GATEWAY MINING LIMITED — Capital/Financing Update 2019

Jul 24, 2019

ABN: 31 008 402 391 Level 11, 52 Phillips Street Sydney NSW 2000 GPO Box 225 Sydney NSW 2001 Tel: 61 2 8316 3998 Fax: 61 2 8316 3999 Website: www.gatewaymining.com.au

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ASX Announcement: 25 July 2019

NEW SHALLOW, HIGH-GRADE INTERCEPT OPENS UP SIGNIFICANT EXTENSION OF MONTAGUE GOLD DEPOSIT Recent RC drilling encounters thick high-grade zone to the south of known mineralisation, showing that Montague is continuing to develop into a large-scale gold system

HIGHLIGHTS

• Recent reverse circulation (RC) drilling has intersected thick, high-grade gold mineralisation in a position that has strong potential to develop into an important southern extension of the Montague Gold Deposit at the Gidgee Gold Project in WA. The key result from this program was[1] :

▪ GRC380 9.0 metres @ 5.2g/t Au from 72 metres

• The result correlates with earlier drilling which has outlined an emerging zone of high-grade mineralisation on the western down-dip margin of the deposit, including:

• GRC357 5.0 metres @ 11.5g/t Au from 104 metres*

• ▪ GRC342 9.0 metres @ 4.24g/t Au from 89 metres ▪ GRC325 5.0 metres @ 4.81g/t Au from 70 metres**

• *Previously reported

• This demonstrates that the mineralisation at the Montague Gold Deposit remains totally open along strike to the south, and highlights the potential for major down-dip extensions.

• The information gained from the wider RC and diamond drilling program has:

• Identified the structural controls of the high-grade mineralisation, including a post-mineralisation offsetting fault. This will now allow for greater efficiency in targeting ongoing drilling programs;

• Highlighted the benefits of drilling beneath shallow, modest historical intersections; and

• Identified a series of new, untested target trends that are parallel to the currently defined zone of gold mineralisation.

• The new results are being incorporated into the interim resource modelling process that is currently underway for the Whistler and Montague Deposits, while also demonstrating the significant exploration potential at the Gidgee Project beyond the upcoming maiden Resource estimate.

Gateway Mining Limited (ASX: GML) ( Gateway or Company ) is pleased to advise that it has identified a significant southern extension of the Montague Gold Deposit, within its 100%-owned Gidgee Gold Project in Western Australia (Figure 3), after receiving further assay results from the most recent drilling program at the project.

The latest results, which follow the extensional drilling success reported recently at the Whistler Gold Deposit (see ASX announcement, 15 July 2019), continue to demonstrate the substantial exploration upside at the Gidgee Project and the potential for both cornerstone deposits to evolve into large-scale gold systems.

The most recent drilling has encountered a zone of thick, high-grade mineralisation immediately down-dip of previous drilling, opening up a highly prospective trend to the south for follow-up exploration and resource assessment.

1 See Table 1 and Appendix 1 for details

KEY POINTS

• A program of targeted RC drilling was completed to test for near-surface extensions of the Montague Deposit gold mineralisation, and also to identify the potential for additional high-grade trends within the broader mineralised envelope (Figures 1 and 2).

• The drilling program has highlighted the potential for thick, high-grade mineralisation to extend for a considerable distance to the south and down-dip of the currently defined mineralised zone at Montague. In fact, the southern and down-dip extensions remain fully open and untested.

• Results from this recent program of RC drilling are:

• GRC380 9.0 metres @ 5.2g/t Au from 72 metres

• ▪ GRC381 2.0 metres @ 0.8g/t Au from 85 metres; within wider shear zone ▪ GRC379 Wide shear zone intersected at 52m; anomalous gold results to 0.3g/t

• The intercept in GRC380 correlates with previously reported high-grade intercepts on the southern margin of the deposit shown below. This provides further evidence of a significant and emerging trend of high-grade mineralisation to the south of the deposit:

• GRC357 5.0 metres @ 11.5g/t Au from 104 metres

• ▪ GRC342 9.0 metres @ 4.24g/t Au from 89 metres ▪ GRC325 5.0 metres @ 4.81g/t Au from 70 metres

• GRC379 and GRC381 were both drilled as a first-pass test targeting large step-out positions to the north and south of Montague. Both intersected the targeted shear zone and, despite only returning anomalous assay results, provide important information regarding the geometry and trend of the main mineralised zones. With an enhanced understanding of the plunge controls of the mineralisation, the Company will be in a better position to accurately and cost effectively target the shear zone with view to identifying high-quality mineralisation.

