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CRITICAL RESOURCES LIMITED Capital/Financing Update 2018

Aug 20, 2018

64708_rns_2018-08-20_c432c013-aa2d-4bc7-8d91-5bf35fa4353c.pdf

Capital/Financing Update

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21 August 2018

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

EXPLORATION UPDATE - KANUKA LITHIUM PRODUCTION PROJECT

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Figure 1: RC Drilling at the Kanuka Lithium Production Project in the DRC

  • Phase 1 RC drilling program at the Kanuka Lithium Production Project nearing completion with 3 of the 5 drill fences now completed.

  • 29 RC holes completed, each to a depth of 60m, for a combined 1,740m of RC drilling.

  • All drillholes have intersected multiple and parallel pegmatitic rock-types confirming surface geological mapping completed by the Company earlier this year.

  • Samples from the first 21 RC drillholes have been dispatched to ALS in Lubumbashi for sample preparation and to Johannesburg for multi-element analytical determinations.

  • Assay results received from the initial Phase 1 auger drill program at Kanuka confirm broad surface lithium mineralisation across the Kania Main Pegmatite with 50 of 51 samples returning lithium and a best result of 2.13% Li2O. Lithium grades are consistent with expectations for weathered material and indicative of a mineralised LCT system.

Force Commodities Ltd | Ground Floor, 20 Kings Park Road, West Perth, WA, 6005 | PO Box 1024 West Leederville WA 6007 Ph: +61 8 6202 6530 | F: +61 8 6323 3347 | web:forcecommodities.com.au | ABN 12 145 184 667 | ASX:4CE

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  • Auger assays and geochemistry information to assist in refining the drill targets for remainder of the Phase 1 RC and diamond drilling programs at Kanuka.

  • Phase 1 RC drilling at Kanuka to be completed within the next 3 weeks, with the drill rig to then relocate to the Company’s Kitotolo Lithium Project.

  • Diamond drilling at Kanuka to follow RC drilling, upon review of RC drilling results.

  • All siteworks completed at Kitotolo in preparation for the 15,000m RC drilling program to commence upon arrival of the RC drill rig in early September 2018.

  • RC drill planning at the Kitotolo well underway and to be supported by in-house ‘Tromino passive seismic’ survey geophysics to target pegmatites beneath the shallow Lateritic cover.

Force Commodities Ltd ( Force or the Company ) (ASX Code: 4CE) is pleased to provide an update on the Company’s current RC drilling activities at its at its Kanuka Lithium Production Project located in Tanganyika Province in the south east of the Democratic Republic of Congo ( DRC ).

The Kanuka Lithium Production Project is a Joint Venture between Force (51%) and established Congolese tin and tantalum mining company, MMR (49%).

The Joint Venture includes granted Mining License PE13082 and Exploration License PR4100, which together extend over an area of 194km[2] .

The Kanuka Lithium Project Joint Venture is located just 5km immediately south of AVZ Mineral’s ‘worldclass’ Manono-Kitotolo Lithium Project licenses and 20km east of the Company’s Kitotolo Lithium Project.

Kanuka Lithium Production Project RC and Diamond Drilling

As previously advised, Equity Drilling Limited ( Equity Drilling ), who were appointed as the Company’s drilling contractor (refer ASX Announcement dated 28 March 2018) to complete a combined 20,000m Phase 1 RC and diamond drilling program at the Company’s Kanuka Lithium Production Project and Kitotolo Lithium Project.

At the Kanuka Lithium Production Project, Equity Drilling are completing a ~3,000m RC drilling program which is to be followed by a diamond drilling program.

The Phase 1 RC Drilling program at the Kanuka Lithium Production Project JV, has been designed to target near surface lithium mineralisation hosted within exposed pegmatites.

The Company is pleased to confirm that Equity Drilling has completed a total of 29 holes, each to a depth of 60m and for a combined 1,740m. Drill fences 1, 2 and 3 on the Kania Main Pegmatite have been completed.

To date all RC drillholes have intersected multiple and parallel pegmatitic rock-types, intercalated with gneissic units, which confirms the surface geological mapping work completed earlier this year within the main alluvial mining area.

