EMPIRE RESOURCES LIMITED — Capital/Financing Update 2021

Feb 14, 2021

15 February 2021

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ASX Release

WIDESPREAD COPPER, GOLD & NICKEL MINERALISATION IN AIRCORE DRILLING AT YUINMERY

HIGHLIGHTS

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• Encouraging copper (Cu), gold (Au) and nickel (Ni) mineralisation encountered in reconnaissance AC drilling at the Yuinmery base metals project.

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• Follow up RC drilling completed in January intersected prospective, sulphidebearing geology across multiple prospects.

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Anomalous AC results include:

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• 2m @ 1,148ppm Cu from 36m (EOH) in YAC20-10;

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• 6m @ 2,182ppm Cu from 20m (EOH) in YAC20-40;

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• 4m @ 2,776ppm Cu and 679ppb Au from 12m in YAC20-45;

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• 16m @ 580ppm Cu and 2,215ppm Ni from surface (EOH) in YAC20-68;

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• 15m @ 1,703ppm Cu and 797ppm Ni from 4m (EOH) in YAC20-70;

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• including 8m @ 1,732ppm Cu and 1,061ppm Ni from 8m;

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• and 3m @ 2,478ppm Cu and 672ppm Ni from 16m (EOH); and,

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12m @ 2,349ppm Ni from 8m (EOH) in YAC20-73.

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Assays are pending for all RC drilling.

• Further RC and diamond drilling is planned.

Empire Managing Director, Sean Richardson commented:

“These strongly anomalous results from reconnaissance aircore drilling are extremely encouraging and reinforces our hypothesis that the Yuinmery Project represents a significant opportunity for further multi-element mineral discoveries.

“Empire has not been sitting on its hands and has already completed follow up RC drilling at a number of the newly identified prospects. Follow up RC and diamond drilling is planned to further improve the geological confidence in the Yuinmery prospects.

“The pipeline of prospects at Yuinmery is extensive. Of the 44 identified prospects, 11 remain untested by any drilling and a further 13 have had no drilling below 75m, offering excellent opportunities for further discovery.

“Empire remains well funded. With its significant investment portfolio nearing maturity, 2021 will be an extremely active one on all exploration fronts.”

EMPIRE RESOURCES LIMITED ACN 092 471 513 ASX: ERL

www.resourcesempire.com.au t +61 (0) 8 6389 1032 info@resourcesempire.com.au f +61 (0) 8 9386 9473 159 Stirling Highway, Nedlands WA 6009

ASX Announcement 15 February 2021

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SUMMARY

Empire Resources (ASX: ERL, Empire) is pleased to report that recent aircore (AC) drilling has intersected encouraging zones of Cu, Au and Ni mineralisation at its Yuinmery base metals project in Western Australia.

The drilling completed in late 2020 consisted of 76 scout AC holes testing previously undrilled targets prospective for volcanogenic massive sulphide (VMS) base metal and platinum group metal (PGM) mineralisation.

The AC drilling has been successful in intersecting anomalous Cu-Au mineralisation within the oxide zone at prospects YT01, YT02 and YT05; and Cu-Au-Ni anomalism at YT12. Empire subsequently completed a program of first pass reverse circulation (RC) drilling at YT01 and YT05 late January.

Step out RC drilling was also completed at YT01 and Smith Well to follow up previous mineralised intercepts.

Results are pending for all RC drilling completed in January.

BACKGROUND

Empire Resources’ Yuinmery Project is located 470km north-east of Perth in WA and comprises five contiguous granted mineral tenements covering approximately 83.7km[2] within the Archaean Youanmi Greenstone Belt (“YGB”).

The Yuinmery Project is bounded by the Youanmi shear zone to the west and the Yuinmery shear zone to the west (Figure 1). Known Cu-Au mineralisation at Yuinmery is of VMS style. Empire’s Just Desserts deposit has a previously reported JORC Resource of 2.5Mt @ 1.31% Cu and 0.49g/t Au[2] .

Empire recently identified the potential for PGM mineralisation at Yuinmery where RC drilling in June 2020 discovered elevated platinum (Pt) and palladium (Pd) values associated with broad Cu-Ni mineralisation at YT01. YRC20-28 returned 12m @ 0.34g/t Pd, 0.11g/t Pt, 0.38% Cu, 0.11% Ni and 0.02% Co from 151m. Values of up to 0.53g/t Pd and 0.24g/t Pt were returned over 1m samples[3] .

The Constantine prospect (Figure 2), has historically returned significant widths of low-grade PGMs, with up to 80m @ 0.49g/t Pd+Pd and 0.22% Ni in YRC10-15[1] . These results have lacked any systematic follow up since 2010.

Constantine is interpreted to be hosted by a large mafic-ultramafic intrusion, with PGM mineralisation associated with pyrite, pyrrhotite and magnetite. The PGM related magnetite alteration defines a significant magnetic anomaly that appears to be coincident with the host layered mafic intrusion. The Constantine mafic intrusion extends up to 13km in strike. Surface geochemistry has defined an elevated Pt+Pd and Ni anomaly over four kilometres.

