EVOLUTION MINING LIMITED - Capital/Financing Update 2014

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ASX Announcement ASX: ERM ABN: 53 117 086 745

1 July 2014

Following landmark transaction with Evolution, drilling commences in Tennant Creek

First payment of $500k by Evolution following approval of the initial exploration program by the joint Exploration Management Committee
Diamond drilling has commenced at the historic high grade Eldorado gold deposit, aimed at testing down plunge extensions
Reverse Circulation drilling to start next week within the Eldorado and Chariot areas, testing a range of near mine and brown fields targets
Evolution to invest up to A$28.87million towards new discoveries across the 2200km[2] Tennant Creek project area
All conditions precedent to the transaction with Evolution have now been satisfied

An exciting first drill campaign for 2014 was commenced, following the transfer of the first $500k initial payment as agreed in the Transaction between Evolution Mining (ASX: EVN) and Emmerson Resources Limited (ASX: ERM, ASX: 12 June, 2014 ).

This initial campaign consists of approximately 2,500m of both Diamond and Reverse Circulation (RC) drilling aimed at establishing further high grade gold resources around the Eldorado and Chariot deposits (fig 1). Both of these historic mines are identified as high priority targets to build on the current JORC Resources – Chariot with JORC resources of 170,000t at a grade of 17.4g/t (ASX 28 November 2013), and Eldorado being an historic high grade gold producer (122,000 ounces at 17.9g/t) but with significant untested potential.

Of particular interest at Eldorado is the unearthing of historic, underground rock chip sampling immediately beneath the Turner Fault that suggests the continuation of the orebody at depth. This is supported by a number of historic, very high grade gold intercepts (see inset fig 2), and whilst outside the traditional approach of focussing on only the magnetic portion of the orebody, is consistent with our latest understanding of the association of high grade gold with hematite (i.e. the non magnetic portion). The only diamond drill hole in this campaign is now underway and will test the potential immediately beneath the Turner Fault (fig 2).

Emmerson Resources Limited 3 Kimberley Street, WestLeederville, Western Australia, 6007 PO Box 1573, WestPerth, Western Australia, 6872 Telephone: (+61 8) 9381 7838 Facsimile: (+61 8) 9381 5375 Email: [email protected] Website: www.emmersonresources.com.au

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RC drilling will test a similar association of high grade gold with hematite at a number of brown fields targets within the Eldorado corridor and at Chariot. Drilling at the Chariot East and West targets is aimed to test for extensions within the Chariot structure, which if successful will add substantial resources to the newly planned open pit (fig 3).

Emmerson’s Managing Director, Rob Bills, said, “It is very pleasing to see rapid progress both at the technical and commercial level following the signing of the binding heads of agreement.”

“The first meeting of the joint Exploration Management Committee demonstrated the technical co-operation and “fire power” of the combined companies, with agreement on this initial program, followed by the transfer of the $500k initial payment to Emmerson.”

“A joint targeting exercise is planned in Tennant Creek for July where it is anticipated the 2014 exploration program will be finalised –this will likely include a mix of both brownfields/near mine targets to rapidly build the resource base and also some new regional or greenfields targets – aimed at discovering a new generation of high grade goldcopper deposits utilising the successful ideas and technology that lead to the Goanna and Monitor discoveries by Emmerson in 2012.”

Media Contact Ian Howarth Collins Street Media Telephone: 0407 822 319 [email protected]

Investor Enquiries Mr Rob Bills Managing Director & Chief Executive Officer www.emmersonresources.com.au

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About Emmerson

The Tennant Creek Mineral Field (TCMF) is one of Australia’s highest grade gold and copper fields producing over 5.5 Mozs of gold and 470,000 tonnes of copper from a variety of deposits including Gecko, Orlando, Warrego, White Devil, Chariot and Golden Forty, all of which are within Emmerson Resources exploration portfolio. These deposits are considered to be highly valuable exploration targets. Utilising modern exploration techniques, Emmerson has discovered copper and gold mineralisation at Goanna and Monitor in late 2011, the first discoveries in the TCMF for over a decade.

To date, Emmerson has only covered 5.5% of the total tenement package (in area) with these innovative exploration techniques and is confident that, with further exploration, more such discoveries will be made. Emmerson holds 2,200km[2] of ground in the TCMF, owns the only gold mill in the region and holds a substantial geological database plus extensive infrastructure and equipment. Emmerson has consolidated 95% of the highly prospective TCMF where only 8% of the historical drilling has penetrated below 150m.