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Figure 2: Drilling Activities Concluding at KLJV022 at the Kanuka Lithium Production Project

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Figure 3, 4 and 5: RC Drilling and Samples at the Kanuka Lithium Production Project in the DRC

Samples from the first 21 RC drill holes have been dispatched to ALS in Lubumbashi for sample preparation and then to Johannesburg for multi-element analytical determinations. The first drill assay results are expected to be received within 3 to 4 weeks.

The main pegmatite drill target, the Kania Main Pegmatite, which has been mapped over an approx. 5.5km of strike length and which is seen intercalated with gneiss, is observed to be widening towards the south west and this will be the focus of further RC and diamond drilling.

Initial drilling results suggest that the local stratigraphy is more complex than first interpreted through the surface geological mapping, with the stratigraphy appearing to be flat lying to shallowly dipping towards the NW.

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A number of the mineralised horizons intersected in the RC drilling to date are considered to be tentatively correlated with, and are interpreted to represent the up-dip continuation of mapped surface mineralisation exposed and sampled by the recent auger and rock chip sampling.

A summary of the Phase 1 RC drilling completed to date is provided in Table 1.

Hole ID Type Max
Depth
Plan_Northing Plan_Easting Plan_RL Grid ID Sample
status
Assay
Status
Dip Azimuth
KLJV001 AC/RC 60 9166821 544780 631 WGS84_35S Dispatched Pending -60 125
KLJV002 AC/RC 60 9166849 544739 631 WGS84_35S Dispatched Pending -60 125
KLJV003 AC/RC 60 9166878 544698 631 WGS84_35S Dispatched Pending -60 125
KLJV004 AC/RC 60 9166906 544657 631 WGS84_35S Dispatched Pending -60 125
KLJV005 AC/RC 60 9166935 544615 631 WGS84_35S Dispatched Pending -60 125
KLJV006 AC/RC 60 9166963 544574 631 WGS84_35S Dispatched Pending -60 125
KLJV007 AC/RC 60 9166992 544533 631 WGS84_35S Dispatched Pending -60 125
KLJV008 AC/RC 60 9167020 544492 631 WGS84_35S Dispatched Pending -60 125
KLJV009 AC/RC 60 9167049 544451 631 WGS84_35S Dispatched Pending -60 125
KLJV010 AC/RC 60 9167077 544410 631 WGS84_35S Dispatched Pending -60 125
KLJV011 AC/RC 60 9167106 544369 631 WGS84_35S Dispatched Pending -60 125
KLJV012 AC/RC 60 9167134 544328 631 WGS84_35S Dispatched Pending -60 125
KLJV013 AC/RC 60 9167163 544287 631 WGS84_35S Dispatched Pending -60 125
KLJV014 AC/RC 60 9167191 544246 631 WGS84_35S Dispatched Pending -60 125
KLJV015 AC/RC 60 9167220 544205 631 WGS84_35S Dispatched Pending -60 125
KLJV016 AC/RC 60 9167250 544161 631 WGS84_35S Dispatched Pending -60 125
KLJV017 AC/RC 60 9166075 543894 631 WGS84_35S Dispatched Pending -60 134
KLJV018 AC/RC 60 9166105 543864 631 WGS84_35S Dispatched Pending -60 134
KLJV019 AC/RC 60 9166139 543828 631 WGS84_35S Dispatched Pending -60 134
KLJV020 AC/RC 60 9166174 543792 631 WGS84_35S Dispatched Pending -60 134
KLJV021 AC/RC 60 9166209 543755 631 WGS84_35S Dispatched Pending -60 134
KLJV022 AC/RC 60 9166243 543719 631 WGS84_35S Pending Pending -60 134
KLJV023 AC/RC 60 9166278 543683 631 WGS84_35S Pending Pending -60 134
KLJV024 AC/RC 60 9166135 543531 631 WGS84_35S Pending Pending -60 138
KLJV025 AC/RC 60 9166097 543565 631 WGS84_35S Pending Pending -60 138
KLJV026 AC/RC 60 9166060 543598 631 WGS84_35S Pending Pending -60 138
KLJV027 AC/RC 60 9166023 543632 631 WGS84_35S Pending Pending -60 138
KLJV028 AC/RC 60 9165986 543665 631 WGS84_35S Pending Pending -60 138

Table 1: Summary of Completed Phase 1 RC Drilling Program at the Kanuka Lithium Production Project

The Company is pleased to confirm that Equity Drilling’s diamond drill rig is on site and the Phase 1 diamond drilling program will follow the RC drill program, upon review of the RC drilling esults.

