GEOPACIFIC RESOURCES LTD - Capital/Financing Update 2018

ASX: GPR 7 November 2018

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Woodlark DFS confirms high margin development project

The Board of Geopacific Resources Limited (Geopacific ASX: GPR) is pleased to announce the results of the Woodlark Gold Project (Woodlark or the Project) Definitive Feasibility Study (DFS).

The DFS builds on the March 2018 Pre-Feasibility Study (PFS) and the November 2018 Woodlark Ore Reserve Update[1] , delivering strong economic and technical outcomes for a robust Project.

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The Executive Summary of the Woodlark Gold Project DFS is available by clicking here

1 Refer to Table 8 for a breakdown of the Ore Reserve Estimate as announced on 7 November 2018 ‘Woodlark Ore Reserve Update’. 2 Refer to Table 9 for a breakdown of the Mineral Resource Estimate.

Woodlark DFS Project Summary

The Woodlark DFS completed by Lycopodium Pty Ltd (Lycopodium) demonstrates a robust 13-year Project with a compelling development option, both from a technical and financial perspective. The feasibility of the Project is driven by low costs, a positive operating environment and a simple processing route.

All-in sustaining costs (AISC) as low as A$866/oz in the first five years, and A$1,033/oz over the life of mine, are possible due to wide, near surface ore zones. This allows for a very low waste : ore stripping ratio averaging 2.7:1 in the first 2 years driving maximum upfront cashflow. A conventional Carbon in Leach (CIL) processing plant combined with free milling, fast leaching and soft ore provides for strong cash generation. These factors, coupled with a simple mining and processing route, de-risk the Project and provide a rapid payback period due to high margins generated.

Woodlark Island presents an attractive operating environment with many logistical advantages and competitive operating costs, made possible by its flat topography and supportive local community. With the majority of the future labour force living locally, the development of the Project will provide a positive social benefit for the local community while maintaining competitive operational costs. The construction of a dedicated wharf facility within close proximity to operations also provides substantial logistical advantages during the construction and operational phase.

Figure 1 highlights the short payback period generated by a strong, upfront post-tax cashflow of A$343M. Resource growth and new discovery opportunities present a significant upside potential.

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Figure 1: Post-tax cashflow

Managing Director, Ron Heeks said.

“ The Woodlark DFS has demonstrated a high margin, long life operation with an enviable exploration upside. The post-tax cashflow diagram says it all. Payback is fast, cash generation is high and exploration has the potential to provide significant organic growth.

Woodlark is located in a proven mining investment jurisdiction and surrounded by numerous world class gold mines, including very similar, profitable gold operations on nearby islands. The majority of these adjoining operations started life with similar mine life profiles and rapidly expanded once mining commenced. Regional exploration to date clearly demonstrates that Woodlark should follow a similar path, with every further ounce identified creating an even better project.

The Geopacific team, in conjunction with top-tier consultants are to be commended for delivering a project that incorporates an optimal development plan after comprehensive studies and rigorous assessment of many operating scenarios and build options.

We look forward to unlocking the full potential of the Project.”

Key information summary

Table 1: Key information summary

OPERATIONAL PHYSICALS Unit First 5 Yrs of Production Life of Mine*	OPERATIONAL PHYSICALS Unit First 5 Yrs of Production Life of Mine*	OPERATIONAL PHYSICALS Unit First 5 Yrs of Production Life of Mine*	OPERATIONAL PHYSICALS Unit First 5 Yrs of Production Life of Mine*
Strip Ratio Total Material Mined Ore Mined Grade Mined	(x) (kt) (kt) (g/t Au)	3.2 77,601 18,404 1.16	3.9 149,189 30,304 1.11
Contained Gold	(oz Au)	688,948	1,083,291
Ore Processed Grade Recovery	(kt) (g/t Au) (%)	11,804 1.52 90.2%	30,304 1.11 88.8%
Gold Produced	(oz)	522,034	967,117

Excludes pre-strip period

KEY INPUTS	Unit	Life of Mine US$	Life of Mine A$
Gold Price	/oz Au	1,237	1,650
Foreign Exchange	A$ : US$	1.33	0.75
Mining Cost	/t mined	1.88	2.51
Processing Cost	/t processed	10.33	13.77
General & Admin Cost	/t processed	3.35	4.47

CASHFLOW		Life of Mine US$	Life of Mine A$
Cashflow from Operations	Million (M)	469	626
Less: Capital Expenditure	Million (M)	(152)	(202)
Free Cashflow (Pre-tax)	Million (M)	318	424
Less: Income Tax	Million (M)	(60)	(80)
Free Cashflow (Post-tax)	Million (M)	257	343

UNIT COSTS - C1 & AISC		Life of Mine US$	Life of Mine US$	Life of Mine A$
Mining	/oz Au		281	374
Processing	/oz Au		324	431
G&A	/oz Au		105	140
Refining Costs	/oz Au		5	6
Total C1 Costs	/oz Au		714	952
Royalties	/oz Au		28	37
Sustaining Capital	/oz Au		13	18
Corporate Overheads	/oz Au		20	26
Total AISC	/oz Au		775	1,033

FINANCIAL METRICS - POST-TAX		Life of Mine US$M		Life of Mine A$M
NPV@ 8%			148	197
IRR			29%	29%
Project Payback		2.2 Years		2.2 Years

Mining

Mining Plus Pty Ltd (Mining Plus) completed all mining aspects of the DFS including the Ore Reserve estimate. The mining schedule incorporates conventional open pit mining methods from multiple staged pits to allow targeting of the highest grade ore early in the mining schedule.

Near surface mineralisation and the geometry of the orebodies deliver low stripping ratios of 3.0:1 during the first 4 years and 3.9:1 over the life of mine (Figure 2). A total of 149Mt is scheduled to be mined from 3 deposits, Kulumadau, Busai and Woodlark King, over the current 10 year mine. Total material movements are planned to increase progressively from 5Mtpa during the pre-strip to 20Mtpa in year 5 allowing for a staged ramp up.

The staged pits facilitate the mining of material averaging 1.72g/t Au in the first year of operations. When combined with the low strip ratio the Project generates high upfront operating margins, low AISC’s and a fast project payback period.

The high proportion of Measured and Indicated Resources demonstrates confidence in the geological model and enables a high rate of conversion to Ore Reserves. This benefit is carried through to the mining inventory, which contains 64% Proved Ore Reserves, 32% Probable Ore Reserves and 4% (45,699oz Au) of Inferred Mineral Resources which is situated within the pits. There is a low level of geological confidence associated with Inferred mineral resources and there is no certainty that further exploration work will result in the determination of Indicated mineral resources or that the production target itself will be realised. Additional financial modelling confirmed the robust nature of the operation when Inferred material is excluded.

The mining profile highlights the significant upside potential that further exploration can deliver via resource extension and discovery.

Metallurgy

Lycopodium completed the metallurgical and processing aspects of the DFS.

Multiple, progressive stages of metallurgical testwork have been completed for Woodlark, including work undertaken in 1992/1993, 1996, 2010-2012 along with the recently completed program to support the DFS.

The studies concluded that ore from the various Woodlark deposits has moderate abrasion characteristics and requires moderate grinding energy. The proportion of gold amenable to simple gravity separation has been identified as high (>60%) for Kulamadau and Busai and fast leach kinetics sees all recoverable gold extracted from tails within 8 hours. Reagent consumption is low and includes cyanide and lime.

Gold recoveries average 92% for Kulumadau and 91% for Woodlark King with gold extraction correlated to gold head grade. Gold recovery for Busai averages 86% with gold extraction inversely correlated to arsenic grade. Lycopodium have developed regression equations to model recovery across the deposits.

Processing

The conventional CIL processing plant was designed at a 2.4Mtpa capacity, processing 30Mt over a 13 year initial Project life. The production schedule results in estimated average annual production of 94koz of gold for nine years and 104koz gold for the first 5 years.

The favourable metallurgical characteristics outlined above result in low power requirements, low consumable and reagent consumption and allow for highly competitive costs of A$13.77/t processed.

Figure 3 highlights the significant upside potential for additional mill feed from resource growth and discovery. The annual mining and processing schedule is displayed in Table 2.