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Figure 1 – Yuinmery Project Location Map

Empire has now identified a sound pipeline of Cu, Au, Ni, and PGM targets within its southern Yuinmery tenement area. Multiple drill-ready targets from greenfields-style conceptual targets through to more advanced prospects will be tested during future field programs.

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DRILLING

Reconnaissance AC drilling during the December 2020 quarter targeted several high priority geochemical and geophysical anomalies prospective for VMS-type Cu-Au and Cu-Ni-PGM mineralisation at the YT01, YT02, YT05, and YT12 prospects (Figure 2, Table 1).

76 AC holes for 2,786m were drilled (Table 2). Results and observations from the AC program are discussed below. Follow up RC drilling was swiftly executed at YT01 and YT05 during January 2021. One RC hole was also completed at the Smith Well prospect and an RC precollar, in preparation for a diamond tail, was drilled at the YT01 prospect. In total 7 RC holes for 901m were completed.

All results of the follow up RC drilling are pending.

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Figure 2 – Yuinmery Deposits, Prospects and Drill Collar Locations. Base Image VTEM ch25_1641us_NEshade.

YT05 Prospect

The YT05 prospect was initially defined by a subtle multi-element (Cu-Au-Zn-Ni) geochemical anomaly. The target was interpreted to correspond with stratigraphy known to be favourable for VMS mineralisation at Yuinmery.

Interpretation of ASTER data indicates an increase in chlorite and talc, two alteration minerals associated with large VMS mineral systems and with the high-grade Cu-Au mineralisation observed in the existing Just Desserts and A Zone deposits.

YT05 is also associated with a distinct electromagnetic (EM) conductor. EM has been successfully used at Yuinmery to identify sulphide mineralisation and/or conductive shale horizons. The shale horizons are typically located in the hanging wall and are a distinctive and

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ASX: ERL

ASX Announcement 15 February 2021

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mappable VMS marker horizon at Yuinmery. VMS-style mineralisation at Yuinmery is also known to occur in stratigraphic horizons not necessarily accompanied by hanging wall sediment.

13 AC holes for 555m were drilled across a single ~500m traverse at the YT05 prospect. The AC drilling represented the first bedrock test of YT05 with anomalous results including:

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• 8m @ 1,024ppm Cu from 4m, and 8m @ 1,253ppm Cu from 24m (YAC20-38); and,

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• 6m @ 2,182ppm Cu from 20m (EOH) (YAC20-40).

Three RC holes for 312m were drilled in January to test the anomalies identified in the AC drilling. Observed geology consists of hanging-wall felsic to intermediate volcanics, which were notably sheared, and increasingly chlorite-carbonate-talc altered toward the contact with a medium to fine grained mafic volcanic.

Zones of interpreted interbedded or chloritic shales, graphitic shales and siliceous chert were observed proximal to the main geological contact. These hanging-wall sediments were generally associated with semi-massive, disseminated and stringer vein sulphides, including pyrite, pyrrhotite, and chalcopyrite.

Results are pending for the January RC drilling at YT05.

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Figure 3 – YT05 Prospect Oblique Cross Section A-A’.

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YT01-NW Prospect

YT01-NW is interpreted as a potential offset of the Just Desserts and C Zone deposits, due to one, or a combination of, local folding, north-north-east strike slip faulting, layer parallel thrust faulting and repetition of the pre-existing stratigraphic units.

Mineralisation at the Just Desserts and C Zone deposits is located close to the contact between basaltic and andesitic rocks on the western limb of the Yuinmery Syncline. The basalt-andesite contact can be traced along strike from Just Desserts to C Zone and around the heel of the Yuinmery Syncline towards and across the eastern limb. The contact is evident in geophysical datasets and has been confirmed by historical drilling and now in RC drilling at YT01-NW.

10 AC holes for 303m were drilled at YT01-NW (Figure 4, Table 2) with anomalous results including 2m @ 1,148ppm Cu from 36m (YAC20-10).

Two RC holes for 204m were drilled at YT01-NW in January. The geology observed in the drilling is consistent with the known Cu-PGM mineralisation at YT01. Minor disseminated and stringer sulphides were observed proximal to the contact between a dolerite and fine-grained basaltic rocks in the footwall. Siliceous chert was also noted in the hanging wall, which provides an encouraging indicator for VMS-style mineralisation.

Results are pending for the January RC drilling at YT01-NW.

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Figure 4 – YT01-NW Prospect Oblique Cross Section B-B’.

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YT01 Prospect

The YT01 prospect was identified by the Company in late 2019 and is associated with a strong east-west trending, multi-element (Au-Cu-Zn-Ni) geochemical signature that extends over 3.5km in strike length.

An RC pre-collar was completed in January in preparation for a diamond tail targeting the interpreted mineralised zone (Figure 5). This diamond hole is planned to provide structural and stratigraphic data to assess the nature and occurrence of sulphide mineralisation. The diamond hole will also offer an opportunity to undertake down hole geophysical surveys.

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Figure 5 – YT01 Prospect 687,250mE Cross Section C-C’.

