GATEWAY MINING LIMITED — Capital/Financing Update 2019

Mar 26, 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: 27 March 2019

DRILLING IDENTIFIES EXCEPTIONAL HIGH GRADE MINERALISED ZONE AT MONTAGUE GOLD DEPOSIT Reverse circulation drilling defines strong high-grade zone extending at depth

HIGHLIGHTS

• The recently completed RC drilling program at the Montague Gold deposit has successfully extended the mineralisation a further 100m down-dip from previous drilling, outlining a high-grade “shoot” within a broader envelope of mineralisation. This shoot remains open down-plunge.

• The standout intersection from the 9-hole program of Reverse Circulation (RC) drilling was returned from drill hole GRC370, which intersected the targeted structure at 139m below surface and approximately 50m down-dip of previous drilling completed by Gateway (see Appendix 1 for details):

GRC370 6 metres @ 45.5g/t Au from 139m (including 3 metres @ 90g/t)

• Other results from this program of drilling that define the distribution of the mineralisation include:

• GRC366 1 metre @ 8.81g/t Au from 154 metres

• ▪ GRC371 1 metre @ 6.22g/t Au from 141 metres ▪ GRC372 1 metre @ 8.87g/t Au from 68 metres

• The mineralised shear zone extends from the immediate base of the historical Montague Open Pit and has now been defined for approximately 220m down-dip. The high-grade shoot currently remains open down-plunge.

• The detailed structural controls on this newly defined high-grade shoot are yet to be fully defined and are currently being worked on.

• All drilling intersections to date are in relatively shallow positions, within ~150m of the surface.

Gateway Mining Limited (ASX: GML) ( Gateway or Company ) is pleased to report that strong high-grade intersections, including a standout bonanza grade intercept, have been returned from the most recent program of Reverse Circulation (RC) drilling designed to test the depth extensions of the Montague Gold Deposit, within its 100%-owned Gidgee Gold Project in Western Australia (Figure 1).

This program has been a continuation of a phased program of drilling designed to evaluate the potential for a significant gold system to be drilled out immediately beneath the historical Montague open pit mine.

In addition, the drilling will provide key information on the mineralisation controls that can then be applied in exploration programs in other targeted positions across the project.

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Figure (1): Gidgee Gold Project Location Plan

KEY POINTS

• This recently completed program of RC drilling (9 holes for 1,512 metres) continues to confirm the presence of a significant high-grade gold mineralised structure immediately down-dip of the Montague historical open pit. Significant results from Gateway’s drilling programs over the past 12 months include (Figure 2):

Current Program

• GRC370 6 metres @ 45.5g/t Au from 139 metres (including 3 metres @ 90g/t)

• ▪ GRC366 1 metre @ 8.81g/t Au from 154 metres

• GRC371 1 metre @ 6.22g/t Au from 141 metres

• GRC372 1 metre @ 8.87g/t Au from 68 metres

• Previous Programs*

• GRC357 5 metres @ 11.5g/t Au from 104 metres

• GRC358 2 metres @ 5.80g/t Au from 75 metres

• GRC342 9 metres @ 4.24g/t Au from 89 metres

• GRC330 7 metres @ 3.91g/t Au from 70 metres (within 15 metres @ 2.10g/t Au) and;

  • 4 metres @ 24.1g/t Au from 239 metres (“Gordon’s Lode”)

• GRC325 5 metres @ 4.47g/t Au from 70 metres

• GRC360 3 metres @ 2.16g/t Au from 64 metres

• ▪ GRC361 7 metres @ 1.56g/t Au from 78 metres

• (* Previously reported results – see ASX announcement dated 10 July 2018 and 14 January 2019)

• This drilling program has successfully extended the mineralisation for a further 100m down-dip from previous drilling and has defined a high-grade “shoot” within a broader envelope of mineralisation.

• The deepest intersection to date is still relatively shallow at a depth of ~150m.

• The high-grade shoot component plunges to the north-west and remains totally untested in this direction. The structural controls on this high-grade mineralisation are yet to be fully understood.

• The mineralisation remains largely untested along strike, particularly below 50m from surface, and therefore presents as a major exploration opportunity.

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• • The mafic-hosted shear zone has a moderate dip (30–45 ), resulting in a significant amount of the mineralisation being located in shallow positions (<150m to date). In addition, the presence of the parallel, highgrade Gordon’s Lode ( 4m @ 24.1g/t Au ) at depth, indicates significant potential for multiple structures.

