CLASSIC MINERALS LTD — Capital/Financing Update 2017

Dec 12, 2017

ASX Announcement

ASX: CLZ ACN 119 484 016

13 December 2017

PHASE 2 DRILLING AT LADY ADA RETURNS HIGH GRADE RESULTS AT FORRESTANIA GOLD PROJECT, WA

Highlights:

• Classic’s Phase 2 drilling at Lady Ada has returned high-grade results from outside the current Scoping Study pit design – highlighting significant potential to expand current Mineral Resource estimate at FGP (refer to ASX announcement dated 14th March 2017 for mineral resource estimate)

• Best results for Lady Ada (to date) include:

• 10m @ 3.10 g/t Au from 58m – including 5m @ 3.96 g/t Au from 58m and 2m @ 7.04 g/t Au from 58m

• 5m @ 1.30 g/t Au from 37m

• 6m @ 2.22 g/t Au from 40m – including 1m @ 8.20 g/t Au from 40m

• 3m @ 10.37 g/t Au from 117m – including 1m @ 30.50 g/t Au from 117m

• 6m @ 8.67 g/t Au from 67m – including 1m @ 38.10 g/t Au from 68 m

• Phase 2 program targeted high-grade extensions along strike and down dip at both Lady Ada and Lady Magdalene deposits

• Program also included pattern drilling to establish and increase the confidence in the Mineral Resource at Lady Ada and Lady Magdalene

• Scale of alteration and mineralisation observed in all holes drilled to date continues to be indicative of a potential large-scale gold system

• Further assays for both Lady Ada and Lady Magdalene drilling expected to be received imminently

• Classic planning strategically placed orientated diamond holes early in the new year with the goal of uncovering 1 or more Lady Ada-esque high grade ore bodies between existing drill lines at Lady Magdalene

1. INTRODUCTION

WA-focused gold exploration and development company Classic Minerals Limited (ASX. CLZ) ("Classic", or "the Company") is pleased to advise that it has received initial assay results from RC holes drilled at the Lady Ada deposit as part of the Phase 2 drilling program at the Company’s Forrestania Gold Project (“FGP”) in Western Australia.

Page 1 of 14

ASX Announcement

13 December 2017

MARC026 was a standout hole which yielded very impressive, high grade gold mineralisation (38.10 g/t) at a relatively shallow depth (68m) in an area that is outside of the current optimised pit design.

2. DRILLING AT LADY ADA – CONFIRMING RESOURCE DEVELOPMENT MODEL

Directly along strike from MARC026 was MARC024 and MARC019 which also included high grade results that were interestingly closer to surface. These results confirm the geological model that the primary Lady Ada ore zone extends to the south-east of the existing ore body. The extent of the mineralisation remains open and is yet to be closed off – Classic drilled a hole (MARC039) approx. 200m along strike from MARC019 and MARC024 that is yet to be assayed but included promising zones of arsenopyrite which appears to represent ore-bearing zones.

==> picture [483 x 355] intentionally omitted <==

----- Start of picture text -----

MARC026
6m @ 8.67 g/t from 67m
MARC024
6m @ 2.22 g/t from 40m
3m @ 10.37 g/t from 117m
MARC019
10m @ 3.10 g/t from 58m
----- End of picture text -----

Figure 1: Phase 2 Holes (white) at Lady Ada Plotted Against Previous Drill Collars (pink) and the latest implicit model

The strong results point to both an increase and an upgrade in Resources at the Forrestania Gold Project. The drilling was designed to target mineralisation outside of the current resource model as well as high-grade extensions below and adjacent to the current pit design, in line with Classic’s strategy to sufficiently grow its Mineral Resources to a size that supports establishment of an on-site processing facility at FGP as contemplated in FGP scoping study (see ASX announcement released 2[nd] May 2017).

The Reverse Circulation (RC) drill program drilled to date comprised a total of 18 holes for 3,250m (MARC019 - MARC035 and MARC039). Assay results for the remaining intersections and holes are expected to be announced as they are received.

Page 2 of 14

ASX Announcement

13 December 2017

An additional POW (“Program of Works”) was lodged with the DMP (“Department of Mines and Petroleum”) for an extensional drilling program and diamond drilling at Lady Magdalene. Once approved, this will allow Classic to rapidly move to the next phase of exploration and development at the FGP. The Company will update the market accordingly.

