DGR GLOBAL LIMITED — Interim / Quarterly Report 2012

Jul 30, 2012

A C T I V I T I E S R E P O R T F O R T H E J U N E 2 0 1 2 Q U A R T E R

QUARTERLY REPORT

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Quarter Highlights

DGR Global Ltd | ASX : DGR

• Oversubscribed AUD75.0 M IPO and ASX listing of Armour Energy Limited on 26 April 2012

• Largest oil and gas IPO in Australia for ten years

• London based new opportunities group targeting bulk commodities in Africa and the Middle East

• Armour Energy Ltd | ASX: AJQ – DGR 25%

• Successful IPO and ASX listing

• Drilling of Morey’s 1 and Holdgate 1 wells in the D’Aguilar Gold holds Otway and Gippsland Basin, Vic in Lakes Oil NL farm-in35.2 million shares

• ▪ Drilling of Cow Lagoon 1 well in the NT delivers first representing 15.6% gas resources of Solomon Gold plc.

• Mt Isa Metals Ltd | ASX: MET – DGR 30.6%

• Outstanding new drill assay results at the Nabanga gold prospect extend the high grade mineralisation to 200 metres depth over a 2.3 km strike length.

• Nabanga maiden resource estimate to be released in August

SolGold plc | LSE: SOLG – DGR 9.6%

• Name change to SolGold (formerly Solomon Gold) to reflect expanded strategy of global search for world class gold and gold-copper resources

• Letter of Intent signed to acquire 85% of the Cascabel gold-copper-silver porphyry property in northern Ecuador

• Further drilling at Rannes reveals significant mineralisation beyond the current resource block model

Navaho Gold Ltd | ASX: NVG – DGR 29%

• Alliance formed to explore for Carlin-style gold deposits over substantial ground position in New

Mexico, USA. Significant potential for first mover advantage in a new gold province

• Navaho moves to 51% earned interest in New Mexico projects with initial rock chip sampling returning highly anomalous gold and silver values from several locations

AusNiCo Ltd | ASX: ANW – DGR 41.5%

• Identification and review of opportunities for diversification and growth

• Aggressive cost reductions, including amalgamation of many Black Snake tenements into a single EPM

IronRidge Resources | 56.5% DGR owned

• Grant of two iron ore exploration areas in Gabon, West Africa

• Initial field program commenced at Belinga Sud, immediately south of the Belinga iron ore deposits (CMEC/Gabonese Government)

Archer Resources Ltd | 67% DGR owned

• Further research upgrades the coal exploration potential of exploration licence areas in the Arckaringa Basin of South Australia (held by wholly owned subsidiary AimFire Energy Pty Ltd)

Pinnacle Gold Pty Ltd | 94% DGR owned

• Eight (8) Exploration Licences granted in NSW over potential new gold and silver province

• Fifty (50) kilometres of known historic gold workings with no recorded previous drilling

• Landowner access agreements finalised on first areas and initial field exploration commenced

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DGR Global Creates Resource Companies

During the quarter DGR Global strongly advanced its objective to become a diversified global resource project generator and investment company.

DGR Global generates its own large scale resource exploration projects directly through the skills and experience of its accomplished team of explorationists. Most resource investment companies purchase their investment stakes at a high cost with restricted scope and low diversity and it is this important difference that gives DGR Global its strong competitive edge.

Many exploration companies tend to prematurely focus on the definition of a restricted resource and/or development without the scope for world class discoveries. In contrast, DGR Global’s philosophy is to secure provincial tenure positions, prospective for commodities with a high demand growth profile, which attract globally diverse capital funds. D’Aguilar Gold holds The company adopts a lateral and creative approach in the 35.2 million shares identification of both the commodity and exploration target. representing 15.6%

of Solomon Gold plc. DGR Global exploration projects tend to be very large, targeting new provinces with the potential to make worldclass discoveries. The exploration concepts are often novel. While increased metal prices and advances in technology

can turn former sub economic deposits into viable projects, DGR Global Projects frequently emerge from detailed reassessment and reinterpretation of large databases with a new perspective. In the past, DGR Global Directors and Managers have applied new exploration models to extensive tenement areas which have contributed to the identification of new mineral provinces and the discovery of nationally significant resources.

