CRITICAL RESOURCES LIMITED — Interim / Quarterly Report 2018

Apr 30, 2018

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ASX ANNOUNCEMENT 30 April 2018

About Force

• Force Commodities Limited is a Perth based lithium exploration and development focussed company listed on the Australian Stock Exchange (ASX Code: 4CE)

Project Summary

• 70% interest in JV over Kitotolo Lithium Project, DRC.

• 51% interest in JV over Kanuka Lithium Production Project, DRC.

• 99.5% interest in Mt Adrah Gold Project, in NSW.

• 55% interest in Rocky River / Uralla Gold Project, in NSW

Directors and Management

Mr David Sanders - Chairperson Mr Jason Brewer - Director Mr Gedeon Pelesa - Director Mr Michael Fry – CFO/CoSec

Capital Structure

Shares on Issue:

419,915,868 fully paid ordinary

Options on Issue:

• 26,416,662 exercisable @$0.032; expiring 30 June 2019

• 10,000,000 exercisable @$0.035; expiring 30 June 2019

• 937,500 exercisable @$0.048; expiring 30 June 2019

• 2,000,000 exercisable @$0.06; expiring 1 July 2020

• • 2,000,000 exercisable @$0.08; expiring 1 July 2020

March 2018 Quarter Review of Operations

Highlights

DRC Lithium Projects

• Kanuka Lithium Production Project: formal JV documentation executed and JV company incorporated to recognise Force’s interest. 4,000m AC-RC and diamond drilling contract executed for drill-testing of +3km pegmatite identified in main mining area.

• Kitotolo Lithium Project: Test pitting and trenching programs confirm high-grade lithium mineralisation in pegmatite at 500m and 1km step outs from Katamba Pit. Work demonstrates the pegmatite extends in excess of 1km and remains open in both NE and SW directions. 16,000m AC-RC and diamond drilling contract executed for drill-testing of mineralisation.

• Kanuka South Lithium Project: Landmark agreement executed to acquire option over 100% interest covering an area of 260km[2] and containing extensive artisanal cassiterite mining activities and exposed lithium bearing pegmatites.

• Kitotolo West Lithium Project: Landmark agreement executed to acquire up to a 75% interest in proposed joint venture covering an area of 400km[2] and considered highly prospective for lithium bearing pegmatites given the Company’s work completed on the adjacent Kitotolo Lithium Project.

Kitotolo Lithium Project

• Project comprises Exploration License PR 12453 and Mining License PE 13247, and extends over an area of approx. 400km[2.]

• Project area along strike from AVZ’s ‘world-class” Manono Project; considered to be one of the largest pegmatite bodies in the world.

• Due diligence investigations identified spodumene in pegmatites across significant areas within Project area.

• • Initial assay results confirm high grade lithium mineralisation (up to 2.15% Li2O) in pegmatites and in large artisanal pit.

• Subsequent assays from test-pits and trenches confirm high-grade lithium mineralisation in pegmatite at 500m and 1km step outs from Katamba Pit.

Force Commodities Limted | Ground Floor, 20 Kings Park Road West Perth, WA, 6005 | PO Box 1024 West Leederville WA 6007 P: +61 8 6462 1414 | F: +61 8 6323 0418 | web: www.forcecommodities.com.au | ABN 12 145 667 885 | ASX:4CE

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Kitotolo Lithium Project (contd)

• Project area has historical cassiterite and columbite-tantalum mining, minerals commonly found alongside Lithium.

• Joint venture agreement executed and other legalities completed culminating in the issue of 67,500,000 shares to the party who introduced the project.

• 16,000m AC-RC and diamond drilling program to commence following program at Kanuka Lithium Production Project.

Kanuka Lithium Production Project

• Board approved decision to proceed with the proposed JV with Mining Mineral Resources SPRL (MMR) to establish the new, production focused, Kanuka Lithium Project Joint Venture.

• Formal JV documentation executed with MMR and JV company incorporated to recognise Force’s interest, management role and the planned exploration programs and proposed development activities.

• MMR is part of the VinMetals Group, a diversified mining, metals and trading group that has operated successfully in the DRC since 1997, with existing copper, cobalt, tantalum, tin and tungsten mines and processing plants.

• The Kanuka Lithium Project Joint Venture (Force 51%, MMR 49%) includes granted Mining License PE13082 and Exploration License PR4100; covering an area of 194km[2] and containing extensive lithium bearing pegmatites.

• MMR currently operates tin and tantalum mining and processing operations on part of the license areas and in conjunction with the iTRi exports ICGLR-certified tin and tantalum to international markets.

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

• Pegmatite on the license areas are on a NE-SW trend and exposed at surface and observed to extend for over 3km in length and 200m in width. Furthermore, pegmatites have in places been exposed by historic and current mining operations and has been mined down to depths of up to 15 metres.

• The Kanuka Lithium Project Joint Venture will benefit from the excellent infrastructure of an established mining operation, with power, mine camp and offices as well as its own airstrip which will accelerate exploration activities.

