AUKING MINING LIMITED — Capital/Financing Update 2015

Apr 22, 2015

2015 MOUNT ISA EXPLORATION ACTIVITIES – PRIORITY ON LARGESCALE TARGETS

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ABN 27 099 098 192

CYU is a resource exploration and development company with a primary focus on project interests in the Mount Isa region of north

Issued Capital: 473,027,475 Ordinary shares

4,000,000 Performance shares

Directors:

Zhihua Yao Chairman Paul Williams Managing Director Zewen (Robert) Yang Executive Director

Company Secretary:

Paul Marshall

CHINALCO YUNNAN COPPER RESOURCES LTD

Suite 4, Level 8, 320 Adelaide Street BRISBANE Q 4000 Ph: +61 7 3211 9013 Email: admin@cycal.com.au

23 April 2015

Summary

• CYU appointed two former senior Xstrata/Mount Isa Mines geologists in early 2015 – they were initially tasked to undertake a thorough review of CYU’s exploration portfolio in Mount Isa and to develop program priorities for 2015.

• A central component of the review was a CYU exploration strategy to identify projects with potential to establish at least one (1) million tonnes (Mt) contained copper (and/or copper equivalent)

• The review is now complete and CYU’s Board has approved a $1.8 million exploration program for 2015, which proposes activities on the following highly prospective areas:

• The Roseby Trend – a 25km long, north-south trending zone of extensive copper-gold anomalism that is continuous with Altona Mining’s Roseby Project to the north. This trend hosts the Native Companion and Brolga prospects.

• Elaine/Blue Caesar/Jubilee – CYU already has a defined inferred JORC resource at Elaine Dorothy of 27.7Mt @ 0.53% Cu and 0.08 g/t Au within a large alteration system that is likely to join with Blue Caesar (500m northwest of Elaine)

• Other Iron Oxide Copper-Gold Targets - the technical review has also highlighted the potential for significant iron oxide copper gold (IOCG) mineralisation within CYU’s exploration portfolio.

• CYU’s 2015 exploration program comprises a combination of drilling, IP surveys, magnetic modelling and geological mapping across the 850km[2 ] tenure.

Contact

Paul Williams Managing Director paul.williams@cycal.com.au Mobile: +61 419 762 487

The Board of Chinalco Yunnan Copper Resources Ltd (ASX:CYU) continues to focus on transforming the Company into a substantial mid-tier mining group, with a primary exploration focus in the Mount Isa region and the ongoing pursuit of project acquisition opportunities currently under review and negotiation – both locally and overseas.

ASX Release 23 April 2015 2015 Mount Isa Exploration Activities

2015 Mount Isa Exploration Program

CYU’s Board has approved its 2015 Mount Isa exploration activities, after completion of a detailed project review conducted by its recently-appointed Exploration Manager, David A- Izzeddin and Senior Geologist Dr Tom Evans. Both Mr A-Izzeddin and Dr Evans were previously employed in Xstrata Copper’s Mount Isa operations and have extensive knowledge of the prospects within CYU’s exploration tenure portfolio.

CYU’s key criterion underpinning the project review is to identify exploration targets with the potential of establishing a resource base of at least one (1) million tonnes of copper and/or copper equivalent minerals (“the one million tonne criterion”).

CYU has adopted this criterion in recognition that shareholders (and the wider investment community) have a very high expectation that exploration dollars are focussed on areas of maximum potential. A significant component of CYU exploration activities in recent times has been to identify and recognise near surface mineralisation across a very wide target area using techniques such as geochemical soil sampling and MMI (mobile metal ion) analysis. In addition, the exploration drilling has produced some high grade copper, gold and other mineralisation results. However, it became apparent from the project review that in order to meet CYU’s one million tonne criterion, the primary focus of activities (and exploration spend) must be on large alteration systems that exist within the CYU tenure portfolio. Accordingly, there has been a re-prioritisation of exploration targets and proposed activities.

There are a number of mineralised systems in the Eastern Succession of the Mount Isa Inlier that host over 1Mt of copper. These include Glencore’s Ernest Henry mine that has an established resource of 1.8Mt copper and Altona Mining’s Cloncurry Project that hosts 1.6Mt copper. CYU has a number of prospects with similar characteristics to both the Ernest Henry and Cloncurry projects and these deposits are considered by CYU to be an appropriate benchmark to apply for its exploration activities in the Mount Isa/Cloncurry region of northwest Queensland.

The CYU Mount Isa exploration portfolio covers approximately 850km[2] , centred in an area 75km northeast of Mount Isa and 40km west to northwest of Cloncurry, in northwestern Queensland (See Annexure A).

The CYU exploration portfolio area comprises a number of farm-in agreements (Mount Isa Mines – a Glencore company, Altona Mining/Roseby Copper South, Elementos and Goldsearch), together with tenure directly held by CYU.

The $1.8 million exploration program for 2015 will consist of a range of prospect delineation activities including further drilling, induced polarisation (IP) geophysics surveys, extensive surface geochemical surveying, magnetic modelling and geological mapping.

A summary of the areas of particular interest in the 2015 exploration program is set out below.

