CULLEN RESOURCES LIMITED — Interim / Quarterly Report 2019

Oct 18, 2018

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ABN 46 006 045 790

QUARTERLY REPORT for the period ended 30 September 2018

www.cullenresources.com.au ASX : CUL 19 October 2018

HIGHLIGHTS

Cullen Resources Limited (Cullen or the Company) has maintained its focus on 3 Key Projects and upgraded a second prospective area in Finland for future work as follows :

Wongan Hills, W.A. - base metals and gold

• Five clusters of bedrock conductors detected by the VTEM[TM] max survey at Wongan Hills (ASX: CUL 14 August 2018) over strike lengths of ~0.4 to 1.5km, coincident with significant CHI-3 geochemical index anomalies and define priority VHMS drill targets, of the “Golden Grove - type”.

• Agreed terms for access and compensation with the key private landowner to allow for exploration over the next three years.

• First-pass air core drill traversing planned (subject to rig availability and signing of compensation agreement) to commence in Dec. 2018/Jan. 2019.

Mt Eureka, W.A. - gold and nickel sulphides

• Received programme of work (POW) approvals and extensions to allow aircore drilling in November (subject to rig availability) to test targets in the Irwin Bore area (~3-4km north of the Camelwood nickel discovery of Rox Resources Limited, ASX:RXL) and the Southern SE (previously undrilled), Eureka NW and Graf’s Find gold prospect areas.

Finland : cobalt-copper-gold

• Field reviews and prospecting were completed in September by Dr. Ringrose and Finland-based consulting geologists with conclusions as follows:

• Two portions of the Korenkyla Reservation were prioritised for future cobalt-copper-gold exploration.

• The geological setting of the Vesikko Reservation , located in the SW part of the Central Lapland Greenstone Belt in Northern Finland is similar to that of the Aamurusko high-grade gold discovery in the region (Aurion Resources Ltd, www.aurionresources.com).

REGISTERED OFFICE : Unit 4, 7 Hardy Street, South Perth WA 6151 Telephone : 089 474 5511; FAX : 089 474 5588 Contact : Dr. Chris Ringrose, Managing Director: email: cringrose@cullenresources.com.au

Cullen Resources Limited Quarterly Report for the period ending 30 September 2018

Corporate

The Company’s AGM will be held on 23 October, 2018 in Sydney (11a.m. at Regus, Level 4, Australia Square Plaza, 95 Pitt Street) at which a resolution to consolidate the Company’s stock will be put. If passed, this proposal will: reduce the large number of shares on issue (due to the history of equity-based capital raisings); bring the capital structure more in line with peer exploration companies; and, attain a share price level which may be more attractive to investors. It should be noted that the proposed consolidation will have no material effect on the percentage interest of any individual shareholder.

1. WONGAN HILLS, E70/4882 and ELA’s 70/5162 and 5201, ~180 km northeast of Perth, base metals and gold project (Cullen 90% - Tregor Pty Ltd 10%)

E70/4882 near the wheatbelt town of Wongan Hills covers geochemical anomalies in laterite within an Archaean greenstone belt with known Cu-Au mineralisation that, in Cullen’s opinion, resembles the geochemical signature in laterite on the Golden Grove Volcanic-Hosted Massive Sulphide (VHMS) deposit. Compilation of Cullen’s and historical exploration data as reported previously (ASX: CUL - 5 July 2017; 24 April 2018; 3 May 2018; 18 July 2018; and 14 August 2018) has highlighted:

• Several targets now defined by significant, coincident geochemical anomalies and interpreted bedrock conductors;

• abundant iron oxides at the surface indicating a likely sulphide source and probably a range of mineralisation styles;

• compelling laterite geochemistry with some similarities to that of the 50Mt Golden Grove VHMS system (as shown by CHI - 3 geochemical index e.g.);

• a significant tin (Sn) anomaly in laterite with a maximum assay of 117 ppm (compared to 95 ppm in laterite at Gossan Hill, Golden Grove: see Smith, R.E., and Perdrix, J.L., 1983) and open to north-north-west;

• +3km historical “Louise” Au-Ag-Cu soil anomaly (MMI and BLEG) adjacent to this laterite anomaly and supported by Cullen MMI sample assays - but with no previous drilling; and,

• none of the geochemical anomalies with interpreted bedrock conductors has been the target of any previous drilling.

Reference : Smith, R.E., and Perdrix, J.L., 1983. Pisolitic laterite geochemistry in the Golden Grove, Massive Sulphide District, Western Australia, 18, 131-164.

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Cullen Resources Limited Quarterly Report for the period ending 30 September 2018

2. MT EUREKA PROJECT, ~140km east of Wiluna - gold and nickel (Cullen 100%)

The project area covers a north-south trending greenstone belt, straddling the boundary between the Burtville and Kurnapli terranes of the Eastern Goldfields Superterrane and includes a number of gold and nickel sulphide prospects for further evaluation. Cullen has a robust, project-wide, bedrock interpretation map compiled from historical drilling and its own geophysical survey data (aeromagnetics and VTEM) which serves as the guide for modelling gold and nickel sulphide mineralisation targets. Soil sampling programmes have enhanced the priorities for further drilling programmes.

