ELEMENT 25 LIMITED — Interim / Quarterly Report 2013

Jan 29, 2014

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December 2013 quarter highlights

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• Butcherbird Manganese Project 14 hole diamond drilling program completed

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• Analyses returned 19.36% to 42.15% Mn with an average grade of 34.5%

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• Peak Hill option extended to 31 January, 2014 for further consideration of $75k and 2.1m RNI options ex @ $0.20

Montezuma Mining Company Limited (ASX: MZM) continued to make further progress in relation to its exploration activities during the quarter ended 31 December 2014.

After the December quarter end, the Company received notification that Grosvenor Gold Pty Ltd (“Grosvenor”) will exercise its option to acquire 100% of the Peak Hill gold project. Subsequent to this, cash proceeds were received and settlement is scheduled for Friday, 31 January 2014.

31 December 2013 Quarterly Report

Market data ASX code: MZM Share price: $0.10 Shares on issue: 70,464,350 Market cap $7.05m Cash at 31/12/2013 $5.83m

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Share price
0.15
0.10
0.05
0.00
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Substantial shareholders	Substantial shareholders
Shareholder	Holding	% held
JPMorgan Nominees	5,826,234	8.27
Duketon Mining Ltd	5,382,500	7.64
Ranguta Ltd	5,326,375	7.56
Zero Nominees	4,475,000	6.35
Alpha Boxer Ltd	4,002,500	5.68

Board and management Chairman Seamus Cornelius Executive Director Justin Brown Non-Executive Director John Ribbons CEO Mike Moore

Butcherbird (100%)

During the December 2013 quarter, a 14 hole, HQ sized (63 mm diameter) diamond drilling program totalling 474 metres (BBDD010 to BBDD023), was completed at Montezuma’s 100% owned Butcherbird Manganese Project (see Table 1). The Project is located approximately 120 km south of the township of Newman in Western Australia. Eight manganese deposits have been delineated within Butcherbird with a total inferred resource (JORC 2004) inventory of 119 million tonnes @ 11.6% (i.e. lower cut of 10% Mn) and an additional 55.9 million tonnes @ 9.3% Mn (i.e. within the 8% to 10% Mn range) (Appendix 1). The purpose of the HQ diamond drilling program was to collect core samples for metallurgical studies. Ore Characterisation and preliminary geotechnical logging were also conducted. Subsequent to drilling, the program included detailed geological logging, petrographic and mineralogical studies plus metallurgical test work. Relatively shallow, vertical diamond holes were completed within four of the Project’s manganese deposits with the majority drilled into Yanneri Ridge, the largest resource defined to date (Figure 1).

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An improved geological understanding of ore character and host rocks has already been gained from work completed on selected ore samples. Detailed geological logging indicates the ore is hosted in two geological domains; the Upper Saprolite and the combined Lower Saprolite/Saprock. The ore occurs as manganese rich bands or layers predominantly in the range of 1 to 5cm thick intercalated with clays within the weathering profile of the fine-grained sedimentary host rock. Based on logging of diamond hole BBDD012 the cumulative volume of the high-grade bands within the ore zone is approximately 10%, which is approximately 20% by weight. An initial sampling and analysis exercise of the competent high-grade manganese bands gave the following Ore Characterisations (assays are based on results given in Table 2).

Generalised Ore Character of Manganese bands hosted in Upper Saprolite zone:

• Highest grade Manganese bands are hosted in the upper Saprolite (RUS), range of analyses returned 19.36% to 42.15% Mn with an average grade of 34.5%.

• Deleterious elements are in an acceptable range returning average grades of 8.7% Fe, 18.5% SiO2, 5% Al203 and 0.07% P.

• The highest grade of 42%Mn comes from a shallow near surface band confirming empirical observations that surface and near surface material has undergone several phases of enrichment (i.e. multiple phases of mobilisation and precipitation).

Generalised Ore Character of Mn bands hosted in combined Lower Saprolite and Saprock Zones:

• Composition of bands is approximately 50% combined Mn + Fe ore with the average Mn subordinate to the Fe content.

