GATEWAY MINING LIMITED — Interim / Quarterly Report 2018

Oct 29, 2018

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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SEPTEMBER 2018 QUARTERLY ACTIVITIES AND CASH FLOW REPORT

Gateway gears up for new phase of drilling at Gidgee Gold Project as further successful exploration and historical data reviews reveal multiple new high-quality targets

HIGHLIGHTS

• Reverse Circulation (“RC”) and Aircore (“AC”) drilling to test the potential for significant mineralisation around the historical Caledonian and North East Pits confirmed the presence of a series of significant mineralised structures that remain untested both down-dip and along strike.

• Multiple high-priority targets confirmed by systematic AC drilling program designed to test the highly prospective margin of the Montague Granodiorite.

• Extensive ~10km long gold mineralised trend identified extending north into the Gidgee Project, immediately along strike from the 200,000oz Howard’s Gold Deposit[1] .

• Planning completed for the next stage of drilling and ongoing systematic evaluation of the broader gold-system at Gidgee. Drilling is scheduled to re-commence in early November 2018.

• Upcoming programs of work will include:

• Extensional and in-fill drilling at the high-grade Whistler Prospect ahead of a maiden Resource.

• Resource evaluation drilling at the Montague Prospect ahead of a maiden Resource.

• Follow-up drill testing of the newly-discovered Gordon Lode at Montague, where recent drilling intersected a zone of exceptionally high-grade gold mineralisation (GRC0330: 4m @ 24.2g/t Au).

• Follow-up drill testing at two high-priority targets located along strike (C2 Prospect and Our Jack) identified in the recently completed AC drilling.

• Ongoing systematic evaluation of the extensions of the prospective margin of the Montague Granodiorite, including recently identified gold prospective corridors.

• Continued validation and evaluation of the project’s historical database.

• Subsequent to Quarter-end, Gateway raised $1.5m to underpin the new phase of drilling at Gidgee, with the dual objective of developing a core maiden Resource base at the more advanced prospects while continuing to evaluate the project’s outstanding potential to host a large-scale gold system.

Gateway’s Managing Director, Mr Peter Langworthy, said: “Following an active and successful quarter at the Gidgee Gold Project, Gateway is now about to embark on the next pivotal stage of exploration of this large and highly prospective gold project.

“Gidgee offers investors a combination of advanced exploration with the potential to delineate JORC Resources in the near term, and an exceptional exploration pipeline where we see a clear opportunity to develop a large-scale gold project in the heart of a Tier-1 mining jurisdiction.”

1 See HRN website for full details of Horizon Gold Limited’s JORC Resource reporting.

GIDGEE GOLD PROJECT

During the quarter, Gateway Mining completed the first phase of its WA gold exploration strategy, completing programs of Reverse Circulation (RC) and diamond drilling at the Gidgee Gold Project, located 70km north of Sandstone in Western Australia (Figure 1).

These drilling programs completed an initial phase of work that was designed to undertake a first-pass assessment of three highly prospective targets at the Gidgee Gold Project while at the same time generating a pipeline of additional high-quality targets for future follow-up.

Following the completion of these project-wide drilling programs, planning for the next stage of resource evaluation and ongoing systematic evaluation of the broader gold-system at the Gidgee Gold Project has been completed. Drilling is scheduled to re-commence in the December Quarter 2018.

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Figure (1): Gidgee Gold Project, Location Plan

STRATEGY

Following Gateway’s successful maiden drilling programs earlier this year at the Whistler and Montague Prospects, which confirmed the presence of strong and extensive zones of gold mineralisation, the Company has decided to commence significant programs of evaluation and expansion drilling targeting the establishment of a maiden Mineral Resource base for the Gidgee Gold Project.

