GBM RESOURCES LIMITED. — Capital/Financing Update 2017

Apr 26, 2017

ABN 91 124 752 745

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ASX Release

27 April 2017

ASX Code: GBZ

Koala Deposit Drilling Update, Mt Coolon Gold Project

• The Stage 2 drilling program (9 holes for 363 metres) has now been completed and has identified gold mineralisation in a range of settings in and adjacent to the historic mine workings in the central area of the Koala Gold Deposit.

• Data from both Stage 1 & 2 drilling will be used to support the reestimation of the resource for the central Koala Gold Mine area.

• Resource estimation, metallurgical testwork, geotechnical studies, waste rock geochemistry remain on track to support a feasibility study for the recommencement of mining operations at the Koala and Glen Eva Gold Mines.

Australian Resources company GBM Resources Limited (ASX: GBZ ) (“ GBM ” or “ the Company ”) is pleased to advise that stage 2 assay results from the recently completed drilling program at the Koala Deposit have been received.

COMPANY DIRECTORS

Peter Thompson Managing Director/ Executive Chairman

Neil Norris Exploration Director – Executive

Hun Seng Tan Non- Executive Director

CONTACT DETAILS

Principal & Registered Office Suite 8, 7 The Esplanade, Mt Pleasant, WA 6153

Exploration Office 10 Parker Street, Castlemaine, Victoria 3450

Website www.gbmr.com.au

Email

info@gbmr.com.au Phone +61 (8) 9316 9100

Fax +61 (8) 9315 5475

Koala Drilling

Drilling was designed to provide additional geological data and sample material for a range of testing in the central deposit area which was operated as an underground gold mine during the 1930’s by Gold Mines of Australia Limited. In total, the program comprised 35 diamond drill-holes for 1,983 metres of drilling (refer ASX announcement 20 December 2016 for details of the Koala Stage 1 drill program) .

Phone (Exploration Office) +61 (3) 5470 5033

The second stage of drilling completed during the March Quarter comprised 9 holes for a total of 363 metres of diamond drilling.

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Of the 35 holes completed in stages 1 and 2, 23 holes returned significant intersections (greater than 1 metre down hole at greater than 0.5 g/t Au). Drill holes intersected mineralisation in a variety of settings including; both hanging and footwall to the stopes, stope pillars, stope fill and in parallel lode structures.

Significant stage 2 intersections were:

Hole ID	Downhole Intersection	Gram Metres
KLRD0027 KLRD0028 KLRD0031 KLRD0032	3.1m@2.0g/t from 56.6m 14m@1.8g/t from 79m ( incl. 1.9m @4.3g/t from 79.5) 8m@22.5g/t from 19m ( incl. 2m@85g/t from 24m) 1.4m@2g/t from 68m	6.2 25.2 180 2.8

A complete list of stages 1&2 drill holes is summarised in a tabled at the end of this release.

Results from the 9 hole Stage 2 drilling program (hole numbers from KLDR0027 upwards) included 8 metres down hole averaging 22.5 g/t Au from 19 metres, including 2 metres averaging 85 g/t Au in KLRD0031. This intersection passed through a small pillar located adjacent to the main shaft (see longitudinal projection) and provides an insight into the nature of the high grade ore mined during the 1930’s and an indication of the potential of this mineralising system to yield very high grades.

A number of holes in the Stage 1 program intersected mineralisation adjacent to the stopes exploited during mining in the 1930’s. A series of 5 very shallow drill holes in the Stage 2 program tested this position close to surface (less than 15 metres) and indicated that localised near surface stope collapse has occurred suggesting that this material will now be located as stope fill at lower levels in the existing mine workings. Detailed interpretation is progressing to develop improved models for mineralisation and past mining voids and fill.

The Longitudinal projection below shows a more detailed revision of the underground workings with a number of pillars of mineralised material now identified that were not included in the previous resource estimate. Further work is ongoing to identify as much detail regarding historic mining activities as possible to assist in upgrading the understanding of any additional areas of potential ore remaining within the Koala deposit.

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Photo: KLRD0031 intense silicification and local feldspar alteration of andesitic rock in the hanging-wall of the main Koala lode vein. Banded, oxidised quartz-limonite vein from 24m returned 2m @ 85 g/t Au representing a small pillar of remnant ore near the old main shaft.

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Figure: Koala Stopes Long Projection showing all historic and GBM Phase 1 & 2 drill hole pierce points. Significant intersections (>5 GM true width) are annotated with grade and true width.