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Figure 6: RC Drilling at the Kanuka Lithium Production Project in the DRC

The diamond drilling program will consist of up to 1,000m of PQ/HQ drilling and is expected to add valuable geological and structural information to assist in constraining the RC drilling and geochemistry information and further add to our geological understanding of the Kanuka Lithium Production Project.

Commenting on the Kanuka Lithium Production Project RC drilling program to date, the Company’s Head of Exploration, James Sullivan said “The RC drilling is progressing at a good and steady rate, so we are expecting to complete the remainder of the RC program within the next 2 weeks. The information we are gathering from the RC drilling program and the assay results from the previously completed auger program will greatly assist us in pinpointing the location and depth of holes in our maiden diamond drilling program – which will follow the RC program upon review of RC drilling results.”

“The results of our Phase 1 auger drilling program have further demonstrated broad shallow lithium mineralisation in pegmatite hosts at the Kalombo Mushwima Prospect area and we may well extend our drilling coverage along Fence 4 to maximise the deeper RC drilling program based on the shallow and higher-grade auger results now received”.

“At our Kitotolo Lithium Project, where our previous trenching and pitting work identified weathered spodumene, we have now established a new and fully equipped field camp and have everything ready to commence RC drilling next month once the Equity Drilling RC rig finished up at Kanuka and is remobilised to Kitotolo.”

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Figure 7: RC Drilling at the Kanuka Lithium Production Project in the DRC

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Figure 8: Diamond Drill Rig at the Kanuka Lithium Production Project in the DRC

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Phase 1 Auger Drilling Results

The Company is pleased to advise that results from the recent shallow auger drill program have confirmed broad lithium mineralisation of the Kania Main Pegmatite with 50 of 51 samples sent for assay returning lithium mineralisation.

The better results from the Phase 1 auger drilling program are shown below in Table 2; and the full results included in Appendix 1.

Hole ID Sample ID **% Li2O ** Hole ID Sample ID % Li2O
KLJVA011 A2555 2.13 KLJVA025 A2565 0.32
KLJVA012 A2556 0.22 KLJVA026 A2566 0.59
KLJVA014 A2558 0.25 KLJVA048 A2569 0.25
KLJVA015 A2559 0.23 KLJVA097 A2584 0.24
KLJVA018 A2561 0.48 KLJVA106 A2589 0.55
KLJVA021 A2562 0.26 KLJVA125 A2594 0.42

Table 2: Summary Result from Phase 1 Auger Drilling Program at the Kanuka Lithium Production Project

The auger drilling results provide further evidence of broad surface lithium mineralisation at the Kanuka Project.

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The shallow auger drilling multi-element assay and XRD results, clearly indicate the Kanuka mineralisation has a (LCT Pegmatite) affinity.

The kaolinite content derived from the XRD analyses also indicate the surface areas of highly weathered pegmatite demonstrate near surface weatheringinduced lithium depletion.

This is typical of weathered pegmatites and is indicative of a well mineralised system

Figure 7: Highlighting gridded assay results (Inverse distance to a power) of the new Auger bedrock geology results, combined with previous ASX Due Diligence results (2017) and inferred pegmatites Phase 1 RC Drilling. Contouring was conducted using 74 sample points.

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A total of 143 sample points was collected, of these, 51 samples were sent for multi-element analysis. The auger drilling and sampling was designed to test bottom of hole bedrock geology geochemistry. Representative rock-chip fragments brought to the surface from the auger bit were between 2-3kg.

A 48 multi element suit was conducted, however only Li2O percent results are being reported in this release.

In addition, the Company engaged Geolabs Global (Pty) Ltd (South Africa) to complete XRD analyses of 5 selected shallow high-grade auger samples, with the results shown in Table 3 below.

