CADOUX LIMITED — Capital/Financing Update 2016

Oct 6, 2016

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7 October 2016

ASX Release (ASX code: “FYI”)

FYI Furthers Due Diligence with Positive Exploration Results from Underground Potash Project Review

FYI Resources Limited (FYI) is pleased to update the market on progress of the due diligence review on the Sino-Lao Potash project in Laos, currently majority-owned by Yuntianhua Group (“YTH”), China.

The Sino-Lao project has successfully completed trial production studies, and FYI are negotiating a Joint Venture with YTH to take the project to commercial production.

YTH have invested approximately US$180m into the project to date. The largest part of this investment is into asset infrastructure, including underground mine development, and surface processing facilities.

FYI’s due diligence review of the underground and supporting facilities is therefore an integral component in the Sino-Lao potash project assessment.

FYI’s technical review team undertook a detailed mine inspection and supporting sampling program of the 190 level (364RL) development and production drives of the Sino-Lao project.

Highlights

• Substantial infrastructure already established.

• Assays indicating a carnallitite mineralogy.

• Comparable due diligence grades to those reported by YTH.

• Low insolubles

Purpose of Underground Review

The review of the underground facilities and sampling program provides FYI with an ideal qualitative and quantitative technical due diligence reference point in respect to providing:

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Thong Mang Potash Mine - underground access and development drives

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Thong Mang Potash Mine - underground production drive and conveyor belt

• validation of the potash mineralisation (extent and grade);

• demonstrable evidence of previous operation and inputs for future mine design;

• confidence in supporting reference points and data inputs for the deposit and FYI’s exploration model that is currently being determined; and,

• sufficient bulk sample material for metallurgical test work and process design (of which studies are to begin shortly).

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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Underground Review

The FYI review team appraised the winder room, the main, auxiliary and ventilation shafts, the main haulage lifts, the mine services at 400 level (pumps, electrics, switching gear), the production and development drives, the conveyors, ventilation, and other equipment.

- Plan map of Sino Lao Potash Project Location

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Underground Sampling

Eight samples were collected for due diligence purposes from the wall and floor of the 190 Level (364RL) of the Sino-Lao potash project over an area of approximately 800m[2] by the due diligence team (see sample locations on mine map below).

The samples were gathered for two distinct purposes:

1. Due diligence

Samples 071901, 903,904,905,907 and 908 were collected approximately 400m from the Main shaft along the Eastern access drive and start of the production drives. Each sample was a 5kg grab sample, comprising representative fresh material which was randomly collected by geo-pick and chisel. The material was composited over an approximate 1m[2] area from the production walls and faces designed to test the previous reported production grade.

Samples 071902 and 071906 were collected randomly by geo-pick and chisel as 5kg grab samples (each composited over an approximate 1m[2] area) from the corner of the floor and walls of the test points as loosely fallen or non-fresh material to test the effect of various salt dissolution.

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2. Metallurgical studies

• An aggregated bulk sample (120kg) was collected from the same sample points to provide material for:

• a) Back testing of the existing flow sheet and process design.

• b) Future test work for possible improvements in process design and metallurgical recovery.

The grab samples are indicative of the style of potash mineralisation at that underground location and not necessarily representative of the entire Thong mang Mining Area.

The samples, sealed in plastic and secured in airtight drums, were sent to Metallurgy Pty Ltd in Perth, Australia for sample preparation, where the analysis samples were homogenised, then reduced from 5kg to 200g and sent to Intertek in Perth for analysis. 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)

The bulk residues will be aggregated and used in addition for the metallurgical studies which are currently being undertaken.

The results for the underground sampling analysis are provided below.