Future Work

The company is currently focussing on a range of studies and activities required to fully assess the feasibility of recommencing mining at Mount Coolon with mining to be conducted on all resource areas; Koala, Glen Eva and Eugenia.

With the receipt of all drill results re-interpretation, modelling and resource estimation is underway for both Koala and Glen Eva deposits. This work is scheduled for completion during the June Quarter. This will allow reoptimisation of the proposed pits for each of these deposits. This in conjunction with geotechnical data and test work, metallurgical testwork and waste rock characterisation will form the basis for more detailed mine planning and economic analyses. A high level review of potential underground mining options for deeper parts of the Koala deposit is also nearing completion and is expected during the June Quarter.

A further round of ecological monitoring of the Koala and Glen Eva mine areas to support environmental assessment of the potential impacts of any proposed future mining activities will be scheduled for early in the June quarter.

Desktop analyses of surface and groundwater characteristics of the area in addition to sampling of available groundwater and surface waters after recent rains in the area is now in progress.

Discussions with potential toll milling service providers and are ongoing and remain positive. The metallurgical data now being generated from test work in progress will be progressively provided and will be critical to advancing the toll milling options. The company is also investigating options for construction of a mill on site at Koala which would reduce transport costs and may provide for treatment of lower grade ores in the longer term.

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Figure: Koala Central area drill collar plan showing all completed drill holes from Phase 1 & 2 with drill traces projected to surface. Also visible are the open stopes remaining from previous mining of the deposit during the 1930’s.

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Figure: Mt Coolon Gold Project tenement group location plan.

For Further information please contact:

Peter Thompson Karen Oswald Managing Director Marko Communications GBM Resources Limited Tel: 0423 602 353 Tel: 08 9316 9100 Email: Karen.oswald@markocommunications.com.au

About GBM Resources

GBM Resources Ltd (ASX: GBZ) is an Australian resource company that listed on the ASX in 2007, headquartered in Perth WA, with exploration operations in Queensland and Victoria.

The Company’s primary focus is in key commodities of gold and copper-gold, assets in Australia. GBM tenements cover an area greater than 3,200 square kilometres in eight major projects areas in Queensland and Victoria.

GBM is prioritising the exploration and development of the Mount Coolon Gold Project and Mount Morgan Gold Copper Project.

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Mt Coolon Project Resource Summary (Refer ASX Announcement 23 August 2016)

Project	Location	Resource Category	Resource Category	Resource Category	Resource Category	Resource Category	Resource Category	Resource Category	Resource Category	Resource Category	000' t Aug/t Au ozs Total	000' t Aug/t Au ozs Total	000' t Aug/t Au ozs Total	Cut-off
		000' t Aug/t Au ozs Measured			000' t Aug/t Au ozs Indicated			000' t Aug/t Au ozs Inferred
Koala	Open Pit				370	2.8	33,500	750	2.1	51,700	1,110	2.4	85,000	0.4
	Underground Extension				50	3	5,100	230	3.9	28,500	280	3.7	33,700	2.0
	Tailings	114	1.6	6,200	9	1.6	400				124	1.6	6,600	1
	Total	114 1.7 6,200 429 2.8 39,000 980 2.5 80,200 1,514 2.6 125,300
Eugenia	Oxide				1,305	0.9	39,300	219	0.7	5,100	1,524	0.9	44,400	0.4
	Sulphide				2,127	0.9	62,300	1,195	1.2	45,500	3,322	1.0	107,800	0.4
	Total	3,432 0.9 101,600 1,414 1.1 50,600 4,846 1.0 152,200 0.4
Glen Eva	Belowpit.				132	7.8	33,200	21	5.9	4,000	154	7.5	37,200	3.0
Total		114 1.7 6,200 3,993 1.4 173,800 2,415 1.7 134,800 6,514 1.5 314,700

Table: Current global resource table for Mt Coolon Gold Project. Please note rounding; tonnes (1,000t), grade (0.1g/t) and contained gold (100 ounces).

Notes

The information in this report that relates to Mineral Resources, Exploration Targets and Exploration Results is based on information compiled by Neil Norris, who is a Member of The Australasian Institute of Mining and Metallurgy and The Australasian Institute of Geoscientists. Mr Norris is a full-time employee of the company, and is a holder of shares and options in the company. Mr Norris has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Norris consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The Company confirms that the form and context in which the Competent Persons findings are presented have not been materially modified from the original market announcements.

