EASTERN RESOURCES LIMITED — Capital/Financing Update 2018

Aug 27, 2018

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ASX Announcement –28 August 2018
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OPTION TO ACQUIRE INTEREST IN

MT COBALT CORRIDOR PROJECT

Highlights

• Eastern Iron Limited has entered into a Call Option Agreement with Heavy Metal Exploration Pty Ltd to acquire an interest in the Mt Cobalt Corridor Project, which is a copper cobalt sulphide project in NW Queensland.

• The project is in one of the few areas globally with a history of high grade primary cobalt production

• Project area covers 161 sub-blocks, with a diverse geology adjacent to and extending out from known cobalt mineralisation, together with cobalt anomalism noted within the tenements.

• Historic data has identified rock chips samples in copper (up to 5.2% Cu) and stream sediment samples anomalous in cobalt (up to 300ppm Co)

Eastern Iron Limited ACN 126 678 037 ( ASX: EFE ) ( EFE or Company ) is pleased to announce that it has on 28 August 2018 entered into a Call Option Agreement with Heavy Metal Exploration Pty Ltd ACN 163 155 913 to acquire an interest in the Mt Cobalt Corridor Project, located in the Selwyn-Mt Freda district, south of Cloncurry, NW Queensland (the “ Project ”) (Figure 1).

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Figure 1: Mt Cobalt Corridor Project EPMAs coverage.

ACN 126 678 037

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Project Summary

Location and tenures

The Project is located in NW Queensland and comprises 5 EPMAs which covers 161 sub-blocks. The EPMAs are expected to be granted in September 2018, and all have been applied for a period of 5 years. All applications are non-competitive.

EPM No.	Permit Name	Status	Applied For	No. Sub-blocks
26690	Burnham	Application	26-Oct-17	53
26715	Mt Carol	Application	27-Nov-17	8
26746	Mt Carol Extended	Application	2-Jan-18	9
26765	Mt Freda South	Application	29-Jan-18	51
26770	Selwyn Range	Application	2-Feb-18	40

Geology

The area lies within the largely Palaeo-Proterozoic Eastern Fold Belt of the Mt Isa block in NW Queensland. The area under application consists of outcrop from the Kuridala Formation which hosts a number of major deposits and mineral occurrences in the area, occurring to the west, south west and north west which include Starra (Cu,Au), Mt Dore (Cu,Au,Co), Merlin (Mo,Re), Mt Cobalt (Co,Cu,W), Swan (Cu,Au), Mt Elliott (Cu,Au) mines and The Plume (Cu,Au,Co). Dolerite is regarded as an important localiser of cobalt mineralisation at Mt Cobalt.

There are three main units in Mount Isa. These are the Western Fold Belt including Mt Isa, the Kalkadoon Leichhardt Belt and the Eastern Fold Belt that includes the three mines that produced cobalt, Mt Cobalt, Queen Sally and Success Mines. In the Eastern Fold Belt, cobalt is associated with copper. The Kuridala Formation, essentially consisting of Proterozoic metasediments such as schist, quartzite and dolerite/amphibolite conformable intrusives and its equivalent, the Soldiers Cap Group, is a major host-rock for cobalt in the area. Resources in the Eastern Fold Belt are large, particularly in the Cloncurry area, such as Las Minerale with 16,500t of cobalt, Greenmount with 11,000t of cobalt and Millennium with 4,298t cobalt. A cobalt source with high grade cobaltite ore, such as Mt Cobalt, would be the most economical resource to extract the cobalt from by flotation to produce a concentrate. Such a scenario could exist at The Plume and along the strike of the Mt Cobalt Corridor.

Previous works in the region

Previous works in the region were mainly for copper and gold. However, cobalt mineralization was identified and cobalt production of about 800t at Mt Cobalt occurred in two periods 1919 to 1943 (778 t) and 1996 to 1997 (21.5t).