Sino-Lao Underground Samples 190Level (364RL)

Sample	Na	K	Ca	Mg	Cl	Insoluble
ID	%	%	mg/Kg	%	%	%
071901	18.8	7.72	1727	4.28	48.4	0.03
071902	32.5	2.36	1319	1.29	56.1	0.04
071903	4.5	12.34	435	7.65	40.3	0.01
071904	14.8	12.20	195	4.67	46.7	0.01
071905	12.2	10.76	986	5.71	44.2	0.09
071906	36.0	1.31	1062	0.40	57.6	<0.01
071907	17.3	9.19	913	4.71	47.7	0.09
071908	7.2	13.55	822	6.81	42.2	0.11

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Three-dimensional view of the Sino-Lao UG development

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Plan view of the sample locations at 190 level Sino-Lao UG potash mine (see red insert in above diagram)

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Summary of Underground Review

The evaluation of the Sino-Lao underground potash project was designed with two specific purposes in mind:

• a) in support of the due diligence review; and,

• b) to assist future design studies (mining and processing).

FYI views the underground mine assessment and supplementary underground sample analysis as being consistent with our previous due diligence findings in being supportive for progressing the joint venture negotiations.

About the Sino-Lao Potash Project

As previously reported, the Sino-Lao project is a trial potash production facility with a reported annual capacity of 50,000t/yr (end product).

The facility is fully developed including surface processing facilities and underground mining development of both access and production headings.

FYI, in collaboration with YTH, are discussing the upscaling of the trial production to full scale commercial production of between 500,000–1,000,000t/yr (end product).

Further Information: Roland Hill

Managing Director Tel: +61 414666178

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 Australian 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.

FYI RESOURCES LTD

Sino Lao Potash Project Exploration Result Table 1

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Sino-Lao Project Exploration Result:

JORC Code (2012 Edition) Table 1

Section � Sampling Techniques and Data

(Criteriainthis	(Criteriainthis	sectionapply to allsucceeding sections.)	sectionapply to allsucceeding sections.)
	Criteria	JORC Code explanation		Commentary
	Sampling	•	Nature and quality of sampling (e.g. cut channels, random chips, or	Eight grab samples of 4-5kg were collected by hand for due diligence
	techniques		specific specialised industry standard measurement tools	purposes from the wall and floor of the 190 Level (364RL) of the
			appropriate to the minerals under investigation, such as down hole	Thong mang underground mine. The actual sample location was
			gamma sondes, or handheld XRF instruments, etc.). These	approximately 1m2 that was cleaned via the removal of the surface
			examples should not be taken as limiting the broad meaning of	material to expose a fresh surface and then each sample was
			sampling.	uniformaly sourced by equal amount of material over the square metre
		•	Include reference to measures taken to ensure sample	using geo-pick and cold chisel.
		•	representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report.	It is unknown how representative the sampled material is to the remainder of the underground mine or the entire Thong mang Mining Area.
		•	In cases where ‘industry standard’ work has been done this would	Samples for analysis were packed in double plastic bags, labelled and
			be relatively simple (e.g. ‘reverse circulation drilling was used to	placed in a poly weave bag then into an airtight drum for transfer to
			obtain 1 m samples from which 3 kg was pulverised to produce a	the Vientiane airport in preparation for airfreight to Perth, Australia.
			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	Samples were pulverised and homogenised to produce a 200g prepared sample for analysis.
			(e.g. submarine nodules) may warrant disclosure of detailed	There was no downhole geophysics assisting the sampling.
			information.
	Drilling	•	Drill type (e.g. core, reverse circulation, open-hole hammer, rotary	The Exploration Results relate only to grab sampling. Drilling was not
	techniques		air blast, auger, Bangka, sonic, etc.) and details (e.g. core	used.
			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 recoveries	The Exploration Results relate only to grab sampling. Drilling
	recovery		and results assessed.	discussion is not applicable.
		•	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.

