EMMERSON RESOURCES LIMITED — Capital/Financing Update 2019

Feb 17, 2019

18 December 2019

ASX Announcement

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Bonanza Gold Results from Tennant Creek Drilling

Highlights

Mauretania Project - 100% ERM

• 11m at 54g/t gold - incl. 6m at 98.5g/t gold from 72m (drill hole MTRC034)

• 22m at 36g/t gold - incl. 6m at 122g/t gold from 73m - ending in mineralisation (drill hole MTRC031)

• 24m at 15.7g/t gold - incl. 10m at 32.3g/t gold from 90m (drill hole MTRC032)

• 7m at 13.4g/t gold from 51m (drill hole MTRC027)

- - The Susan Project $5m earn in by partner Territory Resources

• 11m at 48g/t gold - incl. 9m at 58.5g/t gold from 26m (drill hole SS001)

• 8m at 15.7g/t gold - incl. 2m at 26g/t and 1m at 41g/t gold from 22m (drill hole SS003)

Emmerson’s Managing Director; Mr Rob Bills commented :

“These high-grade results from our Tennant Creek project speak for themselves and support our strategy of building a pipeline of high-grade, high-value mines which feed into the Mine Schedule. Where our partner, Territory Resources Limited (“Territory”) is undertaking various optimisation studies ahead of permitting and development. Emmerson receives a low-risk return either from 12% and 6% of the gold produced at the Edna Beryl and Chariot projects respectively, or a 25% share of the profit from the other seven projects in the Mine Schedule.

Emmerson owns 100% of the Mauretania project and plans to undertake further work to maximise value. In contrast, The Susan project is within the JV area with Territory and is where Territory are funding $5m over 5 years to earn a 75% equity interest.

As previously announced the Edna Beryl Mining Company, now owned by Territory is developing the high-grade, Edna Beryl gold mine. The first parcel of ore produced from the mine is currently being toll treated offsite while Territory complete refurbishment of the Warrego mill with completion forecast by year-end. The development of the Edna Beryl mine not only

Emmerson Resources Limited ABN 53 117 086 745

t: +61 8 9381 7838 | e: admin@emmersonresources.com.au | w: www.emmersonresources.com.au 3 Kimberley St, West Leederville 6007 WA

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provides a low-risk return to Emmerson but also an opportunity to better understand the geology and gold distribution via underground drilling and development. Something that has been instrumental in realising the potential of many of the other historical high-grade mines in the Tennant Creek Mineral Field.”

Northern Project Area Drilling – ERM 100%

A total of 15 holes for approximately 1,700m of Reverse Circulation (“RC”) drilling was completed across three projects in December 2018 (Figure 1). The best assay results were received from Emmerson’s 100% owned Mauretania prospect where drilling was aimed at better defining the shallow, oxide and deeper primary gold zones. Despite difficult drilling conditions which necessitated abandoning and redrilling a number of the holes, these exceptionally highgrade results have increased our confidence in the potential for economic mineralisation in both the shallow oxide and deeper, primary gold zones.

As an example, drill hole MTRC034 was abandoned (due to drilling issues) in broken and brecciated hematite ironstone, with assays of 11m at 54.1g/t gold. Redrilled in hole MTR031 returned 22m at 36g/t gold which included 6m at 122g/t gold that terminated in ore (Figures 2 & 3). Drill hole MTRC028 was aimed at testing the deeper primary mineralisation however, intersected significant copper of 9m at 1.05% copper from 131m. Given the typical metal zonation of copper higher in the system (and closer to the surface) than the gold and bismuth, suggests potential for primary gold at depth. Supported in the next section to the south (Figure 4), where previous drilling intersected 10m at 7.6g/t gold from 171m, including 5m at 13.4g/t gold (ASX:21/06/2018).

Due to challenging drilling conditions, the program was halted early and will require a more powerful RC rig before proceeding. Or alternatively, looking at commercial arrangements to undertake the deeper drilling during development and mining.

Note: Mauretania is a recent green fields discovery, identified from recognising that high-grade gold (and copper), like Emmerson’s recent discoveries at Edna Beryl and Goanna are associated with very oxidised, hematite fluids. These styles of deposits are characterised by very high grades of gold (and in the case of Goanna, copper), strongly controlled by structure and thus represent difficult targets to intersect from surface drilling. By virtue of their association with hematite, they present as weak magnetic anomalies and in the case of Edna Beryl, an associated gravity anomaly. Furthermore, unless these deposits breach the surface, they display very restrictive gold, copper and bismuth geochemical footprints (as illustrated in Figure 2)

Southern Project Area (SPA) – Territory Earning 75%

Drilling in the SPA is part of the $5m earn-in funded by Territory and aimed at “growing” known gold mineralisation around the historic mines that are in the Mining Schedule.

Thus some 76 drill holes for approximately 3,000m were completed across several shallow oxide gold projects including Black Snake, The Susan and the Three Thirty prospects.

With many assays still outstanding, early results from The Susan prospect show great potential for shallow, high-grade gold in the oxide zone. Exemplified by drill holes SS001 and SS003 which intersected 11m at 48g/t gold and 8m at 16g/t gold respectively (Figures 5 & 6).

The early prospectors (from 1955-1960) sunk a small shaft to follow visible gold associated with hematite ironstone in the oxide zone. Mining records indicate production of 120 tonnes @ 23.5g/t gold but mining was curtailed due to water ingress on intersecting the water table at 42m.

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Given these positive drill results and the limited historical exploration, it is likely that further predevelopment drilling will be undertaken as part of earn-in expenditures by Territory.

