DGR GLOBAL LIMITED — Interim / Quarterly Report 2011

Jan 30, 2012

A C T I V I T I E S R E P O R T F O R T H E D E C E M B E R 2 0 1 1 Q U A R T E R

QUARTERLY REPORT

==> picture [188 x 64] intentionally omitted <==

Quarter Highlights

DGR Global

• London based new opportunities group established, targeting bulk commodities in Africa and Middle East.

• Rebranded D’Aguilar Gold to DGR Global reflecting company strategy to become world class resources company with global interests.

• Armour Energy Ltd | 50% DGR owned D’Aguilar Gold holds

• Key appointments to senior management team. 35.2 million shares ▪ Acquisition of strategic stake in Lakes Oil NL representing 15.6% (ASX: LKO) and farm-in on highly prospective of Solomon Gold plc. onshore Gippsland and Otway Tenements.

• Final preparations completed for fully underwritten IPO and ASX listing in 2012 .

Archer Resources Ltd | 67% DGR owned

• Wholly owned subsidiary AimFire Energy lodged applications for seven exploration licences in the Permian coal-bearing Arckaringa Basin of South Australia.

• IronRidge Resources | 68.5% DGR owned

• Mr Peter Williams appointed as CEO.

• Assay drilling results from Monogorilby confirm potentially economic grades and tonnage of TiO₂.

• from Coorada and Quaggy Prospects.

• ▪ Two iron ore prospecting applications lodged in Gabon, West Africa.

Solomon Gold plc (LSE: SOLG – DGR 11.7% )

• Mr Malcolm Norris appointed as CEO.

• Inferred mineral resource at Rannes, Qld increases to 25.5 Mt containing 486,935 oz gold and 13,014,292 oz silver (at 0.30 g/t cut-off)[1] .

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

• Further high grade gold intersections announced at Nabanga Project in Burkina Faso, West Africa.

• AusNiCo Ltd (ASX: ANW – DGR 41.5%)

• Completion of 1,287 metre (12 hole) RC drilling campaign to test geochemical and geophysical targets on 7 prospects in the Black Snake plateau region.

• Successful application for nickel exploration tenement in NW Tasmania

Navaho Gold Ltd (ASX: NVG – DGR 29%)

• Drilling programs completed at Rose Mine, Stevens Basin, Whitehorse Flats, and TAZ Projects, and underway at Utah Clipper.

• Encouraging nickel, copper and cobalt assays

==> picture [36 x 10] intentionally omitted <==

----- Start of picture text -----

Figure 5
----- End of picture text -----

R ep or t fo r Jun e S ep t 2 0 11 Qu ar t er | Pa g e 53

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 D’Aguilar Gold holds discoveries. In contrast, DGR Global’s philosophy is 35.2 million shares to secure provincial tenure positions, prospective representing 15.6% for commodities with a high demand growth profile, of Solomon Gold plc. which attract globally diverse capital funds. The company adopts a lateral and creative approach in the identification of both the commodity and exploration target.

DGR Global exploration projects tend to be very large, targeting new provinces with the potential to make world-class 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 31 January DGR Global holds 11.7% AIM listed Solomon Gold 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).

==> picture [520 x 315] intentionally omitted <==

----- Start of picture text -----

Figure 1
----- End of picture text -----

==> picture [36 x 10] intentionally omitted <==

----- Start of picture text -----

Figure 5
----- End of picture text -----

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 De c 2 01 1 Q u art er | P a ge 2

==> picture [251 x 114] intentionally omitted <==

New Shale Gas Province in Northern Australia

Armour Energy is DGR Global’s energy focussed subsidiary dedicated to the discovery and development of world class gas resources in an extensive new province in Northern Australia (Fig 2). Armour has over 130,000 km[2 ] under gas tenure application in the NT and Queensland (an area equivalent to the size of the United

Kingdom). DGR Global Figure 2 holds 50% of Armour Energy following an AUD14 M seed capital raising. Within the granted North-D’Aguilar Gold holds ern Territory Exploration35.2 million shares Licence arep re as Armour has senting 15.6% identified a core target of Solomon Gold plc. area located within and

adjacent to the fault bounded structure known as the Batten Trough (Fig 3). The target sediments are the thickened sections of the gas rich Barney Creek Shale which has scope to host up to 40TCF of gas. Previous exploration drilling for zinc encountered numerous shows of gas condensate, oil and bitumen.

The area is also prospective for large shale gas resources which are expected to be comparable to, or rival, shale gas resources contained within known shale gas basins in the USA. Shale gas development and production relies on the release of gas from artificially fractured low permeability gas bearing shales which are penetrated by radiating horizontal lateral holes drilled off a vertical centre well.

The target shales are “dry” (not aquifers) and do not interact with groundwater. Armour’s well depths are targeted at between 500 and 1500 metres within the project area.

On 5 December 2011 DGR Global announced that its gas subsidiary, Armour Energy, would acquire a strategic stake in ASX listed Lakes Oil NL (LKO); and this agreement has now been completed.