Hole	From	To	Length	Results	Comment
MARC019	58	68	10	10m @ 3.10 g/t Au from 58m	Including 2m @ 7.04 g/t Au from 58m
MARC020	37	42	5	5m @ 1.30 g/t Au from 37m
MARC024	40	46	6	6m @ 2.22 g/t Au from 40m	Including 1m @ 8.20 g/t Au from 40m
MARC024	117	120	3	3m @ 10.37 g/t Au from 117m	Including 1m @ 30.50 g/t Au from 117m
MARC026	47	51	4	4m @ 1.74 g/t Au from 47m
MARC026	67	73	6	6m @ 8.67 g/t Au from 67m	Including 1m @ 38.10 g/t Au from 68m

Table 1: Significant Lady Ada drill results received to date

Classic’s CEO, Dean Goodwin, commented :

“Lady Ada is a stacked, shallow dipping ore body which is open at depth and along strike. These latest assay results are very exciting as it confirms there is a very high grade zone that remains open along strike, reaffirming our view that the Forrestania Gold Project potentially hosts a much larger high grade gold system.

We see this as a great opportunity to increase the resource at Lady Ada, but also, in the longer term, dramatically improve the project economics as pre-stripping for the planned cut-back may now be able to incorporate some of this high grade material into the mine design.

This is a great result for our Phase 2 exploration campaign at the Forrestania Gold Project and we are looking forward to reporting the subsequent Lady Ada and Lady Magdalene assay results in the coming weeks. We have only received approx. 1/3[rd] of results so far.

Following the receipt and interpretation of the assay data, we will get straight into some orientated diamond holes at Lady Magdalene with the goal of uncovering very high grade ore bodies analogous to Lady Ada between the wide spaced drill lines. Discovery of such zones will be an absolute game-changer for the FGP as it will dramatically increase the financial viability of the project via addition of high-grade ounces to the existing pit-shell designs as reported in the May 2 scoping study announcement.”

The mineralisation at Lady Ada is hosted within the Sapphire Shear, which presents as two zones of stacked shallow dipping faults. The grades within the shear are variable (typical of shear hosted systems) and present commonly as intervals of 2-3 m, with average grades frequently ranging up to 5.0-15.0 g/t Au. There are high-grade intercepts that have not been closed off at depth. The main (eastern) high-grade part of the Mineral Resource is 55 m wide with a down-dip length of 230 m; the second (western) high-grade part of the Mineral Resource is approximately 35 m wide with a down-dip length of 170 m (as first reported in the ASX announcement from 9 March 2017).

Significantly, Classic’s view on the mineralisation was proven correct when its holes intersected gold and confirmed a previously undiscovered extension of the Lady Ada deposit at a vertical depth below 117m from the surface and SSE along strike from the current known mineralisation.

Classic is approx. 1/3[rd] of the way through assay processing and is expecting further results at Lady Ada and Lady Magdalene to come in over the coming weeks.

Page 3 of 14

ASX Announcement

13 December 2017

The ongoing strategy at Lady Ada is to test the resource development model and probe the extent of mineralisation associated with holes MARC019, MARC024, MARC026 with 25 metre spaced holes. All significant gold intersections reported to date are associated with intervals of consistent weak to moderate pervasive biotite, dioxide and iron carbonate alteration, SE-dipping quartz veins with >1% pyrite and >1% arsenopyrite mineralisation.

3. LADY MAGDALENE DIAMOND DRILLING – TRYING TO UNCOVER HIGH-GRADE GOLD LODES WITHIN

In addition to processing the assay data from Phase 2 drilling at Lady Ada and Lady Magdalene, The Company is also focused on drilling diamond holes at Lady Magdalene in the near future with a view of discovering high grade gold lodes similar to what was mined at Lady Ada. Orientated diamond drilling will be undertaken within the existing Lady Magdalene resource in an attempt to locate high grade cross-cutting gold lodes similar to the Lady Ada deposit which yielded 95,865 tonnes @ 8.81g/t for 27,146 oz Au. Currently existing drilling at Lady Magdalene is too broad spaced to identify these potential high-grade cross-cutting lodes.

