BRIGHTSTAR RESOURCES LIMITED — Capital/Financing Update 2014

May 27, 2014

S TONE R ESOURCES A USTRALIA L IMITED

ASX
Announcement

28
May
2014

_**Mineral

Resource
Review
of
Brightstar
Project**_

**Western

Australia**

Stone
Resources
Australia
Limited
(Stone)
is
pleased
to
announce
the
completion
of
a review
by
CSA
Global
Pty
Ltd
(CSA)
of
its
Mineral
Resource
estimates
(MRE),
specifically the
Alpha,
Ben
Hur
and
Delta
deposits
within
the
Brightstar
Project.

The
MRE
were completed
by
SKR
New
Investment
Pty
Ltd
and
released
to
the
Australian
Stock Exchange
(ASX)
on
the
23[rd] April
2013.
The
original
MRE
were
completed
in
accordance with
the
2004
edition
of
Australasian
Code
for
Reporting
of
Exploration
Results,
Mineral Resources
and
Ore
Reserves
(2004JORC
Code).

CSA
reviewed
the
modelling
methods,
estimation
criteria,
resource
classification
and
the MRE
results.
CSA
also
conducted
a
site
visit
and
laboratory
inspections.

The
review
has
confirmed
that
the
methods
and
results
of
the
MRE
and
the
classification of
Measured,
Indicated
and
Inferred
resources
(Table
1)
were
properly
completed. Together
with
the
supplementary
work
completed
by
CSA,
the
MRE
results
are confirmed
to
be
in
compliance
with
the
2012
edition
of
Australian
Code
for
Reporting
of Exploration
Results,
Mineral
Resources
and
Ore
Reserves
(2012
JORC
Code).

**Table
1:

Brightstar
Project
-­‐
Mineral
Resource
Estimate
Results
for
Alpha,
Ben
Hur
and Delta
Deposits**

	_In-situ_Mineral Resources Grade Tonnage Reported above a Cut-off Grade of 0.5g/t Au	_In-situ_Mineral Resources Grade Tonnage Reported above a Cut-off Grade of 0.5g/t Au	_In-situ_Mineral Resources Grade Tonnage Reported above a Cut-off Grade of 0.5g/t Au	_In-situ_Mineral Resources Grade Tonnage Reported above a Cut-off Grade of 0.5g/t Au
Deposit	Category	Tonnes (kt)	Grade(g/t)	Ounces (koz)
Alpha	Measured	623	1.6	33
	Indicated	374	2.1	25
	Meas+Ind	997	1.8	58
	Inferred(approx.)	455	3.3	48
Ben Hur	Measured	2,434	1.6	125
	Indicated	1,672	1.4	77
	Meas+Ind	4,105	1.5	202
	Inferred(approx.)	1,665	1.6	87
Delta	Measured	1,220	1.9	76
	Indicated	944	1.9	57
	Meas+Ind	2,164	1.9	133
	Inferred(approx.)	1,696	1.9	104

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BEN
HUR
DELTA
ALPHA
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Figure
1:
Tenement
Diagram
for
Alpha,
Ben
Hur
and
Delta
deposits
within
the Brightstar
Project
Area

For
further
information,
please
contact:

Yong
Han,
Director,
CEO Wenhua
Shan,
Chief
Geologist

Sheng
Lu,
Deputy
CEO
&
Joint
Company
Secretary

Tony
Lau
Wai
Ming,
Joint
Company
Secretary

Telephone:
0061-­‐8-­‐9277
6008;
Fax:
0061-­‐8-­‐9277
6002

Company
email
address: info@stoneral.com.au

Competent Persons Statement

The information in this report that relates to Mineral Resources is based on information compiled by Dr. Bielin Shi, who is a member of the Australasian Institute of Mining and Metallurgy and of the Australian Institute of Geoscientists. Dr. Shi is an employee of CSA Global Pty. Ltd. Dr. Shi has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person (CP) as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr. Shi 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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ALPHA Resource Drilling
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ALPHA Resource Drilling Intersection

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BEN HUR Resource Drilling
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BEN HUR Resource Drilling Intersection
----- End of picture text -----

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DELTA Resource Drilling
----- End of picture text -----

DELTA Resource Drilling Intersection

ALPHA Drill Hole Collars	ALPHA Drill Hole Collars	ALPHA Drill Hole Collars	ALPHA Drill Hole Collars	ALPHA Drill Hole Collars	ALPHA Drill Hole Collars	ALPHA Drill Hole Collars	ALPHA Drill Hole Collars	ALPHA Drill Hole Collars	ALPHA Drill Hole Collars	ALPHA Drill Hole Collars
Hole_ID	East	North		RL		Azimuth		Dip		Depth(m)
SAR0001	473272.049	6822531.633		490.505		213.8		-62.7		160
SAR0401	473230.069	6822542.576		490.243		208.6		-53		140
SAR0601	473197.084	6822565.521		490.531		208.1		-58		160
SAR1001	473124.362	6822601.418		490.645		208.3		-56.5		170
SAR1201	473092.26	6822625.176		489.915		209		-57.4		160
SAR1202	473051.303	6822559.509		489.898		211.3		-55.4		80
SAR1401	473028.175	6822598.435		489.919		207.5		-57.6		120
SAR1403	473006.97	6822564.327		489.78		211.3		-60.3		75
SAR1601	472962.954	6822569.177		489.302		209.7		-60.5		70
SAR1801	472960.82	6822641.653		489.894		208		-59		150
SAR1803	472925.14	6822584.547		489.167		209		-59.9		70
SAR20001	470066.619	6824531.677		474.684		235.1		-60.2		120
SAR20002	470135.129	6824574.481		474.624		232.1		-61.5		120
SAR20003	470201.513	6824616.29		473.897		233.7		-58.2		108
SAR20004	470271.269	6824659.332		473.895		235.3		-60.8		120
SAR2601	472817.483	6822716.289		491.334		208.2		-58.5		122
SAR2603	472793.743	6822676.038		488.551		208.6		-59		80
SAR2801	472780.117	6822729.627		488.935		209.3		-59.4		40
SAR3201	472683.276	6822725.848		488.165		208.7		-61.6		140
SAR4001	472570.582	6822847.629		487.036		206.7		-58.8		120
SAR5005	472449.898	6822856.315		486.708		216.2		-61.9		120
SAR5801	472297.551	6822926.018		488.936		213.5		-60.7		70
SAR5802	472322.325	6822952.982		487.679		218		-61		100
SAR6002	472285.357	6822972.147		488.128		216		-60.7		70
SAR6003	472321.071	6823011.595		486.404		218.8		-60.9		130
SAR6201	472291.22	6823038.05		485.724		218.5		-61.3		110
SAR6203	472256.328	6823000.164		487.986		218.8		-62.9		70
SAR6401	472257.126	6823060.354		485.259		221.2		-62.3		120
SAR6403	472228.016	6823028.45		486.013		217.8		-60.9		70
SAR6601	472243.937	6823105.429		485.021		218.8		-63.9		135
SAR6801	472214.467	6823131.833		484.307		218.7		-60.1		135
SAR6802	472169.578	6823083.403		484.905		219.6		-59.3		70
BEN HUR Drill Hole Collars
HoleID	East	North	RL		Azimuth		Dip		Depth(m)
DBR0301	437840.2	6884146	478.021		256		-60		127
DBR0302	437864.6	6884152	477.971		256		-60		157
DBR0401	437854.8	6884098	478.391		256		-60		127
DBR0402	437876.8	6884103	478.405		256		-60		151
DBR0403	437807.6	6884087	478.025		256		-60		66
DBR0404	437840.3	6884094	478.178		256		-60		91

