GENESIS RESOURCES LIMITED — Interim / Quarterly Report 2016

Jul 28, 2016

Quarterly Activities Report – June 2016

HIGHLIGHTS

Plavica Au-Ag-Cu Project

• The extensional drilling program continued at Plavica during the quarter ended 30 June 2016 ( Quarter ). A total of 25 core holes were drilled for a total of 5172.6m and a total of 24 RC holes were also drilled for 2673m. Drilling is ongoing at Plavica and the Company plans to complete a JORC 2012 compliant resource in the following Quarter.

• Results have been returned for 12 of the holes drilled this Quarter plus outstanding results from the three holes drilled last Quarter. Results were generally encouraging and included:

• MRDD019: 53m @ 4.07 g/t Au from 0m from the Maricanski Rid prospect.

EXPLORATION & DEVELOPMENT PROGRESS DURING THE QUARTER

REPUBLIC OF MACEDONIA

PLAVICA HIGH SULPHIDATION EPITHERMAL GOLD-COPPER-SILVER PROJECT (Figures 1 & 2)

Following the granting of the 30 year Exploitation Licence at Plavica in May 2015, drilling has since focussed on extending and better understanding the previously known mineralisation at both the Plavica and Maricanski Rid prospects with a focus on the oxide gold potential. During the Quarter, drilling has continued at both these prospects using one core rig and one Reverse Circulation (RC) rig with the aim of re-doing the Inferred Resource at Plavica and completing a maiden Inferred Resource at Maricanski Rid in the following Quarter. Drilling is on track with one core rig and one RC rig currently in operation.

At Plavica a total of 11 core holes for 3063.4m and 12 RC holes for 1505m were completed. Results have been received for six of the core holes and one RC hole. In addition results were received for the 2 holes (PNDD072 and 073) drilled in the March Quarter. Results include:

• PNDD073: 36m @ 2.12 g/t Au from 11m.

• PNDD076: 23m @ 0.74 g/t Au from 3m.

At Maricanski Rid a total of 14 core holes for 2109.2m and 12 RC holes for 1168m were completed. Results have been received for five of the core holes. In addition results were received for the core hole (MRDD019) drilled in the March Quarter. Results include:

• MRDD019: 53m @ 4.07 g/t Au from 0m.

• MRDD021: 25m @ 1.39 g/t Au from 0m.

• MRDD023: 43m @ 1.00 g/t Au from 73m.

All intersections listed above are in oxide material. All the afore-mentioned drill hole locations are shown in Table 1 and 2 and Figure 2. Composites from results received this Quarter are shown in Table 3. Three sections from Maricanski Rid showing holes MRDD019, MRDD021 and MRDD023 are shown as Figures 3 to 5.

Genesis aims to finish this round of drilling and then complete a JORC compliant Resource in the 3[rd] Quarter of 2016. Genesis then expects to complete a feasibility study before October 2017, and has agreed to commit up to US $7.5m for these activities.

Genesis Resources Limited | Quarterly Activities Report | April 2016 – June 2016

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Figure 1 (above) Location of the Plavica Gold-Copper-Silver Project, Republic of Macedonia.

Genesis Resources Limited | Quarterly Activities Report | April 2016 – June 2016

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Figure 2 Location of Holes drilled or assays reported, QTR 2 2016, Plavica Project. Gauss Kruger Co-ordinate System.

Genesis Resources Limited | Quarterly Activities Report | April 2016 – June 2016

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Prospect	Hole ID	Type	Final Depth	Dip	Azi Mag	East_GK	North_GK	RL m	Comments
Plavica	PNDD072	DD	236.10	-60	4	7597250.0	4657058.0	1178.0	Drilled lastQTR
Plavica	PNDD073	DD	185.10	-50	4	7597756.0	4656892.0	1239.0	Drilled lastQTR
Plavica	PNDD074	DD	201.55	-50	4	7597845.0	4656820.0	1265.0	Results Received
Plavica	PNDD075	DD	294.55	-50	4	7596650.0	4656905.0	1105.0	Results Received
Plavica	PNDD076	DD	353.95	-60.00	4	7597850.0	4656750.0	1240.0	Results Received
Plavica	PNDD077	DD	289.80	-50	4	7598005.0	4656780.0	1279.0	Results Received
Plavica	PNDD078	DD	328.70	-50	4	7597680.0	4656570.0	1176.0	Results Received
Plavica	PNDD079	DD	157.00	-50	4	7597554.0	4657071.0	1219.0	Results Received
Plavica	PNDD080	DD	205.31	-50	4	7597350.0	4656990.0	1169.0	Results Pending
Plavica	PNDD081	DD	247.10	-50	4	7597250.0	4656977.0	1157.0	Results Pending
Plavica	PNDD082	DD	336.95	-50	4	7598000.0	4656715.0	1266.0	Results Pending
Plavica	PNDD083	DD	302.25	-45	4	7598046.0	4656700.0	1265.0	Results Pending
Plavica	PNDD084	DD	346.20	-52	4	7598050.0	4656670.0	1255.0	Results Pending
Plavica	PNRC097	RC	168.00	-50	4	7597346.0	4657096.0	1192.0	Results Received
Plavica	PNRC098	RC	96.00	-60	360	7597403.0	4657100.8	1198.0	Results Pending
Plavica	PNRC099	RC	160.00	-50	360	7597534.0	4657034.0	1212.0	Results Pending
Plavica	PNRC100	RC	150.00	-60	360	7597604.0	4656960.0	1223.0	Results Pending
Plavica	PNRC101	RC	132.00	-60	360	7597709.0	4656914.0	1237.0	Results Pending
Plavica	PNRC102	RC	108.00	-60.00	4	7597681.0	4656986.0	1248.0	Results Pending
Plavica	PNRC103	RC	150.00	-55	4	7597650.0	4656960.0	1235.0	Results Pending
Plavica	PNRC105	RC	129.00	-55	340	7597480.0	4657067.0	1200.0	Results Pending
Plavica	PNRC106	RC	100.00	-55	4	7597790.0	4656830.0	1240.0	Results Pending
Plavica	PNRC107	RC	162.00	-50	4	7598390.0	4657040.0	1282.0	Results Pending
Plavica	PNRC108	RC	150.00	-50	184	7598390.0	4657040.0	1282.0	Results Pending

Table 1 Details of Holes drilled, QTR 2 2016, Plavica Prospect. Gauss Kruger Co-ordinate System. NB Collars have not yet been surveyed.