Under the agreement Armour Energy subscribed AUD2.25M to purchase 900 million shares in Lakes Oil at 0.25 cents per share representing a 13% interest in the Company. Armour Energy was also to be granted a right to maintain its interest in Lakes Oil through participation in any subsequent capital raisings by Lakes Oil.

In addition two Armour Energy Directors, will be appointed to the Lakes Oil Board of Directors. Lakes Oil has agreed to provide Armour Energy with farm-in rights and acquisition options over certain of its assets subject to the completion of satisfactory due diligence by Armour Energy, as follows:

==> picture [37 x 10] intentionally omitted <==

----- Start of picture text -----

Figure 3
----- End of picture text -----

▪ Right to earn 51% and assume operatorship of PEP169 in the Otway Basin in south western Victoria by drilling the Moreys Prospect with a AUD2.5M well targeting a P50 recoverable prospective resource of 46BCF gas in the Waarre Sandstone. The Moreys Prospect is adjacent to numerous gas fields operated by Origin Energy and proximal to existing pipeline infrastructure.

R ep or t fo r Jun e 2 0 11 Qu ar t er | Pa g e 3 R epo rt fo r De c 2 01 1 Q u art er | P a ge 3

==> picture [164 x 75] intentionally omitted <==

▪ Right to earn a 51% interest in PEP166 within the onshore Gippsland Basin, with a total expenditure of AUD9.0M over two years, targeting large unconventional gas reserves. Under the farm-in agreement Armour Energy will expend a planned AUD4.25M during year 1 of the agreement to drill the planned Holgate 1 Well on the Baragwanath Anticline along with a second cored hole on the Yallourn-Morwell Anticline to earn a 25% interest in PEP166. This will be followed by a commitment of AUD4.75M in year 2 of the agreement to complete the 51% interest and assume operatorship of PEP166

D’Aguilar Gold holds ▪ An option to acquire half of Lakes Oil’s interest in 35.2 million shares the Trifon and Gangell blocks within PRL2 and a representing 15.6% 25% interest in the balance of PRL 2 at any time in of Solomon Gold plc.

the next three years in consideration of payment of AUD30.0M. Option fees of AUD100,000, will be paid, on signing, thereafter AUD200,000 after year 1 and AUD300,000 after year 2 .

Figures 4 and 5 below show the location and extent of PEP166, PEP 169 and PRL2.

Armour Energy is pleased to acquire substantial interests in highly prospective gas and oil acreage in the onshore sectors in the Gippsland Basin, Australia’s most prolific oil and gas producing province.

The prospectivity offered by the onshore section of the Gippsland Basin has, to date, been poorly understood and Armour Energy looks forward to the investigation of this opportunity to add a second gas province to its portfolio.

Armour Energy’s program in the Lakes Oil project areas will commence at the end of March 2012 and provide early drilling activity prior to its proposed NT and Queensland shale and conventional gas exploration projects in the McArthur, South Nicholson and Isa Super Basin provinces.

Fig 4 Lakes Oil’s Otway & Gippsland Basin Interests (Lakes Oil 2011 Annual Report)

Fig 5 Lakes Oil’s PEP166 & PRL2 (Lakes Oil 2011 Annual Report) R ep or t fo r Jun e 2 0 11 Qu ar t er | Pa g e 3 R epo rt fo r De c 2 01 1 Q u art er | P a ge 4

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 6 key project areas in SE Qld - Peenam, Gayndah and Calgoa (which already host encouraging drill intersections) and Great Blackall, Pinnacles and Anduramba . Location of these exploration tenements is shown in Fig 6. 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 D’Aguilar Gold holds tonnes @ 2.5g/t Au. The deepest historic drill hole CP10 35.2 million shares stopped in mineralisation at 96m, later assaying 14m of representing 15.6% 3.86g/t Au from 82 metres.

==> picture [261 x 365] intentionally omitted <==

of Solomon Gold plc. In December 2011, Archer Resources’ subsidiary AimFire Energy Pty Ltd applied for 7 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.

As highlighted in Fig 7, the project area has a significant presence of sub-bituminous Permian black coal.

Fig 6: Map Showing location of Archer Resources Tenements

==> picture [332 x 329] intentionally omitted <==

The applications contain numerous coal intercepts in historical drill holes (e.g. 7.9m net coal thickness, from 131 m depth). Gravity images show applications are 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 CTL plant to produce 10 million 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.

WPG Resources’ Penrhyn clean coal project (352 Mt) also lies 80km to the south.

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

R ep or t fo r Jun e 2 0 11 Qu ar t er | Pa g e 3 R epo rt fo r De c 2 01 1 Q u art er | P a ge 5

==> picture [257 x 66] intentionally omitted <==

Iron, Titanium and Bauxite

==> picture [124 x 185] intentionally omitted <==

During the quarter DGR Global announced the appointment of Mr Peter Williams (pictured) as CEO of IronRidge Resources Limited. Peter has over 20 years experience in the resources sector, both in Australia and off-shore, across a range of commodities including base and precious metals, industrial minerals and bulk commodities. Most recently, Peter was Managing

Director of the Institutional Banking sector at the National Australia Bank.

