CRITICAL RESOURCES LIMITED — Capital/Financing Update 2013

Dec 26, 2013

ASX Release 27 December 2013

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Hobbs Pipe – Mineral Resource Update Additional Information

Sovereign Gold Company Limited (Sovereign Gold) (ASX: SOC) is providing additional information at the request of the Competent Person related to the Mineral Resource which was previously reported on the 12 December 2013, “Hobbs Pipe – Mineral Resource Update”.

An error has been identified by the Competent Person in the tabulation of the Mineral Resource. The base of the Mineral Resource reported on the 12 December 2013 was to a depth of 900 m below surface. This revised Mineral Resource estimate is reported to a depth of 700 m below surface. The original inclusion of the additional 200 m vertical metres is part of the tabulation error. Mineralization is known to be continuous from 700 m to 900 m below surface, and open beyond 900 m below surface. However at present there is insufficient data available to demonstrate with confidence that mineralization below 700 m depth has reasonable prospects for eventual economic extraction and hence be reported as part of the Mineral Resource.

No information relevant to the estimation process, which is outlined in the attached Table 1 for reporting in accordance with the JORC Code, or input data, has been modified from that previously reported on 12 December 2013.

The updated Mineral Resource estimate is 770,000 ounces gold, from a total Mineral Resource estimate of 20.5 Mt at 1.1 g/t gold, at various cut-off grades.

Classification	Material	COG Au (g/t)	Tonnage (Mt) Au (g/t)	Au (oz)
Indicated (Surface to 150 m depth) Indicated (Surface to 150 m depth) Indicated (150 m to 700 m below surface)	Oxide Primary Primary	0.4 0.9 0.9	0.6 0.9 3.0 1.0 8.5 1.2	18,000 96,000 320,000
Total Indicated			12.1 1.1	440,000
Inferred (Surface to 150 m depth) Inferred (150 m to 700 m below surface)	Primary Primary	0.5 0.9	0.2 0.6 8.2 1.1	39,000 290,000
Total Inferred			8.4 1.1	330,000
Total			20.5 1.1	770,000

Notes:

1 The Mineral Resource is reported in accordance with the JORC Code, 2012.

2 All Mineral Resource tonnes have been rounded to the nearest 100,000 tonnes.

3 Ounces have been rounded to two significant figures.

4 COG is an abbreviation for cut-off grade.

5 Top cut / top cap of 5 g/t gold has been used to reduce 8 composited samples to 5 g/t gold.

6 The Mineral Resource has been reported with a 0.4 g/t gold cut-off grade for oxide material and 0.5 g/t gold cut-off grade for primary material, from surface to a depth of 150 m below surface. From 150 m below surface to 700 m below surface a higher cut-off grade of 0.9 g/t gold has been used. The different cut-off grades used take into account potential for use of different mining methods and oxidation states of the mineralization. A mining concept study has commenced to better define possible mining methods.

Geology

The Mount Adrah Gold Project is a Mesozonal to Epizonal Intrusion-Related Gold System (IRGS) in a dilational zone located along the Gilmore Suture on the edge of a buried pluton, see Figure 1. The deposit is a structurally controlled micro-breccia within a diorite body that intrudes to the current topographic surface. The mineralization in Hobbs Pipe is predominantly monzodiorite-hosted disseminated gold in arsenopyrite and pyrite, and also native gold in stockwork quartz veins. A cross section is shown in Figure 2 and an isometric view in Figure 3. Figure 4 is an oblique cross section and drillhole location plan.

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Figure 1 Location map and geological setting, EL 6372 Location of Mount Adrah relative to several world- class gold deposits situated on the Gilmour Suture and associated splays.

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Interpretation

All data available has been used to complete the interpretation which has been undertaken in plan view on 20 m spaced plans. Digital strings representing the mineralized Hobbs Pipe sharp lithological contacts were made and snapped to the drillholes. The mineralized Hobbs Pipe is roughly circular in outcrop and becomes elliptical at a depth of 500 m below surface, where the dimensions are interpreted to be approximately 180 m by 160 m in diameter.

A three-dimensional base of oxidation surface has been created from the geological logging information.

Drilling technique, sub-sampling and analysis

Drilling data used in the interpretation and estimation consists of historic and recent drillholes. Drill data varies in spacing from 20 m x 20 m to 200 m x 200 m in plan view. The drill core from recent drilling has been sampled in 2 m intervals downhole honouring the lithological contacts. Historic data has been sampled in 1 m intervals downhole. Drilling methods include diamond, reverse circulation and percussion. The recent diamond drilling is un-oriented PQ3 size drillhole near the collar with HQ3 triple tube oriented diamond core for the remainder of the drillhole. Diamond drilling has a sample recovery of 99%. Half diamond core has been submitted for analysis to an accredited laboratory. Analytical methods used include fire assay and screen fire assay for gold, and ICP-AES and ICP-MS for multi-element analysis. The historic reverse circulation and percussion drillhole data represent only approximately a quarter of the drill database. Full details of the historic sampling programmes are not available.