Sample ID Lepidolite Petalite Albite Apatite Garnet Microcline Kaolinite Quartz Total
% % % % % % % % %
A2555 26.70 1.51 4.10 0.55 0.76 0.00 0.00 66.37 100.00
A2556 2.23 0.88 3.01 0.04 1.84 34.77 18.92 38.31 100.00
A2561 5.97 0.34 1.69 0.07 5.20 21.70 17.64 47.39 100.00
A2565 3.87 0.48 19.64 0.22 2.17 33.46 16.06 24.11 100.00
A2566 7.46 0.24 1.81 0.07 4.07 26.89 15.73 43.73 100.00

Table 3: XRD Analyses of Shallow High Grade Auger Samples

RC Drilling Program to Commence at Kitotolo Lithium Project

On completion of the RC program at the Kanuka Lithium Production Project, Equity Drilling will mobilise the RC drill rig and equipment to the Company’s Kitotolo Lithium Project, located 20km to the west of Kanuka.

The Company is expecting to commence the Phase 1, 15,000m AC/RC drilling program at the Kitotolo Lithium Project in the next 2 to 3 weeks.

RC drill planning at the Kitotolo Lithium Project is well underway and it is to be supported by in-house ‘Tromino passive seismic’ survey geophysics that will take place in the next two weeks, with information returned to assist in targeting the identified pegmatites beneath the shallow alluvial cover.

END

For further information contact:

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Jason Brewer Managing Director Force Commodities Limited Tel: +61 (0) 8 6462 1421

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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 fulltime employee of Force Commodities Ltd.

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: ALL AUGER DRILLING ASSAY RESULTS.

Hole ID Type Depth Sample ID East North RL % Li2O Rock-type Weathering
KLJVA001 Auger 3.00 A2550 541453 9167180 714 0.05 Alluvial Intense
KLJVA002 Auger 3.00 A2551 541481 9167164 717 0.07 Alluvial Intense
KLJVA003 Auger 3.00 A2552 541531 9167142 717 0.18 Alluvial Intense
KLJVA009 Auger 4.00 A2553 541948 9166670 732 0.11 Alluvial Intense
KLJVA010 Auger 4.00 A2554 542016 9166665 733 0.11 Alluvial Intense
KLJVA011 Auger 1.50 A2555 541892 9166199 773 2.13 PEG strong/Moderate
KLJVA012 Auger 2.20 A2556 541886 9166266 761 0.22 PEG strong/Mod
KLJVA013 Auger 2.20 A2557 541876 9166322 750 0.16 PEG strong/Moderate
KLJVA014 Auger 1.50 A2558 541868 9166383 749 0.25 PEG strong/Mod
KLJVA015 Auger 2.20 A2559 541862 9166430 745 0.23 PEG strong/Moderate
KLJVA016 Auger 3.00 A2560 541954 9166286 760 0.14 PEG strong/Mod
KLJVA018 Auger 1.30 A2561 542095 9166204 759 0.48 PEG Strong
KLJVA021 Auger 4.00 A2562 542405 9166155 752 0.26 PEG strong/Mod
KLJVA022 Auger 3.00 A2563 542503 9166155 748 0.18 PEG strong/Moderate
KLJVA023 Auger 3.30 A2564 542604 9166153 741 0.08 PEG strong/Mod
KLJVA025 Auger 4.00 A2565 542806 9166150 730 0.32 PEG strong/Moderate
KLJVA026 Auger 4.00 A2566 542870 9165919 727 0.59 PEG strong/Mod
KLJVA028 Auger 3.50 A2567 542934 9165835 722 0.14 PEG strong/Moderate
KLJVA039 Auger 4.00 A2568 543042 9165923 716 0.14 PEG strong/Mod
KLJVA048 Auger 1.80 A2569 543560 9165515 725 0.25 Granite Strong
KLJVA071 Auger 2.00 A2570 542554 9165488 734 0.18 PEG strong/Mod
KLJVA076 Auger 2.00 A2571 542601 9165002 758 0.04 PEG strong/Moderate
KLJVA077 Auger 3.00 A2572 542498 9164999 761 0.04 PEG strong/Mod
KLJVA079 Auger 1.20 A2573 542462 9165135 752 0.02 PEG strong/Moderate
KLJVA083 Auger 3.00 A2574 542697 9165000 772 0.12 PEG strong/Mod
KLJVA084 Auger 3.00 A2575 542759 9165002 760 0 PEG strong/Moderate
KLJVA086 Auger 2.50 A2576 542804 9165010 750 0.06 PEG/GNEISS strong/Mod
KLJVA089 Auger 2.50 A2577 542704 9164904 789 0.05 PEG strong/Moderate
KLJVA090 Auger 3.00 A2578 542608 9164892 775 0.04 PEG strong/Mod
KLJVA091 Auger 2.00 A2579 542608 9164788 779 0.03 PEG strong/Moderate
KLJVA092 Auger 2.00 A2580 542702 9164802 784 0.04 Granite strong/Mod
KLJVA093 Auger 2.00 A2581 542804 9164799 769 0.17 Granite strong/Moderate
KLJVA094 Auger 2.50 A2582 542580 9164802 782 0.03 PEG strong/Mod
KLJVA096 Auger 2.50 A2583 542507 9164905 774 0.03 PEG strong/Moderate
KLJVA097 Auger 2.50 A2584 542904 9164800 753 0.24 PEG Moderate
KLJVA098 Auger 1.20 A2585 542802 9164707 780 0.18 PEG Intense
KLJVA101 Auger 2.00 A2586 542608 9164706 788 0.02 PEG Intense

