G-Resources Group Limited — Capital/Financing Update 2015

Jul 29, 2015

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Hong Kong Exchanges and Clearing Limited and The Stock Exchange of Hong Kong Limited take no responsibility for the contents of this announcement, make no representation as to its accuracy or completeness and expressly disclaim any liability whatsoever for any loss howsoever arising from or in reliance upon the whole or any part of the contents of this announcement.

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G-Resources Group Limited 國際資源集團有限公司 * (Incorporated in Bermuda with limited liability) (Stock Code: 1051)**

ANNOUNCEMENT

G-RESOURCES – EXPLORATION UPDATE

Hong Kong, 29 July 2015

G-Resources Group Limited (HKSE: 1051 – “G-Resources” or the "Company") is pleased to update the market with recent exploration results at G-Resources’ Martabe gold and silver mine in Indonesia.

HIGHLIGHTS

G-Resources continues its successful exploration programme at the Martabe Gold and Silver mine in North Sumatra. Recent work has focused on expanding the Mineral Resource Estimates at Martabe, and on regional exploration targets at the Tani Hill, Tango Papa and Rantau Panjang prospects. Drilling has been conducted on extensions to known Resources at the Purnama, Ramba Joring and Tor Uluala deposits.

The key results from exploration work are:

• Drilling and geological investigations to upgrade the Mineral Resource Estimates at Ramba Joring and Tor Uluala are nearing completion.

• Best results from this drilling include:

• 101.0m @ 1.93 g/t Au, including 21.0m @ 10.5 g/t Au (from additional drilling at the Ramba Joring Deposit)

• 138.9m @ 1.28 g/t Au (from additional drilling at the Tor Uluala Deposit)

• Trenching results at Ramba Joring confirm that mineralisation extends to surface in some areas where the current Mineral Resource and Ore Reserve do not extend. Best results from this trenching include:

• 49.7m @ 2.37 g/t Au, including 5m @ 8.17 g/t Au

• 37.0m @ 3.23 g/t Au

• Regional exploration is ongoing at the Tani Hill, Tango Papa and Rantau Panjang prospects.

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A helicopter loadmaster sending consumables to a drill site from the Martabe exploration base.

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RAMBA JORING RESOURCE UPGRADE AND EXTENSION

Ramba Joring currently has an estimated Mineral Resource (Inferred and Indicated) consisting of 38 million tonnes at average grade of 1.0 g/t gold and 4 g/t silver, with total contained metal content of 1.2 million ounces of gold and 5.0 million ounces of silver. From this Resource, a Probable Reserve is estimated with 5.2 million tonnes at average grade of 1.8 g/t gold and 4.4 g/t silver and total contained metal content of 0.29 million ounces of gold and 0.7 million ounces of silver. Ramba Joring is north of and adjacent to the Purnama Open Pit.

Over the past three months, Ramba Joring has been drilled for extensions of the known deposit both within and outside the current Ore Reserve pit shell. It is anticipated the results of recent work should both increase the Mineral Resource and improve the Ore Reserve economics by defining additional mineralisation in material that was previously waste, and by adding additional mineralised zones to the deposit. This work is the precursor to a revised Mineral Resource Estimate to be completed in 2015, which may then be used for a revised Ore Reserve Estimate.

The program of drilling and trenching work commenced at Ramba Joring in early 2015. A total of 18 surface trenches (totaling 690 metres) and 32 diamond drill holes (totaling 3,859.4 metres) have been completed. The field program finished in July 2015, and results have been received from all trenches and the first 17 drill holes.

Best results received to date for the drilling were:

• APSD1500: 6.6m @ 9.17 g/t Au, 22 g/t Ag from 47.6m;

• APSD1527: 49.0m @ 3.3 g/t Au, 6 g/t Ag from 6.0m;

• APSD1528: 101.0m @ 1.93 g/t Au, 8 g/t Ag from 58m (including 21m @ 10.5 g/t Au, 14 g/t Ag);

• APSD1541: 17.7m @ 1.87 g/t Ag from 6.7m.

Best results received to date for the trenching were:

• TRRJ-01: 37.0m @ 3.23 g/t Au,10 g/t Ag;

• TRRJ-03: 49.7m @ 2.37 g/t Au, 1 g/t Ag.

A complete list of the drill hole and trench locations and significant results is provided in Appendix 1, Table A1 and A2. Figure 4 shows selected sections.

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The program has successfully defined extensions of the mineralisation and particularly in areas of the Resources and Reserves where the block model previously did not reach the surface because of lack of information. Figures 4A and 4B show examples. The additional drilling is also defining greater continuity of high grade zones than previously interpreted, shown in Figure 4C.

Visually these results are from highly oxidized rock and therefore are expected to have good recovery characteristics in the existing Martabe gold processing plant. Results of sulphur assays are awaited to confirm this observation.

A consulting group has been engaged to complete an updated Mineral Resource Estimate for Ramba Joring for release in late 2015.

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Core from diamond drill hole APSD1528, photographed before cutting and sampling. The 4 metre intersection from 63-67 metres has an average grade of 5.59 g/t Au, 15.9 g/t Ag and sulphide sulphur content of 0.06%, this is very low and is indicative of upper ranges of recovery in the existing Martabe gold processing plant.

