CRITICAL RESOURCES LIMITED — Capital/Financing Update 2015

Nov 16, 2015

ASX Release 17 November 2015

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Sovereign Gold Company Limited ACN 145 184 667

Frasers Find – Continuous 384m Long Gold-Bearing Structure

HIGHLIGHTS:

Level 2, 131 Macquarie Street Sydney NSW 2000 Tel: +61 2 9251 7177 Fax: +61 2 9251 7500

Contact

Simon Bird MD

email: corporate@sovereigngold.com.au

Frasers Find

• Second gold-bearing structure discovered in Cooperative drill hole

• Main narrow gold–bearing structure at least 384 metres long and extends 80 metres vertically, open in all directions

• Narrow lode mineralisation up to 5.17g/t Gold and 122 g/t Silver

• Significant evidence for gold mineralisation derived from deeper level intrusive source

Hudson McCrossins

Latest News

www.sovereigngold.com.au

Directors / Officers

John Dawkins AO Non-Executive Chairman

Simon Bird Managing Director

Michael Leu Executive Director

Charles Thomas Non-Executive Director

Rocco Tassone Non-Executive Director

ASX Symbol: SOC

Mount Adrah Mineral Resource estimate:

770,000 oz of gold, at various cut-off grades: Indicated: 440,000 oz

from 12.1 Mt at 1.1 g/t gold and Inferred: 330,000 oz from 8.4 Mt at 1.1 g/t gold[*]

• The information regarding the Mineral Resource is extracted from the report entitled “Hobbs Pipe Mineral Resource Update Additional Information” created 27[th] December 2013 and is available to view on sovereigngold.com.au/investors.htm. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and, in the case of estimates of Mineral Resources or Ore Reserves, that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

• Gold-bearing Martins Shaft-style mineralised dyke discovered

• Deep drilling program currently being planned

Sovereign Gold Company Ltd (Sovereign Gold or the Company) (ASX Code: SOC) is pleased to advise a total of 7 diamond drill holes have been completed at Frasers Find and 2 diamond drill holes at Hudson-McCrossins. The drilling program has been fully funded by SOC’s JV partner SUGEC and in part through the NSW Government Cooperative drilling program.

Frasers Find Mine

Drilling at Frasers Find was designed to test the depth and strike extensions of known high grade narrow gold-bearing structures, locate new structures and confirm the existence of feeder structures from a potential concealed causative pluton at depth. All drill holes intersected narrow gold-bearing mineralisation up to 5.17g/t Gold and 122 g/t Silver. Cooperative drill hole FF-ZK0007 intersected a second mineralised structure (0.9 metres wide downhole) that trends north-west and is oriented orientated obliquely to the main north-east trending structure hosting the historic Frasers Find Mine. Intersecting structures can generate dilational zones of wider intervals of mineralisation.

The previously drilled narrow, high grade gold-bearing structure and associated sub-parallel structures have been interpreted as a being part of larger mineralised fracture system developed above a potential ‘blind’ (concealed) pluton.

The current drilling at Frasers Find established the main goldbearing structure extends continuously for at least 384 metres along strike and extends at least 80 metres vertically, open in all directions. The best intersections are listed below (drill results, Tables 1-7).

• 5.17g/t gold (Au) over 0.32m from 51.25-51.57m downhole (Diamond drill hole FF-ZK0001, 100% core recovery)

• 2.58g/t gold (Au) and 122g/t silver (Ag) over 0.60m from 31.35-31.95m downhole (Diamond drill hole FF-ZK0003, 100% core recovery)

• 2.17g/t gold (Au) and 14.70g/t silver (Ag) over 0.60m from 57.95-58.55m downhole (Diamond drill hole FF-ZK0203, 100% core recovery)

