DGR GLOBAL LIMITED — Interim / Quarterly Report 2013

Oct 20, 2013

==> picture [576 x 252] intentionally omitted <==

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

D G R G L O B A L L I M I T E D A C T I V I T I E S R E P O R T | S E P T 2 0 1 3
k
Quarterly Report
----- End of picture text -----

Quarter Highlights

Corporate

• Fully underwritten rights issue and placement raises $1,955,842.

Armour Energy Ltd | ASX: AJQ – DGR 25%

• Egilabria 2 well encounters gas column over 1000 metres[1] .

• Strong flows and gas flares in Egilabria 2 .

• Eight stage frac emplaced in a 650 metre lateral well Egilabria 2 DW1 . Well clean up underway ahead of production test[2] .

• Egilabria 4 well encounters Carpentaria Basin, Lawn and Riversleigh shale gas shows.

• Cuttings and cores collected in Egilabria 4 show gas pressure build up over 700 m in the Lawn and Riversleigh shales[3] .

• A 3,000 km[2] airborne geophysical (gravity-magneticdigital terrain) survey completed over western portion of ATP 1087 in north west Queensland identifies a western depocentre mirroring the potential of the eastern depocentre[4] .

• Grant of EP191 and EP192 over 24,700 km[2] (6.1 million acres) in the Northern Territory increases Armour’s granted position in the McArthur and Georgina Basins by 86%[5] .

• Myrtle Basin 1 and Lamont Pass 3 wells commenced and gas shows encountered in the Barney Creek Formation[6] .

Orbis Gold Ltd | ASX: OBS – DGR 18%

• Further high grade drill assay results and gold recoveries up to 95.5% in metallurgical testing reinforce potential “company making” gold discovery at the Natougou project in Burkina Faso, West Africa[7] .

• Maiden resource estimate (indicated and inferred) at Natougou of 15 Mt @ 3.7g/t gold for 1.8 Mozs, taking Orbis Gold total Mineral Resource inventory (Natougou and Nabanga) to 19 Mt @ 4.1g/t Au for 2.5 Million ounces contained gold[8] .

• Scoping study on Natougou indicates a 6-8 year mine life producing 154 – 213 Koz pa gold and produces a project NPV (10%) of USD259 – 356M , with an IRR of 43 – 60% and a payback period of 1.4 – 1.8 years at a gold price of USD1,300 per oz[9] .

• Further high grade rock chip samples extend the Tankoro Prospect (Bantou Project area) to over 600 metres strike length[10] .

SolGold plc | LSE: SOLG – DGR 9%

• Focus on potential high grade world class copper gold porphyry system at Cascabel in Ecuador. Cascabel is close to the capital and ports, low elevation, has adequate water supplies and access to power.

• First and second holes in Alpala Prospect produce long intersections of visible porphyry copper mineralisation, and third hole underway. Final assay results from the first drill hole CSD-13-001 indicate copper-gold mineralisation of 302m @ 0.39% copper and 0.48 g/t gold from 16m , including 100m @ 0.65% copper and 1.0 g/t gold from 222m . A high grade zone from 226m to 284m (58m) assays 0.96% copper and 1.67 g/t gold[11] .

• Increased ownership of Exploraciones Novomining S.A. – “ENSA” (Cascabel Project) to 50% (hold right to move to 85%) and raised AUD6.7 million to fund ongoing work at Cascabel[12] .

IronRidge Resources Ltd | 45% DGR Owned

• Second field program completed in Gabon at Tchibanga , focussed on the Mont Pele area. High grade (including DSO) iron ore evident over 10 km strike length.

• Tchibanga less than 70 km from the port of Mayumba, with a low capex initial small scale open cut mining operation with road haulage to the port subject to desk top study.

==> picture [130 x 45] intentionally omitted <==

D G R G lo ba l L im i te d Ac t i v it ie s Re port for Se pt emb er 20 1 3 Qu arte r | P a ge 1

AusNiCo Ltd | (ASX:ANW—DGR 14%)

Quarter Highlights

• Maiden JORC resource estimate confirms Taronga as a world class tin project .

