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CRITICAL RESOURCES LIMITED Capital/Financing Update 2017

Oct 2, 2017

64708_rns_2017-10-02_76200e24-668c-4168-a4f5-b46ff21e1ec9.pdf

Capital/Financing Update

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3 October 2017

ASX Announcements Office 152–158 St Georges Terrace Perth WA 6000 Australia

Technical Due Diligence Confirms Significant Occurrences of Spodumene and Other known Lithium Bearing Minerals in Pegmatite Exposures

Force to Proceed with DRC Lithium Project Acquisition

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Figure 1: Pegmatite hosting spodumene mineralisation at the Kitotolo Lithium Project

  • Independent technical due diligence has identified significant occurrences of visible spodumene and other lithium bearing minerals in pegmatite exposures across widespread areas within the Kitotolo Lithium Project

  • Kitotolo Lithium Project determined to be in the same geological setting as AVZ Minerals Limited’s (ASX:AVZ) ‘world-class’ Manono Project

  • Large artisanal cassiterite workings within the Kitotolo Lithium Project license area inspected and confirmed as containing abundant pegmatite rock types and mineralisation, including spodumene, lepidolite and other associated micas

  • Pegmatites on the Kitotolo Lithium Project observed as being close to surface, and underlying a regional laterite cover of up to 6 metres thickness.

  • Numerous pegmatite inclusions on the Kitotolo Lithium Project mapped in lateritic cover over several hundred metres from the artisanal workings

Force Commodities Ltd | 137 Lake Street, Northbridge, WA, 6003 | PO Box 1811 West Perth WA 6872 | P: +61 8 9328 9368 F: +61 8 6323 0418 | web:forcecommodities.com.au | Email: [email protected] | ABN 12 145 184 667 | ASX:4CE

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  • Potential for significant additional discoveries and further in situ hard rock pegmatites hosting spodumene and related lithium mineralisation considered extremely high by the Company’s independent technical consultant

  • Geological and structural mapping, sampling and trenching work undertaken at the Kitotolo Lithium Project and geochemistry and channel sampling program completed with samples submitted for multi-element analysis with results expected later this month

  • At the Kiambi Lithium Project numerous artisanal pits on the southern license boundary identified as containing abundant pegmatite rock types and mineralisation, including lepidolite and other associated micas

  • Further exploration warranted at the Kiambi Lithium Project to test north east strike extensions of mineralised pegmatites identified south of the license boundary

  • Force to now proceed with the proposed DRC Lithium Project acquisitions subject to receipt of shareholder approval at the General Meeting on 10 October 2017, receipt of regulatory approvals and completion of formal joint venture documentation

Force Commodities Ltd ( Force or the Company ) (ASX Code: 4CE) is pleased to confirm that it’s consultants have successfully completed the technical due diligence review of the Kitotolo Lithium Project and Kiambi Lithium Project located in in Tanganyika Province in the south east of the Democratic Republic of Congo ( DRC ) ( DRC Lithium Projects ).

The Board has received and reviewed the Independent Technical Due Diligence Report, completed by Mr James Sullivan after a 4-week on site due diligence review, and based on its findings and the strength of the conclusions and recommendations made, the Board has elected to now proceed with the acquisition of the DRC Lithium Projects, subject to shareholder and regulatory approvals and execution of formal joint venture documentation.

1. Independent Technical Due Diligence Report

In August 2017, the Company appointed Mr James Sullivan, a professional geologist with 20 years’ experience, as its Consulting Geologist to complete its technical due diligence review of its proposed acquisition of the Kitotolo and Kiambi Lithium Projects.

Prior to his appointment by the Company, Mr Sullivan was engaged as Project Due Diligence Supervisor for ASX listed AVZ Minerals, where he was involved with the full range of mineral due diligence assessments of the historical Manono-Kitotolo Pegmatite and supervising and exploration management of the Manono Lithium Project which is located approx. 30km north east of the Kitotolo Lithium Project and 50km west of the Kiambi Lithium Project. As part of this role, Mr Sullivan completed detailed deposit scale geological and structural mapping, database management and compilations, reviews and incorporation of historical geological data and the management and coordination of all on-ground exploration due diligence activities.

