CAZALY RESOURCES LIMITED — Capital/Financing Update 2017

Dec 18, 2017

19[th] December 2017 ASX ANNOUNCEMENT

CAZALY RESOURCES LIMITED

OPTION TO ACQUIRE NAMIBIAN COPPER-COBALT PROJECT

• **71m @ 0.38% Co from 10m including 45m @ 17.1g/t Ga ***

• Proterozoic Damaran host rocks, north eastern Namibia

• Extensive tenement holding, ~200km[2]

• Hole drilled in 2011, no follow up work for Co recorded as work focussed on iron mineralisation

• Large nearby circa 3km long coincident Cu-Co soil anomaly

• Four month option to purchase an 85% interest

• Local consultants being engaged, work to commence in early 2018

* Analyses by Niton XRF analyser, see Appendix 1. Analyses not completed beyond 81m. Note that the Exploration Results have not been reported in accordance with the JORC 2012

Cazaly Resources Limited ( ASX: CAZ, “Cazaly” or “the Company” ) is pleased to announce it has acquired an option to purchase an 85% equity interest in the Tsumkwe project, located in Namibia and which is prospective for copper-cobalt mineralisation (“ the Project ”).

The Project is located in north-eastern Namibia, approximately 750km by road from the capital of Windhoek and about 40km from the border with Botswana (Figure 1). The region has largely been explored for diamonds in the past with limited exploration for base metals.

TENURE

The Project comprises a single exploration licence, EPL6532, which was granted to local Namibian owned company Gemco Investments cc (“ Gemco ”) in August 2017 for an initial 3 year period. The Project covers an area of approximately 200 square kilometres. Cazaly has secured a four month option with Gemco to purchase an 85% interest in the Project.

GEOLOGICAL SETTING

The region contains basement Damaran Proterozoic, younger Karoo Supergroup lithologies and

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Level 2, 38 Richardson Street, West Perth, Western Australia, 6005. PO Box 396, West Perth, Western Australia, 6872 Phone: +61 8 9322 6283 Fax: +61 8 9322 6398 email: admin@cazalyresources.com.au ACN 101 049334 www.cazalyresources.com.au

extensive overlying Quaternery sands, calcrete and silcrete (Figure 2). The Damaran Proterozoic hosts the world class Tsumeb Cu-Pb-Zn-Ag-Ge-Cd mine in Namibia, renowned for a wealth of rare and unusual minerals and mined from 1907 to 1996. The ore body is a pipe measuring around 120 by 15 metres in cross section, is steeply dipping and extending from the surface to at least 1,000 metres in depth. The Damaran belt is similar to other Proterozoic belts in the world which host large base metal deposits such as the Copperbelt in Zambia, Mount Isa and Century in Australia, Rammelsberg in Germany, Red Dog in the USA and Cirque and Howards Pass in Canada.

THE PROJECT

The Tsumkwe region has only been lightly explored in the past. Mount Burgess Mining NL (“ MTB ”) has been active in the region since the late 1990’s largely exploring for diamonds although some exploration for base metal and rare earths was conducted. During this work, in mid-2011, MTB announced significant cobalt results from drilling conducted on a strong magnetic anomaly (MTB:ASX release, July 2011).

The first hole into the anomaly (hole NAM917, Target1) was drilled to 110m and returned an intercept of 71M @ 0.38% Co from 10 to 81m (analyses did not extend past 81m) and a coincident intercept of gallium from 37 to 81m of 45m at 17.11g/t Ga .

The interval was determined on site with the Company’s XRF analyser (but only to 81m) with results to be verified by chemical analysis from an independent laboratory, however whether this was carried out or not was never reported. Lithologies intercepted appear to be a heavily magnetite mineralised amphibolite occurring below a gossan from ~11-17m and ~10m of sand cover.

MTB’s quarterly report for the June Quarter, 2011 also presented the results of an infill soil geochemical survey over an area located ~3km to the south west of the drill intercept ( Makuri Vlei anomaly, Figures 3, 4). This survey assayed for cobalt for the first time and uncovered a coincident copper-cobalt anomaly over a strike length of ~3km with cobalt values in the range of 500ppm to 690ppm and copper from 120 to 160ppm.