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YT12 Prospect

YT12 is characterised by a 1km long Cu-Au-Zn-Ni soil anomaly located across differentiated mafic and ultramafic volcanic rocks. The southern-most line intersected siliceous chert and mafic lithologies that are coincident with a major magnetic gradient. Cu-Ni anomalism has prompted further interest in this target.

36 AC holes for 929m were drilled at the YT12 prospect. Anomalous AC results include:

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• 4m @ 2,776ppm Cu and 272ppm Ni from 12m (YAC20-45);

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• 4m @ 1,051ppm Cu and 1,238ppm Ni from 12m (YAC20-56);

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• 6m @ 2,346ppm Cu and 450ppm Ni from 24m (EOH) (YAC20-56);

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• 16m @ 580ppm Cu and 2,215ppm Ni from surface (EOH) (YAC20-68);

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• 15m @ 1,703ppm Cu and 797ppm Ni from 4m (EOH) (YAC20-70);

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including 3m @ 2,478ppm Cu and 672ppm Ni from 16 (EOH); and,

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• 12m @ 387ppm Cu and 2,349ppm Ni from 8m (EOH) (YAC20-73).

Follow up drilling is planned to target the strongly anomalous Cu-Ni occurrences identified in the AC drilling.

Smith Well Prospect

The Smith Well Cu-Au-Ni prospect contains two steeply west dipping, north-west plunging parallel broad mineralised zones.

Smith Well has been defined over a strike of 100m and to a depth of 200 vertical metres. Intercepts greater than 1% Cu in the upper horizon are associated with elevated nickel values greater than 0.2% and low-level Au and Co concentrations. The footwall horizon is associated with elevated Cu and Au greater than 1% Cu and 100ppb Au.

A broad stratigraphic horizon extends from Smith Well in the east around to the Just Desserts deposit to the west. This stratigraphic horizon includes multiple prospects such as C-Zone and Claudius, where encouraging historical Cu-Au mineralisation has been identified.

One RC hole at Smiths Well was recently completed to the north (YRC21-02, Figure 2), which intersected approximately 6m of sulphide mineralisation in the interpreted upper horizon position.

Empire plans to conduct further DHEM surveys at Smith Well to aid in targeting off-hole sulphide mineralisation and the hanging-wall shale marker horizon.

Results are pending for the January RC drilling at Smiths Well.

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ASX Announcement 15 February 2021

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DISCUSSION & FORWARD PLAN

Empire’s improved understanding of the geology, alteration characteristics and structure at Yuinmery, paired with discovery of new Cu-Au, Cu-Ni and PGM occurrences have now expanded the Company’s opportunities to target previously untested areas. Of significance is the evolution of Empire’s conceptual models of VMS deposits, layered PGM occurrences and orogenic gold mineralisation used to target exploration.

Empire plans to leverage from a continuous exploration approach to enhance and complement its existing knowledge base. A detailed structural interpretation of the Yuinmery project alongside geophysical techniques, such as ground gravity and DHEM surveys are planned. These techniques are proven to be successful in identifying VMS deposits and characterising the structural setting and timing of mineralisation.

Ongoing geochemical and geophysical analysis will to be used in the identification of geochemical discontinuities and/or stratigraphic horizons that may have coincided with periods of hydrothermal activity and the formation of VMS mineralisation.

A systematic exploration approach is employed to test Empire’s pipeline of targets, with first pass AC, infill AC and RC programs planned at multiple regional targets and where pending RC results indicate. Diamond and RC drilling is also planned to test deeper conductive bodies and to test favourable stratigraphic and structural targets for VMS mineralisation.

Empire is now able to confidently drill target high grade repetitions and potential extensions adjacent to, and within known deposits. There is a considerable lack of drilling at depth across Empire’s tenement package and thus an opportunity to explore for favourable host rocks.

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This announcement is authorised for release by:

Sean Richardson Managing Director

For further information on the Company Phone: +61 (0)8 6389 1032 www.resourcesempire.com.au

About Empire

Empire Resources Limited (ASX:ERL) is a gold and copper focussed exploration and development company. Empire owns 100% of two highly prospective projects (Figure 6). The Yuinmery Copper-Gold Project 470km North East of Perth in the base metal rich Youanmi Greenstone Belt and the Penny’s Gold Project 45km North East of Kalgoorlie in the prolific Eastern Goldfields Region of Western Australia. Empire’s projects have numerous exploration targets with excellent potential.

Empire has an experienced team of exploration, development and financial professionals who are committed to developing a sustainable and profitable mineral business. Empire seeks to extract value from direct exploration in its existing projects as well as identifying value accretive investment opportunities that complement the Company’s development objectives.

Competent Person Statements

The information in this report that relates to Exploration Results is based on information compiled and/or reviewed by Melanie Sutterby, who is a Member of the Australian Institute of Geoscientists. Miss Sutterby is an employee of Empire Resources and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity she 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”. Miss Sutterby consents to the inclusion in the report of the matters based on this information in the form and context in which they appear.

The information is this release concerning the Mineral Resources for the Just Desserts deposit has been estimated by Mr Peter Ball B.Sc who is a director of DataGeo Geological Consultants and is a member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Ball has sufficient experience which is relevant to the style of mineralization and type of deposit under consideration and qualifies 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 Ball consents to the inclusion in this public release of the matters based on his information in the form and context in which it appears.

