EMERALD RESOURCES NL — Interim / Quarterly Report 2020

Jan 19, 2020

ASX Announcement & Media Release

20 January 2020

Fast Facts

ASX Code: EMR Shares on issue: 3,048 million Market Cap: ~$134 million Cash: A$10.7 million (31 December 2019) Listed Investments: $0.05 million (31 Dec 2019)

Board & Management

Simon Lee AO, Non-Executive Chairman Morgan Hart, Managing Director Mick Evans, Executive Director Ross Stanley, Non- Executive Director Ross Williams, Non-Executive Director Mark Clements, Company Secretary Brett Dunnachie, Chief Financial Officer

Company Highlights

• First mover in an emerging gold province in Cambodia

• Mineral Investment Agreement and Industrial Mining Licence granted over the Okvau Gold Project (100% owned) allowing for the development of the Okvau Deposit

• Okvau Deposit: Indicated and Inferred Mineral Resource Estimate of 1.14Moz at 2.0g/t Au (refer Table 1)

• DFS completed and demonstrates high grade, low cost, compelling development economics:

• Ore Reserve of 14.3Mt & 2.0g/t Au for 0.9Mozs in a single open pit with waste:ore ratio of 5.8:1

• LOM average annual production of 106,000ozs pa

• AISC US$754/oz over LOM

• Using US$1.450/oz Au gold price:

  • NPV(5%) US$337M pre-tax and US$238M post-tax

  • IRR 69% pa pre-tax and 57% posttax

  • Payback ~1.4 years pre-tax and 1.7 years post-tax

• Highly credentialed gold project development team

• Significant resource growth potential

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Quarterly Report for the period ended 31 December 2019

Highlights

Cambodian Activities

Okvau Gold Project

Project Finance

• Approval of Mineral Investment Agreement (‘MIA’) by Cambodian Council of Ministers and subsequent execution by the Minister of Mines & Energy and the Minister of Economy & Finance. The MIA provides certainty and stability of the fiscal regime for the Okvau Gold Project development and operations was received;

• Uplift in NPV to US$337M (A$488M) and IRR to 69% following an internal evaluation of original key assumptions applied to DFS demonstrates compelling economics of the Okvau Gold Project;

• US$60M Project Facility with Sprott Private Resource Lending II L.P. (“Sprott”) for development of the Okvau Gold Project nearing finalisation;

Development Activities

• Okvau Access Road materially complete including completion of the 35 tonne concrete bridge over the Prek Te river and substantial completion of new and existing road upgrades;

• Powerline to supply grid power to site progressing to provide power to the project in advance of commissioning;

• Third phase of drilling to define mineralised domain (refer ASX Announcement dated 16 January 2020) .

Exploration, Joint Venture Agreement and other tenure

Koan Nheak Project

• New drilling results received from Peacock Soil Anomaly includes 8m @ 3.61g/t from 31m (RC19PCK03) (refer to ASX Announcement dated 31 October 2019) ;

Phnom Khtong Project

• Emerald followed up on previously announced geochemical auger soil sampling programme at the Oh Tron prospect returning peak gold-in-soils results of 370, 221 and 217 ppb Au (refer to ASX Announcement dated 31 October 2019) ;

Snoul Project

• Emerald followed up on previously announced geochemical auger soil anomalies within the Snoul Project, extending the Ok Pok anomaly and confirming a new gold anomaly on the Sam Rong Prospect;

Registered Office 1110 Hay Street West Perth WA 6005

• Planning commenced for Emerald’s maiden reconnaissance drill testing at both the Phnom Khtong and Snoul projects.

T: +61 8 9286 6300 F: +61 8 6243 0032

W: www.emeraldresources.com.au

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Cambodian Gold Project

Summary

Emerald’s main focus is the exploration and development of its Cambodian Gold Projects which comprise of a combination of 100% owned granted licences, applications and earn-in & joint venture agreements covering a combined area of 1,442 km². The 100% owned Okvau Gold Project (‘Okvau Gold Project’) is the Company’s most advanced project which is located approximately 275 kilometres north-east of Cambodia’s capital city of Phnom Penh in the province of Mondulkiri (refer Figures 1 and 2). The town of Kratie is located on the Mekong River approximately 90 kilometres to the west and the capital of Mondulkiri, Saen Monourom is located approximately 60 kilometres to the south-east. In May 2017, Emerald completed a Definitive Feasibility Study (‘DFS’) on the development of the Okvau Gold Project which demonstrated a robust project producing approximately 106,000 ounces of gold per annum on average over 7 years from a single open pit.

In July 2018 the Company was granted the Industrial Mining Licence covering 11.5 km² which allows for the development of the Okvau Gold Project. The Mining Licence has an initial 15-year period with the right to two renewals of up to 10-years for each renewal in accordance with Cambodian laws. The grant of the Mining Licence followed approval of the Okvau Gold Project by the Office of Council Ministers for both the rezoning of the project area to ‘Sustainable Use’ within the Phnom Prich Wildlife Sanctuary (‘PPWS’) and the granting of the Mining Licence. The rezoning of the Mining Licence area to ‘Sustainable Use’ lawfully permits commercial development under Cambodian law and follows the successful negotiation and approval by the Minister of Environment (‘MoE’) of the environmental contract (the ‘Environmental Contract’) and environmental licence (‘Environmental Licence’) in December 2017.