BEN HUR Drill Hole Collars	BEN HUR Drill Hole Collars	BEN HUR Drill Hole Collars	BEN HUR Drill Hole Collars	BEN HUR Drill Hole Collars	BEN HUR Drill Hole Collars	BEN HUR Drill Hole Collars	BEN HUR Drill Hole Collars	BEN HUR Drill Hole Collars	BEN HUR Drill Hole Collars
HoleID	East	North	RL	Azimuth		Dip		Depth(m)
DBR0701	437798.1	6884189	477.442	256		-60		114
DBR0801	437884.2	6884055	478.531	256		-60		156
DBR0802	437909.2	6884060	478.74	256		-60		186
DBR11307	437522	6885485	477.195	256		-60		139
DBR11701	437343.6	6885495	475.648	256		-60		96
DBR11702	437367	6885498	475.717	256		-60		132
DBR11705	437461.4	6885519	476.482	256		-60		78
DBR11706	437485.8	6885527	476.747	256		-60		102
DBR1201	437900	6884007	478.861	256		-60		163
DBR1202	437948.2	6884020	478.847	256		-60		190
DBR1203	437878.3	6884000	478.712	256		-60		133
DBR12101	437332.2	6885543	475.361	256		-60		103
DBR12102	437356.8	6885547	475.545	256		-60		24
DBR4406	438053.2	6883631	481.259	256		-60		198
DBR4701	437613.6	6884657	480.273	256		-60		48
DBR4702	437634.1	6884663	480.467	256		-60		78
DBR4703	437658.4	6884669	480.633	256		-60		103
DBR4704	437681.8	6884674	480.838	256		-60		127
DBR4705	437762.3	6884694	481.724	256		-60		103
DBR4706	437786.9	6884700	481.856	256		-60		127
DBR5505	437697.3	6884783	480.767	256		-60		87
DBR5506	437725.5	6884789	481.061	256		-60		102
DBR5901	437606.1	6884812	479.859	256		-60		84
DBR9701	437437.5	6885257	476.789	256		-60		126
DBR9702	437460	6885264	476.761	256		-60		162
DBR9705	437534.5	6885289	477.558	256		-60		78
DBR9706	437572.7	6885291	477.977	256		-60		114
DELTA Drill Hole Collars
Hole_ID	East	North	RL		Azimuth		Dip		Depth(m)
SDR098801	441723.445	6864939.878	470.737		255		-60		138
SDR099601	441714.507	6865019.833	471.088		255		-60		160
SDR099602	441748.632	6865029.808	469.501		255		-60		190
SDR100401	441720.855	6865103.974	469.751		255		-60		204
SDR100402	441757.056	6865114.556	468.637		255		-60		241
SDR101201	441697.951	6865181.058	469.836		255		-60		162
SDR101202	441732.145	6865191.335	468.961		255		-60		186
SDR105201	441624.006	6865574.949	469.482		255		-60		157
SDR106001	441618.105	6865656.598	469.988		255		-60		151
SDR106801	441586.064	6865721.194	469.263		255		-60		169
SDR107601	441616.711	6865821.497	472.728		255		-55		229
SDR112401	441473.356	6866278.142	469.925		255		-60		97
SDR113201	441422.114	6866349.403	469.923		255		-60		79
SDR113202	441464.315	6866360.722	470.221		255		-60		114

