BOSS ENERGY LTD — Capital/Financing Update 2014

Dec 1, 2014

ASX Announcement 2 December 2014

Exploration Pipeline Update

Multiple new large scale geochemical targets identified with up to 8.53g/t gold at the Hounde Belt Joint Venture, Burkina Faso

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Hounde Belt, Golden Hill Project - Boss Joint Venture

• Soil geochemical program identifies new high priority drill ready targets.

• Results define multiple +1g/t gold & up to 8.53g/t gold in soils.

• New targets include:

• Ma West Prospect: +6,000 metre gold soil anomaly with up to 8.53g/t gold and major artisanal workings.

• Peksou North Prospect: +800 metre gold soil anomaly at +0.5g/t, including up to 3.07g/t gold.

Advancing the 3.6 Moz Banfora Gold Project, Burkina Faso[1]

• High tenor stream sediment BLEG sampling identifies new areas for follow up work.

• Rock chips taken during geological mapping include 9.62g/t, 8.27g/t, 6.34g/t gold.

Gourma Project – Boss Joint Venture

Funding:

• Initial field work completed including stream sediment BLEG sampling to identify areas for follow up work. Further low cost field work will commence in the coming weeks targeting these initial areas identified.

On-track in 2014 :

• Mine permitting 

• Debt mandate   Feasibility study  

Cote d’Ivoire Projects expanded:

• Granting of a second new 400 km[2] tenement in North West Côte d’Ivoire. Initial BLEG stream district exploration commenced.

Gryphon Minerals Limited (ASX: GRY) is pleased to provide an update on its West African exploration activities. The Company is continuing with a low cost, value-add exploration approach which will enhance its future growth and development pipeline while it simultaneously advances its flagship Banfora Gold Project towards mine development.

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Steve Parsons, Managing Director of Gryphon Minerals said “The tenor and extent of the gold mineralisation at the Golden Hill Project, defined by our new low cost geochemical surveys and field mapping, is extremely encouraging.

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The Hounde Belt is one of the most prospective areas in West Africa and our small, skilled and experienced exploration team is quickly and efficiently locating new and exciting high quality prospects. These will be better defined and prioritised for drill testing in the coming months”.

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2 December 2014

Burkina Faso Earn-In Joint Venture – Golden Hill & Gourma Projects

Gryphon Minerals and Boss Resources Limited (ASX: BOE) completed an agreement to establish a joint venture principally over the Golden Hill and Gourma gold projects located in Burkina Faso, totalling over 1,500 km[2] (refer to ASX announcements dated 05/03/14 and 04/07/14).

Gryphon Minerals is applying proven low-cost exploration techniques to explore the tenure. A review of past work has been completed, new high resolution satellite imagery acquired and processed in-house and relatively high density (>1 sample per ~6 km[2 ] ) drainage sampling, supplemented by laterite sampling, where appropriate, has been completed across all joint venture projects.

This strategy is expected to fast track targeting across the exploration licences as it will direct drilling to those areas most likely to deliver a significant discovery and enable the company to confidently drop ground where appropriate geochemical techniques have been applied and the results are negative.

Golden Hill Project

The Golden Hill project is the most advanced of all the projects in the joint venture and it is considered particularly prospective as it is located within the highly mineralised Hounde Greenstone Belt. This belt hosts the majority of the high grade discovered gold ounces in Burkina Faso, including Semafo’s (TSX, OMF: SMF) recently discovered Siou Deposit (reserves of 769 koz @ 4.94 g/t gold) plus the high grade Yaramoko deposit owned by Roxgold (TSX.V: ROG) (790 koz @ 17.1 g/t Gold). The belt also hosts Semafo’s Mana Mine (6 Moz) and Endeavour Mining’s Vindaloo deposit (TSX: EDV; ASX: EVR); 2Moz @ 2.0 g/t (Figure 1). The Golden Hill project straddles the same structure and stratigraphy that host these high grade deposits.

