AUSQUEST LIMITED — Management Reports 2015

May 13, 2015

May 14[th] 2015 ASX Release

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NEW 30KM GOLD TREND DISCOVERED IN WEST AFRICA

Initial drilling by SEMAFO commences to test major new gold anomaly within the Banfora Gold Joint Venture in Burkina Faso – assays awaited

AusQuest Limited (ASX: AQD) is pleased to advise that its joint venture partner at the Banfora Joint Venture Project in Burkina Faso, West Africa, SEMAFO INC., has reported the discovery of a significant new gold target, a 30km long auger gold anomaly known as the Mouro Trend.

The results were included in the attached report which was released overnight by SEMAFO as part of their Quarterly Report to the Toronto Stock Exchange (TSX).

SEMAFO also advised in the report that Reverse Circulation (RC) drilling of gold auger anomalies along the Mouro Trend has commenced with assay results awaited.

The Banfora Joint Venture Agreement provides Ressources Burkinor, a wholly-owned subsidiary of SEMAFO INC., with the right to earn up to an 80% interest in all the Banfora permits by spending a total of US$7.5 million over a three-year period commencing 1[st] May 2014.

At the end of 2014, Burkinor reported that it had spent approximately US$1.8 million on the joint venture with plans to spend up to a further US$5.6 million in 2015. A major proportion of these funds will be used for RC drilling to test gold targets defined by auger sampling programs.

The Board of AusQuest is highly encouraged by these auger results along the Mouro Trend and looks forward to reporting RC drilling results once they become available.

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Graeme Drew Managing Director

FORWARD LOOKING STATEMENT

This report contains forward looking statements concerning the projects owned by AusQuest Limited. Statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates based on specific assumptions. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward looking statements are based on management’s beliefs, opinions and estimates as of the dates the forward looking statements are made and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

AusQuest Limited 8 Kearns Crescent Ardross WA 6153 (T): 08 9364 3866 (F): 08 9364 4892 www.ausquest.com.au

Management’s Discussion and Analysis

Other Exploration

Exploration – Banfora Property, Burkina Faso

In 2014, we acquired an extensive exploration land holding in the Banfora Gold Belt situated some 200 kilometers south west of Mana through the signature of farm-in agreements on ten permits and the acquisition of five permits. The 15 permits cover a total surface area of 1,600 square kilometers. Under the terms of the agreements signed with junior exploration companies, we have three-year working rights and the option to earn interest up to 90% in the farm-in permits of Banfora.

We have assigned an initial exploration budget of $6 million to pursue exploration activities on the Banfora properties in 2015. The 140,000-meter auger drill program, which will be carried out over a 400 meter by 25 meter grid, is focusing on the east margin of the Banfora Greenstone Belt, notably on the Mouro Shear trend containing the Mouro South gold workings. Four auger drills are currently in operation on the Yeya I permit and in the north on the Kapogouan, Kongoroba and Dabokuy permits on the Mouro Shear trend.

The 2015 RC drilling program is designed to follow up on gold anomalies identified in the 2014 auger drill program on five permits. In the first quarter, a total of 9,487 meters of RC drilling was completed in 63 holes on the Tondura permit in the south west and on the Kapogouan permit on the Mouro Shear trend. One RC drill rig remains active on the Kapogouan permit. Assay results for the RC holes remain pending.

Banfora Reveals a 30-Kilometer Geochemical Anomaly Trend

Exploration work conducted at Banfora in the first quarter of 2015 was mainly carried out on a property under farm-in agreement with AusQuest Limited and primarily focused on the northeast (NE) group of permits that track the eastern edge of the Banfora Greenstone Belt. As shown in Figure 1, auger sampling results have identified a major NE trending anomaly over a strike length of more than 30 kilometers. The trend, dubbed the Mouro Trend, appears to follow the eastern edge of the belt at the contact with various felsic to intermediate intrusive rocks, and related east-northeast trending splays appear to occur along the main trend. Towards the south, a north-south trending anomalous trend is observed, which also corresponds to a change in the direction of the contact between the granitic intrusive and the sediments. A regional scale deformation zone associated with this contact has also been mapped.

RC drilling along the Mouro Trend commenced on March 1, 2015. To date, 30 holes along two sections (200 meters apart) have been drilled immediately below the artisanal mining area with all assays pending.

We plan to continue drilling along the corridor and its associated splays in order to better understand the controls of the mineralization and identify the most promising areas for follow-up.

