ASPIRE MINING LIMITED — Interim / Quarterly Report 2015

Jan 28, 2016

Aspire Mining Limited ABN: 46 122 417 243 Suite B3, 431-435 Roberts Road Subiaco WA 6008 PO Box 1918 Subiaco WA 6904 Tel: (08) 9287 4555 Fax: (08) 9388 1980 Web: www.aspiremininglimited.com Email: info@aspiremininglimited.com

ASX RELEASE

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For Immediate Release – 29 January 2016

QUARTERLY REPORT Quarter Ended 31 December 2015

Northern Railways Investment Update

• Government of Mongolia grants Construction Licence for the Erdenet to Ovoot railway to Northern Railways.

• Mongolian Ministry of Roads and Transport, Mongolian Railways (“UBTZ”) and Northern Railways agree on connection point for Erdenet to Ovoot Railway.

• Negotiations completed to resolve a potential land use conflict, paving the way for final approval of the alignment and grant of the land strip.

Coking Coal Projects Update

• Revised mining costs have been received for Ovoot resulting in a 22% reduction as against pre-feasibility cost estimates prepared in 2012, reconfirming Ovoot Coking Coal Project as a low cost producer.

• Gravity survey completed at Ovoot highlight new areas of mid and high exploration potential surrounding the Ovoot Mining Licence.

• Nuurstei Joint Venture exploration programme for 2015 completed confirming coal quality expectations of a high quality coking coal with moderate to high ash, mid to low volatiles and excellent coking properties including maximum vitrinite reflectance (RoMax%) ranging from 1.3 to 1.4.

Corporate Update

• With completion of Nuurstei Programme significant overhead reductions have been made in Mongolia and Australia.

• Company in discussions with Noble Group to roll forward the US$5m loan facility due March 2016.

• Northern Railways LLC and its advisers continue discussions with potential funders of rail feasibility study for the Erdenet to Ovoot Railway.

Aspire Mining Limited (ASX: AKM, Aspire , or the Company ), focussed on the exploration and development of metallurgical coal assets in Mongolia, is pleased to present its Quarterly Activities Report to Shareholders for the period ending 31 December 2015.

The Company is the largest coal tenement holder in the Orkhon-Selenge Coal Basin in northern Mongolia. Aspire currently wholly owns the large scale, world class Ovoot Coking Coal Project ( Ovoot ), the Jilchigbulag Coal Project ( Jilchigbulag ) and the Myngan Exploration Licence ( Myngan ). Through its 50% ownership in the Ekhgoviin Chuluu Joint Venture ( ECJV ), Aspire also holds an interest in the Nuurstei Coking Coal Project ( Nuurstei ) as well as the Erdenebulag Coal Project ( Erdenebulag ).

Northern Railways LLC ( Northern Railways ), Aspire’s Mongolian rail infrastructure subsidiary is responsible for activities associated with the commercialisation and future development of the 547 km Erdenet to Ovoot railway in northern Mongolia ( Rail Project ). The Erdenet to Ovoot railway is a part of the Mongolian Rail Policy and plays an important role in the development of an international Economic Corridor supported by the Governments of Russia and China to facilitate increased trade between the three nations and the wider Asian and European economies.

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Figure 1: Location of Projects and New Projects

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Aspire Mining Limited December 2015 Quarterly Report

COKING COAL PROJECTS

Ovoot Coking Coal Project (100%)

Review of Operating Costs

The Company completed a high level review of its mining costs for the Ovoot project in order to recognise the substantial deflation that is currently occurring in the resources sector. The Ovoot cost estimates were initially completed for the 2012 Revised Pre-Feasibility Study when all cost inputs were derived during boom conditions in the resources industry globally. The review was conducted to reflect the current market costs, which, over the last three years have seen significant cost deflation as a result of a number of factors including foreign exchange movements, labour rates and other input costs.

The cost review has resulted in a 22% decrease in mine operating cost estimates for the Ovoot project. The new cost estimates confirm the expectation that Ovoot remains at the lower end of the global cost curve on a FOR China basis.

Geophysics Report Identifies Prospective Areas for Future Exploration at Ovoot

The Company has received a report following the completion of a geophysical gravity survey conducted over the Ovoot tenements and surrounding areas by AMO-Discover LLC, a local Mongolian firm ( Geophysical Report ).