At Mt Cobalt the most important rock type that hosts the mineralisation is intrusive metadolerite/amphibolite. Cobaltite veins occur in a biotite schist/shear zone near the hanging wall of the amphibolite, close to the contact with quartzite. In 1957, drill hole intercepts included 4 holes that had over 1% cobalt in the ore zone where veins were up to 80 cm wide. The deposit was drilled in the late 1990s but this information is not available.

In the late 1990s an area south of Mt Cobalt was extensively drilled by previous explorers, as an aeromagnetic target called “The Plume”. This area was in alignment with the Mt Cobalt trend. Drilling at The Plume revealed appreciable cobalt mineralisation in several holes. Hole PLRCD-13 which in the 34m (231 – 255m) at 0.11 g/t Au, 0.54% Cu and 0.14% Co included 1m from 243m at 0.29 g/t Au,0.11% Cu and 1.92% Co. The two magnetic trends for both the Mt Cobalt copper-cobalt and Starra copper-gold areas continue south into the Burnham EPMA26690.

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Figure 2: Regional aeromagnetic imagery showing magnetic trends for both the Mt Cobalt copper-cobalt and Starra copper-gold areas continue south into the Burnham application.

EPMAs

Mt Freda South (EPMA26765): 51 sub-blocks

Mt Freda South is approximately 60km south southwest of Cloncurry in northwest Queensland, extending north east from the historic copper mining centers of Kuridala and Mt Freda.

The area consists of a diverse geology located in a north east trend extending from the copper gold historic producers of Kuridala to Mt Freda. Major structures transect the area, the most prominent is the NNW trending Cloncurry Fault which traverses through the north eastern sub blocks of the Mt Freda South EPMA. Copper-gold-cobalt anomalism occurs across the region, however the Mt Freda South EPMA is distinctly under-sampled, particularly for cobalt.

Figure 3 shows that the Mt Freda South area is characterised by diverse Proterozoic geology of the Eastern Succession of the Mt Isa Block. Most of the country rock in the area is mapped as Kuridala Group or equivalents. The Kuridala Group equivalents are hosts for the bulk of the cobalt mineral occurrences in the region including Mt Cobalt, The Plume, Mt Dore, Mobs Lease, Kuridala and Young

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Australian. Another positive feature, in a similar fashion to Mt Cobalt, is that there is a prominent large dyke-like intrusion of dolerite within the equivalents of the Kuridala Group within the Mt Freda South EPMA, particularly at the NE end. Dolerite is regarded as an important localiser of cobalt mineralisation at Mt Cobalt. The older units are intruded by a range of Meso-Proterozoic granites which are represented over several of the sub-blocks of the EPMA. Copper occurrences occur throughout the region, particularly the historic producers of Kuridala and Mt Freda. As with the other mines nearby, there is a general association in the Eastern Fold Belt of copper and cobalt.

Historic data has identified rock chips samples in copper (up to 5.2%) and stream sediment samples anomalous in cobalt (>80ppm Co up to 300ppm Co); anomalous copper (up to 500ppm Cu in streams) and gold (>10ppb Au in streams). Mafic rocks, such as intrusive dolerite are favourable host units for the cobalt mineralisation associated with copper, gold, molybdenum and tungsten in the Selwyn-Cloncurry mining districts and these occur within the Mt Freda South EPMA26765.

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Figure 3: Mt Freda South EPMA 26765 overlain on regional aeromagnetics. Prominent high magnetic ridge and spot highs ae present in most groups of sub-blocks

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Selwyn Range (EPMA26770): 40 sub-blocks

The Selwyn Range application is approximately 120km south southwest of Cloncurry. The Mt Cobalt deposit occurs within 5km of the application area and is the only historical producer of significant quantity of cobalt in the Mt Isa district.

The Selwyn Range EPMA is characterised by diverse Proterozoic geology of the Eastern Succession of the Mt Isa Block. The copper-cobalt trend of the Mt Cobalt Mine transects the sub-blocks of the EPMA. Most of the country rock in the area is mapped as Kuridala Group or equivalents which are hosts for the bulk of the cobalt mineral occurrences in the region. Another positive feature, in a similar fashion to Mt Cobalt, is that there are some large dyke-like intrusions of dolerite within the equivalents of the Kuridala Group within the Selwyn Range EPMA.