• The Company’s Head of Exploration, Mr James Sullivan and geological team completed a technical due diligence investigation of the Kanuka Lithium Project Joint Venture license areas and on the strength of the observations and sample results a formal decision was made to proceed and finalise a joint venture agreement.

• Whilst no previous lithium focused exploration or mining has been conducted on the license areas, grab samples of highly weathered shallow material taken as part of the Company’s technical due diligence program reported high grade lithium mineralisation in the pegmatite including 2.12% Li20 and 1.93% Li20.

• The Kanuka Lithium Project Joint Venture will utilise MMR’s existing logistics capabilities in the region and on-site drilling equipment and mining fleet and services which are anticipated to substantially increase operating efficiencies, reduce costs and accelerate exploration and study work timeframes.

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Mt Adrah Gold Project

• Company has entered into an agreement to dispose of the Mt Adrah Gold Project.

• Company to receive consideration of up to $500,000 in cash and shares.

• Subsequent to end of the quarter, the Purchasers have advised of their decision to proceed with the acquisition.

Corporate & Finance

• Establishment of full in-country administrative and accounting function in DRC to support local operations and for reporting and regulatory purposes.

• Issue of 67,500,000 new shares pursuant to terms of acquisition of Kitotolo Lithium Project.

• $391k in cash received for option conversions.

• Cash at bank as at 31 March 2018 of $3.486m.

• Well-funded to undertake aggressive exploration programs planned during this calendar year and finalise its proposed new project acquisitions and joint venture activities.

• Annual General Meeting to be held 25 May 2018.

Activities Report for the quarter ended 31 March 2018.

Force Commodities Limited (ASX Code: 4CE) (“ Force ” or the “ Company ”) provides its activities report for the quarter ended 31 March 2018.

Force has a majority interest in two highly prospective lithium projects (Kitotolo Lithium Project, Kanuka Lithium Production Project) in the Tanganyika Province of the Democratic Republic of Congo ( DRC ) each of which have identified pegmatites across significant areas of their project area. The projects are highlighted in red in Figure 1.

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Figure 1. Location Map: Force project interests in Kitotolo-Manono region. Owned interests (in red). Option

interests (in blue).

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In addition, Force has an option to acquire the Kitotolo West Lithium Project, and a conditional agreement to acquire up to a 75% interest in the Kanuka South Lithium Project, which are also considered highly prospective for lithium mineralisation and have known areas of artisanal mining activities and exposed lithium bearing pegmatites. The projects are highlighted in blue in Figure 1.

The proposed acquisition of the Kanuka South Lithium Project and the Kitotolo West Lithium Project, should they both proceed, will result in the Company increasing its land-holding to ~1,250 km[2 ] in the Kitotolo-Manono area and with all its licenses and project interests in close proximity to AVZ’s Manono Project. The Kitotolo-Manono area has been described as a ‘world-class’ lithium region.

AVZ’s Manono Project is considered to be potentially one of the largest lithium-rich LCT (lithium, caesium, tantalum) pegmatite deposits in the world. Work performed to date by AVZ has demonstrated that the pegmatites extend for a strike length of 13km+ and is more than 200m wide and more than 240m thick in places.

Historical records suggest that pegmatite field in the region extends over 500km from Kolwezi in the south-west to Kalemie in the north-east and that Force’s lithium projects overlay a large section of the pegmatite field.

Force plans undertake aggressive exploration programs during 2018 to quickly identify the extent of pegmatites within the Company’s project areas and to target lithium mineralisation.

1. KITOTOLO LITHIUM PROJECT

1.1 Overview

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Figure 2: Highlights an Inferred Regional structural Corridor which possibly hosts a larger and wider pegmatite field within the Kibaran Belt.

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The Kitotolo Lithium Project comprises Exploration License PR 12453 and Mining License PE 13247, and extends over an area of approx. 400Km[2] .

It is located 30km south west of ASX listed AVZ Minerals’ Manono Lithium Project.

Force has acquired a 70% interest in a new Joint Venture company together with DRC sateowned mining company La Congolaise d’Exploitation Miniere ( Cominiere SA ) (30%) for the purpose of exploring in joint venture the Kitotolo Lithium Project.

1.2 Geology

The Kitotolo Project is approximately 30Km SW and along strike of the main historical ManonoKitotolo (Roche Dure) pegmatite.

The pegmatite is exposed in two regions, Manona in the northeast (where AVZ Minerals Limited’ Manona Project is, and Kitotolo in the southwest. These are separated by a 2.5km unexposed section centred on Lake Lukashi and the surrounding alluvial plain.

The area has not been the subject of any modern lithium exploration and as such there is no reliable maps of local geology. What local geology that is known is largely as a consequence of the work that AVZ Minerals Limited has undertaken to date.

At Kitotolo, historical alluvial mining activity focused mainly on Cassiterite and Columbite is visibly evident across the Project area. In the north of the Project area, there is a large artisanal pit measuring approximately 120m long by 50m wide, which contains abundant pegmatite rock types and mineralisation, including Spodumene.

Generally, the pegmatite is observed as being shallow (i.e. near to surface) and underlying a regional laterite cover of between 0 and 6m in thickness.