Figure 1: Golden Hill Project Location

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2 December 2014

A number of useful baseline datasets have been collected over the property by Boss Resources and previous explorers, who identified and undertook the initial drill campaigns on some, but not all, of the prospects (refer to ASX announcement dated 05/03/14 for significant past intercepts).

Work by Gryphon Minerals to date includes prospect mapping, rock chip and drainage sampling (50 and 119 samples respectively) and soil sampling (3506 samples) across seven prioritised areas. The results included 28 soil samples exceeding 1g/t Au to a peak of 8.53g/t Au and a further 29 samples between 500 – 1,000 ppb Au. The results have confirmed some of the work completed by the former explorers, whilst also delineating 5 new prospects, namely, Peksou North, Ma West, Didro, Nahirindro and Nabele NE.

BLEG stream sediment sampling has also been completed across the project, collecting samples at an average density of approximately 1 sample per 5 km[2] . This returned some highly anomalous results exceeding 100 ppb Au, compared to a background value of around 2 ppb Au. The tenor of the anomalism is very high adding confidence to the hypothesis that this is significantly mineralised terrain. This high precision multi-element geochemical data compliments the existing datasets and has fulfilled its objectives of allowing the company to confirm where to focus its efforts and where little or no work is warranted.

Figure 2: Golden Hill Project: New significant prospects

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2 December 2014

Figure 3: Ma West: New major gold in soil anomaly and artisanal workings.

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Figure 4. Peksou North: New strong gold in soil anomaly.

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2 December 2014

Gourma Gold Project

The Gourma Project is located within the Fada N'Gourma Greenstone Belt, 250km east of Ouagadougou and only 80 km south, south west of Niger's largest gold deposit, the 50,000 ounce per annum Samira Hill gold mine (1.9 million ounce project). The Project consists of four contiguous permits (Diabatou, Tyara, Foutouri and Boutouanou) that cover a total area of 850 km². It is accessible from the south off the Fada N'GourmaKantchari highway via a well maintained gravel road and from the west via a gravel road from the town of Gayeri.

The Gourma Project covers a highly under-explored sequence of Birimian greenstones that host abundant artisanal workings within strike of extensive regional shear zones.

There are several significant gold targets that are currently being geologically reviewed by the company. The Tambiga Hill prospect contains over 1,000 artisanal pits and shafts up to 60 metres deep that cover an area 500 x 250 metres. This area has never been drilled. At the Diabatou prospect active hard rock and eluvial workings cover an area of 1,600 x 400 metres while at the nearby Gariaga Prospect artisanal workings cover an area of 1,300 x 800 metres.

Work by Gryphon Minerals to date includes detailed BLEG stream sampling and selective lateritic lag sampling in areas deemed appropriate. Multi-element drainage and laterite sample assays are presently being reviewed and interpreted. High resolution (50 cm) satellite imagery has been shot and processed in-house and used to map artisanal gold workings and to identify areas of outcrop. Field mapping and site visits to the workings has been planned, with further mapping and sampling to begin now that the wet season has concluded and field conditions allow access.

Côte d’Ivoire Exploration

The company has two new 400 km[2] tenements covering prospective terrain in North West Côte d’Ivoire. The Odienne Permit straddles the Sassandra Fault close to the margin of the Birimian and Man Shields with a mix of granite and greenstone lithologies which extend north into Southern Mali. A reconnaissance exploration programme consisting of detailed BLEG stream sampling (approximately 1 sample per 4 km[2] ) and reconnaissance geological mapping is in progress with results expected in the first quarter of 2015.

The company has entered into an option to joint venture three permits in Côte d’Ivoire with a local company. Two permits have been granted and these are presently being BLEG stream sampled ahead of any decision to enter into the joint venture.

Detailed information on all aspects of Gryphons’ projects can be found on the Company’s website www.gryphonminerals.com.au.