Technical due diligence activities commenced on site at the Kitotolo Lithium Project on 18 August 2017 and continued for a 4-week period and included additional work on the Kiambi Lithium Project.

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The on-the-ground due diligence activities were managed by Mr Sullivan with the support of two local geologists including one from DRC state-owned mining and exploration company La Congolaise d’Exploitation Miniere ( Cominiere ), the Company’s proposed joint venture partner on the Kitotolo Lithium Project.

During the technical due diligence period, work was also extended and completed on two further areas of interest:

  • a) Mining License PE 13247, which is currently the subject of an application by Cominiere to be transformed from an Exploration License (PR - Permit de Reserche) into a 30 year Mining License (PE- Permit d’Exploitation) and which lies within the Kitotolo Lithium Project Exploration License PR 12453 area; and

  • b) A further Mining License, located within 5km of the Kitotolo Lithium Project, which is considered by the Company and its technical consultants to be highly prospective for spodumene bearing pegmatites.

On 28 September 2017, the Company announced that it had reached agreement with Cominiere to include PE 13247 into the proposed Kitotolo Lithium Project acquisition and was in ongoing discussions with the license holders of the other Mining License.

The technical due diligence work completed on behalf of the Company included a thorough review of all available historical data, geological and structural mapping, trenching and geochemical sampling to identify spodumene.

During the period of the technical due diligence review a total of 40 rock chip and channel samples were taken from pegmatitic exposures identified, and despatched to ALS in Lubumbashi and Johannesburg for preparation and for multi-element analytical determination to confirm spodumene mineralization. The results of these analyses are expected later this month.

2. Key Findings - Kitotolo Lithium Project

The Kitotolo Lithium Project is approximately 30km SW and along strike of the main historical Manono-Kitotolo (Roche Dure) Pegmatite, which is considered a ‘world-class’ lithium orebody and is currently the subject of exploration by ASX Listed AVZ Minerals Limited.

The Kitotolo Lithium Project area, comprising PR 12453 and PE 13247 extends over an area of approx. 400km[2] . It has not been the subject of any modern exploration. What local geology that is known, is largely as a consequence of geologically mapping of artisanal workings and pits targeting cassiterite and columbite-tantalite as well as surface outcrops.

The independent technical due diligence work completed determined the Kitotolo Lithium Project to be in the same geological setting as AVZ Minerals ‘world-class’ Manono Project.

Significant occurrences of visible spodumene and other lithium bearing minerals in pegmatite exposures were also identified across widespread areas within the Kitotolo Lithium Project.

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Figure 2, 3 and 4: Pegmatite hosting spodumene mineralisation at the Kitotolo Lithium Project

Pegmatites on the Kitotolo Lithium Project were generally observed as being close to surface, and underlying a regional laterite cover of up to 6 metres thickness.

The pegmatite exposures are dominated by quartz-albite-muscovite, with columbite and spodumene-zinewaldite at the macro-scale. In places the laterite is exposed in small windows above the sandy soil cover. Lateritic outcrops were identified as often having pegmatitic material as large clasts within the concretions and conceptually this is considered to suggest further in-situ pegmatitic material below or in close proximity to these laterite exposures.

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Large artisanal workings within the Kitotolo Lithium Project license area were inspected and confirmed as containing abundant pegmatite rock types and mineralisation, including spodumene, lepidolite and other associated micas.

These artisanal workings, typically alluvial in nature have been focused on cassiterite and columbitetantalite mining.

In the north of the Kitotolo Lithium Project area there is a large artisanal pit measuring approximately 120m long by 50m wide, where visible spodumene, lepidolite and other associated micas were identified.

Further numerous artisanal workings were identified around the perimeter of the pit.

Figure 5: Historical artisanal mining activity

In addition, numerous pegmatite inclusions were mapped in the lateritic cover several hundred metres from the large pit’s workings suggesting that the pegmatite lies below the lateritic cover or in close proximity and extends over a significant range.

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Figure 6 and 7: Spodumene mineralisation at the Kitotolo Lithium Project

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Figure 8 and 9: Pegmatitic clasts within regional lateritic cover and further artisanal workings and test pits

Geological and structural mapping, sampling and trenching work was undertaken at the Kitotolo Lithium Project.