Genesis Resources Limited | Quarterly Activities Report | April 2016 – June 2016

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Prospect	Hole ID	Type	Final Depth	Dip	Azi Mag	East_GK	North_GK	RL m	Comments
Maricanski Rid	MRDD019	DD	172.00	-55	184	7597490.0	4656235.0	1218.8	Drilled lastQTR
Maricanski Rid	MRDD020	DD	150.10	-55	4	7597540.0	4656252.0	1211.6	Results Received
Maricanski Rid	MRDD021	DD	161.40	-55	184	7597540.0	4656252.0	1211.6	Results Received
Maricanski Rid	MRDD022	DD	134.30	-55	4	7597440.0	4656215.0	1211.0	Results Received
Maricanski Rid	MRDD023	DD	154.75	-55	184	7597440.0	4656218.0	1211.0	Results Received
Maricanski Rid	MRDD024	DD	155.50	-55	184	7597440.0	4656270.0	1199.0	Results Received
Maricanski Rid	MRDD025	DD	141.35	-55	4	7597440.0	4656270.0	1199.0	Results Pending
Maricanski Rid	MRDD026	DD	123.30	-55	184	7597290.0	4656200.0	1169.6	Results Pending
Maricanski Rid	MRDD027	DD	167.15	-60	184	7597590.0	4656292.0	1207.8	Results Pending
Maricanski Rid	MRDD028	DD	163.40	-55	4	7597224.0	4656180.0	1131.0	Results Pending
Maricanski Rid	MRDD029	DD	130.15	-55	184	7597224.0	4656180.0	1131.0	Results Pending
Maricanski Rid	MRDD030	DD	178.40	-55	4	7597274.4	4656298.3	1153.0	Results Pending
Maricanski Rid	MRDD031	DD	105.00	-55	184	7597274.4	4656298.3	1153.0	Results Pending
Maricanski Rid	MRDD032	DD	180.80	-45	325	7597250.0	4656243.0	1154.0	Results Pending
Maricanski Rid	MRDD033	DD	163.60	-55	4	7597478.0	4656337.0	1187.0	Results Pending
Maricanski Rid	MRRC001	RC	76.00	-90	0	7597490.0	4656235.0	1218.8	Results Pending
Maricanski Rid	MRRC002	RC	90.00	-90	0	7597540.0	4656252.0	1211.6	Results Pending
Maricanski Rid	MRRC003	RC	90.00	-90	0	7597440.0	4656215.0	1211.0	Results Pending
Maricanski Rid	MRRC004	RC	72.00	-90	0	7597440.0	4656270.0	1199.0	Results Pending
Maricanski Rid	MRRC005	RC	156.00	-55	4	7597760.0	4656260.0	1193.5	Results Pending
Maricanski Rid	MRRC006	RC	150.00	-50	184	7597760.0	4656263.0	1193.5	Results Pending
Maricanski Rid	MRRC007	RC	90	-90	0	7597274.4	4656298.3	1153.0	Results Pending
Maricanski Rid	MRRC008	RC	95	-90	0	7597374.7	4656308.0	1175.1	Results Pending
Maricanski Rid	MRRC009	RC	90	-90	0	7597478.0	4656337.0	1187.0	Results Pending
Maricanski Rid	MRRC010	RC	100	-90	0	7597289.3	4656197.6	1169.6	Results Pending
Maricanski Rid	MRRC011	RC	59	-90	0	7597387.6	4656214.0	1197.4	Results Pending
Maricanski Rid	MRRC011A	RC	100	-90	0	7597387.6	4656214.0	1197.4	Results Pending

Table 2 Details of Holes drilled, QTR 2 2016, Maricanski Rid Prospect. Gauss Kruger Co-ordinate System. NB Collars have not yet been surveyed.

Genesis Resources Limited | Quarterly Activities Report | April 2016 – June 2016

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Prospect	Hole	From	To	Interval	Aug/T
Plavica	PNDD072				NSA
Plavica	PNDD073	11	47	36	2.12
Plavica	PNDD074	41	45	4	0.66
Plavica	PNDD074	98	101	3	0.5
Plavica	PNDD074	106	126	20	0.82
Plavica	PNDD075				NSA
Plavica	PNDD076	3	26	23	0.74
Plavica	PNDD076	190	193	3	0.64
Plavica	PNDD076	262	269	7	0.66
Plavica	PNDD077	44	49	5	0.56
Plavica	PNDD077	57	60	3	1.08
Plavica	PNDD077	95	99	4	0.83
Plavica	PNDD077	111	115	4	0.8
Plavica	PNDD077	130	136	6	1.42
Plavica	PNDD077	163	169	6	0.71
Plavica	PNDD077	183	186	3	0.56
Plavica	PNDD077	194	199	5	0.54
Plavica	PNDD077	239	244	5	0.97
Plavica	PNDD077	275	278	3	1.01
Plavica	PNDD077	282	286	4	0.52
Plavica	PNRC097				NSA

Table 3 (above): Significant Core Drilling Gold Results received, QTR 2 2016, Plavica Prospect Area. Compositing done with a 0.4 g/t Au cut-off, minimum 3m interval, maximum 3m internal waste. Core samples are all orientated standard HQ size core split in two using a core saw. Half the core was sampled at 1m intervals and the other half retained for reference purposes. All core was logged and photographed prior to sampling. Samples were sent to SGS Laboratories in Ankara, Turkey. Samples were assayed for gold by 30g Fire Assay and other elements by ICP. Standards, Blanks and Duplicates were also submitted for Laboratory Quality Assurance / Quality Control (QAQC). Intercept widths are not necessarily true widths.