Yours faithfully

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Steve Parsons Managing Director

www.gryphonminerals.com.au

2 December 2014

The information in this report that relates to the Exploration Results at the Golden Hill Project, Burkina Faso, is based on and fairly represents information which has been compiled by Mr Sam Brooks who is a member of the Australian Institute of Geoscientists. Mr Brooks has sufficient experience relevant to the styles 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 Brooks is a full time employee of Gryphon Minerals and has consented to the inclusion of the matters in this report based on his information in the form and context in which it appears. Mr Brooks holds a minor interest in the securities of Gryphon Minerals Ltd.

Footnotes

1 For more information on the 3.6Moz Resource estimate, refer to ASX announcement dated 4 February 2014. Gryphon Minerals is not aware of any new information or data that materially effects the information included in the said announcement.

• 2 Refer to September 2014 quarterly activities report released to the ASX on 23 October 2014.

3 Availability of the Project Loan Facilities is subject to due diligence, credit approval, entering into documentation and satisfaction of conditions precedent.

Figure 5: Gryphon Minerals West Africa Projects

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2 December 2014

Appendix 1: Tables for JORC 2012

Section 1: Sampling Techniques and Data

Criteria	JORC Code explanation	JORC Code explanation		Commentary
Sampling		Nature and quality of sampling (eg cut channels, random chips,		The announcement contains reference to soil sampling (3,506
techniques		or specific specialised industry standard measurement tools		samples), Soil samples were routinely collected from a depth of 5 -
		appropriate to the minerals under investigation, such as down		30 cm with laterite sampling conducted where appropriate. Rock
		hole gamma sondes, or handheld XRF instruments, etc). These		chip grab samples (50 samples) were collected as grab samples of
		examples should not be taken as limiting the broad meaning of		visibly mineralized rocks and BLEG drainage samples (119
		sampling.		samples) were sampled from creeks and drainages in the project
				area consisting of silt and clay.
		Include reference to measures taken to ensure sample		Field duplicates were routinely collected for both the BLEG and soil
		representivity and the appropriate calibration of any		samples at a rate of 1/20 samples. Rock chip grabs are designed
		measurement tools or systems used.		to test for the presence of mineralization and are not
				representative.
		Aspects of the determination of mineralisation that are Material		Not applicable to BLEG and soil sampling.
		to the Public Report.
		In cases where ‘industry standard’ work has been done this
		would be relatively simple (eg ‘reverse circulation drilling was
		used to obtain 1 m samples from 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		Drill type (eg core, reverse circulation, open-hole hammer,		Not applicable to BLEG and soil sampling.
techniques		rotary air blast, auger, Bangka, sonic, etc) and details (eg core
		diameter, triple or standard tube, depth of diamond tails, face-
		sampling bit or other type, whether core is oriented and if so, by
		what method, etc).
Drill sample		Method of recording and assessing core and chip sample		Not applicable to BLEG and soil sampling.
recovery		recoveries and results assessed.
		Measures taken to maximise sample recovery and ensure		Not applicable to BLEG and soil sampling.
		representative nature of the samples.
		Whether a relationship exists between sample recovery and
		grade and whether sample bias may have occurred due to
		preferential loss/gain of fine/coarse material.
Logging		Whether core and chip samples have been geologically and		Descriptions of sample locations and sampled medium
		geotechnically logged to a level of detail to support appropriate		systematically and routinely recorded.
		Mineral Resource estimation, mining studies and metallurgical
		studies.
		Whether logging is qualitative or quantitative in nature. Core (or
		costean, channel, etc) photography.
		The total length and percentage of the relevant intersections
		logged.
Sub-sampling		If core, whether cut or sawn and whether quarter, half or all		BLEG stream sediment samples consist of silt and clay material
techniques and		core taken.		which is extracted from the other stream sediment material by
sample				decanting the fine grained material in suspension and then
preparation		If non-core, whether riffled, tube sampled, rotary split, etc and		settling it out of suspension using a flocculant.
		whether sampled wet or dry.
				Soil samples are sieved to a - 2 mm mesh.
		For all sample types, the nature, quality and appropriateness of
		the sample preparation technique.
		Quality control procedures adopted for all sub-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. _

