FOCUS MINERALS LTD — Capital/Financing Update 2017

Apr 6, 2017

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ASX Announcement 7 April 2017

Brilliant Mineral Resource increased 26%; PFS and Exploration Ongoing

Focus Minerals Ltd. (ASX:FML, “Focus” or the “Company”) is pleased to announce that it has completed a Mineral Resource update for the Brilliant deposit, resulting in a 26% increase in the combined Mineral Resource to 5.89Mt @ 2.5g/t Au for 475,500 ounces of contained gold . FML is incorporating this into the Preliminary Feasibility Study announced earlier this year (ASX 25 January 2017).

The Mineral Resource comprises:

• Indicated Resource 4.68Mt grading 2.3g/t gold for 348,500 contained ounces

• Inferred Resource 1.21Mt grading 3.3g/t gold for 127,000 contained ounces  Total Mineral Resource 5.89Mt grading 2.5g/t gold for 475,500 contained ounces

The Mineral Resource is reported on a dry tonnage basis above a 1g/t cut-off for open pit resources above 260mRL and 3g/t cut-off for the underground resource. See the attached JORC Table 1 for additional details.

The JORC 2012 Brilliant combined Mineral Resource tabulation for Indicated and Inferred material above a 1g/t cut-off for open pit resources above 260mRL and 3g/t cut-off for the underground resource is shown in Table 1 below:

Classification	Tonnes (kt)	Au g/t	Gold Ounces
Indicated	4,678	2.30	348,500
Inferred	1,209	3.30	127,000
Total	5,887	2.50	475,500

Table 1: Brilliant Combined Mineral Resource

The combined Mineral Resource comprises an open pit Mineral Resource above a 1g/t cut-off and above the 260mRL (presented in Table 2) and an underground Mineral Resource above 3g/t cut-off and below the 260mRL (presented in Table 3:

Classification	Tonnes (kt)	Au g/t	Gold Ounces
Indicated	4,523	2.30	330,000
Inferred	576	2.40	44,500
Total	5,099	2.30	374,500

Table 2: Brilliant Open Pit Mineral Resource

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Classification	Tonnes (kt)	Au g/t	Gold Ounces
Indicated	155	3.70	18,500
Inferred	633	4.10	82,500
Total	788	4.00	101,000

Table 3: Brilliant Underground Mineral Resource

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Figure 1: Section View of Brilliant Deposit with Open Pit

The Brilliant Project is a significant gold deposit which forms part of Focus Minerals tenement portfolio in the highly prospective Coolgardie region of Western Australia. The deposit was a major open pit gold producer, mined in stages from 1970’s to early 2000’s with total production consisting of approximately 88,000oz at an average gold grade of 2.45g/t.

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Figure 2: Plan View of Brilliant Deposit

Various drill campaigns have been conducted at Brilllant over the years, using multiple drilling methods. The updated Mineral Resource estimate was calculated on the basis of 494 drill holes comprising 450 RC holes, 2 Diamond holes and 42 diamond holes with an RC pre collar (RCDD), totalling 64,806.68m. Of these holes., FML drilled 102 RC holes, 2 Diamond holes and 24 RCDD between October 2008 and March 2017; 336 RC holes and 18 RCDD holes were drilled by Goldfan Ltd (Goldfan) from February 1994 to July 1997; and 12 RC holes were drilled by MPI Gold Pty Ltd (MPI, under an agreement with Herald Resources) from April to June 2002.

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Brilliant Exploration Update

Since the start of 2017, Focus has been conducting an aggressive near-mine exploration programme around Brilliant with 26 RC holes (5,950m) and 7 RCDD holes (2,656.8m) completed to the end of March 2017. The purpose of this drilling was to further infill and expand the previous Mineral Resource as well as explore for additional lode mineralisation in the vicinity of the open pit. Encouraging results have been returned from all drill areas and RC and diamond drilling is ongoing to further define mineralisation in these areas with the intent of adding to the mineral resource.

Full significant results from the recent Brilliant programme are included in Table A.

Tindals Geophysical Surveys

In conjunction with the drilling at Brilliant, Focus has completed a 2,049 station ground gravity survey and a 70 station passive seismic survey in the Tindals District. The gravity survey was completed on a 50 x 100m grid and expanded the previous detailed gravity survey coverage in the Tindals District. The passive seismic survey was conducted to the northeast of the Brilliant open pit with the intent of mapping the cover thickness in an area that has previously proved difficult to drill due to thick cover units to assist future drilling in this area. Preliminary results of both surveys have been received and additional processing is ongoing. It is hoped that the results of both surveys will assist with target generation in the Greater Tindals District.

Coolgardie Forward Programme

Drilling at Coolgardie is ongoing. Additional diamond and RC drilling at Brilliant is currently in progress to follow up on encouraging results from the programme outlined above. RC and diamond drilling is also planned at Bonnie Vale, Lindsays, Tindals and Brilliant. Focus is also continuing the plan for the previously-announced ground gravity survey at Lake Cowan, which has been delayed due to inclement weather at the start of the year.

The Preliminary Feasibility Study for the Coolgardie Project is progressing well, and is due for completion in early June.

JORC 2012 Mineral Resource Summary for Brilliant Deposit

Background

Brilliant is located 1km SE of the township of Coolgardie in the Eastern Goldfields of Western Australia with access from the Lady Loch Road. It is situated on Mining License’s M15/0646 and M15/1788 which are wholly owned by Focus Minerals Ltd (FML).