• Mining of the historical Montague Open pit was limited to shallow, oxide mineralisation. Extensions of the mineralisation into primary fresh rock in the base of the pit have not been systematically tested. On this basis, Gateway believes that significant potential exists to expand these zones of remnant gold mineralisation with additional drilling for inclusion in any future cut-back of the open pit.

• Given that the mineralisation is totally unconstrained and appears to be strengthening at depth, a decision has been taken to continue drilling to expand the zone prior to committing to any Mineral Resource estimation work.

• All intersections have been confirmed by preliminary metallurgical test work comprising accelerated cyanide partial leach assays (2kg Leachwell Assays: see Appendix 2 for details). The results provide clear evidence that the gold at both deposits is free milling in nature.

• Follow-up drill testing of the Gordon’s Lode is yet to be undertaken as planned. The planned RC hole that was to be utilized as a pre-collar to a diamond tail had collapsed and re-entry was not possible. This drilling will be completed as part of the next phase of work.

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Figure (2): Montague Gold Project Gold Distribution Plan

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MANAGEMENT COMMENTS

Gateway’s Managing Director, Peter Langworthy, said these outstanding new drill results continue to confirm the strong potential of the Montague Deposit to continue to develop into a major gold system with the potential for highgrade mineralisation – not only in the base of the historical open pit, but across the wider project area.

“These results confirm to us that Montague, and in fact the wider Gidgee Project, has the potential to deliver very high grades. We are still working out the detailed controls but it is clear that the mineralisation is getting stronger at depth and remains totally open along strike. We also still have to test the newly discovered Gordon’s lode at depth so it is clear that we have some exciting drill testing ahead of us” he said.

“Planning and permitting of the next round of drilling is currently underway and you will probably see us getting a bit more aggressive with our approach on the back of these results. We have now also put our resource estimation processes on hold until we get a clearer picture of the potential at Montague.”

Peter Langworthy Managing Director

For and on behalf of GATEWAY MINING LIMITED

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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APPENDIX (1): TABLE OF SIGNIFICANT DRILLING INTERSECTIONS

		Table 1: Significant Drilling Results from Montague
Prospect	HoleJD	MGA_E	MGA_N	RL	Dip	Azi	EOH (m)	From (m)	To (m)	Width (m)	Au (g/t)
Montague	GRC0365	750770	6967020	505.4	-90	0	198	-	-	-	-
Montague	GRC0366	750720	6966990	506.4	-90	0	198	154	155	1	8.81
Montague	GRC0367	750720	6966930	515.2	-90	0	183	-	-	-	-
Montague	GRC0368	750770	6966880	513.8	-90	0	180	-	-	-	-
Montague	GRC0369	750770	6966970	513.1	-90	0	180	139	140	1	3.12
Montague	GRC0370	750770	6966940	513.7	-90	0	180	139	145	6	45.5
								(Includes)		3	90
Montague	GRC0371	750770	6966910	513.8	-90	0	165	141	142	1	6.22
Montague	GRC0372	750820	6966980	508.8	-60	090	108	68	69	1	8.87
Montague	GRC0373	750819	6966980	508.8	-90	0	121	99	100	1	3.13

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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.	• 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. 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

Criteria	JORC Code explanation	Commentary
		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.).	• 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.	• 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 recoveries greater than 80% • 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. Typicallya minimum 3kgsample wasprovided to the laboratoryfor assay.

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Criteria	JORC Code explanation	Commentary
		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.	• 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. 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.	• 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. • Qualitycontrol for maximisingrepresentivityof samples included sample weights,

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Criteria	JORC Code explanation	Commentary
		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 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.
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.

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Criteria	JORC Code explanation	Commentary
		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.
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:

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Criteria	JORC Code explanation	Commentary
		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 historial 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 perpendicular to the perceived strike of the mineralized structure. Inclined RC holes (-60 degrees) are perpendicular to the dip of the mineralized structure creating minimal sampling bias. The vertical RC holes are around 20-30 degrees off being perpendicular to the dip in the mineralised structure creating a minimal sampling bias. • 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. 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	• The results of any audits or reviews of sampling techniques and data.	• Drillingresults are cross checked bycompany geologists and consulting geologists