A geochemistry sampling program consisting of 20 in-situ channel and rock chip samples were also collected from one of the main artisanal pit areas.

In addition, a channel sample of 6m was sampled from the surface down through weathered insitu pegmatite, providing a shallow representative portion of the pegmatite.

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Figure 10 and 11: Channel sampling at the Kitotolo Lithium Project (assays pending)

Initial geological and structural mapping and visual inspection of samples taken by the Company’s technical consultants has highlighted potential economic mineralisation on the Kitotolo Lithium Project.

Furthermore, the potential for significant additional discoveries and further in situ hard rock pegmatites hosting spodumene and related lithium mineralisation is considered extremely high by the Company’s independent technical consultant

The Company believes that it is clear from the preliminary due diligence and exploration work completed by its technical consultants and the summary conclusions and recommendations in the Independent Technical Due Diligence Report, that the Kitotolo Lithium Project has the potential to be a significant asset for the Company.

3. Key Findings - Kiambi Lithium Project

The Kiambi Lithium Project is located approximately 90km east of Manono and the main historical Manono-Kitotolo (Roche Dure) Pegmatite.

The Kiambi Lithium Project area, comprises PE 8251 and extends over an area of approx. 28km[2] . Similar to the Kitotolo Lithium Project it has not been the subject of any modern exploration.

On and just south of the Kiambi Lithium Project boundary there are numerous artisanal pits focussed on cassiterite and columbite-tantalite. These were observed as containing abundant pegmatite rock types and mineralisation, including lepidolite and other associated micas.

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The depth of cover at the Kiambi Lithium Project is estimated at being up to 6 metres, with regional sand cover and lateritic outcrops of up to 3 metres.

The laterite was seen as being exposed in small windows above the sandy soil cover. Mineralised pegmatites were identified and observed south of the boundary license and are considered to potentially extend north and below the lateritic cover.

Further exploration is considered warranted at the Kiambi Lithium Project to test the north east strike extensions of these mineralised pegmatites identified south of the license boundary.

Figure 12: Pegmatitic exposures on the southern boundary of the Kiambi Lithium Project

3. Force to proceed with acquisition

The Board has completed its review of the Independent Technical Due Diligence Report prepared by Mr James Sullivan.

The Board is pleased to be able to confirm to shareholders that the independent technical due diligence has identified significant occurrences of visible spodumene and other lithium bearing minerals in pegmatite exposures across widespread areas within the Kitotolo Lithium Project. It has further determined the Kitotolo Lithium Project to be in the same geological setting as AVZ Minerals ‘world-class’ Manono Project

The Kitotolo Lithium Project license area has been confirmed as containing abundant pegmatite rock types and mineralisation, including spodumene, lepidolite and other associated micas. Pegmatites on the Kitotolo Lithium Project have been observed as being close to surface, and mapped in lateritic cover over several hundred metres from the existing artisanal workings.

The technical due diligence has further confirmed the “extremely high” potential for significant additional discoveries at the Kitotolo Lithium Project and further in situ hard rock pegmatites hosting spodumene and related lithium mineralisation.

At the Kiambi Lithium Project, pegmatite rock types and mineralisation, including lepidolite and other associated micas have been identified and further exploration is warranted to test the north east strike extensions of mineralised pegmatites identified south of the license boundary.

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The Company is pleased to advise that based on the due diligence work completed and the strength of the conclusions and recommendations made in the Independent Technical Due Diligence Report, the Board has committed to now proceed with the acquisition of the DRC Lithium Projects subject to conditions noted below.

Upon completion of the acquisition, the Company is proposing to focus its exploration activities primarily on the Kitotolo Lithium Project in the immediate term where it and its Independent Technical Consultants believe the greatest potential exists for the delineation of a significant economic lithium deposit.

The Company’s decision to proceed with the acquisition remains subject to receipt of shareholder approval at the Company’s General Meeting on 10 October 2017. It will also be subject to execution of formal joint venture documentation with the DRC licence holders, the transfer of the licenses from the existing licence holders to new DRC joint venture companies and all necessary in-country approvals.

