CADOUX LIMITED — Capital/Financing Update 2016

Nov 14, 2016

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15th November, 2016 ASX Release (ASX code: “FYI”)

Positive Assay Results Confirm Previous Drilling from Sino-Lao Potash Project, Laos

FYI Resources’ (the “Company” or “FYI”) is pleased to provide an update to the market on the recently completed twin drill hole at the Sino-Lao Potash Project in Laos, PDR.

Highlights of drill hole RZK-01A

• RZK-01A confirms potash intercepts reported for historical drill hole ZK-01 and validates the quality of historical data

• Significant potash interval of ~220m being from 208m–428m @ 10.9% K2O

• High-grade sylvinite mineralisation at the top of the potash interval (208–210m) @ 26.8% K2O

• Analysis indicates a predominant carnallitite mineralogy with multiple significant intercepts of greater than 12% K2O

• Negligible insolubles suggest good process mineralogy likely.

RZK-01A was the first drill hole undertaken by FYI on the Sino-Lao project since committing to transaction discussions and commencing project due diligence. The Company is continuing discussions with the owner of the Sino-Lao project with a view of entering into a joint venture (or other suitable transaction) with the project owner. The Company has no reason at this stage to believe that those discussions will not progress to a binding agreement but can give no assurance that the discussions will be successful.

The drill hole was in the first instance designed to verify the quality and quantity of mineralisation reported for the original drill hole ZK-01 and secondly to provide confidence in the historic drilling and other supporting data on the project.

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Core tray from RZK-01A containing Carnallitite

While the twin drill hole RZK-01A confirmed historical results, the Company is of the view that the thickness of mineralisation is not typical of mineralisation in the project area. The site of the drill hole was chosen because earlier work by the project owner indicated structural thickening of the mineralised horizon in this area due to salt doming. The average thickness of mineralisation across the project has not been confirmed by FYI and requires further drilling.

The laboratory analysis (Table 1) supports the previously reported downhole geophysics results on RZK-01A (ASX release 17 October 2016).

53 Canning Highway, VICTORIA PARK, WA 6100 Tel: +61 8 9361 3100 Fax: +61 8 9361 3184 Website: www.fyiresources.com.au ACN 061 289 218

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A review of the assay results has been completed by CSA Global in their role as independent technical advisors, whose Competent Person, Mark Pudovskis, visited the project site during the drilling program. For the purposes of standardised industry reporting, CSA converted the %K to K2O.

Summary

RZK-01A is located on the Natan Mining Area as illustrated in Figure 1 and the collar details tabulated below.

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Mining Area Drill hole Depth (m) Longitude Latitude Dip Azimuth
Natan RZK-01A 431.5 102.8289 18.2036 -90 0
WGS 84 datum
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Figure 1: RZK-01A location plan

Roland Hill, FYI’s managing director commented “ The drilling results are very encouraging, in particular the presence of sylvinite, which supports FYI’s views on the merits of the project by confirming the historical data. Future exploration will focus on targeting and delineating additional sylvinite and high-grade carnallitite mineralisation in the project area ”.

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Laboratory analysis results table

The results of RZK-01A’s laboratory analysis are summarised in the table below:

