CLARA RESOURCES AUSTRALIA LTD — Interim / Quarterly Report 2015

Aug 17, 2015

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ASX Announcement

Aus Tin Mining Limited (ASX: ANW)

18 August 2015

Maiden Drilling at McDonalds Prospect Confirms High Grade Tin Intersections

Highlights

• Maiden drilling program at McDonalds Prospect completed comprising six holes for a total of 361m across a 130m wide zone.

• Drilling results confirm the geological interpretation of the McDonalds Prospect.

• Assay results for first completed drill hole (MDRC001) include 4m @ 0.64%Sn from 48m and 4m @ 0.46%Sn from 57m. The highest grade intervals (1m) include 1.38%Sn from 48m and 1.04%Sn from 51m.

The Directors of Aus Tin Mining Limited (the Company) are pleased to announce the first assay results from the maiden drilling program at the McDonalds Prospect completed in July 2015. Six reverse circulation (RC) holes for a total of 361m were completed (refer Table 1). Assay results for the first completed drill hole (MRDC001) include 2m @ 0.26%Sn from 16m; 4m @ 0.64%Sn from 48m (including 1m @ 1.38%Sn from 48m and 1m @ 1.04%Sn from 51m); and 4m @ 0.46%Sn from 57m. MRDC001 terminated in mineralization (1m @ 0.27%Sn) at a depth of 61m.

The McDonalds Prospect is located within EL7800 and is approximately 6km NW of the Taronga Tin Project. Mineralisation at McDonalds comprises various zones of sheeted quartz veining and greisen over a strike length of approximately 2km and up to 500m wide (refer Figure 1). Previous work completed by the Company included geochemical and Induced Polarisation surveys to identify areas of coincident anomalism and priority drill targets. Eight priority targets to a depth of 150m (Figure 1) were identified, of which five have been completed (plus a wildcat sixth hole) to an average depth of 60m. Follow‐up drilling is planned. The drilling to date has confirmed a mineralised zone of approximately 130m wide on the western end of the 2km long soil anomaly.

Logging of the drill chips confirmed the rock types intersected in drilling to date are in accord with published geological maps of the McDonald’s Prospect, including zones of greisen alteration and veining comprising quartz/cassiterite/tourmaline (Figure 2).

RC chip samples from MDRC001 and MDRC001A were submitted for initial analysis employing pressed pellet XRF and subsequently for MDRC001 using oxidising fusion / XRF. This methodology will be adopted for the four other completed drill holes (MDRC002, MDRC003, MDRC005, MDRC007) plus two additional holes (MDRC 09/10) currently being drilled.

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On behalf of the Board KM Schlobohm Company Secretary

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Figure 1 – Plan of McDonalds illustrating geochemistry, IP results and drill targets

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Figure 2 – Section of McDonalds illustrating results from MDRC001

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Competent Persons Statement

The information in this presentation that relates to Exploration Results is based on information compiled by Mr Nicholas Mather B.Sc (Hons) Geol., who is a Member of The Australian Institute of Mining and Metallurgy. Mr Mather is employed by Samuel Capital Pty Ltd, which provides certain consultancy services including the provision of Mr Mather as a Director of Aus Tin Mining. Mr Mather has more than five years experience which is relevant to the style of mineralisation and type of deposit being reported and to the activity, 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, Minerals Resources and Ore Reserves’ (the JORC Code). This public report is issued with the prior written consent of the Competent Person(s) as to the form and context in which it appears.

The information in this Announcement that relates to Mineral Resources is based on information extracted from the report entitled “Maiden JORC Resource Estimated for the Taronga Tin Project” created on 26[th] August 2013 and is available to view on www.austinmining.com.au Aus Tin Mining confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

In the information in this Announcement that relates to Ore Reserves is based on information extracted from the report entitled “Pre‐Feasibility Advances the Taronga Tin Project” created on 7[th] April 2014 and is available to view on www.austinmining.com.au. Aus Tin Mining confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

Email: info@austinmining.com.au

Electronic copies and more information are available on the Company website: www.austinmining.com.au

For further information contact: Peter Williams CEO, Aus Tin Mining Limited Ph: 07 3303 0604

Karl Schlobohm Company Secretary, Aus Tin Mining Limited Ph: 07 3303 0661

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Table 1 – Drill hole details and assay results for initial program at McDonalds Prospect 2015. Only intervals assaying >0.1%Sn are reported.