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Figure 4: Selwyn Range EPMA overlain on regional aeromagnetics.

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Mt Carol (EPMA26715): 8 sub-blocks, and Mt Carol Extended (EPMA26746): 9 sub-blocks

The Mt Carol application and Mt Carol Extended application are approximately 100km south southwest of Cloncurry in northwest Queensland, a few km to the east of the Starra Mines. Mt Cobalt is less than 5km from Mt Carol Extended.

The area has been mapped as Kuridala Group, the host geological unit for the bulk of the cobalt mineral occurrences, with high stream sediment cobalt geochemistry (80 - 300 ppm Co) occurring within and adjacent to the tenements. Prospective dolerite is a conspicuous unit within the Mt Carol Extended tenement.

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Figure 5: Location of Mt Carol and Mt Carol Extended EPMAs.

Burnham (EPMA26690): 53 sub-blocks

The Burnham application is approximately 140km south of Cloncurry. The project area contains buried aeromagnetic targets suspected of being Mid-Proterozoic Kuridala Formation and Staveley Formation; host rocks of the Starra copper-gold mines to the north; and the copper-cobalt trend of the Mt Cobalt Mine to the north northeast. These aeromagnetic ‘highs’ are also associated with the Osborne copper-gold+/-cobalt Mine, only 20 kms to the southeast. The Plume Cu-Co prospect is approx. 5kms to the tenement.

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The area is highly prospective for copper, gold, cobalt and possibly molybdenum/rhenium mineralization as this type of mineralization has been discovered and mined in rocks to the north northeast (Starra, Mt Cobalt, Merlin, Mt Dore); as well as Osborne Mine to the southeast.

The magnetic trend for both the Mt Cobalt copper-cobalt and Starra copper-gold areas continues south into the Burnham EPMA see Figure 6.

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Figure 6: Burnham EPMA 26690 and southern Mt Cobalt Corridor Tenements.

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Commercial Terms

On 28 August 2018, the Company entered into a Call Option Agreement to acquire a 25% interest in the Project (which includes EPMA 26990, EPMA 26715, EPMA 26746, EPMA 26765 and EPMA 26770 (“ Tenements ”) and all environmental approvals, authorisations, mining information, plant and equipment and other assets relating to the Tenements) owned by Heavy Metal Exploration Pty Ltd ACN 163 155 913 (“ Heavy Metal ”).

The Call Option Agreement also contemplates the Company eventually acquiring a 100% interest in the Project:

• through meeting staged expenditure requirements under a Farm-In Agreement to be negotiated and entered into by the Company and Heavy Metal in relation to the Project (discussed further below); and

• by the Company agreeing to enter into a Royalty Deed with Heavy Metal under which the Company will pay a royalty payment to Heavy Metal in respect of certain copper equivalent metal produced from the Tenements (discussed further below).

The Call Option Agreement contains the following key terms:

• The Company must pay Heavy Metal a call option fee of AUD$10,000 (excluding GST) (“ Call Option Fee ”) by no later than 11 September 2018 to have an exclusive call option to acquire a 25% interest in the Project (“ Call Option ”).

• If the Company elects to exercise the Call Option, the sale of the 25% interest in the Project is conditional on satisfaction of the following two conditions:

• the Minister of the Department of Natural Resources and Mines in Queensland giving indicative approval for the transfer of a 25% interest in the Tenements to the Company on terms acceptable to the Company (“ Indicative Approval ”); and

• the Farm-In Agreement and NSR Royalty Deed being in agreed form.

• Within 10 business days after the date of receipt of Indicative Approval (“ Indicative Approval Date ”), as consideration for the acquisition of a 25% interest in the Project, the Company must:

• pay Heavy Metal the amount that is equal to AUD$150,000 (excluding GST) less the Call Option Fee (“ Initial Acquisition Cash Payment ”); and

• subject to shareholder and any other approvals required under the Corporations Act 2001 (Cth) and the ASX Listing Rules, issue AUD$200,000 worth of fully paid ordinary shares in the Company (“ Shares ”) of which the issue price is to be calculated on the basis of 20-day VWAP prior to the Indicative Approval Date.