• Maiden resource (79% indicated) of 36.3M tonnes @ 0.16% Sn (57,200 t contained tin), 0.07% Cu (26,400t contained copper) and 3.8g/t Ag (for 4.4Mozs contained silver). Initial metallurgical testing has delivered encouraging copper and silver recoveries[13]

• Fully underwritten rights issue successfully closed raising $875,000.

Navaho Gold Ltd (ASX: NVG—DGR 21.5%)

• Review and rationalisation of mineral exploration projects – retaining key projects in Nevada and New Mexico, USA

• Raised over AUD1 million by placements and SPP to existing shareholders to advance shale gas project in South Australia and gold and silver projects in the USA

Archer Resources Ltd (67% DGR owned)

• Secures two (2) highly prospective copper exploration tenements in the Central African Copper Belt in Zambia[14] .

• Proposed capital raising to commence exploration in Zambia and progress company to an IPO and stock exchange listing in 2014.

Footnotes: 1 AJQ ASX Release 11/7/13 2 AJQ ASX Releases 18/7, 29/7, 13/8, 19/9, 24/9/13 3 AJQ ASX Releases 26/8, 9/9, 24/9/13 4 AJQ ASX Release 5/8, 23/8/13 5 AJQ ASX Release 2/10/13 6 AJQ ASX Release 16/9, 8/10/13 7 OBS ASX Releases 16/7, 1/8/13 8 OBS ASX Release 5/8/13 9 OBS ASX Release 15/10/13 10OBS ASX Release 28/8/13 11SOLG LSE Releases 11/9, 18/9, 8/10, 12SOLG LSE Releases 30/8, 16/9, 18/9/13 10/10, 16/10/13 13ANW ASX Releases 26/8, 20/5/13 14DGR ASX Releases 2/9, 30/9/13

DGR Global Creates Resource Companies

During the quarter DGR Global continued to advance 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. 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.

Figure 1: DGR Global Corporate Structure.

R ep o rt fo r Sep te m b er 2 0 13 Q u ar ter | Pa g e 2

DGR Global Creates Resource Companies

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 Figure 1) at 10 September 2013 DGR Global holds 25% ASX listed Armour Energy Ltd (ASX : AJQ) 9% AIM listed SolGold Plc (LSE: SOLG), 18% ASX listed Orbis Gold Ltd (ASX: OBS), 14% AusNiCo Ltd (ASX: ANW) and 21.5% Navaho Gold Ltd (ASX: NVG).

Investment	Listed Code	Number of Shares	Number of Options/	Closing Share Price	Exchange	Market Value#
Lions Gate Metals Inc.	TSX-V:LGM	300,000		0.015	0.94	4,230
SolGoldplc	LSE:AIM: SOLG	54,517,440	-	0.086	1.69	7,923,565
Orbis Gold Ltd	ASX: OBS	39,000,000	-	0.35		13,650,000
Navaho Gold Ltd1	ASX: NVG	59,037,518	17,428,667	0.012		708,450
AusNiCo Ltd2	ASX: ANW	83,687,100	20,000,000	0.008		669,497
Armour EnergyLtd3	ASX: AJQ	75,050,000	18,837,500	0.35		27,586,125
Total market value of DGR Global assets(excl cash) 50,541,867
Total DGR Global shares on issue 0.04 411,002,681
Value attributable to each DGR share 0.12
Table 1: Current Portfolio and Market Valuation of Listed Assets held by DGR Global.

• # Market value represents the market quoted price for listed investments at 10 September 2013.

• Navaho Gold Ltd (“NVG”) options allow the Company to take up one ordinary share in NVG at an exercise price of $0.20. Options are fully vested and expire on 31 Dec ‘13.

• AusNiCo Ltd (“ANW”) options allow the Company to take up one ordinary share in ANW at an exercise price of $0.30. Options are fully vested and expire 19 Nov ‘13.

