GENESIS RESOURCES LIMITED — Interim / Quarterly Report 2016

Apr 28, 2016

Quarterly Activities Report – March 2016

HIGHLIGHTS

Plavica Au-Ag-Cu Project

• The extensional drilling program resumed at Plavica during the quarter ended 31 March 2016 ( Quarter ) following the end of winter. A total of 3 core holes were drilled for a total of 593.2m. Drilling is ongoing at Plavica and the Company plans to re-do the inferred resource in the middle of 2016.

• Results were returned from the two outstanding holes drilled at the end of 2015, drilled at the eastern end of Plavica. Results were encouraging and included:

• PNDD071: 46m @ 1.10 g/t Au & 38.8 g/t Ag from 17m.

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 since then has focussed on extending and better understanding the previously known mineralisation at both the Plavica and Maricanski Rid prospects. Following the winter break, drilling has resumed at both these prospects with the aim of re-doing the Inferred Resource at Plavica and completing a maiden Inferred Resource at Maricanski Rid. Drilling is on track with one core rig and one RC rig currently in operation.

Drilling resumed in the last week of March and therefore only 3 holes were drilled during the Quarter for 593.2m of HQ drill core. Results from these holes are pending. In addition, results have also been returned for two holes drilled last Quarter on the Plavica prospect that had not been previously reported. These holes are PNDD070 and PNDD071and include the following:

• PNDD070: 19m @ 1.06 g/t Au & 87.7 g/t Ag from 28m.

• PNDD070: 8m @ 1.28 g/t Au & 42.3 g/t Ag from 99m.

• PNDD071: 13m @ 0.97 g/t Au & 43.9 g/t Ag from 0m.

• PNDD071: 46m @ 1.10 g/t Au & 38.8 g/t Ag from 17m.

All intersections listed above are in oxide material. All the afore-mentioned drill hole locations are shown in Table 1 and Figure 2. Composites from results received this Quarter are shown in Table 2. A section from Plavica showing holes PNDD070 and 071 is shown in Figure 3.

Genesis aims to continue drilling and then complete a JORC compliant Resource in mid 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 | January 2016 – March 2016

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Figure 1 (above) Location of the Plavica Gold-Copper-Silver Project, Republic of Macedonia.
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Figure 2 Location of Holes drilled or assays reported, QTR 1 2016, Plavica Project. Gauss Kruger Co-ordinate System.

Genesis Resources Limited | Quarterly Activities Report | January 2016 – March 2016

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Hole ID	Final Depth (m)	East(GK)	North(GK)	Dip	Azm	RL	Type
MRDD019	172.00	7597490	4656235	-55	184	1219	DD
PNDD072	236.1	7597250	4657058	-60	4	1178	DD
PNDD073	185.1	7597756	4656892	-50	4	1239	DD

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

Hole ID	From	To	Interval	Auppm	Ag ppm
PNDD070	28	47	19	1.06	87.7
PNDD070	88	92	4	1.15	73.0
PNDD070	99	107	8	1.28	42.3
PNDD070	114	125	11	0.69	27.6
PNDD070	198	207	9	0.67	4.1
PNDD070	222	229	7	0.93	10.3
PNDD071	0	13	13	0.97	43.9
PNDD071	17	63	46	1.10	38.8
PNDD071	167	174	7	0.91	11.3

Table 2 (above): Significant Core Drilling Gold Results received, QTR 1 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 | January 2016 – March 2016

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Figure 3 Plavica Section 7597950E Gauss Kruger, looking East.

Genesis Resources Limited | Quarterly Activities Report | January 2016 – March 2016

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Figure 5 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 5) 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 1 April 2014. It was approved on 13 October 2014 for a further term of 2 years and will expire on 17 April 2016. All 118 sub-blocks were retained.

An updated Mining Management Plan (MMP) was lodged on the 23 February 2016.

Genesis Resources Limited | Quarterly Activities Report | January 2016 – March 2016

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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 63.93 sq 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. All 21 sub-blocks were retained.

The 8[th] Annual Technical Report was lodged on 15 July 2015.

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 14 April 2014 requesting another two year period. The Application for renewal was approved on 15 May 2014 and the licence now expires on 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.

The Licence Renewal was approved on 13 October 2014 for a term of 2 years and will expire on 17 April 2016. All 116 subblocks were retained.

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.

Genesis Resources Limited | Quarterly Activities Report | January 2016 – March 2016

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

The Laura River project consists of Exploration Licence EPM15242 covering 165.35 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 Licence Renewal was approved on 11 March 2015 for a term of 2 years and will expire on 23 August 2016. All 50 subblocks were retained.

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

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.

A Licence Renewal Application requesting another two year period was approved on 23 December 2014. The new expiry date is 5 May 2016.