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Figure 3: Brilliant project location

The first phase of mining is believed to have taken place in the early twentieth century and would have consisted of prospecting shafts and limited underground mining. Mines Department records document treatment of 60 tons of ore producing 6.97oz of gold up to 1935. No other production is recorded. Open pit mining of the prospect commenced in the 1970’s with a number of parties processing ore through the Coolgardie State Battery. In 1980 a treatment plant was constructed at Brilliant by Tryaction Pty Ltd, who produced from an open pit.

In the mid 1980’s Electrum bought into the project, expanded the treatment plant and continued open pit production. Production in this period totalled 87,956 tonnes at 3.2g/t until 1988 when the open cut mining operations at Brilliant ceased. The project was subsequently purchased by Goldfan Limited (a wholly owned subsidiary of Herald Resources Ltd) in 1991 and incorporated into the Tindals Project. They initiated drilling programs which increased the known extent of mineralisation and completed further open cut mining to its present limits in the early 2000’s. In 2005 Focus Minerals negotiated a deal to buy the Coolgardie project from Herald/MPI. Since Focus acquired the tenements it has drilled 307 RC holes, 26 RCDD holes, 2 Diamond holes and 16 Slim-line RC (SLRC) holes for a total of 33,981.98m.

Geology and Geological Interpretation

Regionally, the deposit lies on the western margin of the Menzies-Norseman Greenstone Belt, Eastern Goldfields Province within the Coolgardie Domain of the Kalgoorlie Terrane, a sub-division of the Menzies-Norseman Greenstone Belt by Swager et al (1990). The Coolgardie Domain comprises a belt of complexly deformed mafics and ultramafics with minor black shale and volcaniclastics, overlain by felsic volcaniclastics and metasediments, intruded by a suite of felsic to mafic sills and dykes and tholeiitic dolerites and gabbros.

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Hosts rocks at Brilliant are a sequence of Archaean Basalts and Ultramafics, which have been intruded by a suite of porphyry dykes (also described as granodiorites). The porphyries host the bulk of the mineralisation, occurring in two orientations, steeply dipping (70 - 80°) with an average width of 3 to 5m, or flatter dipping (20 - 40°) with widths of up to 2m. Mineralisation consists of a stock work of quartz / sulphide micro-veining and albitic alteration of the porphyry.

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Figure 4: Plan View of Brilliant Geology (Based on Austminex 1:20,000 Interpretation 2005)

The entire Brilliant deposit strikes NNW with a total strike length of ~2km, Brilliant can be separated into Brilliant and Brilliant North with an approximate 200m gap of low-grade mineralization between

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the two zones. The main lodes of mineralisation have been modelled to approximately 460m below surface with an average width of 3 - 4m for most lodes. The current Brilliant open-cut pit has been mined to a depth of approximately 75m below surface.

Mineralisation interpretations were undertaken in Geovia Surpac™ software, with envelopes digitised on a section by section basis using an approximate 0.5g/t Au cut-off grade and geological contacts. Infrequently sub 0.5g/t samples were included for continuity. Multiple minor lodes with less continuity in the footwall and hanging-wall were also interpreted.

Sampling Techniques

Drilling has been sampled as 4m composites or 1m intervals by various companies over the years. Goldfan drilling from 1994 to 1997 logged drill holes over 1m intervals and sampled as either 4m composites or 1m samples through mineralized ground or interesting geology. Composite samples that returned grades greater than 0.2g/t Au were re-submitted as single meter samples. Samples were run through a cyclone. MPI collected drill cuttings at one meter intervals which were passed through a trailer mounted cyclone and stand-alone riffle splitter to provide a 4-6kg split sample and a bulk residue for logging. All samples were dry. Initially samples were spear-sampled to form up to 5m composites, with any results above 0.5g/t Au re-analysed using the 1m split samples. FML collected 1m samples in green bags and in calico bags by either riffle or cone splitter attached to the drilling rig. Composites were taken by spear sampling the green bags to make up 4m composites. Composite samples that returned grades greater than 0.2g/t Au were then submitted as single meter samples using the calico bags collected off the rig splitter. Since 2015 all RC holes have been sampled entirely as 1m composites.

Diamond core holes were selectively sampled either to geological boundaries or to meter intervals. Diamond core samples are half core.

Drilling Techniques

Only holes drilled by either Reverse Circulation (RC), or diamond holes with an RC pre-collar (RCDD) were used in the estimation. Various drilling companies and rigs have been used over the years. FML diamond tails were drilled HQ/HQ3 diamond through the more broken ground generally switching to NQ2 at a variable depth of approximately 300m below surface. Goldfan drilled NQ2 diamond tails. Drill spacing along the Brilliant trend is approximately 20mx20m through the main lode horizon, increasing to 20mx40m and 40mx40m to the north of 6573000mN. The average depth of the Goldfan RC drilling is 100m and 190m for the RCDD holes. Focus drill holes average 67m for RC drilling and 375m for the RCDD holes. MPI RC holes were drilled to an average of 120m.

Sample Analysis Method

Goldfan submitted 2kg samples for analysis initially to Australian Assay Laboratories Group Kalgoorlie and later to Minlab Kalgoorlie. Assay technique was a fire assay on a 50g charge to a lower detection limit of 0.01ppm gold. MPI submitted 4-6kg samples to Analabs in Perth for analysis by 50g fire assay for 0.01g/t detection limit. FML used a variety of laboratories over the years and different analytical techniques. Composite samples were originally submitted for 40g aqua regia analysis, while 1m samples have predominantly been analysed using 40g fire assay.