This core displays intense silicification in a volcanic breccia unit, typical of the higher grade “run of mine” mineralisation at the Martabe deposits.

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TOR ULUALA RESOURCE UPGRADE AND EXTENSION

Tor Uluala currently has an inferred resource consisting of 32 million tonnes at average grade of 0.9 g/t gold and 8 g/t silver, with total contained metal content of 0.9 million ounces of gold and 7.8 million ounces of silver. Tor Uluala is located approximately one kilometer north of Purnama and is adjacent to Ramba Joring, leading to a proposed eventual mining sequence northwards through Ramba Joring, Tor Uluala and eventually to Uluala Hulu.

The gold and silver mineralisation at Tor Uluala is drilled to a wide spacing and there is potential to expand the Mineral Resource and improve the grade and eventual mining economics with closer spaced samples. To this end, a program of drilling and surface trench sampling has been in progress commencing mid-2014.

The trenching program was completed in 2014 with 32 trenches dug for a total of 1,152.9 metres of channel sampling. This was reported in full on 30 October 2014. Highlights of this sampling included:

• TUA-28B: 11m @ 6.36 g/t Au, 1 g/t Ag including 5m @ 8.17 Au;

• TUA-30: 33m @ 13.49 g/t Au, 1 g/t Ag including 14m @ 29.2 g/t Au.

Three drill holes were reported on 30 October 2014. Since then a further 11 drill holes have been completed for a total of 2,369.6 metres. The drilling program is planned to finish by the end of July 2015. The best results for this drilling were:

• APSD1533: 37.6m @ 1.56 g/t Au, 1 g/t Ag from 42.5m;

• APSD1534: 138.9m @ 1.28 g/t Au, 4 g/t Ag from 2.1m;

• APSD1535: 55.2m @ 1.43 g/t Au, 1 g/t Ag from 48.4m;

• APSD1538: 21.7m @ 2.52 g/t Au from 116.0m.

A complete list of the drill hole and trench locations and significant results returned from the assay laboratory to date is provided in Appendix 1, Table A3. Figure 5 shows selected sections.

Visually these results are predominately from highly oxidized rock and therefore are expected to have good recovery characteristics in the existing Martabe gold processing plant. Results of sulphur assays are awaited to confirm this observation.

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The 2014-15 campaign of drilling and trenching has served to:

• Locate additional mineralised zones and extension to known mineralisation;

• Confirm that drill intersections at depth are continuous to surface, by the use of near horizontal drilling and trenching;

• Define higher grade zones within the existing Inferred Resource category.

A consulting group has been engaged to complete an updated Mineral Resource Estimate for Tor Uluala for release in late 2015.

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Tor Uluala Ramba Joring
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An aerial view showing the Ramba Joring and Tor Uluala deposits with the Purnama Open Pit in the foreground.

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REGIONAL EXPLORATION

Exploration work is continuing over the prospective 1,639 km[2] Contract of Work. Three main projects are currently being explored.

Tani Hill

Tani Hill is located in the Gambir-Kapur District, 20 kilometres south of Martabe, as shown in Figure 2. Tani Hill has been drilled previously with no indications of a porphyry copper or economic gold system in the areas targeted. However, recent mapping showed a significant extent of altered rock typical of a higher temperature mineral system than previously recognized, i.e. trending more towards a high temperature porphyry copper style system than an epithermal gold system. The alteration identified included disseminated and veined magnetite, silica (as pervasive alteration and quartz veins) actinolite, chlorite, and pyrite. Minor garnet, secondary biotite and trace chalcopyrite occur locally. The area is anomalous in copper. Molybdenum and gold in rock samples and soil samples.

A drilling program consisting of three, 600 metre deep diamond drill holes is currently being drilled. Assay results from the first hole have been received, with a best result of 3.0m @ 0.2% Cu from 385-387 metres down the hole. The second hole has been completed with traces of disseminated and vein hosted chalcopyrite confirmed through spot analysis for copper with a hand held XRF analyser. Assay results for the second hole have not been received but it is likely the chalcopyrite in the second drill hole will not be of economic grade. The third and final hole in the program is underway.

At this stage, it is unclear whether this system was emplaced by a large scale metasomatic alteration event around a barren intrusive or if it represents a peripheral alteration zone to a mineralised buried porphyry copper deposit.

Tango Papa

Tango Papa is located 25 kilometres north of Martabe, as shown in Figure 2. In 2013, two diamond drill holes were completed to test buried porphyry copper-gold targets, neither of which returned significant results.

Recent field work and conceptual modeling at Tango Papa has defined new gold and porphyry copper targets which are currently being drilled. A program of two, 600m deep holes is underway with the first hole completed on 11 July 2015. The first hole was targeted

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on a gold bearing, advanced argillic and silica altered breccia at surface (spot gold values up to 1.25 g/t). The second hole is testing a conceptual target of a buried porphyry copper model based on the results of surface geochemistry, airborne magnetics and recognition of high temperature alteration minerals such as topaz in spectral analysis of surface samples.

The first hole intersected various alteration assemblages including argillic advanced argillic and vuggy silica alteration. Assays have not yet been received.

