ARK MINES LIMITED — Capital/Financing Update 2017

Mar 2, 2017

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Mt. Porter South Drilling Update

Sydney, 3 March 2017 : The Board of Ark Mines Ltd ( ASX: AHK ) is pleased to provide an update on the ongoing exploration activities on its Mt. Porter deposits in the Pine Creek region of the Northern Territory, Australia.

AHK has now completed the first phase of an RC program, comprising 27 holes (and 948m), targeting the Mt Porter South deposit. The purpose of this work is to supplement the Mt. Porter Central deposit.

The drill programme was designed in November 2016 after investigation of the historic drill data set indicated there may be some potential for near surface gold deposits within 200m along strike of the Mt. Porter pit design within ML23839, to both North and South.

Drilling results and analysis to date indicate the Mt. Porter South deposit is shallow and is likely to have a low strip ratio when mined. Furthermore, it is expected to be predominately oxide and should have higher recoveries.

The indications for the southern zone, based wholly on the historic reconnaissance scale drill grid at an intermittent and incomplete 50m by 50m spacing, was a good probability of mineralisation over a strike length of 700m with a width varying between 4 and 10m and a grade tenor in the range of 1.3 g/t Au.

For the northern zone were there remains insufficient data to predict grade tenor. A more difficult, extensive and deeper drill programme will be required to delineate viable portions of this structurally more complex zone.

AHK has determined the initial programme should concentrate on drilling the southern zone to afford a small resource sufficient to allow an MMP amendment and mining, with this oxide ore stream potentially available to offset pre-strip costs in the designed pit, now referred to as Mt. Porter Central.

Historic reports indicated that the original drilling had been spatially controlled using dGPS. This technology affords an accuracy of 2m in x and y, and 4m in z. On this basis a tight, nonfence based resource programme was designed to infill the known mineralisation bounds and allow 5m to 8m of spatial uncertainty.

The initial drill programme comprised 89 holes for 3,073m however, 9 holes for 360m were cancelled based on their extension of the mineralisation into ELR116, which would complicate regulatory approval of any subsequent mining. The remaining 80 holes constituted an expected 2,713m of drilling on 29 lines; each line having between 1 and 4 holes, averaging 3 holes per line with many pads to encompass 2 holes for a total of 62 pads. Designed depths ranged from 20 to 55m with average depth being 34m.

Deductions drawn from the drilling results so far:-

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• Results have shown that ore is narrower than expected, with most lode sections falling between 2 to 4m in thickness. The grade tenor in many areas is, however, higher than expected, with many lode sections grading above 1.5 g/t Au rather than the expected 1.3g/t Au.

• The results give a strong indication AHK has a commercial, shallow oxide pit, mineable after Mt. Porter Central.

• Grade and tonnes will be concluded after the completion of the second phase of drilling.

• AHK is aiming to commence mining Mt. Porter Central in Q2 2017 and intends to lodge (and have approved) as soon as is practicable an MMP for South, so it can be mined directly after Central.