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Hole ID Type Depth Sample ID East North RL % Li2O Rock-type Weathering
KLJVA102 Auger 3.00 A2587 542389 9164804 789 0.03 PEG Intense
KLJVA103 Auger 1.50 A2588 542502 9164694 785 0.03 PEG Intense
KLJVA106 Auger 1.00 A2589 542433 9164492 783 0.55 PEG strong/Moderate
KLJVA112 Auger 1.00 A2590 542269 9164538 771 0.1 PEG Strong
KLJVA115 Auger 1.50 A2591 542017 9164576 769 0.04 PEG Intense
KLJVA117 Auger 0.20 A2592 541932 9164634 762 0.07 PEG Intense
KLJVA118 Auger 2.00 A2593 541810 9164630 761 0.02 PEG strong/Moderate
KLJVA125 Auger 1.00 A2594 541348 9164943 793 0.42 PEG Intense
KLJVA128 Auger 1.00 A2595 541745 9164353 769 0.02 PEG strong/Moderate
KLJVA130 Auger 1.00 A2596 542414 9163989 788 0.04 PEG strong/Moderate
KLJVA132 Auger 2.00 A2597 542509 9164157 801 0.01 PEG strong/Moderate
KLJVA134 Auger 0.20 A2598 542679 9164189 801 0.03 PEG strong/Moderate
KLJVA139 Auger 3 A2599 542871 9163898 759 0.01 PEG strong/Moderate
KLJVA141 Auger 2 A2600 542454 9163676 768 0.01 PEG strong/Moderate

*Note: As described in above text, augering drilling and sampling was designed to test bottom of hole geology geochemistry. It should not be considered a significant sample interval. It should be considered representative rock-chip fragments brought to the surface from the auger bit. Each collected auger sample was between 2-3kg.

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APPENDIX 2 – JORC TABLE 1 CHECKLIST OF ASSESSMENT AND REPORTING CRITERIA

Section 1 Sampling Techniques and Data

Criteria JORC Code explanation Commentary
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 downhole gamma
sondes, or handheld XRF instruments, etc.).
These examples should not be taken as
limiting the broad meaning of sampling.
>Include reference to measures taken to
ensure sample representivity and the
appropriate calibration of any
measurement tools or systems used.
>Aspects of the determination of
mineralisation that are Material to the Public
Report. In cases where ‘industry standard’
work has been done this would be relatively
simple (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.
The samples are a collection from auger drill holes, designed to
intersect the in-situ bedrock of pegmatite outcrops under alluvial
sand cover. In all instances, sampled rock chip fragments were
collected from the auger drill heads.
The auger drill rockchip samples are representative of the sampled
interval in the locality of sampling but cannot be considered
representative of the entire pegmatite body.
The rock chips sampling of the outcrops was completed according to
best practice and industry standards.
Given the purpose of first pass reconnaissance exploration work,
sampling practices appear to have been appropriate at the time.
None of the rockchips or channel samples are appropriate for, or
have been used for, Mineral Resource estimates.
Recent auger derived rockchip sampling has been completed for
the purpose of helping to assist with definition of mineralised
zones within the pegmatite outcrops and have been sampled in
accordance with standardised sampling procedures and protocols.
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.).
Handheld and motorised auger drilling using 75mm auger head to
depths of 3-4m
Drill sample
recovery
>Method of recording and assessing core and
chip sample recoveries and results assessed.
>Measures taken to maximise sample
recovery and ensure representative nature
of the samples.
>Whether a relationship exists between
sample recovery and grade and whether
sample bias may have occurred due to
preferential loss/gain of fine/coarse
material.
This information release does not report drill sampling or results.
Augering was drilled to depths where bedrock geology was
encountered and sampled accordingly. In some instances, bedrock
was not intersected, and hole was abandoned due to depth constrains
of auger drill.
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.
>Whether logging is qualitative or
quantitative in nature. Core (or costean,
channel, etc.) photography.
>The total length and percentage of
the relevant intersections logged.
The auger drill holes were logged where bedrock
geology was intersected.
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
beginning and end-points.
Bedrock geology was logged using auger drill samples, which can
be considered rock chips/fragments recovered from auger drill
head.