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ASX Release 23 April 2015 2015 Mount Isa Exploration Activities

The Roseby Trend

This regionally significant north-south trending belt of copper mineralisation extends over 50km. The northern half of this belt hosts Altona Mining’s Cloncurry Project which has a current JORC resource of 286.6Mt @ 0.57% Cu and 0.04 g/t Au for 1,647,000 tonnes of copper and 409,000 oz of gold ( Source: Altona Mining Quarterly Report March 2015 ASX – 21 April, 2015 ). CYU holds tenure over the southern 25km extent of this belt, while comprising very similar geology to the Cloncurry Project, remains largely untested by modern exploration methods.

The Roseby Trend extends across four (4) CYU exploration tenements – comprising EPMs 10833, 11611 and 14535 (all Roseby South Joint Venture) and EPM 18973 (Millennium Joint Venture). Copper mineralisation along the Roseby Trend has already been defined by historic prospects and workings, elevated rock chip samples and soil geochemistry along a structural corridor that is 0.5-1.0km wide. The copper mineralisation is typically associated with sulphides from shallow depths and, in contrast to the Cloncurry Project mineralisation, only minor native copper has been noted and the copper mineralisation is often associated with significant gold mineralisation.

The main prospects to be tested by CYU’s exploration team include Native Companion, Brolga, Cameron Crossing and Hobby. Of these, the primary targets for 2015 are:

Native Companion – a 3.6km zone of historic workings, elevated soil geochemistry and rock chip results and was the subject of an initial drilling program by CYU late in 2014. Four of the CYU drill holes in late 2014 reported intersections including:

• Q034: 26m @ 0.68% Cu & 0.25 g/t Au (63-89m depth) including 15m @ 1.15% Cu and 0.41 g/t Au

In addition, several copper-gold rock chip sample results (from historic programs) have reported substantial copper-gold results that may warrant future drill testing, including the following:

• 22.26% Cu

• 26.9% Cu, 2.86g/t Au, 7.2g/t Ag and 883ppm Mo

• 10.8% Cu & 1.63 g/t Au

• 10.1% Cu & 13.5 g/t Au

• 6.22% Cu & 5.06 g/t Au

• 4.16% Cu & 2.55 g/t Au

• 1.27% Cu & 4.32 g/t Au

• 1.23% Cu & 8.81 g/t Au

The Native Companion prospect is partially covered with transported sediments with only sporadic outcropping exposure. This prospect remains substanitally under-evaluated. A reinterpretation of the available mapping and geochemistry indicates that the area is host to a series of mineralised shear zones with higher grades being developed where the shear zones intersect reactive rock-types. CYU’s planned exploration activities will comprise detailed geological mapping and an IP survey to develop targets that will then be followed up by drill testing during the year.

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ASX Release 23 April 2015 2015 Mount Isa Exploration Activities

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Gulliver’s Gossan
Prince of Wales
Native Companion
Brolga
Camel Rock
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Figure 1: Native Companion-Brolga area with historic prospects and workings, rock chip and soil geochemistry, and interpreted mineralised lode structures overlain on TMI magnetic image.

• Brolga Camel Rock – a 2.3km zone of historic workings and rock chip results up to 30.0% Cu and 1.12g/t Au. The MMI soil survey conducted by CYU in 2014 defined a series of mineralised zones within the Roseby Corridor including a 1.4km x 0.7km Cu-Au anomaly that was subsequently the subject of an initial two hole drilling program by CYU late in 2014. Reported drill intersections included:

• Q-037: 18m @ 0.37% Cu including 8m @ 0.69% Cu.

A number of mineralised structures have been located in the area and follow-up investigations are required. CYU’s planned exploration activities will comprise detailed geological mapping and an IP survey to develop targets that will then be followed up by drill testing later in the year.

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ASX Release 23 April 2015 2015 Mount Isa Exploration Activities

Elaine/Blue Caesar/Jubilee

The Elaine prospect has already been the subject of over 13,000m of drilling by CYU since 2009. In September 2012, CYU announced a maiden inferred JORC resource at Elaine of 27.7Mt @ 0.53% Cu and 0.08 g/t Au . The Elaine prospect is part of a large alteration system that has been mapped over 10km on EPM 14467 and 14022. The current resource has only been tested over a 400m strike length and remains open at depth and may potentially join up with the Blue Caesar prospect, located 500m to the northwest of Elaine.

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MARY KATHLEEN
5km long zone of strong
metasomatic alteration
Poorly tested 3km
long target along
Mary Kathleen –
strike from Jubilee
Mount Colin
Corridor
Elaine
27.7Mt @ 0.53% Cu
& 0.08g/t Au
Elaine Magnetic
Target
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Figure 2: The Elaine-Blue Caesar-Jubilee area with historic prospects and workings, rock chip and soil geochemistry overlain on TMI magnetic image. The figure also depicts areas of mapped skarn alteration (associated with the Elaine-Blue Caesar mineralisation) as well as the Ballara Quartzite (Pkb)-Corella Formation (Pkc) contact that hosts the Jubilee mineralisation.