DELTA Drill Hole Collars	DELTA Drill Hole Collars	DELTA Drill Hole Collars	DELTA Drill Hole Collars	DELTA Drill Hole Collars	DELTA Drill Hole Collars	DELTA Drill Hole Collars	DELTA Drill Hole Collars	DELTA Drill Hole Collars	DELTA Drill Hole Collars	DELTA Drill Hole Collars
Hole_ID	East		North		RL	Azimuth		Dip		Depth(m)
SDR113203	441485.825		6866366.218		470.295	255		-60		138
SDR120401	441294.886		6867062.451		470.332	255		-60		130
SDR120801	441307.451		6867106.077		470.484	255		-60		138
SDR121201	441357.09		6867159.882		470.727	255		-60		117
SDR122001	441335.796		6867237.936		470.882	255		-60		174
SDR122002	441377.425		6867250.478		471.137	255		-60		210
SDR122801	441316.142		6867317.097		470.506	255		-60		204
SDR122802	441349.598		6867325.969		470.734	255		-60		240
SDR123601	441269.704		6867387.131		470.604	255		-60		138
SDR123602	441353.009		6867409.726		470.855	255		-60		222
SDR124001	441358.754		6867452.359		470.732	255		-60		192
SDR124401	441357.487		6867493.302		470.925	255		-60		150
SDR125201	441320.187		6867565.683		471.179	255		-60		192
SDR126206	441170.452		6867649.513		470.507	255		-60		120
SDR126801	441120.2		6867677.209		470.341	255		-60		138
SDR126802	441172.721		6867691.376		470.514	255		-60		140
SDR126803	441244.768		6867712.177		470.838	255		-60		32
SDR126804	441316.015		6867730.608		471.099	255		-60		120
SDR127201	441164.525		6867731.842		470.334	255		-60		120
SDR127202	441227.041		6867748.592		470.618	255		-60		120
SDR127203	441293.681		6867767.769		470.894	255		-60		126
ALPHA Significant Intersections
Hole_ID		mFrom		mTo			Thickness(m)		Au(g/t)
SAR0001		83		84			1		2.07
SAR0401		111		113			2		2.59
SAR0601		109		110			1		2.00
SAR0601		111		112			1		1.27
SAR0601		117		121			4		11.84
SAR0601		125		128			3		9.79
SAR1001		124		125			1		1.26
SAR1001		157		158			1		4.31
SAR1201		126		127			1		1.02
SAR1201		127		128			1		3.66
SAR1201		129		130			1		1.89
SAR1801		101		103			2		2.12
SAR2002		49		50			1		1.84
SAR2601		106		108			2		2.47
SAR2601		109		110			1		1.58
SAR3003		42		43			1		1.09
SAR3201		39		40			1		1.74
SAR4001		46		48			2		2.58

ALPHA Significant Intersections	ALPHA Significant Intersections	ALPHA Significant Intersections	ALPHA Significant Intersections	ALPHA Significant Intersections
SAR4001	52	53	1	4.48
SAR4001	54	55	1	1.10
SAR5801	40	41	1	1.21
SAR6203	50	51	1	2.32
SAR6401	84	87	3	3.20
SAR6403	43	44	1	1.67
SAR6601	112	115	3	6.27
SAR20005	88	90	2	1.82
SAR20705	81	82	1	1.80
BEN HUR Significant Intersections
Hole_ID	mFrom	mTo	Thickness(m)	Au(g/t)
DBR0403	37	38	1	12.6
DBR0403	38	39	1	12.8
DBR0404	63	64	1	3.95
DBR0404	70	71	1	17.87
DBR0404	71	72	1	8.67
DBR0701	32	33	1	4.96
DBR0804	46	47	1	3.71
DBR0804	60	61	1	3.24
DBR0804	67	68	1	13.8
DBR0805	78	79	1	5.92
DBR0805	85	86	1	5.63
DBR0805	87	88	1	4.85
DBR10105	66	67	1	5
DBR10105	77	78	1	4.37
DBR10506	76	77	1	6.73
DBR10506	77	78	1	18.2
DBR10506	80	81	1	4.48
DBR10905	55	56	1	3.97
DBR1101	29	30	1	4.54
DBR1105	59	60	1	17
DBR1105	64	65	1	5.29
DBR11301	73	74	1	3.91
DBR11702	131	132	1	4.17
DBR1201	92	93	1	13.13
DBR1201	94	95	1	3.88
DBR1201	121	122	1	3.37
DELTA Significant Intersections
Hole_ID	mFrom	mTo	Thickness(m)	Au(g/t)
SDR100401	169	170	1	1.15

SDR102001	88	89	1	1.7
SDR102001	125	126	1	1.87
SDR102001	126	127	1	2.77
SDR102001	127	128	1	1.69
SDR102002	169	170	1	1.61
SDR102002	171	172	1	3.12
SDR102002	172	173	1	3.57
SDR102002	173	174	1	1.05
SDR102801	119	120	1	1.23
SDR102801	120	121	1	1.07
SDR102801	121	122	1	1.29
SDR102802	153	154	1	1.58
SDR102802	155	156	1	14.2
SDR102802	156	157	1	7.47
SDR102802	157	158	1	3.04
SDR102802	158	159	1	1.14
SDR102802	160	161	1	5.13
SDR102802	161	162	1	1.13
SDR103601	120	121	1	3.34
SDR103601	121	122	1	4.41
SDR103601	122	123	1	1.2
SDR103601	123	124	1	1.01
SDR103601	124	125	1	15.24
SDR103601	125	126	1	8.91
SDR103601	126	127	1	2.81
SDR103601	127	128	1	1.66
SDR103601	130	131	1	1.51
SDR103601	131	132	1	3.54
SDR103601	132	133	1	2.05
SDR103601	133	134	1	16.32
SDR103601	134	135	1	8.11
SDR103601	135	136	1	10.12