Further updates on the Company’s progress in finalising joint venture documentation and the results of the geochemistry and channel samples submitted to ALS for multi-element analysis will be provided to shareholders later this month.

END

Contact:

Michael Fry

Company Secretary Force Commodities Limited Tel: +61 (0) 8 9328 9368

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Competent Person Statement

The information in this release that relates to sampling techniques and data, exploration results, geological interpretation and Exploration Targets, Mineral Resources or Ore Reserves has been compiled by Mr James Sullivan is a member of the Australian Institute of Geoscientists. Mr Sullivan is engaged by Force Commodities as a consultant geologist.

Mr Sullivan has sufficient experience of relevance to the styles of mineralisation and the types of deposits under consideration, and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Sullivan consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

Forward looking statements

Information included in this release constitutes forward-looking statements. Often, but not always, forward looking statements can generally be identified by the use of forward looking words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “continue”, and “guidance”, or other similar words and may include, without limitation, statements regarding plans, strategies and objectives of management, anticipated production or construction commencement dates and expected costs or production outputs.

Forward looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, performance and achievements to differ materially from any future results, performance or achievements. Relevant factors may include, but are not limited to, changes in commodity prices, foreign exchange fluctuations and general economic conditions, increased costs and demand for production inputs, the speculative nature of exploration and project development, including the risks of obtaining necessary licences and permits and diminishing quantities or grades of reserves, political and social risks, changes to the regulatory framework within which the company operates or may in the future operate, environmental conditions including extreme weather conditions, recruitment and retention of personnel, industrial relations issues and litigation.

Forward looking statements are based on the Company and its management’s good faith assumptions relating to the financial, market, regulatory and other relevant environments that will exist and affect the Company’s business and operations in the future. The Company does not give any assurance that the assumptions on which forward looking statements are based will prove to be correct, or that the Company’s business or operations will not be affected in any material manner by these or other factors not foreseen or foreseeable by the Company or management or beyond the Company’s control.

Although the Company attempts and has attempted to identify factors that would cause actual actions, events or results to differ materially from those disclosed in forward looking statements, there may be other factors that could cause actual results, performance, achievements or events not to be as anticipated, estimated or intended, and many events are beyond the reasonable control of the Company. Accordingly, readers are cautioned not to place undue reliance on forward looking statements. Forward looking statements in these materials speak only at the date of issue. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, in providing this information the company does not undertake any obligation to publicly update or revise any of the forward looking statements or to advise of any change in events, conditions or circumstances on which any such statement is based.

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APPENDIX 1:

Tenement Easting Northing GRID Locality Sample no Sample Type Lithology Assay Result
PR12453 508996 9164072 WGS84_35S KatambaPit A2301 rockchip Spodumene Pending
PR12453 508964 9164187 WGS84_35S KatambaPit A2302 rockchip Mica rich Peg Pending
PR12453 508953 9164174 WGS84_35S Katamba Pit A2303 rockchip Mica rich Peg Pending
PR12453 508957 9164183 WGS84_35S KatambaPit A2304 rockchip Pegmatite Pending
PR12453 509413 9164291 WGS84_35S Katamba Pit A2305 rockchip Mica schist Pending
PR12453 509466 9164664 WGS84_35S Katamba Pit A2306 rockchip Aplitic? Pending
PR12453 509466 9164664 WGS84_35S KatambaPit A2307 rockchip Greisen/
Lepidolite
Pending
PR12453 509466 9164664 WGS84_35S KatambaPit A2308 rockchip Micas/
Zinnwaldite
Pending
PR12453 509125 9164421 WGS84_35S Katamba Pit A2309 rockchip Greisen Pending
PR12453 511847 9165926 WGS84_35S Katamba Pit A2310 rockchip Pegmatite Pending
PR12453 508979 9164147 WGS84_35S Katamba Pit A2311 Channel Pegmatite Pending
PR12453 508979 9164147 WGS84_35S KatambaPit A2312 Channel Pegmatite Pending
PR12453 508979 9164147 WGS84_35S KatambaPit A2313 Channel Pegmatite Pending
PR12453 508979 9164147 WGS84_35S Katamba Pit A2314 Channel Pegmatite Pending
PR12453 508979 9164147 WGS84_35S KatambaPit A2315 Channel Pegmatite Pending
PR12453 508979 9164147 WGS84_35S KatambaPit A2316 Channel Pegmatite Pending
PR12453 508937 9164177 WGS84_35S KatambaPit A2317 rockchip Pegmatite Pending
PR12453 508980 9164141 WGS84_35S KatambaPit A2318 rockchip Zinnwaldite
specimen
Pending
PR12453 508980 9164147 WGS84_35S Katamba Pit A2319 rockchip Mica schist
specimen
Pending
PR12453 511230 9162167 WGS84_35S KatambaPit A2320 rockchip Foliated
Pegmatite
Pending