There also exists a 1.0km x 0.5km magnetic anomaly to the south of Elaine that remains virtually unexplored. Rock chip samples from earlier programs in this area include:

• 7.52% Cu & 6.40 g/t Au

• 5.34% Cu & 0.83 g/t Au

• 5.02% Cu & 1.85 g/t Au

• 4.88% Cu & 1.87 g/t Au

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ASX Release 23 April 2015 2015 Mount Isa Exploration Activities

CYU’s exploration team proposes to carry out a range of activities designed to identify drill targets for later in the year – such activities to include mapping, drill hole re-logging, magnetic modelling, and 3D geological modelling.

During 2014 CYU directed considerable focus on the Jubilee prospect, which is only 900m west of Blue Caesar and 5.5km south of the historic Mary Kathleen uranium mine. As reported previously, the results of the Jubilee exploration programs to date have already defined a strong copper-gold mineralised zone over a 500m strike length. There still remains a 3.2km north-south zone of Ballara Quartzite/Corella Formation to the north of the current Jubilee prospect that requires further exploration and assessment. Reconnaissance mapping and geochemistry soil sampling activities are planned for this prospect during the course of 2015. Should the mineralisation be established to continue further to the north, there is potential for the Jubilee area to provide a complementary/satellite source of mineralised ore to a primary future mining operation at Elaine.

Iron Oxide Copper-Gold Potential

The recently completed technical review has also highlighted the potential for the CYU tenement package in northwest Queensland to host significant iron oxide copper gold (IOCG) mineralisation. A number of substantial IOCG deposits have been recognised in the Eastern Succession – Mount Isa Inlier including Glencore’s Ernest Henry and Mount Margaret projects and Altona Mining’s Little Eva project. These deposits have the size potential to meet CYU’s exploration criterion (ie > 1Mt of contained copper or copper equivalent).

A number of prospects have been recognised within the CYU portfolio that exhibit many of the ingredients typical in IOCG deposits. These include:

• Sodic-calcic and potassic alteration;

• Regional scale faulting;

• Strong magnetic signatures; and

• Elevated copper and gold results in soil and rock chip results.

Featured prospects in this region include:

Oliver Twist (EPM 14535) – a 3.3km x 500m strong magnetic anomaly with a sinusoidal shape. Rock chip samples in the area from earlier activities include results of 14.00% Cu & 2.0 g/t Au .

Round Mount NW & SE (EPM 10833) – further strong magnetic anomalies along a 5km strike length. Rock chip samples in the area from earlier activities include results of 3.42% Cu & 0.75 g/t Au .

Campbell’s Prospect (EPM 14365) – located on the margin of a large 600m x 400m magnetic anomaly with rock chip samples from earlier activities up to 3.58% Cu and 0.12 g/t Au .

The Tub (EPM 14365) – a 1,600m x 1,100m strong magnetic anomaly with rock chip samples from earlier activities up to 2.28% Cu and 0.25 g/t Au .

A large number of these prospects are associated with magnetic complexes contained within CYU’s exploration tenement holdings and remain poorly tested by modern

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ASX Release 23 April 2015 2015 Mount Isa Exploration Activities

exploration methods or drilling. These prospects all remain early stage exploration targets and will be evaluated in 2015 as part of this year’s exploration campaign. Reconnaissance mapping and geochemical soil sampling activities are planned for these prospects during the course of 2015.

ooo000ooo

CYU Managing Director, Paul Williams, said CYU’s criteria of pursuing exploration targets with the potential of establishing at least one million tonnes of copper and/or copper equivalent minerals has created a renewed (and important) focus for the Mount Isa-based exploration team. “The investment market now has little tolerance for exploration expenditure that does not deliver results. The project review conducted by the highlyexperienced former Xstrata/MIM geologists who have joined the CYU team has highlighted the significant potential within CYU’s Mount Isa exploration portfolio. The CYU Board is really looking forward to its 2015 exploration activities and the results that will follow.”

On behalf of the Board

Paul Williams Managing Director paul.williams@cycal.com.au +61 419 762 487

About CYU

Chinalco Yunnan Copper Resources Ltd (CYU) is a resource exploration and development company with project interests in the Mt Isa region of north Queensland.

CYU’s largest shareholder is China Yunnan Copper (Australia) Investment and Development Co Ltd (“CYC”), owning 63.4% of the total issued shares in CYU. CYC is a wholly-owned subsidiary of Kunming-based Yunnan Copper Industry (Group) Co Ltd, which is the third largest producer of smelted copper product in China. In turn, Yunnan Copper Group is a subsidiary of Aluminium Corporation of China (Chinalco) which is the largest producer of aluminium product in China and the second largest world-wide. CYU has offices in Brisbane, and Mt Isa. The Company is listed on the ASX under the symbol “CYU”.

Competent Person’s Statement

The information regarding exploration activities and information set out in this ASX Release is based on information compiled by Mr David A-Izzeddin, a Competent Person, who is CYU’s Exploration Manager and a Member of the Australian Institute of Geoscientists. Mr A-Izzeddin has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity that is being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr A-Izzeddin consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

This Mineral Resources Statement for the Elaine prospect as outlined above is extracted from a previous ASX announcement titled Elaine Project Resource Upgrade, dated 18 October 2012.