Estimation method

A three-dimensional solid was made by wire framing the 20 m spaced plan digital strings. This was filled with parent cells of 20 m x 20 m x 10 m with a minimum sub-cell size of 4 m x 4 m x 2 m. The block model was coded using the base of oxidation surface, oxide domain (above the oxidation surface) or primary domain (below the oxidation surface). Variograms where generated which showed continuity in all directions within the Hobbs Pipe. Investigation into the possible vertical grade layering identified in the variograms is ongoing. A two-structured spherical variogram was generated and used in an ordinary kriged estimation. Estimation was into parent cells with a discretisation of 4 x4 x 2. An octant search was used requiring four octants to be filled. The search used a minimum of 4 samples and a maximum of 18 samples from a minimum of three drillholes. The first search pass was 80 m x 100 m x 50 m, the same ratio as the variogram ranges, with a rotation of -25, 0, -85, Z, Y and X directions. The second search pass was double the first and the third search pass was triple the original search.

Classification criteria, cut-off grade and modifying factors

The Mineral Resource classification criteria used drill hole spacing as a proxy for confidence in the geological and grade continuity.

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Cut-off grades used are based on:

• Proximity of mineralization to surface.

• Potential mining methods.

• Assumed processing and recovery values based on preliminary test work.

Surface to 150 m depth

Surface is variable between 395 mRL and 420 mRL. 270 mRL is approximately 150 m below surface. Below this, it may no longer be possible based on the amount of waste which would be required to be moved to access the mineralization by open pit mining.

Where the drilling is more densely spaced, from surface to a depth of 150 m, the Mineral Resource has been classified as an Indicated Mineral Resource for the:

• Oxide domain, where the grade is greater 0.4 g/t gold.

• Primary domain, where the grade is greater than 0.9 g/t gold.

Both of these areas are geologically continuous zones of material which do include some material below the cut-off grade.

In the primary domain where the drilling is more densely spaced, a shell has been generated to confine a zone of lower grade material at a 0.5 g/t gold cut-off. This has been classified as an Inferred Mineral Resource, due to the lower confidence in the continuity of the lower grade material.

The cut-off grades and depths selected for the classification to 150 m depth are based on:

• Potential open pit mining.

• Mineralization out cropping.

• Gold price of A$1,300 per ounce.

• Processing of refractory mineralization using multiple processing methods.

150 m to 700 m below surface

From 150 m depth to 700 m below surface (270 mRL to a depth of -280 mRL) a classification wireframe shell has been generated around the close spaced drilling. Inside the shell is an Indicated Mineral Resource at a 0.9 g/t gold cut-off grade. Outside this shell is an Inferred Mineral Resource at a 0.9 g/t gold cut-off grade. Both of these are geologically continuous zones which contain some grade below the 0.9 g/t gold cut-off. This cut-off grade and the classification selected is based on:

• Potential underground mining using a smaller scale bulk mining method.

• There is reasonable grade continuity up to 1.2 g/t gold.

• Grade continuity deteriorates rapidly at around 1.5 g/t gold.

Below 700 m from surface

All material below 700 m depth has not been included in the Mineral Resource as there is insufficient data available to demonstrate with confidence that mineralization below 700 m depth has reasonable prospects for eventual economic extraction.

A conceptual mining method study has commenced and further drilling is planned both for Hobbs Pipe and for nearby targets of interest. This additional work will aid in establishing values with which to update the classification criteria going forward.

Qualifying Statements

The information in this report that relates to the Mineral Resources is based on information compiled by Ms T Burrows, a Competent Person who is a Member and Registered Professional Geologist of The Australian Institute of Geoscientists. Ms Burrows is employed by AMC Consultants Pty Ltd. Ms Burrows has been engaged as an external independent consultant by Gossan Hill Gold Limited. Ms Burrows has sufficient experience that is relevant to the style of mineralization and 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’. Ms T Burrows consents to the inclusion in this report of the matters based on her information in the form and context in which it appears.