Upcoming Activities at Tennant Creek

– Edna Beryl Gold Mine Territory are the operators and managers (ERM receive 12% of the gold produced)

With the spectacular gold grades encountered during mining on the lowest 80m level at Edna Beryl (figure 7), deepening of the existing shaft and adding a further sub level is currently being evaluated. In addition, an exploration drill drive will be developed toward the Edna Beryl West mineralisation on the new 90m level to accommodate underground drilling. This will assist in understanding the grade distribution of the gold and geology ahead of establishing a Life of Mine plan. Note that under the terms of the agreement with the Edna Beryl Mining Company (now owned by Territory), Territory are responsible for all development, mining and processing which includes the development of the 90m exploration drive towards Edna Beryl West. Emmerson are responsible for the underground drilling and look forward to getting underway as we believe there is good potential to significantly expand the very high-grade mineralisation.

– Southern Project Area Territory Earning 75%

Further drilling is currently being planned across many of the projects in the Mine schedule, including drilling at Eldorado, Black Snake and The Susan. Mine planning, optimisation studies and permitting continue.

Corporate

After due consideration to the capital-intensive phase that our strategic alliance partner, Territory has committed to the Tennant Creek Project, Emmerson has agreed to restructure the timing of the second tranche share placement of $1,000,000 previously announced.

Territory have made an initial $300,000 progress payment toward the second tranche and the restructure grants Territory additional time to subscribe for the shares under the Subscription Agreement.

The recent floods in Cloncurry has significantly delayed the toll treatment of the first parcel of Edna Beryl ore. This restructure recognises these unforeseen delays.

Fully paid ordinary Shares (9,661,836 Shares) at an issue price of $0.1035 per Share will be issued following receipt of the full subscription amount of $1,000,000.

About Emmerson Resources and its New South Wales and Tennant Creek Projects

Emmerson is fast tracking exploration across five exciting early-stage gold-copper projects in NSW, identified (with our strategic alliance partner Kenex Limited) from the application of 2D and 3D predictive targeting models – aimed at increasing the probability of discovery. The highly prospective Macquarie Arc in NSW hosts >80Mozs gold and >13Mt copper with these resources heavily weighted to areas of outcrop or limited cover. Emmerson’s five exploration projects contain many attributes of the known deposits within the Macquarie Arc but remain underexplored due to historical impediments, including overlying cover (farmlands and younger rocks) and a lack of exploration. Kadungle is a JV with Aurelia Metals covering 43km[2] adjacent to Emmerson’s Fifield project.

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In addition, Emmerson has a commanding land holding position and is exploring the Tennant Creek Mineral Field (TCMF), one of Australia’s highest-grade gold and copper fields producing over 5.5 Mozs of gold and 470,000 tonnes of copper from deposits including Warrego, White Devil, Orlando, Gecko, Chariot, and Golden Forty. These high-grade deposits are highly valuable exploration targets, and to date, discoveries include high-grade gold at Edna Beryl and Mauretania, plus copper-gold at Goanna and Monitor. These are the first discoveries in the TCMF for over two decades.

Emmerson recently announced the formation of a strategic alliance with Territory Resources to build a central mill in Tennant Creek to support the processing from Emmerson’s small gold mines and other third-party feed. This alliance also extends to a $5m earn-in by Territory Resources over Emmerson’s southern tenements (where ERM is the Operator and Manager) plus a Mining Joint Venture over a portfolio of Emmerson’s small mines that is on a 75/25 profit share basis, except for the Edna Beryl and Chariot mines which respectively have a 12% and 6% gold production royalty.

Emmerson is led by a board and management group of experienced Australian mining executives including former MIM and WMC mining executive Andrew McIlwain as non-executive chairman, and former senior BHP Billiton and WMC executive Rob Bills as Managing Director and CEO.

About Territory Resources

Territory Resources Limited (Territory) explores, mines, rails iron ore and exports out of the Darwin Port in Northern Territory Australia. The company primarily holds an interest in the Frances Creek mine, located to the south of Darwin, Northern Territory. The Company also has interests in the Mt Bundey project and the Yarram project both located in Northern Territory. The Company was incorporated in 2002 and is based in West Perth, Australia. As of February 28, 2018, Territory operates as a subsidiary of Gold Valley Holdings Pty Ltd. Territory is currently expanding its operations into gold projects in the NT, including advancing the +300koz gold project at Nobles Nob and Juno mines in Tennant Creek.

Regulatory Information

The Company does not suggest that economic mineralisation is contained in the untested areas, the information contained relating to historical drilling records have been compiled, reviewed and verified as best as the Company was able. As outlined in this announcement the Company is planning further drilling programs to understand the geology, structure and potential of the untested areas. The Company cautions investors against using this announcement solely as a basis for investment decisions without regard for this disclaimer.

Competency Statement

The information in this report which relates to Tennant Creek Exploration Results is based on information compiled by Mr Steve Russell BSc, Applied Geology (Hons), MAIG, MSEG. Mr Russell is a Member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition and the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Russell is a full-time employee of the Company and consents to the inclusion in this report of the matters based on his information in the form and context in which it appears .

Cautionary Statement

The Exploration Targets described in the ‘Mining & Processing’ section are conceptual in nature. It must be noted that that there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

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Forward-Looking Statements

This document may include forward-looking statements. Forward-looking statements include, but are not limited to, statements concerning Emmerson Resources Limited’s planned exploration program and other statements that are not historical facts. When used in this document, the words such as "could," "plan," "expect," "intend," "may”, "potential," "should," and similar expressions are forward-looking statements. Although Emmerson believes that its expectations reflected in these forward- looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that further exploration will result in the estimation of a Mineral Resource.