Figure 1: Drill rig on Mount Porter South

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Aggregated Stage 1 Significant Intercept Table	Aggregated Stage 1 Significant Intercept Table	Aggregated Stage 1 Significant Intercept Table	Aggregated Stage 1 Significant Intercept Table	Aggregated Stage 1 Significant Intercept Table	Aggregated Stage 1 Significant Intercept Table	Aggregated Stage 1 Significant Intercept Table
BHID	Easting (m)	Northing (m)	Elevation (m)	Azimuth (degrees)	Dip (degrees)	EOH (m)	Method	From (m)	To (m)	Interval (m)	True Thickness (m)	Au Grade g/t Au
MPRC267	10144.866	10076.095	507.977	89.341	60.3	32	RC	6	7	1	0.96	0.83
MPRC269	10134.011	10049.943	513.746	89.841	60.3	20	RC	3	4	1	0.97	1.04
MPRC270	10119.217	10049.981	514.397	89.341	60.5	32	RC	14	17	3	2.85	0.96
including								14	16	2	1.91	1.42
MPRC271	10127.849	10028.146	516.368	90.341	60.5	23	RC	8	13	5	4.74	1.19
including								10	13	3	2.81	1.48
MPRC272	10115.304	10028.136	517.059	90.341	60.0	35	RC	8	9	1	0.91	2.98
MPRC272	10115.304	10028.136	517.059	90.341	60.0	35	RC	17	22	5	4.88	2.13
including								17	19	2	2.98	4.48
MPRC272	10115.304	10028.136	517.059	90.341	60.0	35	RC	31	32	1	0.90	0.73
MPRC273	10106.765	10028.109	517.951	89.841	78.0	35	RC	21	24	3	2.16	2.12
MPRC273	10106.765	10028.109	517.951	89.841	78.0	35	RC	33	34	1	0.80	0.68
MPRC274	10106.74	10005.19	517.513	90.841	61.0	32	RC	3	4	1	0.84	0.50
MPRC274	10106.74	10005.19	517.513	90.841	61.0	32	RC	28	31	3	3.00	0.66
including								30	31	1	1.00	1.25
MPRC275	10091.73	9982.28	516.389	90.341	60.0	26	RC	12	17	5	4.34	4.13
including								14	16	2	1.80	8.95
MPRC275	10091.73	9982.28	516.389	90.341	60.0	26	RC	20	21	1	0.92	2.33
MPRC275	10091.73	9982.28	516.389	90.341	60.0		RC	23	25	2	1.64	1.30
including								24	25	1	0.82	1.92
MPRC276	10075.803	9982.024	520.929	36	89.6	60.75	RC	3	4	1	0.82	0.75
MPRC276	10075.803	9982.024	520.929	36	89.6	60.75	RC	16	17	1	0.82	0.71
MPRC276	10075.803	9982.024	520.929	36	89.6	60.75	RC	18	19	1	0.82	0.96
MPRC276	10075.803	9982.024	520.929	36	89.6	60.75	RC	21	23	2	1.87	0.74
MPRC276	10075.803	9982.024	520.929	36	89.6	60.75	RC	31	34	3	2.77	0.98
including								31	32	1	0.82	2.25
MPRC277	10074.775	9982.02	520.979	35	89.6	76.75	RC	26	27	1	0.82	1.84
MPRC279	10050.33	9952.412	528.994	90.341	60.0	38	RC	7	11	4	3.60	1.63
including								8	10	2	1.80	2.54
MPRC279	10050.33	9952.412	528.994	90.341	60.0	38	RC	29	30	1	0.95	0.59
MPRC280	10049.47	9952.503	529.053	90.341	75.8	53	RC	45	47	2	1.48	2.64
MPRC280	10049.47	9952.503	529.053	90.341	75.8	53	RC	50	53	3	2.59	0.53
MPRC282	10039.62	9927.985	530.63	89.841	89.8	60	RC	16	17	1	0.96	0.50
MPRC283	10039.62	9927.985	530.63	89.841	80.5	40	RC	7	13	6	4.67	0.95
including								8	9	1	0.78	1.73
MPRC283	10039.62	9927.985	530.63	89.841	80.5	40	RC	14	26	12	9.60	1.05
MPRC285	10031.79	9900.684	529.41	90.841	60.2	45	RC	13	19	6	5.38	1.31
including								17	19	2	1.79	1.98
MPRC285	10031.79	9900.684	529.41	90.841	60.2	45	RC	40	42	2	0.90	0.54
MPRC287	10004.44	9873.003	529.921	90.841	60.2	50	RC	15	16	1	0.90	0.67
MPRC288	10004.44	9873.003	529.921	90.841	80.5	70	RC	38	40	2	0.90	0.59
MPRC301	9924.111	9753.532	529.49	90.841	60.3	41	RC	1	5	4	3.97	1.49
including								2	4	2	1.99	2.18
MPRC301	9924.111	9753.532	529.49	90.841	60.3	41	RC	10	14	4	3.97	1.84
including							RC	11	13	2	1.99	3.01
MPRC301	9924.111	9753.532	529.49	90.841	60.3	41	RC	21	22	1	0.99	0.69
MPRC301	9924.111	9753.532	529.49	90.841	60.3	41	RC	25	29	4	3.92	0.87
including							RC	26	27	1	0.98	1.76
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BHID	Easting (m)	Northing (m)	Elevation (m)	Azimuth (degrees)	Dip (degrees)	EOH (m)	Method	From (m)	To (m)	Interval (m)	True Thickness (m)	Au Grade g/t Au
MPRC301	9924.111	9753.532	529.49	90.841	60.3	41	RC	30	31	1	0.98	0.52
MPRC301	9924.111	9753.532	529.49	90.841	60.3	41	RC	33	36	3	3.00	1.68
including							RC	33	35	2	2.00	2.24
MPRC301	9924.111	9753.532	529.49	90.841	60.3	41	RC	40	41	1	0.98	0.63
MPRC304	9915.898	9722.495	527.511	90.591	60.3	38	RC	27	31	4	3.79	0.62
MPRC304	9915.898	9722.495	527.511	90.591	60.3	38	RC	35	38	3	2.93	1.86
including								35	36	1	0.98	2.02
MPRC306	9909.777	9692.674	525.844	89.841	60.3	35	RC	13	15	2	1.96	1.27
including								13	14	1	0.98	1.99
MPRC313	9933.659	9643.258	517.973	89.841	60.3	40	RC	25	28	3	2.71	1.29
including								25	27	2	1.81	1.62
MPRC313	9933.659	9643.258	517.973	89.841	60.3	40	RC	33	35	2	1.75	0.91
including								33	34	1	0.88	1.24
MPRC315	9934.165	9616.902	516.679	89.841	60.3	41	RC	20	22	2	1.86	0.83
MPRC315	9934.165	9616.902	516.679	89.841	60.3	41	RC	26	29	3	2.73	1.28
including								26	28	2	1.82	1.61
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Figure 2 : Mount Porter South drill programme. Red are planned holes. Dark blue are historic holes. Turquoise lines are lines including new drilling. The brown shape to the north is the Mount Porter Central design C pit shell. The pink line to the east is the Allamber Springs Granite.