CEO Dean Goodwin said:

In parallel to our regional exploration program we will be looking for high-grade cross-cutting lodes within the Lady Magdalene resource envelope similar to Lady Ada. We found Lady Ada 17 years ago by looking closely at the drilling sections, you could see this high-grade gold lode cutting through from section to section on an angle. It wasn’t running parallel to the main lower grade material. Once we changed the drill orientation, the high-grade zone was instantly apparent and the rest was history. There is very strong evidence to suggest that similar things are happening at Lady Magdalene. There could be multiple Lady Adas hiding within the existing data. Before we looked closely at Lady Ada, both Lady Ada and Lady Magdalene were deemed large low-grade gold resources. It was only after we looked closely at Lady Ada that we saw the high-grade cross cutting lode – I hope to repeat this methodology and discovery at Lady Magdalene.

==> picture [413 x 233] intentionally omitted <==

Figure 2 West-East section through Lady Magdalene, showing results for MARC009

4. ABOUT THE FORRESTANIA GOLD PROJECT

The FGP Tenements are registered in the name of Reed Exploration Pty Ltd, a wholly owned subsidiary of ASX listed Hannans Ltd (ASX:HNR). Classic has acquired 80% of the gold rights on the FGP Tenements from a third party, whilst

Page 4 of 14

ASX Announcement

13 December 2017

Hannans has maintained its 20% interest in the gold rights. Hannans' 20% interest is free-carried, meaning Hannans is not required to fund any activities on the FGP until a decision to mine has been made. For the avoidance of doubt Hannans Ltd owns a 100% interest in non-gold rights on the FGP Tenements including but not limited to nickel, lithium and other metals.

The FGP contains an existing Mineral Resource of 5.9 Mt at 1.25 g/t for 240,000 ounces of gold, classified and reported in accordance with the JORC Code (2012), with a recent Scoping Study (see ASX Announcement released 2[nd] May 2017) suggesting both the technical and financial viability of the project. The current post-mining Mineral Resource for Lady Ada, Lady Magdalene and Lady Lila is tabulated below.

Additional technical detail on the Mineral Resource estimation is provided, further in the text below and in the JORC Table 1 as attached to ASX announcements dated 14[th] March 2017 and 21[st] March 2017.

		Indicated			Inferred
Prospect	Tonnes	Grade(Aug/t)	Ounces Au	Tonnes	Grade(Aug/t)	Ounces Au
LadyAda	283,500	1.78	16,200	260,000	2.2	18,750
LadyMagdalene	1,828,500	1.08	63,700	2,450,000	1.5	118,000
LadyLila				541,000	1.38	24,000
Total	2,112,000	1.17	79,900	3,251,000	1.53	160,750

Notes:

1. The Mineral Resource is classified in accordance with JORC, 2012 edition

2. The effective date of the mineral resource estimate is 31 December 2016.

3. The mineral resource is contained within FGP tenements

4. Estimates are rounded to reflect the level of confidence in these resources at the present time.

5. The mineral resource is reported at 0.5 g/t Au cut-off grade

6. Depletion of the resource from historic open pit mining has been taken into account

==> picture [419 x 269] intentionally omitted <==

Figure 3: Example of visible gold in rock samples taken from around the Lady Ada deposit (see announcement dated 12 Sept 2017)

Page 5 of 14

ASX Announcement

13 December 2017

==> picture [255 x 280] intentionally omitted <==

Figure 4: Regional Map

On behalf of the board,

Dean Goodwin CEO

Classic Minerals Limited

Phone: (08) 6305 0221 Address: 71 Furniss Road, Landsdale WA 6065 Postal: PO Box 487, Osborne Park WA 6917 Website: www.classicminerals.com.au

Forward Looking Statements

This announcement may contain certain “forward-looking statements” which may not have been based solely on historical facts, but rather may be based on the Company’s current expectations about future events and results. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have reasonable basis. However, forward looking statements are subjected to risks, uncertainties, assumptions and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forwardlooking statements. Such risks include, but are not limited to Resource risk, metals price volatility, currency fluctuations, increased production costs and variances in ore grade or recovery rates from those assumed in mining plans, as well as political and operational risks in the Countries and States in which we operate or sell product to, and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s annual reports, as well as the Company’s other filings. Readers should not place undue reliance on forward looking information. The Company does not undertake any obligation to release publicly any revisions to any “forward-looking statements” to reflect events or circumstances after the date of this announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