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Section 1 Sampling Techniques and Data

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

Criteria	JORC Code explanation	Commentary
Sampling	 Nature and quality of sampling (eg cut channels, random chips, or specific	 Based on 6 reverse circulation percussion samples obtained by drilling holes
techniques	specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or	into mineralised structure. Samples were taken by the insertion of a spear into bulk bags representing 1 metre drill intervals.
	handheld XRF instruments, etc). These examples should not be taken as	 The tubular spear is inserted diagonally through the drill sample sack and
	limiting the broad meaning of sampling.	entirely filled. It is cleaned between each sample. Riffle splitting was
	 Include reference to measures taken to ensure sample representivity and the	considered to be inferior in this circumstance and location.
	appropriate calibration of any measurement tools or systems used.	 100 samples were submitted for analyses. The remaining samples were
	 Aspects of the determination of mineralisation that are Material to the	retained and placed in storage.
	Public Report.	 The resultant 100 composited 1‐2 kg samples were packaged and sealed
	 In cases where ‘industry standard’ work has been done this would be	prior to dispatch to the ALS laboratory. This 1.5 kg sample will analysed
	relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m	using pressed pellet XRF for Sn only (ALS XRF5). Multi element analysis
	samples from which 3 kg was pulverised to produce a 30 g charge for fire	using ICP (ALS ICP61) and oxidising fusion with XRF finish (ALS XRF15b) will
	assay’). In other cases more explanation may be required, such as where	be undertaken as appropriate.
	there is coarse gold that has inherent sampling problems. Unusual
	commodities or mineralisation types (eg submarine nodules) may warrant
	disclosure of detailed information.
Drilling	 Drill type (eg core, reverse circulation, open‐hole hammer, rotary air blast,	 Reverse circulation holes were drilled at a declination of 60 degrees. If
techniques	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	ground conditions were poor or if there was an excess of water, then the hole was completed, in which case at a future date a diamond tail may be
	is oriented and if so, by what method, etc).	drilled subject to assay results.
Drill sample	 Method of recording and assessing core and chip sample recoveries and	 The metreages were recorded on drill sample bags during drilling, and notes
recovery	results assessed.	regarding any poor recoveries were simultaneously made in the drill logs.
	 Measures taken to maximise sample recovery and ensure representative	 Recoveries were all high > 85% within the intervals selected for assay. The
	nature of the samples.	assay samples were given a specific number from a sample book, with
	 Whether a relationship exists between sample recovery and grade and	written and digital records of the intervals represented.
	whether sample bias may have occurred due to preferential loss/gain of	 No relationship exists between grades and recoveries.
	fine/coarse material.

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Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary
Logging  Whether core and chip samples have 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.  The core and chip samples have been geologically logged, but there are no geotechnical logs.  The drill collars require more accurate surveying for resource estimations. 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 being sampled.  Logging is both qualitative and quantitative.  The log intervals are based on the 1 metre drill sample intervals.  All drill metreages were logged.  The samples were mostly damp to wet given the presence of ground water from approximately 20m depth and the program was undertaken immediately after an extended period of rainfall.  The tin mineralisation consists of seams and disseminations and therefore there is a limited nugget effect within the discrete mineralisation structures. This is overcome by taking large samples and by repeat sampling of economic grades. 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 (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.  Pressed pellet XRF is a suitable method for determining certain elements that are not easily solubilised by acid digestion techniques. The ALS XRF5 test has a range for Sn of 5‐5,000ppm. Where Sn assays exceeded 5000ppm the samples were reassayed using ALS XRF15B, an oxidising fusion with XRF finish (range 0.005 to 20% Sn).  The analysis technique is expected to near total for Sn.  Three duplicate samples from the original drill interval have been submitted for duplicate analysis. If resource drilling gets underway, a system of blanks standards and repeats will become standard. For exploration drilling, it is done on as needs basis. 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.  Verification of significant intersections will be undertaken upon receipt of the assay results. The drill logs were prepared by the site supervising geologist and have subsequently reviewed by the Company’s senior geologist.  No twinned holes
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Criteria	JORC Code explanation	Commentary	Commentary
	 Discuss any adjustment to assay data.		Paper records were kept in sample books and drill logs, and were verifiable
			during sample drying.
			Digital data will be checked against paper records and has been stored in
			two different widely separated hard drives.
Location of	 Accuracy and quality of surveys used to locate drill holes (collar and down‐		Collars were located by hand held GPS with 3m lateral inaccuracy levels,
data points	hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.		and were supported by tape measures traverses which were used for more accurate vertical measurements.
	 Specification of the grid system used.		The grid system is GDA 95 zone 56.
	 Quality and adequacy of topographic control.		The accuracy is adequate for exploration but inadequate for resource
			calculations.
Data spacing	 Data spacing for reporting of Exploration Results.		The drilling purpose is to initially establish grade and continuity for this
and	 Whether the data spacing and distribution is sufficient to establish the		deposit. The host structure is becoming more predictable as drilling
distribution	degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications		progresses. The data is suitable only for exploration reporting.
	applied.		Samples were taken representing 1 metre drill intervals have not been
	 Whether sample compositing has been applied.		composited.
Orientation	 Whether the orientation of sampling achieves unbiased sampling of possible		The deposit is undrilled but drill hole location and orientation have been
of data in	structures and the extent to which this is known, considering the deposit		sited using geological mapping of the immediate area.
relation to	type.  If the relationship between the drilling orientation and the orientation of key	
geological	mineralised structures is considered to have introduced a sampling bias, this
structure	should be assessed and reported if material.
Sample	 The measures taken to ensure sample security.		The samples were obtained and immediately processed on a secure private
security			site with personnel present. The original drill samples are in secure storage.
Audits or	 The results of any audits or reviews of sampling techniques and data.		None to date, but reviews will take place after repeat sampling.
reviews

