COPPERMOLY LIMITED — Capital/Financing Update 2019

Aug 28, 2019

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ADDRESS PHONE Suite 2, 42 Morrow Street +61 (07) 3217 7544 TARINGA QLD 4068 EMAIL info@coppermoly.com.au ABN 54 126 490 855 WEBSITE www.coppermoly.com.au

ASX Announcement

29 August 2019

ASX Code: COY

Simuku IP Survey identifies multiple high priority targets

Highlights

• A 21km IP Survey was completed at Simuku in June to follow up anomalies identified by the 2017 VTEM survey

• Modelling of the IP survey data has revealed multiple anomalous chargeability and conductivity responses on every line in the survey which correlate strongly with known sulphide occurrences and are extrapolated to other untested areas

• A Classic Porphyry Model fits the Simuku Central mineralised zone which is adjacent to a pyrite-rich halo that has a strong IP response

• Several large volcanic centres were identified and have been interpreted as calderas which may host porphyry systems

• This mineralisation model was integrated with geological, geochemistry and geophysical data, which highlights two high ranked target areas that show features of the classic porphyry mineralisation system at Simuku East and Misusu.

• Follow up work involves confirming and extending the historical surface geological mapping and geochemistry, especially on structural features to further delineate the most productive drill sites.

Coppermoly Limited ( ASX:COY ) advises that the 2D and 3D modelling and interpretation of the survey data from the Simuku Induced Polarisation (IP) undertaken in May and June 2019 is complete. This work was undertaken by the Company in conjunction with independent geophysical consultants, Geodiscovery Group.

Coppermoly’s Managing Director Dr Wanfu Huang commented that the IP program has been successful in confirming multiple potential drill targets at the Simuku Project

“The 3D IP models and interpretation have provided some real insights into the known porphyry mineralisation systems in the area. Ongoing reviews of historic data with new data from our planned field works are expected to lead to the drilling of high potential mineralisation targets in near future,” he said.

Overview

An induced polarisation (and resistivity) survey was conducted at the Simuku tenement (EL2379) during May and June 2019. The objective of the survey was to follow up areas several EM anomalies associated with structural zones and intrusive complexes that were identified in the 2017 VTEM survey[1] .

Five areas were surveyed with 100m pole-dipole configuration after commencing the survey using a 100m dipole-dipole configuration (see Figure 1 for areas). Eleven east-west lines for a total of 21 kms were surveyed as single, two, or three-line blocks in each area.

The IP data quality is very high, to the maximum N separation of 8. 2D inverse modelling was undertaken on every line and 3D inverse modelling on each of the 5 areas (Figure 1). All modelling incorporated high resolution LiDAR topography information.

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Figure 1. 3DIP 100m depth drape. The bright colours in the image represent anomalous chargeability zones. The yellow dashed outlines represent the high priority targets generated from the new interpretation. The circles represent historical drilling and the red polygon is the outline of known mineralised zone[2] . Note: Depth drape is the sliced plan view image extracted from the 3D model at a constant depth below the topography. The background image is the LiDAR topography. The white line ‘A’ is the location of IP section through Simuku Central (Fig 2a). The white line ‘B’ is the location of the IP section through Simuku East (Fig 2b). UTM coordinate zone: WGS84_56S.

1 Refer ASX announcement dated 23 April 2018. The Company is not aware of any new information or data that materially affects the information contained in that announcement

2 Refer Table 1 and Table 2 for locations of, and significant intercepts from, historical Simuku drillholes.

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Figure 2a and b. Sections of 3DIP model west to east along the line SIM19_06 through Simuku Central (a. upper) and SIM19_04 through Simuku East (b.lower) from the 2019 survey (location Line A and B respectively in Figure 1). Note the spatial relationship between the known mineralisation zone at Simuku Central (grey dashed outline) and the comparison to the IP chargeability high at Simuku East.