DGR Global’s strategy to independently finance, manage and list its key assets on recognised stock exchanges is designed to deliver negotiability for its key assets, provide less dilutive funding of forward exploration programs and deliver expanded and focussed Project Management Teams independent of DGR Global.

DGR Global holds key equity positions in its subsidiary companies after listing. As shown in the DGR Global Group Corporate Structure (see fig 1), at 17 July DGR Global holds 25% ASX listed Armour Energy Ltd (ASX : AJQ) 9.6% AIM listed SolGold Plc (LSE: SOLG), 30.6% ASX listed Mt Isa Metals Ltd (ASX: MET), 41.5% AusNiCo Ltd (ASX: ANW) and 29% Navaho Gold Ltd (ASX: NVG). Table 1 and the following figures 2 and 3 demonstrate how DGR Global continues to build value for shareholders.

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Fig 1: DGR Global Corporate Structure as at 17 July 2012 re 5

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DGR Global Creates Resource Companies

Investment	Listed Code	Number of Shares	Number of Options / Warrants	Market Value	Closing Share Price	Exchange
Lions Gate Metals Inc.1	TSX-V: LGM	300,000	150,000	128,941	0.45	0.95512
SolGoldplc	LSE-AIM: SOLG	33,274,477	-	1,573,152	0.0313	1.51048
Mt. Isa Metals Ltd	ASX: MET	50,000,000	-	19,000,000	0.38	1.00000
Navaho Gold Ltd2	ASX: NVG	27,052,267	17,428,667	676,307	0.025	1.00000
AusNiCo Ltd3	ASX: ANW	59,776,500	20,000,000	1,315,083	0.022	1.00000
Armour EnergyLtd4	ASX: AJQ	75,050,000	18,837,500	15,951,875	0.20	0.05
Archer Resources Ltd5		40,000,000	7,500,000	4,000,000	0.10
IronRidge Resources Ltd		46,600,000		2,330,000	0.05
Pinnacle Gold PtyLtd		50,000,000		2,500,000	0.05
Total market value of DGR Global assets(excl cash) 47,475,357
Total DGR Global shares on issue 324,202,760 0.063
~~D~~’~~Aguilar Gold holds~~ Value attributable to each DGR share 0.146
35.2 million shares representing 15.6% of Solomon Gold plc. DGR Market Cap Total Value of DGR Shareholding Assets

Table 1: Current portfolio of Assets held by DGR and market valuation of listed entities

*Market value represents the market quoted price for listed investments at 25 July 2012 or the price at which the last round of financing was raised for unquoted investments. No value has been attributed to development prospects. 1 LionsGate Metals Inc (‘LionsGate’) warrants allow the company to take up one ordinary share in LionsGate to an exercise price of C$1.50. The warrants are fully vested and expire on 10 March 2013.

• 2 Navaho Gold Ltd (“NVG”) options allow the Company to take up one ordinary share in NVG at an exercise price of $0.20. The options are fully vested and expire on 31 December 2013.

• 3 AusNiCo Ltd (“ANW”) options allow the Company to take up one ordinary share in ANW at an exercise price of $0.30. The options are fully vested and expire on 19 November 2013.

• 4 Armour Energy Ltd (“Armour”) options allow the Company to take up one ordinary share in Armour at an exercise price of $0.50. The options are fully vested and expire on 31 August 2014.

• 5 Archer Resources Ltd (“Archer”) options allow the Company to take up one ordinary share in Archer at an exercise price of $0.20. The options are fully vested and expire on 31 December 2014.