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The Cooperative drill holes (FF-ZK007 and FF-ZK0802) identified the ‘smoking gun’ signs (evidence of rapid fractionation and fluid exsolution indicative of volatile saturation during crystallisation at mid to high crustal levels) of a deeper fractionated pluton that is presumed to be the be the source of the gold-bearing fluids deposited in the mineralised structures around Frasers Find. ‘Smoking gun’ features include narrow leucocratic monzogranite veining, sparse miarolitic cavities and tourmalinisation. There are textural indications that the monzogranite is probably intrusive into the Uralla Granodiorite. The occurrence of strongly fractionated, leucocratic monzogranite veining is interpreted to indicate that the gold mineralisation is genetically related to the emplacement, within the Uralla Granodiorite, of fractionated, leucocratic granitic rocks and subsequent hydrothermal fluid evolution. The gold mineralisation is typically associated with quartz, carbonate and sulphides comprising arsenopyrite and pyrite (both in places abundant) and lesser galena and sphalerite. Sericitic alteration and disseminated mineralisation occurs within the Uralla Granodiorite along the vein contacts. Multielement analyses also indicate a magmatic signature (anomalous bismuth Bi, tungsten W and tellurium Te) for the gold mineralisation. Cooperative drill hole FF-ZK007 intersected a new mineralised north-west trending structure that assayed 0.35/t gold over 0.90m from 56.75-57.65m downhole. This structure is oriented orientated obliquely to the main north-east trending structure hosting the historic Frasers Find Mine and indicates a larger gold-bearing fluid ‘plumbing’ system. This drilling intersected mineralisation with elevated silver (Ag), lead (Pb) and zinc (Zn) values thereby indicating that it most likely represents the distal, low temperature end of a gold-endowed fluid plumbing system. This high-level metallogenic association also indicates that the system is probably preserved at depth.

Drill holes have also intersected several subsidiary narrow vein structures with anomalous gold that are sub-parallel to the main Frasers Find gold-bearing structure. Arrays of sheeted veins are a diagnostic style of gold mineralization in Intrusion-Related Gold Systems. These high level (epizonal) structures can provide vectors to the main feeder conduits of potential small, concealed pluton(s).

Apart from the main north-east trending high grade narrow mineralised structure, a broader mineralised zone, as defined by narrow sulphide alteration veins with anomalous gold, was present in each hole. A previous diamond drill hole SGRDD033 encountered intermittent narrow sulphide-bearing alteration veins with anomalous gold over 27.35m downhole (from 11.75-39.1m). This is indicative of wider hydraulic fracturing from magmatic hydrothermal fluids.

Visible, free gold (up to 180 microns in length) has previously been observed in hand specimens and cores from Frasers Find. Screen Fire assays have established free gold is present and hence this can produce, within the same mineralised structure, a wide range of grades due to the nugget effect.

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Free gold grains in an arsenopyrite-rich zone (whitish, commonly prismatic), associated with medium grained quartz (dark grey, lower). Larger gold grain is 180 µm across. Plane polarised reflected light, field of view 1 mm across. Polished thin section (PTS) photographed microscopically in reflected light, from report: Ashley, P.M. 2012. Petrographic Report on Twenty-one Rock Samples from the Uralla Area, Northeastern New South Wales.

Previous drilling (ASX Releases: 18/12/2012 and 21/12/2012) at Frasers Find along the main northeast trending narrow gold-bearing structure has included:

• 19.1g/t gold (Au) and 141g/t silver (Ag) over 0.6m from 11.1-11.7m downhole (SGRDD023, 40% core recovery)

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• 5.45g/t Au over 0.25m including 10.0g/t Au and 316g/t Au over 0.13m from 27.0-27.13m downhole (SGRDD029, 100% core recovery)

• 25.1g/t Au and 5.6g/t Ag over 0.11m from 23.84-23.95m downhole (SGRDD033,100% core recovery)

The completed shallow drilling confirmed that gold mineralization occurs in sheeted veins and narrow high-grade (quartz-sulphide vein) structures that potentially represent the high level portion above a ‘blind’ gold-bearing pluton, based on the established Intrusion-Related Gold System (IRGS) geological model.

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Frasers Find: Diamond drill core from hole FF-ZK0001, portion of sample H3, screen fire assay returned 5.17g/t Gold over 0.32 metres from 51.25-51.37m (Table 1). Quartz-sulphide vein (arsenopyrite, pyrite and lesser galena and sphalerite) emplaced within the Uralla Granodiorite. The current drilling at Frasers Find established the main gold-bearing structure extends continuously for at least 384 metres along strike and extends at least 80 metres vertically, open in all directions (NQ core, 47.6mm diameter).

