CARNABY RESOURCES LIMITED — Capital/Financing Update 2020

Dec 13, 2020

==> picture [142 x 48] intentionally omitted <==

ASX Announcement 14 December 2020

EXPLORATION UPDATE:

Fast Facts

Shares on Issue 117.7M

FIRST AIRCORE DRILL RESULTS DEFINE

Market Cap (@ 41 cents) $48.3M Cash $8.6M[1 ]

1As of 30 October 2020

1 km x 300 m GOLD ANOMALY

Carnaby Resources Limited (ASX: CNB) ( Carnaby or the Company ) is pleased to provide an exploration update for the 100% owned Strelley and Tick Hill gold projects in the Mallina Basin, Pilbara and Mt Isa, Qld regions respectively.

Board and Management

Peter Bowler, Non-Exec Chairman Rob Watkins, Managing Director Greg Barrett, Non-Exec Director & Company Secretary

Paul Payne, Non-Exec Director

Highlights

• At the Strelley Project, in the Pilbara of WA, first drill results received from Aircore drilling at the Palisade Prospect have defined a 1 km long by up to 300 m wide gold in silcrete anomaly with results up to 0.4 g/t gold.

• The source of the gold anomaly at Palisade is yet to be determined and first pass deeper RC drill testing has just been completed with results awaited. Encouragingly, the gold anomaly is located on a major altered and sheared intrusion / sediment contact.

• At the Strelley Project, the first pass aircore drilling program of 372 holes (11,167m) and 26 RC holes (3,003m) have just been completed with results from a vast majority of the program awaited due to lengthy laboratory backlogs.

• At the Tick Hill Project, 11 RC holes (1,001m) and 1 diamond hole (566m) were completed late last week at Tick Hill North Wall and Tick Hill North targets respectively with all results yet to be received.

The Company’s Managing Director, Rob Watkins commented:

“We continue to be encouraged by the geological indicators at both Strelley and Tick Hill. The first pass drill programs are now complete as we await a vast majority of the drill results to come in. The delay in receiving assays due to the backlog at the laboratories will now result in further drilling programs commencing early in the new year once all results from the initial drilling program have been received.

Company Highlights

• Proven and highly credentialed management team

• Tight capital structure and strong cash position

• Commenced exploration at the Mallina Basin in the Pilbara of WA

• Projects near to De Grey’s Hemi gold discovery on 394 km[2] of highly prospective tenure

• 100% ownership of the Tick Hill Gold Project (granted ML’s) in Qld, historically one of Australia highest grade and most profitable gold mines

• Past production of 511 koz at 22 g/t gold

• Indicated and Inferred Mineral Resource of 845,000 t @ 2.47 g/t gold for 67,100 ounces[2]

• Proven and Probable Ore Reserves of 459,900 t @ 1.89 g/t gold for 28,000 ounces[2]

• 323 km[2] surrounding exploration package containing numerous gold and copper targets

• 2Refer ASX release 5 June 2020, to be adjusted following Tailings Sale & NSR Royalty Agreement, refer ASX release 3 August 2020

Registered Office

78 Churchill Avenue Subiaco Western Australia 6008

T: +61 8 9320 2320

www.carnabyresources.com.au

==> picture [596 x 11] intentionally omitted <==

==> picture [596 x 8] intentionally omitted <==

1

STRELLEY PROJECT (Carnaby 100%)

First pass aircore and RC drilling programs have just been completed at Strelley with results pending for a vast majority of the drilling (Figure 1). At total of 372 aircore holes for 11,167m have been completed on a nominal 640 m x 80 m spacing. The aircore drilling was designed to scope out the regional geochemical and geological footprint, targeting the prospective corridor along the confluence of the Berghaus and Tabba Tabba Shear Zones and the Gibraltar / Stockade mafic hosted sheared corridor (Figure 1).

The average depth of holes across the program was 30 m with transported cover averaging approximately 15m. At this extremely wide hole spacing and shallow depth of hole, the aircore drilling program is designed to target secondary gold anomalism and define broad geochemical tends for future follow up infill drilling.