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Fig 3:DGR Global resource company creator R ep or t fo r Jun e S ep t 2 0 11 Qu ar t er | Pa g e 53 R epo rt fo r Jun e 2 01 2 Q u art er | P a ge 3

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New Shale Gas Province in Northern Australia

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During the quarter Armour completed drilling the Moreys 1
Well on Lakes Oil NL PEP169 in the Otway Basin, Victoria.
Armour has earned 51% ownership and assumes
operatorship of PEP169. The Moreys Prospect is adjacent to
numerous gas fields operated by Origin Energy and proximal
to existing pipeline infrastructure.
Armour also drilled the Holdgate 1 Well on Lakes Oil PEP166
within the onshore Gippsland Basin, Victoria thereby earning
25% ownership of PEP166. Armour will take it’s interest in
PEP166 to 51% by the drilling of a second well. Both wells
are on anticline structures targeting large unconventional
gas reserves.
D’Aguilar Gold holds
35.2 million shares
representing 15.6% Fig 5: Location Map – Armour Energy’s
ATP 1107 and ATP 1087 in Queensland
Fig 4: Picture of gas burning from the end of the of Solomon Gold plc.
8” diameter blooie pipeline, venting Armour
Energy’s Cow Lagoon 1 well
Armour Energy Limited (DGR: 75 million shares:
25%) has encountered a gas show from its first
well (Cow Lagoon 1) in its exploration and
drilling program in the MacArthur Basin region
of its granted Northern Territory tenements.
Cow Lagoon 1 encountered gas from
indeterminate zones in the Reward Dolomite
between 342 and 540 metres depth. The gas
show was encountered during air mist drilling
in a tight calcite cemented dolomitic shale with
poor porosity and permeability. The flare shown
in figure 4 above is driven from the well by the
reintroduction of compressed air into the well
after the connection of an additional pipe into
the drill string during drilling. The drilling of Cow
Lagoon 1 allowed Armour Energy to collect cores
through the Barney Creek Shale and Coxco
Dolomite, in order to test for thermal maturity,
organic carbon content, liquids and gas content.
Armour is also the successful tenderer for
Queensland permit ATP 1107 which lies
immediately south of, and adjacent to, Armour
Energy’s existing Queensland tenement position
ATP 1087 (refer fig 5). This effectively doubles
Armour Energy’s Queensland ground position
from approximately 1.8 million acres to
3.6 million acres, increasing its exposure to the
South Nicholson Basin and in particular the Lawn
Hill Formation within the underlying Isa Super
Basin.
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Iron, Titanium and Bauxite

IronRidge Resources Ltd (IRR), has been granted two Autorisation de Prospection (Authority to Prospect) in Gabon: Belinga Sud and Tchibanga, representing the culmination of seven months’ work and providing IronRidge with an exciting new strategic direction in iron ore exploration. The location of the two tenements, and proximity to known Iron Ore deposits, is shown in figure 8.

Gabon is located on the central west coast of Africa, a region becoming increasingly recognised for iron ore prospectivity and host to numerous projects including Mbalam/Nabeba (Sundance ASX: SDL), Mayoko Moussondji (Equatorial Resources ASX: EQX) and Kango North (Apollo Minerals ASX: AON). Belinga Sud is located in eastern Gabon and Tchibanga is located in the south west.

The 3,027km² Belinga Sud Autorisation de Prospection is strategically located immediately south of the concession hosting the Belinga Iron Ore Deposits, which contain an estimated combined resource of 860Mt @ 63% Fe[1] .

Proof of concept is demonstrated by a number of iron occurrences at a similar stratigraphic level along the western limb of the syncline. The tenure is less than 10km from the coastline and the port of Mayumba, and as such even a modest resource would represent a project of significant value to IronRidge.

The projects were generated by DGR Global’s New Opportunities Group based in London, UK. IronRidge will be presenting the projects and management team to the market in further detail in August 2012, following an initial field appraisal of Belinga Sud.

IronRidge has commenced a preliminary exploration program at Belinga Sud and will follow-up with a program at Tchibanga later in 2012.