Target Generation

The 2019 survey covered the known mineralisation zone at Simuku Central, but also revealed other high potential zones of similar mineralisation.

Simuku Central

Simuku Central is represented by the 3 IP lines that cross historical drill holes with known Cu mineralisation and the surrounding area.

There are several significant chargeability responses, the most interesting of which is directly juxtaposed with the currently known mineralised drill holes. The IP chargeability response in the mineralised zone is low to moderate compared to the high chargeability response directly to the east (Figure 3). The one drill hole through this chargeability zone shows a spike in pyrite content and consistently low Cu values (Location of BWNBDD0019A on Figure 3 and assay results in Table 1).

When compared to some type example global porphyry systems, the Simuku deposit appears to fit a classic model where the high chargeability zones represent a pyrite-rich halo next to a mineralised porphyry which correspondingly has a relatively lower chargeability response (one such type example is Batu Hijau deposit in Indonesia).

The high chargeability zones to the west of the mineralisation zones are not well understood to date. However, several high chargeability zones coincide with zones of high magnetic response, which form a ring feature around a broad magnetite destruction core (Figure 4).

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Figure 3 . East to West section extracted from IP Line SIM19_06 which crosses directly by drill hole BWNBDD0019A that penetrates through the high IP chargeability anomaly (orange). This hole has elevated pyrite content up to 8-10% within the anomalous IP zone whereas the other holes in the lower chargeability zones have pyrite values rarely above 1%. The classic porphyry model has ring of pyrite-rich, Cu-poor sulphide content which corresponds to a high chargeability response with a central Cu-mineralised zone of lower chargeability which has lower overall volume of pyrite.[3]

This interpreted model implies that current known mineralisation at Simuku lies within part of a large circular magnetic feature that is likely to represent a volcanic centre such as a caldera. (Figure 4). This caldera feature has a reasonably coherent ring of high magnetic response which associates quite well with high IP chargeability around its margin. The known mineralised zones lie within the magnetic and IP low in the central portions.

Follow up field check on the high chargeability zones around the caldera is considered for the next phase of the Simuku exploration program.

3 Refer Table 1 and Table for locations of, and significant intercepts from, historical Simuku drillholes

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Figure 4 . Interpretation of an approximately 2km diameter caldera hosting a porphyry intrusive cluster. Modelled magnetic image (RTP 1VD colour) overlain by IP chargeability layer (inside white dashed lines). SIM19_06 is the location of IP section shown in Figures 2 and 3. Black circles are the drill holes. The yellow outline is the area where drill holes have recorded significant Cu intercepts.

This model can be translated to other similar looking areas within the Simuku tenement that have sufficient IP coverage such as Simuku East and Misusu as explained below.

Simuku East Porphyry Target

Three IP lines went through the Simuku East area, which revealed a zone of very high chargeability sitting on the west margin of a magnetic ring feature (Figure 5)

Historical mapping observed a felsic porphyry intrusive unit surrounded by more dominant dioritic and volcanic units very similar to those at Simuku Central. Also, the historical stream sediment data for this area has several occurrences of elevated Cu values draining from the centre of this target zone (Figure 5). A short visit to verify a surface IP zone confirmed that pyrite was the probable source of the chargeability anomaly.

If the model for Simuku Central is applied to this area it may represent a good size target to host a potential mineralised porphyry within the interpreted zone of magnetite destruction (Figure 5)

The follow up work program for this area is to review the historical mapping and geochemistry in order to define drill targets.

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Figure 5 . Simuku East IP survey area. The yellow dashed line defines the interpreted zone of magnetite destruction and represents a target of interest to potentially host a porphyry system. The 3DIP 100m depth chargeability drape overlies the background image of VTEM modelled magnetic susceptibility 200m depth slice. The white dashed line represents the location of the IP section (line SIM19_04) shown in Figure 2.

