ARK MINES LIMITED — Management Reports 2017

Apr 17, 2017

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Mining Plan Update

The board of Ark Mines Ltd ( ASX:AHK ) is pleased to confirm its plans to mine Mt. Porter Central during Q2 this year.

During the 2016/17 wet season, AHK has reviewed its Mt. Porter mining plans with a view to:

• prioritise access to high grade ore from Mt. Porter Central;

• consider potential mining extensions at Mt. Porter Central;

• establish resources at Mt. Porter NW and SE; and

• minimise working capital requirements.

AHK is now focused on securing a contractor to undertake the required mining at Mt. Porter and haulage of ore to the Union Reef mill.

Advanced planning is now underway for gold production at:

• Glencoe (ML29679), which will require:

• a drilling and metallurgical program; and

• an amendment of the current Mining Management Plan ( MMP ); and

• Frances Creek (EL23237), which will require:

• compilation of a JORC resource;

• application for and issue of a Mining Licence;

• a native title agreement; and

• MMP approval.

AHK’s intention is to prepare:

• Glencoe for gold mining during the 2018/19 dry season; and

• Frances Creek for gold mining during the 2019/20 dry season.

To increase production of gold ounces during the 2018/19 dry season AHK is actively seeking to acquire other advanced projects, which require minimal work prior to commencement of mining.

Mt. Porter Central

Mt. Porter Central consists of two parallel structures running along the length of Mt. Porter – see attached Figure 1 (Mt. Porter Cross Section) . AHK intends to mine Mt. Porter Central in two open cut mining phases during the 2017/18 dry season – see attached:

• Figure 2 (Mt. Porter Stage 1 Open Cut Mining Pit) ;

• Figure 3 (Mt. Porter Stage 2 Open Cut Mining Pit) ;

• Figure 4 (Mt. Porter Central and Mt. Porter South BCM Tables) ; and

• Figure 5 (Mt . Porter Central and Mt. Porter South Gold Recoveries) .

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The Western limb has a high grade upper component, which AHK plans to target in the first phase of mining. This strategy will reduce the initial overburden strip and bring forward ore processing and gold sales.

Since metallurgical testing of Mt. Porter ore in 2015, the Union Reef mill is now offering AHK new processing options and residency times that should materially increase recoveries from the Mt. Porter ore. AHK intends to conduct further drilling at Mt. Porter Central and metallurgical testing to confirm expectations for recoveries of Mt. Porter oxide and sulphide ore and to determine the best methodology to optimise profits.

The Mt. Porter metallurgical testing program comprises designing and drilling 4 holes with pre-design depth estimates between 40m and 60m for each hole ( Met Holes ), for a total of 160m to 220m. The Met Holes will be fire assayed by the metre in full, and representative grade/oxidation stated intervals will be screen fire assayed. This will pre-test the metallurgical sample for further compositing, allow checks against the laboratory and give indications on coarse gold content and nuggets.

The first two holes have now been assayed. Locations for these holes are set out in Table 1 (below) and the results are set out in Table 2 (below).

The final samples will then be tested by the laboratory in simulation of the Union Reef plant for both carbon in leach and Acacia backed gravity recovery, across fresh, transitional and oxide material types. These results are expected within the next 2 weeks.

Key points:

• grades are high in the oxide;

• the peak grades are better than previous results taken at 2m intervals;

• the higher resolution holes are showing a low-grade buffer outboard of the ore, whereas the older low resolution holes and the current model are not; they show the highest grades on the outer edges of the orebody. The new holes indicate that most dilution and loss may potentially be confinable in the low-grade halo, which is highly desirable and advantageous; and

• 32m at 3.41 grams on hole 347.