Tango Papa lies within an area designated by the Indonesian Government as Protected Forest. Specific laws and regulations apply for development of mining projects in protected forest areas. G-Resources is fully permitted to conduct exploration within this area, and as the project is not at mining stage these laws and regulations are not yet applied.

Rantau Panjang

Rantau Panjang is approximately 80 kilometers south of Martabe, as shown in Figure 2. Gold potential at Rantau Panjang is indicated by previous stream sediment geochemistry and by a small number of illegal miners working alluvial gold in creeks and rivers. Gold and copper bearing magnetite skarns occur in the area surrounding the prospect and the geology is permissive for epithermal targets and porphyry copper-gold systems.

A helicopter borne electromagnetic and magnetometer survey is planned to commence in August 2015. A similar technique was used in 2004 to explore other parts of the Contract of Work, and was found to be very efficient at locating “Martabe style” epithermal systems within hundreds of metres of the surface. The electromagnetic system to be used at Rantau Panjang is more powerful and should have greater depth penetration than the systems used previously.

The survey will be followed by detailed ground work on targets generated by the geophysics and a review of previous regional stream sediment geochemistry.

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A core shed assistant operating a point load index testing machine on core from the Tor Uluala deposit. This machine tests the in-situ rock strength which is used for estimating process plant crushing and grinding characteristics, pit wall strength and blasting requirements.

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COMPETENT PERSON STATEMENT

The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled by Mr. Shawn Crispin, a Competent Person who is a Member and Certified Professional of the Australasian Institute of Mining and Metallurgy. Mr. Crispin is a full time employee of G-Resources.

Mr. Crispin has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Crispin consents to the inclusion of the matters based on his information in the form and context in which it appears.

G-Resources issues all public results under the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code 2012 Edition)”. The Code requires reporting across most of the operational aspects of the exploration programme. The reporting requirements are specified in Table 1 of the Code and provided in Appendix 2 attached to this report.

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ABOUT MARTABE

The Martabe mine is located on the western side of the Indonesian island of Sumatra in the Province of North Sumatra, in the Batangtoru sub-district (Figure 1). Martabe is established under a sixth generation Contract of Work (“CoW”) signed in April 1997. The CoW defines all of the terms, conditions and obligations of both G-Resources and the Government of Indonesia for the life of the CoW.

Martabe Mine Aerial view.

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Martabe, with a resource base of 7.4 million ounces of gold and 70 million ounces of silver, is G-Resources Group’s core asset. Martabe’s operating capacity is to mine and mill the equivalent of 4.5 mtpa ore to produce some 250,000 ounces gold and 2 million ounces silver per annum. Costs are competitive when compared to global gold producers.

G-Resources is seeking to organically grow gold production through continued exploration success on the large and highly prospective CoW area (Figure 2). The Martabe mine enjoys the strong support of the Indonesian Central, Provincial and Local Governments and the nearby communities of Batangtoru.

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By Order of the Board G-Resources Group Limited Chiu Tao Chairman and Acting Chief Executive Officer

Hong Kong, 29 July 2015

As at the date of this announcement, the Board comprises:

• (i) Mr. Chiu Tao, Mr. Owen L Hegarty, Mr. Ma Xiao, Mr. Wah Wang Kei, Jackie and Mr. Hui Richard Rui as executive directors of the Company; and

• (ii) Dr. Or Ching Fai, Ms. Ma Yin Fan and Mr. Leung Hoi Ying as independent non-executive directors of the Company.

For media or investor enquiries please contact:

Hong Kong: Melbourne, Australia: Mr. Richard Hui Mr. Owen Hegarty T. +852 3610 6700 T. +61 3 8644 1330

Ms. Joanna Ip T. +852 3610 6700

Ms. Amy Kong T. +61 3 8644 1330

* For identification purpose only

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Figure 1: Martabe Mine Location.

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Figure 2: Martabe Contract of Work.

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Figure 3: Map of prospects, recent drill holes and cross sections in the Martabe near

mine area referred to in this report.

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Figure 4: Cross sections through Ramba Joring deposit, Purnama Deposit.

Figure 4A: Oblique Section (facing north east) showing continuity to surface of mineralised

zones in drill hole APSD1541.

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Figure 4B: Oblique Section (facing north east) showing continuity of mineralisation to the surface in trench TRRJ-03. The trenching will provide support to fill the gap between the surface and the current Mineral Resource and Ore Reserve Block Models.

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Figure 4C: Oblique Section (facing north east) showing an example of increasing continuity in a high grade gold zone, where drill hole APSD1524 is extending a high grade

intersection downwards.

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Figure 5: Cross section through The Tor Uluala Deposit.

North facing section showing:

• Extension of mineralisation to the surface, beyond the limit of the current Mineral Resource block model (drill hole APSD1524).

• Additional width to the block model with horizontal drilling across the section (drill hole APSD1533).

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Appendix 1: Drill hole information

This appendix provides drill hole information relevant to the contents of this report. Drill holes are reported as follows:

• The grid system employed is UTM (WGS84) Zone 47N.

• Significant intersections are calculated with a 0.5 g/t gold cut over a maximum of 2 metres of contiguous internal waste. One significant intersection may contain multiple intersections of internal waste.

• All intersections are down hole and may not necessarily be true widths.