The Company has successfully completed the resettlement of 62 local families and site works to remove abandoned structures away from the Okvau Mining Licence area. Emerald has completed the installation of a security fence around the Project Development Area (“PDA”) to ensure the safety of personnel, visitors and wildlife. Construction of a 35 tonne bridge across the Prek Te River has now been completed with substantial completion of upgrades to the existing 50km of dirt roads and current finalisation of the construction of 14km of new road to site which will allow for all year continuous access to the Okvau site.

Topography of the tenure area is relatively flat with low relief of 80 metres to 200 metres above sea level. The Okvau Deposit and other gold occurrences within the tenure are directly associated with diorite and granodiorite intrusions and are best classed as Intrusive Related Gold mineralisation. Exploration to date has demonstrated the potential for large scale gold deposits with the geology and geochemistry analogous to other world class Intrusive Related Gold districts, in particular the Tintina Gold Belt in Alaska (Donlin Creek 38Moz, Pogo 6Moz, Fort Knox 10Moz, Livengood 20Moz).

In December 2019 the Mineral Investment Agreement (‘MIA’) was signed which provides certainty and stability of the fiscal regime for the development and operations of the Okvau Gold Project. Following confirmation of the key fiscal incentives of the MIA, the key assumptions and inputs of the DFS were reviewed resulting in a significant improvement in the NPV and IRR of the Project.

Figure 1| Cambodian Gold Project | Location

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Figure 2| Cambodian Gold Project | Exploration Licence Areas

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Activities during the Quarter

Okvau Gold Project

Okvau Gold Project | Definitive Feasibility Study

Following the approval of the MIA by the Cambodian Council of Ministers and subsequent execution by the Minister of Mines & Energy and the Minister of Economy & Finance, Emerald reviewed key assumptions and inputs of its DFS and the financial incentives of the MIA. Based on the prevailing gold price of US$1,450/oz, and updating the key assumptions and inputs, the NPV (5%) of the Okvau Gold Project significantly improved to US$337M (A$488M) pre-tax and US$238M (A$345M) post-tax with an outstanding Internal Rate of Return (IRR) of 69% pa pre-tax and 57% post-tax. The payback of the total capital funding requirement is now expected to be 17 months pre-tax and 20 months post-tax, from first gold pour.

The significant improvement in the NPV and IRR is the result of an ongoing effort by Emerald to critically examine and pursue improvements in all aspects of the 1.14Moz at 2.0g/t Au Okvau Gold Project economics. The comparison to the NPV announced as part of the DFS is outlined at Tables 3-4. Of note, the uplift is primarily based upon a gold price of US$1,450/oz and concessions negotiated within the MIA.

An initial DFS was completed in May 2017 which was subsequently updated in November 2019 for the development of a 2.0Mtpa operation at the Okvau Gold Project and was completed to +/-15% level of accuracy (refer Table 3). The completion of the DFS fulfilled a milestone set by Emerald since becoming involved in the project in March 2016. The DFS confirms an initial operating LOM of over 7 years, producing approximately 106,000 ounces of gold per annum on average, with ore processed through a plant utilising a single stage crushing circuit and SAG mill, sulphide flotation, regrind mill followed by conventional cyanide leaching.

The estimated operating costs highlight a financially robust project with an average LOM AISC of US$731/oz. The estimated development costs are US$91M with a further US$7M in mining contractor establishment costs and pre-production mining costs. The development costs include a US$4.4M allowance for spare parts and first fills.

An updated independent JORC Indicated and Inferred Mineral Resource estimate for the Okvau Deposit of 17.7Mt grading 2.01g/t gold containing 1.141Moz (at 0.70g/t gold cut-off) was updated by independent resource consultant EGRM Consulting Pty Ltd as part of the DFS (refer Table 1).

Table 1 | Okvau Mineral Resource Estimate

					Okvau Mineral Resource Estimate	Okvau Mineral Resource Estimate
			Indicated Resource			Inferred Resource		Total Resource
	Cut-off	Tonnage	Grade	Contained	Tonnage	Grade (g/t Contained	Tonnage	Grade (g/t	Contained
	(Au g/t)	(Mt)	(g/t Au)	Au (Koz)	(Mt)	Au) Au (Koz)	(Mt)	Au)	Au (Koz)
	0.70	15.11	2.08	1,008	2.57	1.61 133	17.68	2.01	1,141

The Project has a JORC Ore Reserve (Probable) estimate of 14.26Mt @ 1.98g/t Au for 907,000 ounces gold (refer Table 2).

Table 2| Okvau Ore Reserve Estimate

		Okvau	Ore Reserve Estimate
		Tonnage	Grade	Contained
		(Mt)	(g/t Au)	Au (Koz)
	Probable Ore Reserve	14.26Mt	1.98g/t Au	907koz

Key operating and financial outcomes of the DFS, prepared in accordance with the requirements of the JORC Code (2012 Edition), are presented in Table 3.