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

Competency Statement

The information in this report which relates to 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.

The information in this report which relates to Mineral Resources is based upon information compiled by Mr Ian Glacken, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Ian Glacken is an employee of Optiro Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 edition and the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Ian Glacken consents to the inclusion in this report of a summary based upon his information in the form and context in which it appears.

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Figure 1 – location diagram of Chariot and Eldorado, showing major trends and structures

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Figure 2 – Eldorado long section showing the mineralization, alteration, historic grade and the location of proposed drill holes (pink and yellow) to test the unmined extensions.

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Figure 3 – Chariot 3D view showing Chariot East and Gap targets, JORC resources (open pittable = brown; underground = blue), current Chariot Pit and 2013 optimized pit. Holes proposed during this program are shown in white solid circles with lack outline

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 (the JORC Code, 2012).

Section 1 Sampling Techniques and Data – ELDORADO EXPLORATION TARGETS

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	• The Eldorado exploration targets were historically sampled using both Reverse Circulation (RC) and diamond drilling (DD) techniques. • Holes have been angled to optimally test the (mineralised zones and geophysical models). Typically, most drill holes have been drilled towards the south and are angled at 60-70 deg. • Diamond core was used to obtain high quality samples that were logged for lithological, structural, geotechnical, density and other

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Criteria	JORC Code explanation	Commentary
	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 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	attributes. Sampling was carried out under various (previous) company procedures as per industry best practice for the time. • Diamond core is typically NQ and HQ size, sampled on geological intervals and cut into half core to provide sample weights of approximately 3.0kg. Samples were then crushed, dried and pulverised (Lab) to produce a 50g sub sample for analysis by Aqua Regia and Fire Assay analysis.
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 and Diamond drilling accounts for 90% of the known drilling within the Eldorado Group of exploration targets. • Minor (<10%), shallow vacuum and RAB drilling is noted in the historical information, however is not considered effective due to the depth of weathering within the areas. • Various RC and diamond drill techniques have been employed to test the Eldorado exploration targets with NQ and HQ the most common diamond core diameters used. • NQ core diameter is 47.6mm. • HQ core diameter is 63.5mm. • RC drilling utilizes a 4.5 inch, face sampling bit. • Angled drill hole depths range from 40m to 500m with the average depth of approximately 300m. • The core was oriented using down hole core orientation equipment available at the time. • Diamond core and RC recoveries are logged and recorded in the database. • Standard inner tube has been used. • Core from Eldorado exploration targets is stored in core racks in core shed storage in Tennant Creek.
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.	• Recoveries are considered satisfactory for both Diamond and RC drilling. • RQD measurements and core loss has been recorded on the original diamond logging sheets and retained for reference. • Overall recoveries are >80% for and there are no reported core loss or significant sample recovery problems identified. • Emmerson do not consider that there is evidence for sample bias that may have occurred due to preferential loss/gain of

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Criteria	JORC Code explanation	Commentary
		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 and logging techniques were employed by various explorers for logging RC and Diamond core samples within the Eldorado Project. • Drill core and RC samples are lithologically logged and hard copy logging sheets cross checked (verified) with drill core. • RC chips were not retained and could not be verified. • All historical lithological codes have been converted to standard Emmerson logging codes. • Standardised codes are used for lithology, oxidation, alteration and presence of sulphide minerals. • Structural logging of historical diamond drill core records orientation of veins, fractures and lithological contacts. • Information on structure type, dip, dip direction, alpha angle, beta angle, texture, shape, roughness and fill material, where available has been stored in the structure table of Emmerson’s database. • RQD logging is sparse however where available, records core lengths, recovery, hardness and weathering.
Sub-sampling techniques and sample preparation	• If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled.	• Core for Eldorado exploration targets was halved. Emmerson have approximately 80% of the diamond core drilled in the Eldorado exploration targets in core shed storage in Tennant Creek. • Areas of geological interest were identified by the company geologist and the halved core samples dispatched for assay. • The sample preparation of diamond core for appears to have followed industry best practice for the time, involving oven drying, coarse crushing followed by pulverisation of the entire sample (total prep). • RC samples were collected on the rig and then riffle split to obtain an approximate 2 kg sample. • The sample preparation for RC samples is identical, without the coarse crush stage.
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	• Drill hole intersections reported are of historical nature and have not been geochemically validated by modern analytical methods. • Assay results for the Eldorado exploration targets appear consistent with geological parameters however caution must be exercised when interpreting results.