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Figure (1): Montague Gold Project – Plan Projection of Gold Distribution

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Figure (4): Montague Gold Project – Interpreted Cross Section (Looking north)

• Diamond hole GDD016 intersected a position that has been affected by what is now understood to be a late-stage off-setting fault. As a result, the hole did not intersect the main Montague shear zone but returned an intercept of 2m @ 1.1g/t Au from the cross-cutting structure.

• Diamond hole GDD013 was extended to target the deeper Gordon’s Shear Zone some 120m away from the original intersection (GRC330: 4m @ 24.1g/t Au). This hole was also impacted by the presence of the late-stage off-setting fault. Closer-spaced drilling will now target the original intersection to determine the potential of this structure.

• Results from the last four widely-spaced reconnaissance RC holes drilled to the north of Montague will be reported in the near future.

MANAGEMENT COMMENTS

Gateway’s Managing Director, Peter Langworthy, said the high-grade shallow intercept of 9m at 5.2g/t in hole GRC380 was a significant development for the Montague Deposit, opening up the prospective high-grade mineralised corridor to the south, a position that is highly prospective for extensions and potential new discoveries.

“Once again, we have seen the value of drilling beneath relatively modest shallow gold intercepts at the Gidgee Project,” he said. “This is a highly significant result which correlates with previous drilling on the western margins of the deposit and effectively opens up an entirely new area for exploration.

“Following on from our recent drilling success at Whistler, we are now seeing clear potential for both of these cornerstone deposits to develop into large-scale gold systems. We have identified multiple exploration opportunities in and around both deposits and plan to test these targets once we finalise our maiden Resource estimate.”

Peter Langworthy Managing Director

For and on behalf of GATEWAY MINING LIMITED

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Competent Person Statement

The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled or reviewed by Mr Peter Langworthy who is a full-time employee of Gateway Mining Ltd and is a current Member of the Australian Institute of Mining and Metallurgy. Mr Peter Langworthy has sufficient experience, which is relevant to the style of mineralisation and types of deposit under consideration and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Langworthy consents 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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Figure (3): Gidgee Gold Project Location Plan

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APPENDIX (1): TABLE OF SIGNIFICANT DRILLING INTERSECTIONS

Whistler - High-Grade Extensions	Whistler - High-Grade Extensions	Whistler - High-Grade Extensions	Whistler - High-Grade Extensions	Whistler - High-Grade Extensions	Whistler - High-Grade Extensions	Whistler - High-Grade Extensions	Whistler - High-Grade Extensions	Whistler - High-Grade Extensions	Whistler - High-Grade Extensions
Hole ID	Hole Type	MGA_E	MGA_N	RL	Dip	Azi	EOH (m)	From (m)	To (m)	Width (m)	Au (g/t)
GRC379	RC	750,920	6,966,740	505	-90	000	118	--	--	--	NSA
GRC380	RC	750,850	6,966,800	504	-90	000	119	72	81	9	5.2
GRC381	RC	750,820	6,967,080	508	-90	000	98	85	87	2	0.8
GDD016	DD	750,795	6,966,920	511	-90	000	162.5	124.9	127.4	2	1.1
GRC325*	RC	750,854	6,966,860	511	-90	000	120	70	75	5	4.8
GRC357*	RC	750,820	6,966,941	503	-90	000	130	104	109	5	11.5
GRC342*	RC	750,820	6,966,910	504	-90	000	227	89	98	9	4.24

* Previously reported GML drilling result

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APPENDIX (2): SIGNIFICANT DRILLING INTERSECTIONS JORC Code, 2012 Edition Table 1