• Note: NA = Final certified laboratory assay not yet available.

Table A1. Ramba Joring Diamond Drilling Locations and Results

Ramba Joring Diamond Drill Collar Locations

Hole Number	Easting (m)	Northing (m) RL (m) Final depth (m)	Azimuth (in degrees)	Inclination (in degrees from horizontal)
APSD1494	507736.3	168146.4 475.649 137.9	270	-5
APSD1497	507688.1	168035.9 465.978 110.1	270	-25
APSD1500	507669.6	168035 468.99 100.6	270	0
APSD1503	507782	168189 464.788 204.2	270	-30
APSD1524	507390.6	168368.8 631.792 32.9	135	0
APSD1525	507386.7	168372.3 631.708 105.6	135	-35
APSD1527	507386.4	168372.2 631.497 91.1	315	-78
APSD1528	507307.5	168518.9 616.326 190.3	315	-70
APSD1530	507188.8	168374.9 591.323 63.8	315	-15
APSD1531	507437.9	168407.5 600.822 181	315	0
APSD1532	507565.6	168625.4 597.092 205.9	306	-45
APSD1537	507566.1	168625.4 596.8 166.5	315	-45
APSD1540	507554.9	168293 578.237 200.2	315	-45
APSD1541	507489.4	168650.1 612.764 52.3	315	0
APSD1545	507273.4	168374 544.485 173.5	130	-30
APSD1547	507473.6	168868.5 547.009 78.3	315	-6
APSD1549	507669.8	168755.3 624.207 99.3	315	-55

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Ramba Joring Drill Hole Assay Intercep

Hole Number	From depth (m)	To depth (m) Interval (m)	Au_g/t	Ag_g/t
APSD1494		No Significant Results
APSD1497	20	22 2 1.36		3
APSD1497	62.2	65 2.8 0.73		1
APSD1497	72.6	87.3 14.7 2.53		9
APSD1500	24.7	29.1 4.4 0.93		3
APSD1500	34.9	42.6 7.7 3.62		36
APSD1500	47.6	54.2 6.6 9.17		22
APSD1524	20.4	30.3 9.9 1.13		0
APSD1525	6	13.5 7.5 2.86		0
APSD1525	19.9	22.9 3 1.54		1
APSD1525	34.7	46.4 11.7 0.87		0
APSD1525	74.9	80.9 6 1.43		1
APSD1525	83.9	87.9 4 2.14		3
APSD1527	0	3 3 2.18		0
APSD1527	6	55 49 3.30		6
APSD1528	58	159 101 1.93		8
APSD1530	26.7	37.7 11 0.97		2
APSD1530	39.8	63.8 24 1.25		2
APSD1531	8	11 3.0 0.50		0
APSD1531	120.3	124.3 4.0 1.64		1
APSD1531	129.3	135.3 6.0 1.09		2
APSD1532	120	125.9 5.9 2.98		4
APSD1532	137.3	145 7.7 1.85		3
APSD1537	97	102 5.0 2.28		5
APSD1540	46.7	48.7 2.0 0.67		NA
APSD1540	60.2	63.6 3.4 1.12		NA
APSD1540	75	81.7 6.7 0.85		NA
APSD1540	112.9	123.3 10.4 1.64		NA
APSD1540	130.7	132.8 2.1 2.04		NA
APSD1541	6.7	24.4 17.7 1.87		NA
APSD1545	101.90	105.20 3.30 1.80		NA
APSD1545	115.20	124.70 9.50 1.15		NA
APSD1545	128.70	132.70 4.00 1.31		NA
APSD1545	135.50	138.70 3.20 1.18		NA
APSD1545	142.10	145.60 3.50 1.91		NA
APSD1545	148.10	155.50 7.40 3.45		NA
APSD1547	36.10	43.10 7.00 1.18		NA
APSD1547	48.10	63.00 14.90 1.09		NA
APSD1549	24.00	48.70 24.70 1.43		NA

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Table A2: Ramba Joring Trench Locations and Results

Ramba Joring Trench Locations

Trench Number	Easting (m)	Start Point Finish Point Northing (m) RL (m) Easting Northing	Start Point Finish Point Northing (m) RL (m) Easting Northing	RL
TRRJ-01	507154.6	168427.4 594.8 507176.0	168399.1	600.0
TRRJ-02	507270.6	168507.9 624.3 507249.6	168533.6	600.5
TRRJ-03	507278.2	168625.4 571.4 507238.0	168633.7	537.4
TRRJ-04A	507636.9	168087.7 518.6 507642.9	168043.9	486.5
TRRJ-04B	507646.0	168046.6 480.6 507643.8	168026.9	479.6
TRRJ-04C	507646.6	168033.2 475.9 507640.2	168016.4	468.7
TRRJ-04D	507634.8	168012.6 469.4 507606.7	168029.8	485.7
TRRJ-05	507539.5	168398.2 563.6 507560.4	168391.0	557.8
TRRJ-06	507370.7	168544.3 656.5 507355.3	168573.1	655.9
TRRJ-07	507672.7	168244.8 546.5 507653	168240.2	559.0
TRRJ-07B	507651.9	168236.6 566.7 507642.4	168228.4	574.8
TRRJ-07C	507628.2	168235 581.9 507623.2	168235.4	586.1
TRRJ-08	507555.9	168174.1 547.7 507559.1	168156.8	547.9
TRRJ-09	507267.3	168495.8 627.7 507246.6	168503.6	617.8
TRRJ-10	507249.4	168515.1 610.5 507345.5	168692.4	597.0
TRRJ-11	507345.49	168691.32 597.04 507342.0	168642.3	607.6