Sample ID	Depth from (m)	Depth to (m)	K2O %	Na %	Ca ppm	Mg %	Cl %	Insolubles %	Interpreted Mineralogy
67564	197.8	198.7	0.1	32.4	16011	0.03	49	12.05	halite/ anhydrite
67565	199.5	201.2	0.1	38.5	7266	0.02	58.8	0.06	halite
67566	201.2	202.2	0.1	39.7	5321	0.02	59.5	0.03	halite
67567	202.9	203.7	0.2	39.7	2794	0.03	60.1	0.24	halite
67568	203.7	205.0	0.2	39.4	3934	0.03	59.6	0.39	halite
67569	205.0	207.0	0.2	38.6	2725	0.04	58.9	1.28	halite
67570	207.0	208.0	7.0	34.5	2453	0.02	58	0.31	halite
67571	208.0	210.0	26.8	22.7	2192	0.03	55.5	0.25	sylvinite
67448	210.0	212.0	14.3	14.1	1294	4.59	45.5	0.17	carnallitite
67449	212.0	214.0	12.6	10.8	1379	6.42	43.2	0.03	carnallitite
67450	214.0	216.0	10.5	15.5	910	5.29	45.9	0.05	carnallitite
67451	216.0	218.0	8.8	19.8	948	4.39	47.5	0.31	carnallitite
67452	218.0	220.0	13.7	6.7	568	7.04	40.8	0.42	carnallitite
67453	220.0	222.0	13.0	8.5	565	6.59	43	0.54	carnallitite
67454	222.0	224.0	12.0	10.9	691	6.09	44.1	0.16	carnallitite
67455	224.0	226.0	10.2	15.3	1000	5.12	46.8	-0.01	carnallitite
67456	226.0	228.0	11.2	13.9	761	5.60	45.7	0.03	carnallitite
67457	228.0	230.0	11.3	13.7	742	5.80	45.7	0.1	carnallitite
67458	230.0	232.0	12.3	10.5	867	6.26	44.1	0.21	carnallitite
67459	232.0	234.0	8.4	20.7	1575	4.07	50.2	0.03	carnallitite
67460	234.0	236.0	11.4	13.3	744	5.76	45.5	0.08	carnallitite
67461	236.0	238.0	13.8	6.9	532	7.04	44.6	0.16	carnallitite
67462	238.0	240.0	10.2	15.3	832	5.11	46.8	0.1	carnallitite
67463	240.0	242.0	11.5	13.4	627	5.73	45.9	0.09	carnallitite
67464	242.0	244.0	11.5	13.5	681	5.66	47.3	0.12	carnallitite
67465	244.0	246.0	12.6	10.2	704	6.29	46.4	0.11	carnallitite
67466	246.0	248.0	15.1	5.1	519	7.63	41	0.38	carnallitite
67467	248.0	250.0	12.8	9.8	906	6.48	44.1	0.25	carnallitite
67469	250.0	252.0	8.5	18.5	2913	4.36	49.7	0.3	carnallitite
67470	252.0	254.0	7.9	20.3	2194	4.00	50.4	0.39	carnallitite
67471	254.0	256.0	10.0	15.6	1019	4.96	46.8	0.45	carnallitite
67472	256.0	258.0	12.1	11.1	1219	6.16	43.9	0.08	carnallitite
67473	258.0	260.0	13.5	7.4	967	6.88	42.5	-0.01	carnallitite
67474	260.0	262.0	11.7	12.9	1371	5.88	45.7	-0.01	carnallitite
67475	262.0	264.0	13.6	7.7	481	6.85	42.8	-0.01	carnallitite
67476	264.0	266.0	12.9	8.7	674	6.55	43.9	-0.01	carnallitite
67477	266.0	268.0	13.2	9.5	868	6.56	43.2	-0.01	carnallitite
67478	268.0	270.0	15.2	5.1	717	7.69	40.3	-0.01	carnallitite
67479	270.0	272.0	8.9	18.4	673	4.31	48.4	0.02	carnallitite
67480	272.0	274.0	8.6	18.8	1961	4.23	48.8	0.25	carnallitite