• The Armour Energy Ltd (“Armour”) options allow the Company to take up one ordinary share in Armour at an exercise price of $0.50. Options are fully vested and expire on 31 Aug 2014. On 10 September 2013, Armour options (ASX:AJQO) closed at $0.07.

==> picture [201 x 267] intentionally omitted <==

Figure 2: Collection of samples at Mont Pele Base Camp, Tchibanga ATP, Gabon.

==> picture [201 x 267] intentionally omitted <==

Figure 3: Government (DGMG) geological staff seconded to IronRidge Resources proudly display the days catch from the Mont Pele area, Gabon.

R epo rt fo r Sep te mber 2 0 13 Q uar ter | Pa g e 3

==> picture [220 x 58] intentionally omitted <==

Iron, Titanium and Bauxite

IronRidge Resources Ltd (IRR), has been granted two Autorisation de Prospection (ATP) in Gabon: Belinga Sud and Tchibanga, providing IronRidge with an exciting strategic direction in iron ore exploration.

Figure 5: Magnetic image (analytic signal) over the Belinga Sud ATP area showing high responses of potential iron formations and extensions of prospective geology to the south.

Belinga Project (CMEC/Gabonese Govt) —860Mt @ 63%Fe[10 ]

Whilst global iron ore markets are experiencing volatility, Australia’s largest producers continue to invest in exploration and development on the expectation of prices stabilising at sustainable levels of approximately USD120 per tonne which is based on the global cost curve and supply demand balance.

The location of the two tenements and proximity to known Iron Ore deposits is shown in Figure 4. 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

Figure 4: IronRidge Project Locations in Gabon

==> picture [279 x 375] intentionally omitted <==

(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 ATP is strategically located immediately south of the concession hosting the Belinga Iron Ore Deposits, which contain an estimated combined 860Mt @ 63% Fe[15] . The Iron Ridge ATP 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.

As shown in Figure 5 the magnetic image (analytic signal) over the Belinga Sud exploration tenement shows high responses of possible iron formations and extension of prospective geology to the south of Belinga and has presented several target areas .

During two completed field programs limited sampling was undertaken at Massaha and Indombo with the Indombo Central area delivering very encouraging initial assays to 67% Fe. As shown, Indombo Central presents a high grade target with a strike potential of 6 kms, and Indombo South a further 5 kms. Based on an observed width of 3-400 m and an assumed depth of 50 m (not drilled) the Indombo target has potential for 600-800Mt grading 41-67%Fe with significant DSO.

This Exploration Target is conceptual in nature and there has been insufficient exploration to define a Mineral Resource under the JORC code and it is uncertain if further exploration will result in the determination of a Mineral Resource.

15Mining Journal, ’BHP looks set to bag Belinga Iron Project’ (Feb 10,2012) Page 10.

R ep o rt fo r Sep te m b er 2 0 13 Q u ar ter | Pa g e 4

==> picture [194 x 50] intentionally omitted <==

The 2,937km² Tchibanga ATP 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.

Proof of concept is demonstrated by a number of iron occurrences at a similar stratigraphic level along the western limb of the syncline. The ATP is close to the coast and the port of Mayumba, and as such even a modest resource would represent a project of significant value to IronRidge.

IronRidge recently acquired Falcon Gravity Data in the Tchibanga area. Sampling and mapping has confirmed a correlation of the characteristic signatures provided by magnetics, gravity and topography data, including the ability to differentiate between hematite and magnetite resources. Based on the Falcon data IronRidge has lodged an additional 1,400 km[2 ] exploration licence application giving 100% tenure over the gravity data area (see Figure 6).

Noting a strong magnetic and gravity response similar to the known Milingui Iron Ore deposit to the north west of the Tchibanga Permit, IronRidge has just completed an initial field exploration program in the Mont Pele area in the south eastern sector of the Tchibanga Permit.

As illustrated in Figures 2, 3, 7 & 8, this program has confirmed the presence of hematite grading up to 62% in banded iron formations (BIF) over at least 10km strike length.