Misusu

Only one IP line crossed this area in the 2019 survey. The combination of the 2019 IP survey model with the historical GAIP data and VTEM magnetic model allowed for the interpretation of a semi-circular ‘caldera’ structure. Once again there is a correlation with the higher IP chargeability and the stronger magnetic zones (Figure 6).

Historical mapping has highlighted scattered zones of ‘porphyry’ stockwork and stream sediment geochemistry recorded irregular elevated Cu values which made this area an attractive prospect. The main target zone of interest lies within the inner part of the caldera feature which could be greater than 1,000 x 500m.

The follow up exploration plan is to confirm and expand on historical mapping and geochemistry to delineate more precise information, especially structural orientation, that could be crucial to define drill targets.

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Figure 6. 3DIP 100m depth drape (white dashed line polygon) overlies GAIP image with strong chargeability zone in pink with the interpreted ‘caldera’ rim outlined by the thick dashed line. It is interpreted to be cut off by a major fault along the Simuku River. The internal zone outlined in yellow is lying within the caldera represents an attractive porphyry target. The background image is the VTEM modelled magnetic susceptibility 200m depth slice

.

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About Coppermoly

Coppermoly Ltd (COY) is an ASX listed junior exploration company which has been listed on the ASX since 2008. Coppermoly’s head office is located on the Gold Coast, Australia and its mineral exploration activities are focused entirely on the island of New Britain in PNG where it is exploring for copper, gold, silver, zinc, and molybdenum.

Competent Persons Statement

The information in this announcement that relates to Exploration Results is based on information compiled by Dr Peter Victor Crowhurst, who is a Member and Registered Professional Geologist with the Australian Institute of Geoscientists. Dr Crowhurst has sufficient experience which is relevant to the style of mineralisation under consideration and to the activities 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’. Dr Crowhurst is the full time Exploration Manager at Coppermoly and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward Looking Statements

This release may include forward-looking statements, which may be identified by words such as "expects", "orebodies", "believes", "projects", "plans", and similar expressions. These forwardlooking statements are based on Coppermoly’s expectations and beliefs concerning future events. Forward looking statements are necessarily subject to risks, uncertainties and other factors, many of which are outside the control of Coppermoly, which could cause actual results to differ materially from such statements. There can be no assurance that forward-looking statements will prove to be correct. Coppermoly makes no undertaking to subsequently update or revise the forward-looking statements made in this release, to reflect the circumstances or events after the date of that release.

Table 1 - Location of previously drilled Simuku drillholes reported in figures 1 and 3

HOLE_ID	HOLE_TYPE	MAX_DEPTH	NORTH	EAST	RL	Dip	Azimuth
BWNBDD0004 BWNBDD0005 BWNBDD0006 BWNBDD0014 BWNBDD0015 BWNBDD0016 BWNBDD0018 BWNBDD0019 BWNBDD0019A BWNBDD0020 SMD01 SMD02 SMD03 SMD04 SMD13 SMD14 SMD15 SMD16 SMD17 SMD18 SMD19 SMD20 SMD21 SMD22 SMD23 SMD24 SMD25 SMD26 SMD27 SMD28 SMD29 SMD30 SMD31 SMH05 SMH06 SMH07 SMH08 SMH09 SMH10 SMH11 SMH12	DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD DD RC RC RC DD DD	685.5 547.9 402.3 1004.9 686.4 900 617.2 107.3 314.9 288 174.5 150 150.2 150 70.8 100.1 50.8 123.1 177.3 300 346.1 375.9 365 261.4 100.5 307.4 300 321 325.8 97.3 348.2 348.2 225.2 100 100 63 66 93 82 77 276.6	9365990 9366633 9365402 9367670 9367500 9366700 9365182 9368203 9368203 9367459 9367793 9366989 9367945 9367564 9367092 9367096 9366840 9366839 9367789 9368287 9368166 9367997 9367402 9367814 9367728 9368784 9368242 9368165 9367659 9367986 9367483 9367307 9368002 9367745 9367576 9368185 9367624 9367623 9367569 9368189 9368113	169085 169254 168840 169940 169848 169900 175095 169969 169969 169456 169625 169188 169682 169688 169489 169466 169450 169454 169703 169713 169711 169796 169612 169468 169022 168892 169587 169713 169660 169857 169562 169682 169509 169910 169892 169736 169791 169792 169695 169741 169827	280 342 356 365 340 410 450 362 362 290 374 374 333 398 321 323 374 375 377 285 223 292 264 336 293 201 237 223 384 257 298 256 248 360 369 255 395 395 389 260 276	-60.2 -62 -59.5 -60 -60 -60 -61.6 -61.3 -62.7 -61 -70 -90 -70 -90 -45 -70 -70 -70 -90 -60 -60 -90 -60 -90 -90 -50 -60 -60 -75 -60 -60 -60 -60 -90 -90 -55 -90 -90 -90 -90 -75	292.9 295.2 319 310 295 300 271.1 300.2 299.8 298 115 0 115 0 262 202 276 29 0 30 37 0 287 0 0 107 37 210 107 52 280 287 100 0 0 126 0 0 0 0 316