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About Ark Mines

AHK is a Sydney based company now readying itself for near term gold production, from assets in the Northern Territory. The company’s aim is to establish itself as a medium level gold producer producing gold from tenements in the Northern Territory, developing prospective tenements in the Northern Territory and to acquire other prospective gold projects in Australia.

FURTHER INFORMATION:

Roger Jackson, Managing Director, Ark Mines Limited: +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.

JORC Code, 2012 Edition – Table 1 – Mt Porter South Prospect – ML23839 – Reverse Circulation Drilling Results - JORC 2012

Section 1 Sampling Techniques and Data

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

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sampling		Nature and quality of sampling (eg cut channels,		Reverse Circulation (RC) drilling was carried out on the current
techniques		random chips, or specific specialised industry		program with drill cuttings collected every one metre.
		standard measurement tools appropriate to the		Cuttings were passed through a levelled cyclone and attached
		minerals under investigation, such as down hole		adjustable cone splitter in order to obtain a representative
		gamma sondes, or handheld XRF instruments,		sample and a representative duplicate, each weighing
		etc). These examples should not be taken as		approximately 3kg, and both collected in pre-numbered calico
		limiting the broad meaning of sampling.		bags for each metre drilled.
		Include reference to measures taken to ensure		All primary samples were submitted to the laboratory,
		sample representivity and the appropriate		pulverised to produce a 50g charge for fire assay and then
		calibration of any measurement tools or systems		analysed for gold by AAS. Standards and duplicates were not
		used.		inserted into the original sample sequence but instead industry
		Aspects of the determination of mineralisation that		standard certified Gannett standards for a range of values
		are Material to the Public Report.		between 0.099 and 12.38 ppm Au were used with each
		In cases where ‘industry standard’ work has been		laboratory job, included at the end of each sample sequence
		done this would be relatively simple (eg ‘reverse		submitted, at a rate of 1 in 25.
		circulation drilling was used to obtain 1 m		Primary samples were selected for pycnometer SG assay at a
		samples from which 3 kg was pulverised to		rate of 1:5 with selection based on logged rock type and
		produce a 30 g charge for fire assay’). In other		oxidation state to ensure coverage of all potential domains.
		cases more explanation may be required, such as		Each sample collected was noted qualitatively for moisture
		where there is coarse gold that has inherent		content with the vast majority of samples collected being
		sampling problems. Unusual commodities or		essentially dry.
		mineralisation types (eg submarine nodules) may		Following receiving assay results, duplicate samples were
		warrant disclosure of detailed information.		selected from the retained duplicate set for the full range of the
				assay values noted. These duplicates were submitted for
				assay at a rate of 1 in 25.
Drilling		Drill type (eg core, reverse circulation, open-hole		WJ Drilling was contracted to undertake RC drilling using a
techniques		hammer, rotary air blast, auger, Bangka, sonic,		Gemco RC rig and auxiliary air compressor.
		etc) and details (eg core diameter, triple or		Drilling was completed using a 4 inch (10.16cm) face sampling
		standard tube, depth of diamond tails, face-		hammer.
		sampling bit or other type, whether core is		RC drilling was inclined (refer Table 1 for details).