Table 1 Met Hole Locations

Hole ID	MT Porter Grid E	MT Porter Grid N	MT Porter Grid RL	MT Porter Grid Azimuth	Dip
MPRC347	10207	10375.8	521.99	273	60
MPRC348	10207	10390.7	525.5	270	60

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Table 2 Met Hole Gold assays at 1m intervals

BHID	FROM	TO	WEATHR	Grade		BHID	FROM	TO	WEATHR	Grade
	m	m		g/t			m	m		g/t
MPRC347	0	1				MPRC350	0	1	ox	0.18
MPRC347	1	2	ox	0.21		MPRC350	1	2	ox	0.19
MPRC347	2	3	ox	0.06		MPRC350	2	3	ox	0.02
MPRC347	3	4	ox	0.21		MPRC350	3	4	ox	0.05
MPRC347	4	5	ox	0.44		MPRC350	4	5	ox	0.15
MPRC347	5	6	ox	0.26		MPRC350	5	6	ox	L
MPRC347	6	7	ox	0.40		MPRC350	6	7	ox	L
MPRC347	7	8	ox	4.29		MPRC350	7	8	ox	0.05
MPRC347	8	9	ox	1.15		MPRC350	8	9	ox	0.02
MPRC347	9	10	ox	0.63		MPRC350	9	10	ox	L
MPRC347	10	11	ox	1.76		MPRC350	10	11	ox	L
MPRC347	11	12	ox	30.0		MPRC350	11	12	ox	0.05
MPRC347	12	13	ox	9.68		MPRC350	12	13	ox	0.03
MPRC347	13	14	ox	3.75		MPRC350	13	14	ox	0.07
MPRC347	14	15	ox	1.73		MPRC350	14	15	ox	0.05
MPRC347	15	16	ox	1.53		MPRC350	15	16	ox	0.44
MPRC347	16	17	ox	1.52		MPRC350	16	17	ox	0.20
MPRC347	17	18	ox	2.43		MPRC350	17	18	ox	0.12
MPRC347	18	19	ox	1.24		MPRC350	18	19	ox	0.12
MPRC347	19	20	ox	16.3		MPRC350	19	20	ox	0.15
MPRC347	20	21	ox	3.14		MPRC350	20	21	tr	0.62
MPRC347	21	22	ox	0.67		MPRC350	21	22	tr	0.31
MPRC347	22	23	ox	0.95		MPRC350	22	23	tr	1.15
MPRC347	23	24	ox	1.10		MPRC350	23	24	tr	0.36
MPRC347	24	25	tr	1.15		MPRC350	24	25	tr	3.22
MPRC347	25	26	tr	1.20		MPRC350	25	26	fr	17.8
MPRC347	26	27	tr	0.85		MPRC350	26	27	fr	5.07
MPRC347	27	28	tr	1.39		MPRC350	27	28	fr	6.66
MPRC347	28	29	tr	1.35		MPRC350	28	29	fr	1.94
MPRC347	29	30	tr	0.81		MPRC350	29	30	fr	0.98
MPRC347	30	31	tr	0.38		MPRC350	30	31	fr	1.55
MPRC347	31	32	fr	6.29		MPRC350	31	32	fr	1.15
MPRC347	32	33	fr	3.26		MPRC350	32	33	fr	1.60
MPRC347	33	34	fr	1.83		MPRC350	33	34	fr	1.58
MPRC347	34	35	fr	2.27		MPRC350	34	35	fr	0.65
MPRC347	35	36	fr	0.41		MPRC350	35	36	fr	0.55
MPRC347	36	37	fr	4.63		MPRC350	36	37	fr	2.00
MPRC347	37	38	fr	0.99		MPRC350	37	38	fr	2.01
MPRC347	38	39	fr	0.53		MPRC350	38	39	fr	0.39

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MPRC347	39	40	fr	0.39		MPRC350	39	40	fr	1.35
MPRC347	40	41	fr	0.64		MPRC350	40	41	fr	0.93
MPRC347	41	42	fr	0.12		MPRC350	41	42	fr	0.12
MPRC347	42	43	fr	0.15		MPRC350	42	43	fr	0.11
MPRC347	43	44	fr	0.55		MPRC350	43	44	fr	0.13
						MPRC350	44	45	fr	0.15
						MPRC350	45	46	fr	0.12
						MPRC350	46	47	fr	0.25
						MPRC350	47	48	fr	0.03
						MPRC350	48	49	fr	0.07
						MPRC350	49	50	fr	0.06
						MPRC350	50	51	fr	0.02
						MPRC350	51	52	fr	0.03
						MPRC350	52	53	fr	0.10