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 (e.g. 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 (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverized 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 (e.g. submarine nodules) may warrant disclosure of detailed information.	• DIAMOND Drilling– Core was drilled by DDH 1. Gateway staff collected the core from the rig and took the core back to the core yard where the core was cleaned, reassembled and marked up with metre marks for logging by Gateway geologists. The geologist marked up the core for sampling and the HQ and NQ core was half cut in half using a corewise automatic core saw. Sample lengths were dominantly 1m in length, but where geological contacts were present, the core was sampled to this contact creating a sample less or greater than 1 metre. Minimum sample length is 0.2m and maximum sample length is 1.2m. Duplicates were taken by taking a separate pulp in the preparation stage at the lab at a 1:50 ratio • RC drilling - 2kg - 3kg samples were split from dry 1m bulk samples. The sample was initially collected from the cyclone in an inline collection box with independent upper and lower shutters. Once the metre was completed, the drill bit was lifted off the bottom of the hole, to create a gap between samples, when the gap of air came into the collection box the top shutter was closed off. Once the top shutter was closed, the bottom shutter was opened, and the sample was dropped under gravity thorough a Metzke cone splitter. Once drilling reached fresh rock a fine spray of water was used to suppress dust and limit the loss of fines thorough the cyclone chimney. A second 2kg-3kg sample was collected at the same time the original sample. This sample has been stored on site. These duplicate samples have been retained for follow up analysis and test work. The bulk sample of the main ore zone was discharged from the cyclone directly into green bags. • The bulk sample from the waste was collected in wheelbarrows and dumped into neat piles on the ground. • During the sample collection process, the cone split, original and duplicate calico samples and the reject green bag samples were weighed to test for bias’s and sample recoveries. The majority of the check work was undertaken through the main ore zones. • Field duplicates were collected at a ratio of 1:20 through the mineralised zones and collected at the same time as the original sample through the B chute of the cone splitter. OREAS certified reference material (CRM) was inserted at a ratio of 1:20 through the mineralised zone. The grade ranges of the CRM’s were selected based on grade populations and economic grade ranges.

Criteria	JORC Code explanation	Commentary
		Historical Drilling: All information referred in this report not collected in this current program has been accessed through verifying historical company reports and/or available digital databases. Diamond Drilling:HQ3 and NQ core drilled in fresh rock. Core orientated and mineralised noted and marked for cutting. Sample lengths sampled on 0.5 to 2m intervals and cut to half-core sub-sample collected. Samples were analysed for Au by AAS technique with results greater than 0.5ppm Au re- assayed by Fire Assay. Assays >3g/t Au re-assayed by Screen Fire Assay. This methodology was applied to account for a recognized coarse gold component within the mineralised zones. RC Drilling:Samples were collected on 1m intervals, riffle split and 5m composite samples prepared for assay. Re-assays were undertaken on selected 1m samples. Samples sent to ALS in Perth, for 3kg pulverisation for production of homogenous 50g or 30g charge for Au fire assay, multi elements also analysed
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, whether core is oriented and if so, by what method, etc.).	• DIAMOND - was drilled by DDH1 (Perth) using a Boart Longyear KWL 1600H drill rig. • RC – Challenge Drilling drill rig was used. The rig consisted of a Schramm truck mounted RC rig with 1150cfm x 350psi on board compressor, an Airsearch 1800cfm x 900psi on board Booster, and a truck mounted Sullair 900cfm x 350psi auxiliary compressor. Historical Drilling: All information referred in this report not collected in this current program has been accessed through verifying historical company reports and/or available digital databases. Diamond Drilling:RC percussion or HQ3 pre-collars were drilled to fresh rock. NQ core drilled for remainder of holes. No details available on drilling rig specifications. RC Drilling:RC percussion drilled as pre-collars to fresh rock. No details available on drilling rig specifications.
Drill sample recovery	• Method of recording and assessing core and chip sample recoveries and results assessed. • Measures taken to maximize 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.	• DIAMOND – the holes were rough cored from surface through the broken oxide zone which is well understood from previous drilling. The remnant core was examined by Gateway Geologists and then discarded. Once coherent coring was established the drill sample recovery was measured routinely by Gateway Geologists. Overall recovery was excellent. • During the RC sample collection process, the cone split, original and duplicate calico samples and the reject green bag samples were weighed to test for bias’s and sample recoveries. The majority of the check work was undertaken through the main ore zones. From this process showed that the majority of ore grade samples had recoveriesgreater than 80%