• Within 30 days after the Indicative Approval Date, the Company and Heavy Metal must negotiate the Farm-In Agreement which is expected to include the following key commercial terms:

• Stage 1: the Company must spend a total of AUD$650,000 on the Project within the first 24 months of the commencement of the Farm-In Agreement (“Stage 1 Period”) in order to acquire an additional 35% interest in the Project.

• Stage 2: the Company must spend an additional AUD$1,500,000 on the Project within a period of 36 months commencing on the expiry date of the Stage 1 Period in order to acquire an additional 40% interest in the Project.

• Within 30 days after the Indicative Approval Date, the Company and Heavy Metal must also negotiate the Royalty Deed which is expected to include the following key commercial terms:

• The Company agrees to pay a royalty payment to Heavy Metal equivalent to the value of 0.5% of net smelter return on copper equivalent metal production capped at 30,000 tonnes of copper equivalent metal produced from the Tenements.

• The Company is not required to make the royalty payment when copper prices or the price of saleable copper equivalent metal products are at or below USD$6,000 per tonne.

• The Company has the right to buy back the royalty from Heavy Metal for AUD$1,500,000.

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The Call Option Agreement provides that completion of the Company’s acquisition of a 25% interest in the Project (“ Completion ”) is expected to take place on the date that is 30 days after the Indicative Approval Date (or such other date as agreed by the Company and Heavy Metal in writing).

COMPETENT PERSONS STATEMENT

The information in this release that relates to Exploration Results is based on information prepared by Dr Simon Beams, a full-time employee of geological consultants Terra Search Pty Ltd who are the owners of Heavy Metal Exploration Pty Ltd.

Dr. Beams has BSc Honours and PhD degrees in geology; he is a Member of the Australasian Institute of Mining and Metallurgy (Member #107121) and a Member of the Australian Institute of Geoscientists (Member # 2689). Dr. Beams has sufficient relevant experience in respect to the style of mineralization, the type of deposit under consideration and the activity being undertaken to qualify as a Competent Person within the definition of the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (“JORC Code).

Dr. Beams consents to the inclusion in the report of the matters based on this information in the form and context in which it appears.

INVESTOR INFORMATION

Further information, previous Eastern Iron announcements and exploration updates are available at the News and Reports tab on the Company’s website –www.easterniron.com.au

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Mr Myles Fang Acting Chief Executive Officer T: 02 9906 7551 Mob: 0404 869 892

ASX: EFE

For enquiries on your shareholding or change of address please contact: Boardroom Limited, GPO Box 3993, Sydney NSW 2001, Phone: (02) 9290 960

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APPENDIX 1

JORC Code Table 1 - Mt Cobalt Corridor Project, 28 August 2018.