Table 2: Mining and Processing Schedule by Year

LOM Pre Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10-13	LOM Pre Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10-13	LOM Pre Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10-13	LOM Pre Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10-13

MINING
Strip Ratio Total Mined Ore Mined Grade Mined	(x) (kt) (kt) (g/t Au)	3.9 149,189 30,304 1.11	11.3 2.5 2.6 2.8 3.0 5.6 7.0 6.1 3.5 2.7 - 5,539 10,579 13,815 14,890 18,881 19,436 20,112 20,259 17,563 8,115 - 452 2,991 3,805 3,931 4,742 2,936 2,521 2,865 3,872 2,190 - 1.45 1.48 1.12 1.09 1.12 1.07 0.99 1.04 1.04 0.96 -
Contained Gold	(oz Au)	1,083,291	21,052 142,703 137,387 137,988 170,140 100,729 80,422 95,472 129,610 67,787 -

PROCESSING
Ore Processed Grade Recovery	(kt) (g/t Au) (%)	30,304 1.11 88.8%	- 2,197 2,400 2,400 2,400 2,407 2,400 2,400 2,400 2,407 8,894 - 1.72 1.55 1.54 1.49 1.34 1.14 1.18 1.32 1.05 0.50 0.0% 92.5% 90.2% 87.4% 89.9% 91.1% 88.2% 90.7% 88.9% 86.3% 87.2%
Gold Produced	(oz)	967,117	- 112,226 107,840 103,927 103,320 94,720 77,791 82,630 90,387 70,196 124,079

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Figure 2: Total material mined and strip ratio

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Figure 3: Annual gold production and head grade

Infrastructure

The flat topography of Woodlark Island and the ability to utilise a dedicated wharf facility in close proximity to the mining and processing facilities will provide considerable logistical advantages during the construction and operating phases of the Project.

The major features of Project infrastructure include the process plant, accommodation camp, roads, airstrip, mine services area, mine pits, water supply dam, mine waste dumps and the deep sea tailings placement (DSTP) system.

The process plant and mine services buildings are to be located proximal to the main mining areas. The camp will be approximately 2.7km to the north-east of the process plant to enable easy access from the mine, airstrip and nearby villages.

A dedicated wharf is to be constructed with an onshore depot approximately 7km to the west of the process plant site, accessed by a newly constructed road across flat terrain.

An existing village located in and around the Kulumadau mining area will be relocated to locations selected by the residents outside of the mining lease. This will include the construction of new houses, trade stores and other amenities. Community engagement in relation to the relocation has been extensive and is ongoing, culminating in the finalisation of a relocation agreement signed by all households.

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Figure 4: Deposit location and infrastructure site plan

Project Ownership

Woodlark Mining Limited (WML), a company incorporated in PNG is the 100% holder of the Woodlark Gold Project. Geopacific currently has an economic interest of 93% in WML, comprised of a direct interest of 51% and a further 42% by virtue of its 85% controlling interest in Kula Gold Limited (Kula).

Work is underway to meet the requirements of the third tranche of the Joint Venture Agreement with Kula where Geopacific can earn a direct interest of up to 75% in Woodlark.

Licence to Operate

The Project is well advanced from a permitting perspective, with mining permits in place. Environmental approval for the Woodlark Gold Project was granted in 2014 with a validity of 20 years and Geopacific has developed strong working relationships with PNG Authorities, which continue to express their support for the development of the Project.

Geopacific has submitted an application to amend a number of conditions in the Environment Permit to ensure that it better reflects the current project, including improvements made in relation to reduced land clearing requirements and water management strategies. It is anticipated that this amendment process will be concluded early in Q1 2019.

Currently the Mining Lease contains a condition that requires completion of construction and commissioning of the Project by December 2019. With the DFS now finalised, discussions will be held with the Mineral Resources Authority in PNG to ensure that the updated project schedule is reflected in the conditions of the Mining Lease.

Extensive and ongoing community engagement has taken place over a number of years at Woodlark, including specialist studies completed as part of the Environmental and Social Impact Assessment process. Necessary work has taken place with affected stakeholders to finalise compensation and relocation agreements.

Geopacific enjoys an active and strong relationship with the communities living on Woodlark Island and is committed to a local training and employment strategy, local business development strategy and continual work with communities to ensure that Project benefits extend beyond direct employment and beyond the life of the Project. Woodlark is the primary employer on the Island and will be in a unique position to positively benefit the local and wider community.

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Development Pathway

The completion of the DFS represents a significant milestone supporting development of the Project, subject to the remaining work streams being completed and commercially attractive project financing terms being agreed.

Geopacific considers there are reasonable grounds to assume future funding for development will be available because:

Geopacific’s Board has relevant experience in financing projects of similar scope in similar jurisdictions.
The robust production schedule and rapid payback period provide confidence in the Company’s ability to fund development of the Project through conventional debt and equity finance.
The Company has appointed Ironstone Capital as financial advisors to assist in arranging project finance for Woodlark. Discussions are underway with a selection of reputable local and international banks and financial institutions.
The Company has established a strong, institutional shareholder base including a number of resourcefocused, international investment funds with the capacity to participate in financing development.

The DFS was prepared using an EPCM strategy for the development of capital costs and to allow a competitive tender process to be run on the build contract. The DFS schedule shows the Project can be delivered within 22 months from finalisation of project financing. At completion of the project financing process, the Board will meet to consider all facets relevant to project development and make an appropriate decision.

Deliverables	Q4	Q1	Q2	Q3	Q4	Yr 1	Yr 2
DFS Release
Independent Technical Review
Term Sheets Received and Negotiated
Financial Documentation
Project Financing Complete
EPC Plant Tendering
Board Consideration & Approval
GPR Manning Build Up
Infrastructure Contracts Awarded
Processing Plant Construction
Infrastructure Build
First Ore Mined
Plant Commissioned
Regional Exploration Program

Figure 5: Indicative development timeline

Further opportunities have been identified to reduce the construction time outlined in Figure 5 above, including the assessment of alternative mill sourcing options and the evaluation of the overall contracting structure.

Capital Costs

Establishment Capital

The establishment capital costs were developed by Lycopodium (process plant and tailings), Mincore (site infrastructure) and Mining Plus (mining fleet including light vehicles) in conjunction with the Geopacific team.

The establishment capital estimates are comprehensive and contain allowances for contingency, working capital, opening stocks/first fills and spare parts. Table 3 below outlines the total establishment capital by category.

Table 3: Total establishment capital by category

Desription	Capital Cost
	A$M
Process Plant	65.0
Tailings	12.6
Infrastructure	33.2
EPCM	16.9
Owners Cost	15.0
Total Plant & Infrastructure	142.7
Mining Fleet	17.8
Mining Pre-strip	13.1
Working Capital	11.1
Contingency	13.8
Total Establishment Capital	198.5

Sustaining Capital

The DFS study included the estimation of sustaining capital costs which incorporate additions to the mining fleet, replacement of light vehicles and mine closure costs. Table 4 below outlines the total sustaining capital by category.

Table 4: Total sustaining capital by category

Desription	Capital Cost
	A$M
Mining Capital	15.5
Processing & Admin	0.7
Closure Costs	6.2
Total Sustaining Capital	22.4
LESS:
Capital Disposals	(5.4)
Total Sustaining Capital	17.0

Operating Costs

Mining Costs

The mining operating cost estimates were based on a mining cost model developed by Mining Plus on a first principles basis. The DFS study was based on an owner operator model and the capital cost of the mining fleet and associated light vehicles has been built into the cost estimates.

The life of mine operating cost estimate is A$2.51/t mined which incorporates the benefits of:

competitive labour costs;
material mined from shallow pits with short haulage distances;
flat topography; and
soft ore resulting in reduced drill and blast costs.

A full breakdown of the mining cost estimate, including the pre-stripping costs of A$13.1M, is outlined in Table 5 below.

Table 5: Mining cost estimate by category

Desription LOM Cost	Gross LOM Cost
A$/t mined	A$M
Salaries and On-Costs 0.60	89.8
Equipment Ownership 0.27	39.7
Diesel 0.47	69.9
Equipment Maint 0.39	58.2
GET 0.04	5.6
Tyres 0.10	14.6
Explosives 0.50	74.6
Grade Control Drilling 0.14	21.5
Technical Services 0.01	1.3
Total Mining Cost 2.51	375.2

Processing and General and Administration Costs

The processing cost and general and administrative (G&A) costs estimates were developed by Lycopodium on a first principles basis. The life of mine processing cost estimate is A$13.77/t processed which incorporates the benefits of:

competitive labour costs;
soft ore reducing crushing and grinding costs;
high gravity recoveries; and
low reagent consumption.

The life of mine G&A cost estimate is A$4.47/t processed resulting in a total combined processing and G&A cost estimate of A$18.24/t. This represents a reduction of approximately 20% (A$4.33/t) over the March 2018 PFS numbers.

A full breakdown of the processing and G&A cost estimate is outlined in Table 6.