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Criteria	JORC Code explanation	Commentary
	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.	• Insertion of assay blanks and certified reference material (standards) is recorded for drilling completed at AN5, by Normandy however, could not be located for the earlier drilling. • It is assumed that many of the earlier assays have been completed at the Noble Nob mine laboratory and contamination is possible however considered unlikely. • The Nobles Nob mine laboratory had the ability to assay using both Aqua Regia and Fire Assay techniques.
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.	• Original sample data sheets and files have been retained and were used to validate the contents of Emmerson’s database against the original assay, down hole survey results and the geological logging. • Minor adjustments were made to the geology codes to conform to Emmerson’s coding system. • No twin drill holes to Emmerson’s knowledge have been completed. • Selective sampling and re-assay will be undertaken to confirm key assay results during the next round of exploration of these exploration targets.
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.	• Historical drill hole collar positions have been surveyed using a differential GPS and by a suitably qualified company employee. • Collar survey accuracy is +/- 20 mm for easting, northing and elevation coordinates. • Co-ordinate system GDA_94, Zone 53. • Topography measurements are from a detailed Digital Terrane Model created by a suitable qualified staff member. • Downhole survey measurements have been located and consist of single shot and etched glass methods.
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.	• Identified mineralisation within the Eldorado Deeps exploration target has to date been defined by less than 15 DD holes and spacing has is not considered appropriate for Mineral Resource Estimation or Classification. Emmerson plan to increase the drill density to better define geological and grade continuity with future drilling. • An1, An2, An3 and An5 have not been systematically drill tested and do not appear to have been drilled on defined drill lines or sections. • RC sampling is on 1 m intervals that may have originally consisted of 3m composites. • Core sampling is typically defined by geological

Emmerson Resources Limited 3 Kimberley Street, WestLeederville, Western Australia, 6007 PO Box 1573, WestPerth, Western Australia, 6872 Telephone: (+61 8) 9381 7838 Facsimile: (+61 8) 9381 5375

Email: [email protected] Website: www.emmersonresources.com.au

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Criteria	JORC Code explanation	Commentary
		characteristics and lithological boundaries.
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.	• Review of previous exploration drilling indicates it is at a high angle to the mineralized bodies. • Review of previous exploration drilling indicates it is perpendicular to mineralized bodies.
Sample security	• The measures taken to ensure sample security.	• Not relevant for the data reported.
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	• An internal review of the historical sampling techniques, QAQC protocols and data collection was conducted by Emmerson from January to March 2013.

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Section 2 Reporting of Exploration Results - ELDORADO EXPLORATION TARGETS

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 Eldorado group of targets are located within granted Mineral Leases (MLC’s) and one granted Exploration Licence (EL). • ML C16, ML C498 – C499, ML 582 – C583 • ML C16 is underlain by granted EL 10406. • All MLC’s are 100% held by Emmerson Resources Limited. • All MLC’s lie within Aboriginal Freehold Land held by the Warramunga Aboriginal Land Trust. • Land Access to the targets is secured through an Agreement with the CLC representing Traditional Owners for the area. • Several Heritage surveys have been completed over the area with minor ironstone outcrops identified as exclusion zone - SSCC2008-35. • A recent notification to the CLC advising of this upcoming drill program resulted in permission to commence the drilling. • The Cats Whiskers mine (AN4) is a registered exclusion zone. • The Eldorado mine is a registered exclusion zone however, does not affect the planned exploration drilling outlined in this report. • The tenements are in good standing and no known impediments exist.
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	• Several exploration and mining companies have explored the Eldorado area over the past 50 years. • Exploration campaigns were conducted by Australian Development Limited (ADL), Peko (1966-1980), Poseidon Gold, Normandy (1998- 2000) and Giants Reef Mining (2000-2004). • All of the above Exploration companies are considered to have been operating within acceptable best practices for the era. • The Eldorado mine produced 122,000oz gold and was campaign mined by Peko (1989-1990) and by Normandy (1991-1993). • The Cat’s Whiskers mine was mined by Giants Reef (2005) however grade and tonnage is unknown.
Geology	• Deposit type, geological setting and style of mineralisation.	• Mineralisation within the target area consists of hematite-quartz-magnetite ironstone within talc- chlorite-magnetite-bearing sediments of the Warramunga Formation. • Target style for Emmerson is non magnetic ironstone related iron oxide copper gold. • All anomalies (targets) lie within a defined structural corridor with numerous gold – copper occurrences associated with ironstone. • Very limited drilling has targeted the non