Section 1: Sampling Techniques and Data

Criteria	JORC Code explanation		Commentary
Sampling techniques	Nature and quality of sampling (e.g. cut		This report relies on data contained in
	channels, random chips, or specific		reports submitted to the Queensland
	specialised industry standard measurement		Department of Natural Resources and
	tools appropriate to the minerals under		Mines as part of the Company Report
	investigation, such as down hole gamma		System attaching to the grant of
	sondes, or handheld XRF instruments, etc.)		Exploration Permits.
	These examples should not be taken as		The sampling techniques, where reported,
	limiting the broad meaning of sampling.		used standard industry approaches. These
			include:
	Include reference to measures taken to ensure sampling representivity and the appropriate calibration of any measurement tools or systems used.	   	1. -80 mesh stream sediment sampling 2. -80 mesh soil sampling Rock chip sampling 3. Drill sampling involving splitting off a
	Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1m samples from which 3kg was pulverised to produce a 30g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information	 	sample of material delivered to the top of the hole during percussion drilling (reverse circulation & open hole percussion) to produce a sample for assay accompanied by geological logging of the sample. 4. Halving of drill core from diamond drilling to produce an assay sample accompanied by geological logging of the core. Assaying of samples was completed by commercial laboratory methods that were appropriate at the time the samples were collected. Whilst it is not possible to determine the reliability of historical assay results, no issues arose during compilation
	In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain		and interpretation of the results that would suggest that the assay results were not reasonable.
	1 m samples from which 3 kg was pulverised
	to produce a 30 g charge for fire assay’). In
	other cases more explanation may be
	required, such as where there is coarse gold
	that has inherent sampling problems. Unusual
	commodities or mineralisation types (eg
	submarine nodules) may warrant disclosure of
	detailed information.
Drilling techniques	Drill type (e.g. core, reverse circulation, open-		Historical Reverse Circulation (RC), Open
	hole hammer, rotary air blast, auger, Bangka,		Hole Percussion (OH) and Diamond
	sonic, etc.) and details (e.g. core diameter,		Drilling (DD) cover almost all of the drill
	triple or standard tube, depth of diamond tails,		types relied on in this report.
	face-sampling bit or other type, whether core
	is oriented and if so, by what method, etc.)
Drill sample recovery	 Method of recording and assessing core and chip sample recoveries and results assessed.  Measures taken to maximise sample recovery and ensure representative nature of the samples.	  	Recoveries for Percussion (RC and OH) drill holes were not recorded. Recoveries for diamond drill core samples were not usually recorded for holes drilled. No relationship is evident between sample recovery and grade
	 Whether a relationship exists between
	sample recovery and grade and whether
	sample bias may have occurred due to
	preferential loss/gain of fine/coarse
	material.

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Criteria	JORC Code explanation	JORC Code explanation		Commentary
Logging	Whether core and chip samples have been			Geological logging of most of the drill holes
	geologically and geotechnically logged to a			is available in the Company Report
	level of detail to support appropriate Mineral			System. No geotechnical logs have been
	Resource estimation, mining studies and			reported and it is assumed that these were
	metallurgical studies			not done. Diamond drill hole logs usually
				include some structural data.
	Whether logging is qualitative or quantitative			The logging is generally of a qualitative
	in	nature. Core (or costean, channel etc.)		nature. No core or chip photography is
	photography.			available in the reports.
	The total length and percentage of the			For the logs available, logging of all
	relevant intersections logged.			material has been completed.
Sub-sampling		If core, whether cut or sawn and whether		As reported above, it is reported that
techniques and		quarter, half or all core taken.		diamond drill core has been halved as is
sample preparation		If non-core, whether riffled, tube sampled,		standard practice for most explorers.
		rotary split, etc. and whether sampled wet		Details of the approach taken for sampling
		or dry.		of RC drill holes are not available.
		For all sample types, the nature, quality
		and appropriateness of the sample
		preparation technique.
		Quality control procedures adopted for all
		sub-sampling stages to maximise
		representivity of samples.
		Measures taken to ensure that the
		sampling is representative of the in situ
		material collected, including for instance
		results for field duplicate/second-half
		sampling.
		Whether sample sizes are appropriate to
		the grain size of the material being
		sampled.
Quality of assay data		The nature, quality and appropriateness		As reported above, assaying of samples
and laboratory tests		of the assaying and laboratory		was completed by commercial laboratory
		procedures used and whether the		methods that were appropriate at the time
		technique is considered partial or total.		the samples were collected.
		For geophysical tools, spectrometers,
		handheld XRF instruments, etc. the		Assay data submitted with the reports
		parameters used in determining the		include some duplicate assaying. It is
		analysis including instrument make and		unknown in detail what quality control
		model, reading times, calibration factors		procedures were adopted.
		applied and their derivation, etc.
		Nature of quality control procedures
		adopted (e.g. standards, blanks,
		duplicates, external laboratory checks)
		and whether acceptable levels of
		accuracy (i.e. lack of bias) and precision
		_have been established. _
Verification of		The verification of significant		The tenements are still in application stage
sampling and		intersections by either independent or		and Heavy Metal have not yet undertaken
assaying		alternative company personnel.		any exploration on the ground.
	  	The use of twinned holes. Documentation of primary data, data entry procedures, data verifications, data storage (physical and electronic) protocols. Discuss any adjustment to assay data.		It is evident that most of the historical drill hole data was captured on paper and stored on paper. The compilation of that data in digital form has been overseen by the competent person with plotting of surface geochemical and drill data on both
				plans and sections in digital form.
				No adjustments have been made to
				historical sample assay data as there was
				no apparent reason for such adjustments.