Mt. Porter Central NW and SE Extensions

In 2005, a review of the geological model for the Mt. Porter 10400 zone gold deposit identified two small targets (“ NW ” and “ SE ”), which had potential to host additional gold resources that could be extracted together with open cut mining of the 10400 zone resource – see attached Figure 6 (Mt. Porter NW and SE Extensions) .

The NW target is situated on the northern continuation of the western anticline in the 10400 zone, between the EW trending F2 fault, which truncates the 10400 zone mineralisation at about 10510N, and high grade gold resources drilled on 10470N. A 15-20 metre gap remains between the F2 fault and the Payne’s (2004) resource blocks in this area.

The SE target is located on the eastern anticline where it abuts the NNE trending F1 fault, which truncates the 10400 Zone resources to the southeast.

An RC drilling program was commenced in early November 2006 to test these targets, but was abandoned prematurely after drilling equipment was lost in the fourth hole of the planned 11 hole program.

AHK will undertake a small drilling program into the NW zone to investigate the potential of a small cut back in the designed pits to add some more ounces to Mt. Porter Central. The south west zone does not appear to present the same opportunity for high grades and will be considered further at a later date.

Mt. Porter South

AHK has had an RC drilling rig on site since late 2016 and has now restarted that program, subject to intermittent rainfall.

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The company intends to undertake further drilling to:

• evaluate the remaining strike of Mt. Porter South;

• establish two water monitoring holes;

• take metallurgical samples; and

• sample the waste for characterisation.

Information from the program will be used to prepare an MMP for governmental approval. The target date for MMP lodgement is June 2017. It is anticipated the approval process should be relatively short given that mining will be limited to oxide materials.

Subject to procuring the required MMP authorisation on or before December 2017 and weather permitting, AHK expects to mine approximately one-third of the Mt. Porter South resource prior to the onset of the 2017/18 wet season.

The initial section work from the Mt. Porter South resource program indicated the mineralisation is narrower than expected from the historic drilling, and that gold is distributed in two to three narrow lodes of around 2m to 3m thickness each, rather than one lode of 8m to 10m thickness. Grade tenor, however, was shown to be higher than the 1.3 g/t Au indicated in the historic drilling.

Due to wet weather, only half the strike length has been drilled, and only one third has been drilled at more than one hole per section. AHK’s mining consultants have inferred a reserve potential of 53,000 tons of ore at 1.59 g/t yielding 2,700 gold ounces at a strip ratio of 2.8:1 over 4 small shallow (17m) oxide pits, based solely on existing drilling sectional data.

AHK intends to complete the Mt. Porter South resource as planned, with only minor modifications. (refer to figure 7). This modified plan contemplates:

• a single hole per section will be drilled on all sections, to allow correction of spatial location and drill angle of second pass holes on each section, to maximise target acquisition. If the mineralisation is not acquired, structural interpretation from satellite image will be used in conjunction with data from the adjacent section to plan a second attempt hole, after the first pass drilling is completed;

• a second hole will be drilled on each section to provide grade and geometric control for the development of a resource estimate;

• a third hole will be drilled on each section, as per the initial plan, only if structural complexity or grade anomalies warrant the extra definition. This will be:

• based on sectional delineation and the need for a statistically valid and variographically amenable data set; and

• moderated by the understanding that grade control drilling will afford high definition spatial control for mining, and will inform as required pit boundary changes during operations;

• all holes will be sampled by the metre to afford full delineation of the ore zones, near ore waste grade and specific gravity;

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• waste characterisation samples will be drawn from the duplicate sample set as specified by Northern Resources, to assist MMP amendment;

• water samples will be taken to provide a pre-mining background data set to assist MMP amendment and provide AHK with water quality surety against future closure testing;

• metallurgical samples will be conserved from the duplicate sample set against future needs;

• some selected intervals will be assayed by screen fire to assist in determination of coarse gold content and nuggets;

• quality assurance and control will be carried out as planned on a minimum cost model for compliance regime;

• all holes on ERL 116 will be cancelled, saving 360m over 9 holes;

• the two water bores requested by Northern Resources to allow MMP amendment will be completed late in the programme; and

• lowest priority will be given to the 5 holes for 200m in the MPS / MPC gap, and no final decision for their progression will be taken until the rest of the programme is complete.