Genesis Resources Limited | Quarterly Activities Report | April 2016 – June 2016

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Prospect	Hole	From	To	Interval	Aug/T
Maricanski Rid	MRDD019	0	53	53	4.07
Maricanski Rid	MRDD019	68	86	18	0.48
Maricanski Rid	MRDD019	135	138	3	1.02
Maricanski Rid	MRDD019	155	160	5	0.55
Maricanski Rid	MRDD020	0	24	24	1.1
Maricanski Rid	MRDD020	29	33	4	2.42
Maricanski Rid	MRDD020	50	70	20	0.79
Maricanski Rid	MRDD020	99	104	5	0.56
Maricanski Rid	MRDD020	144	149	5	0.59
Maricanski Rid	MRDD021	0	25	25	1.39
Maricanski Rid	MRDD021	61	64	3	0.54
Maricanski Rid	MRDD021	106	109	3	0.62
Maricanski Rid	MRDD021	126	133	7	0.49
Maricanski Rid	MRDD021	154	159	5	0.64
Maricanski Rid	MRDD022	0	8	8	0.71
Maricanski Rid	MRDD022	17	20	3	0.61
Maricanski Rid	MRDD022	33	60	27	0.74
Maricanski Rid	MRDD022	88	93	5	0.72
Maricanski Rid	MRDD022	105	126	21	0.55
Maricanski Rid	MRDD023	0	13	13	1.18
Maricanski Rid	MRDD023	23	39	16	0.49
Maricanski Rid	MRDD023	53	59	6	0.57
Maricanski Rid	MRDD023	73	116	43	1
Maricanski Rid	MRDD023	120	142	22	0.78
Maricanski Rid	MRDD023	146	151	5	0.92
Maricanski Rid	MRDD024	0	28	28	0.69
Maricanski Rid	MRDD024	34	39	5	0.43
Maricanski Rid	MRDD024	49	64	15	0.52
Maricanski Rid	MRDD024	91	94	3	0.74
Maricanski Rid	MRDD024	104	116	12	0.53

Table 4 (above): Significant Core Drilling Gold Results received, QTR 2 2016, Maricanski Rid Prospect Area. Compositing done with a 0.4 g/t Au cut-off, minimum 3m interval, maximum 3m internal waste. Core samples are all orientated standard HQ size core split in two using a core saw. Half the core was sampled at 1m intervals and the other half retained for reference purposes. All core was logged and photographed prior to sampling. Samples were sent to SGS Laboratories in Ankara, Turkey. Samples were assayed for gold by 30g Fire Assay and other elements by ICP. Standards, Blanks and Duplicates were also submitted for Laboratory Quality Assurance / Quality Control (QAQC). Intercept widths are not necessarily true widths.

Genesis Resources Limited | Quarterly Activities Report | April 2016 – June 2016

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Figure 3 Maricanski Rid Section 7597440E Gauss Kruger, looking East.

Genesis Resources Limited | Quarterly Activities Report | April 2016 – June 2016

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Figure 4 Maricanski Rid Section 7597490E Gauss Kruger, looking East.

Genesis Resources Limited | Quarterly Activities Report | April 2016 – June 2016

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Figure 5 Maricanski Rid Section 7597540E Gauss Kruger, looking East.

Genesis Resources Limited | Quarterly Activities Report | April 2016 – June 2016

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Figure 6 Location of Australian Projects.

AUSTRALIA

ARLTUNGA PROJECT: Copper, Gold, (GES 100%)

The Arltunga Gold Project consists of Exploration Licence EL25238 covering 95.2 sq km, is located approximately 110 km northeast of Alice Springs (Figure 6) in the vicinity of the Arltunga Goldfield. Thirty three historical gold mines and prospects are known in the licence area.

The Licence Renewal was approved on 6 February 2015 for a term of 2 years and will expire on 7 November 2016. All 31 sub-blocks were retained.

A full review of all available data is currently underway, with the aim of defining targets for Reverse Circulation drilling in Q3 2016.

The 9[th] Annual Technical Report was lodged on 9 November 2015 and accepted as satisfactory by the DME on the 19 November 2015.

An updated Mining Management Plan (MMP) was lodged on the 8 March 2016.

No field work was carried out during the current Quarter.

ALICE SPRINGS PROJECT: Copper, Gold, Iron (GES 100%)

The Alice Springs Project consists of Exploration Licence EL24817 covering 372.59 sq km, is located approximately 110155 km northeast from Alice Springs in the Northern Territory (Figure 5) .

A Licence Renewal Application was lodged on 5 April 2016. It was approved on 13 May 2016 for a further term of 2 years and will expire on 17 April 2018. All 118 sub-blocks were retained.

The 10[th] Annual Technical Report was lodged on 18 April 2016 and accepted as satisfactory by the DME on the 9 May 2016.

Genesis Resources Limited | Quarterly Activities Report | April 2016 – June 2016

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An updated Mining Management Plan (MMP) was lodged on the 23 February 2016 and accepted as satisfactory on the 20 June 2016.