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Figure 2 Oblique section looking north, Section No. 12

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Figure 3 3D View of the Hobbs Pipe 1 block model and drill holes looking toward the south-west

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Figure 4 Section and drillhole location plan

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Table 1 for reporting in accordance with the JORC Code

Section 1 Sampling Techniques and Data

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

Criteria	Criteria	Commentary	Commentary
Sampling	• Nature and quality of sampling (eg cut channels, random chips, or specif-	•	Diamond core HQ3 with ½ core samples.
techniques	ic specialised industry standard measurement tools appropriate to the	•	Diamond core HQ3 with ¼ core samples for some Screen Fire
	minerals under investigation, such as down hole gamma sondes, or		Assays.
	handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.	•	Consistent cut distance 1 cm to the right of the orientation or mark up line to reduce potential of bias, and to leave the
	• Include reference to measures taken to ensure sample representivity		orientation line in the tray
	and the appropriate calibration of any measurement tools or systems	•	Fire Assay and Screen Fire Assay Gold. Gold is predominantly
	used.		held in sulphides within disseminated sericite - sulphide
	• Aspects of the determination of mineralisation that are Material to the		alteration. Gold is occasionally visible in quartz veins.
	Public Report.	•	½ core HQ3 was sent to ALS laboratories on a 2m sample
			length basis and was pulverised to produce a 30g charge for fire
	• In cases where ‘industry standard’ work has been done this would be		assay (Au_AA25), and 4 acid digestion for 48 element ICP-AES
	relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m		and ICP-MS analysis (ME-MS61)
	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. Unusu- al commodities or mineralisation types (eg submarine nodules) may war- rant disclosure of detailed information.	• •	Screen Fire Assay on visible gold intercepts, on either full 2m sample lengths or on individual quartz veins that are expected to carry high grade gold. Historic reverse circulation (RC) air track (percussion) drilling
			was undertaken. There are no records of sampling methods in
			the available reports. Assay was by fire assay and Aqua Regia.
Drilling tech-	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air	•	Diamond core, un-oriented HQ3 (Vertical hole)
niques	blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or	•	Diamond core, oriented HQ3
	standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	• •	Diamond core, un-oriented PQ3 for hole collars Historic drilling includes RC, diamond and air track (RAB
			equivalent).
Drill sample	• Method of recording and assessing core and chip sample recoveries and	•	Core is drilled by HQ triple tube (HQ3) to maximise recovery.
recovery	results assessed.	•	Recovery is approximately 99% based on 2,290 measured
	• Measures taken to maximise sample recovery and ensure representative		intervals.
		•	There is no relationshipbetween recoveryandgrade in diamond

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Criteria	Criteria	Commentary	Commentary
	nature of the samples.		drill holes, correlation coefficient is -0.03.
	• Whether a relationship exists between sample recovery and grade and	•	There is no record of sample recovery for the historic drillholes.
	whether sample bias may have occurred due to preferential loss/gain of
	fine/coarse material.
Logging	• Whether core and chip samples have been geologically and geotechni-	•	Core has been logged for lithology and structural data, including
	cally logged to a level of detail to support appropriate Mineral Resource		recovery and RQD measurements.
	estimation, mining studies and metallurgical studies.	•	Core trays photographed and samples collected for specific
	• Whether logging is qualitative or quantitative in nature. Core (or costean,		gravity measurement.
	channel, etc) photography.	•	All core is logged, all core logged to the same standard.
	• The total length and percentage of the relevant intersections logged.	•	Historic holes have been logged for lithology and weathering / oxidation.
Sub-sampling	• If core, whether cut or sawn and whether quarter, half or all core taken.	•	½ Core cut with a core saw.
techniques and sample preparation	• If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	• •	¼ Core cut with a core saw for submission for metallurgical assessment. Sample preparation by accredited laboratory. High quality and
	• For all sample types, the nature, quality and appropriateness of the		appropriate preparation technique for assay methods in use.
	sample preparation technique.	•	Consistent sampling of core at 2m intervals, this is appropriate
	• Quality control procedures adopted for all sub-sampling stages to maxim-		given known grade homogeneity and observed mineralisation.
	ise representivity of samples.	•	At this time no field duplicates have been submitted, half or
	• Measures taken to ensure that the sampling is representative of the in		quarter core in storage if required for future analysis.
	situ material collected, including for instance results for field dupli-	•	Sample sizes are appropriate to the grain size of the material
	cate/second-half sampling.		being sampled.
	• Whether sample sizes are appropriate to the grain size of the material	•	Details of the historic RC sampling programme are not available.
	being sampled.
Quality of as-	• The nature, quality and appropriateness of the assaying and laboratory	•	For diamond core fire assay for gold and ICP-AES and ICP-MS for
say data and	procedures used and whether the technique is considered partial or to-		multi-element analysis. Techniques considered total for the type
laboratory	tal.		of mineralization sampled.
tests	• For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make	•	For diamond core Screen Fire Assay for visible gold intercepts or where coarse gold is predicted to occur.
	and model, reading times, calibrations factors applied and their deriva-	•	At this time no blanks, standards, field, course reject or pulp
	tion, etc.		duplicates have been submitted to the laboratory for testing. A
			QA/QCprogramme isplanned for submission of the above at a

