GALILEO MINING LTD — Capital/Financing Update 2018

Aug 28, 2018

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29 August 2018 ASX: GAL

HIGH GRADE COBALT CONFIRMED AT NEW PROSPECT

Corporate Directory

Directors

Non-Executive Chairman Simon Jenkins

Managing Director Brad Underwood

Technical Director Noel O’Brien

Highlights

• First assay results from exploration drilling confirm a new zone of shallow cobalt mineralisation at the Norseman Cobalt Project

• Highlights from RC drilling completed at the Goblin prospect include:

• 3m @ 0.38% Co from 18m (NRC115)

• 9m @ 0.10% Co from 12m (NRC108)

• 3m @ 0.19% Co from 33m (NRC100)

• 21m @ 0.09% Co from 39m (NRC113)

Fast Facts

Fast Facts
Issued Capital	120.4m
Share Price	$0.25
Market Cap	$30.1m
Cash (30/06/18)	$11.3m
Enterprise Value	$18.8m

Projects Norseman Cobalt Project Fraser Range Nickel Project

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Contact Details

E: info@galmining.com.au W: www.galileomining.com.au

• 12m @ 0.10% Co from 45m (NRC129)

• Extensive mineralisation continuous over 2 kilometres of strike and open at the southern end

• Second round of RC drilling due to commence in early September

Galileo Mining (ASX: GAL, “Galileo” or the “Company”) is pleased to announce assay results from initial reverse circulation (“RC”) drilling at the Norseman Cobalt Project in the Goldfields region of Western Australia confirm the presence of high-grade, shallow, cobalt mineralisation.

RC Drilling at the Goblin prospect, located 3 kilometres south of Galileo’s main resource at Norseman, has identified an extensive zone of cobalt mineralisation over 2 kilometres in strike length (Figure 1).

Cobalt was intercepted at shallow depths between 12 and 60 metres below surface with mineralisation analogous to the Company’s existing JORC resources at Norseman.

Galileo Managing Director Brad Underwood said the results from the first round of the Company’s recent exploration drilling were highly encouraging, supporting the prospect of additional cobalt resources at Norseman.

“Our first exploration drilling program at Norseman has demonstrated that significant zones of cobalt mineralisation exist outside of our current JORC resources.”

“These first results are a good indication that further discoveries may exist at our Norseman Cobalt Project. With our second exploration drilling program due to begin in early September we hope to deliver more positive results over the coming months.” Mr Underwood said.

The initial exploration results cover 58 RC drillholes completed at the Goblin prospect for a total of 3,163 metres. A further 79 RC drillholes for a total of 4,124 metres were drilled in the first program with assay results from this drilling expected over the coming weeks. The drillholes were primarily aimed at identifying cobalt mineralisation in order to expand the current JORC resource base. A second round of RC drilling is scheduled to commence on the 4[th] of September with results from this program expected in early October. The second round of RC drilling will be a combination of infill drilling at the Goblin prospect as well as new drilling at the Mission Sill prospect.

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Figure 1- Goblin Prospect showing RC Drillhole locations and boundary of 0.06% Cobalt mineralisation projected to surface. Cobalt intercepts were recorded at shallow depths between 12 and 60 metres. The prospect extends over 2 kilometres and is open to the south.

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Technical Discussion

Cobalt mineralisation was intercepted at the Goblin prospect at the boundary between the upper and lower saprolite typically found between 12 and 40 metres below surface. The location of cobalt fits with Galileo’s exploration model for new deposits at Norseman which anticipates the development of a supergene cobalt oxide layer above weathered ultramafic rocks. Surface indications may be limited to ferricrete and/or anomalous cobalt in soil results however in some instances few surface indications are present due to transported soil cover. Prospects have been developed using a combination of surface indicators and magnetic imagery representing the underlying formative geology.

