GATEWAY MINING LIMITED — Interim / Quarterly Report 2019

Apr 28, 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

ASX Announcement: 29 April 2019

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MARCH 2019 QUARTERLY ACTIVITIES AND CASH FLOW REPORT

Continued drilling success expands potential of Gidgee Gold Project in WA as $2.0M capital raising backed by strategic investors underpins new multi-pronged exploration push

GIDGEE GOLD PROJECT – SUMMARY

• Outstanding drilling results were received from in-fill and extensional Reverse Circulation ( RC ) and diamond drilling programs completed in December 2018 and February 2019 at the Whistler and Montague Gold Deposits, part of Gateway’s 100%-owned Gidgee Gold Project in WA (Figure 1).

• Drilling at Whistler confirmed the quality of the mineralisation immediately below the historical Whistler Open Pit, providing strong indications of high-grade extensions at depth and along strike to the south. Significant results include (see Appendix 2 and 3 for details):

  • GDD011 15.4 metres @ 2.94g/t Au from 128 metres

  • GRC0346 21 metres @ 5.30g/t Au from 149 metres

  • GRC0354 15 metres @ 4.51g/t Au from 119 metres

  • GRC0364 8 metres @ 6.04g/t Au from 190 metres

  • GRC0343 6 metres @ 14.5g/t Au from 198 metres

  • GRC0356 26 metres @ 2.61g/t Au from 126 metres  GRC0355 18 metres @ 2.85g/t Au from 114 metres  GRC0345 32 metres @ 1.21g/t Au from 125 metres  GRC0344 8 metres @ 1.10g/t Au from 103 metres  GRC0353 11 metres @ 1.78g/t Au from 100 metres

• At Montague , located 1.2km south of Whistler, a series of high-grade intersections have confirmed the presence of a significant high-grade gold mineralised structure immediately down-dip of the historical Montague open pit. Results from this program of RC drilling include (see Appendix 2 and 3 for details):

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

• 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  GRC360 3 metres @ 2.16g/t Au from 64 metres  GRC361 7 metres @ 1.56g/t Au from 78 metres  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. An extremely high-grade shoot has been defined within this broader zone of gold mineralisation and currently remains open down-plunge.

• Subsequent to Quarter-end, the Company announced that RC drilling completed in February had confirmed the presence of an extensive supergene zone of shallow oxide gold mineralisation at the Victory Creek Prospect, ~4km to the west of the Gidgee Gold Project open pits. The oxide gold mineralisation, as currently defined by wide-spaced drilling, extends over a strike length of at least 1km, is up to 300m wide and typically forms a flatlying supergene blanket up to 13m thick.

Significant drilling results from this extensive mineralised zone in current and historical drilling include:

• VCRC0001 7 metres @ 5.0g/t Au from 29 metres

• VRC031 5 metres @ 7.0g/t Au from 31 metres

• VRC048 4 metres @ 4.0g/t Au from 30 metres

• VRC068 6 metres @ 6.3g/t Au from 40 metres

• VRC034 5 metres @ 3.4g/t Au from 33 metres

• VRC072 1 metre @ 22.5g/t Au from 26 metres

• VRC025 13 metres @ 1.8g/t Au from 67 metres  VRC003 4 metres @ 7.1g/t Au from 20 metres

• The presence of shallow gold mineralisation at Victory Creek demonstrates the potential for the Gidgee Gold Project to host significant near-surface oxide gold deposits.