Table 2 Significant intersections from previously drilled Simuku drillholes reported in Figures 1 and 3

Simuku Drill holes significant intersections that lie within the IP survey and are less than 300m

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JORC Code, 2012 Edition – Table 1 Simuku IP Survey June 2019 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	•No drilling completed during this program however the details from
	techniques	specific specialised industry standard measurement tools appropriate	historical drilling is presented in this table
		to the minerals under investigation, such as down hole gamma	•Drill core was sampled on site
		sondes, or handheld XRF instruments, etc). These examples should	•All drill samples were dispatched for assay to a recognised
		not be taken as limiting the broad meaning of sampling.	independent laboratory.
		• Include reference to measures taken to ensure sample representivity	•Diamond core drilling was used to obtain nominal 1 m (Barrick drill
		and the appropriate calibration of any measurement tools or systems	holes) or a combination of 1 and 2 m (Coppermoly drill holes) samples
		used.	of half core, with sample intervals adjusted to geological contacts
		• Aspects of the determination of mineralisation that are Material to the	where necessary.
		Public Report.	•RC samples were split with a cone splitter over 2m intervals.
		• In cases where ‘industry standard’ work has been done this would be	•No field duplicate samples were collected during any of the drill
		relatively simple (eg ‘reverse circulation drilling was used to obtain 1	programs, so an assessment of sample representivity cannot be
		m samples from which 3 kg was pulverised to produce a 30 g charge	undertaken.
		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	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air	•Diamond core drilling, standard tube HQ (63.5mm diameter), with
	techniques	blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple	some PQ diameter at top of holes.
		or standard tube, depth of diamond tails, face-sampling bit or other	•Barrick holes were orientated.
		type, whether core is oriented and if so, by what method, etc).	•Reverse Circulation Drilling (4.25-inch face sampling hammer)
	Drill sample	• Method of recording and assessing core and chip sample recoveries	•Core recovery was determined by direct measurement of the length of
	recovery	and results assessed.	recovered core within each core run.
		• Measures taken to maximise sample recovery and ensure	•Core recovery for diamond core averaged greater than 90% within
		representative nature of the samples.	mineralised zones.
		• Whether a relationship exists between sample recovery and grade	•No data exists for RC recovery
		and whether sample bias may have occurred due to preferential	•The relationship between recovery and grade was assessed by plotting
		loss/gain of fine/coarse material.	recovery against the grade of samples collected. No relationship exists
			betweencorerecovery and grade ofcopperorgold.
	Logging	• Whether core and chip samples have been geologically and	•All core and RC chips have been geologically logged, with details of
		geotechnically logged to a level of detail to support appropriate	lithology,alteration,weatheringand mineralisation recorded in a