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Table 3| DFS Economics[1]

	Ore Reserve 14.3Mt @ 2.0g/t gold for 907koz contained
	LOM Strip Ratio (waste t: ore t) 5.8:1
	Throughput 2.0Mtpa
	Life of Mine 7.2 years
	Processing Recovery 84%
	Recovered Ounces 762koz
	Average Annual Production 106koz
	Pre-production Capital Costs2 US$98M
	Sustaining Capital Costs3 US$23M
	Gold Price US$1,250/oz US$1,450/oz US$1,600/oz
	Gross Revenue US$952M US$1,104M US$1,219M
	LOM Net Revenue(net of royalties4and refining) US$906M US$1,051M US$1,160M
	Operating Cash Flow pre-tax US$408M US$554M US$663M
	Project Cash Flow pre-tax US$290M US$435M US$544M
	NPV(5%)pre-tax US$217M US$337M US$426M
	NPV(5%)post-tax5 US$155M US$238M US$296M
	Payback pre-tax 2.2 years 1.4 years 1.2 years
	Payback post-tax 2.4 years 1.7 years 1.3 years
	IRR pre-tax 48% 69% pa 85%
	IRR post-tax5 40% 57% pa 70%
	LOM C1 Cash Costs6 US$658/oz US$658/oz US$658/oz
	LOM All-In SustainingCosts(‘AISC’)7 US$745/oz US$754/oz US$761/oz

1 All economics are 100% attributable to Emerald 2 Includes US$4.4M of capital spares and first fills and US$7.0M of mining capital and pre-production mining costs 3 Includes US$14.4M of rehabilitation and closure costs 4 Royalties include Government royalty of 3.0% gross and a third party royalty of 1.5% gross (capped to A$22.5M)

5 Taxation is based on the Mining Investment Agreement and includes tax incentives for the first 5 years

6 C1 Cash Costs include site based mining, processing and admin operating costs plus transport and refining costs

7 Includes C1 Cash Cost plus royalties, sustaining capital costs, contributions to environmental & community funds and rehabilitation & closure costs

Development Activities

Safety

There were no serious incidents or injuries during the Quarter and the Lost Time Injury frequency rate remains at Nil.

Access Road

During the Quarter, site access construction activities continued on the Okvau Access Road and are now materially complete. The construction of a 35 tonne bridge across the Prek Te River has now been completed, refer to Figures 6 and 7. Activities on the upgrades to the existing 50km of rural dirt road is now substantially complete, refer to Figure 8. The Company continues to finalise the completion of a new 14 km section of planned road through to site, refer to Figure 9. The Okvau Access Road remains in line with the commitments included in the binding MoU with the Mondulkiri Provincial Department of Rural Development.

Grid Power

The power line to supply grid power to the Okvau Gold Project is progressing in line with expectations. Civil works between the Kratie sub station and site are complete. Erection of towers are now complete to within 4km of the project and stringing of lines to within 18km, refer to Figures 10 and 11. The provision of grid power is a critical step to production and is on track to be available well ahead of commissioning of operations.

Grade Control Programme

During the Quarter, Emerald awarded the contract for the provision of ongoing grade control drilling with a fit for purpose modified 450 Schramm Percussion drilling rig. Following the award of the contract, Emerald commenced the third phase of its drilling programme. The programme designed to delineate the ore blocks in the oxide portion of the mineralisation at the Okvau Gold Project. The initial programme consisted of a total of 1,200 shallow holes (~10m), drilled on a 5m by 5m spacing (refer Figure 3). Currently 705 (5,542m) of the 835 (6,880m) drill collars have assay results returned.

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Select results (+20gm) from these holes include (refer ASX Announcement dated 16 January 2020):-

5m @ 9.26g/t from 5m (G53001) (EOH); 10m @ 2.75g/t from 0m (G39032) (EOH); 9m @ 4.82g/t from 0m (G47009) (EOH); 10m @ 2.62g/t from 0m (G41021); 9m @ 4.06g/t from 0m (G47011) (EOH); 10m @ 2.52g/t from 0m (G49010) (EOH); 7m @ 4.96g/t from 3m (G43062); 9m @ 2.65g/t from 0m (G45018) (EOH); 9m @ 3.70g/t from 0m (G47010) (EOH); 8m @ 2.78g/t from 0m (G43043); 9m @ 3.53g/t from 0m (G45030) (EOH); 3m @ 7.35g/t from 0m (G03004); 7m @ 4.40g/t from 0m (G41045); 7.5m @ 2.81g/t from 0m (G37015) (EOH); 0.5m @ 59.50g/t from 6m (G35008) EOH); 9m @ 2.25g/t from 0m (G42012) (EOH); 2m @ 13.78g/t from 0m (G39030); 6m @ 3.37g/t from 0m (G37020).

The results from the previously announced Phase 1 and Phase 2 simulated grade control drill programmes (refer ASX Announcements 27 December 2017, 10 January 2018, 3 October 2018 and 24 October 2018) will be incorporated with this current drill programme to produce the final production ore blocks.

The results to date have indicated additional mineralisation outside the current reserve blocks in the near surface oxide material (refer Figure 4). This has likely been caused by a combination of natural processes such as supergene enrichment and the flattening of mineralised structures during the oxidation processes and the relocation of surface material by historical, artisanal mining activities.