==> picture [476 x 401] intentionally omitted <==

Figure 1 Strelley project map on aeromagnetics showing location of recently completed aircore drill holes. Results pending are white holes.

==> picture [595 x 11] intentionally omitted <==

==> picture [595 x 11] intentionally omitted <==

2

Palisade Target

First drill results received from the aircore drilling at Palisade has defined a ~1 km long by up to 300 m wide gold in silcrete anomaly located at the interface between the transported cover and underlying bedrock (Figure 2 & 3). Aircore drilling over the central Palisade area was completed on a 320 m x 40 m spacing and further afield at 320 m x 80 m spacing.

The aircore drill results of up to 0.4 g/t gold hosted in silcrete represent a secondary dispersion gold anomaly from a yet to be identified primary source. The source of the silcrete hosted gold anomaly is likely to be from locally derived underlying gold mineralisation in the bedrock which is yet to be intersected in the aircore drilling.

Encouraging alteration of intense silica-chlorite-sericite+-disseminated pyrite coincident with extensive shearing of a large intrusion in contact with sedimentary and mafic schists is an encouraging geological target setting (Figure 3). On a regional scale the Palisade anomaly is favourably located at the confluence of the Berghaus and Tabba Tabba Shears Zones both of which are considered to be fertile structures.

Firs pass RC drilling of Palisade has been completed with results pending. Full details of the RC drilling will be provided once assay results have been received.

==> picture [369 x 338] intentionally omitted <==

Figure 2 Palisade location plan showing new aircore drill results and large 1 km x 300 m gold in silcrete anomaly.

==> picture [595 x 11] intentionally omitted <==

==> picture [595 x 11] intentionally omitted <==

3

==> picture [451 x 305] intentionally omitted <==

Figure 3: Palisade drill section showing 300 m wide silcrete hosted gold anomaly.

TICK HILL PROJECT (Carnaby 100%)

Drilling has just been completed at Tick Hill targeting the Tick Hill North and Tick Hill North Pit Wall targets (Figure 4). Samples are being prepared and sent to a laboratory for analysis.

At Tick Hill North a single diamond hole was drilled to 566 m targeting approximately 150 m beneath the lodestone horizon intersected in the last exploration hole drilled at Tick Hill at the end of 2019. The new drill hole CBD028, intersected the mine corridor sequence approximately 40 m north of the planned target pierce point. The hole intersected both hangingwall and footwall quartzites separated by altered lodestone equivalent quartz-biotite granofels. The core has been logged and is in process of being cut, sampled, and submitted for analysis.

At Tick Hill North Pit Wall target a total of 11 RC holes for 1,001 m were drilled to test the very high-grade extension of the main lode into the lower north wall of the historical 70 m deep open pit. All holes drilled were completed to plan depth intersecting variable thickness of lodestone and laminite ore host horizons.

Full details of the Tick Hill drilling will be provided once assay results are received.

==> picture [595 x 11] intentionally omitted <==

==> picture [595 x 11] intentionally omitted <==

4

==> picture [451 x 365] intentionally omitted <==

Figure 4: Tick Hill Longsection showing location of recently completed drilling at Tick Hill North and Tick Hill North Pit Wall target. Results are pending from all drilling.

Further information regarding the Company can be found on the Company’s website www.carnabyresources.com.au

For further information please contact: Robert Watkins, Managing Director +61 8 9320 2320