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Criteria	JORC Code explanation	JORC Code explanation		Commentary
Location of data	Accuracy and quality of surveys used to			Historical data was often collected on local
points	locate drill holes (collar and down-hole			grids. Data has been compiled using the
	surveys), trenches, mine workings and other			appropriate local grid coordinates and grid
	locations used in Mineral Resource			translations have been used to convert
	estimation.			from one grid to another and to convert
				coordinates to MGA coordinates where
				required. In the absence of a suitable RL
				datum for the area, the SRTM DTM over
				the area has been used for height control
				and plotting of sections. As Heavy Metal
				progresses work in the area it is expected
				that a more formal height datum will be
				established for the area.
	Specification of the grid system used.			The area lies within UTM Zone 54, GDA94
				datum.
	Quality and adequacy of topographic control.
Data spacing and distribution	 	Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s)	 	Regional and prospect scale surface geochemical data spacing is variable. The regional exploration data and prospects within Heavy Metal’s Mt Cobalt Corridor project area are at an early exploration stage and no resources have been estimated for the area.
		and classifications applied.
		Whether sample compositing has been
		applied.
Orientation of data in		Whether the orientation of sampling		Historical soil grids have been laid out
relation to geological		achieves unbiased sampling of possible		bearing in mind the general structural
structure		structures and the extent to which this is		grain in the area. More recent regional
		known, considering the deposit type.		drilling has been on a grid pattern based
		If the relationship between drilling		on AMG or MGA coordinates. Further
		orientation and the orientation of key		interpretation of the orientation of
		mineralised structures is considered to		mineralized zones might require a
		have introduced a sampling bias, this		different orientation of soil grids and drill
		should be assessed and reported if		holes in future.
		material.
Sample security	The	measures taken to ensure sample	No	samples are apparently available from the
	security.		historical sampling undertaken.
Audits or reviews	The	results of any audits or reviews of	No	audits or reviews of the sampling
	sampling techniques and data.		techniques and data have been undertaken at
			this time.

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Section 2: Reporting of Exploration Results

Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a license to operate in the area.  	The area reported on lies within the following Exploration Permit for Minerals Application areas s, applied for byHeavyMetal. EPMA # 26690 Burnham 26715 Mt Carol 26746 Mt Carol Extended 26765 Mt Freda South 26770 Selwyn Range Heavy Metal is in the process of notifications to land holders and native title parties to allow access to the ground.
Exploration done by other parties Acknowledgement and appraisal of exploration by other parties.  	All of the data utilised in this report has been completed and reported under the Company Report System applying to granted Exploration Permits for Minerals by the Queensland Department of Natural Resources and Mines. However, compilation in digital form and interpretation of the results of that work in digital form has been overseen by the Competent Person.
Geology Deposit type, geological setting and style of mineralisation. Various mineralisation styles are present in the Eastern Succession area of the Mt Isa Block. Copper – Gold- Cobalt mineralisation is present throughout the region hosted in Proterozoic sedimentary, ironstone, amphibolite, dolerite and granitic rock packages. These deposits are primarily localised along structures. Intrusive drivers of this mineralisation can be evident, but elsewhere the origin of the hydrothermal fluid is unknown. Ideas and interpretation of mineralisation within the Mt Cobalt Corridor area could change after Heavy Metal complete their own field work and interpretation of the results of that work. Historical mapping has been completed by BMR/GSQ, Placer, MIM, Cyprus, Arimco, BHP/Utah and others.
Drill hole information A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:  Easting and northing of the drill hole collar  Elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar  Dip and azimuth of the hole Drilling to date in the Mt Cobalt Corridor has been sparse in nature and almost exclusively shallow bedrock drilling. There are no significant base or precious metal intersections reported.