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Criteria	JORC Code explanation	Commentary
		• Once drilling reached fresh rock a fine spray of water was used to suppress dust and limit the loss of fines thorough the cyclone chimney. • At the end of each metre the bit was lifted off the bottom to separate each metre drilled. • The majority of samples were of good quality with ground water having minimal effect on sample quality or recovery. • From the collection of recovery data, no identifiable bias exists. Historical Drilling: All information referred in this report not collected in this current program has been accessed through verifying historical company reports and/or available digital databases. Diamond Drilling:Recoveries in fresh rock are recorded as being satisfactory and that no inherent bias has been introduced from drilling or sampling techniques. RC Drilling:There are no records available that capture information on drilling recoveries. Typically a minimum 3kg sample was provided to the laboratory for assay. Samples considered fit for purpose.
Logging	• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography. • The total length and percentage of the relevant intersections logged.	• Diamond core was put into core trays on the drill rig and then cleaned, reassembled and marked up with metre marks for logging by Gateway geologists • Reverse circulation chips were washed and stored in chip trays in 1m intervals for the entire length of each hole. Chips were visually inspected and logged to record lithology, weathering, alteration, mineralisation, veining and structure. • Data on rock type, deformation, colour, structure, alteration, veining, mineralisation and oxidation state were recorded. • Logging is both qualitative and quantitative or semi quantitative in nature. Historical Drilling: All information referred in this report not collected in this current program has been accessed through verifying historical company reports and/or available digital databases. Reverse circulation and Aircore chips were washed and stored in chip trays in 1m intervals for the entire length of each hole. Chips were visually inspected and logged to record lithology, weathering, alteration, mineralisation, veining and structure. Records of samples being wet or dry were taken. Diamond core was presented and stored in industry standard core boxes. The core was orientated and core loss noted. Data on rocktype, deformation, colour, structure, alteration, veining, mineralisation and oxidation state were recorded. RQD, magnetic susceptibility and core recoveries were recorded. Logging is considered both qualitative and quantitative or semi-quantitative in nature.

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Criteria	JORC Code explanation	Commentary
		The logging information is considered to be fit for purpose.
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 diamond core was cut based on geological boundaries or to a maximum length of 1m. Quarter core was sampled from each interval and retained in calico bags. Core is then securely stored in a Perth warehouse. • Samples were split from dry, 1m bulk sample via a cone splitter directly from the cyclone. • The QC procedure adopted through the process includes: o Weighing both calicos and reject sample to determine sample recovery and check for sampling bias. o Field duplicates were collected at a rate of 1:25, these were collected during RC drilling at the same time as the primary sample. o OREAS certified material (CRM) was inserted at a rate of 1:25, the grade ranges of the CRM’s were selected based on grade populations. • 2-3kgs of sample was submitted to the laboratory. • Samples oven dried at 10gdegC then pulverized in LM5 mills to 85% passing 75micron. • All samples were analysed for Au using the Au-AA26 technique which is a 50g lead collection fire assay. • For Diamond core and RC samples the sample preparation technique is appropriate and is standard industry practice for a gold deposit. • Quality control for maximising representivity of samples included sample weights, insertion of field duplicates and laboratory duplicates. Historical Drilling: All information referred in this report not collected in this current program has been accessed through verifying historical company reports and/or available digital databases. RC samples were split using a riffle splitter. 1m samples were collected and 5m composites prepared for assay. Re-assays were undertaken on selected 1m samples. Typically 3kg samples were submitted to the assay laboratory. Only minor numbers of samples are recorded as being wet. QA/QC data is not currently available. Sampling processes are considered fit for purpose. Diamond core was presented and stored in industry standard core boxes. The core was orientated and core loss noted. Once logged the core was marked up for sampling ranging from 0.5m to 2.0m largely matching geological contacts. Half core samples were collected and submitted to the assay laboratory. Samples were analysed for Au by AAS technique with results greater than 0.5ppm Au re- assayed byFire Assay. Assays >3g/t Au re-assayed byScreen Fire Assay. This