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2 December 2014

Criteria	JORC Code explanation				Commentary
		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			BLEG samples were submitted to	Bureau Veratis in Perth for 500g
data and		laboratory procedures used and whether the technique is			cyanide leach and 40g Aqua Regia digest with ICP-MS / ICP- OES
laboratory tests		considered partial or total.			determinations for a broad range	of commodity and trace
		For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the			elements. Gold detection to 0.1ppb Au as well as a suite of trace, pathfinder and commodity elements.
		analysis including instrument make and model, reading times,
		calibrations factors applied and their derivation, etc.			Soil samples were submitted to BIGGS laboratory in Ougadougou
					for 500g CN leach to 1ppb Au detection limit.
		Nature of quality control procedures adopted (eg standards,
		blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.			Rock chips were submitted to BIGGS laboratory in Ougadougou for Fire Assay 50 g.
					QAQC was inserted for all sampling at a rate of 6% including
					standards, blanks and field duplicates.
Verification of		The verification of significant intersections by either			Not applicable to BLEG and soil sampling.
sampling and		independent or alternative company personnel.
assaying
		The use of twinned holes.
		Documentation of primary data, data entry procedures, data
		verification, data storage (physical and electronic) protocols.
		Discuss any adjustment to assay data.
Location of data		Accuracy and quality of surveys used to locate drill holes (collar			All surveys were conducted using	handheld GPS.
points		and down-hole surveys), trenches, mine workings and other
		locations used in Mineral Resource estimation.			Grid used is Universal Transverse	Mercator (UTM) WGS84, Zone
		Specification of the grid system used			30 N.
		Quality and adequacy of topographic control.
Data spacing		Data spacing for reporting of Exploration Results.			Drainage samples were collected	at a target density of 1 sample
and distribution					per 5 km sq. Care was taken with	selecting sample sites ensuring
					no cross contamination between adjacent catchments. Soil
					samples were collected on an initial 40x40m sample grid, which
					was closed down on selected prospects, infilling to 200x40m
					sample spacings.
		Whether the data spacing and distribution is sufficient to			Not applicable to BLEG and soil sampling.
		establish the degree of geological and grade continuity
		appropriate for the Mineral Resource and Ore Reserve
		estimation procedure(s) and classifications applied.
		Whether sample compositing has been applied.			Not applicable to BLEG and soil sampling.
Orientation of		Whether the orientation of sampling achieves unbiased			Not applicable to BLEG and soil sampling.
data in relation		sampling of possible structures and the extent to which this is
to geological		known, considering the deposit type.
structure
		If the relationship between the drilling 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 security		The measures taken to ensure sample security.			Samples are removed from the field immediately upon collection
					and stored in a secure compound for sub sampling and preparation
					for lab dispatch. Samples are collected directly from site by the
					laboratory. Sample submission forms are sent in paper form with
					the samples as well as electronically to the laboratory.
					Reconciliation of samples occurs prior to commencement of
					sample preparation of dispatches.
Audits or reviews		The results of any audits or reviews of sampling techniques and			Results have not been audited.
		data.