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Frasers Find: Diamond drill core from hole FF-ZK0001, portion of samples H3 and H2. Photo shows footwall contact of main quartz-sulphide vein (LHS, sample H3, 5.17g/t Gold over 0.32 metres) with altered (phyllic) Uralla Granodiorite (centre and RHS, sample H2, 0.56g/t Gold over 0.53 metres). The central portion consists of a fault zone with milled sulphides-quartz-granodiorite in contact with sericite-quartz sulphide altered granodiorite. The total downhole length of the main mineralised quartz-sulphide vein and juxtaposed gold-bearing alteration along the hanging and footwalls was 1.3 metres (NQ core, 47.6mm diameter).

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Frasers Find: Diamond drill core from hole FF-ZK0203, portion of sample H3, screen fire assay returned 2.17g/t Gold over 0.60 metres from 57.95-58.55m (Table 4). Quartz-sulphide vein (arsenopyrite, pyrite and lesser galena and sphalerite) emplaced within the Uralla Granodiorite (NQ core, 47.6mm diameter).

Hudson-McCrossins workings

Diamond drill hole HM-ZK0002 intersected a gold-bearing altered dyke (Table 9) over 3.9m downhole (from 34.60-38.50m) with up to 0.46g/t Au over 0.89 metres. The discovery of shallow, gold-bearing dykes is significant as this is the same style of mineralisation present at Martins Shaft, where gold mineralisation has been proven to extend over 200 metres vertically (limit of drilling). Deep drilling is planned under drill hole HM-ZK0002. Previous drilling of gold-bearing altered dykes at Martins Shaft has intersected some positive gold mineralisation (ASX release 16 March 2012) including 3.2 g/t Au over 22 metres downhole from 18-40 metres, including 10m @ 6.1 g/t Au and 2m @ 18.9 g/t Au; 3.5g/t Au over 18 metres downhole from 52-70 metres including 7m @ 7.5g/t Au and 1m @ 19.6g/t Au.

The mineralisation at the historic Hudson-McCrossins workings comprises sheeted veins and goldbearing altered felsic dykes. Diamond drill hole MH-ZK0001 intersection a 0.55m interval of altered metasediments with anomalous gold associated with sheeted veining and brecciation infilled with quartz-carbonate-sulphide. The gold-bearing mineralisation at Hudson-McCrossins is high level (epizonal textures) and indicates the bulk of the system still exists at depth and it is highly probable some of these structures will be conduits directly linked to a causative pluton. This style of mineralisation was predicted from the application of Sovereign Gold’s Intrusion-Related Gold System Model (IRGS). It occurs in a roof pendant (metasediments) within Uralla Granodiorite and potential exists for gold mineralisation to be preserved within a pluton’s carapace beneath these hornfelsed metasediments. This discovery further supports the potential for multiple Martins Shaft-type deposits, of similar and larger size, to be present within the large IRGS.

Conclusion:

Current exploration and research substantiates the identification and existence, within the Rocky RiverUralla Goldfield, of numerous distinguishing characteristics diagnostic of Reduced Intrusion-Related Gold Systems (RIRGS). The auriferous system of the Rocky River-Uralla Goldfield is emerging as one of the best defined examples of a Reduced Intrusion-Related Gold System found in Australia. Confirmation of a large system with of broad ranging RIRGS features combined with numerous undrilled targets supports potential for mineable gold endowment.

The fully funded drilling program will now focus on the Martins Shaft-style gold-bearing dyke at HudsonMcCrossins, as well as several gold-in-soil anomalies discovered by the 8.2 square kilometres, 4,800 sample, 1:10,000 geochemical survey (ASX: 20 July 2015).

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Hudson-McCrossins: Diamond drill core from hole HM-ZK0002, 34.834.9m downhole. Phyllic altered gold-bearing dyke that has undergone hydrothermal replacement by sericite, quartz, subordinate carbonate, disseminated pyrite and arsenopyrite. (NQ core, 47.6mm diameter)

Hudson-McCrossins: Diamond drill core from hole HM-ZK0002 35.0035.15m. Phyllic altered goldbearing dyke that has undergone hydrothermal replacement by sericite, quartz, subordinate carbonate, disseminated pyrite and arsenopyrite. (NQ core, 47.6mm diameter)

Hudson-McCrossins: Diamond drill core from hole HM-ZK0002, 37.40-37.50m downhole. Phyllic altered gold-bearing felsic dyke with disseminated sulphides (arsenopyrite and pyrite), quartz and carbonate flooded brecciation. (NQ core ,47.6mm diameter)

Hudson-McCrossins: Diamond drill core from hole HM-ZK0001, 63.163.25.mm downhole. Altered metasediments exhibiting sheeted veining and brecciation infilled with quartz-carbonate-sulphide (NQ core, 47.6mm diameter)