Fig 8: IronRidge Project Location in Gabon

The Belinga Sud Autorisation de Prospection contains a large tract of the greenstone belt that hosts the rich iron deposits less than 20km to the north. Within this area there are mapped iron formations and several documented iron occurrences. Geophysical data highlights strong magnetic anomalies in the area and in particular a significant southern extension where an outlying greenstone belt is considered to be highly prospective for additional iron formations over a strike length in excess of 35km. The Belinga Sud Autorisation de Prospection is within 85km of the existing TransGabonese rail route, currently used for bulk haulage from the southern town of Franceville to the Port at Owendo, 15km south of the capital, Libreville.

The 2,937km² Tchibanga Autorisation de Prospection is situated within the western limb of the Neoproterozoic Nyanga syncline, and incorporates both a significant magnetic anomaly and two iron occurrences. Outside of the ‘traditional’ greenstone iron formations, this target is founded on a different exploration concept – that of iron-ore development in younger iron formations underlain by carbonates. 1. Mining Journal, ’BHP looks set to bag Belinga Iron Project’ (Feb 10, 2012),Page 10

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Porphyry Copper-Gold-Silver-Molybdenum

Archer is focussed on the discovery and development of porphyry copper gold silver molybdenum deposits in south east Queensland and after an AUD2.0M seed raising is a 67% owned subsidiary of DGR Global Limited. Archer has 7 key project areas in eastern Queensland- Peenam, Mt Abbott, Gayndah and Calgoa (which already host encouraging drill intersections) and Great Blackall, Pinnacles and Anduramba. Location of these exploration tenements is shown in figure 6.

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DGR Global has also transferred two ELs in the Central Lachlan Fold Belt near Bathurst to Archer. These contain an exciting gold-silver Project at Caloola which already has an historic (non-JORC) gold occurrence of 235,000 tonnes @ 2.5g/t Au. The deepest historic drill hole CP10 stopped in D’Aguilar Gold holds mineralisation at 96m, later assaying 14m of 3.86g/t Au 35.2 million shares from 82 metres.

representing 15.6% Between December 2011 and February 2012, Archer Resources’ subsidiary AimFire Energy Pty Ltd applied for 7 of Solomon Gold plc. tenement applications in the Permian coal-bearing Arckaringa Basin of South Australia. This project is located 75 km NW of Coober Pedy, or 500 km NW of Port Augusta, on the Adelaide to Darwin Rail Link.

The project area has a significant presence of Permian sub-bituminous, high energy, low ash, high moisture thermal black coal. The applications contain numerous coal intercepts in historical drill holes (e.g. 14m net coal thickness, from 186-200 m depth on ELA 2011/00297).

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Fig 6: Map Showing location of Archer Resources Tenements

Archer believes there is potential for significant coal resource surrounding the 14m seam on ELA 2011/00297. Gravity images show applications are within prospective (under explored) basins (see fig 7). Immediately next to these applications, Altona Energy (LSE: ANR) and Chinese partners CNOOC are currently undertaking an AUD40.0M Bankable Feasibility Study to develop an open-cut coal mining operation and a coal-to-liquids plant to produce 10million barrels of distillate pa for domestic market and export. Altona claim that this basin is “one of the world’s largest untapped energy banks”. Altona report a non-JORC mineralised occurrence of 7.8 billion tonnes, with 1.287 billion tonnes in JORC status[1] . 1. Altona Energy plc SAREIC Presentation (May 2011),Page 11

Fig 7 AimFire Energy P/L EL Applications in South Australia

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Gold, Silver and Copper

DGR geoscientists have identified an underexplored area of NSW which exhibits great similarities to previous discoveries by former subsidiary Central Minerals Pty Ltd (now part of SolGold plc) at Rannes in Qld, and the North Bowen project area held by associated company Navaho Gold Ltd (ASX: NVG) as shown in figure 10. All three areas (Central, Navaho and Pinnacle) flank the eastern side of the Bowen Sydney Basin, exhibit strong structure with aligned magnetic intrusives and feature calcareous and tuffaceous host rocks.

