CLASSIC MINERALS LTD — Capital/Financing Update 2017

Jul 10, 2017

ASX Announcement

ASX: CLZ ACN 119 484 016

11 July 2017

CLASSIC DISCOVERS NEW HIGH GRADE ZONE AT LADY MAGDALENE DEPOSIT, FORRESTANIA GOLD PROJECT, WA

Highlights:

• Drilling at Forrestania Gold Project identifies new high-grade zone at Lady Magdalene deposit - reaffirming near-term strategy to systematically increase existing current mineral resource estimate (refer to ASX announcement dated 14[th] March 2017 for mineral resource estimate)

• Best results to date for Lady Magdalene deposit include:

• 7m @ 4.95 g/t Au from 138m – including 3m @ 10.0 g/t Au from 141m

• 12m @ 2.08 g/t Au from 139m – including 3m @ 4.6 g/t Au from 142m

• o 4m @ 4.66 g/t Au from 76m

• Lady Magdalene deposit previously subject to shallow, surface drilling only – previous drilling programs missed newly defined high grade zone

• Newly defined high grade zone remains open at depth and along strike – warranting further follow up activity in the near-term

• Initial results from Phase 1 drilling at both Lady Ada and Lady Magdalene deposits highlights significant potential for Classic to unlock a large-scale gold system at FGP

• Additional drill results from Phase 1 program expected to be released over coming weeks

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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 preliminary results from the Phase 1 drilling program at the Company’s Forrestania Gold Project (“FGP”) in Western Australia.

Drilling at Lady Magdalene 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. Importantly, results from initial holes have identified an additional zone of high grade mineralisation outside of the current resource which extends at depth and along strike, reaffirming management’s view that the FGP has the potential to host a much larger gold system that can be unlocked through further targeted drilling.

These latest results follow on from the robust initial assays returned from the Lady Ada deposit within FGP (see ASX announcement 4 July 2017), and further underpin Classic’s near-term growth strategy aimed at sufficiently growing its resource base to a size that supports establishment of an on-site processing facility at FGP (see Scoping Study announcement released 2 May 2017).

The Reverse Circulation (“RC”) program at FGP drilled to date has comprised a total of 18 holes for 3,670m (MARC001 - MARRC018). Results are presented for 8 holes (MARC005 – MARC013). Assay results for the remaining intersections and holes are expected to be announced as they are received.

Importantly, all the drill holes intersected quartz veining as well as zones of silicified/bleached gabbro (which appear to host mineralisation) within the targeted alteration zones.

An additional POW (“Program of Works”) lodged with the DMP (“Department of Mines and Petroleum”) for an in-fill and extensional drilling program has now been 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.

Classic’s Managing Director, Justin Doutch, commented:

“When we made the decision to proceed with the acquisition of the FGP project earlier this year, we were very confident of the potential to discover additional high-grade zones and deposits within the project area, given the lack of previous exploration for this style of mineralisation.

“As can be seen in Figure 1, majority of the previous drilling to the east and south east of Lady Ada and Lady Magdalene was superficial shallow RAB drilling. Our exploration team

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saw this is a great opportunity to assess the project with a fresh set of eyes and follow up trends we had identified as having potential to increase in grade at depth.

“To this end, these initial Lady Magdalene results, coupled with the positive recent results from Lady Ada, are very exciting, and point to a potentially large, underexplored gold system.

“With drilling approvals already in place, preparations are now underway to commence follow up drilling to define the extent of this mineralised zone in the near future.”

2. DRILLING AT LADY MAGDALENE – CONFIRMING RESOURCE DEVELOPMENT MODEL

The drilling results at Lady Magdalene confirm Classic's interpretation of the ore body, which is based on a south-easterly plunging shoot similar to the one observed along-strike at the Lady Ada ore body, as well as several other prospects along -and across strike in the project area.

These results suggest that, where previously the mineralisation had appeared closed off, the identified SE plunge leaves room for further down-dip extensions, and has the potential to add significantly to the mineral resources within the project area.

MARC009 hit strong mineralisation, with 7m at an average grade of 4.95 g/t Au from 138m, confirming the geometry and tenor of the high-grade component of the mineralised shears at Lady Magdalene (Figure 1 & Figure 2).

Both MARC005 and MARC008 also confirmed wide zones of mineralisation down-dip of the SE plunge direction (Figure 1 & Figure 3), with the mineralised zone intercepted in MARC005 potentially being even wider, because currently available assays end in mineralisation. Assays for the bottom of holes MARC005 and MARC013 are still being awaited.

MARC007 also hit good mineralisation, with 4m at an average grade of 4.66 g/t Au from 76m, defining a previously poorly defined parallel stacked shear in the hangingwall of the main zone intercepted by MARC005, 009 and 013 (Figure 1). Again, assays leading into this zone starting at 76m are still being awaited.

With the confirmation of the model and with mineralisation intercepted in all holes at Lady Magdalene, future work will focus on defining the likely economical boundaries to the ore body, followed by a programme pattern drilling to establish and increase the confidence in the Mineral Resource at Lady Magdalene.

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Figure 1 Planview map of recent drilling at Lady Ada and Magdalene

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

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Figure 3 NW-SE section through Lady Magdalene, Showing results for MARC005, 006, 007, 008, and 0013

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Figure 4 W section showing both Lady Ada and Lady Magdalene with recent drillholes and current extent of mineralisation

3. ABOUT CLASSIC MINERALS

Classic is an Australian based exploration company with tenements across four major regional exploration areas in Western Australia. Classic’s flagship projects are the FGP and Fraser Range. At Fraser Range, 40 km NE of Sirius’ Nova & Bollinger discoveries, Classic has discovered the Mammoth nickel-copper target, a new target style of magmatic nickel-copper mineralisation on the Fraser Range.