Table 6: Processing and G&A cost estimate by category

Desription LOM Cost	Gross LOM Cost
A$/t processed	A$M
Power 7.16	217.0
Consumables 3.30	100.1
Maintenance 1.05	31.9
Laboratory 0.11	3.2
Process & Maint 2.15	65.1
Total Processing 13.77	417.3
Infrastructure Power 0.87	26.3
Admin Labour 2.18	66.0
General & Admin 1.43	43.3
Total G&A 4.47	135.6

Unit Costs

The combination of a low operational cost profile along with a robust production schedule makes for highly competitive AISC of A$1,033/oz over the life of mine.The breakdown of life of mine AISC is outlined in Table 7.

Table 7: Life of mine AISC

Desription Years 1-5	LOM
A$/oz weighted average	A$/oz
Mining 363	374
Processing 317	431
G&A 103	141
RefiningCosts 6	6
Total C1 Costs 789	952
Royalties 37	37
Sustaining Capital 21	18
Corporate Overheads 19	26
Total AISC 866	1,033

The AISC are as low as A$726/oz in the first year of production and average A$866/oz for the first 5 years of production. This results in operating margins in excess of A$780/oz[3] in the first 5 years of production and provides an outstanding base for organic growth via exploration.

3 For the first 5 years of production based on the base case gold price of A$1,650/oz.

Figure 6 below displays the C1 Cash Cost and AISC profile over the life of mine and highlights the robust operating margins throughout the operational life.

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Figure 6: All-in Sustaining Costs by Year

Financial Analysis

One of the key differentiating attributes of the Project is the ability to demonstrate outstanding cashflow in the initial years of production, resulting in rapid project payback.

Figure 7 below outlines the cashflow by year, indicating the 2.2 year post-tax project payback.

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Figure 7: Post-tax cashflow by year

The table below outlines the key financial outcomes of the Project including the net present value of cashflows (NPV), internal rate of return (IRR) and project payback period:

Desription Unit	Pre Tax Post Tax
Project Cashflow_(after capital expenditure)_ A$’M	423.5 343.2
NPV @ 8% discount rate A$’M	250.9 197.4
IRR %	33% 29%
Project Payback Years	2.0 2.2

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The above conclusions were drawn from a bespoke financial model prepared by Geopacific to estimate the financial outcomes of the Project. The model was run at a project level, using a gold price of A$1,650/oz, on an ungeared basis with all costs converted to A$.

Geology and Exploration upside

An ongoing regional exploration program aims to expand the resource base and test the potential of the goldfield. Geopacific controls 580km[2] of exploration licences and a 60km[2] Mining Lease, all of which covers the highly prospective volcanic sequences. More than ~300km of development drilling to date has delineated over 1.57Moz of gold resources and all defined resources remain open along strike and down dip. Despite a large historical database, the majority of the licensed area remains underexplored.

Gold mineralisation at Woodlark is Epithermal and tends to occur in clusters along major regional structures. Geophysical surveys were successful in identifying these structures and a major sampling program over these areas commenced in mid-2018. This extensive database and Geopacific’s experience provides a strong foundation from which to grow the Project from the current 13 year life.

Woodlark has the potential to grow into a much larger goldfield with several distinct, high priority exploration target areas:

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Near Pit Resource Extensions

At the Kulumadau deposit, gold mineralisation is open beneath the planned pit in all directions, particularly down dip of the major mineralised trend (Figure 8). Deeper drilling is an obvious near-term opportunity to increase resources at depth and along strike of the planned pits.

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Figure 8: Gold mineralisation open in all directions beneath the planned Kulumadau pit

To date, Geopacific has strategically focussed drilling within conceptual pit shells for development purposes and is yet to test the near-pit potential. The low proportion of Inferred Resources (14%) and the 82% conversion of Resources into Reserves reflects the open nature of defined Resources.

Additionally, a significant area within the proposed pit remains undrilled due to agreed site access restrictions emplaced to avoid disturbing the resident villagers (Figure 9). This area is of high priority, is prospective for gold mineralisation and is currently designated as waste material in the current mining schedule. Drilling of this target will commence once the village relocation program has concluded.

Near Pit “Blind” Resources

Conventional surface sampling and mapping has historically been ineffective due to a layer of sediment that covers the majority of the exploration licenses, making discoveries principally reliant on drilling. Although gold mineralisation is not visible at surface, defined ore bodies are strike-continuous and provide high potential for discoveries beneath the cover adjacent to, or along strike of, known ore bodies.

This has been a recurring theme on Woodlark as demonstrated by the blind discovery of the Boscalo prospect (north of Kulumadau East), which was made by following mineralised structural trends beneath the sedimentary cover. This exemplifies the highly prospective nature of near-resource target areas. Figure 9 highlights known mineralised trends in the Kulumadau region that continue under cover and form high priority exploration targets.

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Figure 9: Kulumadau Area Extensional Exploration Targets

Existing Gold Prospects

The ongoing regional soil sampling and mapping program has already delineated high-grade soil gold anomalies, one of which is 1.4km in length, and has returned values up to 6.26g/t Au. Over 30 known prospect areas are scheduled for systematic exploration assessment in the form of surface geochemical sampling, geological mapping, trenching and if warranted, drilling.

A significant number of drainages show visible gold in gold panning (Figure 10) and all require systematic follow up exploration to assess the source of gold in each drainage. Exploration drilling has a high strike rate of intersecting gold mineralisation, with over 71% of all holes intersecting gold values >0.5 g/t Au downhole.

Regional “Blind” Discoveries

Aeromagnetic data shows a number of major structural features spatially associated with gold mineralisation observed in drilling and outcrop. The 5km-long trend between Busai and Kulumadau is a priority target area (Figure 10) and has not been drill tested as it is hidden under sedimentary cover.

Gold mineralisation at Woodlark King occurs along a prominent north-west trending structural feature with drillholes intersecting >0.5 g/t Au downhole that stop at the edge of covering sediment. Numerous regional structural targets highlighted in red and will be assessed by surface drilling systematically.

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Figure 10: Regional exploration targets

Reserve and Resources

Exploration and mining on Woodlark Island dates back to the 1890s. Modern exploration (post 1962) includes a total of 2,291 drill holes over 288,705m of drilling. This drilling comprises 373 diamond drill holes for 55,378m, 22 RAB holes for 1,729m and 1,896 RC drill holes for 231,599m (to December 2017).

An updated Ore Reserve estimate was released in November 2018[4] which was completed by independent consultants, Mining Plus. The updated Ore Reserve estimate of 28.9Mt @ 1.12g/t Au for 1,037,600oz of gold is detailed in Table 8.

Table 8: Woodlark Ore Reserve Estimate – November 2018

Total by deposit	Category (>0.4g/t lower cut)	Tonnes (Mt)	Grade (g/t)	Ounces (oz)
Busai	Proven	9.3	1.03	307,300
	Probable	4.3	0.87	120,900
Kulumadau	Proven	7.4	1.37	324,700
	Probable	5.2	1.17	196,900
Woodlark King	Proven	1.9	1.06	65,000
	Probable	0.8	0.84	22,800
Total Ore Reserve	Proven	18.6	1.17	697,000
	Probable	10.4	1.02	340,600
	Total	28.9	1.12	1,037,600

The Woodlark Resource is 47Mt @ 1.04g/t Au for 1.57Moz of gold[5] including 222,000oz of gold in the Inferred category (Table 9).

Table 9: Woodlark Project Global Mineral Resources

Category	Tonnes		Grade		Ounces (Thousand)
(>0.4g/t lower cut)	(Million)		g/t Au
Measured		21.24		1.10	754
Indicated		18.94		0.98	597
Inferred		6.8		1.00	222
Total		47.04		1.04	1,573

An ongoing regional exploration program aims to expand the resource base and test the potential of the goldfield.

4 Refer to ‘Woodlark Ore Reserve Update’ announced on 7 November 2018.

5 Refer to the March 2018 Pre-feasibility Study – ‘Robust Woodlark Gold Project PFS Supports Development.’

About Papua New Guinea

Papua New Guinea (PNG) has a long history of mining and hosts numerous world class gold mines including profitable gold operations based on islands (Figure 11).

Mining is a key contributor to the PNG economy with approximately 2 million ounces of gold production per annum. Successful gold production is underpinned by a proven mining investment jurisdiction with a long history of well-tested mining legislation, a democratic government and stable fiscal environment.

PNG is a member of the Commonwealth, Asia-Pacific Economic Cooperation (APEC) and World Trade Organisation (WTO). It holds a strong bilateral relationship with Australia including trade, taxation and investment protection. Australia is a major trade partner and has a significant investment relationship with over $16 billion contributed in foreign direct investment in 2017.

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Figure 11: PNG has a long history of mining and a strong portfolio of mining projects across the country

Contact

For further information please visit www.geopacific.com.au or contact Mr. Ron Heeks, Managing Director.