Criteria	JORC Code explanation	Commentary
	Mineral Resource estimation, mining studies and metallurgical	manner considered by the Competent Person to be adequate for the
	studies.	purposes of Mineral Resource Estimation.
	• Whether logging is qualitative or quantitative in nature. Core (or	•Barrick also relogged older Coppermoly holes into a common format
	costean, channel, etc) photography.	•Geotechnical logging is restricted to RQD measurements on recovered
	• The total length and percentage of the relevant intersections logged.	core.
		•Core logging was both qualitative and quantitative depending on the
		property being assessed
		•Allcorewas photographedwet and dry priorto cutting
Sub-sampling	• If core, whether cut or sawn and whether quarter, half or all core	•Sub-samples from diamond core was collected by sawing 1m or 2m of
techniques	taken.	HQ core in half using a diamond-impregnated circular saw blade.
and sample	• If non-core, whether riffled, tube sampled, rotary split, etc and	•RC samples were split with a cone splitter.
preparation	whether sampled wet or dry.	•All samples were crushed, pulverised and split prior to assaying at
	• For all sample types, the nature, quality and appropriateness of the	Intertek Laboratories in Lae and Townsville. Sample preparation
	sample preparation technique.	procedures were not observed by the Competent Person and could not
	• Quality control procedures adopted for all sub-sampling stages to	be verified.
	maximise representivity of samples.	•No field duplicates/second-half sampling of core has occurred.
	• Measures taken to ensure that the sampling is representative of the	•Sample preparation techniques are considered appropriate for the
	in-situ material collected, including for instance results for field	style of mineralisation being assessed.
	duplicate/second-half sampling.	•Sample sizes are considered appropriate to the grain size and style of
	• Whether sample sizes are appropriate to the grain size of the material	material being sampled: copper mineralisation is generally distributed
	being sampled.	fairly homogeneously throughout the core at the scale of sampling.
Quality of	• The nature, quality and appropriateness of the assaying and	•The IP data were acquired using a GDD Receiver (GRx8-32 Channels)
assay data	laboratory procedures used and whether the technique is considered	coupled with a Zonge Transmitter (Model GGT-10). Full waveform data
and	partial or total.	were recorded using a transmitter fundamental frequency of 0.125 Hz.
laboratory	• For geophysical tools, spectrometers, handheld XRF instruments, etc,	•Barrick Sample Process:
tests	the parameters used in determining the analysis including instrument	•Base metal analysis used a 4-acid digest with ICP-OES finish.
	make and model, reading times, calibrations factors applied and their	Analyses returning above detection limit results were re-digested and
	derivation, etc.	re-analysed by ICP-OES. Gold analysis used a 50g charge for Fire
	• Nature of quality control procedures adopted (eg standards, blanks,	Assay with AAS finish. Both techniques are considered to provide total
	duplicates, external laboratory checks) and whether acceptable levels	assays for metal content.
	of accuracy (ie lack of bias) and precision have been established.	•Standards and blanks for copper and gold, were sourced reputable
		Australian suppliers and were inserted into sample batches by onsite
		geologists
		•Acceptable levels of accuracy have been established by the analysis
		of standards, and no contamination was detected by analysis of blanks.
		•Precision levels have not been assessed.
		•Intertek Laboratoriesmaintainarigorous QualityManagement System.

