CORAZON MINING LIMITED — Capital/Financing Update 2017

Mar 14, 2017

==> picture [593 x 96] intentionally omitted <==

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

ASX ANNOUNCEMENT 15 [th] March 2017
----- End of picture text -----

ASSAY RESULTS CONFIRM NICKEL-COPPER-COBALT SULPHIDE MINERALISATION AT FRASER LAKE COMPLEX

• Drill assay results from Fraser Lake Complex reveal mine-grade Ni-Cu-Co mineralisation

• Analogous with the nearby Lynn Lake Mine

• 24-year mining operation

• Head grade of 1.02%Ni, 0.54%Cu (Co not available)

• Initial results of selectively sampled semi-massive to massive zone reported in February, identifies two discrete intersections:

• 1.36m at 1.80% NiEq* (0.92% Ni, 0.89% Cu and 0.07% Co)

• 1.31m at 1.85% NiEq* (1.05% Ni, 0.67% Cu and 0.08% Co)

• Cobalt grades nearly double those historically reported at Lynn Lake

• Next phase of drilling underway

• First hole completed - intersected some of the best sulphide mineralisation at FLC to date

• Conductor not intersected in interpreted position

• Extensive Ni-Cu-Co sulphide mineralisation of intrusive gabbro

• Sulphidic sediment anomalous in nickel intersected deeper down-hole

• Additional down-hole EM underway to assess targeted anomaly

• Further assay results pending

• Exploration results over potential feeder zone identifies new targets

Corazon Mining Limited (ASX: CZN) (“Corazon” or “the Company”) is pleased to announce initial assay results from its Phase 1 drilling program at the Fraser Lake Complex (“FLC”) within the Lynn Lake Nickel-Copper-Cobalt Project in Canada, and advise that the second phase of drilling has commenced.

Assay results received to date confirm that Corazon has intersected Lynn Lake Mine tenor grade nickel-copper-cobalt mineralisation. This supports the Company’s view that the large mineralised magmatic sulphide system, identified by drilling to date at the FLC, has the capacity to host nickel-copper-cobalt deposits similar to that which supported mining for decades at the nearby Lynn Lake Mining Centre.

Corazon is focusing its exploration effort on a large induced polarization (IP) chargeable geophysical anomaly (the Matrix Trend) with a defined strike of 600m and potential strike of more than 1.5km. To date, three holes have tested this anomaly, with all intersecting substantial widths of nickel-copper-cobalt sulphide mineralisation. Despite these spectacular results, it’s the Company’s assessment that all three holes have not intersected the targeted anomalies and as such there is a continuous refinement of targeting models.

_____________ (* = Nickel equivalents (NiEq %) are used as an indicator of value, with there being reasonable expectations for the recovery of all metals reported. NiEq % = Ni%+((Cu% x (Cu$/Ni$))+((Co% x (Co$/Ni$)) where Ni$ = 4.60 $US/lb Cu$ = 2.61 $US/lb Co$ = 23.81 $US/lb.)

==> picture [594 x 51] intentionally omitted <==

==> picture [593 x 96] intentionally omitted <==

Lynn Lake “Run of Mine Grade” Mineralisation Intersected

The first phase of drilling intersected small zones of massive sulphide in a predominantly semimassive setting, proving the magmatic sulphide system within the Matrix Trend has the capacity to develop and host Lynn Lake-style deposits (ASX announcement 6 February, 2017).

Initial assay results from Phase 1 drilling consist of four samples from intervals including small zones of massive sulphide (within a sampled interval classified as semi-massive) and the distinctive ‘Leopard Rock’ mineralisation (Table 1 and Figure3). This mineralisation is considered the best intersection in the Phase 1 program,

Results indicate that within the FLC a sulphide content of between 35% and 50% can be expected to return grades of about 1% nickel, 0.6% copper and 0.07% cobalt (Table 1). These early results prove that the pyrrhotite, chalcopyrite and pentlandite sulphide mineralisation at the FLC is typical of the historical Lynn Lake Mining Centre.

The Company believes the potential exists to identify zones of higher grade mineralisation in the FLC, particularly massive sulphide mineralisation (50% to 100% sulphide content) which will deliver very strong nickel, copper and cobalt results. “Point values” taken with a hand-held XRF, from the small massive zones and strong sulphide aggregates, returned grades on average between 3% and 4% nickel (refer to Table 2 for details of this testwork).