Company details	Board	Projects
Geopacific Resources Limited	Milan JerkovicChairman	PAPUA NEW GUINEA
ACN 003 208 393	Ron HeeksManaging Director	Woodlark Island Gold
ASX Code: GPR	Mark BojanjacNon-Executive Director	CAMBODIA
[email protected]	Ian ClyneNon-Executive Director	Kou Sa Copper
http://www.geopacific.com.au T +61 8 6143 1820	Colin GilliganNon-Executive Director Matthew SmithCompany Secretary	FIJI Nabila Gold, Rakiraki Gold, Sabeto Gold- Copper, Vuda Gold-Copper, Cakaudrove
HEAD OFFICE		Gold-Silver
Level 1, 278 Stirling Highway, Claremont WA 6010.
PO Box 439, Claremont WA 6910.

Competent Person’s Statement

The information in this announcement that relates to exploration results is based on information compiled by or under the supervision of James Kerr, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy and General Manager, Geology for Geopacific. Mr Kerr has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Kerr consents to the inclusion in the announcement of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Woodlark Mineral Resources is based on information compiled and reviewed by Mr Nicholas Johnson, a Competent Person who is a Member of the Australian Institute of Geoscientists and a full-time employee of MPR Geological Consultants Pty Ltd. Mr Johnson has sufficient experience which is relevant to the style of mineralization and type of deposits under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the JORC Code 2012 and is a qualified person for the purposes of NI43-101. Mr Johnson has no economic, financial or pecuniary interest in the company and consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

The information in this report that relates to Woodlark Mineral Reserves is based on information compiled and reviewed by Mr John Battista, a Competent Person who is a Member and Chartered Professional of the Australian Institute of Mining and Metallurgy (AusIMM) and a full-time employee of Mining Plus Pty Ltd. Mr Battista has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the JORC Code 2012 and is a qualified person for the purposes of NI43-101. Mr Battista has no economic, financial or pecuniary interest in the company and consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

Forward Looking Statements

All statements other than statements of historical fact included in this announcement including, without limitation, statements regarding future plans and objectives of Geopacific Resources Limited are forward-looking statements. When used in this announcement, forward-looking statements can be identified by words such as ‘may’, ‘could’, ‘believes’, ‘estimates’, ‘targets’, ‘expects’ or ‘intends’ and other similar words that involve risks and uncertainties.

These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that, as at the date of this announcement, are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the company, its directors and management of Geopacific Resources Ltd that could cause Geopacific Resources Limited’s actual results to differ materially from the results expressed or anticipated in these statements.

Geopacific Resources Ltd cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this announcement will actually occur and investors are cautioned not to place undue reliance on these forward-looking statements. Geopacific Resources Ltd does not undertake to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this announcement, except where required by applicable law and stock exchange listing requirements. Woodlark is permitted by the PNG Government, subject to meeting the conditions of the licence.

Appendix A: JORC Code, 2012 Edition – Table 1

Section 1: Sampling Techniques and Data

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

CRITERIA	JORC CODE EXPLANATION	COMMENTARY
Sampling techniques	Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.	Sampling was conducted using diamond drilling (DD) and Reverse Circulation Drilling (RC). Sampling of the diamond drilling comprised half core samples taken based on lithological, alteration, and mineralisation breaks observed in geological logging. Generally, sampling is at 1m intervals. 1 in 50 samples is a duplicate sample, taken from quarter core. Core recovery is routinely recorded for each drill run RC drilling samples were collected in 1m intervals from a cyclone and weighed. The entire sample is riffle split using a 75% / 25% splitter, yielding approximately 3kg sub split for assaying. The 75% split is stored in plastic sample bags and removed from site on the completion of the hole to a bag farm for future reference if required. The sample splitter is cleaned with compressed air and water if necessary to ensure no contamination between samples. 1 in 50 samples is a duplicate sample, collected as a re-split of the residual sample material. All samples were submitted to ITS Pty Ltd PNG (Intertek Services Ltd) - operated sample preparation laboratory on site. Sample pulps were sent for fire assay gold and four- acid multi-element analysis by ICPMS method at Intertek Genalysis Townsville analytical laboratory. Blank, duplicate, and standard samples were inserted at various intervals based on Geopacific’s QAQC procedure to ensure sample representivity and repeatability of the sampling results.

		COMMENTARY Core was cut in half using a core saw. Where core competency was low, whole core was wrapped in plastic clingfilm to help maintain integrity of the sampled interval while being cut. Samples were prepared on the on-site sample prep laboratory operated by ITS Pty Ltd PNG (Intertek Services Ltd). Standard preparation of samples is to kiln dry samples, crush ~2kg through a jaw crusher, with a blank bottle wash between each sample. Crushed sample is then transferred to a LM-2 pulveriser for reduction to pulp. A 150gm pulp sample is split from the master sample and submitted for analysis. Coarse reject material and pulps are bagged and stored on site for future reference. Samples were sent for fire assay gold analysis using a 50g charge, as well as multi-element analysis using multi-acid digest with ICP finish at Intertek’s Townsville laboratory. Geopacific Resources diamond drilling was undertaken using triple tube methodology in PQ or HQ core diameter depending on the ground conditions and depth of investigation. Casing of DD holes was to variable depths depending on ground conditions. All core was oriented using Reflex ACT III digital orientation equipment. Geopacific Resources RC drilling utilised a dual- purpose Sandvik D880 rig, capable of drilling RC and diamond. RC drilling used a 139mm face sampling hammer and cyclone return. All RC holes were pvc collared to 12m minimum. A 350psi / 850cfm compressor plus booster compressor were utilised for RC drilling. Some holes completed by Geopacific used RC drilling for a pre-collar and diamond drilling for the lower part of the hole. These holes are prefixed RD, e.g. KU17RD011 is an RC pre-collar hole with a diamond tail. All holes were downhole surveyed using a Reflex EZ Gyroscope. Core recovery is recorded by measuring the core recovered from the drill hole against the actual drilled metres. RC drilling samples were all weighed on collection from the cyclone, with relative moisture content noted. A back-calculation of sample weight relative to estimated specific gravity is made to assess for potential downhole blowouts (where the hole diameter gets enlarged by the action of the compressed air against the wall rock at certain intervals, potentially causing downhole contamination).
CRITERIA	JORC CODE EXPLANATION	COMMENTARY
	Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was 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 (e.g. submarine nodules) may warrant disclosure of detailed information.	Core was cut in half using a core saw. Where core competency was low, whole core was wrapped in plastic clingfilm to help maintain integrity of the sampled interval while being cut. Samples were prepared on the on-site sample prep laboratory operated by ITS Pty Ltd PNG (Intertek Services Ltd). Standard preparation of samples is to kiln dry samples, crush ~2kg through a jaw crusher, with a blank bottle wash between each sample. Crushed sample is then transferred to a LM-2 pulveriser for reduction to pulp. A 150gm pulp sample is split from the master sample and submitted for analysis. Coarse reject material and pulps are bagged and stored on site for future reference. Samples were sent for fire assay gold analysis using a 50g charge, as well as multi-element analysis using multi-acid digest with ICP finish at Intertek’s Townsville laboratory.
Drilling Techniques	Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc.).	Geopacific Resources diamond drilling was undertaken using triple tube methodology in PQ or HQ core diameter depending on the ground conditions and depth of investigation. Casing of DD holes was to variable depths depending on ground conditions. All core was oriented using Reflex ACT III digital orientation equipment. Geopacific Resources RC drilling utilised a dual- purpose Sandvik D880 rig, capable of drilling RC and diamond. RC drilling used a 139mm face sampling hammer and cyclone return. All RC holes were pvc collared to 12m minimum. A 350psi / 850cfm compressor plus booster compressor were utilised for RC drilling. Some holes completed by Geopacific used RC drilling for a pre-collar and diamond drilling for the lower part of the hole. These holes are prefixed RD, e.g. KU17RD011 is an RC pre-collar hole with a diamond tail. All holes were downhole surveyed using a Reflex EZ Gyroscope.
Drill Sample Recovery	Method of recording and assessing core and chip sample recoveries and results assessed.	Core recovery is recorded by measuring the core recovered from the drill hole against the actual drilled metres. RC drilling samples were all weighed on collection from the cyclone, with relative moisture content noted. A back-calculation of sample weight relative to estimated specific gravity is made to assess for potential downhole blowouts (where the hole diameter gets enlarged by the action of the compressed air against the wall rock at certain intervals, potentially causing downhole contamination).