For further information, please contact:

Rob Bills

Managing Director and CEO

E: rbills@emmersonresources.com.au T: +61 8 9381 7838

Media enquiries

Michael Vaughan, Fivemark Partners E: michael.vaughan@fivemark.com.au T: +61 422 602 720

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Table 1: Mauretania prospect significant drill hole intersections.

					AZI													Se
	East	North	RL	Dip		From	To	Width	Au	Ag	Bi	Cu	Co	Fe	Pb	Zn	Sb
Hole ID
	(MGA94_53)	(MGA94_53)	AHD	(deg)	mag	(m)	(m)	(m)	(g/t)	(g/t)	(ppm)	(%)	(ppm)	(%)	(ppm)	(ppm)	(ppm)	(ppm)
					d
					(eg)
MTRC027	430709.11	7833041.93	329.40	-70	50.1 Incl.	51	58	7	13.4	0.64	0.37%	0.06	-	26.4	214	70.0	7.32	0.60
						53	56	3	20.6	0.73	0.67%	0.05	-	28.1	204	72.3	7.98	0.63
MTRC028	430670.41	7833011.32	329.44	-50	50.0	0	3	3*	10.6	0.54	0.14%	0.02	27.3	8.14	88.0	72.3	0.99	4.10
						73	74	1	1.19	4.52	4.82	0.11	167	6.08	21.1	106	1.58	0.05
						131	140	9	0.06	1.51	22.2	1.05	86.9	6.00	62.1	233	0.49	13.42
MTRC029	430737.07	7833039.87	329.19	-90	0.00	90	116	26	0.18	11.5	31.7	2.06	0.11%	13.6	485	0.24%	7.48	1.22
					Incl.	103	110	7	0.18	6.90	40.5	3.55	0.19%	12.2	712	0.35%	10.2	1.54
MTRC030	430733.42	7833062.31	329.44	-90	000	NSI
MTRC031	430694.54	7833033.56	329.50	-70	43.5	73	95	22	35.9	9.18	0.25%	0.09	95.8	22.4	353	177	11.1	9.22
					Incl.	73	79	6	122	16.2	0.63%	0.11	102	24.0	491	245	10.1	29.4
						104	108	4	3.71	3.77	0.18%	0.05	81.5	21.3	294	51.7	6.46	1.63
MTRC032(Hole abandoned)	430693.97	7833017.05	329.33	-70	43.5	90	114	24	15.7	9.49	0.46%	0.16	98.1	20.2	829	346	11.6	10.6
					Incl.	93	103	10	32.3	5.10	0.68%	0.11	90.6	20.1	810	310	12.3	9.98
MTRC033	430628.86	7833040.91	329.93	-70	42.5	NSI
MTRC034(Hole abandoned)	430690.57	7833032.04	329.40	-70	43.5	72	83	11	54.1	7.81	0.65%	0.15	160	21.1	535	345	7.75	13.8
					Incl.	77	83	6	98.5	6.60	0.87%	0.18	169	20.8	650	410	8.94	24.8

Note:

• (1) All samples are 1-metre riffle split Reverse Circulation samples.

• (2) * denotes a 3-metre composite Reverse Circulation sample.

• (3) Gold analysis method by 25g Aqua Regia with ICP-OES finish.

• (4) Where gold analysis is greater than 1 g/t Au, repeat assay is by 25g Fire Assay.

• (5) Multi element analysis method by 4 acid digest & ICP-OES, ICP-MS finish.

• (6) Intersections are reported as downhole lengths and not true width.

(7) Minimum cut-off of 1 g/t Au. No maximum cut-off. (8) Minimum cut-off of 1% Cu. No maximum cut-off. (9) Minimum cut-off of 500 ppm Co. No maximum cut-off. (10) Maximum of 2m internal dilution.

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Table 2: Susan significant drill hole intersections.

					AZI													Mo
	East	North	RL	Dip		From	To	Width	Au	Ag	Bi	Cu	Co	Fe	Pb	Zn	Sr
Hole ID
	(MGA94_53)	(MGA94_53)	AHD	(deg)	mag	(m)	(m)	(m)	(g/t)	(g/t)	(ppm)	(ppm)	(ppm)	(%)	(ppm)	(ppm)	(ppm)	(ppm)
					d
					(eg)
SS001	419436.00	7826085.00	381.2	-50	353.9	19	21	2	2.55	0.85	413	306	30.0	28.7	31.0	22.5	5.00	240
						26	37	11	48.3	0.57	0.37%	407	24.5	21.7	200	23.0	18.8	0.17%
						27	36	9	58.5	0.59	0.44%	395	25.6	22.0	237	17.0	20.6	0.18%
SS003	419437.00	7826110.00	380.0	-90	000	22	30	8	15.7	0.65	0.24%	436	16.5	21.2	32.4	6.88	8.63	0.16%
					Incl.	24	25	1	41.0	0.50	0.13%	499	14.0	17.7	24.0	5.00	9.00	0.13%
					Incl.	28	30	2	25.8	0.90	595	452	18.5	26.1	32.0	8.50	7.50	0.14%
SS013	419447.00	7826117.00	380.0	-90	000	18	20	2	5.23	0.85	0.46%	158	26.5	30.7	149	8.50	4.00	659
SS002	419438	7826125	378.7	-70	173.8	Assays not received from the laboratory.
SS004	419426	7826085	381.3	-50	348.6	Assays not received from the laboratory.
SS005	419426.54	7826125.7	380	-72	184.1	Partial assays received.
SS006	419412.2	7826116.8	380	-60	178.5	Partial assays received.
SS007	419421	7826114	380	-60	167.9	Partial assays received.
SS008	419421	7826109	380	-60	164.8	Partial assays received.
SS009	419421	7826103	380	-60	172.5	Partial assays received. Dip and Azimuth not available.
SS010	419403	7826109	381	-35	166.7	Assays not received from the laboratory.
SS011	419417	7826129	380	-60	128.4	Partial assays received.
SS012	419417	7826111.5	380	-60	177.4	Partial assays received.
SS014	419447	7826115	380	-90	000	Partial assays received.
SS015	419449	7826119	380	-70	175.8	Assays not received from the laboratory.