The survey was completed to explore the internal structure of the coal bearing depressions and confirm the results of a survey completed during 2014 identifying exploration potential to the east of the existing Ovoot Coal Reserve.

The Geophysical Report identified two areas of interest which has been recommended for further surveying and drilling. These mid-potential and high-potential areas surround the existing Ovoot Mining Licence to the southwest and within existing exploration licenses as shown in Figure 2.

The results of the Geophysical Report are positive and confirm the substantial potential to increase the existing Coal Resources and Reserves at Ovoot.

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Aspire Mining Limited December 2015 Quarterly Report

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Figure 2: Prospective areas for future exploration surrounding the Ovoot Mining Licence

The geophysical studies have also confirmed the areas of limited further exploration potential across the Ovoot Basin. The Company is now in the process of relinquishing a further 17,000 hectares of exploration ground at Ovoot which will reduce the tenement position to approximately 25,000 hectares over the next couple of months.

Ekhgoviin Chuluu Joint Venture (50%, Option to increase to 100%)

The ECJV is a 50/50 joint venture between Aspire and Singapore listed Noble Group (SGX: N21, Noble ) which is mandated to explore and develop coal assets in Mongolia. Aspire acquired its interest in the ECJV in mid-2014 and has been granted an option by Noble to buy out its 50% stake which expires in March 2016. In the event that the Company exercises its option, Aspire’s interest in the ECJV will move to 100%.

The ECJV currently holds interests in the Nuurstei (90%) and Erdenebulag (100%) coal projects.

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Aspire Mining Limited December 2015 Quarterly Report

During the period, the ECJV completed its 2015 exploration programme at Nuurstei which included a total of 24 non-core drill holes and 31 PQ diamond drill holes. Drilling results indicate a large number of steeply dipping and banded coal seams in the 150-180m deep holes. The results of the drilling programme expanded the strike length of correlated seams across 1.6km (up from 1.2km identified during the 2014 programme). Refer to ASX Announcements dated 21 August, 7 October and 18 December 2015 for the full results of the 2015 exploration programme.

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Figure 3: Nuurstei Drill Hole Location Plan including 2015 Exploration Program

Nuurstei Coal Quality Results

The ECJV also received the results of proximate analysis, washability test work and petrography results from a number of holes completed at Nuurstei which confirm Nuurstei coal as being a moderate to high ash coal, with mid-low volatility and excellent coking properties.

Indicative washed coal specifications are shown in Table 1 and were received for samples taken from four core holes NUDH013, NUDH014, NUDH015 and NUDH016 (refer Figure 3 for location of the drill holes).

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Aspire Mining Limited December 2015 Quarterly Report

Indicative Washed Coal Quality, Air Dried
Number of Samples	18
Moisture %	0.5
Ash %	9.2
Volatile Matter %	24
Total Sulphur %	0.8
Phosphorus %	0.08
Free Swelling Index (FSI)	8.5
Caking Index (“G”)	98
Max Fluidity DDPM	3,500
Max Dilatation %	200
Sapozhnikov Index - X mm	15
Sapozhnikov Index - Y mm	29

Table 1: Nuurstei Indicative Washed Coal Quality (air dried basis)

Petrographics were completed on five washed coal samples which showed vitrinite content ranging from 90% and higher and maximum vitrinite reflectance (RoMax%) ranging from 1.3 to 1.4.

Nuurstei Near Term Development Potential

The ECJV will assess the results of its 2015 exploration programme to consider undertaking a scoping study to assess the economics of a mining operation based on an initial road based (truck) transport to the existing rail head at Erdenet.

Due to its proximity to existing road and rail infrastructure, Nuurstei provides an opportunity for the ECJV to commence short term production operations once coal prices improve. A sealed road extends from the nearby town of Moron, approximately 10 kilometres from Nuurstei where product can be trucked to Erdenet and loaded onto rail and transported to customers. Once the Erdenet to Ovoot railway is constructed, coal produced at Nuurstei can be loaded onto rail closer to the mine site.

Nuurstei is well positioned to become the first user of the to be constructed Erdenet to Ovoot railway as the line is expected to pass near Nuurstei approximately two years after rail construction begins (refer to the Northern Railways section of this report).

CORPORATE

Cash Position

Aspire had A$1.4 million cash as at 31 December 2015.