	JORC CODE EXPLANATION COMMENTARY Measures taken to maximise sample recovery and ensure representative nature of the samples. Triple tube drilling as well as shorter runs in zones of broken ground were used to maximise the sample recovery. A rigorous programme of experimentation and refinement of drilling mud regimes was conducted, resulted in significant improvements to recoveries in poor ground conditions when compared to historical drilling in similar zones. 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. Historically, some core loss was recorded in particularly poor ground, especially at Kulumadau West diamond drilling. Gold mineralisation in the cataclasite zones is typically preferentially within the fine, muddy breccia matrix as opposed to the harder, resistant breccia clasts. Unless great care is taken through these zones, DD drilling may inadvertently wash away the mineralised clays, resulting in overall core loss and significantly reduced gold grades in the sampled interval. Geopacific has gone to great lengths to improve drilling methodology and practice and as a result, has consistently achieved good core recoveries. Overall, there is no discernible bias recorded against gold values and sample recoveries in Geopacific DD and RC holes. Some concerns over potential smearing of gold grades in RC drilling pre 1996 were identified. These holes were removed from the database for resource calculation purposes and replaced by new RC holes. Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. All drill samples were geologically logged by Geopacific geologists using Geopacific’s logging procedure. Geotechnical logging of Rock Quality Designation (RQD), hardness, degree of fracturing and weathering is undertaken by Geopacific staff using Geopacific’s logging procedure. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography. Drill core and RC chips were logged both qualitatively (e.g. lithology, alteration, structure, etc.) and quantitatively (e.g. veining and mineralisation percentage, structural orientation angles, etc.). Drill core is photographed both dry and wet and is stored in plastic core trays in our exploration core yard. The total length and percentage of the relevant intersections logged. All holes are logged their entire length. If core, whether cut or sawn and whether quarter, half or all core taken. Core is halved, with one half sent for sample preparation and analysis. The remaining core is stored in the core trays on site.	JORC CODE EXPLANATION COMMENTARY Measures taken to maximise sample recovery and ensure representative nature of the samples. Triple tube drilling as well as shorter runs in zones of broken ground were used to maximise the sample recovery. A rigorous programme of experimentation and refinement of drilling mud regimes was conducted, resulted in significant improvements to recoveries in poor ground conditions when compared to historical drilling in similar zones. 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. Historically, some core loss was recorded in particularly poor ground, especially at Kulumadau West diamond drilling. Gold mineralisation in the cataclasite zones is typically preferentially within the fine, muddy breccia matrix as opposed to the harder, resistant breccia clasts. Unless great care is taken through these zones, DD drilling may inadvertently wash away the mineralised clays, resulting in overall core loss and significantly reduced gold grades in the sampled interval. Geopacific has gone to great lengths to improve drilling methodology and practice and as a result, has consistently achieved good core recoveries. Overall, there is no discernible bias recorded against gold values and sample recoveries in Geopacific DD and RC holes. Some concerns over potential smearing of gold grades in RC drilling pre 1996 were identified. These holes were removed from the database for resource calculation purposes and replaced by new RC holes. Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. All drill samples were geologically logged by Geopacific geologists using Geopacific’s logging procedure. Geotechnical logging of Rock Quality Designation (RQD), hardness, degree of fracturing and weathering is undertaken by Geopacific staff using Geopacific’s logging procedure. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography. Drill core and RC chips were logged both qualitatively (e.g. lithology, alteration, structure, etc.) and quantitatively (e.g. veining and mineralisation percentage, structural orientation angles, etc.). Drill core is photographed both dry and wet and is stored in plastic core trays in our exploration core yard. The total length and percentage of the relevant intersections logged. All holes are logged their entire length. If core, whether cut or sawn and whether quarter, half or all core taken. Core is halved, with one half sent for sample preparation and analysis. The remaining core is stored in the core trays on site.
CRITERIA	JORC CODE EXPLANATION	COMMENTARY
	Measures taken to maximise sample recovery and ensure representative nature of the samples.	Triple tube drilling as well as shorter runs in zones of broken ground were used to maximise the sample recovery. A rigorous programme of experimentation and refinement of drilling mud regimes was conducted, resulted in significant improvements to recoveries in poor ground conditions when compared to historical drilling in similar zones.
	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.	Historically, some core loss was recorded in particularly poor ground, especially at Kulumadau West diamond drilling. Gold mineralisation in the cataclasite zones is typically preferentially within the fine, muddy breccia matrix as opposed to the harder, resistant breccia clasts. Unless great care is taken through these zones, DD drilling may inadvertently wash away the mineralised clays, resulting in overall core loss and significantly reduced gold grades in the sampled interval. Geopacific has gone to great lengths to improve drilling methodology and practice and as a result, has consistently achieved good core recoveries. Overall, there is no discernible bias recorded against gold values and sample recoveries in Geopacific DD and RC holes. Some concerns over potential smearing of gold grades in RC drilling pre 1996 were identified. These holes were removed from the database for resource calculation purposes and replaced by new RC holes.
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	All drill samples were geologically logged by Geopacific geologists using Geopacific’s logging procedure. Geotechnical logging of Rock Quality Designation (RQD), hardness, degree of fracturing and weathering is undertaken by Geopacific staff using Geopacific’s logging procedure.
	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.	Drill core and RC chips were logged both qualitatively (e.g. lithology, alteration, structure, etc.) and quantitatively (e.g. veining and mineralisation percentage, structural orientation angles, etc.). Drill core is photographed both dry and wet and is stored in plastic core trays in our exploration core yard.

	The total length and percentage of the relevant intersections logged.	All holes are logged their entire length.
Sub-sampling techniques	If core, whether cut or sawn and whether quarter, half or all core taken.	Core is halved, with one half sent for sample preparation and analysis. The remaining core is stored in the core trays on site.

		COMMENTARY RC drilling used a cyclone and riffle splitter for dry samples. If samples were damp, cuttings were heaped, quartered, spear sampled, with the process repeated 8 times per sample to generate a representative sample. Unless drilling a pre-collar, RC drilling is terminated if the sample cannot be delivered dry. For pre-collar RC drilling, RC drilling is outside the target ore zone and as there is no expectation of encountering mineralisation, there is minimal concern over potential sample contamination for this section of the drill hole if the sample is delivered wet. 4 metre composite samples are collected for this style of drilling to ensure analytical coverage of the entire hole. Samples are kiln dried, crushed to a nominal 2mm by a jaw crusher, with the whole sample pulverised to 85% passing 75µm and then split; one 150gm sample for submission with residue stored on site. Field blank, duplicate, and standard samples are introduced to maximise the representivity of the samples. Two blank samples, two reference standard samples and two duplicate samples are included per 100 samples. Field duplicates are inserted in accordance with Geopacific’s QAQC procedure. This includes two blank samples and two field duplicate samples. Field duplicated for RC drilling are created by splitting a 1m sample twice into two separate samples. For DD core, core is quartered, with quarter core per sample interval used. Sample sizes are appropriate to the grain size of the material being sampled. 50gm fire assay Au and four-acid digest ICP analysis are thought to be appropriate for determination of gold and base metals in fresh rock and are considered to represent a total analysis. Representative check samples were submitted to ALS laboratories to assess the effectiveness of 50gm Fire Assay method by repeating both Fire Assay and Aqua Regia gold analyses, with acceptable results. No results from geophysical tools, spectrometers, or handheld XRF instruments are included in this report. Some modelling of As values of historical drill sample pulps using a hand held XRF instrument was undertaken.
CRITERIA	JORC CODE EXPLANATION	COMMENTARY
and sample preparation	If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry.	RC drilling used a cyclone and riffle splitter for dry samples. If samples were damp, cuttings were heaped, quartered, spear sampled, with the process repeated 8 times per sample to generate a representative sample. Unless drilling a pre-collar, RC drilling is terminated if the sample cannot be delivered dry. For pre-collar RC drilling, RC drilling is outside the target ore zone and as there is no expectation of encountering mineralisation, there is minimal concern over potential sample contamination for this section of the drill hole if the sample is delivered wet. 4 metre composite samples are collected for this style of drilling to ensure analytical coverage of the entire hole.
	For all sample types, the nature, quality and appropriateness of the sample preparation technique.	Samples are kiln dried, crushed to a nominal 2mm by a jaw crusher, with the whole sample pulverised to 85% passing 75µm and then split; one 150gm sample for submission with residue stored on site.
	Quality control procedures adopted for all sub- sampling stages to maximise representivity of samples.	Field blank, duplicate, and standard samples are introduced to maximise the representivity of the samples. Two blank samples, two reference standard samples and two duplicate samples are included per 100 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.	Field duplicates are inserted in accordance with Geopacific’s QAQC procedure. This includes two blank samples and two field duplicate samples. Field duplicated for RC drilling are created by splitting a 1m sample twice into two separate samples. For DD core, core is quartered, with quarter core per sample interval used.
	Whether sample sizes are appropriate to the grain size of the material being sampled.	Sample sizes are appropriate to the grain size of the material being sampled.
Quality of assay data and laboratory tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	50gm fire assay Au and four-acid digest ICP analysis are thought to be appropriate for determination of gold and base metals in fresh rock and are considered to represent a total analysis. Representative check samples were submitted to ALS laboratories to assess the effectiveness of 50gm Fire Assay method by repeating both Fire Assay and Aqua Regia gold analyses, with acceptable results.
	For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.	No results from geophysical tools, spectrometers, or handheld XRF instruments are included in this report. Some modelling of As values of historical drill sample pulps using a hand held XRF instrument was undertaken.