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Figure 2 –Location plan for the Norseman Cobalt Project showing existing resources and prospects

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Appendix 1: Goblin RC Drillhole Collar Locations

Hole	Easting	Northing	RL	Dip	Azimuth	Depth
NRC080	371950	6445900	387.5	‐90	vertical	66
NRC080	371950	6445900	387.5	‐90	vertical	66
NRC081	371850	6445900	382.5	‐90	vertical	83
NRC082	371800	6445900	377.5	‐90	vertical	72
NRC083	371750	6445900	375	‐90	vertical	78
NRC084	371700	6445900	375	‐90	vertical	79
NRC085	371650	6445900	372.5	‐90	vertical	66
NRC086	371550	6445900	368	‐90	vertical	68
NRC087	371450	6445900	370	‐90	vertical	63
NRC088	371500	6445735	370	‐90	vertical	81
NRC089	371570	6445751	375	‐90	vertical	66
NRC090	371662	6445754	372.5	‐90	vertical	76
NRC091	371700	6445750	375	‐90	vertical	66
NRC092	371750	6445750	375	‐90	vertical	60
NRC093	371800	6445750	378	‐90	vertical	48
NRC094	371850	6445750	382.5	‐90	vertical	42
NRC095	371850	6445600	382.5	‐90	vertical	36
NRC096	371650	6445600	380	‐90	vertical	42
NRC097	371500	6445400	372.5	‐90	vertical	48
NRC098	371550	6445400	375	‐90	vertical	54
NRC099	371600	6445400	377.5	‐90	vertical	48
NRC100	371650	6445400	380	‐90	vertical	36
NRC101	371700	6445400	382.5	‐90	vertical	42
NRC102	371750	6445400	385	‐90	vertical	42
NRC103	371850	6445400	390	‐90	vertical	36
NRC104	371800	6445400	387.5	‐90	vertical	42
NRC105	371550	6445200	380	‐90	vertical	48
NRC106	371600	6445200	385	‐90	vertical	60
NRC107	371650	6445200	380	‐90	vertical	48
NRC108	371800	6445200	390	‐90	vertical	60
NRC109	371750	6445200	385	‐90	vertical	48

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Hole	Easting	Northing	RL	Dip	Azimuth	Depth
NRC110	371700	6445200	382.5	‐90	vertical	48
NRC111	371500	6445000	377.5	‐90	vertical	42
NRC112	371550	6445000	380	‐90	vertical	48
NRC113	371600	6445000	382.5	‐90	vertical	72
NRC114	371650	6445000	385	‐90	vertical	60
NRC115	371700	6445000	387.5	‐90	vertical	60
NRC116	371750	6445000	391	‐90	vertical	60
NRC117	371800	6445000	395	‐90	vertical	60
NRC118	371550	6444800	380	‐90	vertical	54
NRC119	371450	6444800	377.5	‐90	vertical	54
NRC120	371450	6444600	380	‐90	vertical	42
NRC121	371500	6444600	382.5	‐90	vertical	31
NRC122	371550	6444600	385	‐90	vertical	30
NRC123	371600	6444600	390	‐90	vertical	36
NRC124	371650	6444600	392.5	‐90	vertical	66
NRC125	371700	6444600	395	‐90	vertical	67
NRC126	371750	6444600	397	‐90	vertical	47
NRC127	371800	6444600	395	‐90	vertical	42
NRC128	371800	6444400	401	‐90	vertical	56
NRC129	371750	6444400	399	‐90	vertical	66
NRC130	371700	6444400	396	‐90	vertical	60
NRC131	371650	6444400	395	‐90	vertical	66
NRC132	371650	6444200	395	‐90	vertical	60
NRC133	371700	6444200	397.5	‐90	vertical	54
NRC134	371750	6444200	400	‐90	vertical	36
NRC135	371800	6444200	404	‐90	vertical	47
NRC136	371700	6444000	397.5	‐90	vertical	47
NRC137	371750	6444000	401	‐90	vertical	48

Easting and Northing coordinates are GDA94 zone 51.