• Composition of bands is more variable than in the upper saprolite with the following ranges of 6% to 32% Mn and 11% to 38% Fe .

• Sample from BBDD012 from 29.02-29.07m shows that not all bands within the lower zones are Fe rich.

Observations are based on a small population of manganese band sampling and further analyses are required to confirm these generalisations. Geological logging shows the Upper Saprolite host domain is thickest, predominantly 20 metre thick and the combined Lower Saprolite/Saprock domain is generally in the order of 5 metre thick (Figure 2).

Metallurgical test work involving scrubbing and screening is currently underway to determine potential beneficiate ore product.

Table 1: Drill Hole Collar Data – HQ Diamond Drill Holes – Butcherbird Project

Prospect	Site ID	MGA East	MGA North	MGA RL	Max Depth	Dip	Azimuth
Yanneri Ridge	BBDD011	774695.210	7298006.410	623.580	20.0	-90	000
Yanneri Ridge	BBDD012	773899.640	7298003.770	635.220	34.4	-90	000
Yanneri Ridge	BBDD013	773302.310	7298004.820	631.460	32.1	-90	000
Yanneri Ridge	BBDD014	773302.360	7298002.300	631.490	31.8	-90	000
Coodamudgi	BBDD015	773851.190	7299099.600	619.900	38.2	-90	000
Coodamudgi	BBDD016	772691.170	7298698.630	619.420	32.1	-90	000
Yanneri Ridge	BBDD017	772500.310	7297999.300	625.110	33.3	-90	000
Yanneri Ridge	BBDD018	772098.330	7297802.380	621.410	32.1	-90	000
Richies Find	BBDD019	771497.910	7297298.580	617.360	33.6	-90	000
Richies Find	BBDD020	770599.540	7297500.520	609.590	34.5	-90	000
Bindi Bindi Hill	BBDD021	764598.720	7299298.010	629.930	35.0	-90	000
Bindi Bindi Hill	BBDD022	765496.200	7299298.670	628.890	23.0	-90	000
Bindi Bindi Hill	BBDD023	765599.170	7299650.440	622.080	35.0	-90	000
Bindi Bindi Hill	BBDD010	765594.980	7299956.830	620.270	59.2	-70	180

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Figure 1: December 2013 Quarter - Diamond Drill Collars - Butcherbird Project

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Figure 2: Schematic Cross Section showing the location of recent diamond drill hole BBDD012

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Table 2: Analysis of Selective Manganese-rich Bands from Diamond Drill Core

	Hole ID	Depth	Depth	Host	Mn %	Fe %	SiO2 %	Al2O3	P %	LOI
Prospect		From	to	Lithology				%		1000C
Richies Find	BBDD020	25.56	25.61	RSR	17.6	24.1	22.7	5.6	0.08	9.8
Richies Find	BBDD020	15.63	15.695	RUS	36.9	8.2	17.3	4.7	0.03	9.4
Bindi Hill	BBDD027	19.36	19.4	RSL	6.1	37.8	20.2	6.0	0.37	7.9
Coodamudgi	BBDD016	5.85	5.9	RUS	42.2	2.9	16.3	5.0	0.10	10.8
Yanneri Ridge	BBDD013	24.8	24.85	RUS	19.5	17.0	28.0	6.8	0.13	10.1
Bindi Hill	BBDD022	5.3	5.33	RUS	31.7	14.5	17.4	4.5	0.06	9.6
Bindi Hill	BBDD022	17.2	17.225	RSL	12.2	27.4	23.8	7.3	0.18	9.8
Yanneri Ridge	BBDD012	30.78	30.8	RSR	14.5	26.1	22.4	6.9	0.35	10.2
Yanneri Ridge	BBDD012	21.050	21.085	RUS	30.6	6.8	23.0	6.1	0.10	11.5
Yanneri Ridge	BBDD012	14.36	14.38	RUS	31.4	11.4	18.8	4.8	0.05	10.7
Yanneri Ridge	BBDD012	29.02	29.07	RSL	32.3	11.0	19.6	5.0	0.12	10.1
Average	Upper Saprolite			RUS	34.5	8.7	18.5	5.0	0.07	10.4
Average	Lower Saprolite			RSL &	17.0	29.5	22.8	9.1	0.20	9.6
	Saprock			RSR

Note: Selective manganese-rich bands 2 to 6.5 centimetres thick collected from HQ diamond core drilled through previously defined low-grade manganese ore zones. Analysis by ALS Laboratory, Perth by XRF method.