Figure 3 | Drill Hole Plan

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Figure 4 | Drill Cross Sections of 455mN & 375mN (Local Grid) with significant intercepts

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Figure 5 | Site infrastructure plan as at 31 December 2019

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Figure 6| Bridge Construction

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Figure 7| Plaque on New Bridge

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Figure 8| Okvau Access Road, materially complete

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Figure 10| Aerial View Powerline Towers and Corridor 14 km from site

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Figure 12| Contract awarded for the provision of ongoing grade control drilling

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Figure 9| New Road Construction

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Figure 11| Erection of towers to supply grid power at Okvau

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Figure 13| Rangers Hut nearing completion

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Mineral Investment Agreement (‘MIA’)

During the Quarter, the Company announced that it had received approval from the Cambodian Council of Ministers for the execution of a MIA for the Okvau Gold Project. Subsequent to the approval of the MIA by the Council of Ministers, the MIA was finalized through the signing of the MIA by the Minister of Mines & Energy and the Minister of Economy & Finance (refer ASX Announcement dated 6 January 2020).

The MIA provides clarity and stability of the fiscal regime for the development and operations of the Okvau Gold Project and is a significant milestone which provides a level of comfort for shareholders and other stakeholders. Key aspects of the final signed MIA include:

• Fiscal Incentives:

• a) an income tax rate of 25% per annum for 5 years from the date of the MIA, thereafter the income tax rate will be applied at 30% per annum according to the Law on Taxation;

• b) a withholding tax rate of 0% of payment of dividends paid to foreign Affiliates for 5 years from the date of the MIA, thereafter the withholding tax will be applied at the rate according to applicable laws at the time (currently 14%); and

• c) an exemption from any import tax and duties on importation of equipment, machinery, mining trucks, earth moving equipment and goods and other mine facilities which are used exclusively for the purpose of this Project when the importation is done before 31 December 2022. Thereafter any import tax and duties will be applied according to applicable laws and regulations, subject to the change of law provisions as outlined below.

• Standstill/stability: The MIA contains a standstill/stability clause to ensure that should there be the introduction of any new Laws and/or regulations of Cambodia which materially increase the financial burden of Renaissance, then the relevant ministry department shall negotiate in good faith to amend the terms of the MIA so as to return Renaissance to an economically equivalent position to that in which they were prior to such change or introduction, for a period of five years following the change in Law; and

• Offshore arbitration: offshore arbitration provisions whereby any disputes unable to be resolved by a Joint Review Committee in Cambodia will take place at the Singapore International Arbitration Centre (SIAC).

Project Finance

On 26 June 2019, Emerald announced that it had entered into an investment committee (‘IC’) approved term sheet with Sprott to provide a US$60 million facility to be utilized towards the financing of the Okvau Gold Project (‘Okvau Project Development Facility’) and a facility of up to US$100 million (‘Acquisition and Development Facility’) to fund future project development and acquisition opportunities identified by Emerald and agreed with Sprott. During the Quarter, the Company and Sprott have continued to advance the preparation of formal documentation and satisfaction of conditions precedent to enable the drawdown of debt in the near term and the Board has committed to the development of the Okvau Gold Project subject to finalising project funding.

Sprott's financing of the Okvau Project will combine the strong development credentials of the Emerald team with the financial strength of the respected Sprott group. Emerald is excited to work with Sprott with the aim of creating a multi asset gold producing company.

Key terms of the Okvau Facility:-

• Facility amount – US$60 million;

• Term – 5 years;

• Interest – 6.50% per annum, plus libor;

• Gold Price Participation Agreement –1,449 ounces per month to a total of 62,307 ounces. US$1,100 per ounce (Sprott receive the differential between US$1,100 and the spot price on date of delivery);

• Structuring/Arrangement Fee (circa 1.6%).

The Okvau Project Development Facility remains subject to satisfaction of customary conditions.

Okvau Gold Project | Resource Growth

During 2019, Emerald has undertaken a drilling programme to endeavour to grow the resource delineated by the DFS which only considered an open pit mining operation at the Okvau Gold Project. Drilling results received from the near mine drill holes has indicated the potential discovery of an eastern feeder zone to the flat lying intrusive related gold mineralization of the Okvau gold reserve. Drill hole RC19OKV390 returned a high grade intersection of 15m @ 11.92g/t from 143m and drill hole RC19OKV397 returned a high grade intersection of 8m @ 19.98g/t from 172m. Further work is continuing to understand the significance of the potential feeder zone which potentially leads to a positive impact to the Okvau Gold Project economics.

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Regional Exploration

Mekong Minerals Ltd | Joint Venture (Emerald Earning 70% Interest)

The Snoul and Phnom Khtong Projects cover 411km² of highly prospective tenure with historical drilling demonstrating significant gold discovery potential in close proximity to the Okvau Gold Project.

Figure 14 | Cambodian Gold Project - Exploration Licence Areas

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As announced on 31 October 2019, during this Quarter, Emerald received 333 results from a recently completed auger soil geochemical programme at the Snoul Project designed to follow up on previously announced auger programme and historical drill results. Historical drilling consisted of a total of 10 RC holes and 37 diamond holes and was targeted partly on a gold anomaly defined by shallow soil samples.

These recent results have infilled the Ok Pok anomaly down to a nominal 100 x 100m spacing and extended the anomaly to the north by an additional 500 metres and identified a new 1,000m x 400m soil anomaly on the Sam Rong prospect (refer Figure 15).

These results will assist with the planning of a proposed drill programme to infill the significant results referred to below.

