GENESIS RESOURCES LIMITED

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GENESIS RESOURCES LIMITED  Level 1  61 Spring Street  Melbourne  VIC 3000 T +61 3 9286 7500  F +61 3 9662 1472  www.genesisresourcesltd.com.au  ABN 22 114 787 469

Quarterly Activities Report – December 2012

HIGHLIGHTS

Plavica Au-Ag-Cu Project

23 RC and 3 Diamond drill holes drilled at Plavica for a total of 4,695m of RC and 936m of diamond core.
Every hole was successful in encountering mineralisation.
Zones of deep oxidation were encountered.
First batch of composite Spear Splits ready for analysis.

Arltunga Au Project

Electrical geophysical profiling (CSAMT) defined anomalous bodies beneath four known gold mines and occurrences (100m, 150m, 150m, +275m depth extent) and indicated a strike length of greater than 100m at one mine, being open in both directions.
Five electrical anomalies discovered in this survey are thought to represent new “veins” with very good potential to host gold mineralisation.
A corridor of intense low resistivity (high conductivity) measuring 100m wide and greater than 1100m long was shown by electrical profiling to extend to depths in excess of 250m. This corridor may represent an alteration halo surrounding a vein system with good potential for gold mineralisation. Other similar ‘corridors’ were noted.
A program of drilling is planned.

Alice Springs Au Project

Soil samples taken from the Cadney Fault zone gave results showing strong anomalism in Cu, Au, Ag, U and Co.
Infill sampling is planned prior to drilling.

Gladstone-Mount Miller Mn Project

Mount Miller Mining Lease (EA MIN201115110): Agreement was reached with both Queensland Main Roads and Queensland National Railways, but the Board decided not to activate them as the Company still awaits the granting of an exemption from Urban Restricted zoning around Gladstone before carrying out the planned diamond drilling program.

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EXPLORATION AND DEVELOPMENT PROGRESS DURING THE QUARTER

Republic of Macedonia

PLAVICA GOLD-COPPER-SILVER PROJECT (Figure 1)

During the quarter 23 Reverse Circulation (RC) and 3 Diamond Drill holes were drilled for totals of 4,695m of RC and 936m of diamond respectively. Drill hole locations are shown in Figure 2 whilst Table1 provides details of drill hole coordinates, azimuths, inclinations and depths. Drilling commenced in the latter part of October and was terminated in mid-December with the onset of winter snow.

The RC samples have been sampled in 5m composite zones by a technique known as Spear Splitting and these samples are being despatched to the SGS Ankara laboratory for fire assay of gold content and ICP-OES analysis of silver, copper, lead, zinc and arsenic as well as 29 other elements. Analytical results from these samples are expected in late February/March. Core splitting is due to commence in early February as will preparation of 1m splits from the RC drill samples.

Every hole was successful in intersecting mineralisation and drill holes RP-008A and RP-009A encountered deep zones of oxidation. A variety of drill hole azimuths were trialled so that the optimal drill direction for intersecting mineralised veins could be determined. This approach was instituted on observations of oxidised mineralised zones freshly cut by the bulldozer around the drill pads and by geological traverse in areas of deeper erosion. Two dominant mineralised directions were determined: east-west and 60-240 degrees. The drill hole azimuth of 150 degrees is drilled perpendicular to the 60240 degree trend and this drill hole azimuth appears to intersect mineralised zones as well as zones of deep oxidation (e.g. in RP-009A from surface to total depth of 250m) .

In excess of 46,000m of RC and 23,000m of diamond core drilling is planned for 2013

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24-3482/1 24-3485/1
Plavica Project
Plavica Project
24-3487/1
24-3486/1
24-3488/1
24-3483/1 24-3487/1
PLAVICA PROJECT
LOCATION OF PROJECT AND 0 5000
LICENCE AREAS metres
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Figure 1 Location of Plavica Gold-Copper-Silver Project, Republic of Macedonia.

2 | Genesis Resources Limited | Quarterly Activities Report | October – December 2012

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Figure 2 Plavica 2012 drilling.