Significant reductions in staff at the Company’s Perth and Ulaanbaatar offices have been made.in January as exploration activity at Nuurstei winds down and the Company’s rail subsidiary Northern Railways awaits additional funding to complete the rail feasibility study and other pre development activities.

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Aspire Mining Limited December 2015 Quarterly Report

US$5m Loan Facility

Aspire currently has a US$5 million loan facility with Noble Group which was provided in 2013 to assist with the completion of rail pre-development activities in relation to the Erdenet to Ovoot railway and the negotiation of a Concession with the Government of Mongolia. The loan was due in March 2015 and was subsequently extended for a further year and is now due in March 2016. The loan is secured against Aspire’s 50% interest in the ECJV.

The Company has received confirmation from Noble Group of its intent to roll this loan subject to agreement of terms. The Company and Noble are currently in negotiations regarding the terms of an Amendment Deed.

Performance Rights

In accordance with the agreement the Company and its rail adviser, Signum Resources Corporation, have agreed to extend the time period for completion of the performance hurdle from 31 December 2015 to 31 December 2016 in relation to the 40 million performance rights issued to the adviser on 31 July 2015.

Capital Structure at 31 December 2015:

Security	No. on issue
Quoted OrdinaryShares	928,288,306
Quoted Options	188,912,500
Unlisted Performance Rights	46,500,000

Interests in mining and exploration tenements at 31 December 2015:

Tenement	Location	Attributable Equity
Ovoot MV017098 13636X 017003X	Mongolia	100% 100% 100%
Hurimt 14510X 14637X	Mongolia	100% 100%
Jilchigbulag 12816X	Mongolia	100%
Myngan 17922X	Mongolia	100%
Nuurstei (ECJV) 13958X 13580X	Mongolia	45% 45%
Erdenebulag (ECJV) 18294X 18304X	Mongolia	50% 50%

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Aspire Mining Limited December 2015 Quarterly Report

Group Investment Structure

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----- Start of picture text -----

Aspire Mining Limited
(ASX: AKM)
Exploration Projects Infrastructure Investments
Ovoot Coking Coal Project (100%) Northern Railways Holdings LLC
(100%)
Jilchigbulag Coal Project (100%)
Northern Railways LLC
Myngan Coal Project (100%)
(90%)
ECJV (50%, option to earn 100%)
• Nuurstei Coking Coal Project (90%) [#]
• Erdenebulag Coal Project (100%) [#]
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• Ekhgoviin Chuulu Joint Venture assets

• *An issue of shares will be made to Noble Group following exercise of its option to acquire 10% of Northern Railways following the grant of the Erdenet to Ovoot railway concession.

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Aspire Mining Limited December 2015 Quarterly Report

NORTHERN RAILWAYS LLC

Mongolian registered Northern Railways is the responsible entity progressing the development of the 547 kilometre Erdenet to Ovoot railway project in northern Mongolia (refer Figure 4). The Rail Project will be implemented under a private-public-partnership with the Government of Mongolia which has granted Northern Railways the exclusive right to build and operate the Rail Project under the terms agreed within the Concession Agreement which was executed in September 2015.

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Figure 4: Northern Railways Rail Project forms part of a planned international trade corridor between Russia, Mongolia and China

Rail Pre-Development Update

Licence to Construct Received

On 1 December 2015, Northern Railways received the Licence to Construct the Erdenet to Ovoot railway for a total period of five years. This license established two commissions to provide recommendations back to the Ministry of Roads and Transportation on the final alignment for the purposes of granting the lease over the required land strip as well as nominating a connection point to connect onto the existing Mongolian Railway system.

Connection Agreement with UBTZ

A special Commission was formed by representatives of Mongolia’s Ministry of Roads and Transportation ( MRT ), Northern Railways and UBTZ following the issue of the Construction Licence to Northern Railways.

The Commission was mandated to assess the preferred tie in location for the Erdenet to Ovoot railway at the existing UBTZ railway at Erdenet amongst a number of options.

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Aspire Mining Limited December 2015 Quarterly Report

The Commission has identified a suitable rail connection point at the town of Erdenet which bypasses existing infrastructure and competing land uses which was agreed by all of the participants. The Minister has approved this connection point, an important step in preparing for the Rail Feasibility Study.