**Appendix

JORC
Table
1
Compliance**

Section
1
Sampling
Techniques
and
Data

Criteria	JORC Code explanation	Commentary
Sampling techniques	• Nature and quality of sampling (eg	• The Alpha deposit was drilled
	cut channels, random chips, or	primarily in a nominal 20m by 20m
	specific specialized industry standard	spacing in areas; a total of 1349
	measurement tools appropriate to the	historic RC drill holes, and 46 infill
	minerals under investigation, such as	RC drill holes drilled in 2012.
	down hole gamma sondes, or	• The Ben Hur deposit was drilled
	handheld XRF instruments, etc).	primarily in a nominal 20m by 20m
	These examples should not be taken	and 40m by 20m spacing in areas; a
	as limiting the broad meaning of	total of 929 historic RC drill holes,
	sampling.	and 191 infill RC drill holes drilled
	• Include reference to measures taken	in 2012.
	to ensure sample representatively and	• The Delta deposit was drilled
	the appropriate calibration of any	primarily in a nominal 20m by 20m
	measurement tools or systems used.	and 40m by 20m spacing in areas; a
	• Aspects of the determination of	total of the historic RC drill holes,
	mineralisation that are Material to the	and 75 infill RC drill holes drilled in
	Public Report.	2012.
	• In cases where ‘industry standard’	• The drilling programs in Alpha, Ben
	work has been done this would be	Hur and Delta areas were designed
	relatively simple (eg ‘reverse	to optimallyintersect the
	circulation drilling was used to obtain	mineralised zones.
	1 m samples from which 3 kg was	• Sampling was carried out under
	pulverised to produce a 30 g charge	Stone’s supervision according to its
	for fire assay’). In other cases more	QAQC protocols and procedures.
	explanation may be required, such as	This included the use of field
	where there is coarse gold that has	duplicates, commercially prepared
	inherent sampling problems. Unusual	blanks and certified reference
	commodities or mineralisation types	materials.
	(eg submarine nodules) may warrant	• The orientation of the mineralisation
	disclosure of detailed information.	had been determined by mapping
		and previous diamond and RC
		drilling. This was confirmed in the
		latest drilling campaign.
		• Drill core was split to produce
		samples ranging from 2.5 to 3.5kg in
		weight. In the assay laboratory the
		samples were crushed pulverised
		and subsampled to produce a 50g
		charge for fire assaying with an
		AAS finish. This gave a total
		determination of Au.
Drilling techniques	• Drill type (eg core, reverse circulation,	• The drilling rig cyclone was
	open-hole hammer, rotary air blast,	regularly cleaned out and flushed at
	auger, Bangka, sonic, etc) and details	rod changes in RC drilling program.
	(eg core diameter, triple or standard	This was to prevent any smearing
	tube, depth of diamond tails, face-	of grade between 1m sample
	sampling bit or other type, whether core	intervals.
	is oriented and if so, by what method,
	_etc). _
Drill sample	• Method of recording and assessing core	• A record ofqualitative sample

Criteria	JORC Code explanation	Commentary	Commentary
recovery	and chip sample recoveries and results		recovery and moisture content was
	assessed.		recorded by field assistants under
	• Measures taken to maximise sample		the supervision of the rig geologist.
	recovery and ensure representative	•	Weight checks were done
	nature of the samples.		periodically at the rig. Overall
	• Whether a relationship exists between		sample weight and quality was
	sample recovery and grade and whether		good. The rig geologist closely
	sample bias may have occurred due to		monitored the rig to ensure the
	preferential loss/gain of fine/coarse		entire sample was collected in both
	material.		bulk plastic & calico bag prior to
			removal from the cyclone splitter,
			and action was taken if sample
			weights showed marked variations.
Logging	• Whether core and chip samples have	•	All RC chips were logged at the
	been geologically and geotechnically		drill-rig-site for main/subordinate
	logged to a level of detail to support		lithology, colour, grainsize,
	appropriate Mineral Resource		regolith, alteration, oxidation and
	estimation, mining studies and		mineralisation.
	metallurgical studies.	•	Geological logging is both
	• Whether logging is qualitative or		qualitative and quantitative in
	quantitative in nature. Core (or		nature. The lithology, colour, grain
	costean, channel, etc) photography.		size, regolith, alteration, oxidation,
	• The total length and percentage of the		veining and mineralisation were
	relevant intersections logged.		recorded. Sulphide and vein content
			were logged as a percentage of the
			interval. Representative chips were
			collected in chip trays for each 4m
			interval and retained on site (no
			photographs).
		•	All of the drilling was geologically
			logged.
Sub-sampling	• If core, whether cut or sawn and	•	The RC samples were sub-sampled
techniques and	whether quarter, half or all core taken.		using a rig mounted, self-levelling
sample preparation	• If non-core, whether riffled, tube		cone splitter. The vast majority of
	sampled, rotary split, etc and whether		the samples were dry with rare
	sampled wet or dry.		moist and wet samples recorded on
	• For all sample types, the nature, quality		the sampling sheet.
	and appropriateness of the sample	•	The sample preparation followed
	preparation technique.		industry best practice in sample
	• Quality control procedures adopted for		preparation involving oven drying
	all sub-sampling stages to maximise		and pulverisation of the entire
	representivity of samples.		~3kg sub-sample using LM5
	• Measures taken to ensure that the		grinding mills to a grind size of
	sampling is representative of the in situ		85% passing less than 75 microns.
	material collected, including for	•	Field duplicates were collected and
	instance results for field		assessed to determine cone splitter
	duplicate/second-half sampling.		repeatability; results showed
	• Whether sample sizes are appropriate		reasonable repeatability.
	to the grain size of the material being	•	Commercially prepared and
	sampled.		certified reference materials
			(standards and blanks) along with
			field duplicates were inserted at a
			ratio of 1:20 into the sample string.
			The QAQC results from this
			program were considered to be
			acceptable.
		•	Sample recoveries were recorded
			byStone's field staff. Apertures in