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Criteria			JORC Code explanation	JORC Code explanation	Commentary	Commentary
				_oriented and if so, by what method, etc). _
Drill	sample			Method of recording and assessing core and chip		A visual estimate of percentage recovery by volume was made
recovery				sample recoveries and results assessed.		for each metre drilled, and periodically checked by weight
				Measures taken to maximise sample recovery		using a spring balance.
				and ensure representative nature of the samples.		Each sample was qualitatively logged for moisture content and
				Whether a relationship exists between sample		sample size consistency of the smaller calico bag sample
				recovery and grade and whether sample bias may		continuously monitored while drilling, with periodic weighing of
				have occurred due to preferential loss/gain of		primary and duplicate sample using a spring balance.
				fine/coarse material.		Cyclone and splitter were clean at 6m intervals or less if visual
						inspection indicated potential for contamination.
						Rig air was used to blow the hole dry and evacuate the sample
						path of particulates and sample residue at the commencement
						of each drill metre, prior to drilling and sampling that metre.
						This phase of drilling is follow-up to previous drilling carried out
						in 2004 utilising a smaller drilling rig and sample composite
						length, so it is problematic to make full comparisons from this
						phase of drilling. This problem of statistical representation will
						be addressed by completion of the current programme which
						will provide a statistically valid data set covering the entire
						mineralised zone at the current improved level of
						representation.
Logging				Whether core and chip samples have been		All drill cuttings qualitatively logged and representative cuttings
				geologically and geotechnically logged to a level		collected in numbered sequential chip trays on one metre
				of detail to support appropriate Mineral Resource		intervals.
				estimation, mining studies and metallurgical		Qualitative logging includes colour, lithology, description,
				studies.		weathering, alteration, key mineralogy, and mineralisation.
				Whether logging is qualitative or quantitative in		Water table depths and key weathering marker horizons also
				nature. Core (or costean, channel, etc)		recorded.
				photography.		Each hole has been logged by the metre over the entire
				The total length and percentage of the relevant		interval drilled.
				intersections logged.
Sub-sampling				If core, whether cut or sawn and whether quarter,		See sampling section for a description of sampling and
techniques		and		half or all core taken.		duplicate sampling techniques.
sample				If non-core, whether riffled, tube sampled, rotary		Simultaneous duplicate samples were taken for each drill
preparation				split, etc and whether sampled wet or dry.		metre using the same levelled cone splitting method as
				For all sample types, the nature, quality and		primary samples.
				appropriateness of the sample preparation		Duplicate sample results for a range of assay values at a rate
				technique.		of 1 in 25, indicate that original assay results are largely
				Quality control procedures adopted for all sub-		reproducible, with no obvious sample bias.
				sampling stages to maximise representivity of		Laboratory repeats were also performed at a rate of 1 in 25
				samples.		and for all samples with an assay result above 0.5 ppm Au and
				Measures taken to ensure that the sampling is		show a high level of repeatability.
				representative of the in situ material collected,		The nature, quality and appropriateness of the sampling
				including for instance results for field		technique are considered adequate for the style of
				duplicate/second-half sampling.		mineralisation.
				Whether sample sizes are appropriate to the grain		Sample sizes are considered appropriate for the very fine
				size of the material being sampled.		grained nature of the host lithologies and grain size of the gold
						mineralisation intersected.
Quality of	assay			The nature, quality and appropriateness of the		A certified and accredited laboratory, North Australian
data		and		assaying and laboratory procedures used and		Laboratories (NAL) was used for the current assays and is the
laboratory	tests			whether the technique is considered partial or		same laboratory used by the previous explorers.
				total.		Samples were analysed utilising the industry standard fire
				For geophysical tools, spectrometers, handheld		assay technique using a 50g charge and AAS finish (0.01ppm
				XRF instruments, etc, the parameters used in		detection limit). All assays over 0.5 ppm have been routinely
				determining the analysis including instrument		re-assayed at least once and in some cases twice to establish
				make and model, reading times, calibrations		acceptable levels of accuracy and precision.
				factors applied and their derivation, etc.		Internal certified QA/QC is carried out by NAL. In addition,
				Nature of quality control procedures adopted (eg		industry standard Gannett standards for a range of values
				standards, blanks, duplicates, external laboratory		were used with each laboratory job, included at the end of
				checks) and whether acceptable levels of		each sample sequence, and blank flush material was ground
				accuracy (i.e. lack of bias) and precision have		between each sample, with these assayed at the beginning
				been established.		and end of each sample sequence.
Verification		of		The verification of significant intersections by		Primary data is verified on paper reports certified by the
sampling		and		either independent or alternative company		laboratory and validated against laboratory produced CSV
assaying				personnel.		files, and significant intersections initially calculated by direct
				The use of twinned holes.		reference to the drill logs produced in the field. The data is
				Documentation of primary data, data entry		then entered into Excel spreadsheets for further processing
				procedures, data verification, data storage		and cross validation checks with results independently verified
				(physical and electronic) protocols.		byalternative company personnel at thepre-modellingstage.