Alignment and Land Strip Approval

A special Commission was formed with the Ministry of Roads and Transport to finalise and approve the final rail alignment so that an application for the land strip can be made. In collaboration with this Commission, Northern Railways addressed competing land use possibilities and in an area to the west of Erdenet, prepared an alternative rail path which satisfied all parties.

On 6 January 2016, Northern Railways confirmed that both the connection point and the land strip have been approved.

Northern Railways has now completed all the necessary steps required in order to provide definition for the commencement of the Rail Feasibility Study. The funding for this study and the additional work required to support this study is currently being sought.by Northern Railways and discussions with potential financiers are continuing.

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Aspire Mining Limited December 2015 Quarterly Report

About Aspire Mining Limited

Aspire Mining Limited is listed on the ASX (ASX: AKM) and is the largest coal tenement holder in Mongolia’s Northern provinces and is focused on identifying, exploring and developing quality coking coal assets. Aspire currently owns a 50% interest in and is the operator of the Ekhgoviin Chuluu Joint Venture (ECJV), and has an option to increase its ownership to 100% of the ECJV. The ECJV owns a 90% interest in the Nuurstei Coking Coal Project (Nuurstei).Following a successful 2014 exploration program, additional exploration work was carried out through 2015 with the aim of identifying a JORC 2012 coal resource and defining coal quality across the deposit. Depending on the further analysis of the results of the 2015 program, future positive economic studies, funding and the grant of necessary approvals and licenses, Nuurstei could commence a road based production operation and access the new Erdenet to Ovoot railway as early as two years from commencement of its construction.

Aspire is also the owner of the world class Ovoot Coking Coal Project (Ovoot) which is the second largest coking coal project by reserves in Mongolia. The Ovoot project development is dependent on the construction of the Erdenet to Ovoot railway which is being progressed by Northern Railways LLC (Northern Railways).

Production from the Ovoot project can coincide with the commissioning of the Erdenet to Ovoot railway.

About Northern Railways LLC

Northern Railways LLC (Northern Railways) is a Mongolian registered rail infrastructure company mandated to pursue the development of the Erdenet to Ovoot Railway, and is supported by a consortium consisting of Aspire Mining, and subsidiaries of fortune 500 listed China Railway Construction Corporation – China Railway 20 Bureau Group Corporation (CR20G) and China Railway First Survey & Design Institute (FSDI).

The Erdenet to Ovoot Railway extends 547 km between the town of Erdenet to Aspire’s Ovoot Project, which connects northern Mongolia to China and international markets. In accordance with Mongolian National Rail Policy, the Erdenet to Ovoot Railway is a multi-user rail line and will be available for the transport of bulk materials, agricultural and general freight from the region to export markets including China, Russia and seaborne markets.

The Erdenet to Ovoot Railway will play an important part in the establishment of an Economic Corridor through Mongolia, the subject of a trilateral agreement signed by the Presidents of China, Russia and Mongolia. The Economic Corridor through Mongolia is primarily aimed at improving trade by reducing regulation, improving capacity at borders and to improve road and rail infrastructure to meet this increased demand for transport services. This Economic Corridor through Mongolia links closely with Chinese policies to establish a New Silk Road to improve Euro-Asian trade, and Russia’s policy of establishing a Euro-Asian economic zone.

In August 2015 Northern Railways was granted an exclusive 30 year concession by the Mongolian Government to build and operate the Erdenet to Ovoot Railway. Northern Railways is now progressing negotiations for the required funding for the completion of a bankable feasibility study and other studies necessary to support applications for licences, permits and approvals, and negotiations for the EPC contract.

About Ekhgoviin Chuluu Joint Venture

The Ekhgoviin Chuluu Joint Venture (ECJV) is currently a 50/50 joint venture arrangement between Aspire and Singapore listed Noble Group (SGX: N21, Noble). Aspire is the operator of the ECJV and has an option to purchase Noble’s 50% interest, exercisable by March 2016. The ECJV owns a 90% interest in the Nuurstei Coking Coal Project (Nuurstei) located in northern Mongolia and a 100% interest in the Erdenebulag Coal Project located in the South Gobi region of Mongolia.

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Aspire Mining Limited December 2015 Quarterly Report

The ECJV is assessing Nuurstei’s development potential with the view to making a development decision in 2016. Nuurstei’s close proximity to existing infrastructure (town, road, rail and services) provides an excellent opportunity to assess the economics of a road-based operation, prior to the completion of the Erdenet to Ovoot railway construction. The construction of a paved road from Moron to Erdenet was completed in 2015 and land available to Aspire at Erdenet could be used as a coal stockpile and train load-out area.