• (1) All samples reported are 1-metre riffle split Reverse Circulation samples.

(4) Gold analysis method by 25g Fire Assay, ICP-OES finish.

• (2) 3-metre composite RC assays are not yet available.

(5) Multi element analysis method by 4 acid digest & ICP-OES, ICP-MS finish.

• (3) Gold analysis method by 25g Fire Assay, ICP-OES finish.

(6) Intersections are reported as downhole lengths and not true width.

(7) Minimum cut-off of 1 g/t Au. No maximum cut-off. (8) Minimum cut-off of 1% Cu. No maximum cut-off. (9) Maximum of 2m internal dilution.

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Figure 1: Location of Emmerson’s tenement 100% package (blue) and recently completed drill program targets (yellow dots). Page 8 E m m e r s o n R e s o u r c e s L i m i t e d

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Figure 2 : Location previous drilling (black & white dots) plus recent RC collars (yellow call out boxes) on a background of gold geochemistry in - ppm (colours), magnetics (grey scale).

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Figure 3: Mauretania schematic Cross Section – note yellow call out boxes are assay results from the recent 2018 drilling program. Page 10 E m m e r s o n R e s o u r c e s L i m i t e d

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Figure 4: Mauretania schematic Cross Section – note the white call out boxes represent the June 2018 assay results and yellow call out boxes are assay results from the December 2018 drilling program. Page 11 E m m e r s o n R e s o u r c e s L i m i t e d

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Figure 5: Susan drill hole location plan on TMI magnetic underlay. Note yellow call out boxes are assay results from the December 2018 drilling program.

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Figure 6: Susan schematic cross section – note the white call out boxes represent previous assay results and yellow call out boxes are from the December 2018 drilling program. Also note prospectors’ shaft (in grey) which yielded 120 tonnes @ 23.5g/t gold

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Figure 7: Visible gold from the 80m level at Emmerson’s Edna Beryl Gold Mine – note the association with hematite (steely grey)

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The exploration results contained within the above company release are in accordance with the guidelines of The Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 Edition–Table 1).

SECTION 1.1 SAMPLING TECHNIQUES AND DATA – MAURETANIA PROJECT AREA – RC DRILLING

(Criteria in this section apply to all succeeding sections)

Criteria	JORC Code explanation	Commentary
Sampling techniques	• Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as downhole 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.	• The_Mauretania_holes were sampled using Reverse Circulation drilling techniques (RC). Seven holes (MTRC028-MTRC034) were drilled for a total of 1,023m and are reported in this current release. • Holes were angled to optimally test the interpreted shear zones/geophysical model). Five drill holes have been drilled at an angle of 70 degrees. • Two drill hole MTRC029-MTRC030 were drilled as vertical holes to test vertical continuity of ironstone body. • MTRC032 could not be drilled to planned depth and was abandoned at 114m. • MTRC034 could not be drilled to planned depth and was abandoned at 83m. • MTRC032 & MTRC034 were both terminated in mineralised ironstone. • RC chips are riffle split on site to obtain 3m composite samples from which 2.5 – 3.0kg was pulverised (at Genalysis in Alice Springs) to produce a 25g charge for analysis by Aqua Regia digestion / ICP-MS/OES (Au, Ag, Bi, Cu, Fe, Pb, Zn, Mo, Co, Se, Sb). • Selected 1m samples were individually assayed. • Individual 1m samples are pulverised to produce a 25g charge for analysis by four acid digest with an ICP/OES (Cu, Fe, Pb, Zn) ICP/MS (Ag, Bi, Mo, Se, Sb, Co) & Fire Assay/AAS (Au) finish. • RC samples were collected via a fixed cone splitter that is mounted to the drill rig under a 1200cfm cyclone. • The fixed cone splitter has three sample chutes for comparative sampling, 2 chutes are synchronised for comparative samples and 1 Chute is independently set for the geologist’s field samples.
Drilling techniques	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg 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).	• RC drilling accounts for 100% of the current reported drilling at _Mauretania Exploration Target_and comprises, 3m riffle split, composite RC samples and selected 1m riffle split RC intervals. • RC drilling utilizes a 4.5 inch, face sampling bit. • Drill hole depths range from 83m to 198m. • RC recoveries are logged and recorded in the database.
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	• RC samples are visually checked for recovery, moisture and contamination. • Wet samples were common when drilling through the interpreted mineralised zone. Concerns were discussed at the time with the drilling contractor and also recorded in our database. • Every attempt was made to collect representative samples. • Recoveries are considered fair for the reported RC drilling.