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Criteria	Criteria	Commentary	Commentary
	• Nature of quality control procedures adopted (eg standards, blanks, du-		rate of 1:20 for all new holes. A blind repeat programme will be
	plicates, external laboratory checks) and whether acceptable levels of		established for existing assayed intervals.
	accuracy (ie lack of bias) and precision have been established.	•	Historic holes were assayed by a combination of Aqua Regia,
			Fire Assay and unspecified AAS.
		•	There is very little QA/QC available for the historic samples.
Verification of	• The verification of significant intersections by either independent or al-	•	No twinned holes have been drilled. Historic RC drill data
sampling and	ternative company personnel.		supports the grade ranges from new diamond drill holes.
assaying	• The use of twinned holes.	•	Review of the grade distribution between the diamond and the historic RC holes indicates that it is possible the RC holes are
	• Documentation of primary data, data entry procedures, data verification,		bias low compared to the diamond drill holes. This is in the
	data storage (physical and electronic) protocols.		process of being reviewed.
	• Discuss any adjustment to assay data.	•	There are no samples of the historic drill holes of sufficient size for re assay submission. Some sample remnants are in some
			chip trays at the Londonderry Core library.
		•	At this time there are no processes or procedures guiding data
			collection, collation, verification and storage. Implementation
			and development of procedures and documentation are
			currently being planned.
		•	There are no adjustments to the assay data.
Location of	• Accuracy and quality of surveys used to locate drill holes (collar and	•	Current drilling sited using hand held Garmin GPSMAP® 62sc.
data points	down-hole surveys), trenches, mine workings and other locations used in	•	Digital survey tool used for down hole surveying
	Mineral Resource estimation.	•	DGPS Collar location and RL data will be undertaken going
	• Specification of the grid system used.		forward.
	• Quality and adequacy of topographic control.	•	All recently drilled holes will where possible be re surveyed using DGPS at the completion of the next drilling programme.
		•	All current data is in MGA94 (Zone 55).
		•	Historic data has been converted to in MGA94 (Zone 55).
		•	Historic data collar co-ordinates have been confirmed as being
			/in the correct position/ within 1m/ in MGA94 (Zone 55) by or is
			this yet to be done.
		•	Digital topographic data is available from a detailed DTM survey
			undertaken in 1997. The accuracy of the data at a project scale
			is yet to be assessed but is assumed to be reasonable.

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Criteria	Criteria	Commentary	Commentary
Data spacing	• Data spacing for reporting of Exploration Results.	•	There is sufficient data and it is sufficiently closely spaced to
and distribu- tion	• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral		establish a reasonable geological interpretation in the area of interest. The data available also provided continuity of mineralization and a local scale.
	Resource and Ore Reserve estimation procedure(s) and classifications applied.	•	Current drill spacing of 200m x 200m down to 20m x 20m allows for the reporting of a Mineral Resource.
	• Whether sample compositing has been applied.	•	Samples have not been composited but 2m half core sample
			lengths have been submitted for assay on the basis of the gold
			mineralization being homogenous.
Orientation of	• Whether the orientation of sampling achieves unbiased sampling of pos-	•	Current drilling has employed core orientation device for all
data in rela-	sible structures and the extent to which this is known, considering the		holes with the exception of GHD001 which was a vertical hole.
tion to geolog- ical structure	deposit type. • If the relationship between the drilling orientation and the orientation of	•	Significant orientated structural data on geological and structure features have been collected.
	key mineralised structures is considered to have introduced a sampling	•	The geological area of interest is vertical at approximately 180m
	bias, this should be assessed and reported if material.		x 160m in diameter. Diamond holes have been from numerous
			directions, vertical holes have also been drilled.
		•	Given the style and nature of the mineralization observed, drill
			angle relative to structure or vein orientation is not considered
			relevant at this stage with respect to sample bias.
Sample secu-	• The measures taken to ensure sample security.	•	Current core samples are securely stored at a private facility.
rity
Audits or re-	• The results of any audits or reviews of sampling techniques and data.	•	As part of the block model estimation and Mineral Resource
views			report a high level review of data collection, collation, storage
			and procedures has been undertaken. The data has been found
			to be in good condition. The lack of documented procedures and
			QA/QC is has been commented upon and plans are being
			generated to rectify outstanding issues going forward. Where
			practicable previous drilling and historic data will be validated as
			well.