==> picture [595 x 11] intentionally omitted <==

==> picture [595 x 11] intentionally omitted <==

5

Table 1 Strelley Aircore Drill Results

Location	Hole ID	Easting	Northing	Azimuth	Dip	Depth From	Interval	Au (g/t)	Comments
Rumeli	PL0052	711478	7739039	330	60			NSI
Rumeli	PL0053	711441	7739106	330	60			NSI
Rumeli	PL0054	711402	7739181	330	60			NSI
Rumeli	PL0055	711360	7739244	330	60			NSI
Rumeli	PL0056	711323	7739318	330	60			NSI
Rumeli	PL0057	711287	7739386	330	60			NSI
Rumeli	PL0058	711237	7739460	330	60			NSI
Rumeli	PL0059	711205	7739525	330	60			NSI
Rumeli	PL0060	711158	7739592	330	60			NSI
Rumeli	PL0061	711988	7739428	330	60			NSI
Rumeli	PL0062	711959	7739503	330	60			NSI
Rumeli	PL0063	711910	7739569	330	60			NSI
Rumeli	PL0064	711873	7739634	330	60			NSI
Rumeli	PL0065	711839	7739707	330	60			NSI
Rumeli	PL0066	711792	7739778	330	60			NSI
Rumeli	PL0067	711872	7739637	330	60			NSI
Rumeli	PL0068	711714	7739913	330	60			NSI
Rumeli	PL0069	711681	7739976	330	60			NSI
Rumeli	PL0070	711638	7740048	330	60			NSI
Rumeli	PL0071	711600	7740114	330	60			NSI
Rumeli	PL0081	712230	7740300	330	60			NSI
Rumeli	PL0082	712188	7740370	330	60			NSI
Rumeli	PL0083	712147	7740442	330	60			NSI
Rumeli	PL0084	712110	7740511	330	60			NSI
Gibraltar	PL0101	714882	7741470	330	60			NSI
Palisade	PL0154	713972	7741776	330	60			NSI
Palisade	PL0155	713934	7741838	330	60			NSI
Palisade	PL0156	713888	7741911	330	60			NSI
Palisade	PL0157	713852	7741979	330	60			NSI
Palisade	PL0158	713812	7742056	330	60			NSI
Palisade	PL0159	713771	7742119	330	60			NSI
Palisade	PL0160	713728	7742191	330	60			NSI
Palisade	PL0161	713689	7742258	330	60	17	3	0.023	composite
Palisade	PL0162	713657	7742326	330	60			NSI
Palisade	PL0163	713616	7742391	330	60			NSI
Palisade	PL0164	713580	7742458	330	60			NSI
Palisade	PL0167	713454	7742668	330	60			NSI
Palisade	PL0168	713416	7742737	330	60			NSI
Palisade	PL0169	713367	7742807	330	60			NSI

==> picture [595 x 11] intentionally omitted <==

==> picture [595 x 11] intentionally omitted <==

6

Location	Hole ID	Easting	Northing	Azimuth	Dip	Depth From	Interval	Au (g/t)	Comments
Palisade	PL0170	713328	7742877	330	60			NSI
Palisade	PL0171	714197	7742000	330	60			NSI
Palisade	PL0172	714161	7742069	330	60			NSI
Palisade	PL0173	714123	7742133	330	60			NSI
Palisade	PL0174	714084	7742201	330	60			NSI
Palisade	PL0175	714042	7742272	330	60			NSI
Palisade	PL0176	714003	7742344	330	60			NSI
Palisade	PL0177	713961	7742410	330	60	13	2	0.172
Palisade	PL0178	713924	7742480	330	60			NSI
Palisade	PL0179	713879	7742551	330	60			NSI
Palisade	PL0180	713846	7742615	330	60			NSI
Palisade	PL0181	713802	7742683	330	60	17	2	0.048
Palisade	PL0182	713765	7742757	330	60			NSI
Palisade	PL0183	713723	7742820	330	60			NSI
Palisade	PL0186	714448	7742233	330	60			NSI
Palisade	PL0187	714406	7742300	330	60			NSI
Palisade	PL0188	714354	7742366	330	60			NSI
Palisade	PL0189	714328	7742438	330	60	14	2	0.029
Palisade	PL0190	714286	7742515	330	60	14	2	0.161
Palisade	PL0191	714246	7742574	330	60	13	2	0.051
Palisade	PL0192	714210	7742653	330	60	16 17	1 3	0.262 0.045
Palisade	PL0193	714169	7742715	330	60			NSI
Palisade	PL0194	714131	7742782	330	60			NSI
Palisade	PL0195	714085	7742852	330	60			NSI
Palisade	PL0196	714049	7742917	330	60	17	1	0.023
Palisade	PL0197	714010	7742992	330	60			NSI
Palisade	PL0198	713962	7743062	330	60	49	50	0.021	bottom of hole
Palisade	PL0199	714760	7742321	330	60			NSI
Palisade	PL0200	714720	7742389	330	60	14	1	0.041
Palisade	PL0201	714684	7742460	330	60	10	5	0.089	composite
Palisade	PL0202	714642	7742525	330	60			NSI
Palisade	PL0203	714594	7742593	330	60	10	4	0.039	composite
Palisade	PL0204	714555	7742661	330	60	10	5	0.024	composite
Palisade	PL0205	714519	7742730	330	60	15 16	1 4	0.403 0.064	composite
Palisade	PL0206	714477	7742802	330	60			NSI
Palisade	PL0207	714438	7742871	330	60			NSI
Palisade	PL0208	714394	7742934	330	60			NSI
Palisade	PL0209	714357	7743006	330	60			NSI
Palisade	PL0210	714318	7743079	330	60			NSI
Palisade	PL0211	714276	7743149	330	60			NSI