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Criteria		JORC Code explanation	JORC Code explanation	Commentary	Commentary
			Discuss any adjustment to assay data.		No adjustment has been made to the data except replacing L
					for gold assays <0.01ppm with a numerical value of 0.005;
					representing half the analytical detection limit.
					No averaging or exchange of data between replicates and
					duplicates has been implemented, and all calculation and
					reporting of assays is based on the primary assay data set.
					Calculation of assay grades of significant intersections is by
					length weighted average of primary assay grades within the
					intersection.
					True thickness is estimated by cross sectional interpretation of
					the logged data in CAD software, perpendicular to interpreted
					lode, and reported in parallel with the down hole interval length
					of the intersection.
Location of data			Accuracy and quality of surveys used to locate		All co-ordinates are recorded in GDA94 MGA Zone 52 and
points			drill holes (collar and down-hole surveys),		converted to local mine grid for use in CAD software, via high
			trenches, mine workings and other locations used		precision survey based transform, by qualified and
			in Mineral Resource estimation.		experiences surveyors.
			Specification of the grid system used.		Drill hole pegs were set out by qualified and experienced
			Quality and adequacy of topographic control.		surveyors using RTKdGPS for a precision of ± 20mm in x and
					y, and 20cm in z.
					Drill hole collars were picked up after drilling by qualified and
					experienced surveyors using RTKdGPS for a precision of ±
					20mm in x and y, and 20cm in z.
					All drill holes underwent down hole survey for azimuth, dip and
					magnetic field strength through the rod string, utilising a Reflex
					digital down hole tool, positioned centrally within 4m of
					stainless steel rod to prevent magnetic interference. Holes of
					length less than 30m had survey shots taken at the end of
					hole. Holes longer then 30m had survey shots taken at end of
					hole and 20m intervals to a minimum depth of 20m. This is
					considered adequate for the depth, style and scope of
					mineralisation, and the short length of holes drilled.
					Historic drillholes were spatially controlled by dGPS for a
					spatial precision of ± 2m in x and y, and 4m in z. Where noted
					in the field, some of these collars were picked up and validated
					by RTKdGPS.
					Topographic control was provided at the commencement of
					this phase of drilling by generation of a ground digital terrain
					model measured and constructed by experienced and qualified
					surveyors, using RTKdGPS, over an area three times greater
					than the drill field and wholly encompassing the mineralisation
					and its surrounds. This topographic model represents industry
					best practice and when combines with individual collar
					surveys, is adequate for the style and scope of mineralisation.
Data spacing and			Data spacing for reporting of Exploration Results.		Line spacings between drilling lines is 25m ±2m depending on
distribution			Whether the data spacing and distribution is		topographic interference. This is considered adequate at this
			sufficient to establish the degree of geological and		stage of project development and is in line with that used and
			grade continuity appropriate for the Mineral		statistically validated in other similar deposits in the area.
			Resource and Ore Reserve estimation		Spacing between holes within a line varies from 12 to 25m with
			procedure(s) and classifications applied.		hole inclinations adjusted to target passes through the
			Whether sample compositing has been applied.		mineralised zone with a down dip separation of 10m, including
					existing passes from historic holes. This is considered to be
					high resolution sampling at the current stage of project
					development, and is in line with optimal spacings determined
					from statistical analysis of other similar deposits in the area.
					It is considered that the data spacing in the current drilling
					program will allow for the consideration of a JORC Mineral
					Resource to be calculated for this deposit.
					No sample compositing has been carried out for the current
					program.
Orientation	of		Whether the orientation of sampling achieves		The drilling program has been designed to intersect a
data in relation to			unbiased sampling of possible structures and the		moderately west dipping (approx. 60°) structure with easterly
geological			extent to which this is known, considering the		directed holes at inclinations of either 60° to 78° and it is
structure			deposit type.		considered that this provides a consistent unbiased result in
			If the relationship between the drilling orientation		conjunction with intercept spacing on section.
			and the orientation of key mineralised structures		As the drilling orientation has been consistent and the lode
			is considered to have introduced a sampling bias,		orientation also predictable at this stage of exploration it is not
			this should be assessed and reported if material.		considered that a sampling bias has been introduced.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sample security		The measures taken to ensure sample security.		Sample intervals sent to the laboratory have been collected in
				individually numbered calico bags and then loaded into large
				plastic bags annotated with the sample sequence to exclude
				moisture. These bags have then been transported directly
				from the drill site to the NAL laboratory in Pine Creek by Ark
				Mines (AHK) contract personnel.
				Retained coarse residue and assay pulps are currently
				securely stored at the NAL laboratory in Pine Creek.
				Retained duplicates samples are stored away from the working
				area in a bag farm on site in large plastic bags.
Audits or reviews		The results of any audits or reviews of sampling		No audits or reviews undertaken at this stage of the
		techniques and data.		exploration program.