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	between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	• The cyclone and splitter are routinely cleaned with more attention spent during the drilling of damp or wet samples. • Emmerson do not consider that there is evidence for sample bias that may have occurred due to preferential loss/gain of fine/coarse material.
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.	• Standard operating procedures are employed by Emmerson for logging RC samples. • All RC samples are lithologically logged in one metre intervals. • Drill hole logging data is directly entered into field tough book computers via LogChief software. Look up codes and real-time validations reduce the risk of data entry mistakes. • Field computer data (the drill log) are uploaded to Emmerson’s relational database whereby the data undergoes a further set of validations checks prior to final upload. • Standardised codes are used for lithology, oxidation, alteration, veining and presence of sulphide minerals. • Structural logging of the RC drill samples was not possible. • Magnetic susceptibility data for all individual 1m RC samples are collected as per ERM procedure. • All RC chips are stored in trays in 1m intervals. • Representative RC chips and diamond core is available to all geologists (a physical reference set) to ensure consistency of logging.
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 insitu 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.	• Standard sampling operating procedures have used by ERM at Mauretania Project area drilling for RC samples. • The sample preparation of RC samples for follows industry best practice in sample preparation involving oven drying, coarse crushing of the sample down to ~10mm followed by pulverisation of the entire sample (total prep) using LM5 grinding mills to a grind size of 85% passing 75 micron. • Pulverised material not required by the laboratory (pulps) including duplicate samples are returned to ERM, logged into a database and stored undercover at the Tennant Creek office. • Coarse rejects are disposed of by the Laboratory. • RC samples were collected on the rig using cone (from the drill rig) and then riffle split by the field assistants if dry to obtain a 3kg sample. • If samples are wet the samples were not passed through the riffle splitter. Instead they 1m sample bags were wet sieved and chips collected and sent for assay.
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,readingtimes,calibrations	• Field QC procedures involve the use of certified reference material (CRM’s) as assay standards, and ERM include blanks, duplicates. • QAQC protocols consist of the insertion of blanks at a rate of one in every 40 samples, insertion of standards (CRM’s) at a rate of approximately one in every 20 samples and duplicate field sample analysis of at a rate of approximately one in every 20 samples. • A selection of CRM’s is available to the geologists and insertion points are predetermined prior to drilling. • The geologist has the ability to override this predetermined insertion based on visual and geological characteristics of the current drill hole.

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	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.	• Insertion of assay blanks is increased when visual mineralisation is encountered and consists of insertion above and below the mineralised zone. • Samples typically weigh less than 3kg to ensure total preparation at the pulverisation stage. • RC field duplicates are collected on the 3m composites samples, using a riffle splitter. • Individual 1m RC sample duplicates are also collected using the same technique. • Laboratory checks include CRM’s and/or in-house controls, blanks, splits, and replicates that are analysed with each batch of samples submitted. These QC results are reported along with sample values in the final analytical report. Barren quartz washes are also routinely used in zones of mineralisation. • QAQC data is uploaded with the sample values into ERM’s database through an external database administrator (contractor). • A QAQC database is created as a separate table in the database and includes all field and internal laboratory QC samples. • QC data is reported through a series of control charts for analysis and interpretation by the Exploration Manager or his/her delegate. • The sample sizes are considered to be appropriate to correctly represent the mineralisation at the Mauretania Exploration Target based on the style of mineralisation (iron oxide copper gold), the thickness and mineral consistency of the intersection(s). • Emmerson’s sampling methodology (SOP) is available at any time for peer review.
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 any adjustment to assay data.	• The Exploration Manager of ERM has visually verified significant intersections in RC samples. • The geochemical data is managed by ERM using and external database administrator and secured through a relational database (Datashed). • Laboratory data is received in digital format and uploaded directly to the database. • Original data sheets and files are retained and are used to validate the contents of the database against the original logging. • No twin drill holes have been completed at the_Mauretania_ Exploration Target.
Location of data points	• Accuracy and quality of surveys used to locate drillholes (collar and downhole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control.	• RC Drill hole collars were surveyed (set out and pick up) using a differential GPS (DGPS) and by a suitably qualified company employee. • Collar survey accuracy is +/- 30 mm for easting, northing and elevation coordinates. • Co-ordinate system GDA_94, Zone 53. • Topographic measurements are collected from the final survey drill hole pick up. • Downhole survey measurements were collected at a minimum of every 30m using anREFLEX ® electronic single shot camera for RC. • This survey camera equipment is quoted by the manufacturer to have an accuracy of o Azimuth 0-360º ± 0.5º o Dip ± 90º ± 0.2º • If the measurement is considered to be affected by magnetic material (ironstone) then an average from the last non-affected and the next non-affected measurement is used.

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		• There were no down hole survey issues during this drill program.
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 compositing has been applied.	• Drill density within the_Mauretania Exploration_ _Target_area is 50m x 50m. On the discovery line containing MTRC004,005,006,023- 025,032 spacing is 10m x 10m. • RAB drill hole density is 20m x 20m. • There is insufficient drill / assay data to establish the geological and grade continuity at this stage of drilling. • No Mineral Resource Estimation can be applied to these Exploration Results.
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.	• Exploration drilling is perpendicular to the interpreted strike of the Mauretania target. • No orientation based sampling bias has been identified in the data at this point. • Results at this stage suggest that the geological and geophysical targets being tested have been drilled in the correct orientation. •
Sample security	• The measures taken to ensure sample security.	• Samples are selected, bagged and labelled by site geologist. • They are placed in sealed polyweave bags and then larger bulka bags for transport to the assay laboratory. • The assay laboratory confirms that all samples have been received and that no damage has occurred during transport. • Tracking is available through the internet and designed by the Laboratory for ERM to track the progress of batches of samples. • Sample receipt is logged into ERM’s sample ledger. • While samples are being processed in the Lab they are considered to be secure.
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	• An internal review of the sampling techniques, QAQC protocols and data collection was conducted by Emmerson in November 2013. • Optiro (2013) also reviewed the standard operating procedures for RC and diamond core sampling used and discussion with the site geologist confirmed that these were understood and are being followed.