No field work was carried out. In addition a full review of all available data is underway to define targets for RC drill testing during Q3 2016.

GLADSTONE-MOUNT MILLER PROJECT: Manganese (GES 100%)

The Gladstone-Mount Miller Project consists of Exploration Licence (EPM15771) covering 42.62sq km and Mining Lease Application (MLA80166) covering 32.24 Ha and is located approximately 15 km by road from the port of Gladstone on the east coast of central Queensland (Figure 5) .

The largest mine on the tenements controlled by Genesis was at Mount Miller. The mine opened in 1895 and operated intermittently until 1916 and then from 1958 to 1960. A total of 21,785 tonnes of ore was mined with a grade which ranged from 71% to 75% MnO2.

The Licence Renewal was approved on 7 May 2013 for a term of 5 years and will expire on 18 June 2017.

As per the conditions of the exploration permit Genesis were required to relinquish 14 sub blocks from EPM 15771. A Partial Relinquishment Report was lodged on the 16 June 2016. 14 of the 21 sub blocks were relinquished, 7 sub-blocks were retained. EPM15771 now covers 42.62sq km.

The 9[th] Annual Technical Report was lodged on 20 June 2016.

A Partial Surrender of an Environmental Authority was lodged on the 27 June 2016.

No field work was carried out. A review of all available data is underway to confirm if more drilling is necessary at the Mt Miller mine and if other prospect areas on the tenement require drill testing during Q3 2016.

PIONEER PROJECT: Gold (GES 100%)

The Pioneer Project consists of one granted Exploration Permit Mineral (EPM15619) covering 6.23 sq km approximately 70 km by road from Bundaberg via the Bruce Highway in Queensland (Figure 5) .

The project lies within the Gaeta Goldfield and has undergone previous exploration for gold, uranium and base metals, with numerous historical gold workings located throughout the area. Historical mining was primarily focused on the Pioneer Reef which was the largest producer, but mining activities also included several other reefs including Gympie, Lord Nelson, West Yorkshire and Happy Jack.

A Licence Renewal Application was lodged on 28 April 2016 requesting another two year period. The licence currently expires on the 2 August 2016.

As per the conditions of the exploration permit Genesis were required to relinquish 2 sub blocks from EPM 15619. Pursuant to section 793 of the Mineral Resources Act 1989 (MRA ), the relinquishment was accepted by the Department of Natural Resources and Mines Queensland on 22 August 2013. The tenement area has been reduced from 12.67 sq km to 6.23 sq km.

No field work was carried out. A review of all available data is underway to compile all geological mapping and define targets for drill testing during Q3 2016.

McARTHUR RIVER PROJECT: Manganese (GES 100%)

The McArthur River project consists of Exploration Licence EL24814 covering 380.88 sq km and is located approximately 850 km south east of Darwin in the Northern Territory and 450 km north-west of Mount Isa in Queensland (Figure 5) .

The project area contains the Masterton No2 manganese occurrence.

A Licence Renewal Application was lodged on 5 April 2016. It was approved on 13 May 2016 for a further term of 2 years and will expire on 17 April 2018. All 116 sub-blocks were retained.

Genesis Resources Limited | Quarterly Activities Report | April 2016 – June 2016

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The 10[th] Annual Technical Report was lodged on 18 April 2016 and accepted as satisfactory by the DME on the 9 May 2016.

The Mining Management Plan Update was lodged on the 21 October 2015, it was accepted by DME on 30 October 2015.

No field work was carried out. A full review of all data available is underway to guide further exploration on the tenement.

LAURA RIVER Au-Pt PROJECT: (EMP15242) (GES:100%)

The Laura River project consists of Exploration Licence EPM15242 covering 82.67 sq km is centered on the Cape York Peninsular township of Laura, 210km north-west of Cairns and 88km west of Cooktown in North Queensland (Figure 5) . The area is prospective for gold. Several historical alluvial workings are found in the vicinity of the Laura River and tributaries.

The 8[th] Annual Technical Report was lodged on the 24 August 2015.

A Licence Renewal Application was lodged on the 19 May 2016 requesting another 2 year term. The tenement currently expires on the 23 August 2016.

As per the conditions of the exploration permit Genesis were required to relinquish 25 sub blocks from EPM 15242. A Partial Relinquishment Report was lodged on the 20 June 2016. 25 of the 50 sub blocks were relinquished, 25 sub-blocks were retained. EPM15242 now covers 82.67sq km.

A Partial Surrender of an Environmental Authority was lodged on the 22 June 2016.

No field work was carried out.

FENN GAP Mn-Fe PROJECT: (EMP24839) (GES:100%)

The Fenn Gap project consists of one Exploration Licence EL24839 which covers a total area of 26.93 sq km, is located approximately 25 km south west of Alice Springs in the Northern Territory (Figure 5) . The project is 25 km from major infrastructure such as the Stuart Highway and Alice to Adelaide Railway.

Genesis was issued with a Partial Cancellation Notice (Loss of Block Penalty) for Fenn Gap on 23 June 2014, requesting the relinquishment of 13 sub blocks. EL24839 now comprises of 14 sub blocks covering 26.93 sq km.

A Licence Renewal Application requesting another two year period was lodged on the 26 April 2016. The current expiry date was 5 May 2016. This application is still PENDING.

The 8[th] Annual Technical Report was lodged on 9 May 2016 and accepted as satisfactory by the DME on the 1 June 2016.

A Mining Management Plan Update was lodged on 7 September 2015. This was approved on 16 September 2015.

No field work was carried out. A full review of existing data has been completed. A further, more detailed review of drilling data is underway to determine if drilling has adequately tested the known manganese mineralisation.