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Management’s Discussion and Analysis

Other Exploration (continued)

Exploration – Banfora Property, Burkina Faso (continued)

Figure 1 – Banfora Property

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2

JORC Code, 2012 Edition – Table 1 Auger Sampling Banfora JV (Burkina Faso) Section 1 Sampling Techniques and Data

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

Criteria	JORC Code explanation	Commentary
Sampling	 Nature and quality of sampling (eg cut channels, random chips, or specific	Auger sampling comprised the collection of two
techniques	specialised industry standard measurement tools appropriate to the minerals	samples – a 2 metre interface laterite-saprolite
	under investigation, such as down hole gamma sondes, or handheld XRF	sample and a 2 metre saprolite sample near the
	instruments, etc). These examples should not be taken as limiting the broad	bottom of the hole.
	meaning of sampling.	Auger hole locations are recorded by hand-held
	 Include reference to measures taken to ensure sample representivity and the	GPS.
	appropriate calibration of any measurement tools or systems used.	Auger sampling was carried out on linear traverses
	 Aspects of the determination of mineralisation that are Material to the Public	400m apart with holes spaced at 25m intervals.
	Report.	The auger samples are logged by a geologist and
	 In cases where ‘industry standard’ work has been done this would be relatively	entered into a sampling book or onto a sampling
	simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from	sheet.
	which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other
	cases more explanation may be required, such as where there is coarse gold
	that has inherent sampling problems. Unusual commodities or mineralisation
	types (eg submarine nodules) may warrant disclosure of detailed information.
Drilling techniques	 Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger,	Auger drilling used a motorized rig on the back of a
	Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth	small 4WD vehicle.
	of diamond tails, face-sampling bit or other type, whether core is oriented and if	Hole depths varied from ~6 to 8 metres.
	_so, by what method, etc). _
Drill sample	 Method of recording and assessing core and chip sample recoveries and results	High recovery of samples was achieved at all sites.
recovery	assessed.	All samples were reduced to 1kgm in size through
	 Measures taken to maximise sample recovery and ensure representative nature	controlled sample splitting.
	of the samples.	Samples are considered representative for the
	 Whether a relationship exists between sample recovery and grade and whether	materials sampled
	sample bias may have occurred due to preferential loss/gain of fine/coarse
	material.
Logging	 Whether core and chip samples have been geologically and geotechnically	Each auger hole was geologically logged for rock
	logged to a level of detail to support appropriate Mineral Resource estimation,	type from the bottom of the hole.
	mining studies and metallurgical studies.
	 Whether logging is qualitative or quantitative in nature. Core (or costean,
	channel, etc) photography.
	 The total length andpercentage of the relevant intersections logged.

Criteria	JORC Code explanation	JORC Code explanation	Commentary
Sub-sampling		If core, whether cut or sawn and whether quarter, half or all core taken.	All samples were dry samples.
techniques and		If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled	Sample sizes (1kg) are considered appropriate for
sample preparation		wet or dry.	the sample type.
		For all sample types, the nature, quality and appropriateness of the sample	Sample reduction was done via sample splitting to
		preparation technique.	make samples as representative as possible.
		Quality control procedures adopted for all sub-sampling stages to maximise	Two samples – a 2 metre interface laterite-saprolite
		representivity of samples.	sample and a 2 metre saprolite sample near the
		Measures taken to ensure that the sampling is representative of the in situ	bottom of the hole were generally collected at each
		material collected, including for instance results for field duplicate/second-half	site.
		sampling.	No sub-sampling was undertaken.
		Whether sample sizes are appropriate to the grain size of the material being
		_sampled. _
Quality of assay		The nature, quality and appropriateness of the assaying and laboratory	Auger samples were crushed and pulverized to 85%
data and		procedures used and whether the technique is considered partial or total.	minus 75 microns, then trace level gold was
laboratory tests		For geophysical tools, spectrometers, handheld XRF instruments, etc, the	determined by cyanide leach extraction with an AAS
		parameters used in determining the analysis including instrument make and	finish.
		model, reading times, calibrations factors applied and their derivation, etc.	Standard laboratory QAQC controls were applied
		Nature of quality control procedures adopted (eg standards, blanks, duplicates,	with data reviewed but Burkina geologists for all
		external laboratory checks) and whether acceptable levels of accuracy (ie lack of	assay jobs.
		_bias) and precision have been established. _
Verification of		The verification of significant intersections by either independent or alternative	Auger sampling locations are compiled into Excel
sampling and		company personnel.	spreadsheets for merging with assay data when it
assaying		The use of twinned holes.	becomes available.
		Documentation of primary data, data entry procedures, data verification, data	Digital data is regularly backed-up.
		storage (physical and electronic) protocols.	No adjustment has been made to assay data.
		_Discuss any adjustment to assay data. _
Location of data		Accuracy and quality of surveys used to locate drill holes (collar and down-hole	Auger sample sites are located with GPS to within 5
points		surveys), trenches, mine workings and other locations used in Mineral Resource	metres accuracy.
		estimation.
		Specification of the grid system used.
		Quality and adequacy of topographic control.
Data spacing and		Data spacing for reporting of Exploration Results.	Auger sampling was undertaken on a 400m x 25m
distribution		Whether the data spacing and distribution is sufficient to establish the degree of	grid with infill to 200m in selected areas.
		geological and grade continuity appropriate for the Mineral Resource and Ore	This spacing is considered adequate for the type of
		Reserve estimation procedure(s) and classifications applied.	program completed.
		_Whether sample compositing has been applied. _
Orientation of data		Whether the orientation of sampling achieves unbiased sampling of possible	Sampling on a 400m x 25m grid provides greater
in relation to		_structures and the extent to which this is known, considering the deposit type. _	coverage alongthe strike of features targeted.