		COMMENTARY Field and lab blank, duplicate, and independent certified standard samples were used in drilling. Laboratory blanks, duplicates and reference standards are routinely used. Results from these QAQC samples were within the acceptable ranges, with the only exception being the detection of very low values of gold in a blank sample. The weak gold value in a blank sample was attributed to a preceding sample containing significant amounts of free gold, which appeared to have contaminated the jaw crusher in the sample prep laboratory. A full review of equipment cleaning and increased attention to the bottle wash process has eliminated any repeat of this occurrence. Significant intersections were inspected by senior geological staff. Twin holes were drilled as part of the evaluation and QAQC process for Kulumadau, Busai and Woodlark King deposits. Twin holes were utilised in the resource calculations for each respective deposits. Data entry, data validation and database protocols are an integral part of the capture and use of geological information. A rigorous industry- standard system is utilised, which is administered by an Independent third party to ensure data integrity and off-site data backup. No adjustments were made or required to be made to the assay data. Some historical RC drill holes were removed from the database due to sample contamination concerns. These holes were re drilled. Drill hole collars were located using a total station surveying instrument. Survey control points were established in 2007 across the project and provide excellent ground control for total station surveying. Downhole surveys using a Reflex EZ Gyro were conducted on all drillholes with readings recorded every 5 metres downhole. Historical drilling utilised both a single shot down hole camera and a multi shot downhole camera to determine downhole dip and azimuth readings. Coordinates are recorded in PNG94 geodetic system LiDAR survey data obtained over the licence area, tied in to total station collar readings provide sub- metre accuracy.
CRITERIA	JORC CODE EXPLANATION	COMMENTARY
	Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	Field and lab blank, duplicate, and independent certified standard samples were used in drilling. Laboratory blanks, duplicates and reference standards are routinely used. Results from these QAQC samples were within the acceptable ranges, with the only exception being the detection of very low values of gold in a blank sample. The weak gold value in a blank sample was attributed to a preceding sample containing significant amounts of free gold, which appeared to have contaminated the jaw crusher in the sample prep laboratory. A full review of equipment cleaning and increased attention to the bottle wash process has eliminated any repeat of this occurrence.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel.	Significant intersections were inspected by senior geological staff.
	The use of twinned holes.	Twin holes were drilled as part of the evaluation and QAQC process for Kulumadau, Busai and Woodlark King deposits. Twin holes were utilised in the resource calculations for each respective deposits.
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	Data entry, data validation and database protocols are an integral part of the capture and use of geological information. A rigorous industry- standard system is utilised, which is administered by an Independent third party to ensure data integrity and off-site data backup.
	Discuss any adjustment to assay data.	No adjustments were made or required to be made to the assay data. Some historical RC drill holes were removed from the database due to sample contamination concerns. These holes were re drilled.
Location of data points	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	Drill hole collars were located using a total station surveying instrument. Survey control points were established in 2007 across the project and provide excellent ground control for total station surveying. Downhole surveys using a Reflex EZ Gyro were conducted on all drillholes with readings recorded every 5 metres downhole. Historical drilling utilised both a single shot down hole camera and a multi shot downhole camera to determine downhole dip and azimuth readings.
	Specification of the grid system used.	Coordinates are recorded in PNG94 geodetic system
	Quality and adequacy of topographic control.	LiDAR survey data obtained over the licence area, tied in to total station collar readings provide sub- metre accuracy.

		COMMENTARY Drilling used to inform the resource estimates is variably spaced from as close as 5m x 5m basis in some areas to a more nominal 25m x 40m spacing. Generally speaking, the high grade sections of both Busai and Kulumadau are very tightly drilled. Drilling results referred to in this report confirm mineralisation delineated in previous drilling and confirm both grade and geological continuity. Drill spacing is deemed to be appropriate for this style of mineralisation. Some RC drilling utilised 4m composites for initial sampling of zones considered unlikely to host mineralisation. All samples were split at 1m intervals and where deemed appropriate, composited using a 75/25 riffle splitter. Where composite samples returned a gold value greater than 0.25g/t Au, the zone was re sampled using original 1 metre sample splits collected when the hole was drilled. Current interpretations of the mineralised zones in all areas indicate that the orientation of the drillholes has achieved unbiased sampling of the structures. An interpretation of the mineralisation has indicated that no sampling bias has been introduced to the drillholes reported herein. All samples are collected by GPR staff and put into numbered plastic bags, along with a corresponding sample ticket, which are immediately sealed and placed in order on a pallet with other samples in an area directly adjacent to the onsite sample preparation laboratory. The pallet containing the sealed samples is then delivered directly into the onsite sample prep lab, where chain of custody hands over to ITS Ltd. QAQC sample data is constantly collected and reviewed for each sample submission.
CRITERIA	JORC CODE EXPLANATION	COMMENTARY
Data spacing and distribution	Data spacing for reporting of resource calculation results.	Drilling used to inform the resource estimates is variably spaced from as close as 5m x 5m basis in some areas to a more nominal 25m x 40m spacing. Generally speaking, the high grade sections of both Busai and Kulumadau are very tightly drilled.
	Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.	Drilling results referred to in this report confirm mineralisation delineated in previous drilling and confirm both grade and geological continuity. Drill spacing is deemed to be appropriate for this style of mineralisation.
	Whether sample compositing has been applied.	Some RC drilling utilised 4m composites for initial sampling of zones considered unlikely to host mineralisation. All samples were split at 1m intervals and where deemed appropriate, composited using a 75/25 riffle splitter. Where composite samples returned a gold value greater than 0.25g/t Au, the zone was re sampled using original 1 metre sample splits collected when the hole was drilled.
Orientation of data in relation to geological structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.	Current interpretations of the mineralised zones in all areas indicate that the orientation of the drillholes has achieved unbiased sampling of the structures.
	If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	An interpretation of the mineralisation has indicated that no sampling bias has been introduced to the drillholes reported herein.
Sample security	The measures taken to ensure sample security.	All samples are collected by GPR staff and put into numbered plastic bags, along with a corresponding sample ticket, which are immediately sealed and placed in order on a pallet with other samples in an area directly adjacent to the onsite sample preparation laboratory. The pallet containing the sealed samples is then delivered directly into the onsite sample prep lab, where chain of custody hands over to ITS Ltd.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	QAQC sample data is constantly collected and reviewed for each sample submission.

Section 2 Reporting of Exploration Results

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

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 settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	Woodlark Mining Limited (WML) holds a 100% interest in Mining Lease 508, within which all reported resources in this report are located. WML is owned 49% by Kula Gold Limited (Kula), a Public Company incorporated in New South Wales, Australia, and 51% by Geopacific Resources Limited (Geopacific), a Public Company incorporated in Western Australia, Australia. Geopacific is the largest shareholder of Kula with an 85% holding. Geopacific’s total interest in WML is 93%, which includes both the direct interest and the indirect interest through Kula. Geopacific became the Project Manager in October 2016 and has been responsible for all activities on the Project since that time. Mining Lease 508 was granted to Woodlark Mining Limited on the 4th of July 2014 and is valid for 21 years, renewable.
Exploration done by other parties	Acknowledgment and appraisal of exploration by other parties.	This report is primarily based on work done by Geopacific Resources Limited.
Geology	Deposit type, geological setting and style of mineralisation.	Most of Woodlark Island is covered by a veneer of Plio-Pleistocene limestones (coronus) of variable thickness with associated marine clays and basal conglomerates. A central elevated portion of the island (horst structure) contains Miocene volcanic rocks. Gold mineralisation within the Woodlark Island Gold Project is principally hosted by andesites and their sub-volcanic equivalents within the Miocene age stratigraphic unit known as the Okiduse Volcanics. The mineralisation is variously associated with lodes, quartz veins, stockwork zones and breccias developed within proximal phyllic and marginal propylitic alteration envelopes regionally associated with intrusive breccia complexes. Gold mineralisation is consistent with low sulphidation, base metal carbonate, epithermal systems typical of the south-west Pacific.