Additional JORC Information

Further details relating to the information in this release can be found in the following ASX announcements:

1. ASX:ERL “ New Dual Campaign on Yuinmery ” 2 March 2011

2. ASX:ERL “ Updated Copper-Gold Resource Yuinmery Project ” 17 May 2016

3. ASX:ERL “ Encouraging Cu-Ni-PGM Mineralisation in Drilling at Yuinmery ” 23 July 2020

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ASX Announcement 15 February 2021

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Figure 6 – Empire Resources Project Locations

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Prospect	Hole ID Fr. (m) To (m) Int. (m) Cu (ppm) Au (ppb) Ni (ppm) Co (ppm) Fe (%)
YT01	PAC20-10 36 38 (EOH) 2 1,148 93 37 82 12.4
YT02	PAC20-16 12 20 8 23 243 345 103 6.2
	inc 12 16 4 37 386 429 174 6.2
	and 36 48 12 1,007 32 415 35 8.6
	PAC20-19 16 24 8 1,203 2 162 1,098 9.9
YT05	PAC20-28 12 16 4 83 105 182 88 10.5
	PAC20-34 16 24 8 203 133 32 8 8.0
	PAC20-38 4 12 8 1,024 - 142 23 21.9
	and 24 32 8 1,253 10 316 61 7.7
	PAC20-40 20 26 (EOH) 6 2,182 20 934 234 9.5
YT12	PAC20-45 8 16 8 1,886 278 301 119 10.2
	inc 12 16 4 2,776 679 272 87 10.6
	PAC20-46 4 8 4 701 7 1,250 129 10.1
	PAC20-53 40 44 4 1,102 12 387 147 12.0
	PAC20-56 12 16 4 1,051 34 1,238 223 13.4
	and 24 30 (EOH) 6 2,346 126 450 82 9.5
	PAC20-58 0 4 4 1,000 17 427 68 14.1
	PAC20-65 16 20 4 538 184 451 303 8.3
	PAC20-68 0 16 (EOH) 16 580 10 2,215 151 11.0
	PAC20-69 0 12 12 606 9 1,341 293 16.9
	PAC20-70 4 19 (EOH) 15 1,703 18 797 124 12.3
	inc 8 16 8 1,732 22 1,061 152 11.0
	and 16 19 (EOH) 3 2,478 23 672 94 8.7
	PAC20-73 8 20 (EOH) 12 387 5 2,349 139 19.7

Table 1 – Anomalous AC Drilling Results

Note. Downhole intervals using a nominal cut off >2,000ppm Cu, 100ppb Au and/or >1,000ppm Ni

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Prospect	Hole ID East North RL Depth Az Dip
YT01	YAC20-01 686,697 6,835,716 462 27 220 -60
	YAC20-02 686,685 6,835,703 462 23 220 -60
	YAC20-03 686,677 6,835,691 462 27 220 -60
	YAC20-04 686,666 6,835,680 462 36 220 -60
	YAC20-05 686,647 6,835,662 462 22 220 -60
	YAC20-06 686,630 6,835,644 462 20 220 -60
	YAC20-07 686,610 6,835,622 462 33 220 -60
	YAC20-08 686,586 6,835,598 462 39 220 -60
	YAC20-09 686,564 6,835,575 462 38 220 -60
	YAC20-10 686,542 6,835,552 462 38 220 -60
YT02	YAC20-11 687,743 6,835,840 462 26 137 -60
	YAC20-12 687,762 6,835,816 462 26 138 -60
	YAC20-13 687,789 6,835,788 462 21 135 -60
	YAC20-14 687,815 6,835,758 462 19 135 -60
	YAC20-15 687,844 6,835,726 462 49 135 -60
	YAC20-16 687,867 6,835,702 462 64 136 -60
	YAC20-17 687,898 6,835,672 462 12 135 -60
	YAC20-18 687,917 6,835,650 462 54 135 -60
	YAC20-19 687,945 6,835,626 462 73 132 -60
	YAC20-20 687,981 6,835,593 462 48 138 -60
	YAC20-21 687,900 6,835,965 462 84 130 -60
	YAC20-22 687,937 6,835,933 462 90 132 -60
	YAC20-23 687,976 6,835,893 462 86 134 -60
	YAC20-24 688,012 6,835,860 462 90 134 -60
	YAC20-25 688,051 6,835,827 462 93 132 -60
	YAC20-26 688,095 6,835,783 462 87 135 -60
	YAC20-27 688,129 6,835,742 462 77 135 -60
YT05	YAC20-28 686,740 6,838,109 462 28 222 -60
	YAC20-29 686,713 6,838,074 462 28 220 -60