Peak Hill/Durack (85-100%)

Montezuma has an option agreement with Grosvenor Gold Pty Ltd (Grosvenor), a wholly owned subsidiary of Resource and Investment NL (ASX:RNI) (“RNI”) whereby Grosvenor may acquire 100% of Montezuma Mining’s interest in the Peak Hill Project by the acquisition of Peak Hill Metals Pty Ltd (a wholly owned subsidiary of Montezuma Mining)[1] . The key terms of the agreement are:

• Grosvenor paid an initial option fee for an exclusive option until 29 March 2013, and has subsequently extended the option period to 31 January 2014.

• In consideration for the recent extension, RNI paid Montezuma $75,000 in cash and will also issue Montezuma with 2.1 million RNI options exercisable at $0.20 within three years of the date of issue.

• Grosvenor being able to exercise the option at any time prior to expiry by paying Montezuma Mining $2.8 million in cash, and issuing 8,400,000 fully paid ordinary shares in RNI, and 2.1 million 35 cent options in RNI.

• If the option is exercised, Grosvenor must also grant Montezuma Mining a 1% Gross Royalty, capped at $1 million, on all revenue it receives from production from the Peak Hill Project.

• Grosvenor must meet minimum expenditure commitments on the project during the option period.

1 After the December 2013 quarter end, Montezuma announced RNI’s intention to exercise its option. For further information refer to ASX announcements dated 29 January 2014.

Low-cost gold production pathway for Grosvenor and Peak Hill

RNI announced on 6 November 2013 that updated feasibility studies confirmed the Grosvenor and Peak Hill gold projects in Western Australia’s Bryah Basin can generate robust and sustainable financial returns. The updated studies have doubled the mine life to an initial eight years.

Significantly, the studies produced weighted average life-of-mine cash operating costs of $A990/oz, which meets RNI’s stated goal of identifying a low-cost and near-term production pathway for Grosvenor and the adjoining Peak Hill project targeting costs of less than $A1,000/oz.

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The feasibility studies were undertaken to evaluate the economics of mining various resources within the Grosvenor and Peak Hill projects, which have combined gold resources of approximately two million ounces. Multiple processing options were examined involving the existing 1Mtpa carbon-in-leach (CIL) facility and various leaching options. The studies have concluded that utilising RNI’s CIL gold processing plant and heap leaching lower grade Grosvenor and Peak Hill mineralisation gives the best economic outcome.

Key findings include:

• Gold production significantly increased to approximately $850Koz gold over eight years;

• Weighted average cash costs of approximately $A990/oz over the life of mine;

• Life of mine revenues of over $1.1 billion (using a modelled gold price of $A1,400/oz) and net cash flows (pre-tax, post capex and sustaining capex) of over $200 million;

• Net Present Value of $149 million (pre-tax) using an 8% (real) discount rate;

• Two-year payback on pre-production capital expenditure of $40.5 million;

• 82% internal rate of return.