		COMMENTARY This report does not refer to exploration results specifically. This report does not refer to exploration results specifically. Aggregated intercepts are not reported. No metal equivalent values are reported. The orientation of drilling relative to strike and dip of mineralisation encountered suggests there is some variability to how perpendicular drillholes have intersected mineralised zones. All drilling attempts to intersect mineralised as close to perpendicular as is possible. All intercepts are downhole and not true width calculations. Diagrams relevant to the report content are included in the body of the report. This report does not refer to exploration results specifically.
CRITERIA	JORC CODE EXPLANATION	COMMENTARY
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: `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.	This report does not refer to exploration results specifically.
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.	This report does not refer to exploration results specifically.
	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.	Aggregated intercepts are not reported.
	The assumptions used for any reporting of metal equivalent values should be clearly stated.	No metal equivalent values are reported.
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle 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’).	The orientation of drilling relative to strike and dip of mineralisation encountered suggests there is some variability to how perpendicular drillholes have intersected mineralised zones. All drilling attempts to intersect mineralised as close to perpendicular as is possible. All intercepts are downhole and not true width calculations.
Diagrams	Appropriate maps and sections (with scales) and tabulations of 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.	Diagrams relevant to the report content are included in the body of the report.
Balanced reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	This report does not refer to exploration results specifically.

		COMMENTARY Additional information generated through the exploration process and through specific, targeted work programmes is utilised in the calculation of Resources and Reserves as set out in Sections 3 and 4 of Table 1. Exploration activities undertaken by Geopacific to date have identified numerous exploration targets that are actively being assessed. Geopacific intends to maintain an active exploration presence on Woodlark Island.
CRITERIA	JORC CODE EXPLANATION	COMMENTARY
Other substantive exploration data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	Additional information generated through the exploration process and through specific, targeted work programmes is utilised in the calculation of Resources and Reserves as set out in Sections 3 and 4 of Table 1.
Further work	The nature and scale of planned further work (e.g. tests for lateral 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 this information is not commercially sensitive.	Exploration activities undertaken by Geopacific to date have identified numerous exploration targets that are actively being assessed. Geopacific intends to maintain an active exploration presence on Woodlark Island.

Section 3: Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

CRITERIA	JORC CODE EXPLANATION	COMMENTARY
Database integrity	Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.	Geopacific utilise a digital logging process for data collection that interfaces with a rigorous software auditing and tracking system that validates data entry prior to uploading to the database. Pre-determined logging codes, internal meterage calculation and cross references plus unique sample number identifiers are all utilised to ensure the quality of input data. Any modification of data once entered into the database is key stroke recorded by user name to ensure both accountability and ability to reverse changes if required. All data is re-validated by site geologists post merge with assay data against physical core and drill cuttings.
	Data validation procedures used.	Following importation, the data goes through a series of digital checks for duplication and non-conformity, followed by manual validation by the relevant project geologist who checks the collar, survey, assay and geology for errors against the original field data and final paper copies of the assays. The process is documented, including the recording of holes checked, errors found, corrections made and the date of database update. Basic validation checks are carried out to confirm the data is valid and acceptable to support resource estimation work. MPR Geological Consultants Pty Ltd (“MPR”) reviewed the QA/QC results and Geopacific drilled twin holes to assess the veracity of the sampling and assaying of historical drilling.
Site visits	Comment on any site visits undertaken by the Competent Person and the outcome of those visits. If no site visits have been undertaken indicate why this is the case.	Nicolas Johnson of MPR visited the Woodlark Gold Project in January 2018 to review the project geology and exploration field practices as part of the 2018 Mineral Resource update.
Geological interpretation	Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit.	The confidence in the geological interpretation is considered to be good and is based on drilling and ongoing logging.
	Nature of the data used and of any assumptions made.	The drill hole database used for resource estimation consists of DD core and RC samples. Numerous validation steps have been taken by MPR and Geopacific Competent persons. MPR is of the opinion that the accepted drill hole database is of sufficient quality to support the estimation of Mineral Resources.
	The effect, if any, of alternative interpretations on Mineral Resource estimation.	The geology and interpretation of the deposits is considered robust. There is no apparent alternative to the interpretation in the competent person’s opinion.

		COMMENTARY The logging in the geological data base of lithology and weathering were considered during the mineralisation domain interpretations The infill drilling performed by Geopacific during the 2016 and 2017 drilling campaigns have increased confidence in grade and geology interpretations which are the basis for the Mineral resource estimation. The Kulumadau Mineral Resources area extends over strike length of 650m and a plan width of 850m. Typical width of the gold mineralisation zones are up to 60 to 90m. Vertically, the Mineral Resource extends 280m from surface. The Busai Mineral Resources area extends over strike length of 1,150m and a plan width of 660m. Typical width of the gold mineralisation zones are up to 40 to 60m. Vertically, the Mineral Resource extends 180m from surface. The Woodlark King Mineral Resources area extends over a strike length of 1,500m and a plan width of 300m. Typical width of the main zone of gold mineralisation is 40 to 60m. Vertically, the Mineral Resource extends 120m from surface. Munasi Mineral Resource area extends over a strike length of 650m and a plan width of 260m. Width of the main zone of gold mineralisation is 100m. Vertically, the Mineral Resource extends 130m from surface. MPR used the method of Multiple Indicator Kriging (MIK) with block support adjustment to estimate gold resources into blocks with dimensions of 20 m (east) by 25 m (north) by 5m (elevation). MIK of gold grades used indicator variography based on the two-metre resource composite sample grades. Gold grade continuity was characterised by indicator variograms at 14 indicator thresholds spanning the global range of grades. A block support adjustment was used to estimate the gold resources at Woodlark. The shape of the local block gold grade distribution has been assumed lognormal and an additional adjustment for the “Information Effect” has been applied to arrive at the final Mineral Resource estimates. MIK was used as the preferred method for estimation of gold resources at Woodlark as the approach has been demonstrated to work well in a large number of deposits of diverse geological styles. The gold mineralisation seen at Woodlark is typical of that seen in most structurally controlled epithermal gold deposits where the MIK method has been found to be of most benefit. In the MPR study data viewing, compositing and wire- framing have been performed using Micromine software. Exploratory data analysis, variogram calculation and modelling, and resource estimation have been performed usingFSSI Consultants(Australia)PtyLtd
CRITERIA	JORC CODE EXPLANATION	COMMENTARY
	The use of geology in guiding and controlling Mineral Resource estimation.	The logging in the geological data base of lithology and weathering were considered during the mineralisation domain interpretations
	The factors affecting continuity both of grade and geology.	The infill drilling performed by Geopacific during the 2016 and 2017 drilling campaigns have increased confidence in grade and geology interpretations which are the basis for the Mineral resource estimation.
Dimensions	The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.	The Kulumadau Mineral Resources area extends over strike length of 650m and a plan width of 850m. Typical width of the gold mineralisation zones are up to 60 to 90m. Vertically, the Mineral Resource extends 280m from surface. The Busai Mineral Resources area extends over strike length of 1,150m and a plan width of 660m. Typical width of the gold mineralisation zones are up to 40 to 60m. Vertically, the Mineral Resource extends 180m from surface. The Woodlark King Mineral Resources area extends over a strike length of 1,500m and a plan width of 300m. Typical width of the main zone of gold mineralisation is 40 to 60m. Vertically, the Mineral Resource extends 120m from surface. Munasi Mineral Resource area extends over a strike length of 650m and a plan width of 260m. Width of the main zone of gold mineralisation is 100m. Vertically, the Mineral Resource extends 130m from surface.

Estimation and modelling techniques	The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used.	MPR used the method of Multiple Indicator Kriging (MIK) with block support adjustment to estimate gold resources into blocks with dimensions of 20 m (east) by 25 m (north) by 5m (elevation). MIK of gold grades used indicator variography based on the two-metre resource composite sample grades. Gold grade continuity was characterised by indicator variograms at 14 indicator thresholds spanning the global range of grades. A block support adjustment was used to estimate the gold resources at Woodlark. The shape of the local block gold grade distribution has been assumed lognormal and an additional adjustment for the “Information Effect” has been applied to arrive at the final Mineral Resource estimates. MIK was used as the preferred method for estimation of gold resources at Woodlark as the approach has been demonstrated to work well in a large number of deposits of diverse geological styles. The gold mineralisation seen at Woodlark is typical of that seen in most structurally controlled epithermal gold deposits where the MIK method has been found to be of most benefit. In the MPR study data viewing, compositing and wire- framing have been performed using Micromine software. Exploratory data analysis, variogram calculation and modelling, and resource estimation have been performed usingFSSI Consultants(Australia)PtyLtd