TENEMENTS AS AT 30 JUNE 2016

PROJECT TENEMENT NUMBER COMMODITY COMPANY’S BENEFICIAL INTEREST CURRENT AREA (KM2) CURRENT HOLDER COUNTRY/ STATE	PROJECT TENEMENT NUMBER COMMODITY COMPANY’S BENEFICIAL INTEREST CURRENT AREA (KM2) CURRENT HOLDER COUNTRY/ STATE
Alice Springs	EL24817 Copper-Iron- Gold 100% 372.59 Genesis NT
Arltunga	EL25238 Gold-PGE 100% 95.2 Genesis NT
Fenn Gap	EL24839 Iron- Manganese 100% 26.93 Genesis NT
Laura River	EMP15242 Gold-PGE 100% 82.67 Genesis QLD

Genesis Resources Limited | Quarterly Activities Report | April 2016 – June 2016

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Pioneer	EPM15619 Gold 100% 6.23 Genesis QLD
McArthur River	EL24814 Manganese- Base Metals 100% 380.88 Genesis NT
Gladstone	EPM15771 Manganese 100% 42.62 Genesis QLD
Mt Miller	MLA80166 Manganese 100% 32.24 Ha Genesis QLD
Plavica & Crn Vrv	19-6648/1 Gold-Silver- Copper 62% 16.85 Silgen Resources Macedonia

All tenements noted above are Exploration Licences except Plavica in Macedonia which is an Exploitation Licence.

Genesis Resources Limited | Quarterly Activities Report | April 2016 – June 2016

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CORPORATE UPDATES

Events during the Quarter

Extraordinary General Meeting

On 22 April 2016 Genesis held an Extraordinary General Meeting. All resolutions proposed by the Company to shareholders at the Extraordinary General Meeting were unanimously carried on a show of hands.

Issue of Shares

On 6 May 2016, Genesis issued 27,139,541 fully paid ordinary shares to a professional and sophisticated investor under a capital raising placement at $0.04 per share.

Appointment of Non-Executive Directors

On 31 May 2016, two new Non-Executive Directors were appointed to the Board of the Company: Mr Kim Heng Lim and Mr Chin Niap Mah.

Events subsequent

None.

Securities on issue as at 30 June 2016:

CLASS OF SECURITIES	NO. OF SECURITIES ON ISSUE
Fully paid ordinary shares 384,885,386
Board and Management as at 30 June 2016 Mr Eddie Pang Managing Director Mr Deric Wee Non-Executive Director Ms Alyn Tai Non-Executive Director Mr Kim Heng Lim Non-Executive Director Mr Chin Niap Mah Non-Executive Director Ms Sophie Karzis Company Secretary Ms Patricia Wong Chief Financial Officer Mr James Patterson Exploration Manager

COMPETENT PERSON

The information in this report that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by James Patterson, a Competent Person who is a Member of the Australian Institute of Geoscientists. James Patterson is a full-time employee of Genesis. James Patterson has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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’. James Patterson consents to the inclusion in the report of the matters based on his information in the form and context of which it appears.

-ENDS

About Genesis Resources Limited

Genesis Resources Limited is an Australian company with a portfolio of quality gold, iron, manganese, uranium and base metal (copper-zinc-silver) in the highly prospective Proterozoic and Phanerozoic metallogenic provinces of northern and central Australia. Genesis has signed a Joint Venture over an advanced copper-gold project (Plavica) within the Former Yugoslav Republic of Macedonia. The Plavica Project lies within Carpathian Volcanic Arc, a major epithermal province running through Eastern Europe, which is highly prospective for gold, copper and silver mineralisation. Genesis’ projects are close to established infrastructure including railways, shipping ports, highways, power stations and populated areas. The Company’s objective is to provide rapid capital growth through mineral discoveries and development of economic deposits in Australia and overseas.

For more information please visit the Company’s website at: www.genesisresourcesltd.com.au

Genesis Resources Limited | Quarterly Activities Report | April 2016 – June 2016

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Appendix 1 Reporting of Exploration Results – Plavica Project JORC Code, 2012 Edition – Table 1 Report

The following section is provided to ensure compliance with the JORC (2012) requirements for the reporting of Exploration Results for the Plavica project.

Section 1 - Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling	 Nature and quality of sampling (eg cut channels, random chips, or	N/A
techniques	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	N/A
	and the appropriate calibration of any measurement tools or systems
	used.
	 Aspects of the determination of mineralisation that are Material to the	Holes were generally drilled towards grid north with dips of
	Public Report.	approximately 60 degrees to optimally intersect the steeply dipping
		east-west striking mineralised zones of high sulphidation style
		epithermal mineralization.
	 In cases where ‘industry standard’ work has been done this would be	The drill hole locations are to be picked up by local survey contractors
	relatively simple (eg ‘reverse circulation drilling was used to obtain 1	using a DGPS (Differential Global Positioning System).
	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	Down hole surveys have been undertaken using a Reflex EZ-Trac tool. Down hole surveys were conducted at intervals of 25m.
	submarine nodules) may warrant disclosure of detailed information.	All DD holes completed by the Genesis were sampled by cutting the
		core longitudinally in half using diamond saws. Sampling of diamond
		core was also undertaken on 1m intervals.
		Diamond core was drilled to obtain high quality samples that were
		logged for lithological, structural, geotechnical, density and other
		attributes. Sampling of diamond core was also on one meter intervals
		with the core being cut in half using a diamond core saw
		Sub-samples of ~3 kg were sent to the laboratory for assaying.
		Analysis has been performed by commercial laboratories with
		samples sent to SGS Ankara. The samples sent to SGS follow
		standard SGS crushing and pulverization procedures and a
		conventional fire assay procedure with either atomic absorption or
		gravimetric finish on a 30 gram sub-sample. Fire Assay is considered
		a total recoverymethod forgold.