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Section 2 Reporting of Exploration Results

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

	Criteria	JORC Code explanation	Commentary	Commentary
	Mineral tene-	• Type, reference name/number, location and ownership including agree-	•	EL6372 held 100% by Tasman Goldfields NSW Pty Ltd, a
	ment and land	ments or material issues with third parties such as joint ventures, part-		wholly owned subsidiary of Gossan Hill Gold Limited, itself a
	tenure status	nerships, overriding royalties, native title interests, historical sites, wil-		majority owned subsidiary of Sovereign Gold Company Ltd
		derness or national park and environmental settings.		(ASX: SOC).
		• 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.	•	Tenure is current and in good standing. There are no extraordinary impediments to obtaining a licence to operate in the area.
	Exploration	• Acknowledgment and appraisal of exploration by other parties.	•	Historic work undertaken by Getty Oil, Cyprus Australis,
	done by other			Michelago and Golden Cross Resources have contributed to
	parties			the current project development. Soils, airborne magnetics,
				rotary air blast (RAB), Airtrack, RC, diamond drilling, and
				some resource estimation work has been completed
				previously. Work was undertaken to a high standard, there
				was a lack of conceptualization and testing of geological
				models for deeper targets and targets with a better
				understanding of modern day economic geology deposit
				models.
	Geology	• Deposit type, geological setting and style of mineralisation.	•	Mesozonal to Epizonal Intrusion-Related Gold System (IRGS)
				located along the Gilmore Suture on the edge of a buried
				pluton.
	Drill hole In-	• A summary of all information material to the understanding of the explo-	•	No exploration results are being reported at this time.
	formation	ration 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 isjustified on the basis that the infor-

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	Criteria	JORC Code explanation	Commentary	Commentary
		mation is not Material and this exclusion does not detract from the un-
		derstanding of the report, the Competent Person should clearly explain
		why this is the case.
	Data aggrega-	• In reporting Exploration Results, weighting averaging techniques, maxi-	•	No exploration results are being reported at this time.
	tion methods	mum 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 re-
		sults and longer lengths of low grade results, the procedure used for
		such aggregation should be stated and some typical examples of such
		aggregations should be shown in detail.
		• The assumptions used for any reporting of metal equivalent values
		should be clearly stated.
	Relationship	• These relationships are particularly important in the reporting of Explora-	•	Approximate true width from 110 m to 180 m, approximate
	between min-	tion Results.		minimum depth 900 m.
	eralisation
	widths and	• If the geometry of the mineralisation with respect to the drill hole angle is
	intercept	known, its nature should be reported.
	lengths	• 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’).
	Diagrams	• Appropriate maps and sections (with scales) and tabulations of inter-	•	See attached report.
		cepts 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 re-	• Where comprehensive reporting of all Exploration Results is not practi-	•	No exploration results are being reported at this time.
	porting	cable, representative reporting of both low and high grades and/or
		widths should be practiced to avoid misleading reporting of Exploration
		Results.
	Other sub-	• Other exploration data, if meaningful and material, should be reported	•	No exploration results are being reported at this time.
	stantive explo-	including (but not limited to): geological observations; geophysical survey
	ration data	results; geochemical survey results; bulk samples – size and method of
		treatment; metallurgical test results; bulk density, groundwater, ge-
		otechnical and rock characteristics; potential deleterious or contaminat-

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	Criteria	JORC Code explanation	Commentary	Commentary
		ing substances.
	Further work	• The nature and scale of planned further work (eg tests for lateral exten-	•	Test for lateral and depth extensions, resource definition and
		sions or depth extensions or large-scale step-out drilling).		for further mineralised monzodioritic pipes via geochemical
		• Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	•	orientation, geophysical survey and further drilling. Resource definition drilling proposed aim would be to drillholes capable of providing adequate geotechnical, and metallurgical samples to aid in project development.
			•	Further drill testing of Hobbs-proximal IP and geological
				targets.

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

	Criteria	JORC Code explanation	Commentary	Commentary
	Database in-	• Measures taken to ensure that data has not been corrupted by, for ex-	•	Drill data was loaded into CAE Datamine Studio and Visor
	tegrity	ample, transcription or keying errors, between its initial collection and its		and reviewed for
		use for Mineral Resource estimation purposes.		⎯ The same number of records contained in the
		• Data validation procedures used.		Excel file was in the Datamine files, after the data was imported.
				⎯ All collar co-ordinates were within the permit
				area.
				⎯ Duplicate drillholes.
				⎯ Overlapping FROM and TO intervals values in
				the geology, oxidation state, assay, density, core size, and
				recovery tables.
				⎯ Downhole survey dip and bearing angles ap-
				pear reasonable.
				⎯ Duplicate records.
				⎯ Any anomalous assay, density, of sample re-
				covery values.
			•	To review alpha data field’s lists of unique values were made
				for:
				- Lithology.