Significant results (+10 gram metre) from historical drilling included (refer to ASX Announcement dated 13 July 2017 for complete results):

• 4m @ 11.94g/t gold from 4m (SNRC002);

• 16m @ 2.93g/t gold form 4m (SNRC009);

• 12m @ 1.01g/t gold from 12m (SNRC010);

• 1m @ 11.36g/t gold from 66m (DD09ANC013);

• 4.3m @ 4.76g/t gold from 147.2m (DD10ANC025).

Figure 15 | Snoul Project Regional Sampling Results Compilation Map

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Refer to ASX Announcement dated 31 October 2019 for full results.

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The current soil sampling programme at the Phnom Khtong Project followed up on Emerald’s initial exploration programme which consisted of infill auger samples taken across the core of the surface geochemical anomaly previously identified by Southern Gold. During the current programme, additional auger soil samples have infilled the Oh Tron prospect to a nominal 100m x 50m grid (refer Figure 16). These results infilled the 500 metre gap between the eastern and western anomalies, joining them together as well as increasing the core of the highest grade contour (+50ppb) by 300 metres on the eastern side of the anomaly.

This current auger soil sampling programme contained 350 samples and returned peak values of 370, 221 and 217 ppb Au. These significant results are in addition to the previously announced (refer to ASX Announcement dated 28 November 2018) auger sampling values of 7,270, 1,570, 602 and 338 ppb Au, and peak rock chip values 38.30, 12.95, 11.55, 9.64, 3.57 g/t Au.

To date, 950 Auger samples have been taken from the Oh Tron prospect by Emerald. These results will assist with the planning of a proposed drill programme.

Figure 16 | Phnom Khtong Project Regional Sampling Results Compilation Map

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Angkor Gold Corp. | Earn-In Agreement (Emerald Earning 80% Interest)

The Koan Nheak Project is a Joint Venture with Angkor Gold Corp (‘Angkor Gold’, TSX listed) whereby Emerald may earn up to an 80% interest (refer Figure 17). Emerald has previously undertaken initial reconnaissance field work within the Koan Nheak exploration licence focusing in and around the Peacock Prospect. Prior to Emerald’s recent first pass RC drilling programme, no drilling has ever been undertaken within the exploration licence.

Figure 17 |Koan Nheak Project

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During Quarter, Emerald received the results from a recently completed first pass RC drill programme on the previously announced gold-in-soil Peacock anomaly (refer to ASX Announcement dated 3 August 2018). The 1,194 metre (15 collars) RC drill programme was designed to both test the peaks of the gold-in-soil anomalism and also the most prospective geophysical IP anomalies and was drilled down to an average depth of 80 metres (refer Figure 18).

10 of the 15 drill holes intersected zones of quartz breccia with sulphide mineralisation. Each of these geologically noteworthy zones were associated with low level (>0.1g/t) gold mineralisation confirming the existence of a gold mineralised system with the best intersection (8m @ 3.61g/t) being hosted by the diorite intrusive (refer Figure 18). The significant drill intersections are listed in Table 4.

Table 4 | Significant Drill Intersections

Collar	From	To	Thickness	Au g/t	Interval
RC19PCK002	7	8	1	3.43	1.00 m @ 3.43 g/t Au
RC19PCK003	21	23	2	0.96	2.00 m @ 0.96 g/t Au
RC19PCK003	31	39	8	3.61	8.00 m @ 3.61 g/t Au
RC19PCK009	58	59	1	1.45	1.00 m @ 1.45 g/t Au
RC19PCK011	0	2	2	1.36	2.00 m @ 1.36 g/t Au

Refer to ASX Announcement dated 31 October 2019 for full results.

The drill programme confirmed the soil anomaly and identified that the best opportunity for additional exploration success is within the diorite itself. The geological logging has identified the mineralisation as a similar style to the 1.14Moz Okvau Gold Deposit being both hosted in a diorite intrusive and associated with sulphide mineralisation. The best intersection, 8m @ 3.61g/t in hole RC19PCK003, is planned to be tested northward along strike into the prospective diorite intrusive when drilling on untested gold-soil-anomaly, Peacock North (refer Figure 19) commences early next year.

Figure 18| Drill Status Plan

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Figure 19| Location of Peacock soil anomalies

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Peacock
North
Peacock
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Other Tenure | New Grants and Applications

Emerald submitted exploration licence applications in its own name over the Preak Khlong and O’Khtung Projects covering 392km². Emerald has completed IEIAs over these two projects and received formal approval by the MoE.

Corporate Activities

Cash Position

Emerald’s consolidated cash at 31 December 2019 was approximately $10.7 million.

Expenditure during the Quarter mainly related to development costs including fence installation, the access road, costs associated with development financing and exploration programmes.

Detailed information on all aspects of Emeralds’ projects can be found on the Company’s website www.emeraldresources.com.au .

For further information please contact Emerald Resources NL Morgan Hart Managing Director

Forward Looking Statement

This announcement contains certain forward-looking statements. These forward-looking statements are not historical facts but rather are based on the Company’s current expectations, estimates and projections about the industry in which Emerald Resources operates, and beliefs and assumptions regarding the Company’s future performance. Words such as “anticipates”, “expects”, “intends”, “plans”, “believes”, “seeks”’ “estimates”, “potential” and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known or unknown risks, uncertainties and other factors, some of which are beyond the control of the Company, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, which reflect the view of Emerald Resources only as of the date of this announcement. The forward-looking statements made in this release relate only to events as of the date on which the statements are made. Emerald Resources will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this announcement except as required by law or by any appropriate regulatory authority.