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JORC Code, 2012 Edition –Table 1

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Criteria JORC Code Explanation Commentary 11
Sampling
techniques
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 meaningof sampling.
The pit walls were sampled through collection of rock-chips
chiselled from the in-situ pit faces of the pit as a continuous
channel-sample over 1m intervals. In some instances, rock
chips were collected randomly from artisanal pit spoils.
Include reference to measures taken
to ensure sample representivity and
the appropriate calibration of any
measurement tools or systems used.
The continuous channel sampling provides 1m composite
samples that are representative of the sampled interval in
the locality of sampling
but cannot be
considered
representative of the entire pegmatite body.
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
(e.g. ‘reverse circulation drilling was
used to obtain 1m 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.
The channelled rock chips sampling of the pit walls was
completed according to industry standards; the 1m
composite channel samples were comprised of rock chips
and had a mass of 2kg-3kg and equal quantities of sample
were collected from throughout the sample interval.
Drilling
techniques
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.).
This information release does not report drill sampling
or results.
Drill sample
recovery
Method of recording and assessing
core and chip sample recoveries
and results assessed.
This information release does not report drill sampling or
results.
Measures taken to maximise sample
recovery and ensure representative
nature of the samples.
This information release does not report drill sampling or
results.
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.
This information release does not report drill sampling or
results.
Logging Whether core and chip samples have
been geologically and geotechnically
logged to a level of detail to support
appropriate Mineral Resource
estimation, mining studies and
metallurgical studies.
This information release does not report drill sampling or
results.
Whether logging is qualitative or
quantitative in nature. Core (or
costean, channel, etc.) photography
Logging of the pit faces was both quantitative and
qualitative. The Lithology excavated along the length
was logged qualitatively, while the interval of the pit
wall sampled was measured from a set end-point.
The total length and percentage of the
relevant intersections logged.
This information release does not report drill sampling or
results.

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Sub-sampling
techniques and
sample
preparation
If core, whether cut or sawn and
whether quarter, half or all core taken.
This information release does not report drill sampling or
results.
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If non-core, whether riffled, tube
sampled, rotary split, etc. and whether
sampledwet ordry.
This information release does not report drill sampling or
results.
For all sample types, the nature,
quality and appropriateness of the
sample preparation technique.
The samples from the channelled in-situ walls were
collected as channel samples comprised of rock-chips.
The bagged samples were sent to ALS Chemex
Lubumbashi (DRC) where they were crushed and
pulverized to a pulp. A 250g subset will be split from the
pulp and sent to ALS Chemex Modderfontein (RSA) for
analytical determinations
Quality control procedures adopted for
all subsampling stages to maximise
representivity of samples.
Standard sub-sampling procedures are utilized by ALS
Chemex Lubumbashi at all stages of sample preparation
such that each sub-sample split is representative of the
whole it was derived from the original.
Measures taken to ensure that the
sampling is representative of the
in situ material collected, including
for instance results for field
duplicate/second-halfsampling
No duplicate sampling has been undertaken for the rock
chip or channel program. In-house laboratory duplicates
have been relied upon. For first-pass reconnaissance
sampling this is adequate.
Whether sample sizes are
appropriate to the grain size of the
material being sampled.
Sampling of pegmatites is problematic because of the
variation in coarse grain size and distribution. Of all the
field surface sampling methods, channel sampling is
considered to give the most reliable indication of the
mineralization present as the resultant sample may
incorporate a broader range of pegmatite material. The
2kg-3kg mass of the samples is appropriate to the
sampling methodology and the material being sampled.
Quality of assay
data and
laboratory tests
The nature, quality and
appropriateness of the Assaying
and laboratory procedures used and
whether the technique is considered
partial or total.
The rock-chip channel samples were submitted to ALS
Chemex, Modderfontein (Johannesburg) and analysed
using method ME-MS61.
Four acid digestion quantitatively dissolves nearly all
minerals in the majority of geological materials. However,
it may sometimes be necessary to use even stronger
dissolution techniques such as fusions in order to achieve
fully quantitative results for refractory minerals.
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.