The completion time for both stages of the works programme, based on an average 120m per day including time for rig movements, splitting, water sampling, waste sampling, relogging and site work is expected to be to between 3 and 4 weeks.

Glencoe

Upon completion of the:

• metallurgical test program at Mt. Porter Central; and

• resource program at Mt. Porter South;

AHK will consider a metallurgical drill sampling at Glencoe. This sampling will assist AHK to determine its mining plans and the nature of the MMP amendment that is required.

Frances Creek

AHK intends to undertake further drilling at Frances Creek during the 2017/18 dry season. Subject to a successful program the company expects to establish a maiden resource at Frances Creek and will then apply for a mining lease.

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Figure 1 – Mt. Porter Cross Section

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Figure 2 – Mt. Porter Stage 1 Open Cut Mining Pit

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Figure 3 – Mt. Porter Stage 2 Open Cut Mining Pit

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Figure 4 – Mt. Porter Central and Mt. Porter South BCM Tables

MP Stage 1	Item Oxide t Oxide Aug/t Oxide Au oz Fresh t Fresh Aug/t Fresh Au oz Fresh waste t Oxide Waste t Total tonnes Total BCM	Unit	Totals	MP Stage 2	Item Oxide t Oxide Aug/t Oxide Au oz Fresh t Fresh Aug/t Fresh Au oz Fresh waste t Oxide Waste t Total tonnes Total BCM	Unit	Totals	MP South	Item	Unit	Total
		t	111,454			t	15,257		Oxide t	t	53,278
		g/t	1.82			g/t	1.76		Oxide Aug/t	g/t	1.59
		oz	6,527			oz	864		Oxide Au oz	oz	2,727
		t	154,666			t	163,612		Fresh t	t	-
		g/t	2.78			g/t	2.74		Fresh Aug/t	g/t	-
		oz	13,814			oz	14,430		Fresh Au oz	oz	-
		t	287,902			t	372,744		Fresh waste t	t	-
		t	781,310			t	413,707		Oxide Waste t	t	147,408
		t	1,335,332			t	965,320		Total tonnes	t	200,686
		m3	578,849			m3	403,381		Total BCM	m3	77,187

Figure 5 – Mt. Porter Central and Mt. Porter South Gold Recoveries

Total Mining	Oxide t	t	179,990	Ore Production	Oxide t	t	179,990	Ore Processing	Oxide t	t	179,990
	Oxide Aug/t	g/t	1.75		Oxide Aug/t	g/t	1.75		Oxide Aug/t	g/t	1.75
	Oxide Au oz	oz	10,119		Oxide Au oz	oz	10,119		Oxide Au oz	oz	10,119
	Fresh t	t	318,278		Fresh t	t	318,278		Fresh t	t	318,278
	Fresh Aug/t	g/t	2.76		Fresh Aug/t	g/t	2.76		Fresh Aug/t	g/t	2.76
	Fresh Au oz	oz	28,244		Fresh Au oz	oz	28,244		Fresh Au oz	oz	28,244
	Fresh waste t	t	660,646		Total ore	t	498,268		Total ore	t	498,268
	Oxide Waste t	t	1,342,425		Total ore	g/t	2.39		Total ore	g/t	2.39
	Total tonnes	t	2,501,339		Total ore	oz	38,362		Total ore	oz	38,362
	Total BCM	m3	1,059,417						Gold Production	oz	31,542

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Figure 6 – Mt. Porter NW and SE Extensions

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Figure 7 : 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. Two met holes shown in Central Pit.