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	YAC20-30 686,684 6,838,033 462 64 220 -60
	YAC20-31 686,657 6,838,008 462 69 220 -60
	YAC20-32 686,627 6,837,965 462 51 220 -60
	YAC20-33 686,596 6,837,929 462 71 220 -60
	YAC20-34 686,565 6,837,893 462 50 224 -60
	YAC20-35 686,537 6,837,860 462 43 220 -60
	YAC20-36 686,516 6,837,840 462 28 220 -60
	YAC20-37 686,497 6,837,814 462 31 221 -60
	YAC20-38 686,469 6,837,788 462 35 220 -60
	YAC20-39 686,452 6,837,766 462 31 220 -60
	YAC20-40 686,420 6,837,724 462 26 221 -60
YT12	YAC20-41 690,050 6,837,959 462 20 90 -60
	YAC20-42 690,111 6,837,959 462 7 90 -60
	YAC20-43 690,171 6,837,959 462 43 90 -60
	YAC20-44 690,227 6,837,962 462 49 90 -60
	YAC20-45 690,287 6,837,956 462 40 90 -60
	YAC20-46 690,343 6,837,952 462 60 92 -60
	YAC20-47 690,398 6,837,949 462 21 89 -60
	YAC20-48 689,737 6,837,422 462 20 90 -60
	YAC20-49 689,887 6,837,423 462 13 90 -60
	YAC20-50 689,829 6,837,424 462 35 90 -60
	YAC20-51 689,876 6,837,427 462 13 90 -60
	YAC20-52 689,916 6,837,430 462 19 90 -60
	YAC20-53 689,975 6,837,429 462 47 90 -60
	YAC20-54 690,022 6,837,429 462 40 90 -60
	YAC20-55 690,062 6,837,432 462 35 90 -60
	YAC20-56 690,111 6,837,430 462 30 90 -60
	YAC20-57 690,162 6,837,430 462 30 90 -60
	YAC20-58 690,202 6,837,432 462 28 90 -60
	YAC20-59 690,257 6,837,429 462 13 90 -60

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YAC20-60	690,309	6,837,431	462	22	90	-60
YAC20-61	690,369	6,837,432	462	22	90	-60
YAC20-62	690,427	6,837,427	462	13	90	-60
YAC20-63	689,761	6,836,948	462	36	87	-60
YAC20-64	689,815	6,836,947	462	27	91	-60
YAC20-65	689,860	6,836,950	462	33	87	-60
YAC20-66	689,915	6,836,951	462	13	90	-60
YAC20-67	689,965	6,836,947	462	18	90	-60
YAC20-68	690,021	6,836,947	462	16	90	-60
YAC20-69	690,066	6,836,945	462	19	90	-60
YAC20-70	690,113	6,836,942	462	19	90	-60
YAC20-71	690,162	6,836,949	462	16	91	-60
YAC20-72	690,207	6,836,957	462	16	88	-60
YAC20-73	689,901	6,836,668	462	20	87	-60
YAC20-74	689,852	6,836,670	462	20	90	-60
YAC20-75	689,809	6,836,662	462	32	88	-60
YAC20-76	689,755	6,836,643	462	24	80	-60

Table 2 – AC Drillhole Summary

Prospect	Hole ID East North RL Depth Az Dip
YT01	YRC21-01 687,250 6,835,525 463 187 185 -60
Smith Well	YRC21-02 688,829 6,837,100 454 198 135 -60
YT02	YRC21-03 686,555 6,835,562 462 102 225 -60
	YRC21-04 686,600 6,835,611 462 102 225 -60
YT05	YRC21-05 686,397 6,837,695 462 54 220 -60
	YRC21-06 686,437 6,837,745 462 90 220 -60
	YRC21-07 686,462 6,837,778 462 168 220 -60

Table 3 – RC Drillhole Summary

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JORC TABLE 1 FOR THE YUINMERY PROJECT

Section 1 Sampling Techniques and Data

Criteria	JORC Code Explanation	JORC Code Explanation	Commentary	Commentary
Sampling	•	Nature and quality of sampling (eg	•	Aircore drilling was used to collect one
techniques		cut channels, random chips, or		metre samples. Drilling consisted
		specific specialised industry		predominantly using a blade bit with a
		standard measurement tools		hammer bit used to drill through harder
		appropriate to the minerals under		zones.
		investigation, such as down hole	•	Reverse Circulation (RC) drilling using a
		gamma sondes, or handheld XRF		high pressure air and cone splitter was
		instruments, etc). These examples		used to collect one metre samples,
		should not be taken as limiting the		where reported..
		broad meaning of sampling Include	•	As a first pass sampling program for
		reference to measures taken to		selected RC samples, four metre
		ensure sample representivity and		composite samples were collected from
		the appropriate calibration of any		the one metre green bags placed on the
		measurement tools or systems		ground by the drill crew. The RC
		used.		composites were collected using a PVC
	•	Include reference to measures		spear. Selected one metre samples were
		taken to ensure sample		sent to the laboratory.
		representivity and the appropriate	•	The reject from the cone was collected in
		calibration of any measurement		green bags and laid out in order of drilled
		tools or systems used.		metres.
	•	Aspects of the determination of	•	Four metre composite samples were
		mineralisation that are Material to		collected from one metre AC sample
		the Public Report.		piles placed on the ground by the drill
	•	In cases where ‘industry standard’		crew. The composites were collected
		work has been done this would be		using a scoop.
		relatively simple (eg ‘reverse	•	Composite samples from AC and RC
		circulation drilling was used to		generally were collected as 2kg made up
		obtain 1 m samples from which 3		from 0.5kg sub samples from each pile.
		kg was pulverised to produce a 30	•	All samples were sent to Intertek
		g charge for fire assay’). In other		laboratory in Perth.
		cases more explanation may be	•	Duplicate and standards were included
		required, such as where there is		and sent for analysis with the samples.
		coarse gold that has inherent	•	All samples were pulverised to better
		sampling problems. Unusual		than 95% passing 75μm with a 10g
		commodities or mineralisation		aliquot taken for assay.
		types (eg submarine nodules) may	•	Multielement analysis was completed
		warrant disclosure of detailed		using an aqua regia digest and ICP-MS
		information		finish.
Drilling	•	Drill type (e.g. core, reverse	•	Aircore (AC) drill rig was used
Techniques		circulation, open-hole hammer,		predominantly with a blade bit, but a
		rotary air blast, auger, Bangka,		hammer was used where the ground was
		sonic, etc) and details (e.g. core		too hard for the blade.
		diameter, triple or standard tube,	•	Sample recovery as estimated based on
		depth of diamond tails, face-		the size and consistency of each
		sampling bit or other type, whether		individual sample pile based on an
		core is oriented and if so, by what		expected size.
		method, etc).	•	Drilling was carried out by Australian
				Aircore Drilling drilling using an AAC
				Custom 150 mounted on a 6WD Truck.