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Figure 1: Location of drill hole collars at Frasers Find (FF) and Hudson-McCrossins (HM)

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Figure 2: Location of drill hole collars at Frasers Find (FF)

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Figure 3: Location of Frasers Find and Hudson-McCrossins. Historic gold mines plotted on geology define clear structural controls and common links between the mineralisation, indicating they are parts of a larger system. Many mines plot on the northeast trending magnetic linear (“Old Bonanza Dyke”). A ~northsouth trending series of mines has developed immediately west of the contacts of small elongate plutons (Khatoun Tonalite and Manuka Farm Porphyritic Microtonalite) with the Sandon Beds. Other mines (e.g. Hudson-McCrossins) are situated within the roof pendants of the Wandsworth Volcanic Group and Sandon Beds.

For further information please contact:

Simon Bird, Managing Director or Henry Kinstlinger, Investor Relations

Sovereign Gold Company Limited, Telephone: +61 2 9251 7177

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Tables 1 -9, Drill hole data above 0.10g/t Au

FF-ZK0001 Frasers Find 61.85m E.O.H.	FF-ZK0001 Frasers Find 61.85m E.O.H.			Au SCR22AA	Au AA26	ME MS61
Sample	From (m)	To (m)	Interval (m)	Au	Au	Ag
				ppm	ppm	ppm
FF-ZK0001-H1	50.35	50.80	0.45	0.35	0.34	0.84
FF-ZK0001-H2	50.80 51.57	51.25 51.65	0.53	0.56	0.57	0.43
FF-ZK0001-H3	51.25	51.57	0.32	5.17	2.62	2.58

Table 1: Diamond Drill Hole FF-ZK0001 (FF-ZK0001-H2, Composite of 2 intervals), ALS Certificate of Analysis BR14153369; TV14161375

FF-ZK0003 Frasers Find 91.35m E.O.H.	FF-ZK0003 Frasers Find 91.35m E.O.H.			Au SCR22AA	Au AA26	ME MS61
Sample	From (m)	To (m)	Interval (m)	Au	Au	Ag
				ppm	ppm	ppm
FF-ZK0003-H2	76.00	76.75	0.75	0.22	0.25	0.4
FF-ZK0003-H4	78.55	78.85	0.30	0.63	0.67	0.1

Table 2: Diamond Drill Hole FF-ZK0003, ALS Certificate of Analysis BR14153369; TV14161375

FF-ZK0201 Frasers Find 46.45m E.O.H.	FF-ZK0201 Frasers Find 46.45m E.O.H.	FF-ZK0201 Frasers Find 46.45m E.O.H.		Au SCR22AA	Au AA26	ME MS61	Ag OG62	ME MS61	ME MS61	ME MS61
Sample	From (m)	To (m)	Interval (m)	Au	Au	Ag	Ag	Pb	Zn	As
				ppm	ppm	ppm	ppm	ppm	ppm	ppm
FF-ZK0201- H2	31.35	31.95	0.60	2.50	2.58	>100	122	9450	6310	90300

Table 3: Diamond Drill Hole FF-ZK0201, ALS Certificate of Analysis BR14153369; TV14161375

FF-ZK0203 Frasers Find 80.95m E.O.H.	FF-ZK0203 Frasers Find 80.95m E.O.H.			Au SCR22AA	Au AA26D	ME MS61
Sample	From (m)	To (m)	Interval (m)	Au	Au	Ag
				ppm	ppm	ppm
FF-ZK0203-H1	52.90 53.85	53.65 54.25	1.15	0.17	0.21	0.21

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FF-ZK0203-H2	53.65	53.85	0.2	0.37	0.46	0.21
FF-ZK0203-H3	57.95	58.55	0.6	2.17	1.95	14.70

Table 4: Diamond Drill Hole FF-ZK0203 (FF-ZK0203-H1, Composite of 2 intervals), ALS Certificate of Analysis BR14159456; TV14171472

FF-ZK0205 Frasers Find 94.2m E.O.H.	FF-ZK0205 Frasers Find 94.2m E.O.H.			Au SCR22AA	Au AA26	ME MS61
Sample	From (m)	To (m)	Interval (m)	Au	Au	Ag
				ppm	ppm	ppm
FF-ZK0205-H4	86.9	87.5	0.6	1.61	1.47	1.75