Genesis Resources Limited | Quarterly Activities Report | April 2016 – June 2016

Page 16

Criteria	JORC Code explanation	Commentary
		QC samples have been inserted into the routine sample stream to
		monitor sample quality as per industry best practice. These include
		standards, blanks and duplicates at regular (25m intervals)
		RC Samples were split every 1m at the rig using a rifle splitter and the
		sub-samples ofapproximately 3kg sent to SGSAnkara.
Drilling	 Drill type (eg core, reverse circulation, open-hole hammer, rotary air	The core drill rigs used 3m drill rods. Diamond drilling has employed a
techniques	blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple	63.5mm diameter HQ ‘standard tube’ core drilling methods.
	or standard tube, depth of diamond tails, face-sampling bit or other	RC drilling has been completed with 6m rods using a 4.5” or 121 mm
	type, whether core is oriented and if so, by what method, etc).	face sampling hammer bit.
		Orientation are completed every run (maximum 3m) using a spear
		technique. Diamond drill core is typically orientated where possible
		though often the core is highly fractured and cannot be reliably
		orientated usingstandard techniques.
Drill sample	 Method of recording and assessing core and chip sample recoveries	Diamond drill core is assessed by measuring the recovered drill
recovery	and results assessed.	length against the actual drilled. Diamond drill recovery is generally
	 Measures taken to maximise sample recovery and ensure	above 95%.Recoveries drop to less than this in minor (1-2m) zones of
	representative nature of the samples.	vuggy silica and clay.
	 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.	RC sample weights have been taken on all primary samples. Theoretical sample weights are then compared to the actual sample to identify any intervals that have had poor recovery. Average recoveries
		for RC holes are >95% but can vary significantly between holes.
		No detailed analysis of grade versus recovery has been undertaken
		at this stage however comparison of RC against DD gold results
		indicates a slight positive bias for RC drilling. This may indicate some
		loss of fines when using DD methods.
		No coarse gold has been observed through Photo-micrographic
		studies.

Genesis Resources Limited | Quarterly Activities Report | April 2016 – June 2016

Page 17

Criteria	JORC Code explanation	Commentary
Logging	 Whether core and chip samples have been geologically and	All drill holes have been logged in full and record standard criteria
	geotechnically logged to a level of detail to support appropriate	such as lithology, alteration, mineralisation, structural, weathering and
	Mineral Resource estimation, mining studies and metallurgical	oxidation. Geotechnical data such as drill recovery, RQD, hardness,
	studies.	fracture type and frequency are also recorded for input into future
	 Whether logging is qualitative or quantitative in nature. Core (or	scoping level mining studies.
	costean, channel, etc) photography.
	 The total length and percentage of the relevant intersections logged.	All logging is entered into excel spreadsheet templates or onto hard
		copy forms which are transferred to excel spreadsheets. These
		spreadsheets are then routinely imported into Micromine.
		All diamond core is photographed in a wet and dry state.
Sub-	 If core, whether cut or sawn and whether quarter, half or all core	Refer to the above sampling techniques
sampling	taken.	Quarter core duplicates are submitted every 50m.
techniques	 If non-core, whether riffled, tube sampled, rotary split, etc and
and sample	whether sampled wet or dry.
preparation	 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.
Quality of	 The nature, quality and appropriateness of the assaying and	Refer to the above analysis methods
assay data	laboratory procedures used and whether the technique is considered
and	partial or total.	Industry standard QC sample insertion procedures have been
laboratory	 For geophysical tools, spectrometers, handheld XRF instruments, etc,	adopted. QC insertion rates are:
tests	the parameters used in determining the analysis including instrument	- every 50m is a field duplicate,
	make and model, reading times, calibrations factors applied and their	- every 25m is a Standard,
	derivation, etc.  Nature of quality control procedures adopted (eg standards, blanks,	- every 50m is a coarse blank
	duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	The QAQC results indicate acceptable levels of precision and accuracy

Genesis Resources Limited | Quarterly Activities Report | April 2016 – June 2016

Page 18

Criteria	JORC Code explanation	Commentary
Verification	 The verification of significant intersections by either independent or	Samples are currently submitted to an umpire laboratory however the
of sampling	alternative company personnel.	results are yet to be reviewed
and	 The use of twinned holes.
assaying	 Documentation of primary data, data entry procedures, data	Data is imported into Micromine. There is no adjustment of assay
	verification, data storage (physical and electronic) protocols.	data.
	 Discuss any adjustment to assay data.
Location of	 Accuracy and quality of surveys used to locate drill holes (collar and	A local control station near the project is utilised by the local
data points	down-hole surveys), trenches, mine workings and other locations	surveying contractor. Holes are routinely surveyed using Surveyors
	used in Mineral Resource estimation.	with DGPS equipment.
	 Specification of the grid system used.
	 Quality and adequacy of topographic control.	All surveys are taken using the Gauss–Krüger (GK) coordinate
		system which has been the system used for survey by Genesis at
		Plavica since 2012.
Data spacing	 Data spacing for reporting of Exploration Results.	The nominal drill hole spacing is 100m (easting) x 50m (northing)
and	 Whether the data spacing and distribution is sufficient to establish the
distribution	degree of geological and grade continuity appropriate for the Mineral	Samples are collected at one meter lengths and are not composited
	Resource and Ore Reserve estimation procedure(s) and	in the field / core-shed.
	classifications applied.
	 Whether sample compositing has been applied.
Orientation	 Whether the orientation of sampling achieves unbiased sampling of	Holes were generally drilled towards grid north with dips of
of data in	possible structures and the extent to which this is known, considering	approximately 45 to 60 degrees to optimally intersect the steeply
relation to	the deposit type.	dipping east-west striking mineralised zones
geological	 If the relationship between the drilling orientation and the orientation
structure	of key mineralised structures is considered to have introduced a	No orientation based sampling bias has been identified in the data at
	sampling bias, this should be assessed and reported if material.	this stage
Sample	 The measures taken to ensure sample security.	Chain of Custody is managed by Genesis Staff. All drilling assay
security		samples were collected from the field by Genesis personnel. Core
		samples were stored at the secure sample processing and storage
		facility where they were subsequently processed and prepared for
		pickup. This facility has CCTV. Assay samples were collected by
		appropriately qualified staff at the laboratories.