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		•	RC drill rig was used where a face
			sampling hammer and collected through
			a cone splitter. The reject sample was
			collected at the cone using green bags
		•	Sample recovery as estimated based on
			the size and consistency of each
			individual sample bag based on an
			expected size.
		•	Drilling was carried out by Redrock
			drilling using a Hydco 40 mounted on a
			MAN 8x8 truck
		•	Seventy-six (76) AC holes for 2,786m
			were drilled
		•	Seven (7) RC holes for 901m were
			drilled.
Drill sample	• Method of recording and assessing	•	AC drilling was used as the most
recovery	core and chip sample recoveries		effective drill method in reducing
	and results assessed.		contamination in reconnaissance drilling.
	• Measures taken to maximise sample	•	4m drill soil/chip AC samples, weighing
	recovery and ensure representative		approximately 2kg were collected
	nature of the samples.		throughout the drill programme in
	• Whether a relationship exists		sequentially numbered bags
	between sample recovery and grade	•	AC samples were collected in a bucket
	and whether sample bias may have		from a cyclone attached to the rig. The
	occurred due to preferential		contents of the bucket were placed in
	loss/gain of fine/coarse material.		piles on the ground in sequential order.
		•	The cyclone was regularly checked and
			cleaned.
		•	1m composite drill soil/chip samples,
			weighing approximately 2kg were
			collected throughout the drill programme
			in sequentially numbered bags for the RC
			drilling.
		•	4m composite drill soil/chip samples,
			weighing approximately 2kg were
			collected throughout the drill programme
			in sequentially numbered bags for the RC
			drilling
		•	RC samples were collected in calico bags
			placed on a cone splitter that was
			attached to a cyclone attached to the rig.
			The reject contents of the cyclone were
			placed in green plastic bags on the
			ground in sequential order.
		•	The RC cyclone was regularly checked
			and cleaned.
Logging	• Whether core and chip samples	•	All AC and RC drilling was logged for
	have been geologically and		geology in the field by a qualified
	geotechnically logged to a level of		geologist. Lithological and mineralogical
	detail to support appropriate Mineral		data was recorded for all drill holes using
	Resource estimation, mining studies		a coding system developed specifically
	and metallurgical studies.		for the Project. Primary and secondary
	• Whether logging is qualitative or		lithologies are recorded in addition to
	quantitative in nature. Core (or		colour, grain size, alteration type and
	_costean, channel, etc) photography. _		intensity,estimates of mineralquantities.

