DGR GLOBAL LIMITED — Interim / Quarterly Report 2015

Jan 26, 2016

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 5 Q U A R T E R

QUARTERLY REPORT

• DGR Global (ASX: DGR) ▪ Quarter Highlights

• Successfully raised over $4.9 million via fully underwritten 1 for 4 rights issue @ 3.8 cents per share.

• The company remains focussed on new project generation and reviewing investment opportunities. DGR has announced the terms of loans made available to Armour Energy, SolGold and Dark Horse Resources.

Armour Energy Ltd ( ASX: AJQ – DGR 23.3% )- 75m Shares

▪ Holds highly prospective whole basin oil and gas positions in Northern Territory and North West Qld covering 133,000 km[2] , and a track record of exploration success.

▪ Binding Agreements signed with American Energy Partners (AEP) for US$130 million farm-out of NT petroleum areas, 9.9% placement @ 20 cents per share, and additional cash payments of up to US$23 million to Armour[1] . D’Aguilar Gold holds

• Hostile unsolicited takeover offer from Westside Corporation 35.2 million shares Ltd withdrawn after shareholders vote to proceed with the AEP farm-out transaction and approve a partial takeover offer from representing 15.6% AEP @ 25 cents per share[2] . of Solomon Gold plc.

▪ Regulatory approval received to acquire petroleum resources, tenures, and production and transportation infrastructure assets on the Roma Shelf from Origin Energy. Planned program to recommission plants and wells to bring on production and early cash flow[3] .

▪ Wholly owned subsidiary Ripple Resources Pty Ltd emerges as a highly prospective lead-zinc explorer with over 20,000 km[2] under application or tenure in Northern Australia.

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

• Focus on 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. Hole 12 returned the longest and highest grade intercepts to date⁴.

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

• Strong copper gold surface mineralisation discovered at the Aguinaga and Trivino Prospects⁵.

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.

• Wide scale field sampling confirms the discovery of high grade canga iron ore mineralisation at Tchibanga, with Ground Penetrating Radar (GPR) survey commenced to test for canga depth[6] .

• Wholly owned subsidiary Eastern Exploration Pty Ltd discovers high grade Direct Shipping Ore (DSO) bauxite mineralisation at the Monogorilby project in Queensland, Australia[7] .

Dark Horse Resources (ASX: DHR – DGR 19.6%) – 113.5m shares

• Company name changed from Navaho Gold (formerly ASX: NVG) to better reflect exploration and development focus in the energy sector.

• Significant advancement of the highly prospective Nirihuau Coal Project in Rio Negro province in Argentina (DHR earning up to 75%).

• MOU executed with Sunset Power for the development of a thermal power station at Nirihuau to supply low-cost base-load power to the Rio Negro region and into the main Argentinian electricity supply network[8] .

• Plans for low cost coal production and sale to local industries within the San Juan province in Argentina (Marayes Coal Project).

▪ 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.darkhorseresources.com.au

• 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.

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

Quarter Highlights DGR Global Creates Resource Companies

• study. Ore described as coarse grained, having simple metallurgy, and highly amenable to pre-concentration.

• can turn former sub economic deposits into viable

• ▪ projects, Advancement of the Taronga Project with commitment to a Stage DGR Global Projects frequently emerge from detailed reassessment and reinterpretation of large 1 Development comprising trial mining and pilot plant operations. databases with a new perspective. In the past, DGR Global

Archer Resources | 63% DGR Owned

• Rejuvenation as a zinc-copper-gold company, with fundraising commenced for advancement towards ultimate listing.

• During the quarter Potential for world class copper gold discoveries at Mt Abbott, DGR Global strongly advanced its objective to become a diversified global resource project Calgoa-Colo and Three Sisters Projects.

• generator and investment company. Exploration target defined for the Ban Ban Zinc Project – refer pages 4 and 5 for details.

• DGR Global generates its own large scale resource

New Opportunities: Directors and Managers have applied new exploration

models to extensive tenement areas which have

Coolgarra Minerals | 100% DGR Owned

• contributed to the identification of new mineral provinces

• ▪ 2 Exploration Permits (EPMs) for gold and antimony in North Qld. and the discovery of nationally significant resources.

• Pinnacle Gold | 94% DGR Owned

• AusTin Mining Limited (ASX: ANW – DGR 19.96%) – 258m shares exploration projects directly through the skills and

• experience of its accomplished team of explorationists. Completes acquisition of high grade Granville Tin Project in Most resource investment companies purchase their Tasmania after high grade drill results[9] .