Emmerson Resources Limited 3 Kimberley Street, WestLeederville, Western Australia, 6007 PO Box 1573, WestPerth, Western Australia, 6872 Telephone: (+61 8) 9381 7838 Facsimile: (+61 8) 9381 5375

Email: [email protected] Website: www.emmersonresources.com.au

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Criteria	JORC Code explanation	Commentary
		magnetic ironstones within this corridor.
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 selection of drill hole intercepts are included in this report (Figure 2) and must be viewed as indicative only. It is not practicable nor deemed material to report all drill hole positions. • Further compilation and validation of these drilling data is required and drill intersections reported must be viewed with caution during this stage of exploration. • This drilling program is designed to validate historical gold intersections. • Intersections reported are qualified in the text as the “best intersection” and are not intended to bias or mislead. They are reported to provide the reader with an indication of mineralisation tenor for the various exploration targets.
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 lengths and are not true widths. • Mineralized intersections are not reported as weighted averages. • Drill results reported are historical exploration results only and although every attempt to verify the accuracy of the results has been made, Emmerson are cautious and fully aware that further confirmatory drilling will be required. • No cut-off grades have been used has been used for reporting of exploration drill results. • A 5 g/t Au low cut off applies to Eldorado Deeps mineralised pods outline and no top-cut has been applied. • No confirmation down hole survey data has been collected, however will be collected during this round of drilling.
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’).	• All drilling within the Eldorado Deeps exploration target is from surface and perpendicular to the mineralised structure. Drill holes are inclined between -65 and -75deg. to the south to allow intersection angles with the mineralised zones approximate to the true width. • Mineralized intersections for the Eldorado Deeps exploration target are reported as down hole lengths and are not true widths. • An1 – An5 have been historically drill tested using both RC and DD techniques. Drill orientation was based on magnetic modelling and was designed to intersect the modelled magnetic bodies perpendicular to strike and at a high angle to the dip.
Diagrams	• Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery	• Refer to Figures in body of text.

Emmerson Resources Limited 3 Kimberley Street, WestLeederville, Western Australia, 6007 PO Box 1573, WestPerth, Western Australia, 6872 Telephone: (+61 8) 9381 7838 Facsimile: (+61 8) 9381 5375

Email: [email protected] Website: www.emmersonresources.com.au

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Criteria	JORC Code explanation	Commentary
	being reported. These should include, but not be limited to a plan view of drillhole collar locations and appropriate sectional _views. _
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.	• A selection of drill hole intercepts are included in this report and must be viewed as indicative only. It is not practicable nor deemed material to report all drill hole positions and at this stage due to the maturity and number of the exploration programs that have historically been undertaken.
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.	• Not relevant for the data reported.
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.	• Further work on the reported exploration targets will involve complete validation and field verification for all Eldorado Targets (An1-An5). • Field mapping and sampling. • Collection of physical rock property data to assist with future geophysical modelling. • RC campaign to test non magnetic targets proximal to the known Eldorado An1 – An5 magnetic anomalies. • One diamond and two RC holes to confirm tenor of historical intersections. • Diamond hole will also provide structural and physical rock property data. • Detailed reprocessing of existing gravity data to assist with further drill targeting. • Electrical (induced polarization) geophysical survey is currently under design. • Mineral Resource Estimation to validate existing geological and geochemical data for the Eldorado Deeps exploration target. • Mineral Resource Estimation to include future drilling results returned from the Eldorado Deeps exploration target.

Section 1 Sampling Techniques and Data - CHARIOT EAST-WEST-SOUTH TARGETS

Criteria	JORC Code explanation	Commentary
Sampling techniques	• Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement	• RC chips were riffle split on site to obtain 3m composite samples from which 2.5 – 3.0kg was pulverised (at the laboratory) to produce a 50g