==> picture [595 x 11] intentionally omitted <==

==> picture [595 x 11] intentionally omitted <==

7

Location	Hole ID	Easting	Northing	Azimuth	Dip	Depth From	Interval	Au (g/t)	Comments
Palisade	PL0212	714237	7743227	330	60			NSI
Palisade	PL0213	714200	7743278	330	60	10 25	6 1	0.051 0.026	composite
Palisade	PL0214	714161	7743357	330	60			NSI
Palisade	PL0217	714954	7742627	330	60			NSI
Palisade	PL0218	714918	7742686	330	60			NSI
Palisade	PL0219	714881	7742753	330	60			NSI
Palisade	PL0220	714848	7742836	330	60	13	2	0.144
Palisade	PL0221	714797	7742891	330	60			NSI
Palisade	PL0222	714768	7742947	330	60			NSI
Palisade	PL0223	714724	7743031	150	60			NSI
Palisade	PL0224	714679	7743098	150	60			NSI
Palisade	PL0225	714631	7743160	150	60			NSI
Palisade	PL0226	714595	7743231	150	60			NSI
Palisade	PL0241	715073	7743055	150	60			NSI
Palisade	PL0242	715034	7743126	150	60	16	1	0.133
Palisade	PL0243	714992	7743195	150	60			NSI
Palisade	PL0244	714955	7743259	150	60			NSI
Palisade	PL0245	714911	7743337	150	60			NSI
Palisade	PL0246	714878	7743401	150	60			NSI
Palisade	PL0247	714836	7743469	150	60			NSI
Palisade	PL0248	714798	7743535	150	60			NSI
Palisade	PL0249	714759	7743602	150	60			NSI
Palisade	PL0390	714062	7742239	330	60	14	1	0.043
Palisade	PL0391	714020	7742310	330	60	14	1	0.1
Palisade	PL0392	713984	7742378	330	60	14	1	0.232
Palisade	PL0393	713940	7742447	330	60			NSI
Palisade	PL0394	714344	7742401	330	60			NSI
Palisade	PL0395	714306	7742481	330	60	11 14 15	3 1 3	0.081 0.219 0.055	composite composite
Palisade	PL0396	714275	7742540	330	60	10	5	0.07	composite
Palisade	PL0397	714228	7742612	330	60	14	3	0.232
Palisade	PL0398	714615	7742561	330	60			NSI
Palisade	PL0399	714577	7742624	330	60	14	1	0.048
Palisade	PL0400	714540	7742690	330	60	10	15	0.073	composite
Palisade	PL0401	714668	7742484	150	60	10	6	0.023	composite

==> picture [595 x 11] intentionally omitted <==

==> picture [595 x 11] intentionally omitted <==

8

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections)