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	Criteria	JORC Code explanation	Commentary	Commentary
				- Oxidation state.
				- Core size.
				- Drillhole type.
			•	A review vertical collar positions against topography
				identified some issues with the GPS surveyed heights (Z
				position) of the drillholes. This issue will be dealt with by
				using a DGPS or surveyor where required at the end of the
				next drill programme. At this time the collars where married
				to the topographic surface provided. Due to the nature and
				style of the mineralization the tonnage and grade estimation
				will not be effected but the vertical movement of the
				drillholes.
	Site visits	• Comment on any site visits undertaken by the Competent Person and the	•	The competent person has not visited the site. All relevant
		outcome of those visits.		data was available digitally, no data collection activities have
		• If no site visits have been undertaken indicate why this is the case.		been undertaken since the competent person joined the project. The competent person has met with the exploration
				manager on numerous occasions to discuss geology, data
				collection and collation. Site visits are proposed as part of
				project development.
	Geological	• Confidence in (or conversely, the uncertainty of ) the geological interpre-	•	All data available has been used to generate a geological
	interpretation	tation of the mineral deposit.		integration.
		• Nature of the data used and of any assumptions made.	•	It is understood the gold mineralization is confined to a quartz-monzonite intrusion.
		• The effect, if any, of alternative interpretations on Mineral Resource es-	•	Gold mineralisation occurs is associated with disseminated
		timation.		pyrite and arsenopyrite within pyrite-sericite-albite alteration
		• The use of geology in guiding and controlling Mineral Resource estima-		of the host.
		tion.	•	The mineralised stock is roughly circular in outcrop, 160m in
		• The factors affecting continuity both of grade and geology.		diameter with near-vertical walls and reasonably sharp lithological contacts. At depth the stock becomes more
				elliptical and at a depth of 500 m below surface is
				interpreted to be approximately 180 m by 160 m in
				diameter.
			•	The interpretation has been undertaken in plan on 20m
				spaced sections and where the digital strings have been
				snapped to the drillholes.
			•	The sectionalplan interpretation was wireframed to make a

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	Criteria	JORC Code explanation	Commentary	Commentary
				three-dimensional (3D) solid.
			•	Care was taken to not expand the intrusion beyond the know
				data and thus increase without support the total tonnage.
			•	There is no other geological interpretation. Additional detail
				or domaining of grade distribution within the intrusion may
				be able to be undertaken with the addition of more drill data.
			•	Data coverage though sparse at depth is reasonable and it is
				anticipated that additional drilling will support the current
				interpretation.
	Dimensions	• The extent and variability of the Mineral Resource expressed as length	•	The mineralised stock is roughly circular in outcrop, 160m in
		(along strike or otherwise), plan width, and depth below surface to the		diameter. At depth the stock becomes more elliptical and at
		upper and lower limits of the Mineral Resource.		a depth of 500 m below surface is interpreted to be
				approximately 180 m by 160 m in diameter. Current depth
				of mineralization is approximately 900 m.
	Estimation	• The nature and appropriateness of the estimation technique(s) applied	•	Gold was the only element estimated.
	and modelling	and key assumptions, including treatment of extreme grade values, do-	•	Samples were composited to 1m the mean sampling length
	techniques	maining, interpolation parameters and maximum distance of extrapola-		(historic samples average 1m assay intervals)
		tion from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.	•	Top-cap was applied to the composted samples, at 5 g/t, the 99.9thpercentile, this removed 8 intervals from3,498 composite samples.
		• The availability of check estimates, previous estimates and/or mine pro-	•	The 3D intrusion wireframe solid has been filled with cells.
		duction records and whether the Mineral Resource estimate takes ap-	•	An oxidation model has been made between an oxidation
		propriate account of such data.		surface generated from drillhole logging and the topographic
		• The assumptions made regarding recovery of by-products.		surface.
		• Estimation of deleterious elements or other non-grade variables of eco- nomic significance (eg sulphur for acid mine drainage characterisation).	• •	The block model is cut to the topographic surface. Drill spacing is from 20m x 20m to 200m x 200m.
		• In the case of block model interpolation, the block size in relation to the	•	The block model parent cells are 20m x 20m x 10m in X x Y x Z.
		average sample spacing and the search employed.	•	Sub celling to 4m x 4m x 2m.
		• Any assumptions behind modelling of selective mining units.	•	Semi –variograms where generated which showed
		• Any assumptions about correlation between variables.		anisotropy, with the variance not reaching the sill in the X and Y directions. In Z the variance crosses the sill indicating
		• Description of how thegeological interpretation was used to control the		possible layeringingrade. Lowgrade bands are visible in the