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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 standard		program with drill cuttings collected every one metre.
		measurement tools appropriate to the minerals under		Samples were passed through a cyclone and attached riffle splitter
		investigation, such as down hole gamma sondes, or		in order to obtain a larger sample collected in a plastic bag and a
		handheld XRF instruments, etc). These examples		smaller representative sample weighing approximately 3kg was
		should not be taken as limiting the broad meaning of		collected in a calico bag for each metre drilled.
		sampling.		Intervals for initial 1m assay were selected on a visual basis and
		Include reference to measures taken to ensure sample		submitted to the laboratory, pulverised to produce a 50g charge for
		representivity and the appropriate calibration of any		fire assay and then analysed for gold. Standards and duplicates were
		measurement tools or systems used.		not inserted into the original sample sequence but instead industry
		Aspects of the determination of mineralisation that		standard Gannett standards for a range of values were used with
		are Material to the Public Report.		each laboratory job, included at the end of each sample sequence
		In cases where ‘industry standard’ work has been done		submitted.
		this would be relatively simple (eg ‘reverse circulation		Each sample collected was noted qualitatively for moisture content
		drilling was used to obtain 1 m samples from which 3		with the vast majority of samples collected being essentially dry.
		kg was pulverised to produce a 30 g charge for fire		Following receiving assay results duplicate, approximately 3kg
		assay’). In other cases more explanation may be		samples were collected from the retained plastic bag samples for
		required, such as where there is coarse gold that has		the full range of the assay values noted. These samples were
		inherent sampling problems. Unusual commodities or		obtained by means of a stand-alone riffle splitter for approximately
		mineralisation types (eg submarine nodules) may		one in eight of the samples originally assayed.
		warrant disclosure of detailed information.
Drilling techniques		Drill type (eg core, reverse circulation, open-hole		Kelly Drilling was contracted to undertake RC drilling.
		hammer, rotary air blast, auger, Bangka, sonic, etc)		Drilling was completed using a 5 3/8 inch (13.562cm) face sampling
		and details (eg core diameter, triple or standard tube,		hammer.
		depth of diamond tails, face-sampling bit or other		RC drilling was inclined. No downhole surveys were undertaken for
		type, whether core is oriented and if so, by what		this program.
		method, etc).
Drill sample		Method of recording and assessing core and chip		A visual estimate of percentage recovery was made for each metre
recovery		sample recoveries and results assessed.		drilled.
		Measures taken to maximise sample recovery and		Each sample was qualitatively logged for moisture content and
		ensure representative nature of the samples.		sample size consistency of the smaller calico bag sample
		Whether a relationship exists between sample		continuously monitored while drilling.
		recovery and grade and whether sample bias may		This phase of drilling is follow-up to previous drilling carried out in
		have occurred due to preferential loss/gain of		2004 utlising a smaller drilling rig and sample size so it is
		fine/coarse material.		problematic to fully make comparisons from this phase of drilling.
Logging		Whether core and chip samples have been geologically		All drill cuttings qualitatively logged and representative cuttings
		and geotechnically logged to a level of detail to		collected in chip trays on one metre intervals.
		support appropriate Mineral Resource estimation,		Qualitative logging includes colour, lithology, description,
		mining studies and metallurgical studies.		weathering, alteration and mineralisation. Water table depths and
		Whether logging is qualitative or quantitative in		key weathering marker horizons also recorded.
		nature. Core (or costean, channel, etc) photography.		Each hole logged over the entire interval drilled.
		The total length and percentage of the relevant
		intersections logged.
Sub-sampling		If core, whether cut or sawn and whether quarter, half		See sampling section for a description of sampling and duplicate
techniques and		or all core taken.		sampling techniques.
sample		If non-core, whether riffled, tube sampled, rotary split,		Duplicate samples were taken using the same riffle splitting method
preparation		etc and whether sampled wet or dry.		as collected from the drilling rig when the holes were drilled.
		For all sample types, the nature, quality and		Duplicate sample results for a range of assay values indicate that
		appropriateness of the sample preparation technique.		original assay results are largely reproducible, with no obvious
		Quality control procedures adopted for all sub-		sample bias.
		sampling stages to maximise representivity of		The nature, quality and appropriateness of the sampling technique
		samples.		are considered adequate for the style of mineralisation and are in
		Measures taken to ensure that the sampling is		line with, and directly comparable to the sampling techniques used
		representative of the in situ material collected,		by the previous explorers in their 2004 program for which the
		including for instance results for field		results are reported here.
		duplicate/second-half sampling.		Sample sizes are considered appropriate for the nature and grain