When used, the term “copper equivalent” refers to copper in concentrate produced, or planned to be produced. It does not refer to metal contained within insitu resources, reserves or drill results. The copper equivalent grade is calculated by factoring the copper grade by resource from all metals (NSR) being copper, zinc, gold and silver.

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ASX Release 23 April 2015 2015 Mount Isa Exploration Activities

ANNEXURE A

(CYU’s Mt Isa Tenement Location)

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JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling	• Nature and quality of sampling (eg cut	•Diamond core and reverse circulation drilling
techniques	channels, random chips, or specific specialised	was used to obtain 1 m samples from which 1
	industry standard measurement tools	kg was pulverised to produce a primary pulp
	appropriate to the minerals under investigation,	from which ICP (ALS MEICP-41) and fire assay
	such as down hole gamma sondes, or	(ALS AA25) analyses were completed.
	handheld XRF instruments, etc). These	Sampling was carried out under CYU’s
	examples should not be taken as limiting the	protocols and QAQC procedures
	broad meaning of sampling.	•Rock chip samples relate to historical data not
	• Include reference to measures taken to ensure	collected by CYU. Samples were collected in
	sample representivity and the appropriate	the 1970’s and 1980’s by companies including
	calibration of any measurement tools or	CRA Exploration Pty Ltd, Roebuck Resources
	systems used.	NL, Carpentaria Exploration Company Pty Ltd,
	• Aspects of the determination of mineralisation	Clifford Minerals Ltd, Menzies Gold NL, Delta
	that are Material to the Public Report.	Gold Exploration Pty Ltd, Pimex Pty Ltd and
	• In cases where ‘industry standard’ work has	Pancontinental Mining Limited. The quality of
	been done this would be relatively simple (eg	the analysis and sampling is uncertain although
	‘reverse circulation drilling was used to obtain 1	there is no reason to doubt the quality.
	m samples from which 3 kg was pulverised to	•Soil samples relate to historical data not
	produce a 30 g charge for fire assay’). In other	collected by CYU. Samples were collected in
	cases more explanation may be required, such	the 1970’s and 1990’s by companies including
	as where there is coarse gold that has inherent	CRA Exploration Pty Ltd and MIM Exploration
	sampling problems. Unusual commodities or	Pty Ltd. The quality of the analysis and
	mineralisation types (eg submarine nodules)	sampling is uncertain although there is no
	may warrant disclosure of detailed information.	reason to doubt the quality.
Drilling	• Drill type (eg core, reverse circulation, open-	•Diamond core drilling at NQ diameter, standard
techniques	hole hammer, rotary air blast, auger, Bangka,	tube, using an RD750 truck-mounted rig,
	sonic, etc) and details (eg core diameter, triple	HD900 track-mounted rig and a Universal
	or standard tube, depth of diamond tails, face-	DR33. Drill core was oriented using the Ace
	sampling bit or other type, whether core is	system.
	oriented and if so, by what method, etc).	•Reverse Circulation drilling using 5 ¼” face
		sampling bit; Schramm 610 with 1100cfm @
		450psi air.
Drill	• Method of recording and assessing core and	•Core recovery is measured using standard
sample	chip sample recoveries and results assessed.	procedures by orientating core and measuring
recovery	• Measures taken to maximise sample recovery	between core markers and comparing with
	and ensure representative nature of the	downhole depths by the drillers
	samples.	•Sample recoveries for RC drilling noted on Log
	• Whether a relationship exists between sample	sheet based on visual estimates as well as
	recovery and grade and whether sample bias	sample weight compared to theoretical weight
	may have occurred due to preferential	and checking sample loss through outside
	loss/gain of fine/coarse material.	return and sampling equipment
		•Reverse Circulation holes are collared with a
		well-fitting stuffing box, material to outside
		return minimised. Drilling is undertaken using
		auxiliary compressors and boosters to keep
		hole dry and lift the sample to the sampling
		equipment. Cyclone and sampling equipment is
		checked regularly and cleaned. Hole is flushed
		at end of each sample and end of rod.
		•No obvious relationship between sample
		recovery and grade
Logging	• Whether core and chip samples have been	•Logging is carried out by a geologist, using
	geologically andgeotechnically logged to a	CYU loggingsystem which has been