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Figure (1): Gidgee Gold Project Location Plan

WHISTLER GOLD DEPOSIT

• During the quarter, results were reported for RC and diamond drilling programs completed in December 2018 and February 2019. The drilling was completed to confirm the presence and distribution of significant zones of thick, high-quality, gold mineralisation that remains open both at depth and along strike. The drilling results included (see Appendix 2 and 3 for detail):

• GRC0346 21 metres @ 5.30g/t Au from 149 metres

• GRC0354 15 metres @ 4.51g/t Au from 119 metres

• GRC0364 8 metres @ 6.04g/t Au from 190 metres

• GRC0343 6 metres @ 14.5g/t Au from 198 metres  GRC0356 26 metres @ 2.61g/t Au from 126 metres  GRC0355 18 metres @ 2.85g/t Au from 114 metres  GRC0345 32 metres @ 1.21g/t Au from 125 metres

• GRC0344 8 metres @ 1.10g/t Au from 103 metres

• GRC0353 11 metres @ 1.78g/t Au from 100 metres  GDD011 15.4 metres @ 2.94g/t Au from 128 metres (including 6m @ 5g/t Au)

• These results continue to enhance the mineralisation in the base of the historical pit and confirm extensions of the high-grade domain at depth (Figure 2). This information, along with preliminary metallurgical and geotechnical data, will be utilised in a resource estimation process that is currently underway.

• In addition, diamond drilling demonstrates the potential for significant extensions to the south of the currently defined mineralised envelope. A broad zone of mineralisation was intersected in a faulted off-set position (Figures 2 and 3) that now opens up the potential in this position.

2

• The gold mineralisation in this position remains totally open along strike and at depth below the flat cross-cutting fault (Figure 3). The next phase of drilling will include a series of holes targeted into these positions.

• Additional mineralisation has been intersected in the flat cross-cutting faults in both the granodiorite and mafic volcanic rocks. Additional assessment of these zones is required as they have strong similarities to the highgrade structures being drilled at the Montague Gold Deposit (where recent drilling intersected 6m @ 45.5g/t)[1] .

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Figure (2): Whistler Gold Deposit – Long Section

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Figure (3): Whistler Gold Deposit – Cross-Section

1 ASX announcement dated 27th March 2019

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• An assessment of the granodiorite litho-structural contact south of Whistler has demonstrated potential for this horizon to be mineralised over a total strike length of up to ~1.25km (Figure 4). Shallow historical drilling has intersected highly anomalous mineralisation on or near the contact of the granodiorite. Significant results include (see Appendix 2 and 3 for detail):

• WRC_p204* 6 metres @ 5.53g/t Au from 10 metres

• 86MORC46* 14 metres @ 1.25g/t Au from 0 metres

• WRC_p210* 6 metres @ 1.50g/t Au from 4 metres

• C87RB103* 6 metres @ 1.66g/t Au from 12 metres

• 86MORC41* 6 metres @ 1.85g/t Au from 11 metres (* Historical drilling results – See Appendix 2)

• Systematic drill testing is now required to test along this contact zone with a particular initial focus immediately beneath the historical drilling intercepts.

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Figure (4): Whistler Prospect Gold Deposit – Expanded Long Section

MONTAGUE GOLD DEPOSIT

• The RC drilling programs completed during the quarter continue to confirm the presence of a significant highgrade 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 5):

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)

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

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• 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.

• °

• • 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, high-grade 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. 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 (5): Montague Gold Project Gold Distribution Plan

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VICTORY CREEK PROSPECT

• Subsequent to the end of the Quarter, the Company reported that recent RC drilling at the Victory Creek Prospect had confirmed the presence of an extensive supergene zone of shallow high-grade oxide gold mineralisation. Significant drilling results from this extensive mineralised zone in current and historical drilling include (see Appendix 2 and 3 for detail):

• VCRC0001 7 metres @ 5.0g/t Au from 29 metres

• VRC031 5 metres @ 7.0g/t Au from 31 metres  VRC048 4 metres @ 4.0g/t Au from 30 metres  VRC068 6 metres @ 6.3g/t Au from 40 metres  VRC034 5 metres @ 3.4g/t Au from 33 metres  VRC072 1 metre @ 22.5g/t Au from 26 metres  VRC025 13 metres @ 1.8g/t Au from 67 metres  VRC003 4 metres @ 7.1g/t Au from 20 metres

• The identification of significant oxide gold mineralisation is considered to be an important development for the overall project and presents as a major new exploration and resource evaluation opportunity for Gateway in addition to the emerging primary gold deposits at the Whistler and Montague and elsewhere along the prospective Montague Granodiorite.