RESOURCE EVALUATION

Whistler Prospect

The recent Reverse Circulation ( RC ) and diamond drilling program at the Whistler Prospect confirmed the presence of a significant, broad gold mineralised domain immediately beneath the base of the historical open pit. This mineralised domain also includes a substantial high-grade core containing intersections that include 20m @ 16g/t Au, 11m @ 5.6g/t Au, 12m @ 7.7g/t Au, 2.8m @ 79.2g/t Au and 10m @ 7.7g/t Au[2] .

2 See ASX announcement dated 10th July 2018 for details

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The mineralisation remains open in most directions, demonstrating a significant opportunity to expand the extent of the known mineralisation. Based on the quality and the continuity of the mineralisation defined to date, the Company has decided to commence a program of resource evaluation drilling.

The key objectives of this program include (see Figure 2):

• Defining a maiden open pit Resource immediately beneath the existing historical open pit;

• Modelling of the high-grade domain to define an underground Resource;

• Providing key samples to commence metallurgical test work; and

• The collection of geotechnical information.

In parallel with this resource evaluation drilling, a program of resource expansion/exploration drilling will be undertaken that will be focused on defining:

• Extensions to the high-grade mineralisation down-dip and along strike; and

• The controls on structures defined in the footwall of the main mineralised structure, where recent drilling returned intercepts including 2.8m @ 79.2g/t Au and 18m @ 2.9g/t Au.

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Figure (2): Whistler Prospect Resource Evaluation Long Section

Montague Prospect

The Montague Prospect, like Whistler, also represents an opportunity to define a maiden Resource beneath the shallow historical open pit, while at the same time testing the potential for the presence of a much larger gold deposit. Planned resource evaluation drilling will focus on:

• The immediate extensions of the Boulder shear zone that extends out of the western base of the historical open pit over a strike length of approximately 300m and a down-dip extent of approximately 200m (Figure 3). Previous drilling results in this position include 15 metres @ 2.1g/t Au (including 7 metres @ 4.0g/t Au), 5.0 metres @ 3.5g/t Au, 8.0 metres @ 9.8g/t Au and 8.2 metres @ 1.4g/t Au[3] ;

• A zone of granite-hosted stockwork mineralisation in the eastern part of the open pit;

3 See ASX announcement dated 6th July 2018 for details

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• Immediate strike extensions to the north and south of the Montague open pit where shallow drilling demonstrates that the Montague mineralisation has not been closed off; and

• Provision of samples for metallurgical testwork and collection of geotechnical data.

In addition to the focused resource evaluation work, a component of the drilling program will be allocated to:

• Following up the discovery hole on the Gordon Lode (4m @ 24.2g/t Au). This position remains totally unconstrained and, as such, represents a major exploration opportunity to define a high-grade mineralised structure;

• Testing a conceptual target at depth based on a structural model that suggests the potential for stacked mineralised gold lodes with the potential to host significant high grades; and

• Testing the contact between the mafic volcanic rocks and the granodiorite. This position is analogous to the structural setting of the Whistler deposit.

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Figure (3): Montague Prospect Resource Evaluation Cross-Section

EXPLORATION

Gateway maintains a strong belief that the mineralised gold system associated with the margins of the Montague Granodiorite has the potential to develop into a large-scale opportunity.

As outlined in recent announcements and presentations, this opportunity is considered to be analogous to the King of the Hills-Tarmoola (2.3Moz) and Granny Smith (+2Moz) gold deposits located in the Eastern Goldfields of WA.

With this in mind, the Company remains committed to pursuing this broader growth opportunity at the same time as undertaking initial evaluation work programs to establish maiden Resources at both Whistler and Montague.

The following target descriptions provide an example of the high-priority quality exploration opportunities that are currently available within the Company’s extensive target portfolio.

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Our Jack Prospect

The Our Jack Prospect is located approximately 400m to the north of the Montague open pit. Recent drilling has returned a series of significant intersections that confirmed and enhanced the results of historical drilling. Results include shallow intercepts of 16 metres @ 1.73g/t Au, 7 metres @ 1.34g/t Au and 23 metres @ 2.03g/t Au[4] (Figure 4).