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Criteria	JORC Code explanation	Commentary
	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 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	charge for analysis by Aqua Regia digestion (Au, Ag, Bi, Cu and Fe). • Individual 1m samples are retained on the drill site and may be individually assayed once 3m composite results are returned. • Individual 1m samples were pulverised (at the laboratory) to produce a 25g charge for analysis of gold by Fire Assay. • Diamond core was used to obtain high quality samples that were logged for lithological, structural, geotechnical, density and other attributes. • Diamond core is either HQ or NQ2 size, sampled on geological intervals (0.2 m to 1.4 m), cut into half core to provide sample weights of approximately 3.0kg. Samples were crushed, dried and pulverised (Lab) to produce a 25g sub sample for analysis by aqua regia and fire assay techniques.
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 and Diamond drilling accounts for 100% of the current drilling at Chariot East, West and South. • The Chariot West target has had 3 previously drilled RC holes and one DD hole drilled by Normandy Tennant Creek (1999). • The Chariot South target has had 2 previously drilled RC holes and one RAB hole by Giants Reef Mining (2003). • The Chariot East target has had 4 previous DD and 11 RC holes drilled by Normandy Tennant Creek (1998-1999) and Giants Reef Mining (2001-2004). • Drill hole spacing was completed on a nominal 50m x 50m grid. • All holes were angled ranging from 55 – 70 degrees to the south. • Holes were angled to optimally test the mineralised shear zones which strike east – west and dip steeply to the North. • RC drilling utilizes a 4.5 inch, face sampling bit. • NQ2 core diameter is 50.6mm. • HQ core diameter is 63.5mm. • Drill hole depths (downhole) range from 65m to 400m for Chariot East, West and South. • DD holes were typically deeper than the RC drill holes • The core was oriented however the type and accuracy of the orientation tools could not be

Emmerson Resources Limited 3 Kimberley Street, WestLeederville, Western Australia, 6007 PO Box 1573, WestPerth, Western Australia, 6872 Telephone: (+61 8) 9381 7838 Facsimile: (+61 8) 9381 5375

Email: [email protected] Website: www.emmersonresources.com.au

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Criteria	JORC Code explanation	Commentary
		established. • Diamond core and RC recoveries are logged and recorded in Emmerson’s database. • Standard inner tube has been used. • Overall recoveries are >90% for all Chariot area drilling and there were no obvious core loss or significant sample recovery problems in the reviewed data. • Diamond core from Chariot East and West was reconstructed into continuous runs on a 6m long angle-iron cradle for orientation marking. • Depths were routinely checked against the depth given on the core blocks for accuracy by geologists and field assistants. • Rod counts are routinely carried out by the drillers.
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. • Recoveries were considered good to excellent for both Diamond and RC drilling. • RQD logging of diamond core was completed for selected DD holes in Chariot East • RC samples are collected via a fixed riffle splitter that was mounted to the drill rig. • 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 logging/operating procedures (SOP’s) were employed by Normandy Tennant Creek and Giants Reef Mining for logging RC chip and Diamond core samples. • Logging codes and operating procedures were reviewed by Emmerson geologists and were considered satisfactory. • All lithological, oxidation, alteration and presence of sulphide information were converted to Emmerson standard lithological naming convention. • Records show that all drill core and RC samples were lithologically logged. • Previous Information on structure type, dip, dip direction, alpha angle, beta angle, texture, shape, roughness and fill material has been reviewed and considered satisfactory to good. • Magnetic susceptibility data is present for approximately 70% all RC samples. • Magnetic susceptibility data has been collected for selected diamond core. • Approximately 50% of drill core has been photographed. • Representative RC chips are stored in trays in 1m intervals, however due to age are considered

Emmerson Resources Limited 3 Kimberley Street, WestLeederville, Western Australia, 6007 PO Box 1573, WestPerth, Western Australia, 6872 Telephone: (+61 8) 9381 7838 Facsimile: (+61 8) 9381 5375

Email: [email protected] Website: www.emmersonresources.com.au

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Criteria	JORC Code explanation	Commentary
		to be in poor condition.
Sub-sampling techniques and sample preparation	• If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled.	• Standard Normandy Tennant Creek and Giants Reef Mining operating procedures were used at Chariot East, West and South targets for sampling RC and diamond core samples. Both company operating procedures are considered satisfactory by Emmerson geologists. • Core from Chariot East and West exploration targets was cut in half (NQ2 & HQ) using a standard brick saw. • All half core samples were collected from the same side of the core. • Half core samples were submitted for analysis, unless a field duplicate was required, in which case quarter core samples were submitted. • The sample preparation of diamond core for East and West exploration targets follows industry best practice in sample preparation involving oven drying, coarse crushing of the half core 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. The sample preparation for RC samples is identical, without the coarse crush stage. • Pulverised material not required by the laboratory (pulps) including duplicate samples are reported as returned to both Normandy Tennant Creek and Giants Reef Mining however could not be located by Emmerson geologists. • 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 3 kg sample. • If samples were wet, they were left to dry before being riffle split. • To the best of our knowledge all RC samples in mineralised zones were dry prior to submission to 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	• Field QC procedures undertaken by Normandy Tennant Creek and Giants Reef Mining has been documented and involve the use of certified reference material (CRM’s) as assay standards, and include blanks, duplicates. • QAQC protocols varied between the two companies but essentially consisted of the insertion of blanks at a rate of approximately one in every 40 samples, insertion of standards 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. • Insertion of assay blanks was increased when