Section 2 Reporting of Exploration Results

(Criteria	(Criteria	listed in theprecedingsection also applyto this section.)	listed in theprecedingsection also applyto this section.)	listed in theprecedingsection also applyto this section.)	listed in theprecedingsection also applyto this section.)
Criteria		JORC Code explanation		Commentary
Mineral tenement			Type, reference name/number, location and		All results pertaining to the current program are from
and land	tenure		ownership including agreements or material		ML23839, held by Ark Mines Ltd (AHK). .
status			issues with third parties such as joint ventures,		ML23839 is located on PL 815/ NT Portion 1630 Mary River
			partnerships, overriding royalties, native title		West Station.
			interests, historical sites, wilderness or national		AHK has consulted with the pastoralist and the Traditional
			park and environmental settings.		Owners (TOs) of ML23839, the Jaywon People on cultural
			The security of the tenure held at the time of		heritage and the TOs have been kept informed of exploration
			reporting along with any known impediments to		activities carried out by AHK.
			obtaining a licence to operate in the area.
Exploration	done		Acknowledgment and appraisal of exploration by		The last phase of exploration work has been carried out by
by other parties			other parties.		Arafura Resources (ARU) and comprised RC drilling between
					2003 and 2006. Prior to this, extensive drilling was carried out
					by Renison Goldfields Consolidated (RGC) between 1988 and
					1994, and some further drilling was carried out by Homestake
					Gold Australia between 1995 and 1997. Existing drilling prior
					to the current AHK programme totals approximately 19,626m
					and is referred to as historic drilling in this announcement.
Geology			Deposit type, geological setting and style of		The drilling has targeted moderately west dipping, south south-
			mineralisation.		westerly striking sulphidic quartz lodes and clay mica chlorite
					alteration zones occurring as semi-conformable saddles with a
					width of 2 to 10m, emplaced on the west limb of the tight to
					isoclinal Mt Porter Anticline near the contact between the
					middle Koolpin formation meta-pelites and an overlying Zamu
					Dolerite sill, as a result of the rheology contrast between these
					stratigraphic units and mesothermal genetic fluids enhanced
					by thermal pumping from the nearby Allamber Springs Granite.
					The deposit is a Palaeoproterozoic thermal aureole gold
					system with predominantly mesothermal input and deposition
					as saddle and shear lodes is controlled physically by structure
					and competence contrast, and influenced chemically by
					carbonate and ferruginous (BIF) horizons within the pelitic
					Koolpin sediment pile.
Drill	hole		A summary of all information material to the		All drillhole information is retained in the AHK database and
Information			understanding of the exploration results including		full drillhole details are shown in Table 1 accompanying this
			a tabulation of the following information for all		document.
			Material drill holes:		No material information is excluded.
			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.
			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

