DGR GLOBAL LIMITED — Interim / Quarterly Report 2015

Jul 6, 2015

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 5 Q U A R T E R

QUARTERLY REPORT

DGR GlobQuarter Highlightsl (ASX: DGR)

• Maiden special dividend to be paid in July. Dividend of 0.25 cents per share will be fully franked, representing a yield of around 7% based on the 10-day volume weighted average price of DGR shares prior to the announcement.

• A voluntary Dividend Reinvestment Plan (DRP) offered at a 5% discount will apply to the special dividend.

• Actively engaged in new project generation and reviewing investment opportunities, targeting acquisitions with the potential for early significant production from a high grade low risk operation.

Archer Resources | 67% DGR Owned

• Rejuvenation and advancement towards fundraising. D’Aguilar Gold holds

Rejuvenation and advancement towards fundraising. D’Aguilar Gold holds ▪ Appointment of Jason Beckton as CEO. 35.2 million shares

• Potential for world class copper gold discoveries at Mt Abbott, Calgoa-representing 15.6% Colo and Three Sisters Projects. of Solomon Gold plc.

• Targeting a JORC compliant 5mt resource at the Ban Ban Zinc Project within 12 months (see pages 4,5).

Armour Energy Ltd ( ASX: AJQ – DGR 25% )- 75m Shares

▪ Recent analysis of the emerging Tawallah Group rock source play could potentially add very significant oil and gas resources to Armour’s portfolio. The extent of this newly recognised exploration play within the company’s existing permits is estimated to be 52,000 km[2] .

• Discussions on farming out North West Qld and Northern Territory gas projects are continuing.

• Victorian Parliamentary Enquiry into onshore gas exploration underway.

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SolGold plc ( LSE: SOLG – DGR 9.8% )- 74.5m Shares

• 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.

• Assay results from several drill holes confirm discovery of large scale, high grade porphyry system at the Alpala Prospect. Further significant long high grade drill intersections were announced to the London Stock Exchange during the last quarter and can be viewed on the LSE or company website www.solgold.com.au.

IronRidge Resources Ltd (LSE: IRR – DGR 26.3%) – 62.3m shares

• Highly prospective hematite rich iron targets evident in Tchibanga and Belinga Sud licence areas in Gabon – total tenure 5,400 km[2] . Tchibanga is 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.

• SRK Exploration Services commences work program on tenements.

• Appointment of Mr Len Kolff ( ex Rio Tinto and Tawana Resources ) as Manager.

Navaho Gold Ltd (ASX: NVG – DGR 19.6%) – 113.5m shares

• Plans for low cost coal production and sale to local industries within the San Juan province in Argentina, with Project manager appointed. Power generation potential.

• Subsidiary NavGas Pty Ltd has released an exciting presentation on the company oil and gas projects in Qld and South Australia, and this can be viewed on the ASX or the company website www.navahogold.com

• Relatively low risk oil and gas prospects on the Roma Shelf mixed with high volume, higher risk prospects in the Proterozoic Cambrian aged formations in South Australia.

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Quarter Highlights DGR Global Creates Resource Companies

New Opportunities:

AusTin Mining Limited (ASX: ANW – DGR 19.96%) – 258m shares

can turn former sub economic deposits into viable Coolgarra Minerals | 100% DGR Owned projects, DGR Global Projects frequently emerge from

▪ detailed reassessment and reinterpretation of large 2 Exploration Permits (EPMs) for gold and antimony in databases with a new perspective. In the past, DGR Global North Qld, and 1 EPM for chromite. Directors and Managers have applied new exploration

▪ During the quarter Maiden JORC resource estimate confirms Taronga DGR Global strongly advanced its as objective to become a diversified global resource project a world class tin project. The details of the resource generator and investment company. (79% indicated) can be viewed on the ASX or on the DGR Global company website generates its own large scale resourcewww.austnmining.com.au.

Pinnacle Gold | 94% DGR Owned models to extensive tenement areas which have

▪ contributed to the identification of new mineral provinces 2 EPMs for gold, and 4 new EPM applications for gold and the discovery of nationally significant resources. near Charters Towers lodged during the quarter. DGR Global’s strategy to independently finance, manage Albatross Bauxite | 100% DGR owned and list its key assets on recognised stock exchanges is

exploration projects directly through the skills and ▪ experience of its accomplished team of explorationists. Metallurgical flow sheet completed for Taronga preMost resource investment companies purchase their feasibility study. Ore described as coarse grained, investment stakes at a high cost with restricted scope and having simple metallurgy, and highly amenable to low diversity and it is this important difference that gives pre-concentration.