• The mineralisation is currently drill defined over a strike length of at least 1km and is up to 300m wide.

• The mineralisation is typically in the form of a flat-lying supergene blanket at an average depth of approximately 35-40m below surface.

• The defined mineralisation remains open along strike and there is excellent potential to identify parallel zones.

• The free-milling nature of the oxide mineralisation has been confirmed by preliminary metallurgical test work comprising accelerated cyanide partial leach assays.

• The gold mineralisation is interpreted to potentially be part of a remobilised gold cap over a copper-zinc base metal system in the fresh rock.

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Figure (6): Location and Drill Summary Plan showing Victory Creek in relation to the Montague and Whistler Prospect

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REGIONAL PROJECTS

No exploration activity was undertaken on the Company’s regional exploration projects during the reporting period.

BRYAH BASIN

During the Quarter the Company advised that it had entered into an option agreement for the sale of its exploration licences in the Bryah Basin district of Western Australia as part of its strategy of crystallising value from its portfolio of non-core exploration assets while maintaining a strong focus on gold exploration and development at its flagship Gidgee Gold Project.

The Company, through its wholly-owned subsidiary Omni Projects Pty Limited ( Omni Projects ), entered into a conditional option agreement ( Transaction ) with Dingo Resources Limited ( Dingo ) under which Dingo has an exclusive option to acquire Omni Project’s interests in E51/1738, E51/1842, E52/3273 and E52/3510 ( Tenements ) ( Option Agreement ).

Under the terms of the Option Agreement, in consideration for a non-refundable option fee of AUD$75,000, Dingo has an exclusive six-month option ( Initial Option Term ) to acquire the Tenements ( Option ).

Dingo may at any time prior to expiry of the Initial Option Term elect to extend the Option by a further three months ( Second Option Term ) by providing written notice to the Company. Dingo may at any time prior to expiry of the Second Option Term elect to extend the Option by a further three months by providing written notice to the Company and paying a further non-refundable option fee of AUD$25,000. This will result in Dingo having an aggregate 12month Option to acquire the Tenements ( Term ).

The exercise of the Option by Dingo is conditional and subject to:

• (a) Dingo completing a capital raising via an Initial Public Offer prospectus and raising sufficient funds in order to list on the Australian Securities Exchange ( ASX ); and

• (b) The ASX confirming to Dingo in writing that it will grant Dingo conditional approval to list on ASX on terms reasonably acceptable to Dingo.

(Collectively, the Conditions ).

Subject to the satisfaction or waiver of the Conditions, Dingo may at any time during the Term exercise the Option by providing written notice to the Company and enter into a binding tenement sale agreement ( Tenement Sale Agreement ), and pay to the Company the following consideration:

• (a) ( Cash Consideration ): cash consideration of A$300,000;

• (b) ( Share Consideration ): 3,000,000 fully-paid ordinary shares in the capital of Dingo at a deemed issue price of $0.20 per share, subject to a voluntary escrow period of twelve months; and

• (c) ( Royalty Consideration ): the grant of a 1.5% net smelter royalty over the Tenements.

Completion will occur three business days after the execution of the Tenement Sale Agreement or such other date as agreed in writing between the parties ( Completion ).

During the Term and in the event of exercise of the Option, then until Completion, Dingo shall be solely responsible for:

• (a) maintaining the Tenements in good standing in accordance with all applicable laws including minimum expenditure requirements being met and the payment of all rates and rents; and

• (b) all rehabilitation of the Tenements including all costs relating to rehabilitation of the Tenements. In the event that Dingo does not exercise the Option, it will only be responsible for rehabilitation of work actually carried out by it on the Tenements during the Term.