Criteria	JORC Code explanation	Commentary	Commentary
			the cone splitter were adjusted to
			maintain a sample weight between
			2.5 and 3.5kg. Periodic sample
			weighing was carried out to ensure
			an even split between duplicate
			samples by the cone splitter.
		•	The sample sizes are considered to
			be appropriate and to correctly
			represent mineralisation at the
			deposit based on the style of
			mineralisation (lode/ mesothermal
			gold), the thickness and
			consistency of the intersections,
			the sampling methodology and
			assayranges returned forgold.
Quality of assay data	• The nature, quality and appropriateness	•	A 50g charge for the Fire Assaying
and laboratory tests	of the assaying and laboratory		was employed. This is considered
	procedures used and whether the		to be an appropriate sub-sample
	technique is considered partial or total.		size for a total determination of
	• For geophysical tools, spectrometers,		gold.
	handheld XRF instruments, etc, the	•	No geophysical tools were used to
	parameters used in determining the		determine any element
	analysis including instrument make and		concentrations.
	model, reading times, calibrations	•	Sample preparation checks for
	factors applied and their derivation,		fineness were carried out by the
	etc.		laboratory as part of their internal
	• Nature of quality control procedures		procedures to ensure the grind size
	adopted (eg standards, blanks,		of 85% passing 75 micron was
	duplicates, external laboratory checks)		achieved. Laboratory quality
	and whether acceptable levels of		control involved the use of certified
	accuracy (ie lack of bias) and precision		reference material, blanks, splits
	have been established.		and replicates as part of the in
			house procedures. These results
			were used along with Stone’s
			quality control data to illustrate that
			there was no systematic bias and
			that results had an acceptable level
			ofprecision and accuracy.
Verification of	• The verification of significant	•	The Senior Exploration Geologist
sampling and	intersections by either independent or		from Stone has visually verified the
assaying	alternative company personnel.		significant intersections using
	• The use of twinned holes.		material collected in the diamond
	• Documentation of primary data, data		cores and RC chip trays.
	entry procedures, data verification,	•	There were twinned holes drilled at
	data storage (physical and electronic)		Ben Hur deposit in 2012; No
	protocols.		twinned holes were drilled at the
	• Discuss any adjustment to assay data.		Alpha and Delta deposit;
		•	The primary data was collected by
			using logging software that was
			installed on a Toughbook™. This
			software contained standard lookup
			tables for the logging codes. The
			collected data was subsequently
			validated according to Stone’s
			proceduresprior to being sent to
			Kalgoorlie Assay Laboratories. At
			this point further validations were
			carried outprior to uploadingthe

Criteria	JORC Code explanation	Commentary
		data into a SQL database.
		• No adjustments were made to the
		assaydata.
Location of data	• Accuracy and quality of surveys used to	• Post drilling a hand-held GPS was
points	locate drill holes (collar and down-hole	used to record the drill hole
	surveys), trenches, mine workings and	coordinates. These locations were
	other locations used in Mineral	used by Stone's Mine Surveyors
	Resource estimation.	who employed a Real Time
	• Specification of the grid system used.	Kinematic (RTK) Differential GPS
	• Quality and adequacy of topographic	to pick up the collar of the holes.
	control.	The RTK method provides
		positional precision up to 10mm.
		Down-hole surveys were carried
		out every 30m using a Camteq
		Electronic Multi-shot camera.
		Regular re-surveying was carried
		out to check the quality of readings.
		• All work was carried out in the
		Geocentric Datum of Australia
		1994 (GDA94) within the zone 51
		projection.
Data spacing and	• Data spacing for reporting of	• This programme of resource
distribution	Exploration Results.	definition drilling conducted at the
	• Whether the data spacing and	Alpha, Ben Hur and Delta deposits
	distribution is sufficient to establish the	were on an approximate 20m by
	degree of geological and grade	20m spacing, along strike and down
	continuity appropriate for the Mineral	dip.
	Resource and Ore Reserve estimation	• 20m by 20m spacing at the Alpha,
	procedure(s) and classifications	Ben Hur and Delta deposits has
	applied.	been considered sufficient to
	• Whether sample compositing has been	establish geological and grade
	applied.	continuity according to the
		Australian JORC 2012 code; This
		code has been used as a reference
		on reporting results to the ASX and
		the public.
		• No compositing has been applied to
		the exploration samples.
Orientation of data	• Whether the orientation of sampling	• Pit mapping and structural
in relation to	achieves unbiased sampling of possible	measurements have been taken at
geological structure	structures and the extent to which this is	the deposits and they confirm the
	known, considering the deposit type.	orientation of mineralisation
	• If the relationship between the drilling	defined by the drilling. Based upon
	orientation and the orientation of key	the above information the drilling
	mineralised structures is considered to	for both programs has been largely
	have introduced a sampling bias, this	perpendicular to the mineralisation
	should be assessed and reported if	with some minor exceptions due to
	material.	constraints enforced by mining
		activities and infrastructure.
		• No significant orientation bias has
		been identified in the data at this
		point.
Sample security	• The measures taken to ensure sample	• Once the samples had been
	security.	collected and checked by the field
		staff they were placed into
		polyweave bags. These samples
		were then taken to a secure

Criteria	JORC Code explanation	Commentary
		laydown area at the Alpha, Delta
		mine site. Toll Priority transported
		the samples to Perth to the assay
		laboratory who stored them in a
		locked yard. A series of well tested
		digital and paper tracking
		mechanisms were used by Stone to
		track the progress of the sample
		batches.
Audits or reviews	• The results of any audits or reviews of	• An external review was carried out
	sampling techniques and data.	by CSA in July 2012. The sampling
		techniques and quality of samples
		were found to be satisfactory.

**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	• The Alpha deposit is located in
and land tenure	and ownership including agreements or	M38/1058, M38/1056, M38/1057,
status	material issues with third parties such as	M38/968, and P38/3834 mining
	joint ventures, partnerships, overriding	licences.
	royalties, native title interests, historical	• The Ben Hur deposit is located in
	sites, wilderness or national park and	M38/339 mining licences.
	environmental settings.	• The Delta deposit is located in
	• The security of the tenure held at the time	M38/346 mining licences.
	of reporting along with any known	• Stone Gold Mining Limited has a
	impediments to obtaining a licence to	100% interest in these tenements.
	operate in the area.	• The tenements are in good standing
		with no known impediments.
Exploration done by	• Acknowledgment and appraisal of	• Exploration by other parties has
other parties	exploration by other parties.	been reviewed and taken into
		account when exploring. Previous
		parties conducted rock chip
		sampling, mapping and drilling.
		This report only concerns
		exploration results collected by
		Stone.
Geology	• Deposit type, geological setting and style	• Gold mineralisation is both
	of mineralisation.	structurally and lithologically
		controlled and occurs in a series of
		stepped lodes.
		• The mineralized zone at Alpha is
		based on a single, shear hosted
		lode. The lode is shallow north
		dipping within the oxide position
		and steepens to around 50° to 60° in
		fresh rock. The shear geometry
		plunges around 10° to 150° to the
		northwest (300°).
		• The main mineralised zone at Ben
		Hur is contained within a vertical to
		steeply east dipping, sheared quartz
		dolerite unit which is 40m to 50m
		thick and strikes north northwest
		over the length of the lease.
		• The mineralization in Delta deposit
		is associated with steep east dipping
		sedimentary units, in particular the
		chert horizon located on the
		footwall of the sediment sequence.
Drill hole	• A summary of all information material to	• Refer to Tables 1 & 2 and Section
Information	the understanding of the exploration	1.
	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