▪ designed to deliver negotiability for its key assets, provide New subsidiary, lodged 6 EPM applications for less dilutive funding of forward exploration programs and bauxite during the quarter. deliver expanded and focussed Project Management

DGR Global its strong competitive edge. ▪ Advancement of the Taronga Project with commitMany exploration companies tend to prematurely focus on ment to a Stage 1 Development comprising trial the definition of a restricted resource and/or development mining and pilot plant operations. without the scope for world class discoveries. In contrast,

Teams independent of DGR Global .

DGR Global holds key equity positions in its subsidiary companies after listing. As shown in the DGR Global Group

DGR Global’s philosophy is to secure provincial tenure companies after listing. As shown in the DGR Global Group positions, prospective for commodities with a high demand Corporate Structure (see Fig 1), at 30 April DGR Global growth profile, which attract globally diverse capital funds. D’Aguilar Gold holds holds 25% ASX listed Armour Energy Ltd (ASX : AJQ) 10.5% 35.2 million shares The company adopts a lateral and creative approach in the AIM listed Solomon Gold Plc (LSE: SOLG), 30.6% ASX listed identification of both the commodity and exploration DGR Global Creates Resource Companies representing 15.6% Mt Isa Metals Ltd (ASX: MET), 41.5% AusNiCo Ltd target. of Solomon Gold plc. (ASX: ANW) and 29% Navaho Gold Ltd (ASX: NVG). Table

1 and the following figures 2 and 3 demonstrate how DGR in AIM listed SolGold and IronRidge Resources and ASX Listed Global continues to build value for shareholders.AusTin Mining, Navaho Gold and Armour Energy and unlisted Archer Resources, are expected over the coming years.

DGR Global’s business DGR Global exploration projects tend to be very large, is the creation of resource exploration development and mining companies. The business uses the skills of a core team of talented geoscientists to identify resource targeting new provinces with the potential to make worldprojects capable of yielding world class discoveries of attractive class discoveries. The exploration concepts are often novel. commodities. While increased metal prices and advances in technology

The Company is currently involved in the search for safe high grade, high-yielding production operations in which to invest the bulk of its available cash resources.

This is achieved through:

▪ The identification of commodities with a favorable 20 year demand, growth and price outlook.

DGR Global has commenced an intended program of judicious dividend payments to its shareholders. The future of the dividend program will depend on circumstances from time to time.

• Geological terranes with:

• A demonstrated strong endowment for that commodity;

The previous resource exploration and funding activities of DGR’s key personnel underscore the opportunities provided by the DGR business model.

• An under-explored history;

DGR Global does not purchase its exploration projects. DGRs in house generative capabilities gives the Company a strong competitive edge. DGR’s focus on provincial tenement positions covering entire sedimentary basins or structural blocks where possible delivers capital, government and major resource corporate attention.

• Opportunity for the application of recently developed exploration and metallurgy techniques to define economic resources;

• Jurisdictions with improving socio-economic and regulatory frameworks;

• Extensive available tenures.

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 30 June 2015 DGR Global holds

• Existing data sets which provide the basis for novel reinterpretation

25% ASX listed Armour Energy Ltd (ASX : AJQ) 9.8% AIM listed SolGold Plc (LSE: SOLG), 26.3% AIM listed IronRidge Resources Ltd (LSE:IRR), 19.96% Aus Tin Mining Ltd (ASX: ANW) and 19.6% Navaho Gold Ltd (ASX: NVG).

DGR Global provides initial seed funding and management support to secure these assets in subsidiaries and develop these assets to more advanced funding stages. The Company has a pipeline of projects in daughter companies at various stages of emergence, and has recently crystalised a significant return through the sale of its 15% holding in Orbis Gold for $26million. Further development of its holdings

The following Table and Figure 2 demonstrates how DGR Global continues to build value for shareholders.