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EDJUDINA PROJECT

Subsequent to the reporting period, the Company announced that it had entered into an option agreement for the sale of its Edjudina Project exploration licences in the Laverton Region of Western Australia as part of its strategy of crystallising value from its portfolio of non-core exploration assets while maintaining a strong focus on gold exploration and development at its flagship Gidgee Gold Project.

The Company, through its wholly-owned subsidiary Omni Projects, entered into a conditional option agreement ( Transaction ) with ASX listed Trek Metals Limited (ASX:TKM) ( Trek ) under which Trek has an exclusive option to acquire Omni Project’s interests in E39/1765, E39/1882, E31/1150 and E31/1134 ( Tenements ) ( Option Agreement ).

Under the terms of the Option Agreement, in consideration for a non-refundable option fee of A$10,000, Trek has an exclusive six-month option ( Option Term ) to acquire the Tenements ( Option ). Trek must also conduct a minimum $100,000 of expenditure on the Tenements, which includes drilling commencing within three months of signing the Option Agreement ( Minimum Expenditure ).

Completion of the Transaction is subject to a number of conditions precedent ( Conditions ).

Subject to the satisfaction or waiver of the Conditions, Trek may at any time during the Option Term exercise the Option by providing written notice to the Company, and pay to the Company the following consideration:

• (a) ( Cash Consideration ): cash consideration of A$50,000;

• (b) ( Share Consideration ): equivalent of A$200,000 of Trek shares calculated based on a 5-day VWAP, subject to a voluntary escrow period of six months; and

• (c) ( Royalty Consideration ): the grant of a 1.5% net smelter royalty over the Tenements (payable after the first production of 200,000 ounces of Au).

Completion will occur five business days after all of the Conditions have been satisfied or waived by the parties ( Completion ).

Subject to Completion occurring and Trek making a public announcement of an indicated JORC resource of more than 400,000 ounces of gold (or an equivalent mineral product) ( Public Announcement ), The Company will receive the following deferred consideration:

• (a) ( Cash Payment ): a cash payment of A$1,000,000 payable within 14 days of the Public Announcement; and

• (b) ( Cash or Share Payment ): A$3,000,000 in cash or Trek shares (valued at a 5 day VWAP) at Trek’s absolute discretion payable within 14 days of a public announcement of a decision to mine.

During the Option Term and in the event of exercise of the Option, then until Completion, Trek shall be solely responsible for:

• (a) maintaining the Tenements in good standing in accordance with all applicable laws including the Minimum Expenditure requirements being met. Trek must contribute the Minimum Expenditure regardless of whether or not it exercises the Option; and

• (b) all rehabilitation of the Tenements including all costs relating to rehabilitation of the Tenements. In the event that Trek does not exercise the Option, it will only be responsible for rehabilitation of work actually carried out by it on the Tenements during the Option Term.

CARTERTON PROJECT

Subsequent to the reporting period, the Company entered into an option agreement for the sale of its exploration licence located at the northern end of the Southern Cross Greenstone Belt in Western Australia. The transaction is consistent with its strategy of crystallising value from its portfolio of non-core exploration assets while maintaining a strong focus on gold exploration and development at its flagship Gidgee Gold Project.

The Company entered into a conditional option agreement ( Transaction ) with ASX-listed Syndicated Metals Limited (ASX: SMD) ( SMD ) under which SMD has an exclusive option to acquire Omni Projects’ interests in E77/2309 ( Tenement ) ( Option Agreement ).

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Under the terms of the Option Agreement, in consideration for a non-refundable option fee of AUD$10,000, SMD has an exclusive 12-month option ( Initial Option Term ) to acquire the Tenement ( Option ).

SMD may at any time prior to expiry of the Initial Option Term elect to extend the Option by a further 12 months ( Second Option Term ) by providing written notice to the Company and paying a further non-refundable option fee of AUD$10,000. This will result in SMD having an aggregate 24-month Option to acquire the Tenement ( Term ).