Estimation Methodology

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Samples were composited to 1m, the dominant sample interval within each lode. All lode boundaries were considered hard-boundaries and no samples were shared between lodes. Top-capping of outlier samples was carried out after a review of the histograms, probability plots and mean/variance plot for each lode. Samples considered outliers from the main population were capped to a set value. Snowden Supervisor software was used for Variography on larger lodes with over 100 samples. Smaller lodes shared variograms based on similar orientations and proximity. Grade estimation was by ordinary kriging using Geovia Surpac software. An elliptical search was used based on the ranges of the Variograms. Three search passes were run, with decreasing minimum sample numbers and increasing range between each search pass. Not all blocks estimated and these have been left as future exploration targets. Three of the largest lodes were estimated in two parts. Above the 230m RL where most of the sampling exists an ordinary kriged estimate was run with no restrictions on samples or grades within the three lodes. Beneath the 230mRL a “grade dependent search” option was used to limit the search radius high grade values could be used in the estimation process. At Brilliant grades greater than 10g/t Au could only be used to inform blocks up to a 30m search ellipse distance away. Further detail is provided in Table 1, Section 3. The estimated blocks were validated in a number of ways including cross-sections through the block model with drillhole data displayed, a review of the attributes generated during the estimation process. Raw and estimated grades for each lode compared and swath plots generated by Northing and RL to assess the overall trend of the drillhole grades vs the estimated block grades. The block model has been depleted for open-cut mining activity.

Criteria Used for Classification

Mineral Resource Classification was based on the following criteria:

1. Confidence in the drillhole data: ridgid sampling, logging, surveying, analytical techniques and database compliation with appropriate QAQC checks.

2. Geological confidence in the continutity and geometry of the deposit.

3. Various output parameters from the ordinary kriging process, such as number and distance of samples, kriging and block variance, slope of regression and number of negative kriging weights determined the classification of Indicated and Inferred Resources.

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Table A: Signigicant Intersections from Q1 2017 Brilliant Exploration Drilling (1.0g/t Au cut-off with internal dilution of 0.9g/t Au included)

Hole ID		From (m)	To (m)	Width (m)	Grade (Au g/t)
TND17001		35	37	2	1.23
TND17002*		118	120	2	1.25
	And	121	122	1	1.70
	And	125	126	1	3.79
TND17003		45	47	2	1.92
TND17006		225	226	1	2.00
	And	229	231	2	1.09
TND17007		14	15	1	1.03
TND17008		56	57	1	1.62
	And	60	63	3	1.56
	And	86	87	1	1.41
	And	213	214	1	1.37
TND17009		81	82	1	2.35
	And	252	253	1	1.74
	And	260	263	3	5.77
	Incl	260	261	1	8.88
	And	270	271	1	5.25
	And	294	295	1	1.38
TND17010		156	158	2	3.30
	And	167	168	1	1.16
TND17011		27	29	2	1.16
	And	81	82	1	10.35
	And	84	85	1	4.81
TND17012		21	22	1	1.92
	And	36	37	1	1.85
	And	38	39	1	1.89
	And	66	67	1	2.14
	And	248	250	2	1.84
	And	265	266	1	1.28
	And	268	270	2	1.07
	And	271	272	1	3.26
TND17013**		131	132	1	1.25

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	And	149	150	1	1.77
	And	398.7	400.5	1.8	3.46
	And	422.95	423.55	0.6	1.33
	And	450	451	1	5.31
TND17014		127	128	1	1.65
TND17015		211	212	1	1.18
	And	294	295	1	1.13
TND17016		46	47	1	2.98
TND17017		180	181	1	2.89
	And	182	183	1	4.59
	And	192	198	6	1.66
	And	202	203	1	2.27
TND17018**		209	210	1	1.42
	And	214.33	215.33	1	1.04
	And	222.9	224.25	1.35	5.52
	And	248	250	2	5.76
	Incl	249	250	1	8.86
	And	251	253	2	2.79
	And	290	291	1	1.13
	And	349	350	1	2.04
	And	355	358.08	3.08	11.88
	Incl	355	356	1	7.22
	Incl	357.65	358.08	0.43	66.90
	And	392.1	393	0.9	10.55
	And	399.1	400	0.9	1.85
TND17019		21	22	1	1.40
	And	23	24	1	1.20
	And	31	32	1	1.08
	And	144	145	1	1.11
	And	151	153	2	3.59
	And	176	187	11	2.48
	Incl	185	186	1	6.17
TND17020		176	177	1	4.01
	And	179	182	3	1.29
	And	189	191	2	4.92
	Incl	190	191	1	6.81

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	And	241	243	2	1.62
	And	251	252	1	2.26
TND17021		214	217	3	4.29
	Incl	215	216	1	6.27
	And	223	224	1	1.66
	And	226	227	1	1.35
	And	130	131	1	7.89
TND17022		193	196	3	6.67
	Incl	194	195	1	15.10
	And	199	204	5	2.53
	Incl	199	200	1	5.26
	And	278	279	1	1.27
	And	283	284	1	4.47
TND17023		130	131	1	7.89
TND17024		171	172	1	2.77
	And	208	210	2	4.74
TND17025		42	43	1	1.43
	And	46	48	2	1.61
	And	64	65	1	1.74
	And	69	70	1	5.57
TND17026		34	35	1	1.16
	And	49	51	2	1.23
TND17027		75	76	1	1.40
	And	162	164	2	4.80
	And	223	224	1	1.24
TND17029		80	82	2	2.40
	And	83	84	1	1.69
TND17030*		216	217	1	3.13
	And	224.45	222.4	0.95	1.31
	And	237.25	241.4	4.15	6.02
	Incl.	239.5	240	0.5	12.05
	Incl.	241	241.4	0.4	29.90
	And	317.65	318	0.35	1.16
	And	322.5	323.15	0.65	1.25
TND17031*		242	246	4	3.00
	Incl.	243	244	1	5.88