Competent Persons Statement

The information contained in this report that relates to Mineral resources and Exploration Results is based on information compiled by Dean Goodwin, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Goodwin is a consultant exploration geologist with Reliant Resources Pty Ltd and consults to Classic Minerals Ltd. Mr. Goodwin has sufficient experience that is relevant to the style of mineralisation and the type of deposit under consideration, and to the activity being undertaken 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”. Mr. Goodwin consents to the inclusion in this report of the matters based on his information in the form and context in which it appe

Page 6 of 14

ASX Announcement

13 December 2017

Summary of drilling details:

hole_id	hole_type	E_UTM	N_UTM	RL	depth	azimuth	dip
MARC019	RC	751435	6429500	415	156	270	-70
MARC020	RC	751350	6429470	415	138	270	-70
MARC024	RC	751430	6429525	415	150	270	-70
MARC026	RC	751384	6429550	415	168	270	-70

Page 7 of 14

ASX Announcement

13 December 2017

Appendix 1: JORC (2012) Table1

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 (eg 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 (eg ‘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 (egsubmarine nodules)maywarrant disclosure of detailed information.	• The samples were taken by a RC face sampling hammer drill. All RC holes were sampled at one-metre intervals. • Care was taken to control metre delineation, and loss of fines. • The determination of mineralisation was done via industry standard methods, including RC drilling, followed by splitting, crushing and fire assaying
Drilling techniques	• Drill type (eg core, reverse circulation, 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,bywhat method,etc).	• All drilling was completed using reverse circulation method, using a 685 Schramm 2010 model rig and 6m Remet Harlsen 4 ½ inch rods. The rig mounted Airtruck has 1150 cfm 500 psi auxiliary couples with a hurricane 7t Booster 2400 cfm/1000psi booster. The bit size was 5 5/8,
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.	• Recoveries from the drilling are not known, as sample weights were not recorded at this stage of exploration, but visual inspection of plastic sample bags in the field indicate that recoveries were sufficient.

Page 8 of 14

ASX Announcement

13 December 2017

	• Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	• The shroud tolerance was monitored, and metre delineation was kept in check. Loss of fines was controlled through mist injection. • It is not clear whether a relationship between recovery and grade occurs as recoverydata was not collected(e.g. bagweights).
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 andpercentage of the relevant intersections logged.	• Core and chips were logged to a level of detail to support the Mineral Resource estimation. • Logging was qualitative in nature. • All intersections were logged
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.	• Sample splitting on the rig was carried out using a Sandvik static cone and a Metzke splitter. Most sampling was dry, however, some sampling occurred wet. Further preparation at the laboratory was carried out using standard Rocklands crushers and linear sample dividers, followed by pulverising and scooping out of the bowl for final aliquot weighing. • The nature and quality of the rig sampling suits the purpose, being exploration. The laboratory preparation is standard practice and has not been further refined to match the ore. • Rig split duplicates were submitted. QC in the lab prep stage was limited to taking pulp duplicates (e.g. no coarse crush duplicates were submitted) • The sample split sizes (4-5 kg are regarded as more than adequate for the nature and type of material 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.	• Standard 50g fire assays with an AAS finish were used to get assay results. This is a total technique, and considered appropriate for this level of exploration. • Quality control was carried out by inserting blanks and standards into the sampling chain and 5% intervals. These all showed acceptable levels of accuracyandprecision.

Page 9 of 14

ASX Announcement

13 December 2017

	• Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias)andprecision have been established.
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 any adjustment to assay data.	• Significant intersections have not been validated by independent or alternative personnel. • No twin holes were included in this programme, as it is not relevant to the stage of exploration and purpose of this drilling. • All primary data was collected on spread sheets which have been validated for errors and included into an Access database. • Assaydata has not been adjusted
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.	• Drill hole locations were determined by GPS in the field in UTM zone 50. • Topographic control is available through a detailed satellite-derived DTM.
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. • Whether sample compositing has been applied.	• Holes were not drilled on a pattern and there was no specific drill hole spacing. In general holes are drilled within 50m from previous intersections. • The data spacing is considered sufficient to demonstrate geological and grade continuity for estimation procedures. • Samples were not composited.
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 orientation of sampling has achieved unbiased sampling of structures, with drilling perpendicular to the dip and strike of the mineralised zones • The relationship between the drilling orientation and the orientation of key mineralised structures is not considered to have introduced a samplingbias.
Sample security	• The measures taken to ensure sample security.	• Samples were immediately dispatched to the laboratory and have at all times been in possession of CLM or its designated contractors. Chain of custodywas maintained throughout.