The Company confirms that it is not aware of any new information or data that materially affects the information included in the respective announcements and all material assumptions and technical parameters underpinning the resource estimate with those announcements continue to apply and have not materially changed

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Project	Project	Hole Location	Hole Location	Hole Location	Hole Location	Hole Location	Hole Location	Hole Location	Hole Orientation(Local Grid)	Hole Orientation(Local Grid)	Hole Orientation(Local Grid)	Mineralisation Intersection	Mineralisation Intersection	Mineralisation Intersection	Mineralisation Intersection	Mineralisation Intersection	Mineralisation Intersection
Project	Phase	Hole_ID	Local_E	Local_N	**Local RL_m **	MGA_E	MGA_N	RL_m	**Azimuth⁰ **	Dip⁰	**EOH Depth_m **	m_From	m_To	**DH Length_m **	True Width_m	Gradeg/t Au	G*M True Widt
Koala Stopes	1	KLRD0001	10016	9975	999	536804.7	7632873.1	281.1	270	-50	29.3	28	29.3	1.3	0.4	1.6	0.6
Koala Stopes	1	KLRD0002	10016	9925	1003	536839.2	7632837.0	285.1	270	-50	47.5	44	47.5	3.5	1.2	14.7	17.3
												46	46.9	0.9	0.3	55.7	16.7
Koala Stopes	1	KLRD0003	9988	10225	987	536611.6	7633034.3	269.1	90	-50	35.6	18	19	1	0.6	1.4	0.8
												26	28.3	2.3	1.3	1.5	2.0
Koala Stopes	1	KLRD0004	9967	10225	987	536596.5	7633019.8	269.1	90	-50	59.6	NSI					0.0
Koala Stopes	1	KLRD0005	9961	10125	995	536661.3	7632943.5	277.1	90	-50	68.6	18	19	1	0.5	4.2	2.1
												28	50	22	11.3	2.0	22.5
												41.3	46	4.7	2.4	6.5	15.7
Koala Stopes	1	KLRD0006	9957	10125	996	536658.4	7632940.7	278.1	90	-60	53.5	NSI					0.0
Koala Stopes	1	KLRD0007	9975	10025	998	536740.5	7632880.9	280.1	90	-50	43.1	25	28	3	2.1	7.1	15.0
												26	27	1	0.7	19.3	13.7
												30.2	34	3.8	2.7	3.1	8.4
												30.2	31	0.8	0.6	11.4	6.5
Koala Stopes	1	KLRD0008	9962	10025	1000	536731.1	7632871.9	282.1	90	-60	58.2	NSI					0.0
Koala Stopes	1	KLRD0009	9961	9925	1007	536799.5	7632799.0	289.1	90	-65	54.3	49	50.4	1.4	1.0	0.8	0.8
Koala Stopes	1	KLRD0010	9948	9875	1016	536824.7	7632753.9	298.1	90	-60	65.7	NSI
Koala Stopes	1	KLRD0011	9968	9975	1004	536770.0	7632840.0	286.1	90	-60	39.5	NSI
Koala Stopes	1	KLRD0012	9951	9975	1004	536757.7	7632828.2	286.1	90	-65	86.8	64.8	65.3	0.5	0.4	7.4	3.0
												67.4	70.1	2.7	2.0	3.9	7.8
												67.4	68.5	1.1	0.8	8.6	6.9
												71.5	76	10	7.4	0.7	5.2
Koala Stopes	1	KLRD0013	9967	9875	1013	536838.4	7632767.1	295.1	90	-55	43.5	18	19	1	0.8	1.3	1.0
Koala Stopes	1	KLRD0014	9954	9825	1016	536863.6	7632722.0	298.1	90	-55	41.3	30	34	4	3.2	3.5	11.2
												30.6	31.3	0.7	0.6	16.4	9.8