DGR Global’s strategy to independently finance, manage ▪ 6 EPMs for gold (5 near Charters Towers) have now been granted. and list its key assets on recognised stock exchanges is ▪ designed to deliver negotiability for its key assets, provide Merger of Coolgarra Minerals and Pinnacle Gold under consideraless dilutive funding of forward exploration programs and tion. Albatross Bauxite | 100% DGR owned deliver expanded and focussed Project Management Teams independent of DGR Global . ▪ New subsidiary, with 4 granted EPMs and 2 EPM applications for DGR Global bauxite in southern Queensland.holds key equity positions in its subsidiary companies after listing. As shown in the DGR Global Group

• investment stakes at a high cost with restricted scope and

• ▪ Maiden JORC resource estimate confirms Taronga as a world low diversity and it is this important difference that gives class tin project. The details of the resource (79% indicated) can DGR Global be viewed on the ASX or on the company website its strong competitive edge. www.austnmining.com.au.

Many exploration companies tend to prematurely focus on ▪ Metallurgical flow sheet completed for Taronga pre-feasibility Teams independent of DGR Global . the definition of a restricted resource and/or development ▪ Footnotes: 13579AJQ ASX Releases 20/8 and 11/9/15 AJQ ASX Release 2/11/15 SOLG LSE:AIM Releases 3/11 and 9/12/15 IRR LSE:AIM Release 15/12/15 ANW ASX release 7/12/15without the scope for world class discoveries. In contrast, DGR Global’s positions, prospective for commodities with a high demand growth profile, which attract globally diverse capital funds. philosophy is to secure provincial tenure 2468AJQ ASX Releases 30/10 and 5/11/15 SOLG LSE:AIM Release 20/10/15 IRR LSE:AIM Release 23/11/15 DHR ASX Release 12/1/16 D’Aguilar Gold holds DGR Global holds 35.2 million shares The company adopts a lateral and creative approach in the 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).

Corporate Structure (see Fig 1), at 30 April DGR Global

holds 25% ASX listed Armour Energy Ltd (ASX : AJQ) 10.5% 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). 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, Dark Horse Resources 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

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.

This is achieved through:

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

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

• Geological terranes with:

• A demonstrated strong endowment for that commodity;

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.

• An under-explored history;

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

• Jurisdictions with improving socio-economic and regulatory frameworks;

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 31st December 2015 DGR Global holds 23.3% 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% Dark Horse Resources (ASX: DHR).

• Extensive available tenures.

• Existing data sets which provide the basis for novel reinterpretation

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 in 2015 crystalised a significant return through the sale of its 15% holding in Orbis Gold for $26million. Further development of its holdings

Figure 2 demonstrates how DGR Global continues to build value for shareholders.

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

Figure 5

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 M arc h 20 15 Qu art er | P a ge 2 R e p o r t f o r D e c e m b e r 2 0 1 5 Q u a r t e r | P a g e 2

==> picture [574 x 391] intentionally omitted <==

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

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
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.
Figure 1: DGR Global Group
Corporate Structure at 31/12/15
----- End of picture text -----*

The Resource Company Factory

==> picture [150 x 88] intentionally omitted <==

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

Fig 2: (left) DGR
Global building
shareholder value
Fig 3: (below) DGR Global resource
company creator—Armour Energy
raises the bar for the future
----- End of picture text -----

==> picture [118 x 8] intentionally omitted <==

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

Figure 2: Company Creative Process
----- End of picture text -----

Figure 5

R ep or t fo r Jun e S ep t 2 0 11 Qu ar t er | Pa g e 5 R epo rt fo r M arc h 20 12 Qu art er | P a ge 3 R e p o r t f o r D e c e m b e r 2 0 1 5 Q u a r t e r | P a g e 3

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 Re-

==> picture [274 x 349] intentionally omitted <==

Archer is focused on the discovery and development of copper gold sources. This EL contains an exciting gold-silver Prosilver and zinc deposits in Eastern Queensland. ject at Caloola which already has an historic (non-

The company holds a portfolio of 6 very prospective exploration project areas JORC) gold occurrence of 235,000 tonnes @ 2.5g/t

and early-stage resources with huge upside potential. The six project areas Au. The deepest historic drill hole CP10 stopped in (shown in Figure 3) contain at least 15 prospects, with several drill ready mineralisation at 96m, later assaying 14m of 3.86 g/t targets. Au from 82 metres.

The Mt Abbot Project area (see Figure 4) holds several walk up targets During the quarter Archer completed a small RC including Stockyard Creek, The Springs and Euri Creek. The Calgoa Project area (see Figure 5) has high-grade porphyry style mineralisation evident in historic drilling program at Caloola of 4 holes to 140 metres. workings within a large alteration zone of > 40 km The assay results confirmed the historical drilling[2] .

grades and thicknesses, and revealed a folded strucArcher and DGR geoscientists have reviewed all the historical drill data for the Ban Ban Zinc Deposit (held on MDL 409). The tenement has an orebody that ture likely to indicate additional tonnages. The struchas historically been deemed too small to be economic. For the first time the tural information obtained will greatly assist in planhistoric drilling data has been modelled in 3D and has revealed significant ning follow up drilling programs. areas where little is known, and confirms that the deposit may be open to the north but most certainly is open at depth.