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Appendix 2: Goblin Prospect Significant Drilling Results

Hole ID	From (m)	To(m)	Interval	Co (%)	Ni (%)	Mn (%)	Fe (%)
NRC 088	24	30	6	0.1	0.47	1.07	16
NRC 092	15	21	6	0.1	0.36	0.56	14
NRC 100	33	36	3	0.19	0.19	5.58	11
NRC 102	36	39	3	0.12	0.36	1.06	22
NRC 105	21	24	3	0.11	0.33	1.59	13
NRC 108	12	21	9	0.1	0.4	0.48	15
NRC 113	39	60	21	0.09	0.28	0.4	11
NRC 115	18	21	3	0.38	0.4	0.89	20
NRC 116	21	33	12	0.09	0.32	0.72	19
NRC 117	12	15	3	0.08	0.4	1.12	12
NRC 117	18	21	3	0.1	0.35	0.87	10
NRC 123	33	36	3	0.08	0.36	0.31	11
NRC 124	42	48	6	0.09	0.33	0.54	14
NRC 125	33	39	6	0.08	0.26	0.55	12
NRC 126	24	33	9	0.12	0.36	0.88	14
NRC 128	18	21	3	0.08	0.32	0.58	18
NRC 128	24	27	3	0.08	0.33	0.52	18
NRC 129	33	39	6	0.1	0.38	0.7	14
NRC 129	45	57	12	0.1	0.27	0.56	21
NRC 130	30	36	6	0.08	0.39	0.62	17
NRC 131	27	36	9	0.09	0.42	1.25	20
NRC 131	39	42	3	0.08	0.33	0.27	11
NRC 132	24	33	9	0.1	0.43	0.67	17
NRC 136	12	15	3	0.18	0.13	4.81	35
NRC 136	33	39	6	0.11	0.17	1.12	33
NRC 137	12	18	6	0.13	0.39	0.52	17

Based on 3m Composite Assay results, 0.08% Co lower cut, no dilution applied, no rounding applied.

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Competent Person Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Brad Underwood, a Member of the Australasian Institute of Mining and Metallurgy, and a full time employee of Galileo Mining Ltd. Mr Underwood has sufficient experience that is relevant to the styles of mineralisation and types 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” (JORC Code). Mr Underwood consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Investor information: visit www.galileomining.com.au or email: info@galmining.com.au

Media: David Tasker Managing Director Chapter One Advisors E: dtasker@chapteroneadvisors.com.au T: +61 433 112 936

About Galileo Mining:

Galileo Mining Ltd (ASX: GAL) is focussed on the exploration and development of cobalt and nickel resources in Western Australia. GAL holds tenements near Norseman with over 22,000 tonnes of contained cobalt, and 106,000 tonnes of contained nickel, in JORC compliant resources (see Figure 5 below). GAL also has Joint Ventures with the Creasy Group over tenements in the Fraser Range which are prospective for nickel-coppercobalt deposits.

Figure 4: JORC Mineral Resource Estimates for the Norseman Cobalt Project (“Estimates”) (refer to ASX “Prospectus” announcement dated May 25[th] 2018 and accessible at http://www.galileomining.com.au/investors/asx-announcements/). Galileo confirms that all material assumptions and technical parameters underpinning the Estimates continue to apply and have not materially changed).

Cut‐off Co, ppm	Class	Tonnes Mt	Co	Co	Ni	Ni	Mn %
			%	Kt	%	Kt
MT THIRSTY SILL
600	Indicated Inferred Total	10.5 2.0 12.5	0.12 0.11 0.11	12.1 2.2 14.3	0.58 0.51 0.57	60.8 10.2 71.1	0.71 0.71 0.71
1,000	Indicated Inferred Total	5.2 0.8 6.0	0.15 0.15 0.15	8.0 1.2 9.2	0.64 0.52 0.62	32.9 4.1 37.0	1.01 1.09 1.02
MISSION SILL
600	Inferred	7.7	0.11	8.2	0.45	35.0	0.80
1,000	Inferred	2.8	0.15	4.4	0.47	13.4	1.20
TOTAL JORC COMPLIANT		RESOURCES
600		20.2	0.11	22.5	0.53	106.1	0.74
1,000		8.8	0.15	13.6	0.57	50.4	1.08

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Appendix 1:

Galileo Mining Ltd – Norseman Cobalt Project JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data