There were
no geophysical
tools,
spectrometers,
Handheld XRF instruments used.
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)
andprecision have been established.
As sampling undertaken was of a first pass nature,
laboratory introduced standards, blanks and repeats were
relied upon.
Verification of
sampling and
assaying
The verification of significant
intersections by either independent or
alternative company personnel.
No verification exploration work has so far been
Undertaken at this stage.
The use of twinned holes. This information release does not report drill sampling
or results.
Documentation of primary data, data
entry procedures, data verification,
data storage (physical and electronic)
protocols.
The data from recent exploration is currently stored in
hardcopy and digital format on site. A hard drive copy of
this is located at the administration office in country and will
be frequently uploaded to the company’s database in
Perth,WA.
Discuss any adjustment to assay data. Samples were assayed for a suite of 61. No adjustments
have been made to reported assay data.

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Location of data
points
Accuracy and quality of surveys
used to locate drill holes (collar and
down- hole surveys), trenches, mine
workings and other locations used in
Mineral Resource estimation.
The start-point, end-points have been surveyed using
handheld GPS devices, giving an accuracy of +/- 3m in
open-ground.
Specification of the grid system used. WGS84 UTM (Zone 35S)
Quality and adequacy of
topographic control.
No survey has been undertaken. Hand held GPS
coordinates have been utilised to locate sampling to date
Data
spacing and
distribution
Data spacing for reporting of
Exploration Results.
Sampling undertaken to date was of a reconnaissance
nature and wide spread and focused on existing artisanal
activity and mapped pegmatitic exposures.
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.
Not applicable as no resource estimation. Sampling
undertaken to date was of a reconnaissance nature and
wide spread along geologic bodies.
Whether sample compositing
has been applied.
By their nature, channel samples are composite samples
Orientation of
data in
relation to
geological
structure
Whether the orientation of sampling
achieves unbiased sampling of
possible structures and the extent
to which this is known, considering
the deposit type.
Not applicable to the current sampling.
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.
This information release does not report drill sampling or
results.
Sample security The measures taken to ensure sample
security.
Chain of custody is maintained by Force personnel on-
site to Lubumbashi. At Lubumbashi, the prepped samples
(pulps) are sealed into a box and delivered by DHL to
ALS (Johannesburg).
Audits or
reviews
The results of any audits or reviews of
sampling techniques and data.
The sampling techniques and data have been reviewed
and the assay results are believed to give a reliable
indication of the lithium mineralisation within the samples.

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Section 2 Reporting of Exploration Results

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

Criteria **JORC Code Explanation ** Commentary
Mineral
tenement
and land tenure
status
Type, reference name/number,
location and ownership including
agreements or material issues with
third parties such as joint ventures,
partnerships, overriding royalties,
native title interests, historical sites,
wilderness or national park and
environmental settings.
The Kitotolo licences consist of both Exploitation Permits
and Research Permits PR 12453 (renewal) valid for 5 years
and PE13247 (under application) and valid for 30 years.
All indigenous title is cleared and there are no other known
historical or environmentally sensitive areas.
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.
See above, no other known impediments.
Exploration
done
by other parties
Acknowledgment and appraisal of
exploration by other parties.
The licence area has been previously mined for tin and
tantalum including “Coltan” through a series of open pits over a
total length of approximately 120m excavated by Artisanal
miners.
No production records are available yet. Attempts are being
made to collect all historical production/exploration records.
Apart from the mining and test pit excavations, there has been
no other exploration licences.