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Drill hole number Easting Northing Azimuth Inclination Depth
RP-016 596400 4656300 50 60 210
RP-018 596300 4656300 50 60 207
RP-017 596350 4656350 50 60 225
RP-015 596450 4656350 50 60 237
RP-006 596300 4656400 50 60 182
RP-007 596400 4656400 50 60 255
RP-007A 596400 4656400 320 60 260
RP-008 596500 4656400 50 60 207
RP-008A 596500 4656400 150 60 202
RP-009 596600 4656400 360/0 60 225
RP-009A 596600 4656400 150 60 250
RP-010 596700 4656400 360/0 60 220
RP-010A 596700 4656400 150 60 183
RP-011 596800 4656400 360/0 60 183
RP-011A 596800 4656400 150 60 183
RP-012 596800 4656300 360/0 60 143
RP-012A 596800 4656300 150 60 144
RP-013 596700 4656300 360/0 60 250
RP-013A 596700 4656300 150 60 140
RP-036 596800 4656200 360/0 60 207
RP-036A 596800 4656200 150 60 201
RP-014 596500 4656300 360/0 60 180
RP-014A 596500 4656300 150 60 201
DDP-06 596610 4656280 230 50 227
DDP-02 596242 4655830 360/0 50 389
DDP-02A 596242 4655830 150 70 320
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Table 1 Plavica 2012 drilling details

Genesis Resources Limited | Quarterly Activities Report | October – December 2012 | 3

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Figure 3 Location of Genesis Resources Limited’s Australian projects.

Australia

ARLTUNGA PROJECT: COPPER, GOLD, (GES 100%)

1. Introduction

The Arltunga Gold Project, EL25238, is located approximately 110 kilometres northeast of Alice Springs (Figure 3) in the vicinity of the Arltunga Goldfield. Thirty three historical gold mines and prospects are known in the licence area.

A program of electrical profiling (CSAMT) was carried out during December 2012 guided by previously acquired Genesis electrical survey data (GAIP) over the known gold mineralisation (Figure 4).

The survey method was tested at a known occurrence of sulphide mineralisation, which was found by historical prospecting to contain 132g/t gold, and was effective. Subsequently, 13 lines were surveyed with CSAMT stations at 25m spacing for a total of 5 line kilometres. The lines highlighted significant low resistivity anomalism.

2. Geological background

The primary geological model which determined the choice of the latest electrical survey was the association of massive pyrite with high grades of gold. Specifically, at the Wheal Fortune Mine, it was noted by Matthews in 1905 that an inclined shaft sunk 36m had intersected the reef at depth and cut “almost solid iron pyrites”, with a sample of the massive sulphide-quartz ore returning 132g/t Au (Matthews, 1905, p4 and Hossfeld, 1937, p12). These references, combined with Google Earth and modern aerial photography allowed an accurate plot of the location of the mineralisation.

Geological interpretation suggests there are granite intrusions at relatively shallow depth which may provide mineralising solutions capable of developing a large deposit of gold. This style of mineralisation has the potential to yield a gold discovery of significant grade and dimensions.

4 | Genesis Resources Limited | Quarterly Activities Report | October – December 2012

Unlike the GAIP method, the Controlled Source Audio Magneto Telluric method (CSAMT) survey employed here outlined the source of electrical conductivity anomalies in profile (3D) and thereby accurately defined targets for drilling.

3. CSAMT survey results

The survey team (Zonge Engineering & Research Organisation) reported that the quality of the data received from the survey equipment was very good giving high background resistivity and good contrast for conductivity and low resistivity measurements. The location of each survey line is shown on GAIP resistivity maps (Figures 5 and 6).

Anomalies with significant gold mineralisation potential were found:

below known gold quartz-reef-type ‘veins’,
below newly discovered interpreted ‘veins’, and
within wide, long, deep, low electrically resistive zones, possibly caused by alteration.

Resistivity inversion modelling for each anomalous line is presented as stacked profiles in Figures 7 and 8 and is discussed below.

i) Wheal Fortune Main Reef (Figure 7) – the first line at 7411750N confirmed the efficacy of the CSAMT method over the established position of massive sulphide in a shaft as discussed above. An anomaly was defined which coincided with the sulphide occurrence on this line and on the adjacent lines 50m to the north and south, suggesting the sulphide is likely to occur in a vein at least 100m long but open in both directions. It was associated with a fault which showed a marked vertical displacement.

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Figure 4 Arltunga location map and GAIP survey areas.

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