Table 5: Diamond Drill Hole FF-ZK0205, ALS Certificate of Analysis BR14176830; TV141718363

FF-ZK0802 Frasers Find 115.9m E.O.H.				Au AA25	ME MS61
Sample	From (m)	To (m)	Interval (m)	Au	Ag
				ppm	ppm
FF-ZK0802-H2	60.35	60.70	0.35	0.14	0.28
FF-ZK0802-H5	94.00	94.80	0.80	0.30	2.97

Table 6: Diamond Drill Hole FF-ZK0802, ALS Certificate of Analysis BR15152598

FF-ZK007 Frasers Find 276.0m E.O.H.				Au AA25	ME MS61
Sample	From (m)	To (m)	Interval (m)	Au	Ag
				ppm	ppm
FF-ZK007-H1	56.75	57.65	0.90	0.35	1.32
FF-ZK007-H2	75.00	75.55	0.55	0.10	0.05

Table 7: Diamond Drill Hole FF-ZK007, ALS Certificate of Analysis BR15152598

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HM-ZK0001 Hudsons McCrossins 95.1m E.O.H.	HM-ZK0001 Hudsons McCrossins 95.1m E.O.H.			Au AA25	ME MS61
Sample	From (m)	To (m)	Interval (m)	Au	Ag
				ppm	ppm
HM-ZK0001H6	63.05	63.60	0.55	0.12	0.79

Table 8: Diamond Drill Hole HM-ZK0001, ALS Certificate of Analysis BR15124411

HM-ZK0002 Hudsons McCrossins 68.4m E.O.H.	HM-ZK0002 Hudsons McCrossins 68.4m E.O.H.			Au AA25	ME MS61
Sample	From (m)	To (m)	Interval (m)	Au	Ag
				ppm	ppm
HM-ZK0002-H3	34.60	35.55	0.95	0.13	0.23
HM-ZK0002-H4	35.55	36.41	0.86	0.36	1.37
HM-ZK0002-H5	36.41	37.30	0.89	0.46	1.49
HM-ZK0002-H6	37.31	38.50	1.19	0.16	0.34

Table 9: Diamond Drill Hole HM-ZK0002, ALS Certificate of Analysis BR15124411

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Drill hole parameters; Frasers Find (FF) and Hudson-McCrossins (HM)

Hole Number	mE (MGA94, Zone 56)	mN (MGA94, Zone 56)	Elevation (m ASL)	Collar Dip (degree)	Collar Azimuth (degree)	Downhole Length (m)
FF-ZK0001	349690	6612129	972.0	75º	326º	61.85
FF-ZK0003	349701	6612120	970.0	75º	326º	91.35
FF-ZK0201	349610.46	6612106.56	962.1	75º	326º	46.65
FF-ZK0203	349619.96	6612088.97	965.1	75º	326º	80.95
FF-ZK0205	349626.24	6612072.12	965.9	80º	326º	94.2
FF-ZK0802	349427.67	6611929.14	948.4	60º	320º	115.9
FF-ZK007	349425.67	6611925.96	949.1	60º	210º	276.0
HM-ZK0001	349641.62	6610646.23	993.3	75º	293º	95.1
HM-ZK0002	345896.12	6611569.99|989.0	75º	116.5º	68.4

Qualifying Statements

The information in the release that relates to Exploration Information is based on information compiled by Michael Leu who is a member of The Australasian Institute of Mining and Metallurgy and the Australian Institute of Geoscientists.

Mr Leu is a qualified geologist and is a director of Sovereign Gold Company Limited.

The information relating to Exploration Information released prior to July 2013 as prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

The information relating to Exploration Information released subsequent to July 2013 was prepared under the JORC Code 2012.

Mr Leu has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity, which he is undertaking to qualify as a Competent Person as defined in the 2004 and 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Resources. Mr Leu consents to the inclusion in this announcement of the Exploration Information in the form and context in which it appears.