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Geology Deposit type, geological setting
and style of mineralisation.
The Project lies within the mid-Proterozoic Kibaran Belt -
an intracratonic domain, stretching for over 1,300 km
through Katanga and into southwest Uganda. The belt
strikes predominantly SW-NE and is truncated by the N-
S to NNW-SSE trending Western Rift system.
The Kibaran comprises a sedimentary and volcanic
sequence that has been folded, metamorphosed and
intruded by at least three separate phases of granite. The
latest granite phase (900 to 950 My ago) is assigned to
the Katangan cycle and is associated with widespread
Vein and
pegmatite
mineralization containing
tin,
Tungsten, Tantalum, Niobium, Lithium and
Beryllium.
Deposits of this type occur
as clusters and are
widespread throughout the Kibaran terrain. In the DRC,
the Katanga Tin Belt stretches over 500 km from near
Kolwezi in the southwest to Kalemie in the northeast
comprising numerous occurrences and deposits of which
the Manono deposit is currently the largest.
The geology of the Kitotolo area is poorly documented
and no reliable maps of local geology have been
observed for the licence area.
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:

easting and northing of the
drillhole

elevation or RL (Reduced
Level – elevation above sea
level in metres) of the drill
hole collar
•dip and azimuth of the hole

down hole length and
interception depth
•hole length.
This information release does not report drill sampling or
results.
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.
This information release does not report drill sampling or
results

15

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Data
aggregation
methods
In reporting Exploration Results,
weighting averaging techniques,
maximum and/or minimum grade
truncations (e.g. cutting of high
grades) and cut-off grades are usually
Material and should be stated.
All results being reported for pit faces are based on 1
metre interval lengths and have had sample intervals
selected by 4CE personnel based on geological
intervals and boundaries.
No top/lower cut have been applied.
At this stage it is considered that an insufficient data set
has been collected to allow geostatistical methods of
any relevance. Methodology may change as the
collected dataset increases
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.
All channel assays reported are weighted averaged
to the Individual sample lengths combined over the
reported interval.
The assumptions used for any
reporting of metal equivalent
values should be clearlystated.
No metal equivalent values reported.
No top-cut has been applied.
Relationship
between
mineralisation
widths
and
intercept
lengths
These relationships are particularly
important in
the
reporting
of
Exploration Results. If the geometry of
the mineralisation with respect to
the drill hole angle
is known, its
nature should be reported



The historic core holes were drilled at -90 dip to intercept
mineralisation generally dipping -30 to sub-horizontal.
Recorded intercept lengths will therefore be greater than
true width of mineralisation.
Given the widely spaced reconnaissance nature of
the current drilling the geometry of the mineralisation
reported is not known and true width is not known.
Current surface sampling results within trenches were
generally oriented perpendicular to the pegmatite
strike and as such are generally collected at 2 metres
across strike width.
If it is not known and only the down
hole lengths
are reported,
there
should be a clear statement to this
effect (e.g. ‘down hole length, true
width not known’).

As above.
Diagrams Appropriate maps and sections (with
scales) and tabulations of intercepts
should be included for any significant
discovery being
reported.
These
should include, but not be limited to a
plan view of drill hole collar locations
and appropriate sectional views.

Refer to this press release body of text
Balanced
reporting
Where comprehensive reporting of all
Exploration Results is not practicable,
representative reporting of both low
and high grades and/or widths should
be practiced
to avoid
misleading
reportingof Exploration Results.

Due to the nature of the historic drilling and lack of
adequate records and survey control data available, they
are to be considered indicative only and not material.

16

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Other
substantive
exploration data
Other exploration data, if meaningful
and material, should be reported
including (but
not
limited
to):
geological observations; geophysical
survey results; geochemical survey
results; bulk samples –
size and
method of treatment;
metallurgical
test
results;
bulk
density,
groundwater, geotechnical and rock
characteristics; potential
deleterious
orcontaminating substances.
No further data available.
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).
Further work may include mapping, soil sampling and
bed rock sampling for geochemical anomalies to identify
prospective target zones and then small amount of drill
testing of the higher priority targets. Diamond drilling may be
included in subsequent phases of drilling,
Diagrams clearly
highlighting
the
areas
of
possible
extensions,
including the
main
geological
interpretations and
future
drilling
areas, provided this information is
not commercially sensitive.

These will be provided when drilling is reported.

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