SMD may at any time during the Term exercise the Option by providing written notice to the Company and enter into a binding tenement sale agreement ( Tenement Sale Agreement ), and pay to the Company the following consideration:

• (a) ( Cash or share Consideration ): A$300,000 payable in cash or SMD shares (valued at a 5-day VWAP) at Gateway’s absolute discretion; and

• (b) ( Royalty Consideration ): the grant of a 1.5% gross revenue royalty over the Tenement.

Completion will occur five business days after the exercise of the Option or such other date as agreed in writing between the parties ( Completion ). During the Term and in the event of exercise of the Option, then until Completion, SMD shall be solely responsible for:

• (a) Maintaining the Tenement in good standing in accordance with all applicable laws including minimum expenditure requirements being met and the payment of all rates and rents; and

• (b) All rehabilitation of the Tenement required as a result of its activities on the Tenement including all costs relating to such rehabilitation.

TENEMENTS

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

CAPITAL RAISING

Subsequent to the reporting period, on 10 April 2019 the Company announced that it had successfully completed a capital raising of A$2.0 million (before costs) ( Placement ) to institutional, professional and sophisticated investors to underpin a major new phase of drilling and exploration at the Gidgee Gold Project.

The Placement, which comprised the issue of 154,988,385 shares at an issue price of $0.013 per share, was strongly supported by existing and new investors including, subject to shareholder approval, by the Company’s directors.

The proceeds of the Placement underpin a major new phase of drilling and exploration at the Gidgee Gold Project. The new exploration program will build on the Company’s drilling success over the past 12 months, focusing on an impressive pipeline of targets ranging from advanced prospects such as Whistler and Montague to the emerging potential of the Montague Granodiorite contact – where Gateway is targeting large-scale gold potential – plus a suite of shallow regional targets with the potential to host a significant oxide gold component.

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): 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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APPENDIX (2): TABLE OF SIGNIFICANT DRILLING INTERSECTIONS

Whistler Gold Deposit Significant Drilling Results	Whistler Gold Deposit Significant Drilling Results	Whistler Gold Deposit Significant Drilling Results	Whistler Gold Deposit Significant Drilling Results	Whistler Gold Deposit Significant Drilling Results	Whistler Gold Deposit Significant Drilling Results	Whistler Gold Deposit Significant Drilling Results	Whistler Gold Deposit Significant Drilling Results	Whistler Gold Deposit Significant Drilling Results	Whistler Gold Deposit Significant Drilling Results	Whistler Gold Deposit Significant Drilling Results	Whistler Gold Deposit Significant Drilling Results
Prospect	HoleJD	MGA_E	MGA_N	RL	Dip	Azi	EOH (m)	From (m)	To (m)	Width (m)	Au (g/t)
Whistler	GRC0343	751728	6968140	500	-59	270	263	198	204	6	14.5
Whistler	GRC0344	751703	6968059	500	-50	270	143	103	111	8	1.1
Whistler	GRC0345	751712	6968060	500	-59	272	183	125	157	32	1.2
Whistler	GRC0346	751710	6968142	500	-60	270	243	149	170	21	5.3
								177	178	1	19.9
								186	187	1	5.3
Whistler	GRC0350	751742	6968055	500	-60	270	263	-	-	-	NSR
Whistler	GRC0353	751696	6968090	500	-50	270	111	100	111	11	1.8
Whistler	GRC0354	751698	6968123	500	-57	270	177	119	134	15	4.5
Whistler	GRC0355	751698	6968112	500	-56	270	153	114	132	18	2.9
Whistler	GRC0356	751699	6968087	500	-58	272	177	126	152	26	2.6
Whistler	GRC0364	751726	6968130	500	-58	272	245	190	198	8	6.0
Whistler	GDD011	751707	6968009	513	-60	270	200.2	128	143.4	15.4	2.94
Whistler	GRB2465	751792	6967802	513	-60	270	38	30	38	8	0.33
Whistler	86MORC41	751803	6967580	513	-60	90	34	11	17	6	1.85
Whistler	C87RB103	751819	6967512	513	-90	0	18	12	18	6	1.66
Whistler	5130/6710	751690	6967303	513	-90	0	28	22	28	6	0.94
Whistler	WRC_p204	751689	6967217	513	-60	90	26	10	16	6	5.53
Whistler	86MORC46	751714	6967211	513	-60	90	25	0	14	14	1.25
Whistler	86MORC45	751700	6967205	513	-60	90	25	15	19	4	1.2
Whistler	WRC_p214	751728	6967204	513	-90	0	22	4	6	2	3
Whistler	WRC_p210	751720	6967188	513	-60	315	22	4	10	6	1.5