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Criteria	JORC Code explanation	Commentary
	level of detail to support appropriate Mineral	developed to accurately reflect the geology of
	Resource estimation, mining studies and	the area and mineralisation styles.
	metallurgical studies.	•Washed chip samples are logged on site using
	• Whether logging is qualitative or quantitative in	qualitative and descriptive terminology.
	nature. Core (or costean, channel, etc)	•Reverse Circulation logging is both qualitative
	photography.	and quantitative in nature and captures
	• The total length and percentage of the relevant	downhole depth, colour, lithology, texture,
	intersections logged.	alteration, sulphide type, sulphide percentage,
		structure.
		•Core logging also captures RQD, Recovery and
		orientated structures. Magnetic susceptibility
		also collected. Drill core is photographed.
		•All drill holes are logged in full
Sub-	• If core, whether cut or sawn and whether	•Diamond drill core split with diamond saw and
sampling	quarter, half or all core taken.	half core sampled on 1m intervals
techniques and sample preparation	• If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	•Riffle splitting of dry RC samples •Certified standards are included 1 in 40 samples
	• For all sample types, the nature, quality and	•Subsets of sample pulps sent to SGS for
	appropriateness of the sample preparation	external lab checks
	technique.	•Sample preparation methods appropriate to
	• Quality control procedures adopted for all sub-	exploration drilling
	sampling stages to maximise representivity of
	samples.
	• Measures taken to ensure that the sampling is
	representative of the in situ material collected,
	including for instance results for field
	duplicate/second-half sampling.
	• Whether sample sizes are appropriate to the
	grain size of the material being sampled.
Quality of	• The nature, quality and appropriateness of the	•Samples are hand delivered to the ALS
assay data	assaying and laboratory procedures used and	laboratory in Mount Isa for sample preparation
and	whether the technique is considered partial or	of fine crush, riffle split and pulverizing of 1kg to
laboratory	total.	85% < 75μm.
tests	• For geophysical tools, spectrometers, handheld	•Pulps are analysed by using method code ME-
	XRF instruments, etc, the parameters used in	ICP41, a 34 element determination using an
	determining the analysis including instrument	aqua-regia digestion with ICP-AES
	make and model, reading times, calibrations	determination and by fire assay for gold using a
	factors applied and their derivation, etc.	30g charge (method code AA-25)
	• Nature of quality control procedures adopted	•GBM® Standards are inserted in the sample
	(eg standards, blanks, duplicates, external	sequence at the rate of 1 in 20 samples.
	laboratory checks) and whether acceptable
	levels of accuracy (ie lack of bias) and
	precision have been established.
Verification	• The verification of significant intersections by	•No independent verification required at this
of	either independent or alternative company	stage
sampling and assaying	personnel. • The use of twinned holes. • Documentation of primary data, data entry	•Laboratory CSV files are merged with drill hole data files using unique sample numbers as the key.
	procedures, data verification, data storage	•No adjustments made to assay data
	(physical and electronic) protocols.
	• Discuss any adjustment to assay data.
Location of	• Accuracy and quality of surveys used to locate	•Drill holes are located using handheld GPS
data points	drill holes (collar and down-hole surveys),	receivers.
	trenches, mine workings and other locations	•UTM projection GDA94 Zone 54
	used in Mineral Resource estimation.	•Topographic control from handheld GPS survey
	• Specification of the grid system used.	using local differential control.

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Criteria	JORC Code explanation	Commentary
	• Quality and adequacy of topographic control.
Data	• Data spacing for reporting of Exploration	•Elaine Dorothy exploration drilling was
spacing	Results.	completed on 80m to 40m sections. Data
and distribution	• Whether the data spacing and distribution is sufficient to establish the degree of geological	spacing and distribution is sufficient to establish the degree of geological and grade continuity
	and grade continuity appropriate for the Mineral	appropriate for a Mineral Resource. Sample
	Resource and Ore Reserve estimation	intervals are composited to 5m lengths.
	procedure(s) and classifications applied.	•Jubilee and Blue Caesar exploration drilling at
	• Whether sample compositing has been	nominal 100m section spacing and 100m toe
	applied.	spacing. Too early for resource estimation. No
		compositing has been applied.
		•Initial drill testing of surface geochemistry at
		Native Companion and Brolga. Too early for
		resource estimation. No compositing has been
		applied.
Orientation	• Whether the orientation of sampling achieves	•Drill sections are transverse to the strike of the
of data in	unbiased sampling of possible structures and	outcrop.
relation to geological structure	the extent to which this is known, considering the deposit type. • If the relationship between the drilling	•No bias is believed to be introduced by the sampling method.
	orientation and the orientation of key
	mineralised structures is considered to have
	introduced a sampling bias, this should be
	assessed and reported if material.
Sample	• The measures taken to ensure sample	•Samples are hand delivered by CYU staff to the
security	security.	ALS laboratory in Mount Isa
Audits or	• The results of any audits or reviews of	•Internal review of methodology is undertaken
reviews	sampling techniques and data.	regularly by senior company personnel.

Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary	Commentary
Mineral	• Type, reference name/number, location and	•	The Quamby Project consists of
tenement and	ownership including agreements or material		+860km2under Earn-In agreements with
land tenure	issues with third parties such as joint		Altona Mining Ltd, Elementos Ltd and
status	ventures, partnerships, overriding royalties,		Mount Isa Mines Ltd.
	native title interests, historical sites,	•	There are no known impediments to
	wilderness or national park and environmental		exploration in the current area of
	settings.		operations.
	• The security of the tenure held at the time of
	reporting along with any known impediments
	to obtaining a licence to operate in the area.
Exploration	• Acknowledgment and appraisal of exploration	•	Surface soil and rock chip sampling
done by other	by other parties.		shown in the attached figures was
parties			conducted in the 1970’s, 1980’s and
			1990’s by companies including CRA
			Exploration Pty Ltd, Roebuck Resources
			NL, Carpentaria Exploration Company
			Pty Ltd, Clifford Minerals Ltd, Menzies
			Gold NL,Delta Gold Exploration PtyLtd,

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Criteria	JORC Code explanation	Commentary	Commentary
			Pimex Pty Ltd and Pancontinental Mining
			Limited.
		•	Regional airborne magnetic survey flown
			by Mount Isa Mines Pty Ltd in 1992
		•	Mount Isa Mines Pty Ltd completed a
			percussion drilling program at Native
			Companion in 1963 including 46 holes
			for 2,623 feet (799 metres) with the
			deepest holes being 93 feet deep (i.e. 28
			metres). Drilling was completed on a
			local grid and accurate location of drill
			collars has not been determined
		•	Elaine was previously drill tested by
			various companies including Mineral
			Ventures Ltd (11 diamond drill holes for
			738 metres) in 1955, Mary Kathleen
			Uranium Ltd 7 diamond holes and 12
			reverse circulation holes for 3,107
			metres) in the late 1970’s and early
			1980’s and Goldsearch (7 reverse
			circulation holes for 959m) in 2006.
Geology	• Deposit type, geological setting and style of	•	The Elaine Dorothy and Blue Caesar
	mineralisation.		mineralisation is shear-hosted copper-
			gold-rare earth mineralisation within an
			extensive zone of skarn alteration.
		•	The Jubilee mineralisation is localised
			within a north trending quartz shear.
		•	Native Companion and Brolga
			mineralisation occurs as metasomatic
			replacement in structurally controlled
			zones related to major regional
			structures. The closest example of this
			style of mineralisation is the Roseby
			Deposit, located north of Native
			Companion.
		•	The Oliver Twist, Round Mount NW &
			SE, The Tub and Campbell’s prospect
			are hosted in red rock-magnetite altered
			calc-silicates of the Corella Formation
			associated with major shear zones. The
			mineralisation style is Iron-Oxide Copper
			Gold (IOCG). The closest example of this
			style is the Ernest Henry Deposit to the
			north of Cloncurry.
Drill hole	• A summary of all information material to the	•	See Collar Table below
Information	understanding of the exploration results
	including a tabulation of the following
	information for all Material 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.

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Criteria	JORC Code explanation	Commentary	Commentary
	• 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	• In reporting Exploration Results, weighting	•	Summary intersections are length
aggregation	averaging techniques, maximum and/or		weighted averages of assay data using
methods	minimum grade truncations (eg cutting of high		nominal 1000ppm Cu cut offs.
	grades) and cut-off grades are usually
	Material and should be stated.
	• Where aggregate intercepts incorporate short
	lengths of high grade results and longer
	lengths of low grade results, the procedure
	used for such aggregation should be stated
	and some typical 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	•	The Elaine Dorothy mineralisation strikes
between	in the reporting of Exploration Results.		at 30oazimuth with a steep southeast
mineralisation widths and intercept lengths	• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole		dip. Drill holes have typically been drilled towards the northwest and north, generally at 60-75oto intersect the mineralisation at 30-50o
	lengths are reported, there should be a clear	•	Drill holes testing the Blue Caesar,
	statement to this effect (eg ‘down hole length,		Jubilee, Native Companion and Brolga
	true width not known’).		are believed to be transverse to mineral
			trends and almost perpendicular to dip
Diagrams	• Appropriate maps and sections (with scales)	•	Refer to the release.
	and 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	•	All holes which have been drilled at the
reporting	Exploration Results is not practicable,		relevant prospects are shown on the
	representative reporting of both low and high		attached figures.
	grades and/or widths should be practiced to	•	All compiled rock chip sampling is shown
	avoid misleading reporting of Exploration		on the attached figures and significant
	Results.		results are highlighted.
		•	Similarly soil sampling undertaken at
			Elaine Dorothy, Blue Caesar, Jubilee,
			Native Companion and Brolga are shown
			in their entirety.
Other	• Other exploration data, if meaningful and	•	Refer to the release.
substantive	material, should be reported including (but not
exploration	limited to): geological observations;
data	geophysical survey results; geochemical
	survey results; bulk samples – size and
	method of treatment; metallurgical test
	results; bulk density, groundwater,
	geotechnical and rock characteristics;
	potential deleterious or contaminating
	substances.

13

Criteria	JORC Code explanation	Commentary	Commentary
Further work	• The nature and scale of planned further work	•	Soil sampling of the southern portion of
	(eg tests for lateral extensions or depth		the Native Companion-Brolga trend,
	extensions or large-scale step-out drilling).		extensions to the Jubilee and Elaine-
	• Diagrams clearly highlighting the areas of		Dorothy trend and various IOCG targets.
	possible extensions, including the main	•	IP geophysical survey for Native
	geological interpretations and future drilling		Companion-Brolga area
	areas, provided this information is not	•	Follow-up drilling for Native Companion,
	commercially sensitive.		Brolga, Elaine-Dorothy and Blue Caesar
			is planned for 2015.