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		Whether sample sizes are appropriate to the grain size		size of the gold mineralisation intersected.
		of the material being sampled.
Quality of assay		The nature, quality and appropriateness of the		A certified and accredited laboratory, North Australian Laboratories
data and		assaying and laboratory procedures used and whether		(NAL) was used for the current assays and is the same laboratory
laboratory tests		the technique is considered partial or total.		used by the previous explorers in 2004.
		For geophysical tools, spectrometers, handheld XRF		Samples were analysed utilising the industry standard fire assay
		instruments, etc, the parameters used in determining		technique using a 50g charge and AAS finish (0.01ppm detection
		the analysis including instrument make and model,		limit). All assays over 1 ppm have been routinely re-assayed at least
		reading times, calibrations factors applied and their		once and in some cases twice to establish acceptable levels of
		derivation, etc.		accuracy and precision.
		Nature of quality control procedures adopted (eg		Internal certified QA/QC is carried out by NAL. In addition, industry
		standards, blanks, duplicates, external laboratory		standard Gannett standards for a range of values were used with
		checks) and whether acceptable levels of accuracy (i.e.		each laboratory job, included at the end of each sample sequence.
		lack of bias) and precision have been established.
Verification of		The verification of significant intersections by either		Primary data is verified on paper reports certified by the laboratory
sampling and		independent or alternative company personnel.		and significant intersections initially calculated by direct reference
assaying		The use of twinned holes.		to the drill logs produced in the field. The data is then entered into
		Documentation of primary data, data entry		Excel spreadsheets for further processing and cross validation
		procedures, data verification, data storage (physical		checks.
		and electronic) protocols.		No adjustment has been made to the data except replacing L for
		Discuss any adjustment to assay data.		gold assays <0.01ppm with a numerical value.
Location of data		Accuracy and quality of surveys used to locate drill		All co-ordinates are recorded in GDA94 MGA Zone 52.
points		holes (collar and down-hole surveys), trenches, mine		Previous drilling originally reported to the NT DME in the AGD66
		workings and other locations used in Mineral Resource		datum was initially located in the field with hand-held Garmin GPS
		estimation.		Garmin 60CSxc, but around ± 5m or worse accuracy not considered
		Specification of the grid system used.		sufficiently accurate to define the relatively closely spaced drill
		Quality and adequacy of topographic control.		spacing used for the current infill and extension program, so
				tape/compass survey conducted to obtain approximately ± 1m
				accuracy.
				Current drillholes at the completion of the program then surveyed
				using Real Time Kinematic (RTK) by nearby minesite (Frances Creek
				Iron Ore Mine) surveyor for highly accurate 1-2cm accuracy co-
				ordinate and topographic control.
				Previous drillholes then transformed to GDA94 MGA Zone 52 and
				current drillhole positions related back to the old holes with
				confidence to at least ± 1-2m and RLs within approximately ± 0.1-
				0.2m.
				Due to the commonly shallow depths of the holes (average around
				40m) no downhole surveys were carried out for the current
				program.
Data spacing and		Data spacing for reporting of Exploration Results.		Line spacings between drilling lines are variable because of the
distribution		Whether the data spacing and distribution is sufficient		relatively steep terrain and the need to infill in areas of previous
		to establish the degree of geological and grade		highest grade results. Current line spacing following the completion
		continuity appropriate for the Mineral Resource and		of the current program varies between drilling lines 6-20m apart.
		Ore Reserve estimation procedure(s) and		The relatively steep terrain has also resulted in several holes past
		classifications applied.		and present to be drilled within 1-1.5 metres of each other with
		Whether sample compositing has been applied.		shallow and steeper dips, in order to obtain shallow intercepts 5-10
				apart vertically.
				It is considered that the data spacing that now exists from the
				current drilling program at Golden Honcho 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 (see above).
Orientation of data		Whether the orientation of sampling achieves		The drilling program has been designed to intersect a steeply east
in relation to		unbiased sampling of possible structures and the		dipping or sub-vertical lode structure with westerly directed holes at
geological		extent to which this is known, considering the deposit		inclinations of either 57° or 70° and it is considered that this
structure		type.		provides a consistent unbiased result.
		If the relationship between the drilling orientation and		As the drilling orientation has been consistent and the lode
		the orientation of key mineralised structures is		orientation also predictable at this stage of exploration it is not
		considered to have introduced a sampling bias, this		considered that a sampling bias has been introduced.
		should be assessed and reported if material.
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. These bags have then