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	• The total length and percentage of	•	Geological logging is qualitative in nature.
	the relevant intersections logged.
Sub-sample	• If non-core, whether riffled, tube	•	4m composite samples were collected
techniques	sampled, rotary split, etc and		using a spear for RC and a scoop for AC
and sample	whether sampled wet or dry.	•	1m samples RC were collected from the
preparation	• For all sample types, the nature,		cone splitter.
	quality and appropriateness of the	•	Where RC samples were wet, the 1m
	sample preparation technique.		calicos were collected.
	• Quality control procedures adopted	•	All samples were marked with a unique
	for all sub-sampling stages to		sequential sample numbered calico bag.
	maximise representivity of samples.	•	Sample bags were collected and placed
	• Measures taken to ensure that the		in large polyweave bags, then in bulka
	sampling is representative of the in		bags for delivery to the laboratory in
	situ material collected, including for		Perth.
	instance results for field	•	Standards were inserted at a rate of 1 in
	duplicate/second-half sampling.		every 20 while field duplicates were
	• Whether sample sizes are		inserted 1 in every 25.
	appropriate to the grain size of the	•	Samples collected generally weighed
	material being sampled.		between 2 to 2.5kg.
		•	All samples were pulverised to better
			than 95% passing 75μm
		•	Sample procedures and sample
			preparation are deemed to represent a
			good industrystandard.
Quality of	• The nature, quality and	•	The assaying and laboratory procedures
assay data	appropriateness of the assaying and		used are appropriate for the material
and	laboratory procedures used and		tested.
laboratory	whether the technique is considered	•	Sampling was guided by Empire’s QAQC
tests	partial or total.		procedures.
	• For geophysical tools, spectrometers,	•	Standards were inserted at a rate of 1 in
	handheld XRF instruments, etc, the		every 20 while field duplicates were
	parameters used in determining the		inserted 1 in every 25.
	analysis including instrument make	•	The laboratory also carried out its own
	and model, reading times,		internal QAQC checks including
	calibrations factors applied and their		duplicates taken from the submitted
	derivation, etc.		sample.
	• Nature of quality control procedures
	adopted (e.g. standards, blanks,
	duplicates, external laboratory
	checks) and whether acceptable
	levels of accuracy (i.e. lack of bias)
	andprecision have been established.
Verification	• The verification of significant	•	The drill program was completed under
of sampling	intersections by either independent		guidance of the listed CP who is an
and	or alternative company personnel.		employee of Empire.
assaying	• The use of twinned holes.	•	No twin holes were drilled as this is a
	• Documentation of primary data, data		reconnaissance drill program.
	entry procedures, data verification,	•	Geological logs and sampling data were
	data storage (physical and electronic)		recorded into excel spreadsheet
	protocols.		templates on a laptop. These files were
	• Discuss any adjustment to assay		compiled and loaded via Surpac into an
	data.		Access database.
		•	No adjustment to assay data was carried
			out unless noted.

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Location of	• Accuracy and quality of surveys used	•	Collars were surveyed using a hand-held
Data points	to locate drillholes (collar and down-		GPS.
	hole surveys), trenches, mine	•	RC collars will be picked up as soon as
	workings and other locations used in		possible with a DGPS
	Mineral Resource estimation.	•	GDA94_50
	• Specification of the grid system used.	•	Surface elevation will be adjusted using
	• Quality and adequacy of topographic		points surveyed by a DGPS and reported
	control.		when appropriate.
Data	• Data spacing for reporting of	•	Drill holes were generally spaced at 40m
spacing and	Exploration Results.		across lines spaced between 75m and
distribution	• Whether the data spacing and		50m.
	distribution is sufficient to establish	•	The hole spaced provided good
	the degree of geological and grade		coverage along the drill line.
	continuity appropriate for the Mineral	•	This drilling is reconnaissance in nature
	Resource and Ore Reserve		and will not be used for any Mineral
	estimation procedure(s) and		Resource estimations.
	classifications applied.
	• Whether sample compositing has
	been applied.
Orientation	• Whether the orientation of sampling	•	VMS mineralisation is considered to
of data in	achieves unbiased sampling of		trend in the direction of foliation /
relation to	possible structures and the extent to		bedding and as such may have multiple
geological	which this is known, considering the		orientations due to the large syncline
structure	deposit type.		feature. Holes were drilled perpendicular
	• If the relationship between the drilling		to observed or interpreted foliation.
	orientation and the orientation of key	•	Holes were drilled perpendicular to
	mineralised structures is considered		observed or interpreted geology strike
	to have introduced a sampling bias,		direction.
	this should be assessed and reported	•	The direction of sampling is not
	if material.		considered to bias results
Sample	• The measures taken to ensure	•	Samples were collected daily from the
Security	sample security.		site and brough back to the Youanmi
			minesite and placed in bulka bags.
		•	Samples were then transported to Perth
			byroad.
Audits or	• The results of any audits or reviews	•	The program was completed, and data
reviews	of sampling techniques and data.		processed by the CP who is an employee
			of Empire.

Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary	Commentary
Mineral	• Type, reference name/number,	•	The project consists of five granted
tenement and	location and ownership including		tenements (two mining and three
land tenure	agreements or material issues with		exploration), for a total area of 84.5 km2
status	third parties such as joint ventures,	•	Mining tenements; M57/265 and
	partnerships, overriding royalties,		M57/636 and exploration tenement;
	native title interests, historical sites,		E57/1037 are 100% owned by Empire
	wilderness or national park and	•	Exploration tenements are; E57/681 and
	environmental settings.		E57/1027 are subject to a Net Smelter
	• The security of the tenure held at		Royalty (NSR) of 1.25%
	the time of reporting along with any
	known impediments to obtaining a
	licence to operate in the area.