GRC0348, GRC0351 and GRC352 were drilled as RC pre-collars in anticipation of follow-up diamond drilling. All holes reported as downhole widths

			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	GRC0342	750820	6966910	504	-90	0	227	89	98	9	4.24
Montague	GRC0357	750820	6966941	503	-90	0	130	104	109	5	11.49
Montague	GRC0358	750820	6966941	503	-60	90	111	75	77	2	5.8
Montague	GRC0359	750857	6966840	500	-90	0	124	86	88	2	1.58
Montague	GRC0360	750857	6966840	500	-60	90	105	64	67	3	2.16
Montague	GRC0361	750843	6966882	502	-90	0	124	78	85	7	1.56
Montague	GRC0362	750843	6966882	502	-60	90	99	53	58	5	0.9
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

11

Table 1: Significant Drilling Results from

Table 1: Significant Drilling Results from	Table 1: Significant Drilling Results from	Table 1: Significant Drilling Results from	Table 1: Significant Drilling Results from	Table 1: Significant Drilling Results from	Table 1: Significant Drilling Results from	Table 1: Significant Drilling Results from	Table 1: Significant Drilling Results from	Table 1: Significant Drilling Results from	Table 1: Significant Drilling Results from	Table 1: Significant Drilling Results from	Table 1: Significant Drilling Results from
Prospect	HoleJD	MGA_E	MGA_N	RL	Dip	Azi	EOH (m)	From (m)	To (m)	Width(m)	Au(g/t)
Victory Creek	VCRC0001	747460	6967953	510	-90	0	48	29	36	7	5
Victory Creek	GRC182	748192	6968152	510	-60	90	76	30	32	2	2.8
Victory Creek	GRC200	748117	6968152	510	-60	90	171	37	38	1	4.7
Victory Creek	GRC277	748014	6968199	510	-60	90	208	62	65	3	1.2
Victory Creek	VRC003	747819	6968138	510	-60	48	84	20	24	4	7.1
Victory Creek	VRC017	747827	6968003	510	-60	48	84	47	48	1	4.1
Victory Creek	VRC023	747459	6968030	510	-60	135	84	60	63	3	2.6
Victory Creek	VRC025	747430	6968058	510	-60	135	84	67	80	13	1.8
Victory Creek	VRC027	747381	6968022	510	-60	317	84	50	53	3	4
Victory Creek	VRC031	747466	6967938	510	-60	317	78	31	36	5	7
Victory Creek	VRC033	747495	6967910	510	-60	317	88	38	39	1	3
Victory Creek	VRC034	747445	6967959	510	-60	135	78	33	38	5	3.4
Victory Creek	VRC035	747445	6967903	510	-60	317	78	30	33	3	1.1
Victory Creek	VRC048	747403	6967945	510	-60	317	78	30	34	4	4
Victory Creek	VRC054	747599	6968172	510	-60	135	78	62	65	3	1.4
Victory Creek	VRC065	747488	6967964	510	-60	90	81	42	45	3	1.5
Victory Creek	VRC068	747448	6967964	510	-60	90	81	40	46	6	6.3
Victory Creek	VRC072	747368	6967965	510	-60	90	79	26	27	1	22.5
Victory Creek	VRC075	747800	6968120	510	-60	270	81	29	35	6	2.9
Victory Creek	VRC078	747860	6968119	510	-60	270	81	24	30	6	1.3

12

APPENDIX (3): 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 methodology was applied to accountfor a recognized coarsegold component within the

Criteria	JORC Code explanation	Commentary
		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. Typically a minimum 3kg sample was provided to the laboratory for assay. Samples considered fit for purpose.