Production Target Assumptions – Ovoot Coking Coal Project

The following are key assumptions used to achieve the Ovoot Development Plan first year target of 5 Mtpa of marketable coking coal:

1. In the eight months prior to commencement of first year ODP production, a 23 million BCM waste removal programme to pre-strip overburden to top of coal;

2. A strip ratio of 7.7:1 (BCM waste: tonne of coal);

3. Preferentially targeting the Upper Seam with a relatively high proportion of low ash coal;

4. Mining of 5.2Mt of ROM coal (at a 2% moisture on an as received basis) producing 5Mt of saleable coal. This is made up of 40% of washed coal and 60% of by-pass coal meeting a 13% ash cut-off;

5. Higher ash coal totalling 2.1Mt will be washed in a 300 tonne per hour wash plant to be

6. constructed at the Ovoot Project;

7. Overall product yield of 90% to be achieved averaging 9% moisture for a less than 10% ash product; and

8. The mine design is that used to support the announced Coal Resource and Reserve update for the Ovoot Project (refer Quarterly Report for the period ended 31 December 2013).

Competent Persons Statement – Ovoot Coking Coal Project

In accordance with the Australian Securities Exchange requirements, the technical information contained in this announcement in relation to the JORC code (2012) Compliant Coal Reserves and JORC Compliant Coal Resource for the Ovoot Coking Coal Project in Mongolia has been reviewed by Mr Ian De Klerk and Mr Kevin John Irving of Xstract Mining Consultants Pty Ltd.

The Coal Resources documented in this release are stated in accordance with the guidelines set out in the JORC Code, 2012. They are based on information compiled and reviewed by Mr. Ian de Klerk who is a Member of the Australasian Institute of Mining and Metallurgy (Member #301019) and is a full time employee of Xstract Mining Consultants Pty Ltd. He has more than 20 years’ experience in the evaluation of coal deposits and the estimation of coal resources. Mr. de Klerk has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration to qualify him as a Competent Person as defined in the JORC Code, 2012. Neither Mr. de Klerk nor Xstract have any material interest or entitlement, direct or indirect, in the securities of Aspire Mining Limited or any companies associated with Aspire Mining Limited. Fees for work undertaken are on a time and materials basis. Mr. de Klerk consents to the inclusion of the Coal Resources based on his information in the form and context in which it appears.

The Coal Reserves documented in this release are stated in accordance with the guidelines set out in the JORC Code, 2012. They are based on information compiled and reviewed by Mr. Kevin Irving who is a Fellow of the Australasian Institute of Mining and Metallurgy (Member #223116) and is a full time employee of Xstract Mining Consultants Pty Ltd. He has more than 35 years’ experience in the mining of coal deposits and the estimation of Coal Reserves and the assessment of Modifying Factors. Mr. Irving has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration to qualify him as a Competent Person as defined in the JORC Code, 2012. Neither Mr. Irving nor Xstract have any material interest or entitlement, direct or indirect, in the securities of Aspire Mining Limited or any companies associated with Aspire Mining Limited. Fees for work undertaken are on a time and materials basis. Mr. Irving consents to the inclusion of the Coal Reserves based on his information in the form and context in which it appears.

Competent Persons Statement – Nuurstei Coking Coal Project

The information in this report that relates to Reporting of Exploration Results and the Exploration Target at Nuurstei Project, is based on information compiled under the supervision of, and reviewed by, the Competent Person, Mr. Parbury, who is a full time employee of McElroy Bryan Geological Services, is a Member of the Australasian Institute of Mining and Metallurgy (101430) and who has no conflict of interest with Aspire Mining Limited.

The reporting of exploration results for 13580X presented in this report has been carried out in accordance with the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’, The JORC Code 2012 Edition prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC).

Mr. Parbury has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 JORC Code. Mr Parbury consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Aspire Mining Limited December 2015 Quarterly Report

For more information contact:

Corporate, Media and Investor Relations David Paull Aspire Mining Ltd +61 8 9287 4555 Managing Director

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Follow us on Twitter @AspireMiningLtd; and LinkedIN.

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Aspire Mining Limited December 2015 Quarterly Report