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	Criteria	JORC Code explanation	Commentary	Commentary
		resource estimates.		drillholes in three locations within the intrusion, these low
		• Discussion of basis for using or not using grade cutting or capping.		grade bands are not visible in core and will be further investigated.
		• The process of validation, the checking process used, the comparison of	•	A two-structure spherical model was fitted to the variogram.
		model data to drill hole data, and use of reconciliation data if available.	•	The search first search pass is 80m x 100m by 50m to
				encompass the drilling, this is the same ratio as the
				variogram ranges, with a rotation of -25,0,-85 in Z, Y and X
				directions.
			•	The second search pass is double and third search pass
				triple the original search.
			•	An octant search was used where 4 octants were required to
				be filled.
			•	The minimum samples 4 and maximum 18 with a minimum
				of 3 drillholes needing to be sourced for grade.
			•	Ordinary kriging was used with parent cell estimation.
			•	Discretisation of 4 x4 x 2 points.
			•	An inverse distance squared estimation was also
				undertaken, the global grades are within less then +/-3 of
				the ordinary kriged estimation.
			•	The volume of the intrusion solid was calculated and the
				volume of the block model was calculated, there is a
				difference of 1%.
			•	Swath plots (moving average plots) have been calculated in
				the vertical direction. These show reasonable correlation
				between the block model grades and the composite
				samples.
	Moisture	• Whether the tonnages are estimated on a dry basis or with natural mois-	•	The rock is tight no allowance has been made for moisture.
		ture, and the method of determination of the moisture content.
	Cut-off pa-	• The basis of the adopted cut-off grade(s) or quality parameters applied.	•	A hard geological boundary has been used for the grade
	rameters			estimation.
	Mining factors	• Assumptions made regarding possible mining methods, minimum mining	•	It has been assumed that the deposit is able to be mined by
	or assump-	dimensions and internal (or, if applicable, external) mining dilution. It is		open pit methods to a point at which a strip ratio exceeds
	tions	always necessary as part of the process of determining reasonable pro-		1:8. Without any supporting mine planning or geotechnical
		spects for eventual economic extraction to considerpotential mining		studyit has been estimated that this willplace the floor of an

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	Criteria	JORC Code explanation	Commentary	Commentary
		methods, but the assumptions made regarding mining methods and pa-		open pit at around 500m below surface. At this point it is
		rameters when estimating Mineral Resources may not always be rigor-		assumed that any further mining will be done from
		ous. Where this is the case, this should be reported with an explanation		underground using a bulk mining method at this time there
		of the basis of the mining assumptions made.		are no supporting studies for mining potential. The
				competent person has reviewed other deposits of similar
				size formed the opinion that a bulk underground mining
				method may be applicable.
			•	A conceptual mining study is planned for the short to
				medium term.
	Metallurgical	• The basis for assumptions or predictions regarding metallurgical ame-	•	There is some historic and more recent test work that
	factors or as-	nability. It is always necessary as part of the process of determining rea-		indicates that processing will be via a flotation and a BIOX
	sumptions	sonable prospects for eventual economic extraction to consider potential		route. Further mineralogical and processing test work is
		metallurgical methods, but the assumptions regarding metallurgical		required to take place.
		treatment processes and parameters made when reporting Mineral Re-
		sources may not always be rigorous. Where this is the case, this should
		be reported with an explanation of the basis of the metallurgical as-
		sumptions made.
	Environmen-	• Assumptions made regarding possible waste and process residue dis-	•	Mt Adrah is at the south-eastern end of a mining belt with
	tal factors or	posal options. It is always necessary as part of the process of determin-		historic mining nearby.
	assumptions	ing reasonable prospects for eventual economic extraction to consider	•	To the competent persons knowledge at this time there is no
		the potential environmental impacts of the mining and processing opera-		reason to anticipate any more than the normal difficulties
		tion. While at this stage the determination of potential environmental		associated with the development of a new project.
		impacts, particularly for a greenfields project, may not always be well ad-
		vanced, the status of early consideration of these potential environmen-
		tal impacts should be reported. Where these aspects have not been con-
		sidered this should be reported with an explanation of the environmental
		assumptions made.
	Bulk density	• Whether assumed or determined. If assumed, the basis for the assump-	•	97 bulk density measurements, using Archimedes method,
		tions. If determined, the method used, whether wet or dry, the frequency		have been made from recently drilled core. At this time is
		of the measurements, the nature, size and representativeness of the		appears that only 3 samples lie within the 20m deep oxide
		samples.		domain at surface. These three samples indicate the oxide
		• The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit.	•	domain has the same bulk density as the fresh rock 2.7 t/m3 In the competent persons opinion it is reasonable to assume that the partially oxidised and oxidised material at surface may have a lower bulk density. Further bulk density samples
		• Discuss assumptions for bulk density estimates used in the evaluation		in thepartiallyoxidised and oxidised material will be