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ASX Additional Information for Quarterly Report to 31 December 2013

	Tenement reference	Location	Interest at beginning ofquarter	Acquired / Disposed	Interest at end of quarter
The mining tenements held at the end of the quarter and their location	E52/2350	Butcher Bird WA	100%	N/A	100%
	P52/1227	Robinson Range WA	100%	N/A	100%
	P52/1233	Robinson Range WA	70%	Disposed	Nil
	E52/1529	Mt Padbury WA	100%(royalty on iron ore and manganese)	N/A	100%(royalty on iron ore and manganese)
	E52/2237	Peak Hill WA	100%	N/A	100%
	E52/2413	Peak Hill WA	100%	N/A	100%
	E52/2471	Peak Hill WA	85%	N/A	85%
	E52/2472	Peak Hill WA	100%	N/A	100%
	M52/35	Peak Hill WA	100%	N/A	100%
	M52/474	Peak Hill WA	100%	N/A	100%
	M52/56	Peak Hill WA	100%	N/A	100%
	M52/297	Peak Hill WA	100%	N/A	100%
	P52/1343	Peak Hill WA	85%	N/A	85%
	P52/1344	Peak Hill WA	85%	N/A	85%
	P52/1345	Peak Hill WA	85%	N/A	85%
	P52/1348	Peak Hill WA	85%	N/A	85%
	P52/1234	Peak Hill WA	100%	N/A	100%
	P52/1189	Peak Hill WA	85%	N/A	85%
	P52/1190	Peak Hill WA	85%	N/A	85%
	P52/1191	Peak Hill WA	85%	N/A	85%
	P52/1192	Peak Hill WA	85%	N/A	85%
	P52/1193	Peak Hill WA	85%	N/A	85%
	M52/801	Peak Hill WA	85%	N/A	85%
	E70/4465	Jubuk WA	100%	N/A	100%

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	Tenement reference	Location	Interest at beginning ofquarter	Acquired / Disposed	Interest at end of quarter
	E53/1801	Mt Fisher WA	Nil	Acquired	100%
	E38/2889	Malle Hen Point WA	Nil	Acquired	100%
	E39/1781	Tropicanna WA	100%	N/A	100%
	E39/1746	Tropicanna WA	100%	Disposed	Nil
	E28/2302	Green Dam WA	100%	N/A	100%
	E28/2313	Green Dam WA	100%	N/A	100%
	E28/2327	Green Dam WA	100%	N/A	100%
	E57/928	Currans Find WA	100%	N/A	100%
	E20/815	Weld Range WA	100%	N/A	100%
	E52/2647	Little Well South WA	100%	N/A	100%
	E52/2969	Plutonic North WA	100%	N/A	100%
	E52/2831	Millidie Creek WA	100%	N/A	100%
	E51/1622	Telegraph Well WA	Nil	Acquired	100%
	E52/2759	Horseshoe Lights North WA	100%	N/A	100%
	E52/2658	Butcherbird South WA	100%	N/A	100%
	E52/2727	Butcherbird East WA	100%	N/A	100%
	E52/2895	Butcherbird West WA	100%	N/A	100%
	E52/2806	Butcherbird North WA	100%	N/A	100%
	E52/2808	Butcherbird North East WA	100%	N/A	100%
	E52/2809	Woolbunna Bore WA	100%	Disposed	Nil
	E52/2951	Butcherbird North WA	100%	N/A	100%
	E52/2953	Butcherbird North WA	100%	N/A	100%
	E52/2971	Beatty Park South WA	100%	Disposed	Nil
	E20/659	Eelya Hill WA	10%	N/A	10%
	P20/2018	Eelya Hill WA	10%	N/A	10%
	P52/1417	Peak Hill WA	85%	N/A	85%
	P52/1418	Peak Hill WA	85%	N/A	85%
	P52/1419	Peak Hill WA	85%	N/A	85%
	E47/2817	Hamersley Range WA	100%	N/A	100%
	E47/2818	Hamersley Range WA	100%	N/A	100%
	E47/2819	Hamersley Range WA	100%	N/A	100%
	E46/982	Pilbara WA	100%	N/A	100%
	E09/1985	Yalbra WA	15%	N/A	15%
	E37/1147	Leonora WA	100%	N/A	100%
	E37/1176	Leonora WA	Nil	Acquired	100%
	L52/2	Peak Hill WA	100	N/A	100%
	L52/19	Peak Hill WA	100%	N/A	100%
	L52/20	Peak Hill WA	100%	N/A	100%
	L52/39	Peak Hill WA	100%	N/A	100%