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SECTION 1.2 REPORTING OF EXPLORATION RESULTS – THE MAURETANIA AREA – RC DRILLING (Criteria listed in the proceeding section may apply to this section)

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 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 Mauretania Exploration Target_is located within Exploration Licence 28761. • _The Mauretania target_is located on Tennant Station Perpetual Pastoral Lease. • Exploration Licence 28761 is 100% held by Emmerson Resources Limited. • Land Access is secured through Emmerson’s Indigenous Land Use Agreement (ILUA) with the CLC which is in good standing. • Land Access is secured through Emmerson’s Land Access Agreement signed by the owners of the Tennant Creek station. • Heritage surveying (assisted by the Central Land Council) was conducted prior to any exploration being conducted within the_Mauretania Project Area. • Sacred Site Certificate Numbers 2015-40a, 2015-40b and 2015-40c subsequently issued post field inspection allowing field exploration and drilling to commence. • Two exclusion zones were identified during the field inspections however do not impact on the current exploration drilling. • Emmerson do not believe that the two identified exclusion zones will impact of future exploration of the_Mauretania_ Project Area. • The tenement is in good standing and no known impediments exist.
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	• Emmerson Resources commenced exploration at the _Mauretania Exploration Target_in 2015. RAB drilling (158 holes for 6,956 metres), 27 RC holes for 4,503 metres (MTRC001-MTRC022) and 2 diamond (HQ) drill hole tails for 393.1 metres. • Minor regional mapping and rock chipping was undertaken by previous explorers. Most of this work was completed in the 1970’s by Australian Development Pty Ltd and in the 1980’s by Normandy Tennant Creek • Adelaide Petroleum NL (Sabminco NL JV) drilled 11 RC holes at the Black Cat Prospect (1988) however did not discover significant results and no further work was done. • Matana Minerals NL also mapped the general area in 1989.
Geology	• Deposit type, geological setting and style of mineralisation.	• The reader is referred to AusIMM Monograph 14 (Geology of the Mineral Deposits of Australia and Papua New Guinea), Volume 1, pp. 829-861, to gain an introduction to the regional geology and styles of gold-copper mineralisation of the area. • In 1995 the Northern Territory Geological Survey released a geological map and explanatory notes for the Tennant Creek 1:100,000 sheet, which covers the area of the license.

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		• The rocks of the Warramunga Formation host most of the ore bodies in the region and underlie the Exploration License. • Mineralisation is considered to be Proterozoic Iron Oxide Copper Gold (IOCG) mineralisation of similar style and nature to other mineralisation / deposits in the Tennant Creek Mineral Field.
Drillhole information	• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drillholes: o easting and northing of the drillhole collar o elevation or RL of the drillhole collar o dip and azimuth of the hole o downhole length and interception depth o hole length.	• A list of the drillholes and the drillhole collar locations and elevation, the total depth, drill type and dip and azimuth and assay results are included as a Table in the body of the text.
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 clearly stated. •	• Mineralized intersections are reported as down hole intervals and not weighted averages. • Please refer to the table of significant results in the body of the text for detail on cut off grades and mineralised widths. • These results are exploration results only and no allowance is made for recovery losses that may occur should mining eventually result, nor metallurgical flow sheet considerations. • Cut-off grades have been used for reporting of exploration drill results and are defined below the Table of Significant results.
Relationship between mineralization 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 drillhole angle is known, its nature should be reported. • If it is not known and only the downhole lengths are reported, there should be a clear statement to this effect (eg ‘downhole length, true width not known’).	• Mineralisation identified at the_Mauretania Exploration_ _Target_is contained within hematite-magnetite-quartz jasper ironstone which grades with depth to a hematite- magnetite ironstone (see cross – section in the text). • The ironstone dips 75 degrees to the southwest and strikes NNW-SSE. Magnetic modelling suggests the ironstone has a strike length of 120m and the modelled body plunges to the northwest.
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 drillhole collar locations and appropriate sectional views.	• Refer to Figures in body of text.
Balanced reporting	• Where comprehensive reporting of all 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.	• All results are reported.

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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.	• Geophysical magnetic susceptibility logging is completed at 1m intervals on site (RC drilling). • Three component magnetic probing of has been completed. • A regional RAB program was completed in 2015 and included some areas within the Mauretania Exploration Target. • One bulk sample was collected and stored for further metallurgical testing. • Rock characterisation of mineralised and non -mineralised material sent to Genalysis Laboratories.
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 commercially sensitive.	• Step out drilling North and South of MTRC032, MTRC34 testing for lateral extensions to mineralisation reported. • Re drilling of the 2 abandoned drill holes. • Geological reinterpretation based on new drilling information.

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The exploration results contained within the above company release are in accordance with the guidelines of The Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code, 2012 Edition–Table 1).

Section 1.1 SAMPLING TECHNIQUES AND DATA – SUSAN PROJECT AREA – RC DRILLING

(Criteria in this section apply to all succeeding sections)

