honcho
FCRC030	28	29	1	3.89	Golden Honcho
FCRC031	11	12	1	1.06	Golden Honcho
FCRC031	22	24	2	13.29	Golden Honcho
FCRC032	15	16	1	2.85	Golden Honcho
FCRC033	26	27	1	2.88	Golden Honcho
FCRC034	52	53	1	3.3	Golden Honcho
FCRC050	35	36	1	1.28	Golden Honcho
FCRC051	29	32	3	9.59	Golden Honcho
FCRC052	17	20	3	10.96	Golden Honcho
FCRC053	30	35	5	19.11	Golden Honcho

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Note 1

Table 1. Refer to Arafura AS X announcement 27[th] August 2004

Note 2

Frances Creek

• First stage drilling co m pleted by Arafura- 40 RC holes drilled for 1, 6 46m

• Sub Vertical quartz v eins outcropping on top of steep ridge crests which are amenable to simple l o w cost open pit mining

• The results show similar grades and widths to the surface samplin g

• Average surface grad e s of 17.6 g/t over 420 meters (Golden Honc h o)

• And 18.2 g/t over 180 metres (Golden Slips)

• Over 2,400 metres of s trike length with only 390 metres drilled to date

Refer to Arafura ASX a nnouncement 27[th] August 2004

About Ark Mines

Ark Mines Ltd (ASX: AHK) is a publicly listed company with Gold Tenements in N o rthern Territory and New South Wales. Ark’s three E x ploration Licences (ELs) in New South Wales (NSW) all lie within the Lachlan Fold Belt. This area is t h e focus for significant Exploration in NSW and t h e epicentre of many major poly metallic and preciou s metal Mines.

FURTHER INFORMATION: Roge r Jackson, Managing Director, Ark Mines Limite d : +61400 408 550

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