Criteria	JORC Code explanation	Commentary
		•Coppermoly Sample Process:
		- Drilling samples were transported to the camp site, logged,
		photographed and sampled at 2 metre intervals from core split by
		core saw
		- The split samples were then transported to the town of Kimbe
		where they are air freighted to Intertek in Lae (PNG) for sample
		preparation. Samples are dried to 106 degrees C and crushed to
		2-3 mm. Samples greater than 2kg are rifle split down to 1.5kg
		and pulverised to 75 microns.
		- The final 300g sized pulp samples were then sent to Intertek
		laboratories in Jakarta for geochemical analysis. Intertek analyse
		for gold using a 50g Fire Assay with Atomic Absorption
		Spectroscopy finish.
		- Other elements were assayed with ICPAES Finish. Copper values
		greater than 1000ppm are re-assayed using a multi acid digest
		(hydrochloric, nitric, perchloric and hydrofluoric acid) to leach out
		the copper with an ICP finish.
		- Molybdenum samples greater than 100ppm were check assayed
		using X-Ray diffraction. Intertek laboratories have an ISO 17025
		accreditation.
Verification of	• The verification of significant intersections by either independent or	•Significant intersections have not been validated by independent
sampling and	alternative company personnel.	personnel.
assaying	• 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.	•Primary sampling data is recorded on paper log sheets and transferred to a spreadsheet and then to a central relational database (MS Access). Assay results are obtained electronically from the assay laboratory, uploaded to the database and matched with the appropriate
		sample intervals using a database query.
		•No adjustments have been made to any assay data.
		•AusThai Geophysical Consultants Ltd (ATG) collected the data on site
		and conducted internal checks with regular transfer of data to
		Independent Geophysical Consultant from Geodiscovery Group Ltd
		(GDG) for verification

Criteria	JORC Code explanation	Commentary
Location of	• Accuracy and quality of surveys used to locate drill holes (collar and	•All IP survey control points using non-differential GPS referenced to
data points	down-hole surveys), trenches, mine workings and other locations	WGS84_UTM56S. Elevations recorded from GPS and corrected
	used in Mineral Resource estimation.	relative to LiDAR data. Position precision – Horizontal +/- 2m, Vertical
	• Specification of the grid system used.	+/- 5m.
	• Quality and adequacy of topographic control.	•Drill collar locations were surveyed using hand-held GPS with a
		horizontal accuracy of ±3m and a vertical accuracy ±9-12m.
		•Exploration uses coordinates in Australian Geodetic Datum 1966
		(AGS66), zone 56.
		•Topographic control is very good and is provided by a LiDAR survey.
		Drill collar elevations have been corrected from their GPS coordinates
		to match the LiDAR surveyed surface.
		•Downhole surveys were taken using an electronic multi-shot tool
		using the wireline drilling system. RC holes were surveyed in the
		rods, thus no reliable azimuths were available for RC holes.
Data spacing	• Data spacing for reporting of Exploration Results.	•IP receiver electrode spacing of 100m, transmitter electrode spacing
and	• Whether the data spacing and distribution is sufficient to establish the	of 100m and line spacing 200m which is adequate for porphyry style
distribution	degree of geological and grade continuity appropriate for the Mineral	targets. A combination of DP-DP and PDIP were used during this
	Resource and Ore Reserve estimation procedure(s) and	program.
	classifications applied.	•Mineral resource estimation under 2012 JORC code has not been
	• Whether sample compositing has been applied.	conducted as yet
Orientation of	• Whether the orientation of sampling achieves unbiased sampling of	•The IP survey was orientated perpendicular to the prevailing known
data in	possible structures and the extent to which this is known, considering	mineralization trend and locally mapped geology to reduce any bias
relation to geological	the deposit type. • If the relationship between the drilling orientation and the orientation	•Drill hole orientations are varied depending on drilling program.
structure	of key mineralised structures is considered to have introduced a	•No sampling bias is considered to be introduced by drill hole
	sampling bias, this should be assessed and reported if material.	orientation
Sample	• The measures taken to ensure sample security.	•Samples were placed in numbered calico bags and loaded into
security		wooden crates for shipment to the assay laboratory in Lae.
		•Prior to shipment all samples were stored in the Company's secure
		exploration base in Kimbe, West New Britain Province.
Audits or	• The results of any audits or reviews of sampling techniques and data.	•No audits or reviews of sampling techniques and data has occurred
reviews