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Criteria	JORC Code explanation	Commentary
reviews		(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 Montague gold deposit is situated on Mining Lease M57/98 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
status		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.
Exploration done	•	Acknowledgment and appraisal of exploration by other parties.	•	Gold was discovered in the district during the gold rush era, first records of gold
by other parties				won from small scale high grade workings include the Montague Mining Centre
				(1904-13).
				Renewed interest in the late 60's included base metal exploration carried out
				within exposed stratigraphy of the Montague Ranges (Bungarra Ranges),
				exploration interest that broadened with the release of the Sandstone 1:250,000
				aeromagnetic sheet in 1970 resulting in the staking of favourable magnetic
				anomalies by exploration companies.
			•	Early explorers in the Montague Ranges included Anaconda Australia Inc. (1966-
				67), followed by International Nickel Australia (1971-75) perusing a Gabbro - large
				banded differentiated basic complex believed a multiple intrusion prospective for
				copper and/or nickel such as the Dulith Gabbro, USA. Strong geophysical and
				mineralised anomalisms were encountered, however, copper-zinc enrichments
				were also encountered in adjacent felsic stratigraphy at Ed's Bore prospect, which
				was followed by CRA Exploration (1983-1990) to intersect polymetallic VMS
				enrichments at Bevan prospect (not substantively pursued).
			•	At Montague, Western Mining Corporation (1976) conducted investigations for
				copper and gold including soil sampling and IP surveying, which was followed by
				CRA Exploration (1984-89) working concurrently with AMOCO Minerals Australia
				Company (1984) and Clackline Refractories Ltd (from 1985 - to later become Herald
				Resources) assessing/purchasing historic mine areas from Mr W.J. Griffiths of
				Sandstone. RAB drilling penetratingtransported cover resulted in the virgin

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				discoveries of NE Pit by AMOCO and Whistler deposit by CRA. Later noted explorers
				included Dalrymple Resources NL (1987-1990) intersecting gold at the Armada
				(Twister) prospect, and Arimco Mining (1990-98) intersecting gold at Lyle prospect,
				Victory West prospect, and copper at The Cup prospect (not substantively
				pursued).
			•	The Montague Mining Centre produced approximately 150,000oz of gold
				commencing in 1986 at Caledonian and NE Pits (Clackline), and continued at
				Montague Boulder from 1988 (Herald), and was to close in 1993 after completion
				of the Rosie Castle open cut (Herald). Whistler open cut was mined from November
				1990 (Polaris Pacific NL) and ore toll treated through the Herald mill. Little
				attention was paid to mineralisation other than gold. Gateway Mining in joint
				venture with Herald Resources continued exploration of the Montague Mining
				Centre, Gateway also targeting poly-metallic intrusion related - VMS models in the
				district from 2006.
Geology	•	Deposit type, geological setting and style of mineralisation.	•	The Montague-Boulder deposit is the most complex of the described ore bodies,
				consisting of the N-S striking, 40° west dipping Montague Boulder main lode and a
				large area of sheeted quartz+tourmaline veining in the footwall of the main lode,
				termed the Battery Zone. The Battery Reef is inferred to be a folded limb of the
				main lode, with the antiformal fold axis plunging shallowly to the south. A massive
				zone of quartz up to 10m thick occurred at the apex of the fold. The granodiorite
				wallrock is altered to a quartz+sericite+biotite schist.
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 0.2g/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 areparticularly important in the reporting of Exploration Results.	•	Drill lines were orientatedperpendicular to theperceived strike of the mineralized

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
between	•	If the geometry of the mineralisation with respect to the drill hole angle is known, its		structure. Inclined RC holes (-60 degrees) are perpendicular to the dip of the
mineralisation		nature should be reported.		mineralized structure creating minimal sampling bias. The vertical RC holes are
widths and	•	If it is not known and only the down hole lengths are reported, there should be a		around 20-30 degrees off being perpendicular to the dip in the mineralised
intercept lengths		clear statement to this effect (eg ‘down hole length, true width not known’).		structure creating a minimal sampling bias.
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.
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 analysis is 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	•	Step-out RC drilling down dip and along strike of high grade gold intercepts
		extensions or large-scale step-out drilling).	•	First pass inferred resource
	•	Diagrams clearly highlighting the areas of possible extensions, including the main	•	Deeper diamond drilling to fully assess the “Gordon’s Lode” mineralised structure
		geological interpretations and future drilling areas, provided this information is not
		commercially sensitive.

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