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Sample ID	Depth from (m)	Depth to (m)	K2O %	Na %	Ca ppm	Mg %	Cl %	Insolubles %	Interpreted Mineralogy
67481	274.0	276.0	12.0	11.5	850	5.94	44.8	0.11	carnallitite
67482	276.0	278.0	13.4	9.2	666	6.63	43.6	0.15	carnallitite
67483	278.0	280.0	11.7	12.3	1236	5.70	45.2	0.04	carnallitite
67484	280.0	282.0	10.9	14.5	716	5.29	46.8	0.08	carnallitite
67485	282.0	284.0	12.0	13	787	5.83	47	0.13	carnallitite
67486	284.0	286.0	12.0	12.9	821	5.82	46.1	0.24	carnallitite
67487	286.0	288.0	8.6	20.7	1133	4.08	50.6	0.02	carnallitite
67488	288.0	290.0	12.7	11.8	702	6.21	46.8	-0.01	carnallitite
67490	290.0	292.0	14.1	8.1	730	6.90	42.9	-0.01	carnallitite
67491	292.0	294.0	14.5	6.8	532	7.16	42.9	6.51	carnallitite
67492	294.0	296.0	2.6	34.5	1024	1.15	60.8	0.05	carnallitite
67493	296.0	298.0	5.1	29.1	1045	2.20	51.9	0.02	carnallitite
67494	298.0	300.0	13.1	12.8	830	5.87	45.2	0.07	carnallitite
67495	300.0	302.0	8.1	22.1	1180	3.56	51.3	0.22	carnallitite
67496	302.0	304.0	9.4	19.8	1064	4.10	48.6	0.73	carnallitite
67497	304.0	306.0	12.2	15.1	782	5.28	47	0.23	carnallitite
67498	306.0	308.0	16.8	3.7	313	7.84	40.2	0.09	carnallitite
67499	308.0	310.0	6.6	25.9	923	2.72	51.7	0.83	carnallitite
67500	310.0	312.0	8.9	20.8	1015	3.81	49.5	0.93	carnallitite
67501	312.0	314.0	11.3	14.2	1076	5.49	46.8	0.5	carnallitite
67502	314.0	316.0	13.8	8.6	629	6.77	42.1	0.41	carnallitite
67503	316.0	318.0	9.0	19.4	1053	4.26	47.9	0.38	carnallitite
67504	318.0	320.0	15.6	4.9	324	7.54	39.9	0.17	carnallitite
67505	320.0	322.0	13.0	10.5	1005	6.26	42.8	0.4	carnallitite
67506	322.0	324.0	8.3	21.1	1564	3.82	49.4	0.13	carnallitite
67507	324.0	326.0	14.3	7.8	664	6.90	41.9	0.49	carnallitite
67508	326.0	328.0	14.6	7.3	537	7.10	42.3	0.18	carnallitite
67509	328.0	330.0	12.4	10.5	814	6.01	43.7	0.38	carnallitite
67511	330.0	332.0	12.3	13	729	5.88	45.2	0.53	carnallitite
67512	332.0	334.0	10.1	17.4	998	4.88	49.2	0.42	carnallitite
67513	334.0	336.0	8.1	21	913	3.90	49.9	0.12	carnallitite
67514	336.0	338.0	6.8	24.2	851	3.23	51.7	0.04	carnallitite
67515	338.0	340.0	7.2	24.7	1081	3.54	51.9	0.06	carnallitite
67516	340.0	342.0	9.2	17.5	1007	4.44	47.7	0.13	carnallitite
67517	342.0	344.0	4.0	30.1	1185	1.87	56.2	0.07	carnallitite
67518	344.0	346.0	7.9	20.9	1145	3.92	49.9	-0.01	carnallitite
67519	346.0	348.0	9.9	16.5	861	4.93	47.4	0.02	carnallitite
67520	348.0	350.0	5.5	27.2	870	2.61	53.9	0.08	carnallitite
67521	350.0	352.0	8.2	20.8	1008	3.97	51.5	0.05	carnallitite
67522	352.0	354.0	8.5	19.7	1346	4.19	52.1	0.06	carnallitite
67523	354.0	356.0	8.5	18.9	1422	4.15	49	0.2	carnallitite
67524	356.0	358.0	10.7	15.5	863	5.40	46.6	0.23	carnallitite
67525	358.0	360.0	8.8	18.8	872	4.21	48.3	0.11	carnallitite
67526	360.0	362.0	9.9	16.3	849	4.84	46.8	0.12	carnallitite