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Table 1

The following table provides explanations required under JORC 2012

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation Commentary
Sampling techniques	1. Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling. 1. ½ Diamond Core, NQ or HQ
	2. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. 3. Consistent cut along orientation line on core
	4. Aspects of the determination of mineralisation that are Material to the Public Report. • Sawn half NQ or HQ core with sample lengths ranging from 0.10 metres to 1.30 metres (majority 0.30-1.00m) was sent to ALS laboratories. • Fire Assay Gold. Gold – Method Au-AA25, where Au is predominantly held in sulphides within disseminated sericite-sulphide alteration. Multielement Analysis – 4 acid digestion for 48 element ICP-AES and ICP-MS analysis - Method ME-MS61. Analyses by Australian Laboratory Services Pty. Ltd. (ALS). Australian Laboratory Services Pty. Ltd. (ALS).

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Criteria	JORC Code explanation Commentary
	5. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘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 (e.g. submarine nodules) may warrant disclosure of detailed information. 1. In addition to method Au-AA25, many samples were analysed by Screen Fire Assay Gold Method SCR22AA where some gold being tested for is potentially free and coarse. Assays Tables in Body of Report lists analytical methods.
Drilling techniques Drill sample recovery	2. Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.). 3. Diamond, oriented NQ and HQ core 4. Method of recording and assessing core and chip sample recoveries and results assessed. 5. Lithological and geotechnical logging, photography
	6. Measures taken to maximise sample recovery and ensure representative nature of the samples. 7. NQ and HQ core with overall recovery of >90%
	8. 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. 9. NQ and HQ core with overall recovery of >90% – no relationship has been observed between core recovery and grade with the data currently available
Logging	10. Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. 11. Yes core has been logged both geologically and geotechnically to a level of detail to support the studies herein.
	12. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography. 13. NQ and HQ core geologically and geotechnically logged and photographed
	14. The total length and percentage of the relevant intersections logged. 15. 100%

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Criteria	JORC Code explanation Commentary
Sub-sampling techniques and sample preparation	16. If core, whether cut or sawn and whether quarter, half or all core taken. 17. NQ and HQ core cut in half with a core saw along consistent orientation line
	18. If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. 19. Not applicable to this report
	20. For all sample types, the nature, quality and appropriateness of the sample preparation technique. 21. Half NQ or HQ core cut with a core saw. Consistent cut along orientation line on core. High quality and appropriateness of sample preparation technique.
	22. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. 23. Half NQ and HQ core cut with a core saw. Consistent cut along orientation line on core. Consistent selection of one half, recorded by both drill logs and photographs
	24. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. 25. Appropriate measures taken – half core remaining if further analysis warranted
	26. Whether sample sizes are appropriate to the grain size of the material being sampled. 27. Yes, sample sizes are appropriate to the grain size of the material being sampled
Quality of assay data and laboratory tests	28. The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. 29. Analyses by Australian Laboratory Services Pty. Ltd. (ALS), Techniques considered total for the type of mineralization sampled. 30. Fire Assay Gold. Gold – Method Au-AA25, where Au is predominantly held in sulphides within disseminated sericite- sulphide alteration. Multielement Analysis – 4 acid digestion for 48 element ICP-AES and ICP-MS analysis - Method ME-MS61. Analyses by Australian Laboratory Services Pty. Ltd. (ALS). Australian Laboratory Services Pty. Ltd. (ALS). Screen Fire Assay Gold Method SCR22AA where some gold being tested for is potentially free and coarse. Assays Tables in Body of Report lists analytical methods.

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Criteria	JORC Code explanation Commentary
	31. For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. 32. Not relevant at this stage of the program
	33. Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. 34. Some minor check reassays, consisting of a further 30g charge from prepared sample pulp, by Fire Assay (Au_AA25) or larger sample masses (up to 1kg) for Screen Fire Assays (Gold Method SCR22AA) if warranted. Internal standards and blanks not used at this early stage.
Verification of sampling and assaying	35. The verification of significant intersections by either independent or alternative company personnel. 36. Not relevant at this stage of the program
	37. The use of twinned holes. 38. Not relevant at this stage of the program
	39. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. 40. NQ and HQ core measured, photographed and logged by geologists. Digitally recorded plus back-up records.
	41. Discuss any adjustment to assay data. 42. There is no adjustment to assay data
Location of data points	43. Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. 44. Drill collars surveyed using high precision Real Time Kinetic (RTK) GPS utilising the Continuously Operating Reference Station (CORS) signal network. GPS that has an accuracy 5cm for location. Digital survey tool will be used for down-hole surveying.
	45. Specification of the grid system used. 46. MGA94 (Zone 56)