CSA-Report Nº: xxx

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Sino Lao Potash Project Exploration Result Table 1

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Criteria	JORC Code explanation	JORC Code explanation	Commentary
Logging	•	Whether core and chip samples have been geologically and	The channel and grab samples were neither logged or photographed.
		geotechnically logged to a level of detail to support appropriate
		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-	•	If core, whether cut or sawn and whether quarter, half or all core	There was no sub-sampling or QA QC procedures adopted for the grab
sampling		taken.	sampling. The sampling was only for due diligence purposes and not
techniques	•	If non-core, whether riffled, tube sampled, rotary split, etc. and	as a material input for future Mineral Resource estimations.
and sample		whether sampled wet or dry.
preparation	•	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.
	•	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	Samples were prepared for at IMO (Metallurgy Pty Ltd) Welshpool,
assay data		laboratory procedures used and whether the technique is	Perth by crushing and homogenising the 5kg sample to a 200g sample
and		considered partial or total.	for analysis at Intertek Genalysis Laboratory Services, Welshpool,
laboratory	•	For geophysical tools, spectrometers, handheld XRF instruments,	Perth, Australia.
tests		etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.	Analysis was for six elements: Ca, Cl, Insol, K, Mg and Na. Methods comprised:
	•	Nature of quality control procedures adopted (e.g. standards,	Water Extraction to determine soluble species in Salt (NaCl). Analysed
		blanks, duplicates, external laboratory checks) and whether	by Gravimetric Technique. (Insol)
		acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	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

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Sino Lao Potash Project Exploration Result Table 1

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Criteria	JORC Code explanation	JORC Code explanation	Commentary
			and standards.
Verification	•	The verification of significant intersections by either independent or	Verification of grab sampling against the trial mining results was not
of sampling		alternative company personnel.	possible as the trial mining results have not been released.
and assaying	• •	The use of twinned holes. Documentation of primary data, data entry procedures, data	The assay data is stored on a local FYI server.
		verification, data storage (physical and electronic) protocols.	The assay data is raw and has not been adjusted.
	•	Discuss any adjustment to assay data.
Location of	•	Accuracy and quality of surveys used to locate drill holes (collar and	The sample points were not survey captured. Their approximate
data points		down-hole surveys), trenches, mine workings and other locations	positions, suitable for due diligence purposes, were determined from
		used in Mineral Resource estimation.	underground reference points – drives / cross on the 190 Level and
	•	Specification of the grid system used.	marked approximately on a schematic map of the underground drives.
	•	Quality and adequacy of topographic control.	These points were located approximately 400m west of the centre of
			the mine shaft. The Thong mang mine facility was surveyed with a
			handheld GPS and recorded in WGS84 UTM 48N coordinates. The
			location is 259505E 2017685N.
			There is no survey control confirming the RL of the 190 Level.
Data	•	Data spacing for reporting of Exploration Results.	The Exploration Result for Thong mang is based upon 8 sampling
spacing and	•	Whether the data spacing and distribution is sufficient to establish	points, spaced approximately 20 – 50m apart over an approximate
distribution		the degree of geological and grade continuity appropriate for the	area of 800m2 as illustrated below in figure 3.
		Mineral Resource and Ore Reserve estimation procedure(s) and
		classifications applied.	The spacing is insufficient for any input to a Mineral Resource
	•	Whether sample compositing has been applied.	estimation and is not a reflection on the overall mineralisation present
			on Thong mang.
Orientation	•	Whether the orientation of sampling achieves unbiased sampling of	No structural information was collected or was able to be collected
of data in		possible structures and the extent to which this is known,	from the samples. The walls of the underground potash mine were not
relation to		considering the deposit type.	structurally mapped however given that potash is subjected readily to
geological	•	If the relationship between the drilling orientation and the	halokinetic deformation and diapirism, any small scale structural
structure		orientation of key mineralised structures is considered to have	measurements will have no meaningful bearing on any future Mineral
		introduced a sampling bias, this should be assessed and reported if	Resource estimation.
		material.
Sample	•	The measures taken to ensure sample security.	The samples were sealed in plastic and locked in an air-conditioned
security			room at the Thong mang facility prior to transportation for analysis in
			Australia. Samples for analysis are securely packaged and tracked
			during transportation. FYI verified the safe arrival of the samples in
			the Perth sample preparation facility.

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Sino Lao Potash Project Exploration Result Table 1

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Criteria	JORC Code explanation	JORC Code explanation	Commentary
Audits or	•	The results of any audits or reviews of sampling techniques and	No audit or review of the exploration results has been completed.
reviews		data.