14

Drill Hole Collar Data

Hole ID	Prospect	East (GDA94 Zone 54)	North (GDA94 Zone 54)	RL	Collar Azi (GDA94 Zone 54)	Collar Dip	Total Depth (m)
ED001	Elaine	398341.6	7699385.6	425.6	0	-90	61.00
ED002	Elaine	398313.0	7699405.0	417.7	0	-90	68.00
ED003	Elaine	398294.0	7699426.0	417.0	0	-90	106.00
ED004	Elaine	398295.5	7699399.0	414.7	0	-90	39.00
ED005	Elaine	398348.0	7699406.0	426.7	166	-60	49.00
ED006	Elaine	398922.0	7698912.2	415.3	205	-60	64.00
ED007	Elaine	398903.2	7698919.2	415.2	205	-60	35.00
ED008	Elaine	399027.5	7698811.2	419.8	205	-60	72.00
ED009	Elaine	399142.2	7698508.5	451.6	205	-60	46.00
ED010	Elaine	399259.0	7698535.9	433.3	205	-60	76.00
ED011	Elaine	398261.0	7699435.0	415.0	0	-90	122.00
ED012	Elaine	398286.2	7699519.0	442.8	177	-73	272.50
ED013	Elaine	398332.5	7699471.4	430.9	177	-70	166.00
ED014	Elaine	398232.0	7699515.0	444.0	177	-75	212.00
ED015	Elaine	398899.4	7698962.7	422.7	205	-56	160.00
ED016	Elaine	398186.0	7699530.6	448.1	177	-49	187.40
ED017	Elaine	398185.9	7699530.8	448.5	177	-75	274.90
ED018	Elaine	398228.7	7699569.1	449.0	177	-84	322.50
EP001	Elaine	398128.7	7699488.0	417.6	177	-70	184.00
EP002	Elaine	398956.4	7698729.3	459.9	0	-90	100.00
EP003	Elaine	398933.8	7698648.3	447.7	25	-60	140.00
EP004	Elaine	398053.4	7699539.3	388.7	177	-70	130.00
EP005	Elaine	399294.7	7698550.7	432.3	205	-65	146.00
EP006	Elaine	399025.2	7698625.6	452.5	0	-90	100.00
EP007	Elaine	399057.6	7698512.9	446.1	231	-70	122.00
EP008	Elaine	399102.0	7698638.5	448.0	205	-80	100.00
EP009	Elaine	398955.2	7698790.4	445.8	0	-90	100.00
EP010	Elaine	398692.1	7698932.8	432.1	0	-90	110.00
EP011	Elaine	399019.7	7698863.0	414.9	205	-60	120.00
EP012	Elaine	398946.6	7698963.2	405.3	205	-60	160.00
MKBC001	Blue Caesar	397696.0	7700002.0	383.0	221	-60	216.36
MKBC002	Blue Caesar	397644.0	7700097.0	381.0	216	-60	234.34
MKBC003	Blue Caesar	397749.0	7700009.0	380.0	85	-60	200.29
MKBC004	Blue Caesar	397651.0	7700100.0	0.0	0	-90	197.80
MKBC005	Blue Caesar	397646.0	7700102.0	0.0	265	-60	225.31
MKBC006	Blue Caesar	397769.0	7700094.0	402.0	221	-60	258.12
MKBC007	Blue Caesar	397318.0	7699926.0	370.0	22	-60	189.22
MKBC008	Blue Caesar	397457.0	7700240.0	384.0	221	-60	213.36