Fig 1: DGR Global Corporate Structure as at 31 March 2015

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DGR Global Creates Resource Companies
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 27 April 2012
or the price at which the last round of
financing was raised for unquoted
investments. No value has been attributable
to the prospects in development.
1 The 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 The 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 The 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.
D’Aguilar Gold holds 4 The Armour Energy Ltd (“Armour”) options
allow the Company to take up one ordinary
35.2 million shares share in Armour at an exercise price of
representing 15.6% $0.50. The options are fully vested and expire on 31 August 2014.
of Solomon Gold plc. 5 The Archer Resources Ltd (“Archer”) options
Figure 1: DGR Global Group allow the Company to take up one ordinary
share in Archer at an exercise price of
Corporate Structure at 30/06/15
$0.20. The options are fully vested and
expire on 31 December 2014.
Financial Summary (not including WIP on Business Development) $
Listed assets @ 30 June 2015 14,299,775
Cash on hand 19,634,821
Total Assets 33,934,596
Liabilities and Provisions 3,056,650
Net Assets 30,877,946
Eg: Archer Resources, Pinnacle Gold, Coolgarra Minerals, Albatross Bauxite, etc.
Fig 2: (left) DGR
Global building
shareholder value
The Resource Company Factory
Fig 3: (below) DGR Global resource
company creator—Armour Energy
raises the bar for the future
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Figure 2

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fied the existence of high grade structures within widespread sub economic grades. DGR Global has also transferred an EL in the Central Copper-Gold-Silver-Zinc Lachlan Fold Belt near Bathurst, NSW to Archer Resources. This EL contains an exciting gold-silver Pro-

ject at Caloola which already has an historic (nonArcher is focussed on the discovery and development of copper gold JORC) gold occurrence of 235,000 tonnes @ 2.5g/t silver and zinc deposits in Eastern Queensland. Au. The deepest historic drill hole CP10 stopped in

mineralisation at 96m, later assaying 14m of 3.86 g/t The company holds a portfolio of 6 very prospective exploration project areas and early-stage resources with huge upside Au from 82 metres. potential. The six project areas (shown in Figure 3) contain at least 15 prospects, with several drill ready targets. During the quarter Archer completed a small RC

drilling program at Caloola of 4 holes to 140 metres. The Mt Abbot Project area (see Figure 4) holds several walk up targets including Stockyard Creek, The Springs and Euri Creek. The Calgoa ProThe assay results confirmed the historical drilling ject area (see Figure 5) has high-grade porphyry style mineralisation grades and thicknesses, and revealed a folded strucevident in historic workings within a large alteration zone of > 40 km[2] . ture likely to indicate additional tonnages. The struc-

During the quarter Archer and DGR geoscientists reviewed all the histural information obtained will greatly assist in plan-

torical drill data for the Ban Ban Zinc Deposit (held on MDL 409). The ning follow up drilling programs. tenement has an orebody that has historically been deemed too small

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Figure 3: Archer Resources Project Locations

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 Figure 4: Mt Abbot Project Area—3 EPMs

8 from Sep report) there are widespread areas of breccia vein to be economic. For the first time the historic drilling stockworks and disseminations of generally low grade but data has been modelled in 3D and has revealed with locally richer patches that have supported small undersignificant areas where little is known, and confirms ground mines in the past. Historical surface geochemistry is that the deposit may be open to the north but most incomplete, covering less than half the system, and rarely certainly is open at depth. This is clearly evident in the tested for gold. long section shown in Figure 6. The company has internally generated an exploration target of 2-5 million Porphyry copper deposits are normally tested with holes of tonnes grading 7-10% zinc and 8-10 g/t silver. It should 300m or deeper (due to the scale of the deposits) but no holes be noted that the potential grade and tonnage is at Marodian are deeper than 100m and almost all are less conceptual in nature, that there has been insufficient than 60m. The deepest previous drilling (by the Queensland exploration to estimate a Mineral Resource, and that it is uncertain if future exploration drilling will result in Government) tested the underground workings around the the estimation of an economic Mineral Resource. former Lug I Noor mine at the western extremity of the The Company is planning an exploration program (refer Marodian system. These holes gave variable results but veripage 5) to prove up the target over the next 12 months.