I n p l a c e s , t he laterite is exposed in small windows above the sandy soil cover. Lateritic outcrops often have pegmatitic material as large clasts within the concretions. This could suggest further in-situ pegmatitic material below or in close proximity to these laterite exposures.

Numerous pegmatite inclusions were mapped in the lateritic cover several hundred metres from the large artisanal pit’s workings suggesting that the pegmatite lies below the lateritic cover or in close proximity. Numerous artisanal workings were identified around the perimeter of the pit, with abundant previously mined material.

1.3 Work Completed during March 2018 Quarter

Drill-Planning

Work during the quarter was largely focussed on preparation for the up-coming drilling program following the execution of a contract with Equity Drilling. The drilling program will comprise 15,000m of Aircore and RC drilling to be followed by 1,000m of diamond drilling.

The drilling program will target unweathered pegmatite beneath a zone of pegmatite extending 1km NE from the large artisanal Katamba Pit located in the north-eastern quadrant of the Project area and within a NE-SW trending pegmatite corridor, containing AVZ’s Manono Project, Tantalex’s Buckell Project and the Katamba Pit.

The 16,000m drilling program is expected to commence immediately upon completion of the initial 50-hole AirCore-RC drilling program that Equity Drilling are completing at the Company’s Kanuka Lithium Production Project.

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1.4 Work Completed Historically

Due Diligence Investigation

On-the-ground technical due diligence activities were undertaken over a 4-week period in September 2017 by consultant geologist Mr James Sullivan with assistance provided by two geologists from joint venture partner - DRC state-owned mining and exploration company Cominiere SA.

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.

The pegmatite exposures are dominated by quartz-albite-muscovite, with columbite and spodumene-zinewaldite at the macro-scale. In places t h e 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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Figure 3, 4 and 5: Pegmatite hosting spodumene mineralisation at the Kitotolo Lithium Project

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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, referred to as the ‘Katamba Pit’, where visible spodumene, lepidolite and other associated micas were identified.

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

Figure 6: 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 7 and 8: Spodumene mineralisation at the Kitotolo Lithium Project

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Figure 9 and 10: Pegmatitic clasts within regional lateritic cover and further artisanal workings and test pits

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 was considered extremely high during the Company’s initial independent technical due diligence work.

– Due Diligence Investigation Assay Results

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.

The assay results confirm the presence of high grade spodumene pegmatite-hosted lithium mineralisation at shallow depths, hosted in an inferred structural corridor, just 40km south-west of AVZ Minerals Limited’s ‘world-class’ Manono Lithium Project.

Upon review of the assay results received, Force’s Consulting Geologist Mr. James Sullivan stated:

“The results of the first ever sampling at the Kitotolo Lithium Project are significant, having confirmed the presence of high grade zones of pegmatite hosting lithium spodumene mineralisation at surface and at shallow depths and in predominantly weathered material.”

“The results are very encouraging and continue to highlight the potential of the Kibaran Belt within the Kitotolo Lithium Project to host significant pegmatite hosted lithium mineralisation.”

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Figure 11 : Lithium assays results derived from the Independent Technical Due Diligence

The assay results show in a broad sense, that the lithium mineralisation at the Kitotolo Lithium Project is observed to be preferentially hosted within a near surface and very oxidised pegmatite with an LCT affinity (Rare-Element Classed pegmatite with L ithium, C aesium, and T antalum enrichment. The strongest mineralisation is frequently observed within or near the contacts between large quartz rich and quartz-albite zones.

These observations and characteristics are typical of LCT type pegmatite deposits and consistent with recent descriptions of AVZ’s Manono pegmatite deposits.

The initial assay results for the first 20 test pit and rockchip samples of the Independent Technical Due Diligence campaign are summarized in Table 1 below.

Phase 1 Exploration – Test-pitting and Trenching

The Phase 1 Lithium Exploration Program commenced at the Kitotolo Lithium Project in late November 2017.

Initial exploration activities are being focused on the area surrounding the large artisanal workings at the Katamba Pit where spodumene in pegmatite has been identified and where assays from the Company’s initial independent due diligence review returned high-grade lithium mineralisation (refer ASX Announcement dated 9 October 2017 - Assays Confirm High Grade Lithium Mineralisation at Kitotolo).

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Table 1 : Summary assay results for rockchip and channel samples A2301 to A2320 at the Kitotolo Project.

In the period to end December 2017, 43 test pits were completed along with 586 line metres of trenching across 9 trenches.

A total of 185 samples were collected for assay, 42 from test-pits and 143 from trenches.

A total of 4 of the 9 trenches intersected shallow and highly weathered pegmatite and zones of lithium mineralisation beneath approx. 6m of lateritic cover. The total strike extent defined by trenching and test pitting is in excess of 1km. Test pitting in the furthermost NE corner of the initial Phase 1 Lithium Exploration Program area, successfully identified pegmatite lithologies in test pit 040 – located approx. 1km NE of the Katamba Pit and which is interpreted to add a continuous strike along the NE/SW orientation and supporting the regional pegmatite orientation interpretations across the Kitotolo Mining and Exploration licences.