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	Tenement reference	Location	Interest at beginning ofquarter	Acquired / Disposed	Interest at end of quarter
	L52/62	Peak Hill WA	100%	N/A	100%
	L52/63	Peak Hill WA	100%	N/A	100%
Beneficial percentage interests held in farm-in or farm-out agreement	E45/2375	Pilgangoora WA	10%(no tin-tantalum- lithium rights)	N/A	10%(no tin-tantalum- lithium rights)

FOR MORE INFORMATION…

Mike Moore Ronn Bechler Chief Executive Officer Investor Relations, Market Eye Phone: +61-8 6315 1400 Phone: +61-400 009 774 Email: mmoore@montezuma.com.au Email: ronn.bechler@marketeye.com.au

Company information, ASX announcements, investor presentations, corporate videos and other investor material on the Company’s projects can be viewed at http://www.montezumamining.com.au.

About Montezuma Mining

Listed in 2006, Montezuma Mining Company Ltd (ASX: MZM) is a diversified explorer primarily focused on manganese, copper and gold.

The Information in this report that relates to Exploration Results is based on information compiled by Mr Mark Gunther, who is a member of the Australian Institute of Geoscientists. Mr Gunther is a geologist who is a part- time employee of Montezuma Mining Company Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Gunther consents to the inclusion in the release on the matters based on information in the form and context in which it appears.

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Appendix 1: Butcherbird Inferred Resource Estimates (MZM, ASX 7th December 2011)

Classification		Inferred Resource
Cut-off		10% Mn
Deposit	Tonnes (Mt)	Mn (%)
Bindi Bindi Hill	8.75	11.09
Budgie Hills	1.03	10.82
Cadgies Flats	0.25	11.08
Coodamudgi	12.9	11.48
Illgararie Ridge	17.0	10.71
Mundawindi	14.2	12.23
Richies Find	16.1	11.56
SUBTOTAL	70.2	11.4
Yanneri Ridge	48.8	11.8
GLOBAL TOTAL	119.0	11.6

Additional Resources estimated with 8% Mn cut for beneficiated product grading under 35% Mn.

Classification		Inferred Resource
Cut-off		8-10% Mn
Deposit	Tonnes (Mt)	Mn (%)
Bindi Bindi Hill	5.7	9.2
Budgie Hills	3.5	8.9
Cadgies Flats	0.2	9.1
Coodamudgi	3.6	9.5
Illgararie Ridge	18.5	9.2
Mundawindi	2.1	9.4
Richies Find	6.6	9.4
SUBTOTAL	40.1	9.3
Yanneri Ridge*	15.8	9.4
GLOBAL TOTAL	55.9	9.3

Note: Resource estimate was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC 2012 on the basis that the resource estimate has not materially changed since it was last reported by independent consultants Snowden Mining Industry Consultants announced by Montezuma Mining Company in ASX release 7[th] December 2011.

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Appendix 2 JORC Code, 2012 Edition Compliance – Table 1