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	And	403	404	1	1.12
	And	411.7	417.85	6.15	3.25
	Incl.	415.35	416	0.65	7.55
TND16091***		245.7	247.8	2.1	3.83
	Incl.	245.7	246.5	0.8	7.23
TND16095***		322.6	323.23	0.63	2.03
	And	358.55	360.25	1.7	4.21
TND16096***		365.4	366.45	1.05	3.44
	And	394.9	395.7	0.8	1.45
	And	402	404	2	4.95

• denotes RC hole with diamond tail; ** denotes diamond hole from surface; *** denotes diamond

tail on RC hole from 2016

Competent Persons Statement

The information that relates to exploration and geological interpretations is based on information compiled by Dr. Wesley Groome who is a Member of the Australian Institute of Geoscientists (AIG). Dr. Groome is employed by Focus Minerals Limited and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.”

The Mineral Resource estimates were undertaken by Ms. Hannah Kosovich, an employee of Focus Minerals. Ms. Kosovich is a Member of the Australian Institute of Geoscientists (AIG) and has sufficient experience to qualify as a Competent Person as defined by the 2012 Edition of the “Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.”

ARANZ Geo Expert Services (formerly QG Australia), worked with and reviewed Focus’ work on the geological interpretation, assay QAQC information, estimation methedology and parameters and estimate validation. Mr. Micheal Job from ARANZ Geo is a Senior Principal Consultant and is a Fellow of the Australian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience to qualify as Competent Person as defined by the 2012 Edition of the “Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.”

Dr. Wesley Groome, Ms. Hannah Kosovich and Mr. Mike Job consent to the inclusion in the report of the matters based on the information in the form and context in which it appears.

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JORC Code, 2012 Edition – Table 1 Brilliant Deposit

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria

Commentary

Sampling techniques

 This report relates to results from Reverse Circulation (RC) drilling and diamond core drilling. The information of sampling techniques below applies to the drill holes drilled by Focus Minerals (FML) only.  RC percussion drill chips were collected through a cyclone and cone splitter. Samples were collected on a 1m basis. Diamond core was sampled across identified zones of mineralisation by site geologists, the sample widths varied between a minimum of 0.2m and a maximum of 1m.  RC chips were passed through a cone splitter to achieve a sample weight of approximately 3kg. The splitter was levelled at the beginning of each hole using a bullseye level. The spoils were collected in green bags at 1m intervals.  4m composite samples were taken by spear sampling the green spoils bag. Where results returned greater than 0.2g/t Au, the 1m samples were submitted.  At the assay laboratory all samples were oven dried, crushed to a nominal 10mm using a jaw crusher (core samples only) and weighed. Samples in excess of 3kg in weight were riffle split to achieve a maximum 3kg sample weight before being pulverized to 90% passing 75μm.  The diamond core was marked up for sampling by the supervising geologist during the core logging process, with sample intervals determined by the presence of mineralisation and/or alteration. The core was cut in half using an Almonte automatic core saw and the same half of the core was routinely sent to the laboratory for analysis  Goldfan collected 2kg samples as either 4m composites or as 1m samples through mineralised ground or interesting geology. Samples were run through a cyclone. Where the 4m composite samples returned greater than 0.2g/t Au, 1m samples were submitted. Diamond core was sampled according to lithological boundaries. Mineralised zones were half diamond sawn in intervals generally not exceeding 1m.

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	 MPI collected drill cuttings at one metre intervals which were passed through a trailer mounted cyclone and stand-alone riffle splitter to provide a 4-6kg split sample and a bulk residue for logging. All samples were dry. Initially samples were spear-sampled to form up to 5m composites and submitted for analysis. Any results above 0.5g/t Au resulted in the 1m samples then being submitted.
Drilling techniques	All FML drilling was completed using an RC face sampling hammer or NQ2/HQ3 size diamond core. Where achievable, all drill core was oriented by the drilling contractor using an Ezy-mark system. Most holes were surveyed upon completion of drilling initially using an electronic multi-shot (EMS) camera and since Sept 2013 a north-seeking gyroscope; holes were surveyed open-hole prior to 2017. Since late 2016, all holes were surveyed using various gyroscopes (non-north-seeking paired with an azimuth aligner and north-seeking) by the drill contractors whilst drilling. Goldfan used RC face sampling hammer or NQ2 diamond core drilling methods. The core was not orientated. Holes were downhole surveyed by Eastman single shot camera and later by Eastman multiple shot camera. MPI used RC drilling methods and downhole surveys by Eastman single shot camera.
Drill sample recovery	FML Sample recovery was recorded by a visual estimate during the logging process. All RC samples were drilled dry whenever possible to maximize recovery, with water injection on the outside return to minimise dust. Goldfan states a consistent sample recovery in the range of 80-90%
Logging	The information of logging techniques below applies to the drill holes drilled by FML only. All core samples were oriented, marked into metre intervals and compared to the depth measurements on the core blocks. Any loss of core was noted and recorded in the drilling database. All RC samples were geologically logged to record weathering, regolith, rock type, colour, alteration, mineralisation, structure and texture and any other notable features that are present. All diamond core was logged for structure, and geologically logged using the same system as that for RC.