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

Criteria	JORC Code explanation	Commentary
Sampling techniques	 Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.  Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.  Aspects of the determination of mineralisation that are Material to the Public Report.  In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	Reverse Circulation (RC) drilling, was used to obtain one metre individually bagged chip samples. Each RC bag was spear sampled to provide a 3 metre representative composite sample for analyses. Resampling at 1m intervals will be undertaken on anomalous cobalt samples. QAQC standards (blank & reference) and duplicate samples were included routinely with 1 per 20 samples being a standard or duplicate. Samples were sent to an independent commercial assay laboratory. All assay sample preparation comprised oven drying, jaw crushing, pulverising and splitting to a representative assay charge pulp. A four acid digest was used for a multi- element analysis suite including Ag, Al, As, Ba, Be, Bi, Ca, Cd, Co, Cr, Cs, Cu, Fe, Ga, Ge, Hf, In, K, Li, Mg, Mn, Mo, Na, Nb, Ni, P, Pb, Rb, Re, S, Sb, Sc, Se, Sn, Sr, Ta, Te, Th, Ti, Tl, U, V, W, Y, Zn, Zr by ICP-MS or ICP-OES for all samples.
Drilling techniques	 Drill type (eg core, reverse circulation, open- hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face- sampling bit or other type, whether core is oriented and if so, by what method, etc).	RC drilling was undertaken using a 5 ½ “drill bit completed by Red Rock Drilling Pty Ltd.
Drill sample recovery	 Method of recording and assessing core and chip sample recoveries and results assessed.  Measures taken to maximise sample recovery and ensure representative nature of the samples.  Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	Sample recoveries are visually estimated for each metre with poor or wet samples recorded in drill and sample log sheets. The sample cyclone was routinely cleaned at the end of each 6m rod and when deemed necessary. No relationship has been determined between sample recoveries and grade and there is insufficient data to determine if there is a sample bias.
Logging	 Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral	Geological logging of drill holes included lithology, grainsize, mineralogy, colour and weathering.

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	Criteria	JORC Code explanation	Commentary
		Resource estimation, mining studies and metallurgical studies.  Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.  The total length and percentage of the relevant intersections logged.	Logging of drill chips is qualitative and based on the presentation of the 1m samples in the chip trays. All drill holes were logged in their entirety.
	Sub-sampling techniques and sample preparation	 If core, whether cut or sawn and whether quarter, half or all core taken.  If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.  For all sample types, the nature, quality and appropriateness of the sample preparation technique.  Quality control procedures adopted for all sub- sampling stages to maximise representivity of samples.  Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.  Whether sample sizes are appropriate to the grain size of the material being sampled.	All RC drill samples were collected using a PVC spear as 3m composites (2-3kg). Other composites of 2m and 4m and individual 1m samples were collected where required ie, at the bottom of hole. The samples were dried and pulverised before analysis. QAQC reference samples and duplicates were routinely submitted with each batch. The sample size is considered appropriate for the mineralisation style, application and analytical techniques used.
	Quality of assay data and laboratory tests	 The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.  For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.  Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	RC chip samples were analysed for a multi-element suite (44 elements) by ICP-MS or ICP-OES following a four acid digest. The assay methods used are considered appropriate. QAQC standards and duplicates were routinely included at a rate of 1 per 20 samples. Further internal laboratory QAQC procedures included internal batch standards and blank.s Sample preparation was completed at Intertek Genalysis Laboratory, (Kalgoorlie) with digest and assay conducted by Intertek Genalyis Laboratory Services (Perth) using a four acid (4A/OM10) for multi-element.
	Verification of sampling and assaying	 The verification of significant intersections by either independent or alternative company personnel.  The use of twinned holes.  Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.  Discuss any adjustment to assay data.	Field data was collected on site using a standard set of logging templates entered directly into a laptop. Data was then sent to the Galileo database manager for validation and upload into the database. Assays as reported from the laboratory and stored in the Company database have not been adjusted in any way.
	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.	Drill hole collars are surveyed with a handheld GPS with an accuracy of +/- 5m which is considered sufficient for drill hole location accuracy.