Page 10 of 14

ASX Announcement

13 December 2017

Audits or reviews • The results of any audits or reviews of sampling techniques and data • No audits of any of the data have been carried out.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code 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 obtaining a licence to operate in the area.	• The FGP Tenements are registered in the name of Reed Exploration Pty Ltd, which is a wholly owned subsidiary of ASX-listed Hannans Ltd (ASX code: HNR). Classic has acquired 80% of the gold rights only, with the remaining 20% of the gold rights held free-carried by Hannans Ltd until a decision to mine. Hannans Ltd also holds all of the non-gold rights on the FGP tenements including but not limited to nickel, lithium and other metals • The acquisition includes 80% of the gold rights (other mineral rights retained by tenement holder) in the following granted tenements: E77/2207; E77/2219; E77/2239; P77/4290; P77/4291; E77/2303; E77/2220.
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	• All exploration was carried out by previous owners of the tenements (Aztec Mining, Forerestania Gold NL, Viceroy Australia, Sons of Gwalia)
Geology	• Deposit type, geological setting and style of mineralisation.	• The deposit is a Archean shear-zone hosted gold deposit. • Geological interpretation indicates that the general stratigraphy consists of metasediments, BIF’s and cherts to the east of the tenement, overlying an older sequence of metamorphosed komatiitic and high-magnesian basalts to the west. Black shales/pelites occur as small interbedded units throughout the stratigraphy, which dips gently to the east (10-35°) and strikes N-S, bending in a NNW direction in the far north of the tenement. • An Archaean-aged quartz dolerite unit (informally the ‘Wattle Rocks Dolerite’)is emplaced alonga contact between high-MgO basalt to the

Page 11 of 14

ASX Announcement

13 December 2017

==> picture [447 x 319] intentionally omitted <==

• 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: o easting and northing of the drill hole collar

west and low-MgO ultramafic to the east, in the western part of the tenement and is the host rock for the Lady Ada (and Lady Magdalene) mineralisation. Strongly magnetic Proterozoic dolerite dykes cross-cut the stratigraphy in an east-west direction, splaying to the ENE, following fault directions interpreted from the aeromagnetics. A number of narrow shear zones lie subparallel to the shallow-dipping metasediment-mafic contact within the host stratigraphy and are important sites and conduits for the observed mineralisation. The Sapphire shear zone strikes approximately ENE, dipping to the SE at about 25°, and appears to crosscut all lithologies. This shear zone and associated shears host the bulk of the gold mineralisation at Wattle Rocks. Similar flat-dipping shears are known to crosscut the Lady Magdalene area. Approximately 8-12 metres of transported sands and a gold depleted weathering profile of saprolitic clays overly the Lady Ada and Lady Magdalene mineralisation.

• Structurally, the Wattle Rocks area is quite complex and is positioned near the intersection of several major breakages and flexures in the regional stratigraphy in this part of the Forrestania Greenstone belt. Numerous shear zones are evident throughout the area, particularly at changes of rock stratigraphy where there are rheological differences. Narrow, stacked, flat-dipping shear zones are evident within the quartz dolerite unit and may have resulted from thrusting of the younger sedimentary sequence over the mafic package from east to west. A similar model is predicted for Van Uden (10 km northwards) where mineralised quartz veins appear to ‘stack’ through a host ferruginous metasediment.

• This information is provided in attached tables

Page 12 of 14

ASX Announcement

13 December 2017

	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 whythis is the case.
Data aggregation methods	• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg 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 clearlystated.	• High grades were not cut in the reporting of weighted averages in this Report. • Summary drill hole results as reported in figures and in the appendix 2 to this Report are reported on a 2m internal dilution and 0.5 g/t Au cuto-off.
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 (eg ‘down hole length, true width not known’).	• In almost all cases, the drill holes are perpendicular to the mineralisation. The true width is not expected to deviate much from intersection width.
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.	• Appropriate images have been provided in the Report.

Page 13 of 14

ASX Announcement

13 December 2017

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 misleadingreportingof Exploration Results.	• Figures represent specific selected drill intervals to demonstrate the general trend of high grade trends. Cross sections show all relevant result in a balanced way.
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.	• No other relevant data is reported
Further work	• The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commerciallysensitive.	• Further RC drilling is being considered. • Figures clearly demonstrate the areas of possible extensions

Page 14 of 14