This announcement has been prepared in compliance with the current JORC Code 2012 Edition and the ASX listing Rules. All material assumptions on which the forecast financial information is based have been included in this announcement.

The Company believes that is has a reasonable basis for making the forward-looking statements in this announcement, including with respect to any production targets and financial estimates, based on the information contained in this announcement. All material assumptions underpinning the production target or the forecast financial information continue to apply and have not materially changed.

100% of the production target referred to in the 1 May 2017 announcement is based on Probable Ore Reserves.

Emerald has a highly experienced management team, undoubtedly one of the best credentialed gold development teams in Australia with a proven history of developing projects successfully, quickly and cost effectively. They are a team of highly competent mining engineers and geologists who have overseen the successful development of gold projects in developing countries such as the Bonikro Gold Project in Cote d’Ivoire for Equigold NL and more recently, Regis Resources Ltd.

The Company believes it has a reasonable basis to expect to be able to fund and develop the Okvau Gold Project for the reason set out above and in this announcement. However, there is no certainty that the Company can raise funding when required.

Competent Persons Statements

The information in this report that relates to Exploration and Grade Control Results is based on information compiled by Mr Keith King, who is an employee to the Company and who is a Member of The Australasian Institute of Mining & Metallurgy. Mr Keith King has sufficient experience which is relevant to the style of mineralisation and type of deposits 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 Keith King has reviewed the contents of this release and consents to the inclusion in this announcement of all technical statements based on his information in the form and context in which it appears.

The information in this report that relates to the Mineral Resources for the Okvau Gold Deposit was prepared by EGRM Consulting Pty Ltd, Mr Brett Gossage, who is a consultant to the Company, who is a Member of the Australasian Institute of Mining & Metallurgy (AIG), and has sufficient experience 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 by the 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Gossage has reviewed the contents of this news release and consents to the inclusion in this announcement of all technical statements based on his information in the form and context in which it appears.

Information in this announcement that relates to Ore Reserves for the Okvau Gold Deposit is based on, and fairly represents, information and supporting documentation prepared by Mr Glenn Williamson, an independent specialist mining consultant. Mr Williamson is a Member of the Australasian Institute of Mining & Metallurgy. Mr Williamson 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 (or “CP”) as defined in the 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Williamson has reviewed the contents of this news release and consents to the inclusion in this announcement of all technical statements based on his information in the form and context in which it appears.

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Appendix One| Tenements

Mining and exploration tenements held at the end of December 2019 Quarter

	Project	Location	Tenement	Interest at 31 December 2019
	Okvau	Cambodia	Okvau Industrial Mining Licence	100%
	Okvau	Cambodia	Okvau Exploration LicenceA	100%
	O’Chhung	Cambodia	O’Chhung Exploration LicenceA	100%
	Svay Chras	Cambodia	Svay Chras Exploration Licence	100%

Mining and exploration tenements and licenses acquired and disposed during the December 2019 Quarter

	Project Location Tenement Interest at beginning of Quarter Interest at end of Quarter
	Tenements Disposed
	Nil
	Tenements Acquired
	Nil

Beneficial percentage interests in joint venture and earn-in agreements at the end of the December 2019 Quarter

	Project	Location	Tenement	Interest at end of Quarter
	Koan Nheak	Cambodia	Koan Nheak Exploration Licence	0%A
	Phnom Khtong	Cambodia	Phnom Khtong Exploration Licence	0%B
	Snoul	Cambodia	Snoul Exploration Licence	0%B

A Emerald Resources NL is earning up to an 80% interest from Angkor Gold Corp.

B Emerald Resources NL is earning up to a 70% interest from Mekong Minerals.

Beneficial percentage interests in joint venture and earn-in agreements acquired or disposed of during the December 2019 Quarter

	Project Location Tenement Interest at beginning of Quarter Interest at end of Quarter
	Joint Venture Interests Disposed
	Nil
	Joint Venture Interests Acquired
	Nil

Interests in royalties

The Company has a 5% overriding royalty interest in all gas production from various oil and gas interests located in Magoffin County, Kentucky. During the Quarter, there was no product recovered and sold from the Leases and the royalty received for the period was Nil.

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Appendix Two | JORC Code, 2012 Edition | ‘Table 1’ Report

Section 1 Sampling Techniques and Data

Section 1 Sampling Techniques and Data
(Criteria in this section applyto all succeedingsections).
Criteria JORC Code explanation	Commentary