Criteria	JORC Code explanation	Commentary
	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,	• All of the reported intersections
methods	weighting averaging techniques,	have a lower cut-off of 0.5g/t with a
	maximum and/or minimum grade	maximum internal dilution of two
	truncations (eg cutting of high grades)	consecutive samples. No top-cuts
	and cut-off grades are usually Material	were applied. Individual 1m results
	and should be stated.	>1 g/t Au are also included.
	• Where aggregate intercepts incorporate	• Higher grade (generally >5g/t)
	short lengths of high grade results and	intervals within results were
	longer lengths of low grade results, the	reported alongside the overall
	procedure used for such aggregation	intersection, where a substantial
	should be stated and some typical	proportion of the total gold in an
	examples of such aggregations should be	intersection was contained within
	shown in detail.	the high-grade sub-interval(s) or
	• The assumptions used for any reporting	grades were materially higher than
	of metal equivalent values should be	adjacent assays. For example, in a
	clearly stated.	run of 1-2 g/t results, assays over
		5.0 g/t Au would be reported as a
		sub-interval; in a run of 2-6 g/t
		assays, results >10 g/t Au would be
		reported as a sub-interval. In these
		instances generally a maximum
		internal dilution of two consecutive
		samples was used. No top cuts were
		applied.
		• No metal equivalents were used.
Relationship between	• These relationships are particularly	• The main zone of mineralisation at
mineralisation	important in the reporting of Exploration	the Alpha, Ben Hur and Delta
widths and intercept	Results.	deposits are broadly 310°-trending
lengths	• If the geometry of the mineralisation with	structure that dips approximately
	respect to the drill hole angle is known,	65°to the south-west. Slightly
	its nature should be reported.	obliquely striking mineralisation is
	• If it is not known and only the down hole	most strongly formed in the
	lengths are reported, there should be a	footwall but also exists in the
	clear statement to this effect (eg ‘down	hangingwall to the main zone.
	hole length, true width not known’).	• Drill holes, where possible were
		designed to be perpendicular to the
		lodes, however, in some cases local
		infrastructure inhibited this.
		• All of the intersections are given in
		down hole metre lengths.
Diagrams	• Appropriate maps and sections (with	• Refer to previous announcements
	scales) 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.

Criteria	JORC Code explanation	Commentary
Balanced reporting	• Where comprehensive reporting of all	• All results were reported for the
	Exploration Results is not practicable,	entire drill programs.
	representative reporting of both low and
	high grades and/or widths should be
	practiced to avoid misleading reporting
	of Exploration Results.
Other substantive	• Other exploration data, if meaningful and	• No other exploration data that has
exploration data	material, should be reported including	been collected is considered to be
	(but not limited to): geological	meaningful or material to this
	observations; geophysical survey results;	announcement.
	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	• Currently, over 4,000m further
	work (eg tests for lateral extensions or	Phase II resource definition
	depth extensions or large-scale step-out	diamond and RC drilling is planned
	drilling).	for the Ben Hur deposit.
	• Diagrams clearly highlighting the areas	• Follow up drilling is currently
	of possible extensions, including the main	being finalised so is not shown.
	geological interpretations and future
	drilling areas, provided this information
	is not commercially sensitive.

**Section

3
Estimation
and
Reporting
of
Mineral
Resources**

(Criteria
listed
in
section
1,
and
where
relevant
in
section
2,
also
apply
to
this
section.)

Criteria	JORC Code explanation	Commentary
Database integrity	• Measures taken to ensure that data has not	• The database is maintained by site
	been corrupted by, for example, transcription	personnel.
	or keying errors, between its initial collection	• The exploration database used for
	and its use for Mineral Resource estimation	the resource estimation has been
	purposes.	validated and considered accurate.
	• Data validationprocedures used.
Site visits	• Comment on any site visits undertaken by the	• The Competent Person for this
	Competent Person and the outcome of those	update is a full time employee of
	visits.	CSA Global and undertakes regular
	• If no site visits have been undertaken indicate	site visits ensuring industry
	why this is the case.	standards of the Mineral Resource
		estimation process from sampling
		through to final block model.
Geological	• Confidence in (or conversely, the uncertainty	• Geological and mineralisation
interpretation	of) the geological interpretation of the mineral	interpretations were reviewed by
	deposit.	CSA geologist. The wireframes
	• Nature of the data used and of any	were generated based on cross
	assumptions made.	sections widths of 20m – 20m
	• The effect, if any, of alternative interpretations	spacing. This was based on
	on Mineral Resource estimation.	exploration and grade control
	• The use of geology in guiding and controlling	drilling patterns.
	Mineral Resource estimation.	• Mineralisation cut-off grades of
	• The factors affecting continuity both of grade	0.3g/t Au combined with the
	and geology.	geological logging were used to
		define the mineralised envelopes.
		• The geological interpretation of
		mineralised boundaries is
		considered robust and alternative
		interpretations do not have the
		potential to impact significantly on
		the Mineral Resources.
Dimensions	• The extent and variability of the Mineral	• The Alpha deposit mineralisation
	Resource expressed as length (along strike or	extends from 472,000mE to
	otherwise), plan width, and depth below	473,500mE, 6,822,460mN to
	surface to the upper and lower limits of the	6,823,200mN, and 30m below
	Mineral Resource.	surface. The deposit with multiple
		lodes generally strikes towards NW
		with a strike length of
		approximately 1,500m, dipping
		towards the northeast at 30° -45°
		with and having a vertical extent of
		about 100m.
		• The Ben Hur deposit mineralisation
		extends from 437,000mE to
		438,000mE, 6,883,500mN to
		6,885,600mN, and 30m below
		surface. The deposit with multiple
		lodes generally strikes towards NW
		with a strike length of
		approximately 2,000m, dipping
		towards the northeast at 70° -80°
		with and havinga vertical extent of