14

Criteria	JORC Code explanation	Commentary
Logging	• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • 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. • Quality control for maximising representivity of samples included sample weights, insertion of field duplicates and laboratory duplicates.

15

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. 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. QA/QC data is not currently available.

16

Criteria	JORC Code explanation	Commentary
		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: All information referred in this report not collected in this currentprogram has been

17

Criteria	JORC Code explanation	Commentary
		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 perpendicular 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. 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 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.)

18

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.

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
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.	•	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
				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._
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 lowgrade results, theprocedure usedfor such aggregation should

19

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		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.
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
		extensions or large-scale step-out drilling).	•	Deeper diamond drilling to fully assess the underground potential/extension of the
	•	Diagrams clearly highlighting the areas of possible extensions, including the main		known high grade mineralised core.
		geological interpretations and future drilling areas, provided this information is not
		commercially sensitive.

20

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

+Rule 5.5

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16

Name of entity

Gateway Mining Limited

ABN Quarter ended (“current quarter”)

31 008 402 391

31[st] March 2019

Consolidated statement of cash flows	Current quarter $A’000	Year to date $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Research and development refunds 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities	- (650) (99) (143) 3	75 (1,959) (265) (444) 6
	(889)	(2,587)
2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets

• See chapter 19 for defined terms

Page 20

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Consolidated statement of cash flows	Current quarter $A’000	Year to date $A’000
2.2 Proceeds from the disposal of: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities
	-	-
3. Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities	- -	1,500 (82)
	-	1,418
4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period	1,332 (889) - -	1,612 (2,587) - 1,418
	443	443

• See chapter 19 for defined terms

Page 21

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	443	1,332
	443	1,332
6. Payments to directors of the entity and their associates Current quarter $A'000 6.1 Aggregate amount of payments to these parties included in item 1.2 80 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 Nil 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2
		Current quarter $A'000
		80
		Nil
Director’s fees

7.	Payments to related entities of the entity and their	Current quarter
	associates	$A'000
7.1	Aggregate amount of payments to these parties included in item 1.2	198
7.2	Aggregate amount of cash flow from loans to these parties included	Nil
	in item 2.3
7.3	Include below any explanation necessary to understand the transactions included in
	items 7.1 and 7.2

Omni GeoX Pty Ltd for geological services; Enrizen Accounting Pty Ltd for company secretarial and accounting services; Enrizen Lawyers Pty Ltd for legal services; and Enrizen Services Pty Ltd for website design services.

• See chapter 19 for defined terms

Page 22

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Appendix 5B Mining exploration entity and oil andgas exploration entity quarterly report	oil andgas exploration	Appendix 5B entity quarterly report
8. Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 8.1 Loan facilities 8.2 Credit standby arrangements 8.3 Other (please specify) 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000

9. Estimated cash outflows for next quarter	$A’000
9.1 Exploration and evaluation 9.2 Development 9.3 Production 9.4 Staff costs 9.5 Administration and corporate costs 9.6 Other (provide details if material) 9.7 Total estimated cash outflows	800 50 130
	980

10. Changes in tenements (items 2.1(b) and 2.2(b) above)	Tenement reference and location	Nature of interest	Interest at beginning of quarter	Interest at end of quarter
10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced	Nil
10.2 Interests in mining tenements and petroleum tenements acquired or increased	Nil

• See chapter 19 for defined terms

Page 23

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Sign here: .....SIGNATURE ON FILE..... Date: 29 April 2019 (Company secretary)

Print name: ......Kar Chua...................

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms

Page 24