Cobalt grades returned in the Phase 1 drilling were almost double the grade for corresponding nickel grade rocks within the historical Lynn Lake Mining Centre. The Company interprets this mineralisation to be a small finger off a larger sulphide body. The higher cobalt content supports that the mineralisation is late stage and possibly higher up in the magmatic system.

Depth	Depth	Width (m)	Description	Sulphide %	Results	Results	Results	NiEq %
From (m)	To (m)				Ni %	Cu %	Co %
387.50	388.86	1.36	Semi-Massive*	35-45	0.92	0.89	0.07	1.80
388.86	392.14	3.28	Altered Gabbro	trace - 5	Awaiting results
392.14	393.45	1.31	Leopard rock*	40-50	1.05	0.67	0.08	1.85

Table 1 – Composited assay results returned to date from Phase 1 drill hole FLC-2017-003. Visual sulphide % content is supported by geochemistry. Nickel equivalents (NiEq %) are used as an indicator of value, with there being reasonable expectations for the recovery of all metals reported. NiEq % = Ni%+((Cu% x (Cu$/Ni$))+((Co% x (Co$/Ni$)) where Ni$ = 4.60 $US/lb Cu$ = 2.61 $US/lb Co$ = 23.81 $US/lb. “ * ” = Refer Figure 3 for core photo.

The style and tenor of the nickel-copper-cobalt mineralisation in the Matrix Trend is significant in that it identifies the feeder zone of the FLC as a well mineralised magmatic system with the potential to develop high-grade sulphide deposits. Even more significant, the Company considers that neither hole FLC-2017-002 nor 003 intersected the targeted geophysical anomalies.

==> picture [594 x 51] intentionally omitted <==

==> picture [593 x 96] intentionally omitted <==

==> picture [477 x 415] intentionally omitted <==

Figure 1 – Geophysical Features and Targets . Aeromagnetic Total Field image overlain by Gradient Array IP Chargeability image, with the main IP anomaly (Matrix HC IP), IP Survey outline, historical drill hole and current drill hole locations (FLC-2017-*). A gravity high anomaly to the south of the FLC intrusion is believed to be the source of mantle material that feed the intrusion. The main IP anomaly trends off the IP surveyed area and is in alignment with the interpreted neck/feeder zone of the intrusion.

The FLC is pregnant with mature stage magmatic sulphides appearing in forms that suggest significant clustering and settling of sulphides within the melt.

The hangingwall (overlying) mafic sequence to the results in Table 1 (from surface to 387.5m), consisted predominantly of gabbroic rocks with pervasive magmatic sulphide mineralization over its entire length.

Numerous intervals containing approximately one percent sulphide consisting of interstitial sulphides and small droplets of sulphide were noted. Between these intervals, it is common to observe large (several millimeters to centimetre sized) magmatic pyrrhotite-pentlanditechalcopyrite droplets of variable frequency. In other places laminae of sulphides were conformable to the primary igneous fabric of the rock.

==> picture [594 x 51] intentionally omitted <==

==> picture [593 x 96] intentionally omitted <==

Localized irregular sulphide patches up to 70 cm in width were common, as well as a semimassive sulphides (~ 20%) from depths of 133.68m to 134.16m.

The footwall (underlying) magmatic stratigraphy from 393.45m to the end of the hole contained less amounts of sulphide material than the hangingwall. From 393.45m to 429 m several intervals with 3-5% interstitial and blebby sulphides as well as localized centimeter size sulphide droplets were apparent. From 429 to 478m the sulphide content decreased and contained only two intervals greater than two meters thick that contained 1-2 % sulphides.

Phase 2 Drilling Underway

Corazon advises that the next phase of drilling at the FLC has commenced, and the first hole in this program (FLC-2017-008) has been completed. It is one of several priority holes proposed within the Matrix Trend (Figure 1). FLC-2017-008 targeted a strong electromagnetic conductor generated from the Company’s recent down-hole electromagnetic survey (DHEM) of hole FLC2017-002, some 120m to the southwest (ASX announcement 13 February 2017).

Intrusive gabbroic units in hole FLC-2017-008 appear similar to the mineralised units within holes FLC-2017-002 and -003, also within the Matrix Trend. Nickel-copper magmatic sulphides appear as droplets and globules up to several centimetres in size. These sulphides represent zones of strongly disseminated to semi-massive concentrations in localized zones within the hole. They are mature stage magmatic sulphides appearing in forms that suggest significant clustering and settling of sulphides within the melt.