Trenches 001, 002, 003 and 008 in particular were observed to contain significant quantities of fresh and partially weathered spodumene mineralisation.

- - Assay Results Phase 1 Exploration: Test pitting and Trenching

Significant assays returned from the trench sampling included the following intersections:

• Trench 001: 10m @ 0.25% Li20

• (incl. 1m @ 0.53% Li2O)

• Trench 002: 20m @ 0.21% Li2O

• (incl. 1m @ 0.67% Li2O)

• (incl. 1m @ 0.52% Li2O)

• (incl. 1m @ 0.50% Li2O)

• Trench 008: 21m @ 0.26 % Li2O

(incl. 4m @ 0.50% Li2O)

• (incl. 4m @ 0.34% Li2O)

• (incl. 3m @ 0.27% Li2O)

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Figures 12 and 13:. Commencement of Trench 003 and channel sampling exposed pegmatite at base of Trench 001.

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Figures 14 and 15: Trench 008 showing exposed and weathered pegmatite from surface dipping 10[o] to 15[o] west and providing upper contact structural data

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Figure 16: One of several examples of partially weathered spodumene lithium mineralisation – from Trench 008 observed in the trench walls and base.

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Figures 17 and 18. Partially weathered spodumene lithium mineralisation - exposed in Trench 002 and white spodumene lithium mineralisation from Test Pit 036

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Figure 19: Kitotolo Lithium Project Phase 1 trench locations and assay locations

DATASET	DATE	TRAVERSE NO. (E/N)	NUMBER SAMPLES	TOTAL LENGTH
Katamba	28-Nov 2017	Katamba TR001	12	12m
Katamba	29-Nov 2017	Katamba TR002	20	30m
Katamba	30-Nov 2017	Katamba TR003	66	123m
Katamba	01-Dec 2017	Katamba TR004	not sampled	230m
Katamba	02-Dec 2017	Katamba TR005	not sampled	78m
Katamba	03-Dec 2017	Katamba TR006	10	20m
Katamba	04-Dec 2017	Katamba TR007	not sampled	31m
Katamba	07-Dec 2017	Katamba TR008	45	58m
Katamba	10-Dec 2017	Katamba TR009	not sampled	4m

Table 2: Summary of trench work completed and samples taken

A total of 43 test pits were completed during the initial Phase 1 Lithium Exploration Program. The test pits were conducted on 100m centres to cover a large area quickly.

DATE	TRAVERSE NO. (E/N)	SAMPLES FROM	SAMPLES TO	SENT TO LAB
01-Dec 2017	Katamba TR001	4CE-A2328	4CE-A2337	03-Dec 2017
29-Nov 2017	Katamba TR002	4CE-A2533	4CE-A2549	18-Dec 2017
30-Nov 2017	Katamba TR003	4CE-A2340	4CE-A2416	18-Dec 2017
03-Dec 2017	Katamba TR006	4CE-A2429	4CE-A2438	18-Dec 2017
07-Dec 2017	Katamba TR008	4CE-A2458	4CE-A2528	18-Dec 2017

Table 3: Summary of sample work completed

Further test pitting and trenching as part of the Phase 1 (balance of) and Phase 2 Lithium Exploration Programs will target strike extensions of the current exposed pegmatites.

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Figure 20: Rockchip and channel assays with new completed Phase 1 Test pit locations. © Jaxa DTM image

The assay results from the initial Phase 1 Lithium Exploration Program have confirmed extensive near surface lithium mineralisation across significant areas in extremely weathered pegmatite on the Kitotolo Lithium Project that remains open towards NE and SW directions and across an initial strike length of more than 1km.

The assay results are considered indicative of near surface and highly weathered pegmatite as having significant lithium depletion which is typical of weathered pegmatites.

The results have further confirmed the continuous strike interpretations along the NE/SW orientation and have reinforced the regional pegmatite orientation across the Company’s Kitotolo Mining and Exploration Licences.

Commenting on the initial Phase 1 Lithium Exploration Program results, Mr Sullivan said:

“Mapping, trenching and test-pitting has confirmed near surface pegmatite exposures and interpretations that the Katamba Pit pegmatite extends over 1km and is open in both NE-SW directions.”

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Figure 21: Assay results from the shallow Phase 1 Lithium Exploration Program test pits identified in weathered pegmatites

Force Commodities Limted | Ground Floor, 20 Kings Park Road West Perth, WA, 6005 | PO Box 1024 West Leederville WA 6007 P: +61 8 6462 1414 | F: +61 8 6323 0418 | web: www.forcecommodities.com.au | ABN 12 145 667 885 | ASX:4CE

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“The trench and test-pitting results are highly encouraging by exposing near surface pegmatite outcrops and hosting spodumene mineralisation which lends support to the region as being a fast emerging world-class hard rock lithium province.”

“We will now move forward to commence a maiden drilling program to drill-test the fresh pegmatite and lithium mineralisation below the lateritic cover and weathered profile over the 1km strike length.”