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Sample ID	Depth from (m)	Depth to (m)	K2O %	Na %	Ca ppm	Mg %	Cl %	Insolubles %	Interpreted Mineralogy
67527	362.0	364.0	11.4	11.6	744	5.63	47.9	0.09	carnallitite
67528	364.0	366.0	11.1	14.1	795	5.47	46.1	0.07	carnallitite
67529	366.0	368.0	12.5	10.1	601	6.14	43	1.63	carnallitite
67530	368.0	370.0	14.6	5.8	482	7.19	40.7	0.04	carnallitite
67532	370.0	372.0	11.3	12.3	769	5.65	45.4	0.1	carnallitite
67533	372.0	374.0	9.0	17.9	703	4.44	48.6	0.05	carnallitite
67534	374.0	376.0	8.5	20.7	1165	4.05	49.7	0.19	carnallitite
67535	376.0	378.0	12.1	12	753	5.95	44.6	0.13	carnallitite
67536	378.0	380.0	9.0	18.6	989	4.38	48.8	0.18	carnallitite
67537	380.0	382.0	8.5	20.6	809	4.09	49.2	0.07	carnallitite
67538	382.0	384.0	11.1	13.9	836	5.41	45.5	0.27	carnallitite
67539	384.0	386.0	9.6	18	886	4.83	47.7	0.29	carnallitite
67540	386.0	388.0	12.7	10.1	574	6.15	43.7	0.1	carnallitite
67541	388.0	390.0	11.7	11.8	762	5.76	44.8	0.1	carnallitite
67542	390.0	392.0	8.8	19.8	715	4.39	48.8	0.06	carnallitite
67543	392.0	394.0	8.0	20.6	759	3.85	49	0.52	carnallitite
67544	394.0	396.0	10.9	15.3	754	5.34	47	0.49	carnallitite
67545	396.0	398.0	11.0	14.4	819	5.38	46.6	0.3	carnallitite
67546	398.0	400.0	8.1	22.9	1296	3.98	51.2	0.29	carnallitite
67547	400.0	402.0	11.4	13.3	666	5.62	45.2	0.84	carnallitite
67548	402.0	404.0	11.9	13	779	5.81	45.5	0.13	carnallitite
67549	404.0	406.0	10.8	14.9	690	5.26	46.5	0.13	carnallitite
67550	406.0	408.0	3.9	31.1	1300	1.82	55.4	0.16	carnallitite
67551	408.0	410.0	8.9	19.7	992	4.30	52.8	0.08	carnallitite
67553	410.0	412.0	7.6	24.6	1113	3.64	51.2	0.22	carnallitite
67554	412.0	414.0	10.4	15.6	775	5.05	46.1	0.1	carnallitite
67555	414.0	416.0	10.2	17.8	935	4.94	47.4	0.24	carnallitite
67556	416.0	418.0	13.5	9.2	668	6.54	42.8	0.09	carnallitite
67557	418.0	420.0	10.6	16.8	1054	5.27	46.3	0.02	carnallitite
67558	420.0	422.0	13.5	9.4	600	6.56	42.3	-0.01	carnallitite
67559	422.0	424.0	10.4	16.9	922	4.85	46.8	-0.01	carnallitite
67560	424.0	426.0	13.5	9.7	345	6.56	44.3	-0.01	carnallitite
67561	426.0	428.0	11.1	15.1	694	5.33	45.7	0.03	carnallitite
67562	428.0	430.0	3.7	32.7	3490	1.23	55.7	-0.01	halite
67563	430.0	431.5	0.1	38.9	6397	0.04	58.8	-0.01	halite

*shaded orange block represents those potash intercepts of a minimum 4m thickness grading >12% K2O # Please note: Carnallitite is a rock type that includes the minerals carnallite and halite

Further Information:

Roland Hill

Managing Director Tel: +61 414666178

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About FYI Resources Limited

FYI is an ASX listed natural resources focused public company. The Company’s principal objective is the assembling of a quality portfolio of potash projects in Southeast Asia with the view to long term development and production.

FYI is targeting shallow, thick, high grade deposits typically associated with the geology of the basin regions in Thailand and Laos.

The FYI Board and the in-country management groups believe the targeted Thai and Laos project areas have the potential to host world class potash deposits.

The information in this report relates to the Exploration Result that has been compiled by Mr Mark Pudovskis B.Sc., who is an employee of CSA Global. He is a member of the Australasian Institute of Mining and Metallurgy. He has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and to the activity to which he is undertaking 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”. Mark Pudovskis consents to the inclusion in the public release of the matters based on his information in the form and context in which it appears.

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Sino-Lao Project Exploration Result: JORC Code (2012 Edition) Table 1