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Criteria	JORC Code explanation	Commentary
		methodology was applied to account for a recognized coarse gold component within the mineralised zones.
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 (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	• Drill samples were submitted to ALS (Perth). All samples were analysed by a 50g fire assay (AAS finish) which is a total assay. • Ore zones were also submitted for accelerated cyanide leachwell test work. This is involves a 2000g leach with AAS finish. • Field duplicates were collected at a rate of 1:25 with CRM’s inserted at a rate of 1:25 also. The grade ranges of the CRM’s were selected based on grade populations. Historical Drilling: All information referred in this report not collected in this current program has been accessed through verifying historical company reports and/or available digital databases. All samples were assayed at either Analabs or ALS in Perth. Samples were analysed for Au by AAS technique with results greater than 0.5ppm Au re- assayed by Fire Assay. Assays >3g/t Au re-assayed by Screen Fire Assay. This methodology was applied to account for a recognized coarse gold component within the mineralised zones. QA/QC data is not currently available. Sampling processes are considered fit for purpose.
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.	• Drilling results are cross checked by company geologists and consulting geologists (OMNI GeoX Pty Ltd.) • Data is recorded digitally at the project within standard industry software, assay results received digitally also. • All data is stored within a suitable database. Historical Drilling: All information referred in this report not collected in this current program has been accessed through verifying historical company reports and/or available digital databases. Logging and sampling were recorded directly into a Stratalog T500 digital logging unit. All drilling information is currently stored in a Gateway Access database. All information has been plotted on section and in plan to match against neighbouring holes and determine likely validity of the data QA/QC data is not currently available. Sampling and assay data are considered fit for purpose.

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Criteria	JORC Code explanation	Commentary
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. • Specification of the grid system used. • Quality and adequacy of topographic control.	• Drill hole location is initially recorded with a handheld Garmin GPS (+/- 3m) and will eventually be recorded by Digital GPs (+/-1cm). A Reflex EZ North Seeking Gyro is used to record the deviation of the drill holes (+/- 1deg) Historical Drilling: All information referred in this report not collected in this current program has been accessed through verifying historical company reports and/or available digital databases. A truncated AMG grid was established across the project area and hole collars were measure from fixed survey pegs. These collar locations have been validated using detailed aerial photography. Downhole surveys were undertaken with an Eastman single shot camera on intervals ranging from 30 to 50m. Location data is considered fit for purpose.
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.	• Refer to tables within text for data spacing. • Holes drilled within this program in combination with the historical holes and their related samples are deemed to be appropriate for resource estimation. Historical Drilling: All information referred in this report not collected in this current program has been accessed through verifying historical company reports and/or available digital databases. Please See Table 1 for Results Drilling at the Whistler, Montague and Caledonian targets have been drill tested in various spacings. Typically immediately below the historical open pit mines the spacing is a nominal 25 x 25m and as the drilling moves deeper and along strike expands to 25 x 50m and 50 x 50m.
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.	• Drill lines were orientated as close to perpendicular as possible to the perceived strike of the mineralized structure. Drilling at Whistler intercepts mineralisation at an oblique angle to the dip (~15deg off). The orientation of drilling is suitable for the mineralisation style and orientation of mineralisation. • Vertical drilling has been utilised at Montague to allow for room on the pit edge and to facilitate drilling through a low level waste dump. Historical Drilling: All information referred in this report not collected in this current program has been accessed through verifying historical company reports and/or available digital databases.