Emmerson Resources Limited 3 Kimberley Street, WestLeederville, Western Australia, 6007 PO Box 1573, WestPerth, Western Australia, 6872 Telephone: (+61 8) 9381 7838 Facsimile: (+61 8) 9381 5375

Email: [email protected] Website: www.emmersonresources.com.au

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Criteria	JORC Code explanation	Commentary
	acceptable levels of accuracy (ie lack of bias) and precision have been established.	visual mineralisation was encountered and typically consisted of insertion above and below the mineralised zone. • 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. • Internal Laboratory checks were also included as 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. • Normandy Tennant Creek sent their samples to Australian Laboratory Services P/L (ALS). • Giants Reef Mining sent their samples to North Australian Laboratories Pty Ltd (NAL) based in Pine Creek. • The sample sizes are considered to be appropriate to correctly represent the style of mineralisation at Chariot East, West and South_._ (Iron oxide copper gold).
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.	• Emmerson geologists have reviewed both the digital and hard copy drilling information for Chariot East, West and South and consider it to be of good quality and reliable. • Original data sheets and files have been retained and were used to validate drilling results and the contents of the digital database against the original logging. • No twin drill holes have been completed. • Previous company lithological codes were converted to Emmerson’s standard lithological codes prior to import in the database.
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.	• Drill hole collars were surveyed (set out and pick up) using a differential GPS and by a suitably qualified company employee. • Collar survey accuracy is +/- 50 mm for easting, northing and elevation coordinates. • Co-ordinate system GDA_94, Zone 53. • Topography control is considered as excellent. • Topographic measurements are collected from the final survey drill hole pick up. • Downhole survey measurements were collected during drilling at a minimum of every 30m using a single shot camera for RC drilling of the targets and every 6m for diamond drill holes at Chariot East and West. • 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 was used.
Data spacing and	• _Data spacing for reporting of Exploration _	• Drilling at ChariotWest and Southtargetsis

Emmerson Resources Limited 3 Kimberley Street, WestLeederville, Western Australia, 6007 PO Box 1573, WestPerth, Western Australia, 6872 Telephone: (+61 8) 9381 7838 Facsimile: (+61 8) 9381 5375

Email: [email protected] Website: www.emmersonresources.com.au

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Criteria	JORC Code explanation	Commentary
distribution	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.	considered early and no formalised drill spacing has been established for these two areas. Further drilling is to be designed on a 20m x 20m grid once economic mineralisation and continuity is established. • Drilling completed so far at Chariot East has been completed on 50m spaced north – south lines at an average of 40m centres. Drill spacing is not considered appropriate for the Mineral Resource and Ore Reserve estimation procedure(s). • RC sampling is on 1 m intervals that may have originally consisted of 3m composites. • Core sampling is generally defined by geological characteristics and controlled by alteration and lithologicalboundaries.
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.	• All drilling at Chariot East and West has been to the South at a high angle to intersect the steeply North dipping and East – West striking shear zone. • The RAB hole at Chariot South was drilled east to West. • One RC hole at Chariot South was drilled North to South and the other RC hole drilled South to North.
Sample security	• The measures taken to ensure sample security.	• Samples were selected, bagged and labelled by site geologists. • They are placed in sealed 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. • 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.	• Not relevant for the data reported.