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

stockworks and disseminations of generally low grade but This is clearly evident in the long section shown in Figure 6. with locally richer patches that have supported small underBased on 3D modelling of the historical drill data the ground mines in the past. Historical surface geochemistry is company has internally generated an exploration target of incomplete, covering less than half the system, and rarely approximately 2 million tonnes to approximately 5 million tonnes grading approximately 7% zinc to approximately 10% tested for gold. zinc and approximately 8 g/t silver to approximately 10 g/t silver. It should be noted that the potential grade and tonnage Porphyry copper deposits are normally tested with holes of is conceptual in nature, that there has been insufficient explo300m or deeper (due to the scale of the deposits) but no holes ration to estimate a Mineral Resource, and that it is uncertain at Marodian are deeper than 100m and almost all are less if future exploration drilling will result in the estimation of an than 60m. The deepest previous drilling (by the Queensland economic Mineral Resource. The Company is planning an exploration program (refer page Government) tested the underground workings around the 5) to prove up the target over the next 12 months. former Lug I Noor mine at the western extremity of the

Marodian system. These holes gave variable results but veri- Figure 5: Central area – Calgoa Project – showing historic mining sites

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 e p o r t f o r D e c e m b e r 2 0 1 5 Q u a r t e r | P a g e 4 R e p o r t f o r D e c e m b e r 2 0 1 4 Q u a r t e r | P a g e 4

==> picture [418 x 295] intentionally omitted <==

==> picture [257 x 196] intentionally omitted <==

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

Archer Resources has commenced a seed raising 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

==> picture [448 x 203] intentionally omitted <==

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

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 e p o r t f o r D e c e m b e r 2 0 1 5 Q u a r t e r | P a g e 5 R e p o r t f o r D e c e m b e r 2 0 1 4 Q u a r t e r | P a g e 5

E S R E P O R T | D E C E M B E R 2 0 1 5

G L O B A L L I M I T E D A C

D G R kkkkjkj

T I V I T

I

QUARTERLY REPORT Corporate Information Directors

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

Company Secretary

Karl Schlobohm

Exploration Manager Neil Wilkins

General Manager

Greg Runge

Registered Office and Head Office

D’Aguilar Gold holds 35.2 million

DGR Global Limited

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

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.

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

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

▪ 550,881,877 ordinary shares

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

• 1 million (unlisted) 6.5 cent options expiring 10/07/16

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

• 9.5 million (unlisted) 12 cent options expiring 29/05/17

• 23 million (unlisted) 6.6 cent options expiring 30/09/17

• 22.95 million (unlisted) 6.5 cent options expiring 25/11/17

• 6 million (unlisted) 6.5 cent underwriting options expiring 14/12/17

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

==> picture [577 x 167] intentionally omitted <==

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

Silver rich rocks from Rossmore workings, Archer Resources Pinnacle Project
----- End of picture text -----

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.

R e p o r t f o r D e c e m b e r 2 0 1 5 Q u a r t e r | P a g e 6

Appendix

31-December-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	Mining Lease " " " " " " " Mineral Development Licence	DGR Global Limited " " " " " " " " "	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 25982	"	Albatross Bauxite Pty Ltd¹	Qld, Australia
EPM 25983	"	"	Qld, Australia
EPM 25984	"	"	Qld, Australia
EPM 26000	"	"	Qld, Australia
EPM 19379	"	Archer Resources Limited²	Qld, Australia
EPM 19411	"	"	Qld, Australia
EPM 19815	"	"	Qld, Australia
EPM 25266	"	"	Qld, Australia
EPM 25607	"	"	Qld, Australia
EPM 26023	"	"	Qld, Australia
EPM 15134	"	Barlyne Mining Pty Ltd³	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 Ltd⁴	Qld, Australia
EPM 25416	"	"	Qld, Australia
EPM 19625	"	Pinnacle Gold Pty Ltd⁵	Qld, Australia
EPM 25525	"	"	Qld, Australia
EPM 25963	"	"	Qld, Australia
EPM 25964	"	"	Qld, Australia
EPM 25965	"	"	Qld, Australia
EPM 25966	"	"	Qld, Australia
Notes

1 100% owned by DGR Global 2 63% owned by DGR Global 100% owned by Archer Re3 sources 4 100% owned by DGR Global 5 94% owned by DGR Global

Legend

==> picture [128 x 73] intentionally omitted <==

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