In conjunction with holes FLC-2017-002 and -003, initial interpretation of hole FLC-2017-008, has identified more than 400 metres strike of significant sulphide mineralisation within the Matrix Trend, a zone measuring +600m by 120m and open.

This hole has not intersected the targeted conductor at the interpreted position/targeted depth. the area appears structurally more complex than that previously observed within the FLC, however the Lynn Lake deposits can be quite disrupted and structurally controlled.

Sulphide rich sediments with up to 0.4% nickel (tested with hand-held XRF) were intersected 60m further down-hole from the targeted depth of the EM conductor. Further DHEM is currently underway to more accurately interrogate this area and assist in the targeting of follow-up exploration.

Drilling of hole FLC-2017-010 is about to commence. This hole is targeting a coincident magnetic, IP chargeable and nickel geochemical anomaly only 80m from hole FLC-2017-003 that intersected the semi-massive to massive sulphide mineralisation within the initial phase of drilling. FLC-2017-010 will also enable the DHEM testing of the mineralisation intersected in FLC-2017-003.

Exciting Targets Identified

Exploration of the FLC is at an early stage, and the project continues to appreciate in value and deliver impressive results. The discovery of the Matrix Trend is an exciting development and, importantly, represents just one of many priority targets within the intrusion. The first three holes into this zone have provided an enormous amount of information that is being fed back into the exploration targeting process.

==> picture [594 x 51] intentionally omitted <==

==> picture [593 x 96] intentionally omitted <==

In addition to drilling, on site there are three geophysical crews completing ground IP, ground magnetics and DHEM. The generation of new targets and the assessment of existing targets is a continuous process.

Early findings from the ground magnetics defines the interpreted feeder zone to the FLC as a distinctive magnetic feature. The typical Lynn Lake mineralisation has a magnetic signature. Both holes FLC-2017-002 and -003 had strong near surface sulphide mineralisation (assays yet to be received) that are magnetically anomalous. This work remains in progress and, used in unison with the IP surveys, will be a powerful prospecting tool.

Ground IP is underway testing the southwest strike extents of the feeder zone and the Matrix Trend. An initial gradient array survey should be completed within the next two weeks, with the detailed pole-dipole surveys to follow. From the gradient array survey, Corazon will be able to identify priority areas for follow-up exploration.

DHEM is underway on hole FLC-2017-008 and will be completed on all subsequent drill holes. The Company is quickly establishing that the stronger EM responses (conductors) may not be the best targets for magmatic sulphide deposits, as both holes FLC-2017-001 and -008 intersected sulphidic sediments. DHEM work completed by Corazon in 2011-2012 on a high-grade sulphide breccia within the Lynn Lake Mining Centre identified a very subtle EM response.

The Company continues to “data-mine” historical information. The one historic drill hole into the FLC that returned anomalous nickel and copper results (3.2m @ 0.82% Ni and 0.55% Cu) was completed in 1954 approximately 600m to the north of the Matrix Trend. The description of this mineralisation is similar to the near surface mineralisation intersected in holes FLC-2017-002 and -003 within the FLC.

The area historically drilled includes abundant barren sulphidic sediments (roof pendants) that are believed to be important in the formation of magmatic sulphides within the FLC. It is possible this area is prospective for extensive near surface mineralisation of a similar grade to that historically mined at Lynn Lake.

==> picture [594 x 51] intentionally omitted <==

==> picture [593 x 96] intentionally omitted <==

==> picture [459 x 522] intentionally omitted <==

Figure 2 – Project Location and Geology . Interpreted Geology – Emslie, R.R. and Moore, J.M. 1961. Manitoba Mines Branch, Publication 57-4. Datum UTM Zone 14 (NAD83). Lynn Lake is considered an historically significant nickel mine and remains the fourth largest nickel producing districts in Canada, despite the mine closing in 1976. The Fraser Lake Complex is twice as large as Lynn Lake and in many facets is geologically identical to Lynn Lake.

==> picture [594 x 51] intentionally omitted <==

==> picture [593 x 96] intentionally omitted <==

==> picture [438 x 584] intentionally omitted <==

• Figure 3 – Drill Core Photos – Fraser Lake Complex Drilling – 2017. (scale = Core Diameter 47.6mm) A. FLC-2017-003 - Semi-massive sulphide (massive sulphide with inclusions of rounded gabbro barren fragments)

• B. FLC-2017-003 - “Leopard Rock” sulphide mineralisation, grading into massive sulphide C. FLC-2017-008 - Immiscible Ni-Cu magmatic sulphides as droplets and globules up to several centimetres.