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Criteria JORC Code explanation

Commentary

been transported directly from the drillsite 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.

Audits or reviews  The results of any audits or reviews of sampling techniques and data.

• No audits or reviews undertaken at this stage of the exploration program.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Mineral tenement		Type, reference name/number, location and		All results pertaining to the current program are from MA 389, held
and land tenure		ownership including agreements or material issues		by Frances Creek Pty Ltd a wholly owned subsidiary of Territory
status		with third parties such as joint ventures, partnerships,		Resources Ltd. AHK has signed an Agreement with Arafura
		overriding royalties, native title interests, historical		Resources Ltd (ARU) whereby they can earn up to 70% of the gold
		sites, wilderness or national park and environmental		rights currently held by ARU with an expenditure of $400,000 by 26
		settings.		August 2015 with an initial earn-in of $200,000 due by 26 December
		The security of the tenure held at the time of reporting		2014.
		along with any known impediments to obtaining a		MA 389 is located on PL 815/ Mary River West Station and PPL
		licence to operate in the area.		1111/ Ban Ban Springs Station.
				AHK has consulted with the Traditional Owners (TOs) of MA 389, the
				Jaywon People on cultural heritage and the TOs have been kept
				informed of exploration activities carried out by AHK.
Exploration done		Acknowledgment and appraisal of exploration by		The last phase of exploration work has been carried out by ARU and
by other parties		other parties.		comprised RC drilling in 2004 that is referred to in the text.
Geology		Deposit type, geological setting and style of		The drilling has targeted sub-vertical to steeply dipping, ferruginous
		mineralisation.		quartz lodes and alteration zones originally found outcropping on
				steep ridge crests. Both the Golden Honcho (drilled this program)
				and Golden Slips are N to NNE oriented mineralised shoots on the
				same structure and hosted within the massive sandstone sequence
				of the Mundogie Sandstone on the west limb of the Thelma
				Anticline.
Drill hole		A summary of all information material to the		All drillhole information is retained in the AHK database and full
Information		understanding of the exploration results including a		drillhole details have already been announced.
		tabulation of the following information for all Material		No material information is excluded.
		drill holes:
		o easting and northing of the drill hole collar
		o elevation or RL (Reduced Level – elevation above
		sea level in metres) of the drill hole collar
		o dip and azimuth of the hole
		o down hole length and interception depth
		o hole length.
		If the exclusion of this information is justified on the
		basis that the information is not Material and this
		exclusion does not detract from the understanding of
		the report, the Competent Person should clearly
		explain why this is the case.
Data aggregation		In reporting Exploration Results, weighting averaging		In reporting of mineralised intercepts quoted in this announcement,
methods		techniques, maximum and/or minimum grade		these are shown without top cuts, using standard averaging
		truncations (eg cutting of high grades) and cut-off		techniques with a maximum internal dilution of two metres, non-
		grades are usually Material and should be stated.		consecutive for mineralised intervals stated > 1 g/t gold.
		Where aggregate intercepts incorporate short lengths		Higher grade results, generally over 1-2m lengths within longer
		of high grade results and longer lengths of low grade		lengths of lower grade results are indicated where considered
		results, the procedure used for such aggregation		significant.
		should be stated and some typical examples of such		There are no metal equivalents reported.
		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 the		Intercepts quoted are downhole widths with the drillholes angles at
between		reporting of Exploration Results.		57°, 60° and 70° to intersect a steeply dipping to sub-vertical lode
mineralisation		If the geometry of the mineralisation with respect to		structure.
widths and		the drill hole angle is known, its nature should be		The geometry of the mineralisation relative to drillhole angle is

