ARK MINES LIMITED — Capital/Financing Update 2015

Aug 17, 2015

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**Ark

Signs
Toll
Treatment
Agreement**

Sydney,
18
August
2015 :
The
Board
of
Ark
Mines
Ltd
( ASX:
AHK )
is
pleased
to
advise
that
it has
now
concluded
negotiations
with
Newmarket
Gold
Inc.
( Newmarket
Gold ),
who’s
fully owned
subsidiary
is
Crocodile
Gold
Australia
Operations
Pty
Ltd
ACN
136
525
990,
and
that the
parties
have
executed
and
exchanged
a
binding
toll
treatment
agreement
for
AHK’s
Mt. Porter
gold
ore
( Agreement ).

Key
terms
and
conditions
of
the
Agreement
include:-­‐

• § A
  term
  of
  18
  months
  after
  signing,
  extendable
  upon
  the
  express
  written
  agreement of
  the
  parties;

• § AHK
  shall
  be
  responsible
  for
  mining
  (including
  rehabilitation)
  and
  delivering
  the
  Mt. Porter
  ore
  to
  Newmarket
  Gold
  for
  processing.
  Newmarket
  Gold
  shall
  provide
  AHK, or
  its
  nominated
  contractors,
  with
  such
  diesel
  fuel
  and
  necessary
  accommodations reasonably
  required
  to
  undertake
  mining
  at
  Mt.
  Porter;

• § Newmarket
  Gold
  shall
  be
  responsible
  for
  processing
  the
  Mt.
  Porter
  ore
  into
  gold doré and
  selling
  the
  gold
  doré
  on
  a
  monthly
  basis;

• § Each
  party
  shall
  absorb
  their
  own
  costs
  and
  expenses
  from
  performing
  their obligations
  under
  the
  Agreement,
  such
  costs
  and
  expenses
  are
  to
  be
  deducted monthly
  from
  sales
  of
  gold
  doré.
  Newmarket
  Gold’s
  processing
  costs
  have
  been agreed
  at
  AUD$30.00
  per
  ton;
  and

• § AHK
  and
  Newmarket
  Gold
  will
  split
  cash
  flows
  from
  the
  Mt.
  Porter
  mining
  project after
  payment
  of
  their
  agreed
  costs,
  expenses
  and
  royalties.
  From
  available
  net funds,
  AHK
  shall
  receive
  a
  55%
  payment
  and
  Newmarket
  a
  45%
  payment.

Now
that
the
Agreement
has
been
concluded,
AHK
intends
to
focus
its
activities
as
follows:-­‐

• § prepare
  and
  submit
  a
  mining
  management
  plan
  ( MMP )
  for
  the
  mining
  of
  Mt.
  Porter and
  procure
  MMP
  approval
  as
  soon
  as
  is
  practicable;

• § procure
  funding
  to
  support
  the
  MMP
  process
  and
  related
  working
  capital;
  and § negotiate
  and
  document
  satisfactory
  agreements
  with
  contractors
  to
  mine
  Mt. Porter
  and
  deliver
  ore
  to
  Newmarket
  Gold
  for
  processing.

1

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**About

Ark
Mines**

Ark
Mines
Ltd
(ASX:
AHK)
is
a
publicly
listed
company
with
gold
tenements
including
an advanced
gold
Mining
Licence
in
the
Northern
Territory.
Ark’s
Exploration
Licence
in
New South
Wales
(NSW)
lies
within
the
Lachlan
Fold
Belt.
This
area
is
the
focus
for
significant Exploration
in
NSW
and
the
epicentre
of
many
major
poly
metallic
and
precious
metal mines.

**About

Newmarket
Gold
Inc.**

Newmarket
Gold
is
a
Canadian-­‐listed
gold
mining
and
exploration
company
with
three
100% owned
operating
mines
across
Australia.
The
Company
is
focused
on
creating
substantial shareholder
value
by
maintaining
a
strong
foundation
of
quality
gold
production,
over 200,000
ounces
annually,
generating
free
cash
flow
and
maintaining
a
large
resource
base as
it
executes
a
clearly
defined
gold
asset
consolidation
strategy.
The
Company
is
focused
on sustainable
operating
performance,
a
disciplined
approach
to
growth,
and
building
gold reserves
and
resources
while
maintaining
the
high
standards
that
the
Newmarket
Gold
core values
represent.

**FURTHER

INFORMATION:
Roger
Jackson,
Managing
Director,
Ark
Mines
Ltd:
+61400
408
550**

The
information
in
this
announcement
that
relates
to
Exploration
Results,
Mineral
Resources
or
Ore
Reserves
has
been compiled
by
Roger
Jackson
BSc,
Grad
Dip
Fin
Man,
Dip
Ed,
AICD,
who
is
a
Member
of
The
Australasian
Institute
of
Mining and
Metallurgy
and
who
has
more
than
five
years’
experience
in
the
field
of
activity
being
reported
on.
Mr
Jackson
is
a director
of
the
Company.
Mr
Jackson
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
‘Australasian
Code
for
Reporting
of
Exploration
Results,
Mineral
Resources
and
Ore
Reserves’.
Mr
Jackson consents
to
the
inclusion
in
the
announcement
of
the
matters
based
on
his
information
in
the
form
and
context
in
which
it appears.

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