15

Hole ID	Prospect	East (GDA94 Zone 54)	North (GDA94 Zone 54)	RL	Collar Azi (GDA94 Zone 54)	Collar Dip	Total Depth (m)
MKED001	Elaine	398259.1	7699443.8	416.5	0	-90	133.69
MKED002	Elaine	398296.3	7699436.8	417.7	0	-90	125.60
MKED003	Elaine	398315.7	7699399.3	418.9	0	-90	75.60
MKED004	Elaine	398054.3	7699540.1	388.4	177	-70	207.80
MKED005	Elaine	398228.3	7699522.1	444.8	177	-75	267.10
MKED006	Elaine	398189.9	7699536.6	449.1	177	-60	299.90
MKED007	Elaine	398201.9	7699551.0	450.0	332	-75	825.90
MKED008	Elaine	398127.0	7699502.0	418.0	325.5	-60	604.60
MKED009	Elaine	398122.9	7699506.3	417.9	10	-56	657.40
MKED010	Elaine	398122.6	7699504.7	417.8	7	-66	528.75
MKED011	Elaine	398055.2	7699622.2	388.3	3	-67	531.30
MKED012	Elaine	398095.0	7699705.0	387.0	350	-66	14.80
MKED013	Elaine	398096.1	7699707.5	385.3	350	-66	339.60
MKED014	Elaine	398149.1	7699719.2	384.9	1	-70	420.50
MKED015	Elaine	397965.3	7699618.9	370.6	358	-60	438.30
MKED016	Elaine	398055.3	7699618.1	388.2	306	-75	762.40
MKED017	Elaine	398225.0	7699570.0	450.0	354	-60	7.90
MKED018	Elaine	398227.6	7699572.8	449.3	354	-60	735.30
MKED019	Elaine	398119.6	7699444.8	408.6	334	-69	822.70
MKED020	Elaine	398235.2	7699530.8	445.3	338	-70	474.50
MKED021	Elaine	398499.7	7699638.1	389.7	295	-60	711.80
MKED022	Elaine	398491.4	7699650.8	390.2	312	-62	725.90
MKED023	Elaine	398225.3	7699571.0	449.3	328	-73	891.70
MKED024	Elaine 2	399012.1	7698873.6	423.0	205	-60	150.60
MKED025	Elaine 3	399262.8	7698526.8	441.0	0	-90	114.80
MKED026	Elaine	398055.7	7699618.4	388.3	310	-60	294.60
MKED027	Elaine 2	398962.0	7698719.0	465.0	0	-90	114.60
MKED028	Elaine	398695.0	7698938.0	446.0	180	-60	156.40
MKED029	Elaine	398122.5	7699440.1	408.9	285	-70	633.80
MKED030	Elaine	399265.0	7698884.0	466.0	236	-60	189.40
MKED031	Elaine	398121.3	7699438.8	408.9	270.5	-50	329.80
MKED032	Elaine	398105.0	7699475.3	411.7	290	-65	16.80
MKED033	Elaine	398105.5	7699475.1	411.7	290	-65	18.50
MKED034	Elaine	398107.1	7699475.2	411.7	305	-65	432.30
MKED035	Elaine 2	398537.0	7698740.0	404.0	296	-60	169.20
MKED036	Elaine	398095.0	7699705.0	385.0	6	-90	896.98
MKRC001	Elaine	398344.7	7699413.4	426.7	210	-60	132.00
MKRC002	Elaine	398344.9	7699414.9	426.6	226	-80	138.00
MKRC003	Elaine	398346.2	7699444.9	427.9	250	-60	132.00

16

Hole ID	Prospect	East (GDA94 Zone 54)	North (GDA94 Zone 54)	RL	Collar Azi (GDA94 Zone 54)	Collar Dip	Total Depth (m)
MKRC004	Elaine	398344.3	7699443.9	427.0	236	-70	126.00
MKRC005	Elaine	398493.8	7699290.5	403.3	216	-60	96.00
MKRC029	Elaine	398284.8	7699554.0	447.6	179.4	-80	300.00
MKWB001	Elaine	398415.3	7699779.0	386.1	0	-90	35.00
Q-018	Blue Caesar	397602.0	7700191.0	384.0	237	-59.05	106.00
Q-019	Jubilee	396680.0	7700037.0	356.0	71	-60.36	70.00
Q-020	Jubilee	396649.0	7700031.0	364.0	70	-60.12	112.00
Q-021	Blue Caesar	397682.0	7700221.0	377.0	256	-70	145.00
Q-022	Blue Caesar	397766.0	7700113.0	394.0	256	-80	162.00
Q-023	Jubilee	396604.0	7700230.0	375.0	76	-60	90.00
Q-024	Jubilee	396567.0	7700224.0	359.0	76	-60	144.00
Q-025	Jubilee	396634.0	7700135.0	370.0	76	-60	90.00
Q-026	Jubilee	396599.0	7700126.0	366.0	76	-60	138.00
Q-027	Jubilee	396617.0	7700025.0	358.0	76	-60	144.00
Q-028	Jubilee	396634.0	7699927.0	366.0	75	-60	108.00
Q-029	Jubilee	396596.0	7699925.0	363.0	76	-60	129.00
Q-030	Jubilee	396643.0	7699839.0	348.0	75	-60	108.00
Q-031	Jubilee	396608.0	7699838.0	348.0	74	-60	174.00
Q-032	Native Companion	413730.0	7741854.0	202.0	86	-60	106.00
Q-033	Native Companion	413833.0	7741344.0	201.0	276	-60	90.00
Q-034	Native Companion	414003.0	7741204.0	210.0	271	-60	102.00
Q-035	Native Companion	413615.0	7740188.0	211.0	259	-60	138.00
Q-036	Brolga	413700.0	7736748.0	227.0	87	-60	102.00
Q-037	Brolga	414034.0	7736754.0	233.0	86	-60	96.00
Q-038	Jubilee	396479.0	7700209.0	351.0	76	-60	180.00
Q-039	Jubilee	396575.0	7700019.0	361.0	76	-60	276.00
Q-040	Jubilee	396575.0	7700019.0	361.0	76	-60	204.00
Q-041	Jubilee	396536.0	7700016.0	347.0	76	-65	318.00
Q-042	Jubilee	396564.0	7699835.0	349.0	76	-60	270.00
Q-043	Jubilee	396533.0	7699822.0	354.0	77	-57	354.00
Q-044	Jubilee	396562.0	7699920.0	343.0	77	-60	204.00
Q-045	Jubilee	396561.0	7700120.0	373.0	78	-55	172.00

17