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Tsumkwe
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Figure 1: Location of the Tsumkwe Project, Namibia

Four magnetic anomalies, all located along trend to the north east of the soil anomaly (Figure 3), were targeted by MTB (including Target 1 with the reported cobalt intercept) with drilling returning significant zones of sulphide mineralisation including chalcopyrite, galena, pyrite and other sulphides (MTB:ASX; June 2011 Quarterly Report). However, no assays were ever reported and, given the demand for iron ore at the time, the company quickly focussed its efforts on the

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Figure 2: Geological setting of the Tsumkwe project

extensive magnetite mineralisation which was also evident in the drilling (MTB ASX; September 2011 Quarterly Report).

MTB drilled further holes in the area in 2011, focussing on magnetite mineralisation, with no further reporting on cobalt. One of these drillholes, NAM927, drilled near to NAM917, also encountered a gossan from around 11 – 17m (ASX:MTB 30 August 2011). NAM927 confirmed that the body intersected may be a pipe like structure that may be a feeder system to the Cu-Co mineralisation located at the Makuri Vlei soil anomaly.

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Figure 3: Aeromagnetic image showing 4 Target anomalies and location of the Makuri Vlei Cu-Co soil anomaly (MTB:ASX June 2011 Quarterly Report)

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Figure 4: Makuri Vlei coincident copper-cobalt soil anomaly (MTB:ASX November 2011 AGM presentation)

INFRASTRUCTURE

The project lies 260 kilometres by a well-serviced road from the mining town of Grootfontein and 40km from the border of Botswana.

DUE DILIGENCE

Given the paucity of information and lack of data verification available from reporting, the results from drilling as presented need to be treated with caution. The Company intends to verify the extensive cobalt and gallium intercept reported by twinning drillhole NAM917 at Target 1. If the Company proceeds to completion of the acquisition of an interest in the Project, other drilling will also be conducted including drilling over the extensive Makuri Vlei Cu-Co soil anomaly.

The Company has commenced engaging local technical and legal consultants to assist in its due diligence work on the project however, given the time of year much of Namibia is closed down for the next month delaying any field work.

ACQUISITION TERMS

Cazaly has the right to purchase an 85% equity interest in EPL6532 on the following terms and conditions:

1. The payment of an option fee of US$60,000 for a 4 month exclusive option and due diligence period, which was paid by Cazaly prior to the date of this announcement.

2. At the end of the option period Cazaly can elect to acquire an 85% equity interest in the Project by paying US$650,000 cash and issuing US$250,000 worth of Cazaly stock, subject to any required shareholder approval.

3. Cazaly will free carry all Gemco expenditure in respect of the Project up to the finalisation of a positive definitive feasibility study into mining on the Project.

4. Any requirements for the government’s New Equitable Economic Empowerment Framework (“ NEEEF ”) shall be satisfied by the Project equity held by Gemco.

Commenting on the Option Agreement, Cazaly Resources Managing Director Nathan McMahon said:

“While we are yet to verify the cobalt and gallium intercept, we are nonetheless encouraged by the potential of this project which has had no follow-up cobalt work as historically the primary focus was on iron mineralisation.

“We are also encouraged by the large nearby 3km copper-cobalt anomaly which returned cobalt values in the range of 500ppm to 690ppm and copper from 120 to 160ppm.”

“Cazaly are currently in the process of engaging local consultants with a view to kick-off due diligence on the project early in the new year. This work will include verifying the reported intercept as well drilling over the extensive Makuri Vlei Cu-Co soil anomaly.”

BACKGROUND ON COBALT

Cobalt has a diverse range of metallurgical and chemical uses ranging from aircraft engines to rechargeable batteries.

Globally, 58 per cent of cobalt is used in diverse industrial and military applications with the remainder used in the development of lithium-ion batteries used in electronic devices, electric vehicles, and energy storage, according to Cobalt Development Institute (CDI).