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Ramba Joring Trench Assay Intercept

Hole Number	From (m)	To (m) Interval (m)	Au_g/t	Ag_g/t
TRRJ-01	0.0	37.0 37.0	3.23	10
TRRJ-02		No Significant Results
TRRJ-03	1.0	3.0 2.0 1.79		0.4
TRRJ-03	12.5	62.2 49.7 2.37		1.6
TRRJ-03	69.4	71.4 2.0 0.55		1.3
TRRJ-04A	5.4	8.5 3.1 0.63		0.3
TRRJ-04A	11.2	15.1 3.9 0.61		0.3
TRRJ-04B		No Significant Results
TRRJ-04C		No Significant Results
TRRJ-05		No Significant Results
TRRJ-06	8.1	12.4 4.3 0.7		0.3
TRRJ-07		No Significant Results
TRRJ-08		No Significant Results
TRRJ-09	24.5	32.8 8.3 0.56		0.2
TRRJ-10	0.0	2.3 2.3 0.52		0.8
TRRJ-10	13.8	29.9 16.1 0.75		0.
TRRJ-11		No Significant Results
TRRJ-12		No Significant Results
TRRJ-13		No Significant Results

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Table A3: Tor Uluala Diamond Drilling Locations and Results

Tor Uluala Drill hole Collar Locations

Hole Number	Easting (m)	Northing (m) RL (m) Final depth (m)	Azimuth (in degrees)	Inclination (in degrees from horizontal)
APSD1519	507057	169080 529 1091.8	100	-66
APSD1523	507104	169543 639 205.4	105	-50
APSD1529	507104	169543 639 340.1	105	-50
APSD1533	507286	169525 744 104.5	270	-15
APSD1534	507239	169550 780 220.1	270	-80
APSD1535	507303	169384 690 133.1	270	0
APSD1538	507316	169502 709 144.7	270	-10
APSD1539	507565	170050 771 100.3	90	0
APSD1543	507570	170074 757 90.2	90	0
APSD1546	507576	170097 765 146.3	90	-10

Tor Uluala Drill hole Assay Intercept

Hole Number	From depth (m)	To depth (m) Interval (m)	Au_g/t	Ag_g/t
APSD1519		No Significant Results
APSD1523		No Significant Results
APSD1529	110.4	113 2.6 0.97		7
APSD1529	116.3	120.2 3.9 1.69		22
APSD1529	303	305 2 3.03		6
APSD1533	15	19 4 0.95		0
APSD1533	42.5	80.1 37.6 1.56		1
APSD1533	82.2	86 3.8 1.67		0
APSD1534	2.1	141 138.9 1.28		4
APSD1534	147	149 2 0.86		5
APSD1534	152	157 5 0.74		9
APSD1534	168	172 4 0.61		5
APSD1534	176.5	180.5 4 1.9		20
APSD1535	9	13 4 0.81		0
APSD1535	32.4	37.5 5.1 0.6		1
APSD1535	40	42 2 0.55		1
APSD1535	48.4	103.6 55.2 1.43		1
APSD1538	33	37 4 0.72		NA
APSD1538	88	90 2 0.8		NA
APSD1538	101	105 4 0.76		NA
APSD1538	110.8	113.1 2.3 0.75		NA
APSD1538	116	137.7 21.7 2.52		NA
APSD1539	65.1	87 21.9 0.77		NA
APSD1543	27	38 11 0.83		NA
APSD1543	81	88 7 1.27		NA
APSD1546	22.70	24.70 2.00 0.53		NA
APSD1546	89.20	92.80 3.60 0.54		NA
APSD1546	99.80	105.00 5.20 2.25		NA
APSD1546	110.00	114.00 4.00 0.77		NA
APSD1546	132.70	137.70 5.00 2.23		NA

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Appendix 2: JORC Code, 2012 Edition – Table 1 report

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling techniques	Nature and quality of sampling.	Samples referred to in this report are diamond drill samples, trench/channel samples or rock samples. Diamond drilling is generally accepted as the highest quality sample possible for non-bulk sample mineral exploration. Trench/channel samples are representative of intersections at the surface but are regarded as lesser quality than diamond drilling. Trenches referred to in this report were channel sampled using a diamond blade rock saw to cut a channel of consistent width. The rock within this channel was sampled to a consistent depth using a hammer and chisel.
	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	Diamond drill core was marked with sampling intervals by geologists according to geological boundaries and pre-determined minimum and maximum sampling lengths. Trench/channel samples were sampled at a consistent depth and size without bias. All samples are taken at 2-5kg in weight where possible, sealed in plastic bags and then placed in calico bags with waterproof tags to prevent sample contamination. Calibration of assay systems is done by the certified analytical laboratory.
	Aspects of the determination of mineralisation that are Material to the Public Report.	Mineralisation is selected visually by the presence of alteration. Sampling in altered zones is either at approximately 1 metre intervals or determined by the logging geologist. In unaltered areas the rock is sampled at 2 metre intervals and occasionally is not sampled at all if the rock is clearly unaltered and unmineralised.
Drilling techniques	Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type,	All the drilling reported in this document is from diamond core drilling. The majority of core at Purnama has been HQ size, with lesser PQ from surface to 100m depth and rarely NQ, where ground conditions have required core reduction. All drilling is triple tube to minimise sample disturbance.