Criteria	JORC Code explanation	Commentary
		about 120m.
		• The Delta deposit mineralisation
		extends from 441,000mE to
		442,000mE, 6,865,000mN to
		6,867,500mN, and 30m below
		surface. The deposit with multiple
		lodes generally strikes towards NW
		with a strike length of
		approximately 2,000m, dipping
		towards the northeast at 70° - 80°
		with and having a vertical extent of
		about 100m.
Estimation and	• The nature and appropriateness of the	• 1m composites was created and
modelling techniques	estimation technique(s) applied and key	used for the statistical, variography
	assumptions, including treatment of extreme	analyses and estimation.
	grade values, domaining, interpolation	• Thorough univariate statistical
	parameters and maximum distance of	analysis of density weighted, 1m,
	extrapolation from data points. If a computer	mineralogy flagged, downhole
	assisted estimation method was chosen include	composites has been completed for
	a description of computer software and	gold and for all lodes and top-cuts
	parameters used.	established where applicable.
	• The availability of check estimates, previous	• Statistical analysis indicated that
	estimates and/or mine production records and	outlier management was crucial to
	whether the Mineral Resource estimate takes	prevent severe high grade smearing
	appropriate account of such data.	that could result in potential
	• The assumptions made regarding recovery of	overestimation for some elements.
	by-products.	The approach used has been
	• Estimation of deleterious elements or other	capping (Top-cuts were defined by
	non-grade variables of economic significance	domain following thorough
	(eg sulphur for acid mine drainage	examinations of histograms,
	characterisation).	probability curves and the spatial
	• In the case of block model interpolation, the	locations of the outliers). Top cuts
	block size in relation to the average sample	ranged from 5g/t to 100g/t based on
	spacing and the search employed.	analysis of individual lodes
	• Any assumptions behind modelling of selective	statistics.
	mining units.	• Variogram modelling completed
	• Any assumptions about correlation between	within Isatis™ software and used to
	variables.	define the characterization of the
	• Description of how the geological interpretation was used to control the resource estimates.	spatial continuity of gold within all lodes and parameters used for the interpolation process. Variogram
	• Discussion of basis for using or not using grade cutting or capping. • The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.	model are cross-validated to ensure parameters are accurate. • Quantitative Kriging Neighbourhood analysis (QKNA) using goodness of fit statistics to optimize estimation parameters has
		been undertaken. Parameters
		optimised include block size, search
		parameters, number of samples
		(minimum and maximum) and
		block descritization.
		• Directional ranges have been
		determined from variogram
		modelling and are used to constrain
		the search distances used in block

Criteria	JORC Code explanation	Commentary
		interpolation, incorporating
		geologists’ interpretation of ore
		geometry and continuity.
		Estimation search strategies
		implemented have sought to ensure
		robust estimates while minimising
		conditional bias. Three search
		estimation runs are used with initial
		short-search runs extending the
		sample influence in later runs.
		• Block estimation has been
		completed within Datamine™
		Studio 3 Resource Modelling
		software. Three dimensional
		mineralisation wireframes were
		completed within Micromine™
		software and imported into
		Datamine™. These wireframes are
		used as hard boundaries for the
		interpolation.
		• Ordinary Kriging using a local
		dynamic anisotropy search is used
		for block grade estimates using
		uniquely coded 1m composite data
		for respective lodes.
		• All block estimates are based on
		interpolation into parent blocks.
		Parent block estimates are then
		assigned to sub-blocks. Mineral
		Resource estimation does not
		include any form of dilution.
		• Block model extends from local
		grid 4,780mE to 5,400mE,
		10,800mN to 12,700mN and
		vertical from800mRL to
		1,4000mRL.
		• Only gold was estimated.
		• No selective mining units were
		assumed in this estimate.
		• Standard model validation has been
		completed using visual and
		numerical methods and formal peer
		review sessions by key geology
		staff.
		• Mineral Resource Model has been
		validated visually against the input
		composite/raw drillhole data with
		sufficient spot checks carried out on
		a number of block estimates on
		sections and plans.
		• Easting, northing and elevation
		swath plots have been generated to
		check input composited assay
		means for block estimates within
		swath windows.
		• A comparison of block volume
		weighted mean versus the drillhole
		cell de-clustered meangrade of the