(Criteria in this section applyto all succeedingsections). Criteria JORC Code explanation	(Criteria in this section applyto all succeedingsections). Criteria JORC Code explanation	(Criteria in this section applyto all succeedingsections). Criteria JORC Code explanation	(Criteria in this section applyto all succeedingsections). Criteria JORC Code explanation	(Criteria in this section applyto all succeedingsections). Criteria JORC Code explanation
		Criteria		JORC Code explanation		Commentary
	Sampling techniques		• Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. • Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. • 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 (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg 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 (eg submarine nodules) may warrant disclosure of detailed information.		• For the drill programme, air core (AC) drilling is used to collect 1m samples these are split with a cone splitter at the drill rig to produce a 3-5kg sub-sample. • Drilling sample preparation is carried out at a commercial off- site laboratory (ALS Phnom Penh). Gold assays are conducted at ALS Vientiane, Laos utilising a 50gram subsample of 85% passing 75µm pulped sample using Fire Assay with AAS finish on and Aqua Regia digest of the lead collection button. Multi- element assay is completed at ALS, Perth, Australia on a 1g pulp subsample digested by Aqua Regia and determined by ICP-AES or ICP-MS for lowest available detection for the respective element. • Oxide matrix standards, field duplicates and pulp blanks are inserted in sample batches to test laboratory performance.
	Drilling techniques		• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method,etc).		• A track mounted UDR650 multipurpose drill rig is used to drill 5.5- inch AC holes.
	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. • 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.		• All AC 1m samples and sub-samples (pre- and post-split) are weighed at the rig, to check that there is adequate sample material for assay. Any wet or damp samples are noted and that information is recorded in the database; samples are usually dry.
	Logging		• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. • The total length and percentage of the relevant intersections logged.		• All AC drill chips are routinely logged (qualitatively) by a geologist, to record details of regolith (oxidation), lithology, structure, mineralization and/or veining, and alteration. In addition, the magnetic susceptibility of all samples is routinely measured. All logging and sampling data are captured into a database, with appropriate validation and security features.
	Sub-sampling techniques and sample preparation		• If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • 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.		• Most AC samples are dry and there is no likelihood of compromised results due to moisture. • All types of samples are prepared for assay at the NATA accredited ALS Cambodia sample preparation facility in Phnom Penh; and that facility has been inspected, at the request of Renaissance, numerous times and most recently by Mr Brett Gossage, Mr Keith King and Mr Morgan Hart in Dec 2016. Samples are dried for a minimum of 12 hours at 105˚C; • AC samples are split to 1kg and pulverized in an Essa LM2 Ring Mill. A standard >85% pass rate is achieved (with particle size analysis performed on every tenth sample as a check). • Field duplicate samples are collected at an AC drill rig to monitor sampling precision. • This sample technique is industry norm, and is deemed appropriate for the material.
	Quality of assay data and laboratory tests		• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. • Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.		• All drill samples are sent to the NATA accredited ALS Laboratory in Vientiane, Laos, for fire assay (Au-AA25: 30g ore grade method, total extraction by fusion, with an AA finish). Samples reporting >100ppm upper detection limit are repeated by Au- AAGRA22 method, Graphite furnace with gravimetric finish. • Samples are sent to the similarly accredited ALS Lab in Brisbane, Australia and ALS Lab Perth, Australia, for multi-element ICP analysis, after partial extraction by aqua regia digest ME-MS42: ICP-MS for Ag, As, Bi, Sb, Te, Hg and Cu by ME-MS-41 ICP-AES. • Fire assay is considered a total gold assay. • The Au-AA25 method has a lower detection limit of 0.01g/t gold. • All magnetic susceptibility measurements of drill samples are made with a Terraplus KT-10 magnetic susceptibility meter. • An appropriate sample preparation and analytical quality control programme confirms that the gold fire assay values are of acceptablequalityto underpin mineral resource estimation.

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Criteria	JORC Code explanation	Commentary
		• Industry-standard QAQC protocols are routinely followed for all sample batches sent for assay, which includes the insertion of commercially available pulp CRMs and pulp blanks into all batches - usually 1 of each for every 20 field samples. Additional blanks used are home-made from barren quarry basalt. QAQC data are routinely checked before any associated assay results are reviewed for interpretation, and any problems are investigated before results are released to the market - no issues were raised with the results reported here. • All assay data, including internal and external QA/QC data and control charts of standard, replicate and duplicate assay results,are communicated electronically.
Verification of sampling and assaying	• The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss anyadjustment to assaydata.	• The calculations of all significant intercepts (for drill holes) are routinely checked by senior management. • All field data associated with drilling and sampling, and all associated assay and analytical results, are archived in a relational database, with industry-standard verification protocols and security measures in place.
Location of data points	• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control.	• Drill hole collar locations are first surveyed with a hand-held GPS instrument (which generates relatively inaccurate RL values). The locations of all holes used in Mineral Resource estimates are verified or amended by survey using a differential GPS by and external contractor with excellent accuracy in all dimensions using a local base station reference). All locations are surveyed to the Indian 1960 Zone 48N UTM grid. Collar coordinates are routinely converted to a local grid (local N is approx. equivalent to UTM 045˚), with an appropriate transformation about a common point - to simplify the interpretation of drill cross sections. • Down-hole surveys are routinely undertaken at 25-30m intervals for all types of drilling, using a single-shot or multi-shot REFLEX survey tool (operated by the driller and checked by the supervising geologist).
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) and classifications applied. • Whether sample compositinghas been applied.	• This drill spacing is considered to be sufficient to establish geological and grade continuity appropriate for the declaration of estimates of resources. • No samples within a “zone of interest” are ever composited.
Orientation of data in relation to geological structure	• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	• Drill holes are usually designed to intersect target structures with a “close-to-orthogonal” intercept. • Most of the drill holes intersect the mineralised zones at sufficient angle for the risk of significant sampling orientation bias to be low.
Sample security	• The measures taken to ensure sample security.	• The chain of custody for all drill samples from the drill rig to the ALS Sample Preparation facility in Phnom Penh is managed by Renaissance personnel. AC drill samples are transported from the drill site to the Okvau field camp, where they are logged and all samples are batched up for shipment to Phnom Penh. • Sample submission forms are sent to the ALS Sample Prep facility in paper form (with the samples themselves) and also as an electronic copy. Delivered samples are reconciled with the batch submission form prior to the commencement of any sample preparation. • ALS is responsible for shipping sample pulps from Phnom Penh to the analytical laboratories in Vientiane, Brisbane and Perth and all samples are tracked via their Global Enterprise Management System. • All bulk residues are stored permanently at the ALS laboratory in Vientiane.
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	• All QAQC data are reviewed routinely, batch by batch, and on a quarterly basis to conduct trend analyses, etc. Any issues arising are dealt with immediately and problems resolved before results are interpreted and/or reported. • Comprehensive QAQC audits have been conducted on this project by Duncan Hackman (August 2009, February 2010 & November 2011), SRK (February 2013) and Nola Hackman (January 2014), Wolfe (July 2015). • Mr Brett Gossage reviewed the data used in the Okvau Resource up to December 2016 and concluded that there are no concerns about dataquality.