The next phase of exploration will focus on RC drilling to test for down-dip and along-strike continuity, as the mineralisation remains open in all directions. The drilling will also provide information as to how this mineralisation may relate to the Montague deposit to the south.

C2 Prospect

The C2 Prospect has been defined by programs of shallow Aircore and RAB drilling as a series of shallow-dipping, linking structures between the Caledonian and NE deposits. Significant results include 2 metres @ 5.82g/t Au, 2 metres @ 24.6/t Au, 3 metres @ 15.7g/t Au, 10m @ 1.62g/t Au and 16m @ 1.61g/t Au[5] (Figure 5).

Planned exploration will include initial RC drilling along these structures to test for down-dip and along strike continuity.

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Figure (4): Our Jack Prospect – Interpreted Cross-Section 6,967,425N

4 See ASX announcement dated 22nd August 2018 for details

5 See ASX announcement dated 22nd August 2018 for details

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Figure (5): C2 Target – Interpreted Geology Plan and Gold Distribution

Boulder Trend

An approximate 4km strike trend on the south-west margin of the Montague Granodiorite has only been the subject of minor historical drilling and remains largely untested. The drilling along this trend is typically wide-spaced and, in general, is considered too shallow to have effectively tested the bedrock beneath transported cover. In fact, less than 20 drill holes have been drilled deeper than 50m.

The structural and stratigraphic components that control the mineralisation to the immediate north are evident along the Boulder Trend and, as such, the prospectivity of the target area is considered very high.

Programs of exploration to assess this 4km trend will largely involve systematic Aircore drilling to complete effective bedrock testing beneath the transported cover.

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Figure (6): Boulder Trend – Interpreted Geology Plan and Gold Distribution

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Eastern Margin

An extensive ~10km long gold mineralised trend extending north into Gateway’s 100%-owned Gidgee Project has been identified immediately along strike from the 200,000oz Howard’s Gold Deposit[6] .

This gold trend remains largely untested by previous exploration activities. Key features of this significant gold trend include (Figure 7):

• It has been identified as a major structural corridor with strong similarities to the highly mineralised Western Margin of the Montague Granodiorite that hosts the advanced high-grade Whistler and Montague prospects, as well as a portfolio of advanced high-grade exploration targets;

• The gold trend hosts the 200,000oz Howard’s Gold Deposit, located on the immediate southern margin of Gateway’s tenements. This mineralisation has strong potential to extend immediately along strike into Gateway’s Gidgee Project;

• Previous exploration has been limited to erratic, shallow rotary air blast drilling that consistently has not penetrated the shallow transported cover;

• The presence of a number of historical prospector shafts and pits demonstrates the likely presence of highgrade gold mineralisation within this extensive new prospective gold corridor.

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6 See HRN website for full details of Horizon Gold Limited’s JORC Resource reporting.

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Figure (7): Eastern Margin gold mineralised trend. Note the position of the Howard’s resource on southern margin of Gateway’s tenements

REGIONAL PROJECTS

There has been not been any exploration activities on the Company’s regional exploration projects during the reporting period.

TENEMENTS

There have been no material changes to the Company’s tenement holdings during the reporting period (see Appendix 1).

An application (ELA57/1095) has been made for ground that is contiguous to the south of the Gidgee Project containing the interpreted extensions of the Gum Creek Greenstone Belt. The grant of the Exploration Licence is now subject to due process.

CAPITAL RAISING

Subsequent to the reporting period, on 22 October 2018 the Company announced that it had successfully completed a capital raising of A$1.5 million (before costs) ( Placement) to institutional, professional and sophisticated investors to underpin the upcoming drilling program at the Gidgee Gold Project.