Strong demand for rechargeable batteries has been the biggest growth driver for cobalt consumption and demand is forecast to continue to increase as batteries are increasingly adopted in households and vehicles.

Industry insiders anticipate that demand for electric vehicles will increase phenomenally over the next ten years, particularly in North America, Europe and North-East Asia, creating a huge demand for lithium-ion batteries.

Demand from electric carmakers on concerns not enough cobalt can be mined to meet future demand has driven the LME three-month cobalt price from $US32,750 tonne at the start of January 2017 to current price of $US72,000t. This has been exemplified in the last week by automotive maker BMW stating that its needs for car-battery raw materials such as cobalt and lithium will grow 10-fold by 2025.

BACKGROUND ON GALLIUM

Demand for gallium has grown as demand for hand-held and communication electronics, particularly smart phones, has increased in recent times and accounts for approximately three-quarters of demand.

On the supply side, gallium supply largely comes as a by-product of bauxite mining and is extracted from spent liquor at aluminium refineries with China being the largest supplier of refined gallium. Market commentators have suggested that the gallium market will be significantly buoyed by supply cuts and demand recovery, while demand outlook is bullish.

ENDS

For further information please contact: Nathan McMahon / Clive Jones Joint Managing Directors Cazaly Resources Limited Tel: +61 8 9322 6283 Em: admin@cazalyresources.com.au Website: www.cazalyresources.com.au

Media

David Tasker / Colin Jacoby Chapter One Advisors E: dtasker@chapteroneadvisors.com.au / cjacoby@chapteroneadvisors.com.au T: +61 433 112 936 / +61 439 980 359

Competent Person’s Statement

The information contained herein that relates to Exploration Results, Mineral Resources, Targets or Ore Resources and Reserves is based on information compiled or reviewed by Mr Clive Jones, who is an employee of the Company. Mr Jones is a Member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and types of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Persons as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Jones consents to the inclusion of his name in the matters based on the information in the form and context in which it appears.

Disclaimer Certain statements contained in this announcement, including information as to the future financial or operating performance of Cazaly Resources Limited and its projects, are forward-looking statements that:

■ may include, among other things, statements regarding targets, estimates and assumptions in respect of mineral reserves and mineral resources and anticipated grades and recovery rates, production and prices, recovery costs and results, capital expenditures, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions;

■ are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Cazaly Resources Limited, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies; and,

■ involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward-looking statements.

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APPENDIX 1

Historical Reporting of Cobalt Results

A) THE FOLLOWING IS AN EXCERPT FROM THE ORIGINAL MTB ANNOUNCEMENT IN RELATION TO THE REPORTING OF COBALT RESULTS

MTB:ASX 20 July 2011: Significant Cobalt Results, Tsumkwe Base metals Project, Namibia

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B) COMMENTS REGARDING THE REPORTING OF ANOTHER ENTITIES EXPLORATION RESULTS

• The Exploration Results have previously been reported by Mount Burgess Mining NL (“MTB”) and not Cazaly Resources Ltd (“CAZ”)

• All data was sourced from data as reported in various MTB ASX releases dated;

• 20 July 2011: Significant Cobalt Results, Tsumkwe base metals Project, Namibia

• 29 July 2011: Report for the quarter ended June 2011

• 30 August 2011: Elevated base metal analyses – Tsumkwe Base metals Project, Namibia

• 5 October 2011: Elevated Iron Assays, Tsumkwe base metals project, Namibia

• 31 October 2011: Report for the quarter ended September 2011

• The results were reported under the 2004 Edition of the “Australasian Code for Reporting of Mineral Resources and Ore Reserves” - the reporting of those Exploration Results may not conform to the requirements in the JORC Code 2012

• Cazaly is cautious about the reliability of the XRF analyses in respect to the reporting of results as reported by MTB.