Criteria	JORC Code explanation	Commentary
Sampling techniques	• Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These 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 tools or systems used. • Aspects of the determination of mineralisation that are Material to 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 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.	• Strelley Aircore samples were collected using a cyclone with a 1-2kg scoop sub-sample taken from either individual metre intervals or over composite intervals of 2-10m. • Strelley RC samples were collected via an adjustable cone splitter mounted below the cyclone. A 2-3kg sample was collected from each 1m interval. Samples from aircore and RC were pulverised to obtain a 25g charge for aqua regia digest and ICP-MS analysis of Gold at trace level. The end of hole sample of every air core hole at Strelley was analysed for full-suite multi- elements using aqua regia digest and a ICP-MS finish at trace level in addition to gold. • Recent Tick Hill RC samples were collected via an adjustable cone splitter mounted below the cyclone. A 2-3kg sample was collected from each 1m interval. Samples were pulverised to obtain a 25g charge for aqua regia digest and ICP-MS analysis of Gold at ore grade level. • NQ sized half or quarter cut core samples from the diamond hole at Tick Hill are being analysed for trace level Gold using a 25g aqua regia digest and ICP-MS finish and trace level Copper, Cobalt and Silver using the same digest with an ICP-MS finish.
Drilling techniques	• Drill type (e.g. core, reverse circulation, open- hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	• Aircore drilling total 372 holes for 11,167m drilled by Bostech drilling.
Drill sample recovery	• Method of recording and assessing core and chip sample recoveries 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.	• For the diamond drilling both drilled and recovered metres were recorded for each drill run. • RC samples were dry and with high recoveries. The cone splitter was set to achieve an approximate 2-3 kg of sub sample for every metre drilled. • * Aircore samples were recovered dry and with consistent high sample recovery observed in the field.
Logging	• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral	• Logging was completed by geologists and is at a level sufficient to generate maps, plans and sections found in company reports. • All core and chips from the recent programme were logged with Maxgeo Logchief software.

==> picture [595 x 11] intentionally omitted <==

==> picture [595 x 11] intentionally omitted <==

9

Criteria	JORC Code explanation	Commentary
	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.	• Tick Hill core and RC chips were photographed.
Sub-sampling techniques and sample preparation	• If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • 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 beingsampled.	• NQ drill core was half cut with core from the non-marked side of the orientation line taken for analysis. The majority of intervals of half cut core were 1m. Where the core interval exceeded 1.6m, the core was quarter cut. The majority of quarter cut intervals were 2m in length. • For RC samples, all individual samples were collected using a cone splitter mounted beneath the cyclone to collect a 2-3kg sample. RC composite samples >1m were sampled using a 50mm spear/tube from inside the bulk green bag sample. The sample collect was dry. • The sample size collected is considered appropriate to the grain size of the material being sampled.
Quality of assay data and laboratory tests	• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, 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.	• RC drill samples from the Tick Hill Pit were analysed at ALS using a 25g aqua regia digest and an ICP-MS finish for ore grade level gold level. A blank sample was inserted at the start of each hole and 2 different Carnaby selected standards were used, alternating at every 25th sample. Diamond core at Tick Hill was analysed at ALS using a 25g aqua regia digest and an ICM-MS finish for trace level gold, silver, copper and cobalt. • Air core and RC samples from Strelley were analysed at ALS in Perth using a 25g aqua regia digest and an ICP-MS finish for trace level gold. Carnaby selected standards of various levels were inserted at approximately every 50th sample.
Verification of sampling and assaying	• The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss anyadjustment to assaydata.	• At the prospect scale the quality of the Strelley data is currently considered acceptable for exploration purposes. Further investigation and validation will be undertaken as work programs progress.
Location of data points	• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Qualityand adequacyof topographic control.	• Grid systems used for Strelley was MGA94/50. • Grid Systems used for Tick Hill was MGA94/54.
Data spacing and distribution	• Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s)and classifications applied.	• Reconnaissance aircore and RAB drilling was completed at 640m x 80m spacing, closed up to 320m x 40 m at Palisade.