The Placement, which comprised the issue of 100,000,003 shares at an issue price of $0.015 per share, was strongly supported by existing and new investors including, subject to shareholder approval, by the Company’s directors. As the participation of the Company’s directors in the Placement is subject to shareholder approval, the Placement will be issued in the following two tranches:

• 81,250,070 shares to institutional, professional and sophisticated investors using the Company’s capacity under ASX Listing rule 7.1 which will not require shareholder approval (Tranche 1 Shares), issued on 25 October 2018; and

• 18,749,933 shares to Directors of the Company or their nominees, subject to shareholder approval being obtained at the Annual General Meeting of shareholders (AGM), which is expected to be held at the end of November 2018 (Tranche 2 Shares).

The proceeds of the Placement will underpin upcoming exploration programs at the Gidgee Project as part of the Company’s recently announced exploration and resource development strategy in relation to highly prospective gold prospects outlined on the margin of the Montague Granodiorite.

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Yours faithfully

Peter Langworthy Managing Director 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 the Managing Director 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): GATEWAY MINING LIMITED’S CONSOLIDATED TENEMENT HOLDINGS

Project	Tenement ID	Ownership
Gidgee	E57/945	GML
Gidgee	M57/485	GML 75%,EstuaryResources NL 25%
Gidgee	E57/793	GML 75%,EstuaryResources NL 25%
Gidgee	E57/405	GML
Gidgee	E57/874	GML
Gidgee	E57/875	GML
Gidgee	E57/888	GML
Gidgee	E57/823	GML
Gidgee	E57/824	GML
Gidgee	E57/688	GML
Gidgee	E57/687	GML
Gidgee	E57/417	GML
Gidgee	M57/48	GML 85%,Goldfan PtyLtd 15%
Gidgee	M57/98	GML 85%,Goldfan PtyLtd 15%
Gidgee	M57/99	GML 85%,Goldfan PtyLtd 15%
Gidgee	M57/217	GML 85%,Goldfan PtyLtd 15%
Gidgee	E57/807	GML
Gidgee	M57/429	GML 75%,EstuaryResources NL 25%
Gidgee	E57/876	GML
Gidgee	E57/1004	GML
Gidgee	E57/1005	GML
Gidgee	E57/1057	Omni Projects
Gidgee	E57/1067	Omni Projects
Gidgee	P57/1407	Omni Projects
Gidgee	P57/1409	Omni Projects
Gidgee	P57/1410	Omni Projects
Gidgee	P57/1411	Omni Projects
Gidgee	P57/1412	Omni Projects
Gidgee	P57/1413	Omni Projects
Edjudina	E31/1134	Omni Projects
Edjudina	E31/1150	Omni Projects
Edjudina	E39/1765	Omni Projects
Edjudina	E39/1882	Omni Projects
**Cunyu **	E51/1762	85% Omni Projects 15% Milford Resources P/L
Bryah Basin	E51/1738	Omni Projects
Bryah Basin	E52/3248	Auris 85%,Omni Projects 15%
Bryah Basin	E52/3273	Omni Projects
Bryah Basin	E52/3291	Auris 85%,Omni Projects 15%
Bryah Basin	E52/3510	Omni Projects
Bryah Basin	E52/1842	Omni Projects
Sylvania	E52/3365	Omni Projects
Sylvania	E52/3366	Omni Projects
Southern Cross	E77/2309	Omni Projects
Edna May	E77/2290	Omni Projects

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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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ABN: 31 008 402 391
Level 11, 52 Phillips Street Sydney NSW 2000
GPO Box 225 Sydney NSW 2001
Tel: 61 2 9191 4543
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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 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 (e.g. submarine nodules) may warrant disclosure of detailed information.	All information referred in this report 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.).	All information referred in this report 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 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.	All information referred in this report 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.

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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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ABN: 31 008 402 391
Level 11, 52 Phillips Street Sydney NSW 2000
GPO Box 225 Sydney NSW 2001
Tel: 61 2 9191 4543
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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.	All information referred in this report 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.	All information referred in this report 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.	All information referred in this report 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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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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ABN: 31 008 402 391
Level 11, 52 Phillips Street Sydney NSW 2000
GPO Box 225 Sydney NSW 2001
Tel: 61 2 9191 4543
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		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.	All information referred in this report 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.	All information referred in this report 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.	All information referred in this report 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.	All information referred in this report 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,

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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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ABN: 31 008 402 391
Level 11, 52 Phillips Street Sydney NSW 2000
GPO Box 225 Sydney NSW 2001
Tel: 61 2 9191 4543
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		Montague and Caledonian Targets.
Sample security	• The measures taken to ensure sample security.	All information referred in this report 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.	All information referred in this report has been accessed through verifying historical company reports and/or available digital databases. Program reviewed by company senior personnel.