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The logging information was transferred into the company’s drilling database once the log was complete. Logging was qualitative, however the geologists often recorded quantitative mineral percentage ranges for the sulphide minerals present. Diamond core was photographed one core tray at a time using a standardised photography jig. More recently samples from RC holes were archived in standard 20m plastic chip trays. The entire length of all holes are logged. Historic RC holes have been logged at 1m intervals to record weathering, regolith, rock type, colour, alteration, mineralisation, structure and texture and any other notable features that are present. Goldfan logged diamond core to lithological boundaries, core was photographed.

Sub-sampling techniques and sample preparation

The information of sub-sampling and sample preparation below applies to the drill holes drilled by FML only. Core samples were taken from half core, cut using an Almonte automatic core saw. The remainder of the core was retained in core trays tagged with a hole number and metre mark. RC samples were cone split to a nominal 2.5kg to 3kg sample weight. The drilling method was designed to maximise sample recovery and delivery of a clean, representative sample into the calico bag. Where possible all RC samples were drilled dry to maximise recovery. The use of a booster and auxiliary compressor provide dry sample for depths below the water table. Sample condition was recorded (wet, dry or damp) at the time of sampling and recorded in the database. The samples were collected in a pre-numbered calico bag bearing a unique sample ID. Samples were crushed to 75μm at the laboratory and riffle split (if required) to a maximum 3kg sample weight. Gold analysis was initially by 40g aqua regia for the composite samples then 40g Fire Assay for individual samples with an ICP-OES or AAS Finish. The assay laboratories’ sample preparation procedures follow industry best practice, with techniques and practices that are appropriate for this style of mineralisation. Pulp duplicates were taken at the pulverising stage and selective repeats conducted at the laboratories’ discretion.

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Earlier FML QAQC checks involved inserting a standard or blank every 10 samples in RC and taking a field duplicate every 20 samples in RC. Field duplicates were collected from the cone splitter on the rig. Diamond core field duplicates were not taken, a minimum of 1 standard was inserted for every sample batch submitted. In more recent drilling no blanks were submitted, only standards every 25 samples with a duplicate taken off the rig every 20th sample. Regular reviews of the sampling were carried out by the supervising geologist and senior field staff, to ensure all procedures were followed and best industry practice carried out. The sample sizes were considered to be appropriate for the type, style and consistency of mineralisation encountered during this phase of exploration. Goldfan originally submitted its samples to Australian Laboratories Group Kalgoorlie. The 2kg samples were oven dried, then crushed to a nominal 6mm and split once through a Jones riffle splitter. A 1kg sub-sample was fine pulverised in a Keegor Pulveriser to a nominal 100 microns. This sample was homogenised and 400-500g split as the assay pulp for analysis. Assaying was by a classical fire assay on a 50g charge to a lower detection limit of 0.01 ppm gold. Diamond core and later RC drilled by Goldfan was submitted to Minlab Kalgoorlie where the whole of the sample is pulverised in a ring mill before 300g sample is split as the assay pulp. Assaying was by fire assay on a 50g charge to a lower detection limit of 0.01 ppm gold. Goldfan conducted inter-laboratory check sampling over approx. 10% of holes over the whole program with results found to be within acceptable limits. Laboratory repeat checks were also run on the assay data. MPI submitted there samples to Analabs in Perth for analysis for gold by 50g fire assay for a 0.01g/t detection limit. Laboratory repeat checks were also run, it appears minimum 3 analysis checks run for most of the drillholes.

Quality of assay data and laboratory tests

The assay method and laboratory procedures were appropriate for this style of mineralisation. The fire assay technique was designed to measure total gold in the sample. No geophysical tools, spectrometers or handheld XRF instruments were used.

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	The QA/QC process described above was sufficient to establish acceptable levels of accuracy and precision. All results from assay standards and duplicates were scrutinised to ensure they fell within acceptable tolerances.
Verification of sampling and assaying	Significant intervals were visually inspected by company geologists to correlate assay results to logged mineralisation. Consultants were not used for this process. Normally if old historic drilling was present, twinned holes are occasionally drilled to test the veracity of historic assay data; however, no twinned holes were drilled during this program. Primary data is sent in digital format to the company’s Database Administrator (DBA) as often as was practicable. The DBA imports the data into an acQuire database, with assay results merged into the database upon receipt from the laboratory. Once loaded, data was extracted for verification by the geologist in charge of the project. No adjustments were made to any current or historic data. If data could not be validated to a reasonable level of certainty it was not used in any resource estimations.
Location of data points	FML drill collars were surveyed after completion, using a DGPS instrument. All drill core was oriented by the drilling contractor using an Ezy-mark system. Most holes were surveyed upon completion of drilling. Initially an electronic multi-shot camera was used until Sept 2013 when a north-seeking gyroscope tool was used. Holes were surveyed open-hole prior to 2016. Since late 2016, most drillholes were surveyed using various gyroscope systems (non-north- seeking gyroscopes paired with azimuth aligners and north-seeking gyroscopes) by the drillers whilst drilling, otherwise surveyed open hole using a north-seeking gyroscope. Since the start of 2017, gyroscopes were used for “single shot” surveys whilst drilling, otherwise a single shot Eastman camera downhole survey was used. All coordinates and bearings use the MGA94 Zone 51 grid system. FML utilises Landgate sourced regional topographic maps and contours as well as internally produced survey pick-ups produced by the mining survey teams utilising DGPS base station instruments. Goldfan holes were laid out and picked up by the Three Mile Hill Survey Department. Down hole surveying was conducted by Down Hole Surveys using Eastman multiple shot cameras.