Criteria	JORC Code explanation	Commentary
geological	 If the relationship between the drilling orientation and the orientation of key	Auger sample lines were oriented across the strike
structure	mineralised structures is considered to have introduced a sampling bias, this	of the expected mineralization.
	should be assessed and reported if material.
Sample security	 The measures taken to ensure sample security.	Samples are securely tied/sealed in the field,
		followed by packing into larger sealed plastic bags
		for transport to the laboratory.
Audits or reviews	 The results of any audits or reviews of sampling techniques and data.	No audits or reviews have been carried out on the
		sampling to date.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	Commentary
Mineral tenement	 Type, reference name/number, location and ownership including agreements or	The Banfora project is located in south western
and land tenure	material issues with third parties such as joint ventures, partnerships, overriding	Burkina Faso approximately 500km south west of
status	royalties, native title interests, historical sites, wilderness or national park and	Ouagadougou.
	environmental settings.	The Banfora project comprises 9 granted exploration
	 The security of the tenure held at the time of reporting along with any known	Permits.
	impediments to obtaining a licence to operate in the area.	The tenements are held 100% by AusQuest Limited
		but they are subject to a Farm-In and Joint Venture
		Agreement with Burkinor SARL who can earn up to
		80% equity by spending US$7.5 million in 3 years.
Exploration done	 Acknowledgment and appraisal of exploration by other parties.	Previous exploration in the area consisting of
by other parties		surface sampling for gold has been compiled by
		AusQuest and has been used to assist with
		exploration program planning.
Geology	 Deposit type, geological setting and style of mineralisation.	The deposit style being explored for is structurally
		controlled gold within the Birimian Greenstone Belts
		of West Africa.
Drill hole	 A summary of all information material to the understanding of the exploration	Auger drillholes were vertical with depths ranging
Information	results including a tabulation of the following information for all Material drill	from ~5 to 8 metres.
	holes:	The location of the auger grids is presented in
	o easting and northing of the drill hole collar	AusQuest’s September 2014 Quarterly Report.
	o elevation or RL (Reduced Level – elevation above sea level in metres) of the	Significant results are shown as trends on the plans
	drill hole collar	presented in theQuarterlyreport as determined by

Criteria	JORC Code explanation	Commentary
	o dip and azimuth of the hole	qualified Burkinor geologists.
	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 techniques, maximum	No weighting or assay cutting has been applied to
methods	and/or minimum grade truncations (eg cutting of high grades) and cut-off grades	the data.
	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 in the reporting of Exploration	Auger sampling results are in essence surface
between	Results.	sampling results – no relationship with mineralization
mineralisation	 If the geometry of the mineralisation with respect to the drill hole angle is known,	is known.
widths and	its nature should be reported.
intercept lengths	 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 tabulations of intercepts should	Locations of auger sampling grids are provided in
	be included for any significant discovery being reported These should include,	the attached announcement.
	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 Results is not practicable,	All significant gold trends are reported and shown on
	representative reporting of both low and high grades and/or widths should be	the plans in the release.
	_practiced to avoid misleading reporting of Exploration Results. _
Other substantive	 Other exploration data, if meaningful and material, should be reported including	The areas were selected for auger drilling based on
exploration data	(but not limited to): geological observations; geophysical survey results;	geological and geophysical data interpretations by
	geochemical survey results; bulk samples – size and method of treatment;	Burkinor.
	metallurgical test results; bulk density, groundwater, geotechnical and rock
	_characteristics; potential deleterious or contaminating substances. _
Further work	 The nature and scale of planned further work (eg tests for lateral extensions or	Proposals of further work will depend on an analysis
	depth extensions or large-scale step-out drilling).	of the data by Burkinor.
	 Diagrams clearly highlighting the areas of possible extensions, including the
	main geological interpretations and future drilling areas, provided this information
	_is not commercially sensitive. _