2. KITOTOLO WEST LITHIUM PROJECT – UNDER OPTION

Subsequent to the end of the quarter, the Company entered into an agreement to acquire up to a 75% interest in the Kitotolo West Lithium Project.

The agreement is subject to the satisfactory completion of legal and technical due diligence; which is currently underway.

2.1 Tenure and Location

The Kitotolo West Lithium Project comprises granted Exploration License PR4295.

PR4295 covers an area of approx. 400km[2] and in addition to be immediately contiguous to the Company’s existing Kitotolo Lithium Project, it is located approx. 35km west of the Company’s Kanuka Lithium Production Project which is a joint venture with Mining Mineral Resources SPRL (MMR).

The license is a granted Exploration License, which is in the process of being converted into a Mining License.

The tenement is contiguous and strategically located immediately adjacent to and just west of the recently identified Kitotolo pegmatite (see ASX Announcement - 10 January 2018 and 20 ‐ February 2018) and along strike to the south west of the Katamba Open Pit at the Kitotolo Project.

The proposed acquisition of the Kanuka South Lithium Project and the Kitotolo West Lithium Project, should they both proceed, will result in the Company having a land-holding of approx. 1,250 km[2 ] in the Kitotolo-Manono area and in close proximity to AVZ’s Manono Project. The Kitotolo-Manono area has been described as a ‘world-class’ lithium region.

In addition to the being just south of the Kanuka Lithium Production Project, the Kanuka South Lithium Project is located ~20km south of AVZ’s Manono Lithium Project, ~20km east of the Kitotolo Lithium Project and ~40km east of the Kitotolo West Lithium Project.

2.2 Access

Access to the license areas is from the same local roads used by the Company to access its existing joint venture lithium projects at Kanuka and at Kitotolo.

2.3 Commentary

The Company believes that the proposed acquisition of a 75% interest in the Kitotolo West Lithium Project to be highly strategic.

Force’s Head of Exploration, Mr James Sullivan, said:

“The Company is extremely pleased to have executed this HOA and potential strategic acquisition of another 400km[2 ] of a highly prospective lithium exploration license. This will further strengthen our position in the exciting and world-class Kitotolo-Manono Lithium Region.

‐ “This is an important addition to our ground holding and, importantly, will allow us to adopt a more

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holistic view of the exploration potential of the area and formulate an exploration approach which is geared to unlocking the potential of the entire Kitotolo trend and potential parallel structures.”

“With this HOA on PR 4295 - the Kitotolo West Lithium Project - we are now focused on preparing for the 16,000m Phase 1 drilling campaign at the newly identified Kitotolo Pegmatite on the neighbouring Kitotolo Lithium Project which, as outlined recently, represents a compelling exploration opportunity for the Company, as well as a systematic assessment of a >25km long Kitotolo-Manono Corridor Trend, which can now be extended along strike onto this larger license area.”

2.4 Key Commercial Terms

The Company has executed a binding Heads of Agreement with WAMICO pursuant to which a new joint venture will be established with Force holding an initial 65% interest and WAMICO the remaining 35% balance.

Force will be the operator and manager of the new joint venture which will undertake exploration activities aimed at the discovery, location and delineation of economic lithium mineralisation with a view to establishing a commercial lithium mining operation.

Force will be responsible for keeping the tenement in good standing and for all costs up to reaching a decision to mine. WAMICO will be free carried to a decision to mine.

Completion of the Kitotolo West Lithium Joint Venture remains subject to finalisation of legal and technical due diligence to be completed over a 60-day period, execution of formal joint venture documentation and receipt of any regulatory approvals.

Under the HOA, Force will fund a minimum US$1.0m of exploration expenditure over the next 12 months, and further annual exploration expenditures of US$1.0m for the subsequent two years.

Force will be required to pay the following cash and share based consideration to WAMICO as vendor and African Arch Capital (Mauritius) Ltd ( AAC ) who have relinquished their previous rights over the license area:

• a) US$150,000 to WAMICO on execution of binding HOA (already paid);

• b) US$100,000 to WAMICO on completion of the technical and legal due diligence and election to proceed with the Kitotolo West Lithium Project Joint Venture, to be settled in cash or shares in Force at WAMICO’s option;

• c) issue A$400,000 of ordinary shares in Force to AAC after election to proceed and on execution of all relevant Joint Venture documentation and associated agreements and obtaining all necessary regulatory approvals;

• d) issue A$600,000 of ordinary shares in Force to AAC on completion by Force of its initial exploration program confirming, amongst other things, the presence of lithium bearing mineralisation within the fresh pegmatites and the formal approval by the Force Board to commit to further exploration activities and resource definition drilling on the Kitotolo West Lithium Project.

In addition, Force may elect to increase its interest in the Kitotolo West Lithium Project from 65% to 75% by issuing to WAMICO a further US$500,000 of ordinary shares in Force, at any time prior to a decision to mine.

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3. KANUKA LITHIUM PRODUCTION PROJECT

In late March 2018, a formal joint venture agreement was executed and a Joint Venture company has subsequently been incorporated for the Kanuka Lithium Production Project Joint Venture, 51% Force and 49% MMR (Mining Mineral Resources SPRL).