Section 1 Sampling Techniques and Data

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

	Criteria	JORC Code explanation	JORC Code explanation	Commentary
	Sampling		Nature and quality of sampling (e.g. cut channels, random chips, or	RZK-01A was sampled using diamond drilling to obtain approximately
	techniques		specific specialised industry standard measurement tools	2m long HQ3 core samples from which the 4-5kg was prepared from a
			appropriate to the minerals under investigation, such as down hole	¼ cut to produce a 200g sample for analysis. No samples were greater
			gamma sondes, or handheld XRF instruments, etc.). These	than 2m in length.
			examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement	Drill samples for analysis were packed in double plastic bags, labelled and placed in a poly weave bag then into an airtight drum for transfer to the Vientiane airport in preparation for airfreight to Perth, Australia.
			tools or systems used.	The sample techniques adopted by FYI are appropriate for reporting an
			Aspects of the determination of mineralisation that are Material to	Exploration Result.
			the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to	Potash is a bulk commodity and does not exhibit sampling issues as such a nuggety gold deposit may be exposed 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
			(e.g. submarine nodules) may warrant disclosure of detailed
			information.
	Drilling		Drill type (e.g. core, reverse circulation, open-hole hammer, rotary	Drilling was completed in June – July 2016 by using a track mounted
	techniques		air blast, auger, Bangka, sonic, etc.) and details (e.g. core	Hanjin Power 7000SD drill rig. Drilling and core capture was via the
			diameter, triple or standard tube, depth of diamond tails, face-	diamond triple tube method which is appropriate for an Exploration
			sampling bit or other type, whether core is oriented and if so, by	Result.
			what method, etc.).	Core was not orientated. This practice is acceptable for the potash
				industry as any meaningful structures to the deposit are determined by
				interpretation of seismic data. Small-scale structures observed in drill
				core may be a localised phenomena including halokinetic deformation
				or dissolution / collapse which may not be indicative of the wider
				deposit.

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• Drill sample  Method of recording and assessing core and chip sample recoveries recovery and results assessed.

• Measures taken to maximise sample recovery and ensure 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.

The FYI core recovery and sampling practices were observed by CSA Global and found to be adequate for reporting in accordance with the JORC Code (2012 Edition). Procedures are summarised:

• Core was retrieved from a 1.5m barrel.

• Core was measured on the drillers’ slips by the drillers and balanced against the drill rod depths.

• Core was moved to the site geologists’ logging facility and laid into the plastic core trays by the drilling offsiders.

• Geologists re-measured the drill run, recovery and RQD. Any differences to the drillers’ measurements were addressed immediately.

The core recovery across the sampled evaporite sequence (208 - 431.5m) averaged 96%, which is acceptable for reporting an Exploration Result.

Drilling fluid was a tri-salt solution saturated in KCl, MgCl and NaCl. The mixture resulted from a trial and error method with the carnallitite and halite sourced from the Thongmang processing facility. Coring in the evaporite section of RZK01 showed no evidence of dissolution which could have contributed to grade bias during analysis.

Logging		Whether core and chip samples have been geologically and	RZK-01A was logged across the entire evaporite sequence in adequate
		geotechnically logged to a level of detail to support appropriate	detail for an Exploration Result, and to support any future Mineral
		Mineral Resource estimation, mining studies and metallurgical	Resource estimation. The logging method was predominantly
		studies.	quantitative with some qualitative measures to capture any observed
		Whether logging is qualitative or quantitative in nature. Core (or	nuances.
		costean, channel, etc.) photography. The total length and percentage of the relevant intersections logged.	All core was photographed which provided a QA QC verification against the received assay results.
			The logging and core photography procedure was observed onsite by
			CSA Global and is considered adequate for an Exploration Result.
Sub-		If core, whether cut or sawn and whether quarter, half or all core	Sampling of the evaporite was by a diamond core saw with ¼ core dry
sampling		taken.	cut for sampling purposes. Samples were typically 2m, varying only
techniques		If non-core, whether riffled, tube sampled, rotary split, etc. and	when logical geological contacts dictated.
and sample preparation		whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique.	These techniques are appropriate for an Exploration Result and considered representative for the style of mineralisation.
		Quality control procedures adopted for all sub-sampling stages to

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• maximise representivity of samples.

• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

• Whether sample sizes are appropriate to the grain size of the material being sampled.

• Quality of  The nature, quality and appropriateness of the assaying and assay data laboratory procedures used and whether the technique is and considered partial or total. laboratory  For geophysical tools, spectrometers, handheld XRF instruments, tests etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

• Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.

Every 20th sample, a duplicate ¼ core sample, was collected for QA QC purposes.

The original ~4-5kg sample was prepared at IMO (Metallurgy Pty Ltd) Welshpool, Perth by dry crushing (~10mm), pulverising (~80% passing 75 micron) and homogenising to a 200g sample for analysis at Intertek Genalysis Laboratory Services, Welshpool, Perth, Australia.