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.	Exploration licence, EL2379, was granted by the Independent State of Papua New Guinea on September 2015 for a 2-year period. It was the amalgamation of 2 historical tenements. Renewal applications have been submitted for a further 2-year period at each anniversary. The tenement covers 122.72 km2 (36 sub-blocks) and lies approximately 23km southwest of the town of Kimbe which is the capital of West New Britain Province. The tenement is held by Copper Quest (PNG) Ltd which is a wholly owned subsidiary of Coppermoly Limited. Barrick still have a nominal 28% interest in the licence. The tenement lies within an area owned by traditional landowners whom support the project through the government regulated warden hearing process.
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	The project area has a long history of intermittent exploration since the discovery of mineralization in the 1960’s. Companies that have previous held the ground or been involved in joint ventures include; CRA, BHP- Utah, Nord Resources, Esso, City Resources, Placer, Cyprus-Amax, Macmin, Coppermoly and New Guinea Gold Ltd. Multiple drilling campaigns have been completed within the tenement and the material drill hole data relevant to the Simuku Prospect are listed in Appendix 1 accompanying this document. In 1994-95 Placer Dome acquired a Gradient Array Induced Polarisation (GAIP) grid over the Simuku prospect area. 30 line kilometres was collected using 400m spaced lines with receiver dipoles spaced 50m apart. The transmitter dipoles were 1.5km long and a frequency of 0.5 Hz was used. The modelled image of the GAIP is shown in Figure 4. Based on the GAIP data, two lines of Dipole-Dipole (DP-DP) were obtained in order to further test mineralization potential in the area. A line spacing of 100m was used surveying to n=5 resulting in a depth penetration of ~150m. Data has been digitized from original hardcopy reports and re- gridded (GAIP) and reprocessed using the Zonge 2D smooth inversion routine (DDIP).
Geology	• Deposit type, geological setting and style of mineralisation.	Copper-Molybdenum Porphyry style. Volcanic arc, calc-alkaline intrusives and volcanics. Quartz-feldspar (dacitic) porphyry is the main host of mineralization with chalcopyrite the primary sulphide with minor molybdenite and pyrite and overlain by a variable thickness supergene zone with more common oxides including chalcocite.

Criteria	JORC Code explanation Commentary
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 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. Refer Table 1 in the Market Announcement
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 clearly stated. Not Applicable
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’). Not Applicable
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 maps are included in the body of the report to show location of IP survey and drill holes
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 Not Applicable

Criteria	JORC Code explanation	Commentary
	Exploration Results.
Other	• Other exploration data, if meaningful and material, should be reported	Twenty-one (21) line kilometres of combined 2D Dipole-Dipole (DP-DP)
substantive	including (but not limited to): geological observations; geophysical	and Pole-Dipole Induced Polarisation (PDP-IP) survey over high ranked
exploration	survey results; geochemical survey results; bulk samples – size and	VTEM anomalies. On each line a measurement was collected every
data	method of treatment; metallurgical test results; bulk density,	100m along E-W orientated lines to an optimal depth of depth of n=8.
	groundwater, geotechnical and rock characteristics; potential	Quality control was checked by an Independent Geophysics Consultant
	deleterious or contaminating substances.	and data was modelled in 2D and 3D using Geosoft software
		Inversion of any geophysics data is a best case estimate of the physical
		features that generated the response from the available data. The
		various algorithms and constraining parameters are based largely on the
		experience of the geophysicist to produce an appropriate 2D or 3D
		model. From there several experienced geologists used this model to
		extrapolate the geology with assistance by other datasets and again
		experience related to this style of mineralisation
Further work	• The nature and scale of planned further work (eg tests for lateral	Current interpretation by in house geologists with relevant experience is
	extensions or depth extensions or large-scale step-out drilling).	aiming to define potential drill targets
	• Diagrams clearly highlighting the areas of possible extensions,
	including the main geological interpretations and future drilling areas,
	provided this information is not commercially sensitive.