The Project area comprises two contiguous licenses: granted Mining License PE13082 and Exploration License PR4100.

These licenses cover an area of approx. 194km[2] and are located 20km east of the Company’s existing Kitotolo Lithium Project. The licenses are also located on the licenses immediately south (approx. 4km from the license boundaries) of AVZ’s Manono Project.

3.1 Project Joint Venture

The Company’s joint venture partner, MMR, is an established tin, tantalum and tungsten mining company that was incorporated in 2008 and which operates a series of exploration, mining and processing operations throughout the DRC.

MMR is part of the VinMetals Group, a diversified mining, metals and trading group that has operated successfully in the DRC since 1997, with existing copper cathode and copper, cobalt, tantalum, tin and tungsten concentrate production from several mines and processing plants.

MMR acquired the mining and exploration licenses that make up the Kanuka Lithium Project in 2012.

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Figure 22 and 23: PE13082 which forms part of the Kanuka Lithium Production Project Joint Venture

Conventional open pit mining operations are ongoing on the license areas, with the alluvial sand layers that host the cassiterite and columbite (minerals that are typically coincidental with lithium mineralisation) mined by truck and shovel methods.

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Figure 24 and 25: Current open pit mining activities on PE13082

Current and historic mining in the license areas has exposed a number of pegmatites, with one identified in the current main mining area being in excess of 3kms long and greater than 200

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metres in width. This is open along strike on a NE-SW trend and is typical of other pegmatites identified in the region.

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Figure 26 and 27: The site offices and processing plant on PE13082

Mined material is fed into the recently expanded processing plant which produces tin and tantalum concentrates that MMR exports to the international market. MMR is one of the industry leaders in the DRC, working closely with iTRi, and has been instrumental in the on-going success of the program in the DRC, supplying ICGLR-certified conflict free “3T” minerals to the international marketplace.

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Figure 28 and 29: Mining activity has exposed significant pegmatite exposures on the license areas

3.2 Work Conducted During the Current Quarter

During the quarter work was focused on finalizing the formal documentation necessary to recognize Force’s project interest ahead of exploration activities commencing.

Following the execution of the formal Joint Venture Agreement and associated documentation in respect to the Kanuka Lithium Production Project joint venture, the Company moved quickly to execute a drilling contract with DRC based drilling service provider Equity Drilling.

The drilling program will consist of an initial 50 holes for ~ 3,000m of AirCore-RC drilling designed to follow up on high grade rock chip lithium mineralisation results from work completed by the Company’s geological team during technical due diligence work undertaken in September 2017.

A 1,000m diamond drilling program will follow the Aircore-RC program as a follow-on from encouraging AirCore-RC drilling results.

Subsequent to the end of the quarter, field camp construction activities have been completed together with drill-pad preparation to allow drilling to immediately commence upon the Equity Drilling drill rig mobiliising to site.

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3.3 Work Conducted Historically

– Due Diligence September 2017

The Company completed a detailed technical due diligence investigation on the Kanuka Lithium Project in September 2017.

Mr James Sullivan, Force’s Head of Exploration, and the Company’s two local geologists spent approx. 7 days at Kanuka and undertook mapping and sampling.

Mapping within the area established the presence of significant occurrences of pegmatite exposures, which had had been exposed by the current and historical mining activity. In addition, a number of pegmatites were identified at surface.

Continuous pegmatite exposures were identified extending in excess of 3km on a NE-SW trend, and in places in excess of over 200m wide. The pegmatites identified appeared open in all directions and are considered to extend for possibly up to several kilometres along the NE-SW trend. Further exploration including detailed mapping, trenching, pitting and drilling is required to confirm whether the pegmatite is the result of a single intrusion or multiple intrusions.

As part of Technical Due Diligence, 25 random grab samples were taken from pegmatites outcropping in the license areas.

Assay Results

Assay results have been received with a number of samples returning high grade lithium mineralization. In total, five grab samples returned assays better than 0.4% Li2O as detailed below:

below:
								ME-MS61
Tenement	Sample No	UTM_E	UTM_N	Locality	Sample Type	Orientation	Lithology	(Li2O %)
PR4100/PE13082	A2501	541257	9165944	Kanuka	rockchip	Random	Pegmatite	0.45
PR4100/PE13082	A2502	541269	9165833	Kanuka	rockchip	Random	Pegmatite	1.62
PR4100/PE13082	A2504	540959	9165840	Kanuka	rockchip	Random	Pegmatite	1.86
PR4100/PE13082	A2505	541850	9166122	Kanuka	rockchip	Random	Pegmatite	1.93
PR4100/PE13082	A2519	543387	9165359	Kanuka	rockchip	Random	Pegmatite	2.12

Table 4: Select assay results for rock chip samples at the Kanuka Lithium Project Joint Venture

The assay results are considered entirely consistent with weathered pegmatites and are indicative of a well mineralised lithium system. They further confirm the presence of high grade lithium mineralisation.