Analysis was for six elements: Ca, Cl, Insol, K, Mg and Na. Methods comprised:

Water Extraction to determine soluble species in Salt (NaCl). Analysed by Gravimetric Technique. (Insol)

Water Extraction to determine soluble species in Salt (NaCl). Analysed by Inductively Coupled Plasma Optical (Atomic) Emission Spectrometry. (Ca, K, Mg, Na)

Water Extraction to determine soluble species in Salt (NaCl). Analysed by Volumetric Technique. (Cl)

These methods are suitable for the soluble analysis of potash samples.

The laboratory applied appropriate quantities of checks, internal blanks and standards.

FYI submitted internal duplicates and blanks for QA QC purposes which were deemed appropriate for reporting an Exploration Result.

There is insufficient QA QC data results received at present to draw any meaningful conclusions as to level of accuracy and precision.

FYI have not audited Intertek Genalysis Laboratory Services.

No handheld XRF has been collected which could be used as a quality check against the laboratory analyses.

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Verification		The verification of significant intersections by either independent or	The significant intersections of RZK -01A were reviewed by CSA Global
of sampling		alternative company personnel.	and verified against the downhole Natural Gamma and core
and		The use of twinned holes.	photography. On final check against the logged geology, no concerns
assaying		Documentation of primary data, data entry procedures, data	were raised or inconsistencies noticed.
		verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data.	RZK-01A has not been twinned.
			The geological and assay data is stored on a local FYI server.
			The assay data is raw and has not been adjusted.
Location of		Accuracy and quality of surveys used to locate drill holes (collar and	The location of RZK-01A was captured by a hand held GPS in WGS84
data points		down-hole surveys), trenches, mine workings and other locations	UTM 48N projection and in a Geographic WGS84 datum. This method
		used in Mineral Resource estimation.	is appropriate for an Exploration Result.
	 	Specification of the grid system used. Quality and adequacy of topographic control.	RZK-01A was drilled vertically and the inclination measured from the downhole tri-sonde. The inclination measured revealed a deviation
			from vertical of approximately less than 2 degrees across the entire
			431.5m length of the drillhole which is appropriate for an Exploration
			Result.
			There is no survey control confirming the RL however the Project’s
			terrain is relatively flat, typical of an evaporite basin.
Data		Data spacing for reporting of Exploration Results.	The Exploration Result for RZK-01A is based upon approximately 2m
spacing and		Whether the data spacing and distribution is sufficient to establish	vertical depth sampling points from 197.8m to 431.5m (EOH). The
distribution		the degree of geological and grade continuity appropriate for the	depth from 0 – 197.8m represents the overlying mudstone and was
		Mineral Resource and Ore Reserve estimation procedure(s) and	not sampled as it is not relevant to the Exploration Result.
		classifications applied.
		Whether sample compositing has been applied.	The samples have not been composited and are adequate for the
			reporting of an Exploration Result.
Orientation		Whether the orientation of sampling achieves unbiased sampling of	No structural information was collected from the core samples. The
of data in		possible structures and the extent to which this is known,	core, supported by the photography, revealed a relatively massive
relation to		considering the deposit type.	carnallitite mineralogy throughout the length of the evaporite
geological		If the relationship between the drilling orientation and the	sequence.
structure		orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	The structural data material to potash is seismic. Collection of seismic data enables the interpretation of larger scale structures which may present a meaningful bearing on any future Mineral Resource
			estimation.
			At this stage no seismic data has been collected which is acceptable
			for an Exploration Result.

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Sample  The measures taken to ensure sample security. security Audits or  The results of any audits or reviews of sampling techniques and reviews data.

The samples were sealed in plastic and locked in an air-conditioned room at the Thongmang facility prior to transportation for analysis in Australia. Samples for analysis were securely packaged and tracked during transportation. FYI verified the safe arrival of the samples in the Perth sample preparation facility.