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Criteria JORC Code explanation Commentary
Sub-sampling
techniques
and sample
preparation
>If core, whether cut or sawn and
whether quarter, half or all core taken.
>If non-core, whether riffled, tube sampled,
rotary split, etc. and whether sampled
wet or dry.
>For all sample types, the nature, quality
and appropriateness of the sample
preparation technique.
>Quality control procedures adopted for all
sub- sampling stages to maximise
representivity of samples.
>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.
>Whether sample sizes are appropriate to
the grain size of the material being
sampled.
This information in this release refers to
auger/rockchip/fragments recovered from intersecting
bedrock geology.
Representative auger samples were drilled until a sample
weight of 2-3kg was collected. All recovered samples were
dry.
The samples from the auger drilling were collected as and 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 was split
from the pulp and sent to ALS Chemex Modderfontein (RSA) for analytical
determinations
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.
Sampling of pegmatites is problematic because of the variation in coarse grain
size and minerals distribution. The 2kg-3kg mass of the samples is considered
appropriate and representative 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.
>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.
>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.
All samples from the sampling program were shipped to the ALS laboratory
in Lubumbashi, DRC for sample preparation and then JBurg for chemical
analysis.
The crushing preparation code was CRU-31 (Prep 31B) (Crush to 70% less
than 2mm, riffle split off 1kg, pulverize split to better than 85% passing 75
microns.
The pulverizing code used was PUL-32(Prep 31B)(Crush to 70% less than
2mm, riffle split off 1kg, pulverize split to better than 85% passing 75 microns
The analyses code was ME-MS61 (multi-acid digestion with ICP-MS finish),
which has a range for Li of 1 to 10,000 (1%) ppm Li.
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.
No geophysical Instruments were used in collecting or analysis.
As sampling undertaken was of a first pass nature, only laboratory
introduced standards, blanks and repeats were relied upon.
Examination of the QA/QC sample data indicates satisfactory performance
of field sampling protocols and assay laboratories providing acceptable levels
of precision and accuracy.

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Criteria JORC Code explanation Commentary
Verification of
sampling
and assaying
>The verification of significant
intersections by either independent
or alternative company personnel.
>The use of twinned holes.
>Documentation of primary data,
data
entry
procedures,
data
verification, data storage (physical
and electronic) protocols.
>Discuss any adjustment to assay data.
No verification exploration work has so far been Undertaken at this stage.
This information release does not report twinned drill sampling or results.
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.
Samples were assayed for a multi element suite of 48 elements. However, the
presented data has been reduced to just Li. In addition Li2O has been
reported. It has been calculated from the reported assay result for Li in ppm.
The calculation is %Li2O = (ppm Li x 2.153)/10000 and the presented results
have been rounded to the second decimal place.
No adjustments have been made to reported assay data.
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.
>Specification of the grid system used.
>Quality and adequacy of topographic
control.
The geological data, including start-point, end-points have been surveyed
using handheld GPS devices, giving an accuracy of +/- 3m in open-ground.
WGS84 UTM (Zone 35S)
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.
>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.
>Whether sample compositing has been
applied.
Sampling undertaken to date was of a reconnaissance nature and wide spread
and focused on intersecting shallow bedrock geology under cover and mapped
pegmatitic exposures.
Not applicable as no resource estimation. Sampling undertaken to date was of a
reconnaissance nature and wide spread along geologic bodies.
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.
>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.
Not applicable to the current sampling.
Most holes are also intended to intersect the pegmatite at, or close to vertical
to the pegmatite contact,
Sample security >The measures taken to ensure
sample security.
Rock chip samples were shipped directly from the field by the project geologist
in sealed rice bags or similar containers using a reputable transport company
with shipment tracking capability so that a chain of custody can be maintained.
Each bag was sealed with a security strap with a unique security number. The
containers were locked in a shed if they were stored overnight at any point
during transit, including at the drill site prior to shipping. The laboratory
confirmed the integrity of the rice bag seals upon receipt
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