• A summary of work conducted can be found in the several ASX releases by MTB

• Cazaly intends to replicate drillhole NAM917 by twin drilling in early 2018 so as to report the results in accordance with the JORC Code 2012

• The information in the announcement is an accurate representation of the available data for project

• To date a Competent Person has not done sufficient work to disclose the Exploration Results in accordance with the JORC Code 2012

• It is possible that following further evaluation and/or exploration work that the confidence in the prior reported Exploration Results may be reduced when reported under the JORC Code 2012

• Nothing has come to the attention of the Cazaly that causes it to question the accuracy or reliability of the former owner’s Exploration Results however Cazaly has yet to independently validate the former owner’s Exploration Results and therefore is not to be regarded as reporting, adopting or endorsing those results.

APPENDIX 2

JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary	Commentary
Sampling		Nature and quality of sampling (eg cut		All data was sourced from data provided by a previous
techniques		channels, random chips, or specific		operator - as reported in various Mount Burgess Mining NL
		specialised industry standard		(“MTB”) ASX releases dated;
		measurement tools appropriate to the
		minerals under investigation, such as			20 July 2011: Significant Cobalt Results, Tsumkwe
		down hole gamma sondes, or			base metals Project, Namibia
		handheld XRF instruments, etc).
		These examples should not be taken			29 July 2011: Report for the quarter ended June 2011
		as limiting the broad meaning of
		sampling.			30 August 2011: Elevated base metal analyses –
		Include reference to measures taken			Tsumkwe Base metals Project, Namibia
		to ensure sample representivity and
		the appropriate calibration of any measurement tools or systems used.			5 October 2011: Elevated Iron Assays, Tsumkwe base metals project, Namibia
		Aspects of the determination of
		mineralisation that are Material to the Public Report.			31 October 2011: Report for the quarter ended September 2011
		In cases where ‘industry standard’
		work has been done this would be		Drillhole NAM917 was drilled to 110m as a percussion hole.
		relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge		It appears that standard industry practise was undertaken with sampling at 1 metre intervals. Assaying for cobalt was done via a portable XRF machine as detailed in appendix 1.
		for fire assay’). In other cases more
		explanation may be required, such as where there is coarse gold that has		No downhole surveys were undertaken.
		inherent sampling problems. Unusual
		commodities or mineralisation types
		(eg submarine nodules) may warrant
		disclosure of detailed information.
Drilling		Drill type (eg core, reverse circulation,		Drilling comprised Percussion drill holes
techniques		open-hole hammer, rotary air blast,
		auger, Bangka, sonic, etc) and details
		(eg core diameter, triple or standard
		tube, depth of diamond tails, face-
		sampling bit or other type, whether
		core is oriented and if so, by what
		_method, etc). _
Drill sample		Method of recording and assessing		No	relationship or bias between sample recovery and
recovery		core and chip sample recoveries and		grade was discussed in the historic reports in detail
		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.
Logging		Whether core and chip samples have		No	geological logs are available in historic reports
		been geologically and 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-sampling		If core, whether cut or sawn and		No	Diamond drill core was conducted
techniques and		whetherquarter, half or all core taken.		With respect to XRF analyses on hole NAM917;