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling	 Nature and quality of sampling (eg cut	 14 HQ3 diameter, diamond holes were drilled at
techniques	channels, random chips, or specific	Butcherbird Project for 474.3m.
	specialised industry standard	Thirteen holes were drilled vertical to intersect
	measurement tools appropriate to the	geological horizons at as close to perpendicular as
	minerals under investigation, such as down	possible. One hole was drilled at 70 degrees to take
	hole gamma sondes, or handheld XRF	structural measurements. Sampling was undertaken
	instruments, etc). These examples should	by selecting potential manganese rich horizons or
	not be taken as limiting the broad meaning	bands.
	of sampling.	 Drill hole collars were located using Handheld GPS
	 Include reference to measures taken to	and subsequently picked up by a licensed surveyor
	ensure sample representivity and the	using DGPS. Logging of the drill core included colour,
	appropriate calibration of any	lithology, weathering, texture, structure, alteration,
	measurement tools or systems used.	core recovery, RQD’s and fracture frequency’s.
	 Aspects of the determination of	Sampling and QAQC was as per industry best practice
	mineralisation that are Material to the	protocols.
	Public Report.In cases where ‘industry	 Diamond core was sampled by selecting Mn-rich
	standard’ work has been done this would	bands 2 to 6.5cm thick.
	be relatively simple (eg ‘reverse circulation	The samples were sent to Intertek Genalysis in Perth
	drilling was used to obtain 1 m samples	where they were pulverized to form pulps. The pulps
	from which 3 kg was pulverised to produce	were then assayed using XRF, on a Li borate fused
	a 30 g charge for fire assay’). In other cases	bead, for a Mn suite of elements including Mn, Al2O3,
	more explanation may be required, such as	BaO, CaO, Cr2O3, Cu, Fe2O3, K2O, MgO,Na2O, P2O5,
	where there is coarse gold that has	Pb, SiO2, SO3, TiO2, V2O5and LOI’s at 350⁰, 600⁰ and
	inherent sampling problems. Unusual	1000⁰ (Intertex code FB1/XRF25).
	commodities or mineralisation types (eg
	submarine nodules) may warrant
	disclosure of detailed information.
Drilling	 Drill type (eg core, reverse circulation,	 The drilling technique used was triple tube HQ
techniques	open-hole hammer, rotary air blast, auger,	diameter diamond coring with hole depths from 20m
	Bangka, sonic, etc) and details (eg core	to 59.2m. One of the fourteen holes drilled at an
	diameter, triple or standard tube, depth of	angle. This hole was oriented using a Reflex digital
	diamond tails, face-sampling bit or other	orientation tool.
	type, whether core is oriented and if so, by
	_what method, etc). _
Drill sample	 Method of recording and assessing core	 Diamond core recoveries were recorded. The
recovery	and chip sample recoveries and results	majority of recoveries were good and there were
	assessed.	minimal recovery problems.
	 Measures taken to maximise sample	 Drilling was slow due to short runs being drilled to
	recovery and ensure representative nature	maintain recoveries.
	of the samples.	 There is no observable relationship between
	 Whether a relationship exists between	recovery and grade, and therefore no sample bias.
	sample recovery and grade and whether
	sample bias may have occurred due to
	preferential loss/gain of fine/coarse
	material.
Logging	 Whether core and chip samples have been	 Detailed hard copy logging was conducted on all of
	geologically and geotechnically logged to a	the drill holes. These have been digitized and are
	level of detail to support appropriate	stored in the database.
	Mineral Resource estimation, mining	 Logging of the drill core included colour, lithology,
	studies and metallurgical studies.	weathering, texture, structure, alteration, core
	 Whether logging is qualitative or	recovery, RQD’s and fracture frequency’s. All core
	quantitative in nature. Core (or costean,	was photographed.
	channel, etc) photography.	 All holes were logged in full.
	 The total length andpercentage of the