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Criteria	JORC Code explanation	Commentary
	whether core is oriented and if so, by what method, etc.).	Until recently drilling has been conducted only with heli-portable rigs. As mining in the Purnama Open Pit progressed, an increasing number of drill sites were placed next to mining access roads. Where appropriate, a down hole core orientation tool is used to gather detailed structural information. The tool used is an Asahi Orishot Procore orientation device. PQ, HQ and NQ sizes are kept on site.
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed.	Core recovery is measured during geotechnical logging by comparing the length of recovered core versus the drill run. Drill sample recovery at Martabe is dependent on lithology, alteration type and structure. Overall the drill recovery has been very good. The table below shows historical averages for drill recovery in different lithologies for the Purnama deposit.
	Measures taken to maximise sample recovery and ensure representative nature of the samples.	Drilling uses a triple tube recovery system to maximise core recovery. In areas where core loss is a concern, i.e. more fractured Fe rich intervals, drill runs are limited to 0.20m. Efforts are made to minimise the loss of drilling fluids downhole, wherever possible.
	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.	A substantial body of test work has been completed at Martabe on loss of gold from the fine fractions during sampling and drilling. This suggests that there is a no significant if any loss of gold from fine fractions. In the event there is significant sample loss in a mineralised zone, these assays are removed from the data set at the stage of Resource Estimation.

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Criteria	JORC Code explanation	Commentary
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.	All diamond drill holes were logged for geology and geotechnical features. Geotechnical logging was done by trained technicians under the supervision of geologists. Geotechnical logging includes measurements of drill run length, core recovery, RQD, Fracture count and fracture characteristics. Geological logging was done by geologists on hand written logging sheets, which were transcribed into the GBIS data entry platform. Logged characteristics include (but are not limited to) assay markup interval, lithology, structure, breccia type, alteration type and intensity, and mineralisation style(s) and intensity. Geological logging was undertaken by a relatively small team of geologists. The reproducibility of the geological logging was checked by senior geologists on a routine basis and these checks revealed that a high level of consistency was achieved. The logging geologists were involved in the interpretation process, ensuring that there was consistency between logging and interpretation. All core was digitally photographed after logging and before cutting and sampling.
	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.	Visual geological and alteration logs were taken by a team of experienced geologists using a standardised logging scheme. Although visual logs are inherently qualitative, additional quantitative measurements of core are also taken routinely and are included in the interpretation of logged data. These include RQD measurements, SWIR analysis, and magnetic susceptibility measurements. These are all measured on a metre by metre basis.
	The total length and percentage of the relevant intersections logged.	The drill holes and trenches logged at each prospect are detailed in the report text. All of these holes have been logged, and only rarely (such as from geotechnical holes in barren volcanics or sediments outside the mineralised zone) were samples not sent for assay.
Sub-samplin g techniques	If core, whether cut or sawn and whether quarter, half or all core taken.	Core was cut into halves using a diamond blade core- saw, with one half sampled and one half retained. Quarter core samples were only taken on rare occasions (e.g. for metallurgical sampling).

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Criteria	JORC Code explanation	Commentary
and sample preparation	If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.	N/A
	For all sample types, the nature, quality and appropriateness of the sample preparation technique.	Samples are placed into sealed plastic bags with an internal tag, and then into numbered calico bags for delivery to the PT Intertek Utama sample preparation facility at Padang. The process for sample preparation is as follows: Drying Samples are placed onto aluminum trays and dried at 65°C. If samples are specified for low temperature drying or if Hg assay is requested then samples are dried at low temperature of < 65°C Crushing Crush samples using a Jaw Crusher. Jaw plates are cleaned after each sampling routine using a gravel wash. Jaw crusher size result < 5mm Pulvurising Use LM5, RM2000 and LM2 pulverize techniques employed depending on sample size. Samples pulverised to 200# (200# > 95%) Sizing tests performed 1/20 on each pulverize Bowls cleaned between each sample routine using a gravel wash.

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Criteria	JORC Code explanation	Commentary
		Rolling/Mixing The pulverized sample is then rolled/mixed in a rubber mat for a minimum of 20 times. Rubber mat cleaned thoroughly between samples. Splitting Riffle splitter used to split an analytical pulp sample of approximately 250g to be sent to Jakarta for analysis. Residue and Coarse rejects placed in a plastic bag and return to G-Resources. Thorough reporting is carried out throughout the process and G-Resources deems the sample preparation techniques appropriate and of sufficient quality.
	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.	On average core was sampled at approximately 1m intervals through mineralised zones and 2-4m intervals through suspected zones of mineralised waste. Core was cut in half with a diamond saw, with half sampled and half retained for reference. Duplicate sampling of crushed was done by the laboratory with splits taken for their QA/QC process according to their procedures. The company takes duplicates on a campaign basis: these being either coarse reject or pulp sub-samples.
	Whether sample sizes are appropriate to the grain size of the material being sampled.	Studies of the Purnama deposit have demonstrated the fineness of gold observed in samples from Martabe. These show that approximately 73% of gold particles in samples are in the <5μm fraction, with a further 26% in the 5-50μm fraction, and less than 1% of gold particles exceeding the 50μm size fraction. Having said this, sample sizes are cautiously large; to ensure that samples remain representative and any nugget effects of gold are minimised.