No audit or review of the Exploration Results has been completed.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	JORC Code explanation	Commentary
Mineral		Type, reference name/number, location and ownership including	The Mining Areas – Natan and Thongmang, illustrated in figure 1 (total
tenement and		agreements or material issues with third parties such as joint	76km2) are owned by Yuntianhua. The ownership structure is:
land tenure status		ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	 72% - Sino Lao Mining Development and Investment Co Ltd (Sino Lao) - site owners and operators.  Of the remaining 28% equity, Yunnan Geological Mineral Group (YGMG) own 8%, the remaining 20% is owned by six other parties. YGMG was awarded equity based on completing the 2001-2003 technical drill program.
			Evidence of the licence of title is the document “An Exploitation and
			Production Agreement for Potash Mineral in Vientiane Basin, LAO
			People’s Democratic Republic between The Government of LAO
			People’s Democratic Republic and Yunnan Sino Lao Mining
			Development & Investment Co., LTD, People’s Republic China (Sino
			Lao), dated November 2004”
			The Agreement describes a three phase program - Feasibility Study
			Period (36 months), Construction Period (36 moths), Operating Period
			(24 years) which can be prolonged two times and per time is equal to
			10 years under the approval of the Government.
			The Agreement has not been independently verified.
			There are no known impediments or issues with third parties such as
			joint ventures, royalties, native title, national parks or environment.
			FYI have signed a memorandum of understating with YTH to
			undertake due diligence work on the Sino Lao project.

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Exploration		Acknowledgment and appraisal of exploration by other parties.
done by other parties

e exploration history is summarised as:	e exploration history is summarised as:
	2001– 2003: Yuntianhua exploration
	o Five cored boreholes on Thong mang (logs received for only
	three boreholes, total 1222.45m)
	o Seven cored boreholes on Natan. (logs received for only six
	boreholes, total 3235.45m)
	o Detailed geochemical analysis of all evaporite samples and
	downhole deviation measurements of each borehole. There
	was no seismic completed.
	o Completed a foreign estimate however it does not meet
	JORC standards and is therefore not suitable for public
	release.
	2011 – 2013: Yuntianhua mine and Pilot plant
	o 2 x shafts – Primary ventilation and haulage of
	approximately 2m diameter, secondary auxiliary (less than
	2m diameter)
	o Two x drives, one at 143m and a second at 190m. Levels
	were selected on grade and geology.
	o Two x drives are 3m in height.
	o Trial mining was completed over a 2.5-year period, 2011 -
	2013 with approximately 35,000t of K2O product produced.
	o Shaft capacity is 120,000t/annum, plant capacity
	60,000t/annum.
	2016 – Present: FYI
	o Eight underground grab samples
	o Two x PSI Drilling core boreholes (adjacent to ZK1) – assays
	not available at present.
	o Digital capture of historic borehole data into an Access
	Database
	o Generation of ArcGIS borehole location plans
There is anecdotal evidence of earlier (pre- 2000) drilling by
Vietnamese companies however no supporting evidence is
available.

The exploration history is summarised as:
 2001– 2003: Yuntianhua exploration

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Geology		Deposit type, geological setting and style of mineralisation.	The Project is a potash (carnallitite-dominant) deposit located in	the
			Sakon Nakhon Basin. As described by Warren, J. (2006). Evaporites:
			sediments, resources and hydrocarbons. Berlin, Germany:
			Springer.“Potash in the halite-dominated Cretaceous Maha Sarakham
			Formation is preserved within two basins, the northern Sakon Nakhon
			Basin which extends in to Laos and the southern Khorat Basin”.
			As further asserted by Warren, J. (2006). Evaporites: sediments,
			resources and hydrocarbons. Berlin, Germany: Springer. “The only
			well studied and significant potash-rich zones are in the upper section
			of the Lower Salt Member along the western margin of the Khorat
			Plateau. The potash interval is dominated by carnallitite (up to 20-30m
			thick), which forms a widespread stratiform unit along the western
			margins of both the Khorat and Sakon Nakhon basins. It is locally
			capped by lesser sylvinite (<6m) and covered by a bed of colour
			banded red and grey halite (up to 6m thick). The potash stratigraphy
			is in turn overlain by the Lower Clastic Member.”
			The stratigraphy of the Lower Salt Member is summarised after
			Warren, J. (2006):
			 Upper-most colour banded Halite (0-6m)
			 Sylvinite zone (0-6m) - Not always present and the contact is
			transitional to the underlying carnallitite
			 Carnallitite zone (0 up to 15-30m)
			 Lower zone of massive to bedded halite with trace carnallitite
			(50-300m)
Drill hole		A summary of all information material to the understanding of the	The Exploration Results are based on 119 ¼ core samples from a
Information		exploration results including a tabulation of the following	single drill hole RZK-01A.
		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	RZK-01A is located on the Natan Mining Area as illustrated in figure 1 and the collar details tabulated below.
		metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth	Drill hole Depth (m) Longitude Latitude Dip _Azimuth _
		o hole length.	RZK-01A 431.5 102.8289 18.2036 -90 0
		If the exclusion of this information is justified on the basis that the	WGS 84 datum
		information is not Material and this exclusion does not detract from
		the understanding of the report, the Competent Person should	There is no survey control confirming the RL however the Project’s
		clearly explain why this is the case.	terrain is relatively flat, typical of an evaporite basin.