Genesis Resources Limited | Quarterly Activities Report | April 2016 – June 2016

Page 19

Criteria	JORC Code explanation	Commentary
Audits or	 The results of any audits or reviews of sampling techniques and data.	An audit of drilling and sampling procedures was undertaken by
reviews		Golder Associates in 2012 at the commencement of that years drilling
		program. A number of priority based recommendations were provided
		to Genesis. All priority 1 recommendations were implemented and
		many of the lower priority actions have also been completed. The
		implementation of these recommendations has provided increased
		confidence in the quality of the data used in the resource estimate

Section 2 – Reporting of Exploration Results.

Criteria	JORC	Code explanation	Commentary
Mineral tenement and land tenure status		Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental	A 30 year Exploitation Licence and Concession Agreement were granted to Silgen Resources International Ltd, an incorporated joint venture entity owned by Genesis and its Macedonian-based joint venture partner RIK Sileks AD Kratovo. Silgen is 62% owned by
		settings.	Genesis. The JV Company has been formally granted the Licence for
		The security of the tenure held at the time of reporting along with	a term of 30 years. The area covered by the Licence totals 16.85 km2.
		any known impediments to obtaining a licence to operate in the	Genesis has pledged its 62% share of Silgen to completing a Feasibility
		area.	Study to mine Plavica and has agreed to spend USD $7.5M for this
			work.
			All Australian Tenements are Exploration Licences except Mt Millar
			which is a Mining Lease Application and are 100% owned by Genesis.
Exploration done by other parties	 Acknowledgement and appraisal of exploration by other parties.		At Plavica previous small scale mining was undertaken by Romans and Ottoman Turks. 2 adits were completed by British Mines Selection in the 1930’s targeting enargite veins.
			Previous exploration has been conducted by the Yugoslav
			Government, Cyprus Amax, Rio Tinto and European Minerals.

Genesis Resources Limited | Quarterly Activities Report | April 2016 – June 2016

Page 20

Criteria	JORC	Code explanation	Commentary
Geology	 Deposit type, geological setting and style of mineralisation		Both Plavica and Maricanski Rid host oxide gold mineralization in
			vuggy silica and clay zones within silica caps of a high sulphidation
			epithermal style setting. Alunite alteration is widespread.
			Beneath this oxide zone is a series of steeply dipping E-W striking
			structures comprising enargite-pyrite veins and vuggy silica zones.
			These zones are rich in Au, Cu, Ag and occasionally Pb and Zn.
			The prospects lie within the Western Tethyan Arc and are Tertiary in
			age.
Drill hole Information		A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:	All drill hole collars with location, elevation, depth, dip and azimuth are tabulated in the body of the report.
		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 aggregation methods	 	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.	A 0.4 g/t Au cut-off is used for reporting of Au grades and a 0.3 % for Cu grades. No top cuts are used. A minimum of 3m length is used for compositing and a maximum of 3m of internal waste is used. These parameters are considered adequate for this deposit style. No metal equivalents used
		The assumptions used for any reporting of metal equivalent values
		should be clearly stated.
Relationship between		These relationships are particularly important in the reporting of Exploration Results.	Core orientation and sectional interpretation suggest the mineralised zones are sub-vertical.
mineralisation		If the geometry of the mineralisation with respect to the drill hole angle
widths and intercept lengths		is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).	Holes are drilled on 45 to 60 degree angles to intersect the zones at the highest angle possible but also taking into account the steep topography of the area and the difficulty of locating drill pads. As a result the mineralized zones are intersected at an oblique angle and
			therefore down-hole lengths are not true widths.

Genesis Resources Limited | Quarterly Activities Report | April 2016 – June 2016

Page 21

Criteria	JORC	Code explanation	Commentary	Commentary
Diagrams		Appropriate maps and sections (with scales) and tabulations of		A plan and section are included.
		intercepts should be included for any significant discovery being	.
		reported. These should include, but not be limited to a plan view of drill
		hole collar locations and appropriate sectional views.
Balanced		Where comprehensive reporting of all Exploration Results is not		Of the holes reported this Quarter, some had significant results whilst
reporting		practicable, representative reporting of both low and high grades and/or		others had ‘No Significant Assays’ (NSA).
		widths should be practiced to avoid misleading reporting of Exploration
		Results.
Other		Other exploration data, if meaningful and material, should be reported		N/A.
substantive		including (but not limited to): geological observations; geophysical
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.
Further work		The nature and scale of planned further work (e.g. tests for lateral		Further step-out drilling will depend on the next set of results that are
		extensions or depth extensions or large-scale step-out drilling).		currently pending.
		Diagrams clearly highlighting the areas of possible extensions, including
		the main geological interpretations and future drilling areas, provided
		this information is not commercially sensitive.