Section � Reporting of Exploration Results

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

• Criteria JORC Code explanation Mineral • Type, reference name/number, location and ownership including tenement and agreements or material issues with third parties such as joint land tenure ventures, partnerships, overriding royalties, native title interests, status 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.

Commentary

The Mining Areas – Natan and Thong mang, illustrated in figure 1 (total 76km[2] ) are owned by Yuntianhua. The ownership structure is:

• 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.

Exploration done by other	•	Acknowledgment and appraisal of exploration by other parties.	The exploration history is summarised as:
parties			• 2001– 2003: Yuntianhua exploration

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Sino Lao Potash Project Exploration Result Table 1

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				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.
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: _

CSA-Report Nº: xxx

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Sino Lao Potash Project Exploration Result Table 1

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Criteria	JORC Code explanation	JORC Code explanation	Commentary
			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 Khort 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 eight underground grab samples
Information		exploration results including a tabulation of the following	from an existing trial potash mine. Details relating to drill collars,
		information for all Material drill holes:	dips, azimuth, hole length are not relevant for such sampling
		o easting and northing of the drill hole collar	techniques.
		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	•	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. _

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Sino Lao Potash Project Exploration Result Table 1

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Criteria JORC Code explanation	Commentary	Commentary	Commentary	Commentary	Commentary	Commentary	Commentary
• 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.	A summary of the sample’s analytical results is included below in ‘Balanced Reporting’.
Relationship between mineralisation widths and intercept lengths • These relationships are particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).	Thong mang geometry is interpreted as relatively flat lying based on the distribution of historical assay reports. There is no seismic to support this interpretation. The eight sample points were collected over an area of aproximately 800m2. Given the Thong mang Mining Area is approximately 38km2, the spatial distribution of the sample data and any thickness relationship is not material for the nature of the deposit. No conclusions should be draw from the distribution of the potash sample grades.
Diagrams • Appropriate maps and sections (with 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. _	A project location plan with underground working schematic illustrating approximate sampling locations in included below in figures 1, 2 and 3, and is included within the body of ASX release.
Balanced reporting • Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	The Exploration Results are reported as a grade for each summary table is included below.						sample. The Insoluble % 0.03 0.04 0.01 0.01 0.09 <0.01 0.09 0.11
	Sample ID	Na	K	Ca	Mg	Cl	Insoluble
		%	%	mg/Kg	%	%	%
	071901	18.8	7.72	1727	4.28	48.4	0.03
	071902	32.5	2.36	1319	1.29	56.1	0.04
	071903	4.5	12.34	435	7.65	40.3	0.01
	071904	14.8	12.20	195	4.67	46.7	0.01
	071905	12.2	10.76	986	5.71	44.2	0.09
	071906	36.0	1.31	1062	0.40	57.6	<0.01
	071907	17.3	9.19	913	4.71	47.7	0.09
	071908	7.2	13.55	822	6.81	42.2	0.11

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Criteria	JORC Code explanation	JORC Code explanation	Commentary
Other	•	Other exploration data, if meaningful and material, should be	There has been no additional meaningful exploration completed with
substantive		reported including (but not limited to): geological observations;	tangible results available by FYI Resources which adds support to the
exploration		geophysical survey results; geochemical survey results; bulk	Exploration Result.
data		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 (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	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
		areas, provided this information is not commercially sensitive.	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 cross-
			reference 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:

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Sino Lao Potash Project Exploration Result Table 1

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Criteria	JORC Code explanation	Commentary	Commentary
		•	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.

CSA-Report Nº: xxx

12

FYI RESOURCES LTD

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Sino Lao Potash Project Exploration Result Table 1

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Figure 1: Project loca�on plan with Sino-Lao UG potash mine

FYI RESOURCES LTD

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Sino Lao Potash Project Exploration Result Table 1

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Main Shaft Auxiliary Shaft
190 Level
Ventilation Shaft
Production
Development
N
Mine Services
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Figure 2: Three dimensional view of the Sino-Lao UG development

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071901
071902
071907
071906
071904
071908
071903
~ 20m
071905
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Figure 3: Plan view of the sample loca�ons at 190 level Sino-Lao UG potash mine