• D. FLC-2017-008 - Pentlandite and Chalcopyrite rimming Pyrrhotite

• E. FLC-2017-008 - Immiscible Ni-Cu magmatic sulphides as droplets and globules – Cu-rich zone.

==> picture [594 x 51] intentionally omitted <==

==> picture [593 x 96] intentionally omitted <==

END .

For further information visit www.corazon.com.au or contact:

Brett Smith James Moses Managing Director Media & Investor Relations Corazon Mining Limited Mandate Corporate P: +61 (8) 6142 6366 M: +61 (0) 420 991 574 E: info@corazonmining.com.au E: james@mandatecorporate.com.au

Competent Persons Statement

The information in this report that relates to Exploration Results and Targets is based on information compiled by Mr Brett Smith, B.Sc Hons (Geol), Member AusIMM, Member AIG and an employee of Corazon Mining Limited. Mr Smith has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Smith consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

Canadian geologist Dr Larry Hulbert has been engaged by Corazon to manage the collation of past exploration information and the definition of new targets at Lynn Lake. Dr Hulbert has extensive knowledge of the Lynn Lake district and over 40 years’ experience in Ni-Cu-PGM exploration and research. Dr Hulbert is one of North America's foremost experts on magmatic sulphide deposits and would 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. Hulbert has authored numerous professional papers, was the recipient of the Barlow Medal from CIM in 1993, a Robinson Distinguished Lecturer for the Geological and Mineralogical Association of Canada for 2001-2002, and in 2003 received the Earth Sciences Sector Merit Award from Natural Resources Canada.

Forward Looking Statements

This announcement contains certain statements that may constitute “forward looking statement”. Such statements are only predictions and are subject to inherent risks and uncertainties, which could cause actual values, results, performance achievements to differ materially from those expressed, implied or projected in any forward looking statements.

==> picture [594 x 51] intentionally omitted <==

Table 2: Checklist of Assessment and Reporting Criteria

15[th] March, 2017

- - Core Drilling Fraser Lake Complex Lynn Lake Project, Canada.

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	JORC Code explanation	Commentary
Sampling		Nature and quality of sampling (eg cut channels, random	Drill Core Sampling
techniques		chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or	Half core is sampled on the basis of geology. Minimum interval 200mm, maximum interval sampled is 1.5m.
		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	The drill core is cut using an industry standard core saw. Individual samples are collected in labelled calico bags. Sample weights are typically between 2kg and 5kg.
		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 (eg submarine
		nodules) may warrant disclosure of detailed information.
Drilling		Drill type (eg core, reverse circulation, open-hole hammer,	NQ drill core is being undertaken by Vital Drilling Services using an Atlas
techniques		rotary air blast, auger, Bangka, sonic, etc) and details (eg	Capco CS 1000. Rod lengths are 3m (NM – Atlas Capco), with core run
		core diameter, triple or standard tube, depth of diamond	lengths also of 3m.
		tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	Depth capacity of this drill rig is approximately 700 metres.
Drill sample		Method of recording and assessing core and chip sample	Recovery of the core drilling is excellent (+99%).
recovery		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.

1

Table 2: Checklist of Assessment and Reporting Criteria

15[th] March, 2017

- - Core Drilling Fraser Lake Complex Lynn Lake Project, Canada.

Criteria	JORC Code explanation	JORC Code explanation	Commentary
Logging		Whether core and chip samples have been geologically and	Core is geologically logged and tested for magnetic susceptibility &
		geotechnically logged to a level of detail to support	conductivity.
		appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core	A hand-held XRF (Niton) is used for the purposes of assisting with mineral identification and metal content.
		(or costean, channel, etc) photography.
		The total length and percentage of the relevant intersections
		logged.
Sub-		If core, whether cut or sawn and whether quarter, half or all	Drill core is cut and typically half core is taken as a sample for analysis.
sampling techniques and sample		core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	Quality control measures include core duplicates (1/4 core), CANMET certified reference materials (standards) and silica blanks.
preparation	 	For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling	Samples are transported to TSL Laboratories in Saskatoon for sample preparation, including total sample crushing and pulverising to 80% passing 75 microns.
		stages to maximise representivity of samples.
		Measures taken to ensure that the sampling is	Sample analysis is completed by ACME Laboratories in Vancouver.
		representative of the in situ material collected, including for
		instance results for field duplicate/second-half sampling.	Sample security is overseen by Aurora Geosciences personnel until shipment
		Whether sample sizes are appropriate to the grain size of	from site to the Laboratory. Shipment and transport is overseen by Corazon's
		the material being sampled.	Lynn Lake site manager.
Quality of		The nature, quality and appropriateness of the assaying and	Once sample preparation was completed by TSL Laboratories, they are
assay data		laboratory procedures used and whether the technique is	transported to ACME Laboratories in Vancouver for analysis. A multi-element
and		considered partial or total.	analysis is completed using ICP-MS with a 4 acid digest (30 gram samples). A
laboratory		For geophysical tools, spectrometers, handheld XRF	total of 37 elements are tested for (ACME method code AQ525).
tests		instruments, etc, the parameters used in determining the analysis including instrument make and model, reading	Both TSL and ACME are accredited Canadian laboratories.
		times, calibrations factors applied and their derivation, etc.	A hand-held XRF (Niton) is used for the purposes of assisting with mineral
		Nature of quality control procedures adopted (eg standards,	identification and metal content. Broad ranges for nickel and copper metal
		blanks, duplicates, external laboratory checks) and whether	contents have been stated. These results are indicative only and by no means
		acceptable levels of accuracy (ie lack of bias) and precision	truly representative and should not be used for the purposed of resource
		have been established.	calculations.