The results show in a broad sense, that the lithium mineralisation identified on the Kanuka Lithium Project is observed to be preferentially hosted within a near surface and very oxidised pegmatite with an LCT affinity. The strongest mineralisation is frequently observed within or near the contacts between large quartz rich and quartz-albite zones.

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These observations and characteristics are typical of LCT type pegmatite deposits and consistent with recent descriptions of the Manono and Kitotolo deposits located immediately to the north.

The Company’s Head of Exploration, Mr James Sullivan stated:

“The project area contains extensive pegmatites, both exposed at surface and exposed by recent and historical mining activities”

“The licenses, both a Mining and Exploration license, are in an excellent location. They are located very close to and just south of AVZ’s Manono Lithium Project and also to the east of our Kitotolo Lithium Project. This in particular allows us to focus our exploration activities and resources”

“The major lithium occurrences just to the north at Manono, were originally exposed by historic tin mining. We have that same situation here at Kanuka, where MMR have been mining the alluvial material, and we are able to see some substantial and quite significant pegmatite exposures”.

4. KANUKA SOUTH LITHIUM PROJECT – UNDER OPTION

Subsequent to the end of the quarter, the Company entered into an option to purchase 100% of the Kanuka South Lithium Project.

The agreement is subject to the satisfactory completion of legal and technical due diligence; which is currently underway.

4.1 Tenure and Location

The Kanuka South Lithium Project comprises granted Mining Permits PEPM 12388 and PEPM 12390. The Mining Permits are both currently in the process of being renewed for a further 5 years.

These licenses cover an area of approx. 260km[2] and are located 500 metres south of the Company’s Kanuka Lithium Production Project and extend 40kms to the south and south-west.

The proposed acquisition of the Kanuka South Lithium Project and the Kitotolo West Lithium Project, should they both proceed, will result in the Company having a land-holding of approx. 1,250 km[2 ] in the Kitotolo-Manono area and in close proximity to AVZ’s Manona Project. The Kitotolo-Manono area has been described as a ‘world-class’ lithium region.

In addition to the being just south of the Kanuka Lithium Production Project, the Kanuka South Lithium Project is located ~20km south of AVZ’s Manono Lithium Project, ~20km east of the Kitotolo Lithium Production Project and ~40km east of the Kitotolo West Lithium Project.

4.2 Access

Access to the license areas is from the same local roads used by the Company to access its existing joint venture lithium projects at Kanuka and at Kitotolo.

4.3 Historical Activity

Areas within the Kanuka South Lithium Project are currently the subject of artisanal mining activity which is focused on the, at and near surface, alluvial sand layers that host cassiterite and columbite (minerals that are typically coincidental with lithium mineralisation).

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4.3 Commentary

The Company believes that the proposed acquisition of a 100% interest in the Kanuka South Lithium Project to be highly strategic and significant given the opportunity it has to accelerate the development of the Kanuka Lithium Production Project with its joint venture partner MMR on the exposed lithium bearing pegmatites already identified in the existing mining areas.

Force’s Head of Exploration, Mr James Sullivan, said:

“The addition of the Kanuka South Mining Licenses to our lithium portfolio is another significant step by the Company. The area covers a significant geological domain with a regionally demonstrated mineral endowment for lithium bearing pegmatites deposits and is located just south and south west of our recently concluded Kanuka Lithium Production Project Joint Venture.”

"The Company has been undertaking detailed geological mapping and rock chip sampling on the Kanuka Lithium Production Project and will now immediately extend these activities onto the nearby Kanuka South licenses as part of the due diligence investigation and to identify exploration targets.”

"The exploration upside here at Kanuka South, in the immediate vicinity of the Kanuka Lithium Production Project, where we have already identified lithium bearing pegmatites, and elsewhere within the larger Kanuka South licence area is considered excellent.”

4.4 Key Commercial Terms

The Company has been assigned an option to acquire a 100% interest in the Kanuka South Lithium Project.

Exercise of the option is subject to satisfactory completion of due diligence to be undertaken within a 60-day period, execution of formal sale and purchase documentation and receipt of any regulatory approvals.

In the event the option is exercised Force will be required to pay the following consideration on each of the licenses to the license holder:

• a) US$125,000 on execution of all relevant sale and purchase documentation and associated agreements;

• b) US$125,000 on transfer of each of the Licenses to Force;

In addition, Force will be required to pay the following milestone-based share consideration to African Arch Capital (Mauritius) Ltd ( AAC ), who have assigned the option to Force.

• c) issue A$300,000 of ordinary shares in Force to AAC on execution of all relevant sale and purchase documentation and associated agreements; and

• d) issue US$450,000 worth of shares in Force to AAC on completion by Force of its initial exploration program confirming, amongst other things, the presence of lithium bearing mineralisation within the fresh pegmatites and the formal approval by the Force Board to commit to further exploration activities and resource definition drilling on the Kanuka South Lithium Project.

In consideration of the assignment of the option, Force has also reimbursed AAC US$30,000 for the option fee it paid to the license holder to acquire the option in the first instance.