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	MPI collar survey methods are unknown, down hole surveys were by Eastman single shot camera.
Data spacing and distribution	Drill spacing along the Brilliant trend is approximately 20m x 20m through the main lode horizon, increasing to 20m x 40m and 40m x 40m to the north of 6573000mN.
Orientation of data in relation to geological structure	Drilling was designed based on known geological models, field mapping, verified historical data and cross-sectional interpretation. Drill holes were oriented at right angles to strike of deposit, with dip optimised for drill capabilities and the dip of the ore body.
Sample security	All samples were reconciled against the sample submission with any omissions or variations reported to FML. All samples were bagged in a tied numbered calico bag, grouped into green plastic bags. The bags were placed into cages with a sample submission sheet and delivered directly from site to the Kalgoorlie laboratories by FML personnel on a daily basis. Historic sample security is not recorded.
Audits or reviews	A review of sampling techniques was carried out by rOREdata Pty Ltd in late 2013 as part of a database amalgamation project. Their only recommendation was to change the QA/QC intervals to bring them into line with the FML Laverton system, which uses the same frequency of standards and duplicates but has them inserted at different points within the numbering sequence.

Section 2 Reporting of Exploration Results

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

Criteria	Commentary
Mineral tenement and land tenure status	All exploration was conducted on tenements 100% owned by Focus Minerals Limited or its subsidiary companies Focus Operations Pty Ltd. All tenements are in good standing. There are currently no registered Native Title claims over the Coolgardie project areas.
Exploration done by other parties	Brilliant has been explored and mined by various parties over time. The first phase of mining is believed to have taken place in the early twentieth century and would have consisted of prospecting shafts and limited underground

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mining. Mines Department records document treatment of 60 tons of ore producing 6.97oz of gold up to 1935. No other production is recorded.

• Open pit mining of the prospect commenced in the 1970’s with a number of parties processing ore through the Coolgardie State Battery. In 1980 a treatment plant was constructed at Brilliant by Tryaction Pty Ltd, who produced from an open pit. In the mid 1980’s Electrum NL bought into the project, forming a joint venture with MC Mining. They expanded the treatment plant and continued open pit mining in the Brilliant area. Recorded production by Electrum/MC Mining is 87,986 tonnes at 3.2 g/t Au for 9,000 ounces with a stripping ratio of 12.7:1 (Kirkpatrick, 1995).

• The project was subsequently purchased by Goldfan Limited (a wholly owned subsidiary of Herald Resources Ltd) in 1991 and incorporated into the Tindals Project. They initiated drilling programs which increased the known extent of mineralisation and completed further open cut mining to its present limits in the early 2000’s. Table 2 in the FML Combined Annual Report of 2008 states an estimated total production from Brilliant Pit of in excess of 1.1Mt @ 2.45g/t for 88,000 ounces.

• Geology  The deposit lies on the western margin of the Archaean Norseman – Menzies Greenstone Belt. Host rocks at Brilliant are a sequence of Archaean Basalts and Ultramafics, which have been intruded by a suite of porphyry dykes (also described as granodiorites). The porphyries host the bulk of the mineralisation, occurring in two orientations, steeply dipping (70 - 80°) with an average width of 3 to 5m, or flatter dipping (20 - 40°) with widths of up to 2m. Mineralisation consists of a stock work of quartz / sulphide micro-veining and albitic alteration of the porphyry.

Drill hole

Information

		Drillholes Completed at		Brilliant during the March 2017			Quarter
						Dept
		Hole ID	Easting	Northing	RL	h	Azimuth	Dip	Hole Type
		TND17001	326350	6573281	405	150	253	-60	RC
		TND17002	326284	6573255	406	187.2	254	-58	RCDD
		TND17003	326344	6573082	405	252	258	-59	RC
		TND17004	326157	6573090	407	150	254	-59	RC
		TND17005	326158	6573037	407	150	255	-61	RC

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		TND17006	326093	6572893	408	250	71	-55	RC
		TND17007	326373	6573154	405	192	250	-59	RC
		TND17008	326110	6572650	408	300	72	-55	RC
		TND17009	326274	6572244	410	300	72	-55	RC
		TND17010	326280	6572319	410	282	68	-55	RC
		TND17011	326368	6572210	412	288	68	-60	RC
		TND17012	326393	6572190	413	300	74	-55	RC
		TND17013	326547	6572822	407	471.5	245	-67	DD
		TND17014	326091	6572785	408	300	70	-55	RC
		TND17015	326578	6573066	404	300	250	-60	RC
		TND17016	326187	6572951	407	162	250	-60	RC
		TND17017	326344	6573021	406	252	250	-60	RC
		TND17018	326550	6572674	412	468.4	250	-70	DD
		TND17019	326357	6572975	405	222	250	-55	RC
		TND17020	326649	6572267	424	270	250	-60	RC
		TND17021	326629	6572177	423	240	250	-70	RC
		TND17022	326618	6572127	423	300	250	-70	RC
		TND17023	326508	6571794	419	156	285	-60	RC
		TND17024	326619	6571942	420	300	275	-60	RC
		TND17025	326352	6572285	411	132	71	-55	RC
		TND17026	326399	6572232	411	102	250	-60	RC
		TND17027	326320	6572192	411	300	70	-55	RC
		TND17028	326066	6572631	408	198	71	-55	RC
		TND17029	326564	6572755	408	102	71	-55	RC
		TND17030	326272	6572273	409	462.5	52	-55	RCDD
		TND17031	326209	6572442	408	460	75	-50	RCDD
		TND16091	326447	6572754	407	354.7	255	-60	RCDD*
		TND16095	326601	6572557	417	417.1	255	-60	RCDD*
		TND16096	326557	6572881	405	456.6	255	-60	RCDD*
		 *RC pre-collar completed in 2016, diamond tail completed during March 2017 quarter