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2 December 2014

Section 2: Reporting of Exploration Results

Criteria	JORC Code explanation	JORC Code explanation		Commentary
Mineral tenement		Type, reference name/number, location and ownership		The Boss JV comprises 2 separate regions and a total of 7 permis.
and land tenure		including agreements or material issues with third parties		Gourma- 2012-074/MCE/SG/DGMGC Boutouanou Arrete
status		such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.		-2012-076/MCE/SG/DGMGC Diabatou Arrete -2013-0112/MME/SG/DGMG Tyara Arrete -2013-090/MME/SG/DGMG Foutouri Arrete
		The security of the tenure held at the time of reporting along		Golden Hill 2013-031 /MME/SG/DGMG Baniri Arrete
		with any known impediments to obtaining a licence to		-2013-030 /MME/SG/DGMG Intiedougou Arrete
		operate in the area.		-2013-018 /MME/SG/DGMG Mougue Arrete
				Boss Resources is 100% holder of the permis.
				The Mougue Arrete (most southern of the Golden Hill Project) is
				wholly within the “Reserve partielle de Nabere” Exploration
				activities are allowed to take place within the partial forest reserve,
				but special environmental permitting would likely be required as
				part of any Mining License Application
				The Gryphon 100% owned Côte d’Ivoire Tenements are:
				-Odienne Decree No 2014-376
				-FNW – Decree number TBA (passed COMINE).
				The Option to JV with Dune SARL covers the following permits:
				-Samatiguila Decree No 2013-823/1300904
				-Agnibilikrou Decree No 2013-822/1300903
				-A third permit, Zuenola is still under application.
				The authorities in Côte d’Ivoire have been made aware of the JV
				Agreement and Ministerial endorsement of this is still pending.
Exploration done		Acknowledgment and appraisal of exploration by other		Exploration completed by previous explorers Boss Resources and
by other parties		parties.		Orezone Ltd has included soil sampling, geophysical data
				collection and significant drilling.
Geology		Deposit type, geological setting and style of mineralisation.		The Boss Resource Joint Venture concerns three projects all
				hosted in granite/greenstone belts of the Proterozoic Birimian
				Shield in Burkina Faso. Exploration is targeting orogenic gold
				mineralizing systems.
Drill hole		A summary of all information material to the understanding		Not applicable to BLEG and soil sampling
Information		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.
		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		Not applicable to BLEG and soil sampling
methods		techniques, maximum and/or minimum grade truncations
		(eg cutting of high 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.

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2 December 2014

Criteria	JORC Code explanation			Commentary
Relationship		These relationships are particularly important in the reporting		Not applicable to BLEG and soil sampling.
between		of Exploration Results.
mineralisation
widths and		If the geometry of the mineralisation with respect to the drill
intercept lengths		hole angle is known, its nature should be reported.
		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		Maps, cross sections and model views accompany previous
		of intercepts should be included for any significant discovery		releases. No new exploration results accompany this
		being reported These should include, but not be limited to a		announcement.
		plan view of drill hole collar locations and appropriate
		sectional views.
Balanced reporting		Where comprehensive reporting of all Exploration Results is		Rock chips are used to detect for presence or absence of
		not practicable, representative reporting of both low and high		mineralization. Null samples are not considered relevant to
		grades and/or widths should be practiced to avoid		reporting and only the three highest new results have been
		misleading reporting of Exploration Results.		reported here.
				Soil samples are used to detect a greater likelihood that the
				bedrock is mineralized; the strength of the signal is not solely a
				function of the bedrock chemistry. Within the two featured
				prospects all Gryphon Soil samples have been shown.
				The most significant drill results for Golden Hill have only been
				reported and conclusions on potential tonnage or grade of the
				deposits should not be drawn from currently reported drill results.
				Further information to allow assessment of potential target size will
				be provided when Gryphon Minerals progresses work and data
				validation. Current reporting is not balanced in nature and should
				not be construed to be so.
Other substantive		Other exploration data, if meaningful and material, should be		Nil
exploration data		reported including (but not limited to): geological
		observations; 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.
Further work		The nature and scale of planned further work (eg tests for		Further exploration work will include follow up mapping and further
		lateral extensions or depth extensions or large-scale step-out		geochemical testing in preparation for drill targeting.
		drilling).
		Diagrams clearly highlighting the areas of possible
		extensions, including the main geological interpretations and
		future drilling areas, provided this information is not
		commercially sensitive.

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