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Section 2 Reporting of Exploration Results

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

Criteria	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 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.	• The Okvau drill programme is located within the Okvau exclusivity licence and within the 11.5km2that is currently under the application for an Industrial Mining Licence. Both the licences are held or applied for (100%) in the name of Renaissance Minerals (Cambodia) Limited which is a wholly owned subsidiary of Emerald Resources NL. • Industrial Mining Licence was issued on 27thJune 2018. • Tenure is considered secure.
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	• Renaissance Minerals (Cambodia) Ltd was formerly named OZ Minerals (Cambodia) Ltd, a 100% owned subsidiary of OZ Minerals Ltd. OZ Minerals was formed in 2009 by the merger of Oxiana Ltd (who initiated the Okvau Project) and Zinifex. • Oxiana and OZ Minerals completed the following work at Okvau between 2006 and 2011: a resource drill-out of the Okvau deposit; plus, a regional geological interpretation of Landsat imagery; stream sediment geochemistry, with some soil sampling follow-up; airborne magnetic and radiometric surveys over both ELs, and various ground geophysical surveys (including gradient array IP); geological mapping and trenching; and the initial drill testingof various exploration targets.
Geology	• Deposit type, geological setting and style of mineralisation.	• The Okvau deposit is interpreted as an “intrusion-related gold system”. It is hosted mostly in Cretaceous age diorite and, to a lesser extent, in surrounding hornfels (metamorphosed, fine- grained clastic sediments). Gold mineralization is hosted within a complex array of sulphide veins, which strike northeast to east- west, and dip at shallow to moderately steep angles, to the south and southeast. • Mineralisation is structurally controlled and mostly confined to the diorite. The highest-grade intersections generally occur at the diorite-hornfels contact. • The host diorite at Okvau is one of numerous similar Cretaceous- aged intrusions in eastern Cambodia, which are believed to be related to an ancient subduction zone that was located to the east, off the coast of current Vietnam.
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; - down hole length and interception 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.	• Details of significant drilling results are shown in Appendix One.
Data aggregation methods	• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) 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 clearlystated.	• Drill intercepts are identified at a 0.5g/t Au cut-off grade, with a continuous internal dilution of 4m (in any single zone of waste). A weighted average grade is calculated as the sum of the products of sample length and grade for each sample in the relevant interval, divided by the total length of the interval. All intercepts reported have a value greater than 2 gram metres. • No high grade top cuts have been applied. • No rounding has been applied. • All results reported are gold only.
Relationship between mineralisation widths and intercept lengths	• These relationships are particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drill hole angle is known, its 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 (e.g. ‘down hole length,true width not known’).	• Most of the drill holes intersect the mineralised zones at sufficient angle for the risk of significant sampling orientation bias to be low. • The drill programme was planned with a consistent dip and azimuth (-60 degrees towards 315) due to floor conditions, some holes were drilled with a vertical dip.
Diagrams	• Appropriate maps and sections (with 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.	• Appropriate maps and sections are included in the body of this release.
Balanced reporting	• Where comprehensive reporting of all Exploration Results is not practicable,representative reportingof both low and high	• All significant drilling results being intersections with a minimum 2 gram metre values are reported in Appendix One.

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Criteria	Explanation	Commentary
	grades and/or widths should be practiced to avoid misleading reportingof Exploration Results.
Other substantive exploration data	• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; 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.	• Surface geological mapping and detailed structural studies have helped inform the geological model of the Okvau Deposit. • The Company completed a Definitive Feasibility Study in May 2017 which was subsequently updated in November 2019. The DFS included metallurgical, geotechnical and hydrological studies.
Further work	• The nature and scale of planned further work (eg tests for lateral extensions or 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 commerciallysensitive.	• Further drilling is being undertaken at the Okvau Deposit, including infill drilling and extensional drilling to test lateral and depth extensions of the known mineralisation. • Further drilling will be undertaken to test new regional targets, as potential is recognized.

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