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	relevant intersections logged.
Sub-	 If core, whether cut or sawn and whether	 Selective whole core taken for analysis and
sampling	quarter, half or all core taken.	metallurgical test work. Some quarter core was taken
techniques	 If non-core, whether riffled, tube sampled,	for analysis.
and sample	rotary split, etc and whether sampled wet	 Not applicable.
preparation	or dry.	 The sample preparation followed industry best
	 For all sample types, the nature, quality	practice standards. This involved oven drying and
	and appropriateness of the sample	then pulverization of the entire sample in a LM5 or
	preparation technique.	equivalent pulverizing mill to 85% passing 75 micron.
	 Quality control procedures adopted for all	 Due to the small number of samples and their nature
	sub-sampling stages to maximise	QC involves the review of laboratory supplied
	representivity of samples.	certified reference material. These QC results are
	 Measures taken to ensure that the	reported by the laboratory with the final assay
	sampling is representative of the in situ	results.
	material collected, including for instance	Anomalous samples were checked against logging
	results for field duplicate/second-half	and field observations, Selected samples were
	sampling.	reanalyzed to confirm anomalous results.
	 Whether sample sizes are appropriate to	 As whole core was used, field duplicates were not
	the grain size of the material being	taken.
	sampled.	 The samples sizes are considered more than
		adequate to ensure there are noparticle size effects.
Quality of	 The nature, quality and appropriateness of	 The samples were sent to Intertek Genalysis in Perth
assay data	the assaying and laboratory procedures	where the complete samples were pulverized to form
and	used and whether the technique is	pulps. The pulps were then assayed using XRF, on a Li
laboratory	considered partial or total.	borate fused bead, for a Mn suite of elements
tests	 For geophysical tools, spectrometers,	including Mn, Al2O3, BaO, CaO, Cr2O3, Cu, Fe2O3,
	handheld XRF instruments, etc, the	K2O, MgO,Na2O, P2O5, Pb, SiO2, SO3, TiO2, V2O5
	parameters used in determining the	and LOI’s at 350⁰, 600⁰ and 1000⁰ (Intertex code
	analysis including instrument make and	FB1/XRF25). This is considered a total sample
	model, reading times, calibrations factors	analysis.
	applied and their derivation, etc.	 No geophysical or portable analysis tools were used
	 Nature of quality control procedures	to determine assay values stored in the database.
	adopted (eg standards, blanks, duplicates,	 Internal laboratory control procedures involve
	external laboratory checks) and whether	duplicate assaying of randomly selected pulps as well
	acceptable levels of accuracy (ie lack of	as internal laboratory standards. All of this data is
	bias) and precision have been established.	reported to the company and analysed for
		consistency and any discrepancies.
Verification	 The verification of significant intersections	 The Company Exploration Manager visually inspected
of sampling	by either independent or alternative	and verified the significant drill intersections.
and	company personnel.	 Previous RC drilling was twinned by this diamond
assaying	 The use of twinned holes.	program along with one twinned diamond holes for
	 Documentation of primary data, data entry	display purposes.
	procedures, data verification, data storage	 Graphical hardcopy logs were used for field logging
	(physical and electronic) protocols.	and these were then digitized for storage in the
	 Discuss any adjustment to assay data.	database.
		 No adjustments or calibrations have been made to
		any data.
Location of	 Accuracy and quality of surveys used to	 Drill hole locations have been identified using DGPS
data points	locate drill holes (collar and down-hole	by a licensed surveyor.
	surveys), trenches, mine workings and	 MGA_GDA94 Zone 50
	other locations used in Mineral Resource	 The topographic surface was generated from
	estimation.	surveyed drill collar locations and digital terrain
	 Specification of the grid system used.	models.
	 Quality and adequacy of topographic
	control.
Data	 Data spacing for reporting of Exploration	 The drill hole spacing was variable.
spacing and	Results.	 Not applicable
distribution	 Whether the data spacing and distribution	 Not applicable
	is sufficient to establish the degree of