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DGR Global subsidiary Pinnacle Gold has now secured a substantial exploration ground position west of the Peel Fault and north of Manilla, NSW. Eight (8) Exploration Licence Applications covering more than 2,400km[2] as shown in figure 11 have been granted. Landowner access agreements have been finalized on the first of the granted tenements and initial field work has recently commenced on EL 7859. Exploration activity on Pinnacle Gold tenements will initially focus on a 50km long structure dotted with historical gold workings extending south east from Barraba. Records of the historic 19[th] century workings in the area, eg. from Readings Reef to Tea Tree Creek, shown in figure 11 , indicate high grades of visible gold in near surface work on multiple reefs. No previous drilling on these structures has been revealed in research to date, but a report from 1983 indicates good gold values in sheared wall rock associated with one reef.

Fig 10: Pinnacle Gold exploration tenements on simplified geology Fig 11: Tea Tree Creek—Readings Reef Area EL7859

Fig 9: Significant gold occurrences associated with Permo-Carboniferous Belts and the Sydney Bowen Basin .

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A C T I V I T I E S R E P O R T F O R T H E J U N E 2 0 1 2 Q U A R T E R

QUARTERLY REPORT

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Corporate Information

DIRECTORS

William Stubbs (Chairman) Nicholas Mather (Managing Director) Brian Moller Vincent Mascolo

ISSUED CAPITAL

At 30 June 2012, DGR Global Ltd had the following securities on issue:

▪ 324,202,760 ordinary shares

COMPANY SECRETARY

Karl Schlobohm

▪ 16 million (unlisted) 28 cent options expiring 29/11/13

EXPLORATION MANAGER

Neil Wilkins D’Aguilar Gold holds GENERAL MANAGER 35.2 million shares Greg Runge representing 15.6% REGISTERED OFFICE AND HEAD OFFICE of Solomon Gold plc.

DGR Global Limited Level 13, 145 Eagle Street Brisbane QLD 4000 Phone:+ 61 (0)7 3303 0680 Fax:+ 61 (0)7 3303 0681 Website: www.dgrglobal.com.au

AUSTRALIAN STOCK EXCHANGE (“ASX”) ASX Code: DGR (Ordinary shares)

AUSTRALIAN BUSINESS NUMBER

ABN 67 052 354 837

INTERNET ADDRESS

All Company announcements, reports and presentations are posted on our website www.dgrglobal.com.au

If you would like to receive news releases by email, please send an email to info@dgrglobal.com.au with the subject “email alerts” or register your details on our website by clicking “Contact Us” and entering your details.

▪ 12 million (unlisted) 28 cent options expiring 28/02/14

• 300,000 (unlisted) 28 cents options expiring 28/02/15

▪ 5 million (unlisted) 28 cent options expiring 24/04/15

SHAREHOLDING ENQUIRIES

Link Market Services Limited manages DGR Global Ltd’s share registry.

If you would like to monitor your shareholding online, you can do so by visiting Link Market Services website: www.linkmarketservices.com.au and follow the instructions.

For issuer-sponsored shareholders, if you change address, or if you have any other queries regarding the details of your shareholding, please contact the Company’s share registry directly: Link Market Services Limited Locked Bag A14 SYDNEY Phone: 1300 554 474

Competent Persons Statement

The information in this report that relates to Exploration Results is based on information complied by Nicholas Mather B.Sc (Hons) Geol., who is a Member of the Australian Institute of Mining and Metallurgy. Mr Mather is employed by Samuel Holdings Pty Ltd which provides certain consultancy services including the provision of Mr Mather as the Managing Director of DGR Global Ltd and a Director of its subsidiaries and associates.

Mr Mather has sufficient experience which is relevant to the style of mineralisation and type of deposit being reported and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2005 Edition of the ‘Australian Code for Reporting of Exploration Results, Minerals Resources and Ore Reserves’ (the JORC Code). Mr Mather has consented in writing to the inclusion in this report of the matters based on the information in the form and context in which it appears.

Figure 5

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