Koala Stopes	1	KLRD0015	9950	9825	1018.5	536860.7	7632719.2	300.6	90	-73	70.2	52.7	54	1.3	0.9	0.8	0.7
Koala Stopes	1	KLRD0016	9976	10175	990	536637.5	7632989.9	272.1	90	-50	30	NSI
Koala Stopes	1	KLRD0017	9965	10175	990	536629.6	7632982.3	272.1	90	-60	42.6	38.5	42.4	3.7	1.6	1.5	2.4
Koala Stopes	1	KLRD0018	10028	10125	991	536709.7	7632989.8	273.1	270	-55	79.8	64	66	2	1.0	2.4	2.4
												69.2	70.7	1.5	0.8	12.5	9.4
												71.7	72.5	0.8	0.4	44.2	17.7
												73.7	75	1.3	0.7	1.4	1.0
Koala Stopes	1	KLRD0019	10029	10025	998	536779.5	7632918.2	280.1	270	-50	67.1	NSI
Koala Stopes	1	KLRD0020	9960	10075	997	536695.1	7632906.7	279.1	90	-50	57.3	36	38	2	1.5	1.1	1.7
												51.3	57.3	6	4.5	1.7	7.7
												55.9	57.3	1.4	1.0	3.4	3.4
Koala Stopes	1	KLRD0021	9956	10075	997	536692.2	7632903.9	279.1	90	-60	80.7	49.6	51	1.4	0.9	5.9	5.3
												69	77	8	4.9	1.1	5.4
												71.7	72.6	0.9	0.6	6.7	4.0
Koala Stopes	1	KLRD0022	9935	9925	1011	536780.7	7632781.1	293.1	90	-60	92.7	58	59	1	0.7	2.4	1.7
												70	71	1	0.7	6.7	4.7
												74.7	75.7	1	0.7	2.6	1.8
												79.8	80.6	0.8	0.6	4.5	2.7
												86.5	86.8	0.3	0.2	4.9	1.0
												89.1	91	1.9	1.4	1.3	1.8
Koala Stopes	1	KLRD0023	10021	10175	989	536670.0	7633021.0	271.1	270	-50	56.3	41	45	4	2.8	1.9	5.3
Koala Nth Pit	1	KLRD0024	9893.2	10350	991.5	536456.8	7633059.1	273.6	90	-35	212.3	187	195	8	6.7	3.1	20.8
												194	195	1	0.84	6.5	5.5
												206.4	209	2.6	2.18	12.3	26.8
												206.4	207.5	1.1	0.92	24.8	22.8
Koala Nth Pit	1	KLRD0025	10215	10400	983	536654.6	7633317.6	265.1	270	-30	23.5	Not Assayed
Koala Nth Pit	1	KLRD0026	10220	10400	983	536654.6	7633317.6	265.1	270	-35	81.35	Not Assayed
Koala Stopes	2	KLRD0027	9955.282	10100.01	995.175	536674.4	7632921.5	277.3	90	-50	71.3	56.6	59.7	3.1	2.2	2	4.4
Koala Stopes	2	KLRD0028	9952.025	10100.08	995.318	536672	7632919.3	277.4	90	-63	101.7	79	93	14	7.4	1.8	13.3
												79.45	81.35	1.9	1	4.3	4.3
Koala Stopes	2	KLRD0029	9968.158	10049.86	996.365	536718.4	7632894.1	278.5	90	-50	18.85	NSI
Koala Stopes	2	KLRD0030	9980.956	10024.47	998.938	536745.2	7632884.6	281.0	90	-35	13.8	NSI
Koala Stopes	2	KLRD0031	9982.258	10000.29	1000.031	536762.8	7632868.1	282.1	90	-50	32.69	19	27	8	6.4	22.5	144.0
												24	26	2	1.6	85	136.0
Koala Stopes	2	KLRD0032	9971.742	9950.132	1006.306	536789.9	7632824.6	288.4	90	-50	24.63	NSI
Koala Stopes	2	KLRD0033	9951.988	9950.12	1008.16	536775.6	7632810.9	290.3	90	-60	71.9	68	69.4	1.4	1.1	2	2.2
Koala Stopes	2	KLRD0034	9979.624	9975.029	1003.927	536778.4	7632848	286.0	90	-40	11.6	NSI
Koala Stopes	2	KLRD0035	9978.611	9974.967	1003.926	536777.7	7632847.3	286.0	90	-40	16.63	NSI