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
sample		If non-core, whether riffled, tube		Drill chip samples from each single meter were sieved
preparation		sampled, rotary split, etc and whether		down to 0.18mm and stored in brown paper sample
		sampled wet or dry.		packets containing around 60gms of sample. Individual
		For all sample types, the nature,		sample packets were then placed on the base of the lead
		quality and appropriateness of the		hooded container, over the eye of the XRF analyser
		sample preparation technique.		The analysis process for each individual sample packet
		Quality control procedures adopted for		was triggered and allowed to run for 2 minutes for each
		all sub-sampling stages to maximise		sample (as recommended by the manufacturers, Niton).
		representivity of samples.		All samples from each meter between 48m and 58m were
		Measures taken to ensure that the		subject to 4 x 2 minute assay tests, turning the sample
		sampling is representative of the in		packets for each 2 minute test. All other samples assayed
		situ material collected, including for		from this drill hole were subject to 2 x 2 minute assay
		instance results for field		tests, turning the sample packet for each 2 minute test.
		duplicate/second-half sampling.		Results reported are the calculated average of the number
		Whether sample sizes are appropriate to the grain size of the material being sampled.		of tests taken for each sample. XRF calibration checks were conducted at the commencement of assaying and then after each set of 25 assays completed.
				No information on any other sample preparation is
				available from historical reports
Quality of		The nature, quality and		XRF analyses as above
assay data and		appropriateness of the assaying and		No other Laboratory QAQC was discussed in the historic
laboratory tests		laboratory procedures used and		reports
		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 (eg standards, blanks,
		duplicates, external laboratory checks)
		and whether acceptable levels of
		accuracy (ie lack of bias) and
		precision have been established.
Verification of		The verification of significant		Independent laboratory testing was due to be undertaken
sampling and		intersections by either independent or		but never reported
assaying		alternative company personnel.		No information on adjustment of assay data is found in the
		The use of twinned holes.		reports
		Documentation of primary data, data
		entry procedures, data verification,
		data storage (physical and electronic)
		protocols.
		Discuss any adjustment to assay data.
Location of		Accuracy and quality of surveys used		Drillhole location pickup methods are unknown but
data points		to locate drill holes (collar and down-		assumed to be by hand held GPS.
		hole surveys), trenches, mine		Locations were reported utilising the UTM WGS84 Zone34
		workings and other locations used in		grid system
		Mineral Resource estimation.
		Specification of the grid system used.
		Quality and adequacy of topographic
		control.
Data spacing		Data spacing for reporting of		Drill collar spacing is sporadic across geophysical
and distribution		Exploration Results.		anomalies
		Whether the data spacing and		Infill soil sampling at Makuri Vlei; the soil samples were
		distribution is sufficient to establish the		collected from 10cm below surface at sample locations
		degree of geological and grade		100m apart N/S and E/W. Samples were sieved down to
		continuity appropriate for the Mineral		0.18mm to collect about 60gms per sample and then
		Resource and Ore Reserve estimation		stored in standard geochemical soil sampling paper
		procedure(s) and classifications		envelopes. Samples were then analysed with an XRF
		applied.		machine
		Whether sample compositing has		There is insufficient drilling to date or information available
		been applied.		to determine a mineral resource
Orientation of		Whether the orientation of sampling		No details provided in the historic reports
data in relation		achieves unbiased sampling of
		possible structures and the extent to

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
to geological		which this is known, considering the
structure		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.
Sample		The measures taken to ensure sample		No details of sample security are recorded in the reports
security		security.
Audits or		The results of any audits or reviews of		No details of audits or review of sampling techniques are
reviews		sampling techniques and data.		recorded in the reports

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	Commentary
Mineral		Type, reference name/number,			Tenement EPL6532 located in north eastern Namibia is
tenement and		location and ownership including			held 100% by Gemco Investments cc. Cazaly Resources
land tenure		agreements or material issues with			Limited (ASX:CAZ) have entered into an option agreement
status		third parties such as joint ventures,			to purchase a 85% interest in the tenement as follows;
		partnerships, overriding royalties,			 Paying an option fee of US$60,000 for a 4 month
		native title interests, historical sites,			exclusive due diligence (Paid)
		wilderness or national park and			 At the end of the option period CAZ can elect to
		environmental settings.			proceed to 85% equity by paying US$650,000 cash
		The security of the tenure held at the			and issuing US$250,000 worth of CAZ stock
		time of reporting along with any known			 Cazaly will free carry all Gemco expenditure up to the
		impediments to obtaining a licence to			finalisation of a positive Definitive Feasibility Study
		operate in the area.			into mining
					 Any requirements for the governments New Equitable
					Economic Empowerment Framework (“NEEEF”) shall
					be satisfied by the project equity held by GEMCO
					Access for past exploration was successful and subject to
					normal Heritage, landowner and environmental provisions
Exploration		Acknowledgment and appraisal of			Mount Burgess Mining NL (“MTB”) – ASX releases dated;
done by other		exploration by other parties.
parties					 20 July 2011: Significant Cobalt Results, Tsumkwe
					base metals Project, Namibia
					 29 July 2011: Report for the quarter ended June 2011
					 30 August 2011: Elevated base metal analyses –
					Tsumkwe Base metals Project, Namibia
					 5 October 2011: Elevated Iron Assays, Tsumkwe base
					metals project, Namibia
					 31 October 2011: Report for the quarter ended
					September 2011
Geology		Deposit type, geological setting and			The region contains basement Damaran Proterozoic,
		style of mineralisation.			younger Karoo Supergroup lithologies and extensive
					overlying Quaternery sands, calcrete and silcrete. The
					Damaran Proterozoic hosts the world class Tsumeb Cu-Pb-
					Zn-Ag-Ge-Cd mine in Namibia, mined from 1907 to 1996
					and is a pipe-like orebody measuring around 120 by 15
					meters in cross section, is steeply dipping and extending
					from the surface to at least 1,000 meters in depth. The
					Damaran is similar to other Proterozoic belts in the world
					which host large base metal deposits such as the
					Copperbelt in Zambia,Mount Isa and Centuryin Australia,