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Section 2 Reporting of Exploration Results

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

Criteria JORC Code explanation

Commentary

Criteria	JORC Code explanation	Commentary
Mineral	 Type, reference name/number, location and ownership including	 The drill holes are located entirely within EL 7800 owned 100% by Aus Tin
tenement	agreements or material issues with third parties such as joint ventures,	Mining on freehold lands subject to a Rural Access and Compensation
and land	partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.	Agreement.  No plan of operations for mining has been submitted for approval, but no
tenure status	 The security of the tenure held at the time of reporting along with any	impediments are known to exist to such an operation.
	known impediments to obtaining a licence to operate in the area.
Exploration	 Acknowledgment and appraisal of exploration by other parties.	 Previous work was done and reported by YTC Resources Limited.
done by
other parties
Geology	 Deposit type, geological setting and style of mineralisation.	 The mineralisation is classified as a sheeted vein mineralised system hosting
		tin, copper, silver and other metals. The better grades are expected to be
		controlled by discrete structures.
Drill hole	 A summary of all information material to the understanding of the
Information	exploration results including a tabulation of the following information for all Material drill holes:
	o easting and northing of the drill hole collar
	o elevation or RL (Reduced Level – elevation above sea level in metres) of
	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, maximum	 To be reported upon receipt of assay results
aggregation	and/or minimum grade truncations (eg cutting of high grades) and cut‐off grades are usually Material and should be stated.

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Criteria	JORC Code explanation	Commentary
methods	 Where aggregate intercepts incorporate short lengths of high grade results
	and longer lengths of low grade results, the procedure used for such
	aggregation should be stated and some typical examples of such
	aggregations should be shown in detail.
	 The assumptions used for any reporting of metal equivalent values should
	be clearly stated.
Relationship	 These relationships are particularly important in the reporting of Exploration	 To be reported upon receipt of assay results
between	Results.
mineralisatio	 If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.
n widths and	 If it is not known and only the down hole lengths are reported, there should
intercept	be a clear statement to this effect (eg ‘down hole length, true width not
lengths	known’).
Diagrams	 Appropriate maps and sections (with scales) and tabulations of intercepts	 To be reported upon receipt of assay results
	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 Exploration Results is not practicable,	 To be reported upon receipt of assay results.
reporting	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 and material, should be reported	 Surface geochemical and IP data has previously been reported on.
substantive	including (but not limited to): geological observations; geophysical survey
exploration	results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater,
data	geotechnical and rock characteristics; potential deleterious or
	contaminating substances.
Further work	 The nature and scale of planned further work (eg tests for lateral extensions	 Two additional holes are planned subject to approval from the NSW
	or depth extensions or large‐scale step‐out drilling).	Division of Resources and Energy.
	 Diagrams clearly highlighting the areas of possible extensions, including the	 Further work programs will be determined upon receipt of assay results.
	main geological interpretations and future drilling areas, provided this	 Only a small proportion of the geochemical and geological target has been
	information is not commercially sensitive.	drilled.

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