==> picture [595 x 11] intentionally omitted <==

==> picture [595 x 11] intentionally omitted <==

10

Criteria	JORC Code explanation	Commentary
	• Whether sample compositing has been applied.
Orientation of data in relation to geological structure	• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	• The southern half of the project containing the Tabba Tabba Shear strikes approximately NNE and is considered to be well tested with EW drill and soil sample lines. In the northern half of the project where the Tabba Tabba Shear bends to a NE orientation coincident with a NE fault, the orientation of the historical soil sampling and drill traverses is considered to be at a non optimal orientation. • New drill lines at Strelley have been orientated perpendicular to the interpreted strike of the major shear zones to reduce any potential samplingbias of the zones beingreported.
Sample security	• The measures taken to ensure sample security.	• Drill samples for Strelley were dispatched by Carnaby staff directly to the transport company depot in Port Hedland for transport to ALS labs in Perth. • Drill samples from Tick Hill were taken directly to the Mt Isa ALS samplepreparation facilitybyCarnabyStaff.
Audits or reviews	• The results of any audits or reviews of samplingtechniques and data.	• No external audits or reviews have been undertaken of the recent samplingtechniques and data.

Section 2 Reporting of Exploration Results

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

Criteria	Explanation	Commentary
Mineral tenement and land tenure status	• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint 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 obtaininga licence to operate in the area.	• ELA45/5614 is an exploration licence application owned 100% by Carnaby Resources Ltd. • E45/4638 is a granted exploration license which is being transferred from Lithium Power WA Holdings Pty Ltd (LPWA) to Carnaby Resources Ltd as part of an agreement whereby LPWA’s parent, Lithium Power International Ltd retains certain mineral rights relating to Lithium minerals. Carnaby own 100% of the gold rights on the tenement. Heritage survey and plan of works have been completed on the tenement.
Acknowledgment and appraisal of exploration by otherparties.	• Acknowledgment and appraisal of exploration by other parties.	• Shaw River Manganese Limited completed the original gold exploration on the tenement delineating several gold anomalies in soils and drilling.
Geology	• Deposit type, geological setting and style of mineralisation.	• The Strelley project is located in the northern part of the Archean Pilbara Craton. The tenement is located within the Mallina basin group greenstone and intrusives on the district scale Tabba Tabba Shear zone which hosts significant gold mineralisation to the SW within De Greys Mining Ltd’s tenure. The recent discovery of the intrusion related Hemi gold discovery by De Grey Mining Ltd has generated significant new interest in the Mallina Basin. Within the Strelley project late intrusive rocks equivalent in age to the Hemi gold discovery are present. Gold mineralisation intersected in the Strelley project to date is associated with silicification andquartz veining.
Drill hole Information	• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: • eastingand northingof the drill hole collar	• Included in report. Refer to the report and Table 1.

==> picture [595 x 11] intentionally omitted <==

==> picture [595 x 11] intentionally omitted <==

11

Criteria	Explanation	Commentary
	• elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar • dip and azimuth of the hole • down hole length and interception depth • 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 methods	• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. • The assumptions used for any reporting of metal equivalent values should be clearly stated.	• Significant intercepts above 0.02 g/t Au with no more than 2 m internal dilution have been reported • Higher grade intercepts have been separately reported where applicable. • Metal equivalents have not been used.
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’).	• All drill intercepts have been reported as downhole lengths and not enough information is present to know the true widths of these intersections.
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.	• See the body of the announcement.
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 should be considered indicative of mineralisation styles in the region.
Other substantive exploration data	• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminatingsubstances.	• As discussed in the announcement
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	• Planned exploration works are in the process of being prepared.

==> picture [595 x 11] intentionally omitted <==

==> picture [595 x 11] intentionally omitted <==

12

Criteria	Explanation	Commentary
	geological interpretations and future drilling areas, provided this information is not commerciallysensitive.

==> picture [595 x 11] intentionally omitted <==

==> picture [595 x 11] intentionally omitted <==

13