2

Table 2: Checklist of Assessment and Reporting Criteria

15[th] March, 2017

- - Core Drilling Fraser Lake Complex Lynn Lake Project, Canada.

Criteria	JORC Code explanation	JORC Code explanation	Commentary
Verification		The verification of significant intersections by either	Drilling is being managed by experienced geological personnel from Aurora
of sampling		independent or alternative company personnel.	Geosciences and overseen by Corazon’s consultant and nickel sulphide expert
and		The use of twinned holes.	Dr Larry Hulbert.
assaying	 	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data.	All data is captured electronically on site and transferred to backup facilities. All paper information is captured electronically and stored digitally and in paper format.
			No adjustment to primary assaying has been undertaken. All averaging over
			intervals is calculated on an individual interval weighted average basis.
Location of		Accuracy and quality of surveys used to locate drill holes	Drill holes were positioned using a hand-held Trimble GEOXH GPS and Reflex
data points		(collar and down-hole surveys), trenches, mine workings	Northfinder APS.
		and other locations used in Mineral Resource estimation. Specification of the grid system used.	The survey data is recorded in real-world grid system NAD 83 Zone 14.
		Quality and adequacy of topographic control.
Data spacing		Data spacing for reporting of Exploration Results.	Drill holes are widely space and targeted at individual geophysical anomalies.
and distribution		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	This exploration is reconnaissance in nature and as such will not result in the immediate definition of a mineral resource estimation.
		estimation procedure(s) and classifications applied.
		Whether sample compositing has been applied.
Orientation		Whether the orientation of sampling achieves unbiased	Drill holes are widely space and targeted at individual geophysical anomalies.
of data in relation to		sampling of possible structures and the extent to which this is known, considering the deposit type.	Azimuths and dips are variable, dependent on the targets being tested.
geological		If the relationship between the drilling orientation and the	No bias for the sampling has been established.
structure		orientation of key mineralised structures is considered to
		have introduced a sampling bias, this should be assessed
		and reported if material.
Sample		The measures taken to ensure sample security.	Sample security is overseen by Aurora Geosciences personnel until shipment to
security			the Laboratory.
			Individual samples are collected in plastic bags, before being bundled together
			into sealed in large PVC bags and sealed with securitytags for transport to the

3

Table 2: Checklist of Assessment and Reporting Criteria

15[th] March, 2017

- - Core Drilling Fraser Lake Complex Lynn Lake Project, Canada.