Criteria	JORC Code explanation	Commentary	Commentary
			composited data was undertaken.
		•	Efficiency models using block
			Kriging Efficiencies (KE) and
			Slope of Regression (ZZ) were used
			to quantitatively measure
			estimation quality to ensure the
			desired level of quality of
			estimation.
Moisture	• Whether the tonnages are estimated on a dry	•	Tonnages are estimated on a dry
	basis or with natural moisture, and the method		basis.
	of determination of the moisture content.
Cut-off parameters	• The basis of the adopted cut-off grade(s) or	•	The resource is not constrained by
	quality parameters applied.		economic cut off grades.
		•	The nominal 0.3g/t Au boundary
			applied to the mineralisation zone is
			based on analysis of the sample
			population and localgeology.
Mining factors or	• Assumptions made regarding possible mining	•	There are historic open pits at the
assumptions	methods, minimum mining dimensions and		Alpha and Delta deposits;
	internal (or, if applicable, external) mining	•	The Ben Hur deposit is being
	dilution. It is always necessary as part of the		considered by Stone as an open pit
	process of determining reasonable prospects		operation in the near future.
	for eventual economic extraction to consider	•	CSA has not received open pit
	potential mining methods, but the assumptions		design yet.
	made regarding mining methods and
	parameters when estimating Mineral
	Resources may not always be rigorous. Where
	this is the case, this should be reported with an
	explanation of the basis of the mining
	assumptions made.
Metallurgical factors	• The basis for assumptions or predictions	•	The qualitative assessment of
or assumptions	regarding metallurgical amenability. It is		sandstone and clay content of the
	always necessary as part of the process of		mineralised zones has been built
	determining reasonable prospects for eventual		into the model. Relative sandstone
	economic extraction to consider potential		and clay content affects the
	metallurgical methods, but the assumptions		processing of the ore.
	regarding metallurgical treatment processes	•	Assumptions are based on DFS
	and parameters made when reporting Mineral		metallurgical test work..
	Resources may not always be rigorous. Where
	this is the case, this should be reported with an
	explanation of the basis of the metallurgical
	assumptions made.
Environmen-tal	• Assumptions made regarding possible waste	•	The Alpha , Ben Hur and Delta
factors or	and process residue disposal options. It is		projects are designed with a fully
assumptions	always necessary as part of the process of		lined Tailings Storage Facility and
	determining reasonable prospects for eventual		it is planned that all sulphide
	economic extraction to consider the potential		material mined from the operation
	environmental impacts of the mining and		will be processed in the
	processing operation. While at this stage the		concentrator, eliminating any PAF
	determination of potential environmental		on the waste dumps.
	impacts, particularly for a greenfields project,	•
	may not always be well advanced, the status of
	early consideration of these potential
	environmental impacts should be reported.
	Where these aspects have not been considered
	this should be reported with an explanation of
	the environmental assumptions made.

Criteria	JORC Code explanation	Commentary	Commentary
Bulk density	• Whether assumed or determined. If assumed,	•	Most dry bulk density
	the basis for the assumptions. If determined,		determinations have come from
	the method used, whether wet or dry, the		samples of the diamond drill holes
	frequency of the measurements, the nature, size		over a range of RL’s.
	and representativeness of the samples.	•	They have been determined using
	• The bulk density for bulk material must have		industry standard methods of
	been measured by methods that adequately		dried/sealed weight of core or rock
	account for void spaces (vugs, porosity, etc),		sample in water versus the dry
	moisture and differences between rock and		weight in air.
	alteration zones within the deposit.	•
	• Discuss assumptions for bulk density estimates
	used in the evaluation process of the different
	materials.
Classification	• The basis for the classification of the Mineral	•	The Alpha, Ben Hur and Delta
	Resources into varying confidence categories.		Mineral Resources have been
	• Whether appropriate account has been taken		classified and reported in
	of all relevant factors (ie relative confidence in		accordance with The Australasian
	tonnage/grade estimations, reliability of input		Code for Reporting of Mineral
	data, confidence in continuity of geology and		Resources and Ore Reserves (JORC
	metal values, quality, quantity and distribution		Code 2012 Version). Resource
	of the data).		classification is based on
	• Whether the result appropriately reflects the		confidence in the geological
	Competent Person’s view of the deposit.		domaining, drill spacing and
			geostatistical measures.
		•	The initial classification process
			was based on an interpolation
			distance and minimum samples
			within the search ellipse. The main
			components are summarised as
			follows:
		•	Initial classification:
		-	The resource was classed as
			Inferred if the average weighted
			sample distance was greater than 50
			m.
		-	The resource was classed as
			Indicated if the average weighted
			sample distance was between 25 m
			and 50 m.
		-	Numbers of drill holes -< 2
		Indicated and Inferred resources
			downgraded one class.
		•	The initial classification was
			reviewed visually. Based on the
			initial classification, three solids
			rescat_ind and rescat_inf were
			created to define Measured,
			Indicated and Inferred resources.
			This defined resource categories
			based on a combination of data
			density and geological confidence.
		•
Audits or reviews	• The results of any audits or reviews of Mineral	•	The Mineral Resource and
	Resource estimates.		estimation procedures prepared by
			SKR have been reviewed by CSA.
		•	The process for geological
			modelling, estimation and reporting
			of Mineral Resources has been

Criteria	JORC Code explanation	Commentary
		subject to an independent, external
		review by CSA. CSA undertook a
		peer review during 5th – 6th
		January 2014 and found the process
		to be industry standard with minor
		recommendations as part of
		continuous improvement.
Discussion of	• Where appropriate a statement of the relative	• The Mineral Resources have been
relative accuracy/	accuracy and confidence level in the Mineral	reported in accordance with the
confidence	Resource estimate using an approach or	guidelines of the 2012 edition of the
	procedure deemed appropriate by the	Australasian Code for Reporting of
	Competent Person. For example, the	Exploration Results, Mineral
	application of statistical or geostatistical	Resources and Ore Reserves and
	procedures to quantify the relative accuracy of	reflects the relative accuracy of the
	the resource within stated confidence limits,	Mineral Resources estimates.
	or, if such an approach is not deemed	• The current Mineral Resource
	appropriate, a qualitative discussion of the	model represents a robust global
	factors that could affect the relative accuracy	estimate of the remaining, in-situ
	and confidence of the estimate.	gold mineralisation for the Alpha,
	• The statement should specify whether it relates	Ben Hur and Delta deposits.
	to global or local estimates, and, if local, state	• Existing operating reports of
	the relevant tonnages, which should be	achieved production verse estimate
	relevant to technical and economic evaluation.	is positive.
	Documentation should include assumptions	• It is recommended to use optimised
	made and the procedures used.	pit shells as a guide to create
	• These statements of relative accuracy and	drilling programmes that maximise
	confidence of the estimate should be compared	the conversion from lower category
	with production data, where available.	resources (Inferred to Indicated)
		and reduces mining risk attributed
		to data density and quality. Careful
		consideration of mining dilution is
		warranted given the tenor, style and
		orientation of the mineralised lodes.

**Section

4
Estimation
and
Reporting
of
Ore
Reserves
-­‐
–Not
Applicable**

(Criteria
listed
in
section
1,
and
where
relevant
in
sections
2
and
3,
also
apply
to
this section.)

Criteria JORC Code explanation Commentary