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Data aggregation methods	 Mineralised intersections are reported at a 0.9g/t Au cut-off with a minimum reporting width of 1m for RC holes and 0.2m for diamond holes, reported as length-weighted average grades.
Relationship between mineralisation widths and intercept lengths	 Holes were drilled orthogonal to mineralisation as much as possible, however the exact relationship between intercept width and true width cannot be estimated exactly in all cases.
Diagrams	Refer to Figures and Tables in body of the release.
Balanced reporting	Recent FML drill assay results used in this estimation are published in previous news releases. Historic drill hole results available on WAMEX.
Other substantive exploration data	There is no other material exploration data to report at this time.
Further work	The company is further reviewing the exploration results, follow-up drilling will be planned to test the extension down-dip of the main lodes and test the extents to the North of mineralisation in the region.

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section)

Criteria

Commentary

Database integrity

FML data was geologically logged electronically, collar and downhole surveys were also received electronically as was the laboratory analysis results. These electronic files were loaded into an acQuire database by either consultants rOREdata or the company in-house Database Administrator. Data was routinely extracted to Microsoft Access during the drilling program for validation by the geologist in charge of the project.  FML’s database is a Microsoft SQL Server database (acQuire), which is case sensitive, relational and normalised to the Third Normal Form. As a result of normalisation, the following data integrity categories exist:  Entity Integrity: no duplicate rows in a table, eliminated redundancy and chance of error.

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	 Domain Integrity: Enforces valid entries for a given column by restricting the type, the format or a range of values.  Referential Integrity: Rows cannot be deleted which are used by other records.  User-Defined Integrity: business rules enforced by acQuire and validation codes set up by FML. Additionally, in-house validation scripts are routinely run in acQuire on FML’s database and they include the following checks:  Missing collar information  Missing logging, sampling, downhole survey data and hole diameter  Overlapping intervals in geological logging, sampling, down hole surveys oChecks for character data in numeric fields Data extracted from the database were validated visually in GEOVIA Surpac software and ARANZ Geo Leapfrog software. Also when loading the data any errors regarding missing values and overlaps are highlighted. Historic data has been validated against WAMEX reports where possible.
Site visits	Wesley Groome, the Competent Person for Sections 1 and 2 of Table 1 is the Senior Exploration Geologist for the Coolgardie Project and conducts regular site visits and oversees the drill programmes Michael Job, the Competent Person for Section 3 of Table 1 is Senior Principal Consultant with ARANZ Geo Expert Services (Formerly QG Australia), an independent mineral industry consulting group. He visited FML’s Coolgardie operations in September 2012.
Geological interpretation	All available drill hole and historic mining data was used to guide the geological interpretation of the mineralisation. The mineralised geological interpretation was digitized in GEOVIA Surpac software on a section by section basis. An approximate 0.5g/t cut-off was used, infrequently sub 0.5g/t samples were included for continuity. The logging of felsic intrusive’s also guided the interpretation. Minor deviation only of the lode geometry was noticed between drill holes along strike and down-dip. Minor lodes with less continuity and sample numbers were also interpreted.

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Dimensions

The entire Brilliant deposit strikes NNW with a total strike length of 2km, Brilliant can be separated into Brilliant and Brilliant North with an approximate 200m gap of low grade mineralization between the two zones. The main lodes of mineralisation have been modelled to approximately 460m below surface with an average width of 3 - 4m for most lodes.

Estimation and modelling techniques

Only RC and Diamond holes were used in the Estimation. In total 450 RC holes, 2 diamond holes and 42 diamond holes with RC pre-collars (RCDD) totalling 64,806.68m were used. This includes the 31 holes discussed in Section 2 of this table. The drill hole samples were composited to 1m within each domain. This is the dominant sampling interval. All domain boundaries were considered “hard” boundaries and no drillhole information was used by another domain in the estimation. Composited assay values of each domain were exported to a text file (.csv) and imported into Snowden Supervisor for geostatistical analysis. A review of histograms, probability plots and mean/variance plots for each domain revealed some outlier sample values. Top-capping of higher Au values within each domain was carried out with Au values above the cut-off grade reset to the cut-off grade. For the main domain a top-cut of 26g/t Au was selected, the different domains had different top-cuts as required. Variograms were modelled in Supervisor on the larger domains that had greater than 100 samples, these variogram models were then shared with the smaller domains of similar orientation and proximity. Due to the skewed nature of the dataset a Normal Scores transformation was applied to obtain better variograms. A back-transformation was then applied before being exported. GEOVIA Surpac Software was used for the estimation and modelling process. The model was created in GDA 94 grid co-ordinates. Block sizes for the model were 10m in Y, 10m in X and 5m in Z direction. Sub celling of the parent blocks was permitted to 5m in the Y direction, 1.25m in the X direction and 2.5m in the Z direction. Sub-blocking was used to best fill the wireframes and inherit the grade of the parent block. No rotation was applied to the orientation of the blocks. Block size is approximately ½ of the average drill hole spacing.