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 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 31 MARCH 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% 165.35 Genesis QLD
Pioneer	EPM15619 Gold 100% 6.23 Genesis QLD
McArthur River	EL24814 Manganese- Base Metals 100% 380.88 Genesis NT
Gladstone	EPM15771 Manganese 100% 63.93 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 | January 2016 – March 2016

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CORPORATE UPDATES

Events during the Quarter

Issue of Shares

On 26 February 2016, Genesis issued 57,002,640 fully paid ordinary shares in retirement of debt (total principal amount of $2,600,000 plus accrued interest) under a loan, at a deemed issue price of $0.055 per share ( February Shares ).

Events subsequent

Capital Raising

On 24 March 2016 the Company advised shareholders that it had secured a mandate agreement under which a Dealer’s Representative of RHB Investment Bank Berhad will act as lead manager for Genesis in relation to a proposed capital raising of approximately US$4,000,000 by way of progressive placements of shares.

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.

Securities on issue as at 31 March 2016:

CLASS OF SECURITIES	NO. OF SECURITIES ON ISSUE
Fully paid ordinary shares 357,745,845
Board and Management as at 31 March 2016 Mr Eddie Pang Managing Director Mr Deric Wee Non-Executive Director Ms Alyn Tai 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 | January 2016 – March 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

Genesis Resources Limited | Quarterly Activities Report | January 2016 – March 2016

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Criteria	JORC Code explanation	Commentary
		gravimetric finish on a 30 gram sub-sample. Fire Assay is considered
		a total recovery method for gold.
		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)
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
	type, whether core is oriented and if so, by what method, etc).	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 using standard 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	No detailed analysis of grade versus recovery has been undertaken
	loss/gain of fine/coarse material.	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.
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.

Genesis Resources Limited | Quarterly Activities Report | January 2016 – March 2016

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Criteria	JORC Code explanation	Commentary
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
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.

Genesis Resources Limited | Quarterly Activities Report | January 2016 – March 2016

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Criteria	JORC Code explanation	Commentary
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.
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		Type, reference name/number, location and ownership including	A 30 year Exploitation Licence and Concession Agreement were
tenement and land tenure status		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	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.

Genesis Resources Limited | Quarterly Activities Report | January 2016 – March 2016

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Criteria	JORC	Code explanation	Commentary
			All Australian Tenements are Exploration Licences except Mt Millar
			which is a Mining Lease Application and are 100% owned by Genesis.
Exploration	 Acknowledgement and appraisal of exploration by other parties.		At Plavica previous small scale mining was undertaken by Romans and
done by other parties			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.
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

Genesis Resources Limited | Quarterly Activities Report | January 2016 – March 2016

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Criteria	JORC	Code explanation	Commentary	Commentary
		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.
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 2 holes reported this Quarter, both had significant results.
reporting		practicable, representative reporting of both low and high grades and/or
		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		Anomalous copper and gold possibly extends further east at Plavica
		extensions or depth extensions or large-scale step-out drilling).
		Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided		Anomalous gold possibly extends further west at Maricanski Rid.
		this information is not commercially sensitive.
				These possibilities will be tested in QTR 2 2016.

Genesis Resources Limited | Quarterly Activities Report | January 2016 – March 2016

Page 14

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	31 March 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 (9 months) $A’000
	(467) - - (391) - - 1 (7) -	(1,949) - - (1,384) - - 8 (18) -
	(864)	(3,343)
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)
	(864)	(3,355)

• See chapter 19 for defined terms.

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

1.13 Total operating and investing cash flows (broughtforward)	(864)	(3,355)
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	- - 328 - - 1,041 -	- - 1,328 (442) - 1,041 -
	1,369	1,927
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	505 62 (1)	(1,428) 2,035 (41)
	566	566

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.

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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. In February 2016, 57,002,640 shares were issued at $0.055 per share in retirement of debt amounting to $2,600,000 plus accrued interest.

Estimated cash outflows for next quarter

4.1 Exploration and evaluation 4.2 Development 4.3 Production 4.4 Administration	$A’000
	810
	-
	-
	285
Total	1,095

(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)	566	62
	-	-
	-	-
	98	98
Total: cash at end ofquarter(item 1.22)	664	160

• See chapter 19 for defined terms.

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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	357,745,845	357,745,845	Fully paid	Fully paid

• See chapter 19 for defined terms.

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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 57,002,640 ordinary fully paid shares during the quarter in retirement of debt under a loan (Conversion Shares).	57,002,640	57,002,640 Conversion Shares were issued at a deemed issue price of $0.055 per share	The 57,002,640 Conversion Shares were issued in retirement of debt (total principal amount of $2,600,000 plus accrued interest) under a loan, at a deemed issue price of $0.055 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.

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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 [90 x 51] intentionally omitted <==

Alyn Tai Non-Executive Director 29 April 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