==> picture [232 x 175] intentionally omitted <==

Figure 7: Weathered, laminated hematite collected at surface on the

Mont Pele

==> picture [234 x 173] intentionally omitted <==

Figure 8: Sample of high-grade canaga containing clasts of

hematised phyllite; Mont Pele

==> picture [436 x 296] intentionally omitted <==

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

Mont Pele
Figure 6: Tchibanga – New
Exploration Permit Application and
Falcon Gravity Data Coverage
----- End of picture text -----

R epo rt fo r Sep te mber 2 0 13 Q uar ter | Pa g e 5

DGR Global has also transferred an EL in the Central Lachlan Fold Belt near Bathurst, NSW to Archer Resources. This EL contains an exciting gold-silver Project at CaloolaPorphyry Copper-Gold-Silver-Molybdenum which already has an historic (non-JORC) gold occurrence of 235,000 tonnes @ 2.5g/t Au. The deepest

==> picture [271 x 375] intentionally omitted <==

historic drill hole CP10 stopped in mineralisation at 96m, Archer is focussed on the discovery and development of later assaying 14m of 3.86 g/t Au from 82 metres. porphyry copper gold silver molybdenum deposits. The company has 6 key project areas in eastern Qld – During the quarter Archer completed a small RC drilling Mt Abbot, Gayndah and Calgoa (which program at Caloola of 4 holes to 140 metres. The assay already host encouraging drill intersections) and results confirmed the historical drilling grades and thick-Drummond North, Pinnacles and Three Sisters nesses, and revealed a folded structure likely to indicate (see Figure 9).

additional tonnages. The structural information obtained Little field work was undertaken during the quarter to will greatly assist in planning follow up drilling programs. contain expenditure.

Archer Resources has drill ready targets and resources however as reported in 2012 a planned $6 million IPO and ASX listing was put on hold following the significant downturn in capital markets.

With these conditions persisting through the last year the Archer Resources Board requested the DGR New Opportunities Group to investigate the possibility of securing highly prospective copper exploration tenements in the Central African Copper Belt, believing that the addition of such exploration prospects would significantly enhance and diversify the Archer Resources portfolio such that a significant capital raising and listing on a recognized stock exchange will be able to be achieved.

Following the identification of 11 potential target areas, a local subsidiary DGR Zambia was incorporated to facilitate the application for exploration licences. Two licences have recently been granted (see Figure 10) and DGR shareholders have approved the transfer of the Zambian Marodian is probably the lrgest untested copper molybdenum subsidiary to Archer. gold porphyry system in the south west Pacific. Within the 30 – 40 km² Cu MArcher Res o urces now proposes and Au zone (see Figure 9–use Fig 8 from Sep reto undertake a capital port) there are widespread areas of breccia vein stockworks and raising to commence disseminations of generally low grade but with locally richer exploration in Zambia ahead of a patches that have supported small underground mines in the proposed IPO and stock past. Historical surface geochemistry is incomplete, covering less exchange listing . than half the system, and rarely tested for gold.

Figure 9: Map Showing location of Archer Resources Tenements

Figure 10: Location of Prospecting Porphyry copper deposits are normally tested with holes of 300m Licences 16999 and 17308 in or deeper (due to the scale of the deposits) but no holes at Ma- Zambia rodian are deeper than 100m and almost all are less than 60m. The deepest previous drilling (by the Queensland Government) tested the underground workings around the former Lug I Noor mine at the western extremity of the Marodian system. These holes gave variable results but verified the existence of high grade structures within widespread sub economic grades.

Figure 5

R e p o r t f o r S e p t 2 0 1 1 Q u a r t e r | P a g e 5 R ep o rt fo r Sep te m b er 2 0 13 Q u ar ter | Pa g e 6

DGR Global has also transferred an EL in the Central Lachlan Fold Belt near Bathurst, NSW to Archer Resources. This EL contains an exciting gold-silver Project at

CaloolaPorphyry Copper-Gold-Silver-Molybdenum 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 mineralisation at 96m,

later assaying 14m of 3.86 g/t Au from 82 metres.