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Exploration	• Acknowledgment and appraisal of	•	Western Mining Corporation Ltd
done by other	exploration by other parties.		commenced base metal exploration in
parties			the area in 1969 and continued until
			1981. Soil sampling, ground magnetics,
			IP and EM were exploration methods
			used to target their vacuum, percussion
			and diamond drilling programs.
		•	Esso Australia Ltd explored the area
			between 1979 and 1984 using EM, RAB
			and diamond drilling in the search for
			Golden Grove - Scuddles type base
			metal deposits.
		•	Black Hill Minerals Ltd explored part of
			the area for base metals between 1986
			and 1991. This involved rock chip
			sampling and limited percussion drilling.
		•	Meekal Pty Ltd commenced an
			exploration program in 1985 by
			remapping parts of the syncline and rock
			chip sampling. In 1986 Meekal
			introduced Arboyne NL into the project
			who carried out gold exploration by
			drilling reverse circulation holes under
			old gold workings.
		•	Between 1989 and 1991 RGC Exploration
			Pty Ltd explored the area concentrating
			on the potential for gold mineralization.
			This exploration consisted of geological
			mapping, rock chip sampling and some
			RAB drilling.
		•	In 1992 Meekal Pty Ltd joint ventured the
			project to Giralia Resources NL, who
			brought in CRAE as a partner in1993.
			CRAE completed a ground EM survey
			and drilled three diamond holes in its
			search for base metals.
		•	Gindalbie Gold NL then explored the area
			for gold between 1995 and 2000. This
			work entailed a wide spaced soil
			sampling program but although several
			anomalous zones were identified no
			drilling was undertaken.
		•	Mineral Resources Australia / La Mancha
			explored the northern end of the project
			area between 2002 and 2010 completing;
			extensive soil sampling (Auger),
			reconnaissance (RAB / Aircore) drilling
			and geophysical surveys (VTEM and
			aeromagnetic surveys).
		•	Empire Resources Ltd commenced
			exploration in the area during 2006. To
			date a number of RAB, RC and diamond
			drilling programmes have been
			completed as well as aerial, surface and
			downhole electromagnetic (EM) surveys.

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Geology	• Deposit type, geological setting and	•	The Yuinmery project area covers the
	style of mineralisation.		eastern portion of the Archaean Youanmi
			greenstone belt with rock types
			consisting largely of altered mafic and
			ultramafic volcanic and intrusive rocks
			with chloritic felsic and intermediate
			volcanic units. The volcanic units contain
			a number of intercalated strongly
			sulphidic cherty sediments which are
			host to VMS copper-gold mineralization.
			In the project area these rocks lie on the
			eastern side of the regional Youanmi
			Fault and form the southern closure of a
			northerly plunging syncline.
			The volcanic rocks have been intruded
			by dolerites, gabbros, pyroxenites and
			other ultramafic rocks which probably
			form part of the layered Youanmi Gabbro
			Complex. Several zones of copper - gold
			mineralization have been identified within
			the project area by previous surface
			sampling and drilling. The volcanogenic
			massive sulphide style mineralization is
			associated with cherts, felsic volcanic
			breccias and tuffs.
		•	Gold mineralisation is interpreted to be
			associated with lower order shears
			subsidiary to either the Youanmi or
			Yuinmery Shear zones. Gold sits in sub-
			vertical shears, and forms narrow, steep
			plunging high grade shoots at minor
			flexures in the shears as quartz-sulphide
			lodes.
Drill hole	• A summary of all information	•	Hole locations are tabulated along with
Information	material to the understanding of the		accompanying collar location diagrams
	exploration results including a		within this report
	tabulation of the following
	information for all Material
	drillholes:
	• easting and northing of the
	drillhole collar
	• elevation or RL (elevation above
	sea level in metres) of the
	drillhole collar
	• dip and azimuth of the hole
	• down hole length and
	interception depth
	• hole length.
Data	• In reporting Exploration Results,	•	Data was compiled using excel
aggregation	weighting averaging techniques,		spreadsheets and loaded into an Access
methods	maximum and/or minimum grade		database.
	truncations (e.g. cutting of high	•	The data was audited using QGIS and
	grades) and cut-off grades are		Surpac data auditing features.
	usually Material and should be	•	A nominal cut-off grade of 2,000ppm Cu
	stated.		and 100ppb Au have been applied to the
			assayresults,unless noted.

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Relationship	• If the geometry of the	•	Broad anomalous copper envelopes have
between	mineralisation with respect to the		been interpreted from the drilling
mineralisation	drillhole angle is known, its nature		completed. Exact widths and geometry
widths and	should be reported.		are still to be determined, so all
intercept	• If it is not known and only the down		intercepts are reported as downhole
lengths	hole lengths are reported, there		intervals.
	should be a clear statement to this
	_effect. _
Diagrams	• Appropriate maps and sections	•	Diagrams are included within the report
	(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. _
Balanced	• Where comprehensive reporting of	•	All data from the program is provided in
reporting	all Exploration Results is not		the report
	practicable, representative
	reporting of both low and high
	grades and/or widths should be
	practiced to avoid misleading
	_reporting of Exploration Results. _
Other	• Other exploration data, if	•	NA.
substantive	meaningful and material, should be
exploration	reported including (but not limited
data	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	•	Reconnaissance drilling programs
	further work (e.g. tests for lateral		planned to test high priority target areas.
	extensions or depth extensions or	•	Soil and rock sampling programs
	large-scale step-out drilling).	•	Prospect scale mapping
		•	Reinterpretation of geophysical data,
			including EM and aeromagnetic /
			radiometric data
		•	RC and diamond drilling
		•	Geophysicalsurveys

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