Section 2 Reporting of Exploration Results – CHARIOT EAST-WEST-SOUTH TARGETS

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,	• Chariot East target_is_located within MLC176- MLC177 • Chariot West target is located within ML23216 • Chariot Southtargetislocatedwithin ML23216

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Criteria	JORC Code explanation	Commentary
	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.	• All MLC’s lie within Aboriginal Freehold Land held by the Warramunga Aboriginal Land Trust. • Land Access to the targets is secured through an Agreement with the CLC representing Traditional Owners for the area. • Several Heritage surveys have been completed over the area with minor ironstone outcrops identified as exclusion zone - SSCC2008- 064. • Land Access (including mining) is governed by Mining Agreement ML23216 signed between Traditional Owners and Emmerson Resources. • Small Exclusion Zones exist (isolated mature gum trees identified as sacred sites) within the exploration area however they do not impact on any planned drilling. • A recent notification to the CLC advising of this upcoming drill program resulted in permission to commence the drilling. • The tenements are 100% held by Emmerson Resources Limited. • All tenements are in good standing and no known impediments exist.
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	• Previous exploration within MLC176-177 & ML23216 was conducted by Normandy Tennant Creek (1998-2000) and Giants Reef Mining (2000-2005). • Prior to these above companies several other exploration companies held the ground however reliability of data is questionable and is not included in this report. • Mining of the Chariot Gold ore body was during 2003-2005 within ML23216. • All other work on this project has been conducted by Emmerson Resources.
Geology	• Deposit type, geological setting and style of mineralisation.	• Mineralisation is hosted by a buried magnetite – hematite ironstone within an east-west striking chloritic shear zone. 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.	• Significant historical intersections within this report have been compiled by Emmerson geologist. • Original data sheets have been inspected, validated and included into Emmerson’s relational database. • A comprehensive drill hole list has not been included in this report.
Data aggregation	• In reporting Exploration Results, weighting averaging techniques, maximum and/or	• Mineralized intersections are reported as down hole drill intervals and not weighted averages.

Emmerson Resources Limited 3 Kimberley Street, WestLeederville, Western Australia, 6007 PO Box 1573, WestPerth, Western Australia, 6872 Telephone: (+61 8) 9381 7838 Facsimile: (+61 8) 9381 5375

Email: [email protected] Website: www.emmersonresources.com.au

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Criteria	JORC Code explanation	Commentary
methods	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.	• 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. • No cut-off grade has been applied to results reported in this report.
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’).	• The Chariot East prospect is composed of two ironstone bodies moderately to steeply north dipping. Gold mineralisation occurs typically at the margins of both ironstone lenses. Drilling to date has been inclined between -55 and -75 to the south to allow intersection angles with the mineralised zones approximate to the true width. • The Chariot West prospect is also composed of two parallel ironstone bodies steeply north dipping. Drilling to date has been inclined between -55 and -65 to the south to allow intersection angles with the mineralised zones approximate to the true width. • There is insufficient previous drilling to confidently report the geometry of the Chariot South target however the target is modelled as a north dipping ironstone and will be drilled from north to south in the upcoming drilling program.
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 Figure 1 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.	• No intersections are reported.
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;	• Previous Information on structure type, dip, dip direction, alpha angle, beta angle, texture, shape, roughness and fill material has been reviewed and considered satisfactory to good. • Magnetic susceptibility data is present for approximately 70% all RC samples. • Magnetic susceptibility data has been collected for selected diamond core.

Emmerson Resources Limited 3 Kimberley Street, WestLeederville, Western Australia, 6007 PO Box 1573, WestPerth, Western Australia, 6872 Telephone: (+61 8) 9381 7838 Facsimile: (+61 8) 9381 5375

Email: [email protected] Website: www.emmersonresources.com.au

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Criteria	JORC Code explanation	Commentary
	potential deleterious or contaminating substances.	• Approximately 50% of drill core has been photographed. • Representative RC chips are stored in trays in 1m intervals, however due to age are considered to be in poor condition. • Thin section samples have been collected to assist in the refinement of the geological model.
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.	• Extensional and infill drilling is to be planned based on the next round of exploration drilling. • If drilling is successful in identifying additional economic gold mineralisation it is envisaged that a revised Mineral Resource Estimation will be completed to include the recent results. • If a Mineral Resource Estimation is initiated based on successful future results it would commence within 2014. • Refer to figures in the report for additional information.

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EVOLUTION MINING LIMITED — Capital/Financing Update 2014

64885_rns_2014-06-30_95fde1e3-d2a6-4716-8ad3-daa298fbccd9.pdf

ASX Announcement ASX: ERM ABN: 53 117 086 745

Following landmark transaction with Evolution, drilling commences in Tennant Creek

About Emmerson

Competency Statement

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EVOLUTION MINING LIMITED Capital/Financing Update 2014