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Criteria JORC Code explanation Commentary Quality of The nature, quality and appropriateness of the Assaying was conducted at the PT Intertek Utama facility in Jakarta. The standard assaying suite assay data assaying and laboratory procedures used and used is shown in the table below: and whether the technique is considered partial or laboratory total. tests

A suite of additional elements was assayed by ICP. A four acid (HCL, HNO3, HCLO4, HF) digest was used to ensure liberation of elements locked in silicate matrices. The full table of assayed elements with their associated detection limits is presented below:

==> picture [391 x 121] intentionally omitted <==

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Criteria	JORC Code explanation	Commentary
	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.	An ASD Terraspec 3 VIR/SWIR spectrometer was acquired in early 2013. Routine sampling of core has been conducted since and provides a guide to alteration assemblages used in deposit scale modelling. Sample acquisition is set to take an average of 50 samples per reading, 100 sample average for white reference calibration. White reference calibration is performed once in every 20 readings taken on a standard spectralon panel obtained from ASD. Interpretation of spectra uses the TSG software for initial interpretation, but 100% of readings taken are visually checked and corrected by a trained operator. Drillcore measurements are made on a per-metre basis on all drillcore. Two Terraplus KT-10 magnetic susceptibility meters are in use, and routine collection of data from drillcore is employed. The machines are factory calibrated in accordance with the manufacturers guidelines. Sample measurements are taken on a per metre basis and interpreted both on site, and with verification from outside geophysical contractors. Standard collection SOPs are used to eliminate outside influence on magnetic susceptibility readings. A hand held XRF unit is sometimes used to confirm visual identification of minerals, especially fine grained copper bearing minerals which can be difficult to distinguish from pyrite. These interpretation of these results are recorded as mineral types in core logs but the numerical results are not used for any other purpose. Calibration is done according to the manufacturers specifications. Other direct measurement geophysical tools have been used on site, to compare drill results against predicted geophysical models, however these have been on a campaign basis and wholly operated by outside geophysical contractors.

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Criteria	JORC Code explanation	Commentary
	Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	Quality assurance was conducted in these ways: An ongoing QA/QC program was conducted using blind samples which included blank samples and certified reference standards. Only certified laboratories were used Assay laboratories used for Resource Estimation work were audited by PTAR every two years.QA/QC Program PTAR has a suite of certified and non-certified standards (“Standards”) covering a range of grades and elements (including Au, Ag and Cu but not sulphide sulphur). Certified standards, sourced from Geostat Pty Ltd and Ore Research and Exploration (OREAS) Pty Ltd, were submitted as part of this campaign. Either a Standard or Blank was inserted at the rate of 1 in every 20 samples. Overall PT Intertek Utama performed very well with these standards, with the few anomalies observed considered likely due to mislabeling or data mismatching errors. These were corrected after receipt of the final assay results (usually within six weeks of sample submission).
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel.	Significant intersections quoted in this report were verified by Mr. Janjan Hertijana, MAusIMM and full time employee of the Company.
	The use of twinned holes.	A large number of ‘scissor” intersections are available which provide short range validation of geological models and geostatistical parameters. Twinned holes have been drilled in the past to collect samples for metallurgical test work.

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Criteria	JORC Code explanation	Commentary
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	All sample collection data, geological logging, borehole location and laboratory analysis results are retained and archived. All data is backed up with both a daily full SQL backup, and a weekly compilation. Monthly downloads to DVD are stored in a separate location to database hardware. Data entry and QA/QC are managed in-house by an experienced database manager.
	Discuss any adjustment to assay data.	No adjustments to assay data are made.
Location of data points	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	Diamond drill hole collar locations were located through Total Station. Most surveys were completed by a contracted licensed surveyor. Later surveys have been undertaken by a PTAR mine surveyor in some cases. Collar survey positions were validated by senior geologists before being entered into the SQL database. Down hole measurements have been conducted exclusively with electronic survey tools, consisting of a magnetic compass and inclinometer with electronic reading. Surveys were taken at 20m below the collar, and then at 50 metre depths down the hole (i.e. 50m, 100m 150m and so on until end of hole).
	Specification of the grid system used.	The grid system employed is UTM (WGS84) Zone 47N.
	Quality and adequacy of topographic control.	A LIDAR survey was conducted by PT Surtech Utama Indonesia in June 2010. The survey covered an area of 13,600 ha surrounding the Martabe project area. Data capture was at nominal point density of more than 2 points per square metre. The Lidar survey accuracy was measured with post processed kinematics GPS survey using approximately 30 points at one location. The error between the two methods was found to be within 5cm. Processed data was produced to a grid at 0.15cm spacing. The data was presented to PTAR as ASCII files suitable for creation of a digital terrain model, and as rectified, georeferenced orthophotos. Lidar does not completely penetrate vegetation and this can lead to elevation inaccuracies in