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	Criteria	JORC Code explanation	Commentary
		 Specification of the grid system used.  Quality and adequacy of topographic control.	Co-ordinates are in MGA94 datum, zone 51. Topographic control has an accuracy of 2m based on detailed satellite imagery derived DTM.
	Data spacing and distribution	 Data spacing for reporting of Exploration Results.  Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.  Whether sample compositing has been applied.	Drill hole spacing for the individual drill holes was based on a 200m by 50m grid pattern, a 400m by 50m grid pattern, or on spot locations between drill lines. Depending on the assessment of the drill data it is expected that drilling on a 200m by 50m grid pattern and on a 400m by 50m grid pattern may be adequate to establish an inferred resource based on the style of mineralisation intercepted. Drillholes were samples on a 3m composite basis or as 1m, 2m or 4m samples at the end of the hole as required. Where anomalous values are returned 1m samples mayl be submitted for assay.
	Orientation of data in relation to geological structure	 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.  If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	It is unknown whether the orientation of sampling achieves unbiased sampling of possible structures as the mineralisation is hosted in soft regolith material with no measurable structures recorded in drill core. The mineralisation occurs in highly weathered regolith material and no structures have been recorded from drilling. Given the nature of mineralisation it is thought that the geometry is best described as horizontal or sub- horizontal however no quantitative measurements exist and all drill intercepts are reported as down hole length, true width unknown.
	Sample security	 The measures taken to ensure sample security.	Each sample was put into a tied off calico bag and then several placed in a large plastic “polyweave” bag which was zip tied closed. For transport, sampled were placed on wooden pallets inside plastic “polyweave” “Bulk Bags” ensuring no loss of material. Samples were delivered directly to the laboratory in Kalgoorlie by Galileo’s freight contractor.
	Audits or reviews	 The results of any audits or reviews of sampling techniques and data.	Continuous improvement reviews of sampling techniques and procedures are ongoing. No external audits have been performed.

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Section 2 Reporting of Exploration Results

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

(Criteria listed in	the preceding section also apply to this section.)
Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	 Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.  The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	The Norseman Cobalt Project comprises two granted exploration licenses and one granted prospecting license covering 257km2, and 17 prospecting license applications covering 20.7 km2 All tenements within the Norseman Cobalt Project are 100% owned by Galile.o The Norseman Cobalt Project is centred around a location approximately 10km west of Norseman on vacant crown land. All tenements in the Norseman Cobalt Project are 100% covered by the Ngadju Native Title Determined Claim. The tenements are in good standing and there are no known impediments.
Exploration done by other parties	 Acknowledgment and appraisal of exploration by other parties.	NA
Geology	 Deposit type, geological setting and style of mineralisation.	The target geology and mineralisation style is supergene cobalt-nickel mineralisation occurring within highly weathered regolith material. The underlying unweathered lithology is dominated by ultramafic to mafic intrusive and volcanic, typically orthocumulate to mesocumulate peridotite and pyroxenite rocks. Variable serpentinization has been recorded where fresh rock has been encountered.
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.  If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.	Refer to drill hole collar and intercept reporting table in the body of the report

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	Criteria	JORC Code explanation	Commentary
	Data aggregation methods	 In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.  Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.  The assumptions used for any reporting of metal equivalent values should be clearly stated.	Weighted averaging has been used, based on the sample interval, for the reporting of drilling results. Aggregation procedures are described in the footnotes to the drill hole intercept table in the body of the report.
	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 (eg ‘down hole length, true width not known’).	The mineralisation occurs in highly weathered regolith material and no structures have been recorded from drill core. Given the nature of mineralisation it is thought that the geometry is best described as horizontal or sub- horizontal however no quantitative measurements exist and all drill intercepts are reported as down hole length, true width unknown.
	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.	Project location map and plan map of the resource with respect to the metallurgical holes drilled has been included along with accurate hand-held GPS drill hole collar location (Garmin GPS 78s)+/-5m in X/Y/Z dimensions.
	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 significant results are reported.
	Other substantive exploration data	 Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	All meaningful and material results have been reported.
	Further work	 The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).  Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	Anomalous cobalt composite samples will be sent for analysis on a 1m interval basis. Resource assessment will be undertaken by an independent Galileo contractor and more drillholes may be completed if required to establish a JORC compliant resource.

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