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Criteria	JORC Code explanation	Commentary
		Drilling directions at Whistler, Montague and Caledonian targets have been drilled perpendicular to strike (90-270) and in the across dip direction in most cases. The majority of holes have been drilled at a 60 to 90 degree dip and intersected the mineralisation at an appropriate angle. In some cases reverse angled holes have been completed to test for short range controls on the gold mineralisation. The orientation of the drilling is suitable for the mineralisation style and orientation of the mineralisation at the Whistler, Montague and Caledonian Targets.
Sample security	• The measures taken to ensure sample security.	• Calico samples are sealed into green/poly weave bags and cable tied. These are then sealed in bulka bags and transported to the laboratory in Perth by company staff or trusted contractors or established freight companies. Historical Drilling: All information referred in this report not collected in this current program has been accessed through verifying historical company reports and/or available digital databases. No information.
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	• Drilling results are cross checked by company geologists and consulting geologists (OMNI GeoX Pty Ltd.) Historical Drilling: All information referred in this report not collected in this current program has been accessed through verifying historical company reports and/or available digital databases.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Mineral	•	Type, reference name/number, location and ownership including agreements or	•	The Whistler gold deposit is situated on Mining Lease M57/217 which is held 100%
tenement and		material issues with third parties such as joint ventures, partnerships, overriding		by Gateway Mining Ltd.
land tenure		royalties, native title interests, historical sites, wilderness or national park and	•	The Montague Gold Deposit is situated on Mining Lease M57/98 which is held 100%
status		environmental settings.		by Gateway Mining Ltd.
	•	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.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Exploration done	•	Acknowledgment and appraisal of exploration by other parties.	•	Whistler open cut was mined from November 1990 (Polaris Pacific NL) and ore was
by other parties				toll treated through the Herald mill. Little attention was paid to mineralisation other
				than gold.
			•	Montague open cut was mined from 1989-1990 (Herald Resource Ltd) and ore was
				toll treated through the Herald mill. Little attention was paid to mineralisation other
				thangold.
Geology	•	Deposit type, geological setting and style of mineralisation.	•	The Whistler orebody is a N-S shear zone hosted at the contact between basalt
				(east) and granodiorite (west) that contains an array of NNE-striking quartz veins
				arranged_en echelon._
			•	The Whistler orebody is hosted in a flat lying (30-45 degrees) N-S trending shear
				zone hosted by basalt on the margin of a large granodiorite intrusion. The
				mineralisation is typically within a defined shear zone with quartz-veining and
				strong biotite-sericite alteration. Minor sulphides are generally present.
Drill hole	•	A summary of all information material to the understanding of the exploration	•	Exploration drill results are contained with Table 1
Information		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.
Data	•	In reporting Exploration Results, weighting averaging techniques, maximum and/or	•	The minimum grade truncation was set at 1g/t. There was no maximum grade
aggregation		minimum grade truncations (eg cutting of high grades) and cut-off grades are		truncation given to these set of exploration results.
methods		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.
Relationship	•	These relationships are particularly important in the reporting of Exploration Results.	•	Drill lines were orientated perpendicular to the perceived strike of the mineralized
between	•	If the geometry of the mineralisation with respect to the drill hole angle is known, its		structure. Drilling at Whistler intercepts mineralisation at an oblique angle to the
mineralisation		nature should be reported.		dip (~15deg off). The orientation of drilling is suitable for the mineralisation style
widths and	•	If it is not known and only the down hole lengths are reported, there should be a		and orientation of mineralisation.
intercept lengths		clear statement to this effect (eg ‘down hole length, true width not known’).
Diagrams	•	Appropriate maps and sections (with scales) and tabulations of intercepts should be	•	Appropriate maps and sections are included in the announcement
		included for any significant discovery being reported These should include, but not be
		limited to aplan view of drill hole collar locations and appropriate sectional views.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Balanced	•	Where comprehensive reporting of all Exploration Results is not practicable,	•	The accompanying document is considered to be a balanced report with a suitable
reporting		representative reporting of both low and high grades and/or widths should be		cautionary note.
		practiced to avoid misleading reporting of Exploration Results.
Other	•	Other exploration data, if meaningful and material, should be reported including	•	Bulk density and leachwell analysis are ongoing and will be reported in due course
substantive		(but not limited to): geological observations; geophysical survey results; geochemical
exploration data		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 (eg tests for lateral extensions or depth	•	A first pass inferred resource on the results obtained to date at Whistler and
		extensions or large-scale step-out drilling).		Montague.
	•	Diagrams clearly highlighting the areas of possible extensions, including the main	•	Deeper diamond drilling to fully assess the underground potential/extension of the
		geological interpretations and future drilling areas, provided this information is not		known high grade mineralised core.
		commercially sensitive.	•	RC drilling to test for strike extensions.

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