Table: Summary of Koala Phase 1& 2 stopes and north pit drill holes. Please note that co-ordinates are preliminary and subject to minor change on final survey pickup. Intersections are based on a 0.3g/t Cut-off and a maximum of 2 metres of included sub-grade material.

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JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data

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

Important Note:

This Table 1 refers to drilling completed at the Koala Project by MCGM in 2016 and 2017. Drilling and exploration has been carried out at Koala over a 30 year period by a variety of companies using varied drilling, sampling and assaying methods. Table 1 data has previously been reported for historic exploration in the 2016 MCGM Koala Resource Estimate Report.

Criteria	JORC Code explanation	Commentary
Sampling	• Nature and quality of sampling (eg cut channels, random chips, or	•Diamond core drilling was used to obtain HQ3 or WL66 (NQ2
techniques	specific specialised industry standard measurement tools appropriate	equivalent) size drill core. Core was cut at nominal 1m interval
	to the minerals under investigation, such as down hole gamma	lengths or at distinctive geological boundaries (e.g major quartz vein
	sondes, or handheld XRF instruments, etc). These examples should	margins) then half-sawn lengthways using a Corewise core saw. Half-
	not be taken as limiting the broad meaning of sampling.	core interval length samples were then bagged in labelled calico bags
	• Include reference to measures taken to ensure sample representivity	for laboratory shipment.
	and the appropriate calibration of any measurement tools or systems
	used.
	• Aspects of the determination of mineralisation that are Material to the
	Public Report.
	• In cases where ‘industry standard’ work has been done this would be
	relatively simple (eg ‘reverse circulation drilling was used to obtain 1
	m samples from which 3 kg was pulverised to produce a 30 g charge
	for fire assay’). In other cases more explanation may be required,
	such as where there is coarse gold that has inherent sampling
	problems. Unusual commodities or mineralisation types (eg
	submarine nodules) may warrant disclosure of detailed information.
Drilling	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air	•All drilling was completed using the Diamond Core method by an
techniques	blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple	Atlas Copco LM75 track-mounted drill rig (KLRD0024) or an Onram
	or standard tube, depth of diamond tails, face-sampling bit or other	1000/3 track mounted drill rig (KLRD0025, KLRD0026).
	type, whether core is oriented and if so, by what method, etc).	•Diamond core was recovered in a standard wireline core barrel using
		standard WL66 or HQ size equipment with a split-tube barrel
		assembly.
		•Samples were pushed out from the core barrel, and in the case of the
		triple-tube barrel, the top half split was removed and the core placed
		in a core tray of suitable dimension.
		•Alldiamond corewas oriented usingReflexdigitalorientationtools.
Drill sample	• Method of recording and assessing core and chip sample recoveries	•Larger diameter HQsize core was used wherepossible toprovide

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Criteria	JORC Code explanation	Commentary
recovery	and results assessed.	improved recovery for the majority of drilling and triple tube drilling
	• Measures taken to maximise sample recovery and ensure	was employed to preserve core in a more coherent state for
	representative nature of the samples.	logging and also to improve recovery in very broken or clayey
	• Whether a relationship exists between sample recovery and grade	lithologies. Short (1.5m) core barrels were used for short drill runs
	and whether sample bias may have occurred due to preferential	to assist recovery.
	loss/gain of fine/coarse material.	•Diamond drill recovery was recorded run by run using the aggregate
		of all >10cm core pieces per run method. Recovery was very good in
		competent lithology but was compromised in heavily fractured or
		puggy fault sheared ground close to the existing pit base.
		•The relationship between grade and drilling recovery will be
		investigated at the conclusion of the drilling program.
Logging	• Whether core and chip samples have been geologically and	•All diamond core was logged in detail for lithology, weathering,
	geotechnically logged to a level of detail to support appropriate	veining, quartz percentage, alteration, structure, colour and basic
	Mineral Resource estimation, mining studies and metallurgical	geotechnical parameters (RQD).
	studies.	•Logging of a selection of holes was also completed to advanced
	• Whether logging is qualitative or quantitative in nature. Core (or	geotechnical industry standards for pit design and mine planning.
	costean, channel, etc) photography.	•The logging has been carried out to an appropriate level for resource
	• The total length and percentage of the relevant intersections logged.	estimation.
		•All holes werephotographed from surface to EOH,both wet and dry.
Sub-	• If core, whether cut or sawn and whether quarter, half or all core	•All diamond core samples were cut with a diamond brick saw to 1.0 m
sampling	taken.	or geological intervals and half sampled using a Corewise core-
techniques	• If non-core, whether riffled, tube sampled, rotary split, etc and	cutting saw.
and sample	whether sampled wet or dry.	•Laboratory sample preparation for all samples followed the respective
preparation	• For all sample types, the nature, quality and appropriateness of the	laboratories standard methodologies for gold fire assay and multi-
	sample preparation technique.	element techniques.
	• Quality control procedures adopted for all sub-sampling stages to	•Quality control procedures for sampling were implemented
	maximise representivity of samples.	systematically; blanks and field duplicates were inserted every 10
	• Measures taken to ensure that the sampling is representative of the in	core samples (focused in mineralized zones), and standards were
	situ material collected, including for instance results for field	inserted every consecutive 20 sample run.
	duplicate/second-half sampling.	•Field duplicates consisted of quarter-cut core of equal interval length
	• Whether sample sizes are appropriate to the grain size of the material	to the primary half-core sample.
	being sampled.	•No measures were taken to ensure the representivityof the samples.
Quality of	• The nature, quality and appropriateness of the assaying and	•ALS Laboratories Au-AA25: A prepared sample is fused with a
assay data	laboratory procedures used and whether the technique is considered	mixture of lead oxide, sodium carbonate, borax, silica and other
and	partial or total.	reagents as required, inquarted with 6 mg of gold-free silver and then
laboratory	• For geophysical tools, spectrometers, handheld XRF instruments, etc,	cupelled to yield a precious metal bead. The bead is digested in 0.5
tests	the parameters used in determining the analysis including instrument	mL dilute nitric acid in the microwave oven. 0.5 mL concentrated
	make and model, reading times, calibrations factors applied and their	hydrochloric acid is then added and the bead is further digested in the
	derivation, etc.	microwave at a lower power setting. The digested solution is cooled,
		diluted to a total volume of 10 mL with de-mineralized water,and