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	Criteria	JORC Code explanation	Commentary
		process of the different materials.	collected as part of the next drilling programme.
			• A bulk density of 2.7 t/m3has been used for fresh rock and
			2.4 t/m3has been used for the partially oxidised and
			oxidised material within 20m of surface.
			• The rock is tight and few voids are intersected in the drilling,
			no allowance has been made for voids or vugs.
	Classification	• The basis for the classification of the Mineral Resources into varying con-	The Mineral Resource classification criteria used drill hole spac-
		fidence categories.	ing as a proxy for confidence in the geological and grade continu-
		• Whether appropriate account has been taken of all relevant factors (ie	ity.
		relative confidence in tonnage/grade estimations, reliability of input da-	Cut-off grades used are based on:
		ta, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).	• Proximity of mineralization to surface. • Potential mining methods.
		• Whether the result appropriately reflects the Competent Person’s view of the deposit.	• Assumed processing and recovery values based on preliminary test work.
			Surface is variable between 395 mRL and 420 mRL. 270 mRL is
			approximately 150 m below surface. Below this, it may no longer be
			possible based on the amount of waste which would be required to
			be moved to access the mineralization by open pit mining.
			Where the drilling is more densely spaced, from surface to a
			depth of 150 m, the Mineral Resource has been classified as an
			Indicated Mineral Resource for the:
			• Oxide domain, where the grade is greater 0.4 g/t gold.
			• Primary domain, where the grade is greater than 0.9 g/t
			gold.
			Both of these areas are geologically continuous zones of material
			which do include some material below the cut-off grade.
			In the primary domain where the drilling is more densely spaced, a
			shell has been generated to confine a zone of lower grade material
			at a 0.5 g/t gold cut-off. This has been classified as an Inferred
			Mineral Resource, due to the lower confidence in the continuity of
			the lower grade material.
			The cut-offgrades and depths selected for the classification to 150

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	Criteria	JORC Code explanation	Commentary
			m depth are based on:
			• Potential open pit mining.
			• Mineralization out cropping.
			• Gold price of A$1,300 per ounce.
			• Processing pf refractory mineralization using multiple
			processing methods.
			From 150 m depth to 700 m below surface (270 mRL to a depth
			of -280 mRL) a classification wireframe shell has been generat-
			ed around the close spaced drilling. Inside the shell is an Indi-
			cated Mineral Resource at a 0.9 g/t gold cut-off grade. Outside
			this shell is an Inferred Mineral Resource at a 0.9 g/t gold cut-off
			grade. Both of these are geologically continuous zones which
			contain some grade below the 0.9 g/t gold cut-off. This cut-off
			grade and the classification selected is based on:
			• Potential underground mining using a smaller scale bulk
			mining method.
			• There is reasonable grade continuity up to 1.2 g/t gold.
			• Grade continuity deteriorates rapidly at around 1.5 g/t
			gold.
			All material below 700 m depth has not been included in the
			Mineral Resource as there is insufficient data available to
			demonstrate with confidence that mineralization below 700 m
			depth has reasonable prospects for eventual economic extrac-
			tion.
	Audits or re-	• The results of any audits or reviews of Mineral Resource estimates.	• No audits have been completed at this time.
	views
	Discussion of	• Where appropriate a statement of the relative accuracy and confidence	• There are no historic production records.
	relative accu- racy/ confi-	level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the applica-	• The tonnage and grade estimation is a global estimate to be used for:
	dence	tion of statistical or geostatistical procedures to quantify the relative ac- curacy of the resource within stated confidence limits, or, if such an ap- proach is not deemed appropriate, a qualitative discussion of the factors	⎯ Assessing whether there is a potential mining project and the project economics.
		that could affect the relative accuracy and confidence of the estimate.	⎯ Assessing a potential mining method.

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ASX Release

	Criteria	JORC Code explanation	Commentary
		• The statement should specify whether it relates to global or local esti-	⎯ Targeting additional project development and
		mates, and, if local, state the relevant tonnages, which should be rele-	resource infill drilling.
		vant to technical and economic evaluation. Documentation should in- clude assumptions made and the procedures used.	⎯ The output of any potential mining assessment will be used as a basis to collect relevant technical infor-
		• These statements of relative accuracy and confidence of the estimate	mation going forward.
		should be compared with production data, where available.	The competent person anticipates that there is likely to be
			few difficulties in collecting data and additional under-
			standing for the geological context which is relatively
			straight forward.
			Further work is required to understand the grade distribu-
			tion within the intrusion. With increased data it may be
			possible to domain areas of high and low grade. Grade
			distribution at a local scale will increase in importance if
			selective mining methods are proposed.
			Further detailed work is required in the proposed pro-
			cessing method. Current testing indicates that processing
			with a reasonable recovery using known techniques is
			possible.
			Work needs to commence on the collection of geotech-
			nical information.