The FGP Tenements (Figure 4) 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 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 nongold rights on the FGP Tenements including but not limited to nickel, lithium and other metals.

The Forrestania Gold Project 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.

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Table 1 Mineral Resources at FGP

		Indicated			Inferred
Prospect	Tonnes	Grade (Au g/t)	OuncesAu	Tonnes	Grade (Au g/t)	OuncesAu
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
Lady Lila				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

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Figure 4 Location of the Forrestania Gold Project

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On behalf of the board, Justin Doutch Managing Director Follow us on Twitter @ClassicMinerals

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 forward-looking 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 “forwardlooking 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 Edward S. K. Fry, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Fry is a consultant exploration geologist with BGM Investments Pty Ltd and consults to Classic Minerals Ltd. Mr. Fry 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. Fry consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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Table 2 Summary of all results, reported at maximum 2m internal dilution and with a 0.5 g/t Au cut-off (Magdalene)

Hole	From	To	Length	Results	Comment
MARC005	70	71	1	1m @ 0.66 from 70m
MARC005	79	81	2	2m @ 0.84 from 79m
MARC005	92	94	2	2m @ 1.04 from 92m
MARC005	105	106	1	1m @ 9.99 from 105m	Ending in mineralisation, pending laboratory
					results
MARC005	179	186	7	7m @ 2.43 from 179	Including 1m @ 10.15 from 181m. Ending in
					mineralisation, pendinglaboratoryresults
MARC006	43	46	3	3m @ 0.51 from 43m
MARC006	50	53	3	3m @ 1.87 from 50m
MARC006	59	60	1	1m @ 0.62 from 59m
MARC006	65	66	1	1m @ 0.94 from 65m
MARC006	104	106	2	2m @ 0.82 from 104m
MARC006	115	116	1	1m @ 0.53 from 115m
MARC007	37	40	3	3m @ 0.71 from 37m
MARC007	43	44	1	1m @ 0.66 from 43m
MARC007	76	80	4	4m @ 4.66 from 76m
MARC007	88	89	1	1m @ 0.82 from 88m
MARC007	99	100	1	1m @ 2.12 from 99m
MARC008	57	58	1	1m @ 0.67 from 57m
MARC008	81	87	6	6m @ 1.18 from 81m	Including2m @ 2.06 from 83m
MARC008	139	151	12	12m @ 2.08 from 139m	Including3m @ 4.59 from 142m
MARC009	68	70	2	2m @ 1.4 from 68m
MARC009	75	77	2	2m @ 2.52 from 75m
MARC009	138	145	7	7m @ 4.95 from 138m	Including3m @ 10.00 from 141m
MARC010	101	102	1	1m @ 0.94 from 101m
MARC010	110	114	4	4m @ 3.25 from 110m	Including3m @ 4.10 from 111m
MARC010	186	191	5	5m @ 1.08 from 186m
MARC011	45	46	1	1m @ 0.82 from 45m
MARC011	110	111	1	1m @ 0.63 from 110m
MARC011	111	112	1	1m @ 0.78 from 111m
MARC011	117	122	5	5m @ 1.22 from 117m
MARC012	115	117	2	2m @ 3.05 from 115m
MARC012	122	127	5	5m @ 0.86 from 122m
MARC012	133	134	1	1m @ 0.65 from 133m
MARC013	117	118	1	1m @ 1.04 from 117m
MARC013	140	141	1	1m @ 1.08 from 140m
MARC013	226	228	2	2m @ 2.12 from 226m

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MARC014	117	118	1	1m @	0.57	from	117m
MARC014	130	131	1	1m @	0.84	from	130m
MARC014	134	135	1	1m @	0.56	from	134m
MARC014	212	214	2	2m @	0.78	from	212m

Table 3: Summary of drilling details (Magdalene):

hole_id	hole_type	E_UTM	N_UTM	RL	depth	azimuth	dip
MARC005	RC	751475	6430331	424	225	270	-60
MARC006	RC	751445	6430231	419	210	270	-60
MARC007	RC	751395	6430280	420	185	270	-60
MARC008	RC	751409	6430380	420	185	270	-60
MARC009	RC	751434	6430431	420	175	270	-60
MARC010	RC	751519	6430381	424	225	270	-60
MARC011	RC	751394	6430480	419	150	270	-60
MARC012	RC	751565	6430281	423	265	270	-60
MARC013	RC	751596	6430182	422	300	270	-60
MARC014	RC	751545	6430331	422	250	270	-60

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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 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

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	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 (eg submarine nodules) may warrant disclosure of detailed information.
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, by what 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 /1000 psi 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.  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.	 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.  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 recovery data was not collected (e.g. bag weights).

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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.	 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 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 laboratorytests	 The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is	 Standard 50g fire assays with an AAS finish were used to get assay results. This is a total technique, and considered

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	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.	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 accuracy and precision.
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 ofgeological andgrade continuityappropriate for the	 Holes were not drilled on a pattern and there was no specific drill hole spacing. In general holes are drilled within 50-75m formprevious intersections.

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	mineral resource and ore reserve estimation procedure(s) and classifications applied.  Whether sample compositinghas been applied.	 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 sampling bias.
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.
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 nationalpark and environmental	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 remaining20% of thegold rights held free-carried by

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	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.	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, Forrestania 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 along a contact between high-MgO basalt to the 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,splayingto the ENE,followingfault directions

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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:

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

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	easting and northing of the drill hole collar 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 clearlyexplain 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 onlythe down hole lengths are reported,	In almost all cases, the drill holes are perpendicular to the mineralisation. The true width is not expected to deviate much from intersection width.

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	there should be a clear statement to this effect (eg ‘down hole length,true width not known’).
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.
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.	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

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