Criteria JORC Code explanation Commentary
Mineral
tenement
and land
tenure
status
>
Type, reference name/number, location
and ownership including agreements
or material issues with third parties
such as joint ventures, partnerships,
overriding royalties, native title
interests, historical sites, wilderness or
national park and environmental
settings.
>
The security of the tenure held at the
time of reporting along with any
known impediments to obtaining a
licence to operate in the area.
The Kanuka licences consist of both Exploitation Permits and Research Permits PE
13082 (renewal) valid for 30 years and Exploitation Permit PR4100 valid for 5 years with
further renewals of 5 years.
See above, no other known impediments.
Exploration done
by other parties
>
Acknowledgment and appraisal
of exploration by other parties.
The licence area is currently being mined for tin and tantalum including “Coltan” through a
series of open pits, the largest over a total length of approximately 3km excavated by
MMR and artisanal miners.
Apart from the mining and test pit excavations, there has been no other exploration licences
below alluvial layers and no lithium exploration has taken place.
Geology >
Deposit type, geological setting and
style of mineralisation.
The Kanuka Project is an early stage exploration project in terms of Lithium
potential. There are high grade lithium occurrences only at this stage. Further
exploration programs will be required to determine whether the project has
further economic potential.
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 NS 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 mineralisation 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 drill hole collar
>
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.
>
If the exclusion of this information is
justified on the basis that the
information is not Material and this
exclusion does not detract from the
understanding of the report, the
Competent Person should clearly
explain why this is the case.
Drill hole information is tabled as Appendix 1 in the report.

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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.
>
Where aggregate intercepts incorporate
short lengths of high grade results and
longer lengths of low grade results, the
procedure used for such aggregation
should be stated and some typical
examples of such aggregations should
be shown in detail.
>
The assumptions used for any reporting
of metal equivalent values should be
clearly stated.
All results being reported for auger drill holes are based on approximately 0.1-
0.2 metre interval to provide a 2-3kg sample.
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 increase
Not included in the reported results
Relationship
between
mineralisation
widths and
intercept lengths
>
These relationships are particularly
important in the reporting of
Exploration Results.
>
If the geometry of the mineralisation
with respect to the drill hole angle is
known, its nature should be reported.
>
If it is not known and only the down
hole lengths are reported, there
should be a clear statement to this
effect (e.g. ‘down hole length, true
width not known’).
All results being reported for pit faces are based on 0.1-0.2 metre interval
lengths and have had sample intervals selected by 4CE personnel based on
geological intervals and boundaries. The geometry of the mineralisation
reported is not well understood, as it is under cover and early stage exploration,
however the pegmatite is not of uniform thickness and their orientations vary
down-dip and along strike.
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


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.
~~ll~~
~~t d d t~~
~~t i~~
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 toavoid misleading reporting of
Exploration Results.
Due to the nature of the early stage project status and limited sampling to date,
the results should be considered indicative only and not material. All results
should be considered in the limited context of the sampling program. The
samples collected to date are considered representative of the exposed
mineralisation.
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 samplessize and
method of treatment; metallurgical test
results; bulk density, groundwater,
geotechnical and rock characteristics;
potential deleterious or contaminating
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).
>
Diagrams clearly highlighting the
areas of possible extensions, including the
main geological interpretations and future
drilling areas, provided this information is not
commercially sensitive.
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 higher priority targets. RC/ Diamond drilling will be included in
subsequent phases of drilling.

16