Mr Williams started his career with Mount Isa Mines followed by operational and management roles at Mt Lyell and Norseman and subsequent to this worked in the finance sector (BankWest and ANZ), equity markets (Carmichael Capital Markets) and corporate advisory (Ernst & Young).

Monogorilby Titanium

The quarter saw the completion of a drilling program of 46 vertical holes (for a total of 1714 m) to test the thickness and grade of the laterite enriched sequences at Monogorilby, and the receipt of all assay results. The principal interest was in the titanium dioxide which reaches up to 30% on surface, but the iron and alumina contents were also of interest.

As evident from the summary results shown in Table 1, this drilling has resulted in the discovery of a titanium deposit of economic grades and tonnage. Further drilling is required to confirm the overall grade and potential tonnage of mineralisation prognosed to be extensive. Drill samples were panned off and the concentrate submitted for identification. While panning does not indicate potential recoveries, the mineralogy testing did confirm that the extractible titanium content is dominantly rutile.

The titanium dioxide is hosted by a basic tuff sequence in excess of 40 metres thick, and is enriched by lateritic weathering in the top 8-20 metres. The grade in the enriched portion is around 5% whereas the grade in the

HOLE #	INTERSECTION TiO₂ > 3%(m)	COMMENTS		tuff is about 3.1%. The grades are particularly homogeneous as illustrated in the cross-section through the Central Monogorilby deposit as shown in Fig 8 and 9 (opposite). Table 1: Intersec- tions of TiO₂ > 3% from surface at Monogorilby
3	12	Far West Area
13	26	Central West Area
14	25	EOH
15	22
16	22
17	30
18	25
19	40
20	42
21	5	EOH
22	21
23	9
24	18
25	4
26	18
27	27
41	24
42	17
43	14
44	31
28	44	EOHMonogorilby
29	64	EOHCentral Area
30	28	EOH
31	33	EOH
32	37	EOH
33	37	EOH
34	37	EOH
35	37	EOH
36	37
37	40
38	40
39	40
40	20
45	4	North Area
46	13

R epo rt fo r De c 2 01 1 Q u art er | P a ge 6

==> picture [170 x 45] intentionally omitted <==

==> picture [301 x 228] intentionally omitted <==

hematite. The area is directly south of the Belinga Deposit (860Mt @ 63% Fe), and is 85 km from the Trans-Gabonese rail line.

There are ready exploration targets evident in magnetic anomalies, and the project presents the potential for the discovery of direct shipping iron ore .

The southern prospecting application (2,937 km²) is targeting a potential magnetite deposit. It is along strike from known iron occurrences, but in an area that has not seen any "modern era” exploration. The project area is 105 km from Mayumba Port.

Fig 10: IronRidge Prospecting Applications in Gabon

Iron Ore Prospecting Applications in West Africa

==> picture [341 x 242] intentionally omitted <==

Following extensive research and in country work DGR Global’s London based, new opportunities group have lodged two prospecting applications for iron ore in the west African nation of Gabon.

As evident from the various iron deposits shown in Fig 10, Gabon is a region recognised for hosting iron ore. The country has a stable government, with substantial infrastructure in place and a modern Mining Code (2000).

The northern prospecting application (3,027 km²) is targeting conventional banded iron formations (BIF) hosted

Fig 9: Plan of the Monogorilby Central Drilling

==> picture [335 x 211] intentionally omitted <==

Fig 8: Section through the Monogorilby Central Deposit (Holes 32 – 38)

R epo rt fo r De c 2 01 1 Q u ar t er | P a ge 7

A C T I V I T I E S R E P O R T F O R T H E D E C E M B E R 2 0 1 1 Q U A R T E R

QUARTERLY REPORT

==> picture [165 x 57] intentionally omitted <==

Corporate Information

DIRECTORS

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

COMPANY SECRETARY

Karl Schlobohm

ISSUED CAPITAL

At 31 December 2011, DGR Global Ltd had the following securities on issue:

• 324,202,760 ordinary shares

• 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

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

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

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

If you would like to receive news releases by email, please send us 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. Website: www.dgrglobal.com.au

Notes:

1. The resource information for Solomon Gold has been taken from Solomon Gold’s market releases. Information relevant to Solomon Gold exploration results is based on data reviewed by Mr Malcolm Norris (B.Sc. Hons, MSc), the Chief Executive Office of Solomon Gold. Mr Norris is a Fellow of the Australan Institute of Mining and Metallurgy who has in excess of 25 years experience in mineral exploration and is a Competent Person. Mr Norris consents to the inclusion of the information in the form and context in which it appears

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.

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 R R epo rt fo r De c 2 01 1 Q u art er | P a ge 8 ep or t fo r Jun e S ep t 2 0 11 Qu ar t er | Pa g e 53