Criteria	JORC Code explanation	Commentary
Sampling techniques	• Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as downhole 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.	• The_Susan_holes were sampled using Reverse Circulation drilling techniques (RC). Fifteen holes (SS001-SS015) were drilled for a total of 520m and are reported in this current release. • Holes were angled to intersected the steep dipping ironstone and were mostly drilled to the South. Two drill holes (SS003 & SS014) were drilled as vertical holes to test vertical continuity of ironstone body. • RC chips are riffle split on site to obtain 4m composite samples from which 2.5 – 3.0kg was pulverised (at Genalysis in Alice Springs) to produce a 25g charge for analysis. • Gold is assayed using a 25g Fire Assay charge and base metals • by four acid digestion / ICP-MS/OES (Au, As, Ag, Bi, Cu, Fe, Pb, Zn, Mo, Co, Sr, Sb). • Selected 1m samples were individually assayed. • Individual 1m samples are pulverised to produce a 25g charge for analysis by four acid digest with an ICP/OES (Cu, Fe, Pb, Zn) ICP/MS (Ag, As, Bi, Mo, Sr, Sb, Co) & Fire Assay/ICP- OES (Au) finish. • RC samples were collected via a fixed cone splitter that is mounted to the drill rig.
Drilling techniques	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg 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).	• RC drilling accounts for 100% of the current reported drilling at_Susan Exploration Target._ • RC drill rig used was an Atlas Copco L8-30. • The drill rig produces a 112mm diameter hole and is sampled using a face sampling bit. • Drill hole depths range from 20m to 54m. • RC recoveries are logged and recorded in the database.
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.	• RC samples are visually checked for recovery, moisture and contamination. • No wet samples were recorded during the drilling. • Every attempt is made to collect representative samples. • Recoveries are considered good for the reported RC drilling. • The cyclone and splitter are routinely cleaned with more attention spent during the drilling of damp. • Emmerson do not consider that there is evidence for sample bias that may have occurred due to preferential loss/gain of fine/coarse material.
Logging	• Whether core and chip samples have been geologically and geotechnically logged to a	• Geological logging was completed by Territory Resources geologists.

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	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.	• Emmerson’s logging codes and procedures were provided to Territory to enable consistency of logging. • All RC samples were lithologically logged in one metre intervals. • Drill hole logging data was provided to Emmerson post drilling. • Lithological data was uploaded to Emmerson’s relational database whereby the data undergoes a further set of validations checks prior to final upload. • Codes included lithology, oxidation, alteration, veining and presence of sulphide minerals. • Representative RC chips and diamond core were provided to Territory geologists (a physical reference set) to ensure consistency of logging. • Structural logging of the RC drill samples was not possible. • Magnetic susceptibility data for all individual 1m RC samples were collected. • All RC chips were photographed and stored in trays in 1m intervals. • All RC chips are secured in Territory’s shed in Tennant Creek.
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 insitu 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.	• RC samples were collected on the rig using cone (from the drill rig) and then riffle split by the field assistants if dry to obtain a 3kg sample. • The sample preparation of RC samples follows industry best practice in sample preparation involving oven drying, coarse crushing of the sample down to ~10mm followed by 5-minute pulverisation of the entire sample (total prep) using LM5 grinding mills to a grind size of 85% passing 75 micron. • Pulverised material not required by the laboratory (pulps) including duplicate samples are returned to Territory Resources and stored undercover at the Tennant Creek shed. • Coarse rejects are disposed of by the Laboratory. •
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.	• Field QC procedures involve the use of certified reference material (CRM’s) as assay standards, and include blanks, duplicates. • In every 100 samples Territory have inserted 2 Standards, 2 Field Duplicates and 2 Blanks. • Territory are planning to do extra Lab Repeats (Lab Duplicates) and blind re-submission duplicates over selected intervals. • This would then bring the total QAQC sampling up to well over the 5% minimum as per industry best practice. • A selection of CRM’s is available to the geologists and insertion points are predetermined prior to drilling. • Samples typically weigh less than 3kg to ensure total preparation at the pulverisation stage. • RC field duplicates are collected on the 4m composites samples, using a riffle splitter. • Individual 1m RC sample duplicates are also collected using

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		the same technique. • Laboratory checks include CRM’s and/or in-house controls, blanks, splits, and replicates that are analysed with each batch of samples submitted. These QC results are reported along with sample values in the final analytical report. Barren quartz washes are also routinely used in zones of mineralisation. • QAQC data provided by Territory Resources is then uploaded with the sample values into ERM’s database through an external database administrator (contractor). • A QAQC database is created as a separate table in the database and includes all field and internal laboratory QC samples. • QC data may be reported through a series of control charts for analysis and interpretation by the Exploration Manager or his/her delegate. This has not been done for reported samples. • The sample sizes are considered to be appropriate to correctly represent the mineralisation at_The Susan Exploration Target_ based on the style of mineralisation (iron oxide copper gold), the thickness and mineral consistency of the intersection(s).
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 any adjustment to assay data.	• Territory Resource’s Exploration Manager has visually verified significant intersections in RC samples. • The geochemical data is managed by Territory Resources. • Once geochemical data is provided to ERM it is loaded using and external database administrator and secured through a relational database (Datashed). • Laboratory data is received in digital format provided by Territory Resources. • Original data sheets and files have been requested to validate the contents of the database against the original logging. • No twin drill holes have been completed at_The Susan_ Exploration Target.
Location of data points	• Accuracy and quality of surveys used to locate drillholes (collar and downhole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control.	• RC Drill hole collars were surveyed (set out) using a differential GPS and by a suitably qualified contractor to Territory. • Collar survey (set out) accuracy is +/- 30 mm for easting, northing and elevation coordinates. • Final collar positions have not been collected (picked up) at the time of this release. • Co-ordinate system GDA_94, Zone 53. • Topographic measurements will be collected from the final survey drill hole pick up and a DTM will be created. • Position of mine workings were digitised and coordinated using historical reports. Accuracy is considered +/- 2metres. • Downhole survey measurements were collected at a minimum of every 18m using anREFLEX electronic single shot camera for RC. • This survey camera equipment is quoted by the manufacturer to have an accuracy of o Azimuth 0-360º ± 0.5º o Dip ± 90º ± 0.2º • If the measurement is considered to be affected by magnetic material (ironstone) then an average from the last non- affected and the next non-affected measurement is used. • There were no down hole survey issues during this drill program.