Genesis Resources Limited | Quarterly Activities Report | April 2016 – June 2016

Page 22

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, 01/05/2013

Name of entity

Name of entity
GENESIS RESOURCES LIMITED
ABN 22 114 787 469	Quarter ended (“current quarter”)
22 114 787 469	30 June 2016

Consolidated statement of cash flows

Cash flows related to operating activities 1.1 Receipts from product sales and related debtors 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) administration 1.3 Dividends received 1.4 Interest and other items of a similar nature received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other (provide details if material) Net Operating Cash Flows	Current quarter $A’000	Year to date (12 months) $A’000
	(533) - - (425) - - 2 (7) -	(2,482) - - (1,809) - - 10 (25) -
	(963)	(4,306)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity in subsidiary (c) other fixed assets (d) other non current assets 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets (d) other non current assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other (provide details if material) Net investing cash flows 1.13 Total operating and investing cash flows (carriedforward)	- - - - - - - - - - -	- (5) (7) - - - - - - - -
	-	(12)
	(963)	(4,318)

• See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 1

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

1.13 Total operating and investing cash flows (broughtforward)	(963)	(4,318)
Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, etc. 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 1.17 Repayment of borrowings 1.18 Dividends paid 1.19 Unallocated shares application fund 1.20 Transaction costs Net financing cash flows	- - 1,000 (85) - - -	- - 2,328 (527) - 1,041 -
	915	2,842
Net increase (decrease) in cash held 1.20 Cash at beginning of quarter/year to date 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end ofquarter	(48) 566 (14)	(1,476) 2,035 (55)
	504	504

Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities

1.23 1.24	Aggregate amount of payments to the parties included in item 1.2 Aggregate amount of loans to the parties included in item 1.10	Current quarter $A'000
		-
		-
1.25	Explanation necessaryforanunderstanding ofthe transactions
	None

Non-cash financing and investing activities

2.1 2.2	Details of financing and investing transactions which have had a material effect on consolidated assets andliabilities but didnotinvolve cash flows
	None
	Details of outlays made by other entities to establish or increase their share in projects in whichthereporting entityhas an interest
	None

• See chapter 19 for defined terms.

Appendix 5B Page 2

01/05/2013

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Financing facilities available

Add notes as necessary for an understanding of the position.

		Amount available	Amount used
		$A’000	$A’000
3.1	Loan facilities (refer to (i) and (iii) below)	7,000	-
3.2	Credit standby arrangements
		-	-

• (i) In September 2013, the Company entered into a loan agreement with an unrelated Malaysian based financing company pursuant to which the financing company made available a loan facility to the Company, with a $3 million facility limit ( First Loan Facility ). In April 2014, the parties reached an agreement to increase the First Loan Facility limit from $3 million to $7 million on the same terms and conditions provided for in the existing loan agreement. Total funds of $7 million remain available for draw down by Genesis under the First Loan Facility.

Estimated cash outflows for next quarter

Estimated cash outflows for next quarter
4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	1,022
	-
	-
	260
Total	1,282

(ii) Whilst the Company expects that its estimated cash flows will exceed its cash currently at hand, the Company has access to the loan facilities as detailed above.

Reconciliation of cash

Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to therelateditemsinthe accountsis asfollows.	Current quarter $A’000	Previous quarter $A’000
5.1 Cash on hand and at bank 5.2 Deposits at call 5.3 Bank overdraft 5.4 Other (Term deposit – bank guarantee)	504	566
	-	-
	-	-
	98	98
Total: cash at end ofquarter(item 1.22)	602	664

• See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 3

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

Changes in interests in mining tenements and petroleum tenements

Tenement reference and location Nature of interest (note (2) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed - - - - 6.2 Interests in mining tenements and petroleum tenements acquired or increased - - - - Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.	Tenement reference and location Nature of interest (note (2) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed - - - - 6.2 Interests in mining tenements and petroleum tenements acquired or increased - - - - Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.	Tenement reference and location Nature of interest (note (2) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed - - - - 6.2 Interests in mining tenements and petroleum tenements acquired or increased - - - - Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.	Tenement reference and location Nature of interest (note (2) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed - - - - 6.2 Interests in mining tenements and petroleum tenements acquired or increased - - - - Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.	Tenement reference and location Nature of interest (note (2) Interest at beginning of quarter Interest at end of quarter 6.1 Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed - - - - 6.2 Interests in mining tenements and petroleum tenements acquired or increased - - - - Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.
	Total number	Number quoted	Issue price per security (see note 3) (cents)	Amount paid up per security (see note 3) (cents)
7.1 Preference +securities (description) 7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs, redemptions	-	-	-	-
	-	-	-	-
7.3 +Ordinary securities	384,885,386	384,885,386	Fully paid	Fully paid

• See chapter 19 for defined terms.

Appendix 5B Page 4

01/05/2013

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

7.4 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy- backs	Genesis issued a total of 27,139,541 ordinary shares during the quarter under a placement on 6 May 2016.	27,139,541	27,139,541 shares were issued at $0.04 per share under a placement on 6 May 2016.	The 27,139,541 shares issued on 6 May 2016 are fully paid up at $0.04 per share
7.5 +Convertible debt securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted	-	-	-	-
	-	-	-	-
7.7 Options (description and conversion factor) 7.8 Issued during quarter 7.9 Exercised during quarter 7.10 Expired during quarter	-	-	-	-
	-	-	-	-
	-	-	-	-
	-	-	-	-
7.11 Debentures (totals only)	-	-
7.12 Unsecured notes(totals only)	-	-

• See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 5

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

Compliance statement

• 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5).

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

==> picture [75 x 42] intentionally omitted <==

Alyn Tai Non-Executive Director 29 July 2016

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 wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report.

• 2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in mining tenements and petroleum tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement or petroleum tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2.

• 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities .

• 4 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.

• 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

• See chapter 19 for defined terms.

Appendix 5B Page 6

01/05/2013