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Criteria	JORC Code explanation	Commentary	Commentary
Drill hole information	 Down hole length and interception
(cont.)	depth
	 Hole length
	If the exclusion of this information is
	justified on the basis that the information
	is not Material and this exclusion does
	not detract from the understanding of the
	report, the Competent Person should
	clearly explain why this is the case.
Data aggregation	In reporting Exploration Results,		No cut-offs have been applied in
methods	weighting averaging techniques,		reporting of the soil,	stream
	maximum and/or minimum grade		sediment, rock chip and bedrock
	truncations (e.g. cutting of high grades)		sampling exploration results.
	and cut-off grades are usually Material
	and should be stated.
	Where aggregate intercepts incorporate		No aggregate intercepts have been
	short lengths of high grade results and		applied in reporting of the soil
	longer lengths of low grade results, the		sampling exploration results.
	procedure used for such aggregation
	should be stated and some typical
	examples of such aggregations be
	shown in detail
	The assumptions used for any reporting		No metal equivalents have been
	of metal equivalent values should be		used in reporting.
	clearly stated.
Relationship between	 The relationships are particularly	No	‘true widths’ are reported as this
mineralisation widths	important in the reporting of	depends on a long and comprehensive
and intercept lengths	Exploration Results.	process of interpreting the orientation
	 If the geometry of the mineralisation	and nature of the mineralisation
	with respect to the drill hole angle is	intersected. This will probably take quite
	known, its nature should be reported	some time to complete properly.
	 If it is not known and only the down
	hole lengths are reported, there
	should be a clear statement to this
	effect (e.g. down hole length, true
	width not known).
Diagrams	Appropriate maps and sections (with	Plotting of historic exploration		results
	scale) and tabulations of intercepts	with MGA coordinates of surface		stream
	should be included for any significant	sediment, soil and rock chip data has
	discovery being reported. These should	been regional in nature. Drilling within
	include, but not be limited to a plan view	the	EPMA area has not been sufficiently
	of drill hole collar locations and	dense to plot cross sections.
	appropriate sectional views.
Balanced reporting	Where comprehensive reporting of all	All	complied sample results appear on
	Exploration Results is not practicable,	the	regional geochemical plots.
	representative reporting of both low and
	high grades and/or widths should be
	practised to avoid misleading reporting of
	Exploration Results.

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Criteria	JORC Code explanation	Commentary	Commentary
Other substantive	Other exploration data, if meaningful and		The results reported here are
exploration data	material, should be reported including		regional in nature. More sampling is
	(but not limited to): geological		required to fully understand the
	observations; geophysical survey results;		relationship to mineralisation.
	geochemical survey results; bulk		The Heavy Meat exploration team
	samples – size and method of treatment;		has considerable experience in the
	metallurgical test results; bulk density,		area and identified the potential
	groundwater, geotechnical and rock		locations of cobalt mineralisation
	characteristics; potential deleterious or
	contaminating substances.
Further work	The nature and scale of planned further		Proposed further work includes field
	work (e.g. test for lateral extensions or		work to delineate the distribution of
	depth extensions or large-scale step-out		copper-gold cobalt mineralisation.
	drilling).		Particular methods to determine the
			potential for mineralisation would
			include regional stream sediment
			sampling, soil sampling, regional
			rock chip sampling, bedrock drilling,
			ground magnetics and targeted drill
			testing. This work will be carried out
			once tenements are granted and
			access requirements to the area
			have been finalized.
	Diagrams clearly highlighting the areas		Not yet determined, waiting until
	of possible extensions, including the		ground truthing can occur after
	main geological interpretations and		EPMAs are granted.
	future drilling areas, provided this
	information is not commercially sensitive.

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