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Criteria	JORC Code explanation Commentary
	47. Quality and adequacy of topographic control. 48. A digital topographic file is available in .dxf format. Drill collars recorded with CORS GPS that has an elevation accuracy of 20cm. 49. Surveyed using high precision Real Time Kinetic (RTK) GPS utilising the Continuously Operating Reference Station (CORS) signal network.
Data spacing and distribution	50. Data spacing for reporting of Exploration Results. 51. Not relevant to current drilling.
	52. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. 53. Not relevant to current drilling.
	54. Whether sample compositing has been applied. 55. Only two samples composited for analytical testing and identified in Tables of assay results. Sawn half NQ and HQ core with sample lengths ranging from 0.3 metres to 1.70 metres (majority 0.50-1.00m) was sent to ALS laboratories. No results reported as weighted averages calculated over various combined sample lengths.
Orientation of data in relation to geological structure	56. Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. 57. Drill holes are designed to intersect mineralised structure normal to strike and are recorded as down-hole lengths.
	58. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. 59. Drill holes are designed to intersect mineralised structure normal to strike and are recorded as down-hole lengths. The drill hole azimuth and angle relative to the main mineralised structure is not considered to have introduced sampling bias.

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Criteria	JORC Code explanation	JORC Code explanation		Commentary
Sample security	60.	The measures taken to ensure sample security.	61.	Current core samples are securely stored at a private facility
				before express overnight freight to Australian Laboratory
				Services Pty. Ltd. (ALS) Brisbane. Sample movements and
				security documented by ALS Chain of Custody.
Audits or reviews	62.	The results of any audits or reviews of sampling techniques	63.	Not undertaken at this stage
		and data.

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Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation Commentary
Mineral tenement and land tenure status	64. 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. 65. EL 6483 is held by Biacil Pty. Ltd., a wholly owned subsidiary of Sovereign Gold Company Limited. It is currently under Joint Venture with SUGEC Mining Limited who are earning an interest in the Licence.
	66. 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. 67. Tenure is current and in good standing
Exploration done by other parties	68. Acknowledgment and appraisal of exploration by other parties. 69. Frasers Find: The mineralised structure currently being drilled was discovered in the 1890s by Andrew Fraser. Hudson-McCrossins: Both the Hudson and McCrossin families were early settlers in the Uralla district. They funded gold exploration. 70. No previous drilling by other parties has been undertaken in this portion of EL 6483.
Geology	71. Deposit type, geological setting and style of mineralisation. 72. Intrusion-Related Gold System. Epizonal shear-fault structure hosts mineralisation. Auriferous felsic dykes and sheeted veins.

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Criteria	JORC Code explanation Commentary
Drill hole Information	73. `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: 1. easting and northing of the drill hole collar 2. elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar 3. dip and azimuth of the hole 4. down hole length and interception depth 5. hole length. Frasers Find (FF) and Hudson-McCrossins (HM)- drill hole parameters 74. All other relevant drill hole information above 0.10g/t Au included in tables in body of report above.
	75. `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. 76. Not relevant

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Criteria	JORC Code explanation Commentary
Data aggregation methods	77. 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. 78. Assay results for individual sample lengths provided in tables for each drill hole. No results reported as weighted averages over various lengths. 79. Uncut
	80. `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. 81. Only two samples from aggregate of core and these are identified in tables for all diamond drill holes. Core sample lengths were determined by geologists based on alteration styles and structures
	82. The assumptions used for any reporting of metal equivalent values should be clearly stated. 83. None used
Relationship between mineralisation widths and intercept lengths	84. These relationships are particularly important in the reporting of Exploration Results. 85. True width not currently known. All lengths are down-hole lengths and not true width.
	86. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. 1. Frasers Find: Main narrow gold–bearing structure strike north-east, is at least 384 metres long and extends 80 metres vertically, open in all directions. Down hole width range provided in tables of drill results. 2.
	3. 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’). 4. Down-hole length reported, true width not known

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Criteria	JORC Code explanation Commentary
Diagrams	5. 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. 6. Drill hole collar location map prepared.
Balanced reporting	7. Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. 8. Representative reporting of all relevant grades is provided in tables to avoid misleading reporting of Exploration Results.
Other substantive exploration data	9. Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. 10. Overview of exploration data leading to selection of drill targets provided.
Further work	• The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling). • Test for lateral and depth extensions, resource delineation of the mineralised structure.
	• Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. • Diagram are included in this report of the geometry of structures subject to further drilling.