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Data		In reporting Exploration Results, weighting averaging techniques,	None of the data collected was aggregated.
aggregation methods		maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be	The reported grades are raw.
		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	The downhole core sample points were collected on approximate 2m
between		Exploration Results.	intervals from a single drill hole across the entire thickness of the
mineralisation		If the geometry of the mineralisation with respect to the drill hole	potash sequence (208m – 428m). The geometry of the mineralisation
widths and		angle is known, its nature should be reported.	and spatial distribution of the sample data with respect to
intercept		If it is not known and only the down hole lengths are reported,	thicknesses is not known. Future seismic data will assist in
lengths		there should be a clear statement to this effect (e.g. ‘down hole	establishing the geometry of the mineralisation.
		length, true width not known’).
Diagrams		Appropriate maps and sections (with scales) and tabulations of	A drill hole location plan is included below in figures 1 and is included
		intercepts should be included for any significant discovery being	within the body of ASX release.
		reported These should include, but not be limited to a plan view of
		_drill hole collar locations and appropriate sectional views. _
Balanced		Where comprehensive reporting of all Exploration Results is not	All Exploration Results are reported as a grade for each sample and
reporting		practicable, representative reporting of both low and high grades	included below as Table 2. They are also within the body of the ASX
		and/or widths should be practiced to avoid misleading reporting of	release.
		Exploration Results.
Other		Other exploration data, if meaningful and material, should be	FYI Resources have previously reported to the ASX as an Exploration
substantive		reported including (but not limited to): geological observations;	Result the down hole Natural Gamma log of RZK-01A. The Gamma
exploration		geophysical survey results; geochemical survey results; bulk	log response supports the drilling analysis with the higher grades of
data		samples – size and method of treatment; metallurgical test results;	K2O collating to the higher Natural Gamma responses. Also the
		bulk density, groundwater, geotechnical and rock characteristics;	Natural Gamma results of RZK-01A are not material to the overall
		potential deleterious or contaminating substances.	project, the use of downhole geophysics in conjunction with logging
			and future seismic work is integral to potash exploration.

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• Further work  The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out 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.

• Significant in-ground work comprising 2D (and potentially 3D) seismic data, drilling and downhole wireline logging is required to establish any future JORC compliant Mineral Resources

Prior to undertaking additional drilling, it is recommended to complete a 2D seismic program in order to evaluate the sub-surface geology, identify areas of structural discontinuity (specifically salt diapers and their margins which are prone to host sylvinite after carnallitite) to enable appropriate exploration borehole planning.

Approximately 8 – 10 boreholes, spaced 2km apart over each Mining Area. On the assumption of an average drill depth of 400m, a total meterage of 3200m – 4000m on each Mining Area will be required. This volume of drilling will be sufficient to define a Mineral Resources assuming all related JORC Table 1 guidelines are adequately adhered to.

Wireline logging is integral to any potash exploration program whether to aid geological logging/interpretation or integrated with seismic data to enhance robust basinal interpretation. VSP (Velocity) survey and logs (sonic and density) are required to generate a synthetic seismogram with density and gamma logs providing a means of assessing mineralogy.

Each drill hole is recommended to be logged from the end of hole depth to surface casing with geophysical wireline tools. The data collected will provide detailed downhole information that can be used to crossreference lithology, mineralogy, and geochemical assay data. Gamma and density should be considered mandatory. Neutron is useful for assisting identifying the hygroscopic evaporites.

To progress to a JORC Mineral Resource classification the following guideline is suggested:

• Inferred Resource: Area within 2 km of a drill hole with geochemical analyses with 2D seismics but without 3D seismic coverage.

• Indicated Resource: Area within 2 km of a drill hole with geochemical analyses with 3D seismic coverage.

• Measured Resource: Area within 2 km of a drill hole with geochemical analyses displaying strong spatial analysis and with 3D seismic coverage.