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Criteria	JORC Code explanation	Commentary
	• Nature of quality control procedures adopted (eg standards, blanks,	analyzed by atomic absorption spectroscopy against matrix-matched
	duplicates, external laboratory checks) and whether acceptable levels	standards.
	of accuracy (ie lack of bias) and precision have been established.	•ALS Laboratories ME-MS61: a 0.5g sample is subjected to near-total
		digestion by a four-acid mixture and finished with a combination of
		ICP Mass Spectrometry (MS) and Atomic Emission Spectroscopy
		(AES).
		•Laboratory QAQC involves the use of internal lab standards using
		certified reference material, blanks, splits and replicates as part of the
		in house ALS procedures.
		•No handheld tools were used with all assays performed at external
		laboratories
		•Quality control procedures for sampling were implemented
		systematically; blanks and field duplicates were inserted every 10
		core samples (focused in mineralized zones), and standards were
		inserted everyconsecutive 20 sample run.
Verification	• The verification of significant intersections by either independent or	•External data verification is not required at this time.
of sampling	alternative company personnel.	•No verification samples (including twinned holes) have been taken
and assaying	• The use of twinned holes. • Documentation of primary data, data entry procedures, data	•All Data, data entry procedures, data verification and data storage has been carried out by GBM staff in accordance with GBM Standard
	verification, data storage (physical and electronic) protocols.	Operating Procedures (SOPs). GBM SOP’s meet industry best
	• Discuss any adjustment to assay data.	practice standards. Final Data verification and data storage has been
		managed by GBM Data Management staff using industry standard
		Data Shed software. Field duplicates are reviewed to ensure they fall
		within acceptable limits.
		•No adjustments or calibrations were made to anyassaydata used.
Location of	• Accuracy and quality of surveys used to locate drill holes (collar and	•All collar locations were pegged by Licensed Surveyor using the
data points	down-hole surveys), trenches, mine workings and other locations	historical Koala Project Local Grid. Where peg positions required
	used in Mineral Resource estimation.	modification, collar pegs were moved using tape and compass with
	• Specification of the grid system used.	reference to a surveyed baseline.
	• Quality and adequacy of topographic control.	•At the conclusion of the drilling program, all collars will be surveyed
		by Licenced Surveyor.
		•Downhole drill surveys were carried out at nominally 25m intervals
		using a Reflex mutli-shot digital survey tool.
		•All work was carried out in the Koala local mine grid. The local grid
		was re-established by Licenced Surveyor using a set of known survey
		points (old drill collars, local grid pegs).
		•The topographic surface was triangulated from mine survey data
		collected at the time of mine closure in 1997. The resultant surface is
		of sufficientqualityfor resource estimation.
Data spacing	• Data spacing for reporting of Exploration Results.	•Drillinghas been carried out on 50m spaced sections between or to