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Criteria		JORC Code explanation	JORC Code explanation	Commentary	Commentary
			Person should clearly explain why this is the
			case.
Data aggregation			In reporting Exploration Results, weighting		In reporting of mineralised intercepts quoted in this
methods			averaging techniques, maximum and/or minimum		announcement, these are shown without top cuts, using
			grade truncations (eg cutting of high grades) and		standard length weighted averaging techniques with a
			cut-off grades are usually Material and should be		maximum internal dilution of two metres, non- consecutive for
			stated.		mineralised intervals stated > 0.5 g/t gold.
			Where aggregate intercepts incorporate short		Higher grade results, generally over 1-2m lengths within longer
			lengths of high grade results and longer lengths of		lengths of lower grade results are indicated where considered
			low grade results, the procedure used for such		significant (refer Tables 1).
			aggregation should be stated and some typical		There are no metal equivalents reported.
			examples of such aggregations should be shown
			in detail.
			The assumptions used for any reporting of metal
			equivalent values should be clearly stated.
Relationship			These relationships are particularly important in		Intervals quoted are downhole widths at the drillholes angles
between			the reporting of Exploration Results.		reported (60˚to 78˚), to intersect moderately dipping (55˚to
mineralisation			If the geometry of the mineralisation with respect		65˚) lode structures (refer Table 1).
widths and intercept lengths			to the drill hole angle is known, its nature should be reported.		True thicknesses reported are estimated by cross sectional interpretation of the assays and logged data in Datamine RM
			If it is not known and only the down hole lengths		CAD software, perpendicular to interpreted lode, and reported
			are reported, there should be a clear statement to		in parallel with the down hole interval length of the intersection.
			this effect (eg ‘down hole length, true width not		The geometry of the mineralisation relative to drillhole angle is
			known’).		approximately perpendicular to ±15˚, and drill hole orientations
					are reported in table 1.
Diagrams			Appropriate maps and sections (with scales) and		See text figures showing drillhole locations.
			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.
Balanced			Where comprehensive reporting of all Exploration		Table 1 accompanying this document also describes targeted
reporting			Results is not practicable, representative		sub-economic mineralised gold intercepts from the most recent
			reporting of both low and high grades and/or		drilling program.
			widths should be practiced to avoid misleading
			reporting of Exploration Results.
Other substantive			Other exploration data, if meaningful and material,		Earlier drill, rock chip and soil sampling results have been
exploration data			should be reported including (but not limited to):		incorporated into targeting the current drilling.
			geological observations; geophysical survey		From targeting shallow, easily mineable gold mineralisation the
			results; geochemical survey results; bulk samples		depth of partial oxidation has been observed down to 35-45m
			– size and method of treatment; metallurgical test		vertical depth.
			results; bulk density, groundwater, geotechnical		Water table is variable depending on topographic height but
			and rock characteristics; potential deleterious or		generally in the range of 20-35m downhole depth.
			contaminating substances.		Earlier surface rock chip and drill results averaged 1.3g/t gold
Further work			The nature and scale of planned further work (eg		Figure 2 shows the extent of completed and planned drilling in
			tests for lateral extensions or depth extensions or		the current programme, and a further 2000m of drilling is
			large-scale step-out drilling).		planned for 2017.
			Diagrams clearly highlighting the areas of		Desktop work to develop a modelled JORC resource is
			possible extensions, including the main geological		planned to follow completion of the current drill programme, as
			interpretations and future drilling areas, provided		the precedent step to defining a reserve.
			this information is not commercially sensitive.

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