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
intercept lengths		reported.		mentioned in the text and shown in diagrams.
		If it is not known and only the down hole lengths are
		reported, there should be a clear statement to this
		effect (eg ‘down hole length, true width not known’).
Diagrams		Appropriate maps and sections (with scales) and		See text figures showing drillhole locations with traces for both of
		tabulations of intercepts should be included for any		the Golden Honcho and Golden Slips prospects along with cross-
		significant discovery being reported These should		sections (see above).
		include, but not be limited to a plan view of drill hole
		collar locations and appropriate sectional views.
Balanced reporting		Where comprehensive reporting of all Exploration		The text also describes targeted sub-economic mineralised gold
		Results is not practicable, representative reporting of		intercepts from the most recent drilling program.
		both low and high grades and/or widths should be
		practiced to avoid misleading reporting of Exploration
		Results.
Other substantive		Other exploration data, if meaningful and material,		Earlier rock chip and soil sampling results have been incorporated
exploration data		should be reported including (but not limited to):		into targeting the current drilling.
		geological observations; geophysical survey results;		From targeting shallow, easily mineable gold mineralisation the
		geochemical survey results; bulk samples – size and		depth of partial oxidation has been observed down to 40-50m
		method of treatment; metallurgical test results; bulk		vertical depth (see text)
		density, groundwater, geotechnical and rock		Water table is variable depending on topographic height but
		characteristics; potential deleterious or contaminating		generally in the range of 20-30m downhole depth.
		substances.		Earlier surface rock chip results averaging > 10g/t gold is now
				confirmed from the most recent and earlier 2004 drilling at the
				Golden Honcho prospect.
Further work		The nature and scale of planned further work (eg tests		Mineralised intercepts now to be examined for extra elements
		for lateral extensions or depth extensions or large-		including Cu, Pb, Zn, Ag and As (see text).
		scale step-out drilling).		Desktop work to bring the Golden Honcho prospect to JORC
		Diagrams clearly highlighting the areas of possible		resource status (see text)
		extensions, including the main geological		Figure 6 shows the area of the current drilling relative to the future
		interpretations and future drilling areas, provided this		planned for drilling Golden Slips prospect and other not fully or
		information is not commercially sensitive.		untested by drilling adjacent prospect areas.

About Ark Mines

Ark Mines Ltd (ASX: AHK) is a publicly listed company with Gold Tenements in Northern Territory. Ark is focussed on Mining its tenements and to develop further cash generating projects in the Northern Territory.

FURTHER INFORMATION: Roger Jackson, Managing Director, Ark Mines Limited:

rjackson@arkmines.com.au

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.

Note:

Runge Limited who purchased the assets of Resource Evaluations Pty Ltd have reviewed the documentation relating to the Mount Porter resource and have confirmed that this resource estimation conforms to the reporting guidelines of the JORC Code (2004).

Note

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In early 2004, an updated resource estimate was completed for Arafura by Reseval Pty Ltd. Published Identified Resources for the Mt. Porter 10400 Zone deposit, calculated in compliance with the requirements of the JORC Code, now stand at:

	**Cut-off 1.7g/t **
Indicated Resources	300,000 t@3.1g/t Au
Inferred Resources	55,000 t@2.6g/t Au
TOTAL RESOURCES	355,000 t@ 3.0g/t Au
	34,000ozs

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