Section 2 Reporting of Exploration Results

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.	See Appendix (1) The Gidgee Project is located on tenements: M57/485,E57/793 and M57/429 (GML 75%, Estuary Resources NL 25%). E57/405, E57/874, E57/945, E57/87, E57/888, E57/823, E57/824, E57/688, E57/687, E57/417, M57/48, M57/98, M57/99, M57/217, E57/807, E57/876, E57/1004 and E57/1005 (GML 100%). E57/1057 E57/1067 P57/1407 P57/1409 P57/1410 P57/1411 P57/1412 P57/1413 (OMNI Projects Pty Ltd) There are no native title claims or determinations currently affecting the Tenements. Historically there have been claims. E57/0888 and M57/0098 are affected by Crown Water Reserve 10203. E57/0405, E57/0687, E57/0793, E57/0823 and E57/1005 are affected by CPL/25, Lake Mason P/L 3114/551 (former pastoral lease purchased by the Department of Conservation and Land Management / Department of Biodiversity, Conservation and Attractions E57/0417, E57/0687, E57/0688, E57/0793, E57/0807, E57/0823, E57/0824, E57/0874, E57/0875, E57/0876, E57/0888, E57/0945, E57/1004, M57/0048, M57/0098, M57/0099, M57/0217, M57/0429, and M57/0485 are affected by Crown Reserve 9959 No other known impediments exist to operate in the area.
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	Prior to Gateway, the project area was held by a succession of companies, which has been documented back to the mid- 1980’s. Key work was undertaken by CRA Exploration and Herald Resources Ltd. All work has been assessed and is considered fit for purpose.
Geology	• Deposit type, geological setting and style of mineralisation.	The mineralisation style at the Gidgee Project is an Archaean

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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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ABN: 31 008 402 391
Level 11, 52 Phillips Street Sydney NSW 2000
GPO Box 225 Sydney NSW 2001
Tel: 61 2 9191 4543
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		lode gold deposit. The mineralisation is controlled by a major shear array that has penetrated the eastern margin of the Montague Granodiorite. The mineralisation is shear zone controlled with associated stockwork mineralisation. Based on the historically available data the mineralisation is typified as being free milling.
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.	Please See Table 1 for Results
Data aggregation methods	• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. • 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.	Assays were completed on individual samples and the reported intersections are reported as weighted average Downhole widths. No top cuts have been applied as the intersections are typically not biased by individual assays.
Relationship between mineralisation widths and intercept lengths	• These relationships are particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect _(e.g. ‘down hole length, true width not known’). _	The drilling is typically perpendicular or at a high angle to the mineralisation. The reported intersections are reported as weighted average Downhole widths.
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.	The diagrams in the report provide sufficient information to understand the context of the drilling results.
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.	The accompanying document is a balanced report with a suitable cautionary note.
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.	Historical geophysical, geochemical and regional drilling datasets are available and have been utilized to varying degrees in the assessments to date. These have not specifically been referred to in this documents and have not been part of the specific evaluation of the Whistler, Montague and Caledonian targets referred to in the report.
Further work	• The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step- _out drilling). _	Further Drilling program have been designed to follow up the current drilling to further define the mineralised zone.

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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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ABN: 31 008 402 391
Level 11, 52 Phillips Street Sydney NSW 2000
GPO Box 225 Sydney NSW 2001
Tel: 61 2 9191 4543
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• Diagrams clearly highlighting the areas of possible Industry best practice will be applied. extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

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