Gold mineralisation discovered to date is localised by a set of major fault zones (or Breaks) as evidenced by the distribution of >1.0 g/t Au in historical drilling (and not merely a reflection of the previous focus of these drilling programmes). These structures and gold zones are also coincident with unconformities between sediments and the mafic-ultramafic core to the greenstone belt - cf. Taipan and Eureka NW prospects. Such controls to gold mineralisation are evident in other greenstone belts in the North Eastern Goldfields of W.A. (such as Yamarna), and elsewhere in Archaean granite-greenstone terranes (see Bleeker, W., 2015). Further drilling to “flesh-out” known gold mineralisation at the known prospects in the Mt Eureka project: along strike, at depth, and down plunge, is clearly warranted.

An air-core drilling programme of ~5000m has been readied for the current Quarter, subject to rig availability, to test: stratigraphy and geochemical anomalies around VTEM anomalies within E53/1637 for nickel sulphides; and the Southern SE (previously undrilled), Eureka NW , and Graf’s Find gold prospects (Fig.2).

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Fig. 1 Regional Setting

Reference : Bleeker, W. 2015, Synorogenic gold mineralisation in granite-greeenstone terranes : the deep connection between extension, major faults, synorogenic clastic basins, magmatism, thrust inversion, and long-term preservation, In , Targeted Geoscience Initiative 4 : Contributions to the Understanding of Precambrian Lode Gold Deposits and Implications for Exploration, (ed.) B Dubé and P. Mercier –Langevin; Geological Survey of Canada, open File 7852, p.25-47

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Cullen Resources Limited Quarterly Report for the period ending 30 September 2018

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Fig.2

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Cullen Resources Limited Quarterly Report for the period ending 30 September 2018

3. FINLAND – cobalt, zinc, gold, copper

Cullen’s “Korvenkyla” Reservation comprises ~1000km [2] in central Finland (registered in mid-December 2017 and valid for two years) surrounding a cobalt prospect under investigation by European Cobalt (ASX: EUC). In Cullen’s opinion, this Reservation is prospective for cobalt, gold and/or zinc in volcanichosted massive sulphide-type (VHMS) deposits, shear zones, and veins. The regional geology and the position of known gold prospects, suggests prospectivity in shear zones along strike, south of European Cobalt’s Jouhineva prospect. The next steps will involve: a review of existing drilling data (percussion and diamond core held by the Geological Survey of Finland); a more detailed review of till and boulder data; and a review of geophysical data.

Cullen’s “Vesikko” Reservation comprises ~80km [2] in the south-western corner of the Central Lapland Greenstone Belt (CLGB) of northern Finland. Field review and available maps (to a scale of 1:100,000), highlight the occurrence of albitised conglomerates of the Kumpu Group - host stratigraphy for the significant mineralisation at “Aamurusko”, a recent high-grade gold discovery of Aurion Resources limited, located ~ 50km to the east along strike on a major shear zone system (see: www.aurionresources.com). The Kumpu Group rocks at Vesikko include: quartzites and conglomerates, with clasts of highly altered: mafic, quartzite and granite, and vein quartz. The next steps will comprise compilation of available geochemical and geophysical data, thought to be limited, with plans for geochemical surveying in the northern summer.

Typical, boulder-strewn forest floor of the Vesikko area

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Cullen Resources Limited Quarterly Report for the period ending 30 September 2018

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Multiple types of clasts including: conglomerate, granite, vein quartz and mafics, in Kumpu Group conglomerates at Vesikko.

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Cullen Resources Limited Quarterly Report for the period ending 30 September 2018

OTHER INFORMATION

Cullen has a 1% F.O.B. royalty on any iron ore production from the following tenements – E08/1135, E08/1330, E08/1341, E08/1292, ML08/481, and ML08/482 (former Mt Stuart Iron Ore Joint Venture – Baosteel/Aurizon/Posco/AMCI) and will receive $1M cash upon any Final Investment Decision. The Catho Well Channel Iron Deposit (CID) has a published in situ Mineral Resources estimate of 161Mt @ 54.40% Fe (ML 08/481) as announced by Cullen to the ASX – 10 March 2015.

Cullen has a 1.5% F.O.B. royalty up to 15 Mt of iron ore production from the Wyloo project tenements, part of Fortescue’s proposed Western Hub/Eliwana project, and will receive $900,000 cash if and when a decision is made to commence mining on a commercial basis – E47/1649, 1650, ML 47/1488-1490, and ML 08/502.

KILLALOE JV, NORSEMAN, W.A.: Cullen 20% - free carried to DTM

On 20 August 2018, JV Manager Matsa Resources Limited announced the sale of its 80% interest in the Killaloe JV to Liontown Resources Limited (ASX: LTR). By this purchase, Liontown has expanded its footprint beyond their Buldania lithium pegmatite discovery, which is located just south east of the southern margin of E63/1018 of the Killaloe JV.