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Criteria	JORC Code explanation	Commentary
and	• Whether the data spacing and distribution is sufficient to establish the	supplement existing historic 50m sections. Down-dip spacing of
distribution	degree of geological and grade continuity appropriate for the Mineral	mineralisation intersections is between 20-25m. Holes were drilled
	Resource and Ore Reserve estimation procedure(s) and	across strike of the main north striking (Local Grid) mineralized zone
	classifications applied.	towards both the east and west. The drill holes generally intersected
	• Whether sample compositing has been applied.	mineralization at 60º or greater.
		•The suitability of spacing and orientation of the sampling for grade
		and geological continuity will be established by variography at the
		conclusion of Phase 1 drilling. Should further infill drilling be required
		to meet resource requirements, this will be completed in Phase 2.
		•The samples were not composited prior to submission to the
		laboratory
Orientation	• Whether the orientation of sampling achieves unbiased sampling of	•The spacing and orientation of the sampling is generally appropriate
of data in	possible structures and the extent to which this is known, considering	to the main mineralized zone, however there are known (from grade
relation to	the deposit type.	control data) mineralized cross faults which have a similar orientation
geological	• If the relationship between the drilling orientation and the orientation	to the drill sections. The current drilling configuration does not
structure	of key mineralised structures is considered to have introduced a	adequately define these cross structures and so any resource
	sampling bias, this should be assessed and reported if material.	estimate is likely to under-estimate the number, volume (tonnage)
		and grade of these mineralized cross structures.
		•It is possible that the sampling is biased by not intersecting possible
		high grade cross structures. This has not been tested because too
		few cross structures have been definitivelyidentified.
Sample	• The measures taken to ensure sample security.	•All drill core is transported from drill sites to the Company core
security		processing facility in Mt Coolon by Company personnel. Prepared
		samples are then transported to a commercial courier in Moranbah by
		Company personnel where they are on-shipped directly to ALS
		Laboratories in Townsville.
		•Core, coarse chip rejects and pulps are stored at the GBM core
		facility.
Audits or	• The results of any audits or reviews of sampling techniques and data.	•No audits of either the data or the methods used in this drilling
reviews		program have been undertaken to date.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	Commentary
Mineral	• Type, reference name/number, location and ownership including	•The Koala resource is located within ML1029 which along with
tenement	agreements or material issues with third parties such as joint	ML1085 and ML1086 form a contiguous group of leases that form the
and land	ventures, partnerships, overriding royalties, native title interests,	Koalaproject and are 100% owned byGBM Resources Ltd. ML1029

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Criteria	JORC Code explanation	Commentary	Commentary
tenure status	historical sites, wilderness or national park and environmental		expires on 31/1/24
	settings.	•	GBM is not aware of any material issues with third parties which may
	• The security of the tenure held at the time of reporting along with any		impede current or future operations at Koala.
	known impediments to obtaining a licence to operate in the area.
Exploration	• Acknowledgment and appraisal of exploration by other parties.	•	In 1913 gold was discovered at MT Coolon (Koala gold mine) by a
done by other parties			boundary rider, from 1913 until 1931 gold was mined from small shallow leases and shallow shafts, from 1931 -139 Gold Mines of
			Australia (GMA) consolidated and mined the whole field. Historic
			underground mining from discovery in 1914 to 1938 produced
			approximately 180,000 ounces of gold at an average grade of
			18.4g/t Au.
		•	No activity was taken from 1939 to 1974 Saracen Minerals (~1974)
		•	Saracen Minerals explored for porphyry-style base metals in an
			area from Koala Mine to east of Bungobine Homestead during
			1974. Work involved collection of 115 rock chip samples and
			geological traverses. The two main prospects were at Bungobine
			Yards and around Mt Coolon/Koala Mine. Due to poor results, the
			tenement was relinquished.
		•	Renison Goldfields LTD/Gold Feilds Exploration (1986 – 1989)
			Carried out mapping, colour aerial photography, airborne magnetic
			and radiometric survey, ground magnetics, produced a feasibility
			study, a review of old GMA data and plans from 1939, rock chip
			sampling of the reef at surface, and drilling; 78 percussion Drill
			holes, 99 Reverse circulation collars with Diamond Drill holes tails
			to test and delineate remnant resources, the western reef and
			Hectorina deposit. Renison commenced a decline but terminated
			mining due to intersecting a major fault.
		•	ACM Gold Limited/Wirralie Gold Mines (1989 - 1992) carried out
			exploration on the Tower prospect and at Mt Koala. Producing a
			resource estimate and feasibility study for open pit mining. Work
			included evaluating Renison’s previous work, photo and
			lineament analysis, rock chip sampling, and drilling; 45 RAB
			scout holes testing surface mineralisation, 291 soil auger holes
			and 1 RC hole.
		•	Ross Mining (1992 - 2000) carried out regional and detailed
			mapping, produced a new resource estimate, soil sampling,
			metallurgy testing, a gradient array Resistivity survey, IP surveys,
			CSMAT survey, Petrology, drilling; RC collars with Diamond tails
			(6 holes),39 RC,103 diamond holes and 157 RAB holes. Ross