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5. NSW Projects

As reported previously, the Company intends on focussing its efforts and financial resources predominantly on its DRC Lithium Projects and for this reason it has sought to attract parties interested in advancing its NSW projects via an earn-in, joint venture or sale opportunity, cash or share based.

Mt Adrah Gold Project

To this end the Company entered into an agreement to sell the Mt Adrah Gold Project on 16 March 2018. Pursuant to the terms of the agreement, Force is to receive consideration of up to $500,000 in cash and shares; comprising $250,000 in cash within 5 Business Days of satisfaction of certain conditions precedent plus a further $250,000 in shares, or $100,000 in cash plus options equal to 5% of the issued capital of the Purchasers or their nominees, upon completion of an initial public offering by one of the Purchasers.

Subsequent to the end of the quarter, on 16 April 2018, the Purchasers formally advised that they had completed their technical and legal due diligence and would proceed with the acquisition of the Mt Adrah Gold Project. Work is now focussed on satisfaction of the remaining condition precedent which requires a transfer of the tenements underlying the Mt Adrah Gold Project to the Purchasers.

Halls Peak Base Metals Project

The Company is in ongoing confidential discussion with a party in relation to its Halls Peak Base Metals Project. Those discussions are not yet at a stage where an agreement has been reached.

The Company will update shareholders if there are any significant developments.

6. Corporate

a. Cash at Bank

Cash at bank for the Company as at the end of the quarter was $3.486 million.

b. Options

From the start of the quarter to the date of this report, the Company has received funds for option conversions into shares totaling $391k, as follows:

Type	Expiry Date	Exercise Price	Number	Amount Received
Unlisted	30 June 2019	$0.032	11,749,999	$376,000
Unlisted	5 August 2019	$0.048	312,500	$15,000
			12,062,499	$391,000

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As at 30 April 2017, share options remaining on issue are as follows:

Type	Expiry Date	Exercise Price	Number	Amount Outstanding
Unlisted	30 June 2019	$0.032	26,416,662	$845,333
Unlisted	30 June 2019	$0.035	10,000,000	$350,000
Unlisted	5 August 2019	$0.048	937,500	$45,000
Unlisted	1 July 2020	$0.06	2,000,000	$120,000
unlisted	1 July2020	$0.08	2,000,000	$160,000
			41,354,162	$1,520,333

c. Annual General Meeting

The Company’s AGM is to be held at 11am on Friday, 25 May 2018.

For a copy of the Notice of Meeting please refer to ASX announcement of 26 April 2018.

d. Change of Office / Website Relaunched

During the quarter, Force together with its subsidiary companies moved their registered office and principal of business.

New contact details are as follows:

Telephone: +61 8 6462 1414

Facsimile: +61 8 6323 3347

Physical Address: Ground Floor, 20 Kings Park Road, West Perth, WA, 6005.

Mailing Address: PO Box 1024, West Leederville, WA 6007

e. Consideration Shares Issued pursuant to ASX Listing Rule 7.3.2 Waiver

The Company has received waivers from ASX Listing Rule 7.3.2 relating to its acquisition of each of the Kitotolo Lithium Project and its Kanuka Lithium Production Project, allowing the Company to issue shares in relation to the acquisitions in excess of 3 months after shareholder approval. A condition of the waivers is that the Company report a summary of the number of shares issued during the reporting period, and the number that remain to be issued.

In accordance with this requirement the Company advises the following:

Project Kitotolo Lithium Project Kanuka Lithium Project	Date of Waiver	Waiver Expiry Date	Number Issued During the Quarter	Number remaining to be Issued
	25 August 2017	4 October 2019	67,500,000	60,000,000
	27 April 2018	25 May2023	-	20,000,000
			67,500,000	80,000,000

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7. Schedule of Mineral Tenements as at 31 March 2018

				Interest	held by Force
Project	Status	Tenement	Location	at 31 March 2018	at 31 December 2017
Mt Adrah	Granted	EL8606	Australia	99.5%	99.5%
Mt Adrah	Granted	EL6372	Australia	99.5%	99.5%
Mt Adrah	Granted	EL7844	Australia	99.5%	99.5%
Halls Peak	Granted	EL4474	Australia	100%	100%
Halls Peak	Relinquished	EL5339	Australia	0%	100%
Halls Peak	Granted	EL7679	Australia	55%	55%
Rocky River / Uralla	Granted	EL6483	Australia	55%	55%
Rocky River / Uralla	Granted	EL7491	Australia	55%	55%
Kitotolo Lithium Project	Granted	PR12453	DRC	70%*	70%
Kitotolo Lithium Project	Granted	PE13247	DRC	70%*	70%
Kanuka Lithium Project	Granted	PR4100	DRC	51%*	0%

EL, PR – Exploration Licence

• PE – Mining Licence

• • Lithium rights only

Note: Tenement EL5339 (Halls Peak) was relinquished by the Company prior to renewal.

END

Contact:

Michael Fry

Company Secretary Force Commodities Limited Tel: +61 8 6462 1414

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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 on a full-time basis.

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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