During the quarter Archer completed a small RC drilling

program at Caloola of 4 holes to 140 metres. The assay Licence 16999-HQ-LPL (see results confirmed the historical drilling grades and thick-Figure 11) covers 50 km[2 ] and is located nesses, and revealed a folded structure likely to indicate in the central north of Zamadditional tonnages. The structural information obtained bia in the ‘Domes’ Region, a will greatly assist in planning follow up drilling programs. new copper belt to the west of the traditionally recognised Zambian copper belt. It is immediately adjacent to the Lumwana Mine (Barrick – proven and probable D’Aguilar Gold holds reserves of 1.2Bt @ 0.6% Cu) 35.2 million shares and contains historic copper occurrences. representing 15.6%

==> picture [217 x 79] intentionally omitted <==

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

Malundwe Pit
D’Aguilar Gold holds
Chimiwungo Pit
35.2 million shares
representing 15.6%
of Solomon Gold plc.
----- End of picture text -----

Figure 11: Licence 16999-HQ-LPL Lumwana

==> picture [400 x 326] intentionally omitted <==

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

Marodian is probably the lrgest untested copper molybdenum
gold porphyry system in the south west Pacific. Within the 30 –
40 km² Cu Mo and Au zone (see Figure 9–use Fig 8 from Sep re-
port) there are widespread areas of breccia vein stockworks and
disseminations of generally low grade but with locally richer
patches that have supported small underground mines in the
past. Historical surface geochemistry is incomplete, covering less
than half the system, and rarely tested for gold.
Porphyry copper deposits are normally tested with holes of 300m
or deeper (due to the scale of the deposits) but no holes at Ma-
rodian are deeper than 100m and almost all are less than 60m.
The deepest previous drilling (by the Queensland Government)
tested the underground workings around the former Lug I Noor
mine at the western extremity of the Marodian system. These
Figure 12: Licence 17308-HQ-LPL
holes gave variable results but verified the existence of high
grade structures within widespread sub economic grades.
----- End of picture text -----

Licence 17308-HQ-LPL (see Figure 12) is much larger, covering 950 km[2] , and is located in central Zambia in the Hook Intrusive Complex (IOCG Province). While a greenfields exploration project (no modern exploration), the licence area abuts Barrick’s (ex: Equinox) Mutapanda Permit area, with Blackthorn Resources Kitumba Prospect (187Mt @ 1.14% Cu + Au) to the south of the Barrick licence area.

Figure 12: Licence 17308-HQ-LPL

Figure 5

R e p o r t f o r S e p t 2 0 1 1 Q u a r t e r | P a g e 5 R epo rt fo r Sep te mber 2 0 13 Q uar ter | Pa g e 7

T E D A C T I V I T I E S R E P O R T | S E P T E M B E R 2 0 1 3

D G R G L O B A L L I M I kkkkjkj

QUARTERLY REPORT Corporate Information

DIRECTORS

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

COMPANY SECRETARY

Karl Schlobohm

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

ISSUED CAPITAL

At 30 September 2013, DGR Global Ltd had the following securities on issue:

▪ 411,002,681 ordinary shares

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

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

EXPLORATION MANAGER

Neil Wilkins

D’Aguilar Gold holds 35.2 million shares

GENERAL MANAGER

Greg Runge

representing 15.6% of Solomon Gold plc.

REGISTERED OFFICE AND HEAD OFFICE

DGR Global Limited Level 27, 111 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”)

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

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

▪ 4.63 million (unlisted) 6 cent options expiring 01/10/14

▪ 500,000 Convertible Notes at $1.00 each

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.

ASX Code: DGR (Ordinary shares)

AUSTRALIAN BUSINESS NUMBER

ABN 67 052 354 837

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:

INTERNET ADDRESS

Link Market Services Limited

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 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.

Locked Bag A14 SYDNEY

Phone: 1300 554 474

==> picture [556 x 122] intentionally omitted <==

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

Iron Ridge Field Camp, 2km east of Mont Pele, Tchibanga, Gabon.
----- End of picture text -----

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.

R ep o rt fo r Sep te m b er 2 0 13 Q u ar ter | Pa g e 8