Criteria	JORC Code explanation	JORC Code explanation	Commentary
			laboratory.
			Shipment and transport of the samples to TSL Laboratories is overseen by
			Corazon’s Lynn Lake site manager.
Audits or		The results of any audits or reviews of sampling techniques	Industry standard duplicate sampling and submission of certified blank and
reviews		and data.	standard samples have been undertaken.
			At this stage, no audits or reviews have been conducted.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	JORC Code explanation	Commentary
Mineral		Type, reference name/number, location and ownership	The Fraser Lake Complex (FLC) is predominantly covered in an agreement
tenement		including agreements or material issues with third parties	between Mr Peter Dunlop and Corazon Mining Limited whereby Corazon has
and land		such as joint ventures, partnerships, overriding royalties,	the option to acquire 100% of the project by meeting certain conditions. This
tenure status		native title interests, historical sites, wilderness or national	agreement was originally announced within a Company ASX announcement
		park and environmental settings.	dated 18 May 2010, with the most recent amendments to this agreement
		The security of the tenure held at the time of reporting along	presented in a Company ASX announcement dated 29 July 2015.
		with any known impediments to obtaining a licence to operate in the area.	The tenure includes multiple Mineral Claims as defined by the Provincial Government of Manitoba. All claims are currently in good standing.
			Corazon Mining works closely with First Nation groups and several government
			organizations responsible for mining and the environment. Work Permits are
			currently in place for the FLC and covers activities such as ground geophysics
			and land-based drilling.
Exploration		Acknowledgment and appraisal of exploration by other	Where exploration has been completed by other parties, those parties have
done by		parties.	been referenced in this document or within previous ASX announcements by
other parties			the Company. In particular refer to CZN ASX announcement dated 11 April
			2016.

4

Table 2: Checklist of Assessment and Reporting Criteria

15[th] March, 2017

- - Core Drilling Fraser Lake Complex Lynn Lake Project, Canada.

Criteria JORC Code explanation	Commentary
Geology  Deposit type, geological setting and style of mineralisation.	Magmatic nickel-copper-cobalt sulphide deposits associated within mafic/ultramafic intrusive rock (gabbro related). Volcanogenic massive sulphide (VMS) deposits. Zinc dominant +/- lead, copper, silver and gold.
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.	Drill Hole Survey Data Survey data presented in real-world grid system NAD 83 Zone 14 Hole_ID East North RL Dip Azim Depth FLC-2017-1 370645 6295794 342.9 60 10 83 FLC-2017-2 370913 6296178 347.6 86 334 602 FLC-2017-3 370733 6296076 345.5 87 334 605 FLC-2017-4 371425 6295984 346.4 86 156 107 FLC-2017-5 372385 6295788 342.3 86 156 120 FLC-2017-08 370971 6296388 351.0 80 190 485 FLC-2017-010 370850 6296061 351.0 80 323 400
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.	No data aggregation has been reported in this announcement.
Relationship between mineralisatio n widths and  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.	Typical Lynn Lake Ni-Cu-Co Magmatic Sulphide Deposits Known nickel-copper-cobalt magmatic sulphide deposits in the Lynn Lake Mining Centre are typically “pipe-like” in form, averaging between 80m and

5

Table 2: Checklist of Assessment and Reporting Criteria

15[th] March, 2017

- - Core Drilling Fraser Lake Complex Lynn Lake Project, Canada.

Criteria	JORC Code explanation	JORC Code explanation	Commentary
intercept		If it is not known and only the down hole lengths are	120m in strike, 30m to 60m in width and with vertical extents of 100’s of
lengths		reported, there should be a clear statement to this effect (eg	metres. The historically mined deposits in the Lynn Lake area have been
		‘down hole length, true width not known’).	developed to a maximum depth of approximately 1,100 metres.
			Multiple sulphide pipe-like deposits have been identified and mined in the Lynn
			Lake area.
Diagrams		Appropriate maps and sections (with scales) and tabulations	Appropriate diagrams have been included in the announcement.
		of intercepts should be included for any significant discovery
		being reported These should include, but not be limited to a
		plan view of drill hole collar locations and appropriate
		sectional views.
Balanced		Where comprehensive reporting of all Exploration Results is	This report tables early findings with respect to core drilling currently being
reporting		not practicable, representative reporting of both low and	undertake within the FLC at Lynn Lake.
		high grades and/or widths should be practiced to avoid
		misleading reporting of Exploration Results.
Other		Other exploration data, if meaningful and material, should be	The announcement contains results of current and past exploration programs
substantive		reported including (but not limited to): geological	including surface sampling, drilling, geophysics and geological mapping.
exploration		observations; geophysical survey results; geochemical
data		survey results; bulk samples – size and method of	Information regarding this work has been referenced in this document or within
		treatment; metallurgical test results; bulk density,	previous ASX announcements by the Company.
		groundwater, geotechnical and rock characteristics;
		potential deleterious or contaminating substances.
Further work		The nature and scale of planned further work (eg tests for	Phase II Drilling at the FLC commence in March, 2017.
		lateral extensions or depth extensions or large-scale step- out drilling). Diagrams clearly highlighting the areas of possible	Ground geophysics is currently underway on the Project. This work will refine drill targets and test new areas.
		extensions, including the main geological interpretations and
		future drilling areas, provided this information is not
		commercially sensitive.

6