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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 compositing has been applied.	• Drill density within_The_ Susan Exploration _Target_area is 10m x 10m. Some lines have been drilled to 5m x 5m. • There is insufficient drill / assay data to establish the geological and grade continuity at this stage of drilling. • No Mineral Resource Estimation can be applied to these Exploration Results.
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.	• Exploration drilling is perpendicular to the interpreted strike of _The Susan exploration_target. • No orientation based sampling bias has been identified in the data at this point. • Results at this stage suggest that the geological target being tested are drilled in the correct orientation. •
Sample security	• The measures taken to ensure sample security.	• Samples are selected, bagged and labelled by site geologist. • They are placed in sealed polyweave bags and then transported by road to the Alice Springs assay laboratory. • The assay laboratory confirms that all samples have been received and that no damage has occurred during transport. • While samples are being processed in the Lab they are considered to be secure.
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	• No audits have been completed on the reported drilling and results. • Emmerson’s exploration manager has located the holes and confirms that they have been drilled.

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SECTION 1.2 REPORTING OF EXPLORATION RESULTS – THE SUSAN PROJECT AREA – RC DRILLING (Criteria listed in the proceeding section may apply to this section)

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 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 Susan Exploration Target_is located within Mining Licence Central 524 (ML C524). • _The Susan Exploration target_is located on Vacant Crown Land, Parcel 04440. • Mining Licence Central 524 (ML C524).is 100% held by Emmerson Resources Limited. • Land Access is secured through Emmerson’s Pre-Existing Tenements Agreement (PET) with the CLC which is in good standing. • Land Access is secured through Emmerson’s Land Access Agreement signed by the owners of the Tennant Creek station. • Heritage surveying (assisted by the Central Land Council) was conducted prior to any exploration being conducted within_The Susan Project Area. • Sacred Site Certificate Number 2016-114 was issued post field inspection allowing field exploration and drilling to commence. • One restricted work area is identified over The Susan ironstone outcrop. Drilling was approved under The Susan outcrop. • Emmerson do not believe that the two identified exclusion zones will impact of future exploration of_The_ Susan Project Area. • The tenement is in good standing and no known impediments exist.
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	• Prospecting via a shallow vertical shaft (30m) produced a reported 120 tonnes of ore at a grade of 23.5 g/t gold (91 0z) from 1955-1960. • Normandy Mining completed regional mapping and reconnaissance drilling over the Susan Project area. This work was completed during 1995-2000. • Emmerson Resources commenced exploration at_The_ _Susan Exploration Target_in 2016. RC drilling 10 holes for 1,065 metres (SSRC011- 012) & (SSRC014-021) and one diamond (NQ) drill hole for 549.2 metres. • Outcrop mapping and rock chipping was undertaken by Emmerson Resources.
Geology	• Deposit type, geological setting and style of mineralisation.	• The reader is referred to AusIMM Monograph 14 (Geology of the Mineral Deposits of Australia and Papua New Guinea), Volume 1, pp. 829-861, to gain an introduction to the regional geology and styles of gold-copper mineralisation of the area. • In 1995 the Northern Territory Geological Survey released a geological map and explanatory notes for the Tennant Creek 1:100,000 sheet, which covers the area of the license.

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Criteria	JORC Code explanation	Commentary
		• The rocks of the Warramunga Formation host most of the ore bodies in the region and underlie the Exploration License. • Mineralisation is considered to be Proterozoic Iron Oxide Copper Gold (IOCG) mineralisation of similar style and nature to other mineralisation / deposits in the Tennant Creek Mineral Field.
Drillhole information	• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drillholes: o easting and northing of the drillhole collar o elevation or RL of the drillhole collar o dip and azimuth of the hole o downhole length and interception depth o hole length.	• A list of the drillholes and the drillhole collar locations and elevation, the total depth, drill type and dip and azimuth and assay results are included as a Table in the body of the text.
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 clearly stated.	• Mineralized intersections are reported as down hole intervals and not weighted averages. • Please refer to the table of significant results in the body of the text for detail on cut off grades and mineralised widths. • These results are exploration results only and no allowance is made for recovery losses that may occur should mining eventually result, nor metallurgical flow sheet considerations. • Cut-off grades have been used for reporting of exploration drill results and are defined in the Table of Significant results.
Relationship between mineralization 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 drillhole angle is known, its nature should be reported. • If it is not known and only the downhole lengths are reported, there should be a clear statement to this effect (eg ‘downhole length, true width not known’).	• Mineralisation identified at The Susan _Exploration Target_is contained within hematite- magnetite ironstone (see cross – section in the text). • The ironstone dips 85 degrees to the south and strikes east-west. Magnetic modelling suggests the ironstone has a strike length of 30m and the modelled body plunges to the southwest.
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 drillhole collar locations and appropriate sectional views.	• Refer to Figures in body of text.
Balanced reporting	• Where comprehensive reporting of all 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.	• All available results are reported. Note that many of the 4m composite samples have not been received or provided by Territory Resources to Emmerson Resources Ltd. Refer to Table 2 in the text.
Other substantive exploration data	• Other exploration data, if meaningful and material, should be reported including (but not	• Not Applicable.

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Criteria	JORC Code explanation	Commentary
	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.
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 commercially sensitive.	• Collection of a 100kg composited bulk metallurgical sample from recent drilling. • Ore and waste characterisation sampling to assist with production of a Mining Management Plan. • Additional drilling is required to establish grade and volume of the mineralised body. • Geotechnical investigations.

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