Cullen retains its 20% free carried interest in the JV and is thus partnered with an experienced and committed lithium explorer.

SHARE CAPITAL INFORMATION

The issued capital of the company at 30 September 2018:

• 2,598,560,131 fully paid ordinary shares

• 20m unlisted options expiring 30 November 2020

Substantial shareholders are:

• Perth Capital, Wythenshawe Pty Ltd and Associates - 22.54%.

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Cullen Resources Limited Quarterly Report for the period ending 30 September 2018

ATTRIBUTION: Competent Person Statement

The information in this report that relates to exploration activities is based on information compiled by Dr. Chris Ringrose, Managing Director, Cullen Resources Limited who is a Member of the Australasian Institute of Mining and Metallurgy. Dr. Ringrose is a full-time employee of Cullen Resources Limited. He has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration, and to the activity which has been undertaken, to qualify as a Competent Person as defined by the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr. Ringrose consents to the report being issued in the form and context in which it appears.

Information in this report may also reflect past exploration results, and Cullen’s assessment of exploration completed by past explorers, which has not been updated to comply with the JORC 2012 Code. The Company confirms it is not aware of any new information or data which materially affects the information included in this announcement.

FORWARD - LOOKING STATEMENTS

This document may contain certain forward-looking statements which have not been based solely on historical facts but rather on Cullen's expectations about future events and on a number of assumptions which are subject to significant risks, uncertainties and contingencies many of which are outside the control of Cullen and its directors, officers and advisers. Forward-looking statements include, but are not necessarily limited to, statements concerning Cullen’s planned exploration program, strategies and objectives of management, anticipated dates and expected costs or outputs. When used in this document, words such as “could”, “plan”, “estimate” “expect”, “intend”, “may”, “potential”, “should” and similar expressions are forward-looking statements. Due care and attention has been taken in the preparation of this document and although Cullen believes that its expectations reflected in any forward looking statements made in this document are reasonable, no assurance can be given that actual results will be consistent with these forward-looking statements. This document should not be relied upon as providing any recommendation or forecast by Cullen or its directors, officers or advisers. To the fullest extent permitted by law, no liability, however arising, will be accepted by Cullen or its directors, officers or advisers, as a result of any reliance upon any forward looking statement contained in this document.

ABOUT CULLEN : Cullen is a Perth-based minerals explorer with a multi-commodity portfolio including projects managed through a number of JVs with key partners (Fortescue, Hannans, and Matsa) and a number of projects in its own right. The Company’s strategy is to identify and build targets based on data compilation, field reconnaissance and early-stage exploration, and to pursue further testing of targets itself or farm-out opportunities to larger companies. Projects are sought for most commodities mainly in Australia but with selected consideration of overseas opportunities.

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Cullen Resources Limited Quarterly Report for the period ending 30 September 2018

SCHEDULE OF TENEMENTS (as at 30 September 2018)

REGION/ PROJECT	TENEMENTS	TENEMENT APPLICATIONS	CULLEN INTEREST	COMMENTS
WESTERN AUSTRALIA
PILBARA
Wyloo North	E47/3342, 3743		100%
Paraburdoo JV	E52/1667		100%	Fortescue can earn up to 80% of iron ore rights; Cullen 100% other mineral rights
North Pilbara		ELA 45/4924	100%
NE GOLDFIELDS- Mt Eureka
Gunbarrel	E53/1299,1300+/ * 1893, 1957 -1961		100%	+2.5% NPI Royalty to Pegasus on Cullen's interest (parts of E1299); *1.5% NSR Royalty to Aurora (other parts of E1299, E1300, E1893, E1957 and E1961).
Irwin Well	E53/1637		100%
Irwin Bore	E53/1209		100%
MURCHISON	E20/714	ELA 59/2305	100%
WONGAN HILLS	E70/4882	ELA’s 70/5162, 5201	90%
GREENBUSHES		ELA 70/4802
EASTERN GOLDFIELDS
Killaloe Bromus	E63/1018, E63/1199	ELA 63/1894	20%	Matsa Resources Limited 80% : sale of Matsa’s interest to Liontown Resources Limited announced, 20 August 2018 – Cullen retains 20% FCI to DTM.
FORRESTANIA
Forrestania JV (Gold rights only)	M77/544		20%*	* Sale process completed - Hannans Ltd 80%*
FINLAND
	Vesikko Anges,Sulkava Korvenkylä		100% - Registered Reservations
TENEMENTS RELINQUISHED, SOLDand APPLICATIONS WITHDRAWN DURING THEQUARTER
	E45/4626, E09/2179	ELA 70/5066

REGISTERED OFFICE : Unit 4, 7 Hardy Street, South Perth WA 6151. Telephone: +61 8 9474 5511 Facsimile:+61 8 9474 5588 CONTACT: Dr. Chris Ringrose, Managing Director. E-mail : cringrose@cullenresources.com.au

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