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Criteria	JORC Code explanation	Commentary	Commentary
			carried out mining of the northern end of the ML an area that
			Renison had planned to mine from underground and is known as
			the Koala Pit. Ross Mining produced 53,000 ounces gold at an
			average grade of 5.6g/t Au.
		•	Normandy Mining (2000 - 2002) carried out work re-modelling
			the whole deposit, a heli-borne EM survey and drilling distal to
			the main Koala resource.
		•	MCGM/Drummond Gold (2006 -2014) carried out a revaluation and
			synthesis of all previous work which included a verification and
			validation of previous work and data, mapping, HyVista imagery,
			reinterpretation of previous geophysics data sets, and drilled; 17
			RC holes, 9 RC pre collar with diamond tail holes and 4 Diamond
			holes
		•	GBM acquired the project from Drummond Gold in 2015.
		•	All drilling, sampling, surveying and assaying that forms the basis of
			this resource estimate was carried out bythese otherparties.
Geology	• Deposit type, geological setting and style of mineralisation.	•	Auriferous epithermal veining at Koala is hosted in a thick package
			of shallow dipping volcanic flow sheets, which are part of the
			regional Cycle 1 Volcanic sequence (Silver Hills Volcanics). The
			lode lies approximately 500m west of a major granodiorite intrusion
			outcrop and is preferentially hosted by porphyritic andesite. The
			gold mineralisation occurs as a narrow, steeply dipping high grade
			colloform quartz vein a wider lower grade, veinlet stockwork and is
			locally disrupted by faulting. The main vein has been defined by
			drilling over a strike length of about 1200 m and down dip about
			200 m. The main vein is offset by steeply dipping, west-northwest
			striking cross faults with high grade zones formed at the
			intersection of the cross faults and the main vein. The main vein
			changes dip direction along strike. In the south it dips steeply to the
			west, whereas in the north it dips steeply to the east. The main vein
			splits into a series of splay veins at the southern end. The up-dip
			extent of the main vein appears to be limited by a rhyolitic unit
			which results in a gentle north plunge. The main vein thins and
			weakens with depth. A number of alteration styles are evident
			including silica-sericite- pyrite+K-Feldspar associated with gold
			mineralisation.
Drill hole	• A summary of all information material to the understanding of the	•	Included in table above.
Information	exploration results including a tabulation of the following information
	for all Material drill holes:
	o easting and northing of the drill hole collar

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Criteria	JORC Code explanation	Commentary
	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,	•All quoted drill intercepts have been length-weighted where required.
aggregation	maximum and/or minimum grade truncations (eg cutting of high	•Intercepts were calculated using a 0.3 g/t Au cutoff grade and a
methods	grades) and cut-off grades are usually Material and should be stated.	maximum 2m internal dilution. No high-grade cut was applied.
	• Where aggregate intercepts incorporate short lengths of high grade
	results and longer lengths of low grade results, the procedure used
	for such aggregation should be stated and some typical examples of
	such aggregations should be shown in detail.
	• The assumptions used for any reporting of metal equivalent values
	should be clearly stated.
Relationship	• These relationships are particularly important in the reporting of	•Calculated true widths of intercepted mineralisation are included in
between	Exploration Results.	the Drill Hole Summary Table above.
mineralisatio	• If the geometry of the mineralisation with respect to the drill hole
n widths and	angle is known, its nature should be reported.
intercept lengths	• If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true
	_width not known’). _
Diagrams	• Appropriate maps and sections (with scales) and tabulations of	•A collar plan with all collar locations and intercept callouts is included
	intercepts should be included for any significant discovery being	in the report body.
	reported These should include, but not be limited to a plan view of
	drill hole collar locations and appropriate sectional views.
Balanced	• Where comprehensive reporting of all Exploration Results is not	•Downhole length weighted average grades have been reported for all
reporting	practicable, representative reporting of both low and high grades	drillholes where above the defined cutoff. Where values are below
	and/or widths should be practiced to avoid misleading reporting of	this no significant intersection (NSI) is noted.
	Exploration Results.
Other	• Other exploration data, if meaningful and material, should be reported	•Not applicable at this time. This program comprises only drilling.
substantive	including (but not limited to): geological observations; geophysical	Further work will be completed and reported in due course.
exploration	survey results; geochemical survey results; bulk samples – size and
data	method of treatment; metallurgical test results; bulk density,
	groundwater, geotechnical and rock characteristics; potential
	deleterious or contaminating substances.

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Criteria	JORC Code explanation	Commentary
Further work	• The nature and scale of planned further work (eg tests for lateral	•Further drilling is planned to test the historical stopes near surface.
	extensions or depth extensions or large-scale step-out drilling).	Infill drilling of current 50m sections to 25m will also be completed if
	• Diagrams clearly highlighting the areas of possible extensions,	the assessment of geological continuity is considered unsatisfactory.
	including the main geological interpretations and future drilling areas,
	provided this information is not commercially sensitive.

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