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Criteria	JORC Code explanation	Commentary
		densely forested areas, such as the original surface of the Purnama deposit. The LIDAR surface may have greater elevation than the actual ground surface (up to several metres in places), however this accuracy is adequate for the purpose of constructing Mineral Resource Estimates.
Data spacing and distribution	Data spacing for reporting of Exploration Results.	Drill holes were completed on nominal E-W sections, spaced at the following approximate intervals in the vertical and horizontal planes: Measured Resources: 25 metre spacing or less Indicated Resources: 25 metre by 50 metre Inferred Resources: 50 metre by 50 metre
	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.	The data spacing and distribution is sufficient to establish geological and grade continuity. This has been established by variography and by comparing the results of drilling against close spaced grade control drilling in the Purnama Deposit.
	Whether sample compositing has been applied.	Sample compositing has not been applied before the process of Resource Estimation, where sample results are mathematically composited into appropriate lengths for the element being estimated.
Orientation of data in relation to geological	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.	Sample orientation is placed where possible to be perpendicular to the strike of mineralisation. Steep topography means that sampling may not be perpendicular to the dip of mineralisation. Scissored holes and more recently horizontal capable drill rigs have been used to overcome sampling bias.

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Criteria	JORC Code explanation	Commentary
structure	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.	Where possible, drilling has attempted to intersect structures as close to normal to the structures strike extension as possible. It is not considered that bias has been introduced by this practice.
Sample security	The measures taken to ensure sample security.	Sample security was controlled through supervision of the diamond samples on the drill rigs, security controls in the core shed, and through controls on transportation of samples to a commercial assay preparation area off-site. In 2011, security staff at the Martabe Gold Mine completed a review of security related to exploration sample handling. This review did not find significant issues in the security arrangements of core handling.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	Reviews of the exploration program (including sampling techniques and data) were held as follows: During and after the estimation process: internal reviews of the geological modelling and estimation processes were held on a regular basis. Independent consultants in specialist areas provided advice as appropriate (for example QA/QC evaluation prior to resource estimation). The results were documented as minutes of meetings and consulting reports. Every two years: an independent, expert review of the systems and processes relating to the Exploration programme and Mineral Resource Estimation Process were conducted. The last such review was completed in August 2014 by an independent consultant. The review consisted of 5 days onsite at the Martabe Gold Mine, where the consultant examined aspects of the operation dealing with exploration, geological interpretation, sample handling, and exploration staff skills and competency. Areas for improvement were noted regarding some ongoing operational aspects of the resource development program. These have been addressed and do not affect the

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Criteria	JORC Code explanation	Commentary
		issue or underlying quality of this report.
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 Martabe Gold Mine is located in the Martabe Contract of Work (“CoW”) area. This “Generation 6” CoW was signed in 1997 and provides for a minimum 30 years tenure after production has commenced. The Martabe Gold Mine was fully permitted at the time of writing. Under Indonesian laws this includes water discharge permits for treated mine runoff and process waters, rent use permit of forest and environment permit for exploration activities, various environmental, operation and production approvals, and gold and silver bullion export permits amongst other permits and approvals.
Exploration done by other parties	Acknowledgment and appraisal of exploration by other parties.	The Martabe deposits were discovered in 1997-98 during a regional reconnaissance exploration program conducted by a joint venture between Normandy and Anglo Gold Corporation. A bulk leach extractable gold (BLEG) stream sediment survey located the Martabe cluster of deposits. Three deposits were initially identified, including the Purnama deposit. Surface exploration work included mapping, rock and soil sampling. Drilling commenced in October 1998 and the potential of the Purnama Deposit was quickly recognised. Multiple phases of exploration up to delineation drilling were continued throughout several ownership changes. A high level of continuity and work quality has been maintained over the project life.
Geology	 Deposit type, geological setting and style of mineralisation.	The general geology of the Martabe Deposits Martabe Region and the district surrounding Martabe is well described by Harlan et al (2005) and Supoto et al (2003).

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Criteria	JORC Code explanation	Commentary
Drill hole Information	 A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length	Refer to Appendix 1 of this report for details of all drilling relevant to these exploration results. All new significant drilling results for the period of October 2014 to 15 July 2015 within the areas under discussion are supplied in this Appendix.
Data aggregation methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.	Refer to Appendix 1 for details.
	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.	Refer to Appendix 1 for details.
	The assumptions used for any reporting of metal equivalent values should be clearly stated.	Metal equivalent values are not reported.

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Criteria	JORC Code explanation	Commentary
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).	Figures in the main text explain the geometry between drill holes and the orientation of mineralisation. All figures reported are down hole and not true widths, as explicitly stated in Appendix 1.
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Refer to Figures in the main text.
Balanced reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	All material drill intersections are reported in Appendix 1 for the areas under discussion in this report.
Other substantive exploration	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical	Details are reported in the main text.

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Criteria	JORC Code explanation	Commentary
data	survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
Further work	The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).	Details are reported in the main text.
	Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	Details are reported in the main text.

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