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	geological and grade continuity
	appropriate for the Mineral Resource and
	Ore Reserve estimation procedure(s) and
	classifications applied.
	 Whether sample compositing has been
	applied.
Orientation	 Whether the orientation of sampling	 Holes were drilled perpendicular to the resource.
of data in	achieves unbiased sampling of possible	Angle hole was drilled outside the current defined
relation to	structures and the extent to which this is	resource.
geological	known, considering the deposit type.	 No sampling biased is believed to have been
structure	 If the relationship between the drilling	introduced.
	orientation and the orientation of key
	mineralised structures is considered to
	have introduced a sampling bias, this
	should be assessed and reported if
	material.
Sample	 The measures taken to ensure sample	 Sample security is managed by the company. After
security	security.	preparation and logging in the field the core, in core
		trays, was packed onto pallets for shipping back to
		Perth. The core trays were transported by a private
		contractor directly to ALS Metallurgical Laboratories.
		The laboratory unloaded and conducted an audit on
		the core delivered and reported back to the company.
		The company has inspected the core at the
		Laboratory. No discrepancies werefound.
Audits or	 The results of any audits or reviews of	 No reviews of sampling techniques have been carried
reviews	sampling techniques and data.	out. Occasionally the company conducts its own
		internal data audits.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral	 Type, reference name/number, location	 The drilling was conducted on Montezuma Mining’s
tenement and	and ownership including agreements or	wholly owned E52/2350 exploration tenement.
land tenure	material issues with third parties such as	 The tenement is in good standing and no known
status	joint ventures, partnerships, overriding	impediments exist.
	royalties, native title interests, historical
	sites, wilderness or national park and
	environmental settings.
	 The security of the tenure held at the time
	of reporting along with any known
	impediments to obtaining a licence to
	operate in the area.
Exploration	 Acknowledgment and appraisal of	 Previous exploration identified some anomalism
done by other	exploration by other parties.	and identified mineral occurrences but the
parties		manganese deposits have been defined by
		Montezuma.
Geology	 Deposit type, geological setting and style	 The geological setting consists of Proterozoic, fine
	of mineralisation.	grained, sedimentary host rocks of the Ilgarari Bed
		formation. The style of mineralization is that of
		supergene enrichment of relatively flat lying
		manganiferous beds within the near surface
		saprolite weathering zones. Overall low grade
		deposits comprising of thin (1-5cm), moderate to
		highgrade,manganese bands.
Drill hole	 A summary of all information material to	 Refer to Tables 1 and 2 in text above.
Information	the understanding of the exploration
	results including a tabulation of the

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	following information for all Material drill
	holes:
	o easting and northing of the drill hole
	collar
	o elevation or RL (Reduced Level –
	elevation above sea level in metres) of
	the drill hole collar
	o dip and azimuth of the hole
	o down hole length and interception
	depth
	o 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	 In reporting Exploration Results,	 Due to the flat lying nature of the ore intercepts are
aggregation	weighting averaging techniques,	near true width. No cuts have been applied.
methods	maximum and/or minimum grade	 Not applicable.
	truncations (eg cutting of high grades)	 Not applicable.
	and cut-off grades are usually Material
	and should be stated.
	 Where aggregate intercepts incorporate
	short lengths of high grade results and
	longer lengths of low grade results, the
	procedure used for such aggregation
	should be stated and some typical
	examples of such aggregations should be
	shown in detail.
	 The assumptions used for any reporting
	of metal equivalent values should be
	clearly stated.
Relationship	 These relationships are particularly	 No definite relationships between mineralization
between	important in the reporting of Exploration	widths and intercept lengths are known from this
mineralisation	Results.	drilling as only selective sampling of high grade
widths and	 If the geometry of the mineralisation with	manganese bands has been conducted thus far.
intercept	respect to the drill hole angle is known, its
lengths	nature should be reported.
	 If it is not known and only the down hole
	lengths are reported, there should be a
	clear statement to this effect (eg ‘down
	_hole length, true width not known’). _
Diagrams	 Appropriate maps and sections (with	 Refer to Figures 1 and 2 in the text.
	scales) and tabulations of intercepts
	should be included for any significant
	discovery being reported These should
	include, but not be limited to a plan view
	of drill hole collar locations and
	appropriate sectional views.
Balanced	 Where comprehensive reporting of all	 All selective sampling analyses have been reported.
reporting	Exploration Results is not practicable,
	representative reporting of both low and
	high grades and/or widths should be
	practiced to avoid misleading reporting of
	Exploration Results.
Other	 Other exploration data, if meaningful and	 Not applicable.
substantive	material, should be reported including
exploration	(but not limited to): geological
	observations; geophysical survey results;

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data		geochemical survey results; bulk samples
		– size and method of treatment;
		metallurgical test results; bulk density,
		groundwater, geotechnical and rock
		characteristics; potential deleterious or
		contaminating substances.
Further work		The nature and scale of planned further	 Further metallurgical test work is currently being
		work (eg tests for lateral extensions or	undertaken on the diamond drill core.
		depth extensions or large-scale step-out
		drilling).
		Diagrams clearly highlighting the areas of
		possible extensions, including the main
		geological interpretations and future
		drilling areas, provided this information is
		not commercially sensitive.

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