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				Rammelsberg in Germany, Red Dog in the USA and Cirque
				andHowardsPassinCanada.
Drill hole		A summary of all information material		See Appendix 1
Information		to the understanding of the exploration		The material drillhole is NAM917 (7,830,904N 477,015E
		results including a tabulation of the		UTM WGS84 Zone34, vertical hole, 100m deep
		following information for all Material		anomalous intercept from 10-81m)
		drill holes:
		o easting and northing of the drill
		hole collar
		o elevation or RL (Reduced Level –
		elevation above sea level in
		metres) of the drill hole collar
		o dip and azimuth of the hole
		o down hole length and interception
		depth
		o hole length.
		If the exclusion of this information is
		justified on the basis that the
		information is not Material and this
		exclusion does not detract from the
		understanding of the report, the
		Competent Person should clearly
		explain why this is the case.
Data		In reporting Exploration Results,		See Appendix 1
aggregation		weighting averaging techniques,		XRF Intercepts are based on weighted averages
methods		maximum and/or minimum grade		XRF Intercepts are rounded off to two decimal places and
		truncations (eg cutting of high grades)		as such, rounding errors maybe present
		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.
Relationship		These relationships are particularly		Due to the paucity of drilling and information supplied no
between		important in the reporting of		definitive outline of geometry is available.
mineralisation		Exploration Results.
widths and		If the geometry of the mineralisation
intercept		with respect to the drill hole angle is
lengths		known, its nature should be reported.
		If it is not known and only the down
		hole lengths are reported, there
		should be a clear statement to this
		effect (eg ‘down hole length, true width
		_not known’). _
Diagrams		Appropriate maps and sections (with		See body of this ASX release
		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.
Balanced		Where comprehensive reporting of all		See Appendix 1
reporting		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.
Other		Other exploration data, if meaningful		The data sets for the project will be compiled and reviewed
substantive		and material, should be reported		as a part of ongoing due diligence. Historic data will be
exploration		including (but not limited to):		incorporated in ongoing assessment by the Company
data		geological observations; geophysical		No significant metallurgical test work was noted during a
		survey results; geochemical survey		review of the reports
		results; bulk samples – size and		No deleterious or contaminatingsubstances are discussed

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		method of treatment; metallurgical test		in the reports
		results; bulk density, groundwater,
		geotechnical and rock characteristics;
		potential deleterious or contaminating
		substances.
Further work		The nature and scale of planned		The Company is currently engaging technical professional
		further work (eg tests for lateral		in Namibia to commence its due diligence drilling and other
		extensions or depth extensions or		field work at the project. A more detailed investigation on
		large-scale step-out drilling).		all information related to the Tsumkwe Project will be
		Diagrams clearly highlighting the		undertaken. Further work will be proposed once this work
		areas of possible extensions, including		has been finalised.
		the main geological interpretations
		and future drilling areas, provided this
		information is not commercially
		sensitive.