Figure 5: Central area – Calgoa Project – showing historic mining sites

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Figure 6: Long section screen shot of Ban Ban Zinc Deposit modelled in 3D Software

Archer Resources is planning a seed raising in the next quarter to raise $1.5 m by the issue of 30 million shares @ 5 cents per share. A significant portion of the funds raised will be used in a new drilling program at Ban Ban with the aim of delivering a JORC compliant resource within 12 months. Funds will also be spent to advance exploration at key project areas such as Mt. Abbot, Calgoa, Three Sisters, Gayndah and Pinnacle. Initial review will also be commenced on new tenements at Great Blackall and Hawkwood. Sophisticated Investors interested in participating in the Archer Resources seed raising can contact the Company Secretary for further information.

The following Figure 7 indicates how Archer management currently ranks the various projects in the company portfolio, and highlights the potential of an early economic resource being proven up at the Ban Ban Zinc Project (see Figure 8).

Figure 7: Current Archer Resources Project Ranking – with Ban Ban Zinc a priority project

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Figure 8: Expansion of high grade zinc zone at Ban Ban will lead to a Development Scoping Study

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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 | J U N E 2 0 1 5 kkkkjkj

QUARTERLY REPORT Corporate Information Directors

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

Company Secretary

Karl Schlobohm

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Issued Capital

At 30 June 2015, DGR Global Ltd had the following securities on issue:

▪ 414,246,224 ordinary shares

▪ 4.4 million (unlisted) 6.5 cent options expiring 14/04/16

▪ 12 million (unlisted) 12 cent options expiring 30/11/16

Exploration Manager

Neil Wilkins

General Manager

Greg Runge

Registered Office and Head Office

D’Aguilar Gold

DGR Global Limited

holds 35.2 million Level 27, 111 Eagle Street Brisbane QLD 4000 Phone:+ 61 (0)7 3303 0680 Fax:+ 61 (0)7 3303 0681 shares representing Website: www.dgrglobal.com.au 15.6% of Solomon

Australian Stock Exchange (“ASX”)

ASX Code: DGR (Ordinary shares) Australian Business Number

ABN 67 052 354 837

▪ 11 million (unlisted) 12 cent options expiring 29/05/17

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

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 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.

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Silver rich rocks from Rossmore workings, Archer Resources Pinnacle Project
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Exploraton and Mining Tenements

DGR Global interests in mining and exploration tenements at the end of the Quarter are as shown in the attached Appendix.

Competent Persons Statement

The information in this report that relates to Exploration Results and Exploration Targets 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 2012 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.

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Appendix

30-June-2015

DGR Global - Group Mining and Exploraton Tenements

Tenement	**Type **	Principal Holder	Locaton
ML 3678 ML 3741 ML 3749 ML 3752 ML 3753 ML 50059 ML 50099 ML 50148 MDL 409 EPM 15238 EPM 19379 EPM 19411 EPM 19815	Mining Lease " " " " " " " Mineral Development Licence	DGR Global Limited " " " " " " " " " Archer Resources Limited¹ " "	Qld, Australia Qld, Australia Qld, Australia Qld, Australia Qld, Australia Qld, Australia Qld, Australia Qld, Australia Qld, Australia Qld, Australia Qld, Australia Qld, Australia Qld, Australia
	Exploraton Permit for Minerals
	" " "
EPM 25266	"	"	Qld, Australia
EPM 25607	"	"	Qld, Australia
EPM 15134	"	Barlyne Mining Pty Ltd²	Qld, Australia
EPM 18451 EPM 18808 EPM 19087	" " "	" "	Qld, Australia Qld, Australia Qld, Australia
EPM 25157	"	"	Qld, Australia
EPM 25189	"	"	Qld, Australia
EPM 19270	"	Coolgarra Minerals Pty Ltd³	Qld, Australia
EPM 25416	"	"	Qld, Australia
EPM 25547	"	"	Qld, Australia
EPM 19625	"	Pinnacle Gold Pty Ltd⁴	Qld, Australia
EPM 25525 16999-HQ-LPL 17308-HQ-LPL	" Large Prospectng Licence "	" DGR Zambia Limited⁵ "	Qld, Australia Zambia, Africa Zambia, Africa

Notes

1 67% owned by DGR Global 100% owned by Archer Re2 sources 3 100% owned by DGR Global 4 94% owned by DGR Global 5 100% owned by DGR Global

Legend

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Granted or acquired during the quarter

Change in Ownership % (eg: Farm-in) or transfer during the quarter

Surrendered, Expired or Sale/Disposal during the quarter