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	An Ordinary Kriging (OK) estimation technique was selected and used the variograms modelled in Supervisor. Each domain was estimated separately using only its own sample values. Minimum (8) and maximum (24) sample numbers were selected based on a Kriging Neighbourhood analysis in Supervisor. This was dropped to a minimum (4) samples on the second and third search pass. An elliptical search was used based on range of the Variograms. Three search passes were run in order to fill the block model with estimated Au values. It was noted however at depth on the larger lodes where few samples exist high grade values were being “smeared” long distances due to a lack of drillholes. Therefore the larger domains, 1, 2 and 3 were estimated in two parts. Above the 230m RL where most of the sampling exists an OK estimate was run with no restrictions on samples grades within the lodes. Beneath the 230mRL a “grade dependent search” option was used to limit the search radius high grade values could be used in the estimation process. At Brilliant grades greater than 10g/t Au could only be used to inform blocks up to a 30m search ellipse distance away. This limited the influence of a few high grade values at depth. The estimate was validated by a number of methods. An initial visual review was done by comparing estimated blocks and raw drill holes. Tonnage weighted mean grades were compared for all lodes with the raw and top-capped drill hole values. There were no major differences. Swath plots of drill hole values and estimated Au grades by northing and RL were done for the main domain and showed that the estimated grades honoured the trend of the drilling data. Historic mine production from Brilliant is estimated to be around 1.1Mt @ 2.45g/t Au for 88,000 ounces. Within the current pit void, 1.14Mt @ 2.0g/t Au for 74,500 Oz is reported from the updated Brilliant Model.
Moisture	Tonnages are estimated on a dry basis.
Cut-off parameters	The Resources for Brilliant have been reported above a 1g/t cut-off for open pit above 260mRL, this is based on a preliminary whittle shell optimisation. A 3g/t cut-off for underground below the 260mRL was used based on preliminary underground mining assessment.

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Mining factors or assumptions	The Brilliant deposit would be mined by open-cut and underground via decline and stoping.
Metallurgical factors or assumptions	 In December 1996 Ammtec Ltd conducted metallurgical test work on 2 composite samples from Brilliant (TNG1166, 37-38m and 43-44m. Grade: 1.49 ppm) and (TNG1167, 26-27m and 29-30m. Grade: 3.35 ppm). Work carried out included detailed elemental analysis, grind establishment, gravity separation/cyanidation and gravity separation/floatation/cyanidation test work. Excellent overall gold recoveries were reported for the gravity/cyanide leaching test work with 97.75% for Comp 1 and 95.51% for Comp 2.  The cyanidation leach testing of the flotation concentrates showed successful gravity separation of 37.29% of total gold content for Comp 1 and 14.76% for Comp 2. Floatation testing of gravity tailings recovered a further 49.65% of gold content for Comp 1 and 66.02% for Comp 2. Giving an overall gold extraction levels of 87.04% for Comp 1 and 80.78% for Comp 2 to gravity separation/floatation test work. Cyanide leach testing of the floatation concentrates gave moderate extraction for Comp 1 at 72.51% and low gold extraction for Comp 2 at 54.45%.
Environmental factors or assumptions	The Brilliant deposit occurs within the historic Brilliant open cut pit with previous ground disturbances including open cut pit, waste dumps and milling residues/tailings from the nearby State Battery. The Three Mile Hill Processing Plant is currently on care and maintenance, but has all necessary tailing facilities etc. that would allow for a rapid restart of the plant.
Bulk density	Bulk densities were assigned based on the weathering profile: 1.8 for completely oxidised, 2.4 for transitional and 2.75 for fresh rock. These figures are based on previous mining and recently recorded data using the water immersion technique.
Classification	 Resources have been classified as either Indicated or Inferred based mainly on geological confidence in the geometry and continuity of the lodes. In addition, various estimation output parameters such as number of samples, search pass, kriging variance, and slope of regression have been used to assist in classification.  Above the 230mRL significant drilling exists coupled with the successful extraction of resources from the pit over a number of years; therefore the

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	larger domains that estimated in the first 2 search passes were classified as Indicated.  Estimated blocks in the larger domains beneath the 230mRL were classified Inferred. Smaller domains that still had good sample coverage and continuity were classified as Inferred.  Smaller domains based on one or two drill holes intercept data were assigned a ‘not classified’ code and are not included in the reported mineral resource estimate.
Audits or reviews	ARANZ Geo worked with and reviewed/critiqued FML’s work on the geological interpretation, assay QAQC information, estimation methodology and parameters, and estimate validation. Very little of the FML work needed changing, and Mike Job from ARANZ Geo is satisfied to act as the Competent Person for the mineral resource estimate.
Discussion of relative accuracy/ confidence	This is addressed in the relevant paragraph on Classification above. The Mineral Resource relates to global tonnage and grade estimates Brilliant has been historically mined open cut with recorded production figures of 88,000 ounces at an average grade of 2.45 g/t, the new model was reported within the pit boundary and similar figure of 75,000 ounces at an average grade of 2.0g/t.

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