CRITERIA	JORC CODE EXPLANATION	COMMENTARY
		(FSSI) GS3M software. GS3M is designed specifically for estimation of recoverable resources using MIK. The sample data set containing all available assaying were composited to two metre intervals each located by their mid-point co-ordinates and assigned a length weighted average gold grade. The composite length of two metres was chosen because it is a multiple of the most common sampling interval (1.0 metre) and is also an appropriate choice for the kriging of gold into the model blocks where open pit mining is expected to be undertaken on 2.5 metre benches.
	The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.	No modern mining data available.
	The assumptions made regarding recovery of by-products.	No by-products are present or modelled.
	Estimation of deleterious elements or other non-grade variables of economic significance (e.g. sulphur for acid mine drainage characterisation).	No deleterious elements were estimated or assumed.
	In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.	Block dimensions of 20m (across strike) by 25m (along strike) by 5m (elevation) was chosen as it approximates the average drill hole spacing in the horizontal direction, with the 5m elevation being a multiple of the mining bench height of 2.5m. The interpolation utilised a 3-pass octant search strategy with search radii generally in the order of category 1 searching 20m and 25m in the x and y direction and 15m in the z direction, 16 minimum composites used, a maximum of 4 composites per octant and a minimum of 4 octants with data. Category 2 uses a 50% search distance increase but otherwise the same parameters and category 3 uses the same search distance as category 2 but only requires 8 minimum composites and only 2 octants require data. The search ellipse on each category is consistently orientated and orthogonal to drilling grid.
	Any assumptions behind modelling of selective mining units.	A block support adjustment was used to estimate the recoverable gold resources at each deposit. The shape of the local block gold grade distribution has been assumed lognormal and an additional adjustment for the “Information Effect” has been applied to arrive at the final Resource estimates. Selective mining unit assumed to be in the general range 4mE by 8mN by 2.5mRL.
	Any assumptions about correlation between variables.	No correlated variables have been investigated or estimated.

		COMMENTARY The 2m resource composites were initially coded by the mineralisation domain interpretations and the resultant primary domain coding further subdivided using the weathering surfaces to form sub-domains. Sample composites in each primary and sub-domain combination were reviewed for their univariate and indicator statistics and spatial continuity and were the basis of grade modelling. The selection of the medians instead of means for the average grade of the highest indicator thresholds in each resource model were used to guard against a few higher grades within the population from having a disproportional influence on the gold estimation. The grade estimate was checked against the input exploration drilling/composite data both visually on section (cross and long section) and in plan at the time of creation. The resource tonnage is reported using a dry bulk density and therefore represents dry tonnage excluding moisture content. The cut-off grade of 0.4g/t for the stated Mineral Resource estimate is determined from economic parameters that reflect the anticipated open pit mining and milling operation. The Resource model assumes open cut mining is completed and a moderate level of mining selectivity is achieved in mining. It has been assumed that high quality grade control will be applied to ore/waste delineation processes using RC drilling, or similar, at a nominal (and no greater) spacing of 5 metres by 8 metres and applying a pattern sufficient to ensure adequate coverage of the mineralisation zones. This is consistent with MPR’s experience at comparable gold mines. Woodlark Mining undertook 16 separate metallurgical test programmes as part of the completion of the initial Woodlark Feasibility Study before GPR’s involvement. A full review of all metallurgical test work was undertaken by IMO Metallurgists on behalf of Geopacific, including some leach and floatation confirmatory tests.
CRITERIA	JORC CODE EXPLANATION	COMMENTARY
	Description of how the geological interpretation was used to control the resource estimates.	The 2m resource composites were initially coded by the mineralisation domain interpretations and the resultant primary domain coding further subdivided using the weathering surfaces to form sub-domains. Sample composites in each primary and sub-domain combination were reviewed for their univariate and indicator statistics and spatial continuity and were the basis of grade modelling.
	Discussion of basis for using or not using grade cutting or capping.	The selection of the medians instead of means for the average grade of the highest indicator thresholds in each resource model were used to guard against a few higher grades within the population from having a disproportional influence on the gold estimation.
	The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.	The grade estimate was checked against the input exploration drilling/composite data both visually on section (cross and long section) and in plan at the time of creation.
Moisture	Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.	The resource tonnage is reported using a dry bulk density and therefore represents dry tonnage excluding moisture content.
Cut-off parameters	The basis of the adopted cut-off grade(s) or quality parameters applied.	The cut-off grade of 0.4g/t for the stated Mineral Resource estimate is determined from economic parameters that reflect the anticipated open pit mining and milling operation.

Mining factors or assumptions	Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.	The Resource model assumes open cut mining is completed and a moderate level of mining selectivity is achieved in mining. It has been assumed that high quality grade control will be applied to ore/waste delineation processes using RC drilling, or similar, at a nominal (and no greater) spacing of 5 metres by 8 metres and applying a pattern sufficient to ensure adequate coverage of the mineralisation zones. This is consistent with MPR’s experience at comparable gold mines.

Metallurgical factors or assumptions	The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding	Woodlark Mining undertook 16 separate metallurgical test programmes as part of the completion of the initial Woodlark Feasibility Study before GPR’s involvement. A full review of all metallurgical test work was undertaken by IMO Metallurgists on behalf of Geopacific, including some leach and floatation confirmatory tests.

		COMMENTARY Over 6 tonnes of new metallurgical drill sample material were submitted by Geopacific to ALS Metallurgical Laboratories, Perth for test work, which included leach variability profiling, gravity concentration / upgrading, comminution test work and floatation analysis. Test work confirms that Woodlark ore is highly amenable to gold extraction by conventional CIP method and to being upgraded by gravity separation. All resources are located on granted mining lease ML508. A comprehensive environmental impact study was completed as part of the mining lease application and includes a proposed Deep-Sea Tailings Disposal option (DSTP). The DSTP option was subject to a rigorous study and was approved and permitted by the government of PNG in 2014. A substantial number of bulk density measurements for the Woodlark deposits have been collected as part of Geopacific’s phases of exploration. Bulk density is determined using Archimedes principal on DD core samples. Mineral resources were classified on the basis of estimation search passes. A progressively less stringent three pass search strategy produces the three categories of confidence. The highest confident estimate uses a search ellipse of approximately the same dimension of the dominant drill spacing and a significant number of resource composites selected from within an octant constraint. The search radii are expanded, and sample criteria relaxed for the second and third categories At Kulumadau and Busai the current drill hole spacing, and historical data validation results supports Measured (search pass 1), Indicated (search pass 2) and Inferred (search pass 3) Mineral Resources to be reported. At Woodlark King the estimation model relies on mostly historical RC drilling data which has yet to be fully validated by Geopacific and therefore only Indicated (search pass 1 and 2) and Inferred (search pass 3) Mineral Resources are reported.
CRITERIA	JORC CODE EXPLANATION	COMMENTARY
	metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made.	Over 6 tonnes of new metallurgical drill sample material were submitted by Geopacific to ALS Metallurgical Laboratories, Perth for test work, which included leach variability profiling, gravity concentration / upgrading, comminution test work and floatation analysis. Test work confirms that Woodlark ore is highly amenable to gold extraction by conventional CIP method and to being upgraded by gravity separation.
Environmental factors or assumptions	Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made.	All resources are located on granted mining lease ML508. A comprehensive environmental impact study was completed as part of the mining lease application and includes a proposed Deep-Sea Tailings Disposal option (DSTP). The DSTP option was subject to a rigorous study and was approved and permitted by the government of PNG in 2014.
Bulk density	Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples.	A substantial number of bulk density measurements for the Woodlark deposits have been collected as part of Geopacific’s phases of exploration. Bulk density is determined using Archimedes principal on DD core samples.
Classification	The basis for the classification of the Mineral Resources into varying confidence categories.	Mineral resources were classified on the basis of estimation search passes. A progressively less stringent three pass search strategy produces the three categories of confidence. The highest confident estimate uses a search ellipse of approximately the same dimension of the dominant drill spacing and a significant number of resource composites selected from within an octant constraint. The search radii are expanded, and sample criteria relaxed for the second and third categories At Kulumadau and Busai the current drill hole spacing, and historical data validation results supports Measured (search pass 1), Indicated (search pass 2) and Inferred (search pass 3) Mineral Resources to be reported. At Woodlark King the estimation model relies on mostly historical RC drilling data which has yet to be fully validated by Geopacific and therefore only Indicated (search pass 1 and 2) and Inferred (search pass 3) Mineral Resources are reported.

		COMMENTARY Munasi estimation model is wholly reliant on relatively broad spaced historical data which has yet to be fully validated by Geopacific and no deposit specific density data available (Busai density data used), therefore, only Inferred (search pass 1, 2 and 3, combined) Mineral Resources reported. The Mineral Resource classification method which is described above has also been based on the quality of the data collected (geology, survey and assaying data), the density of data, the confidence in the geological models and mineralisation model, and the grade estimation quality. The resource classification accounts for all relevant factors and reflect the competent person’s views of the deposits. The Mineral Resource reported here was reviewed by Geopacific personnel, who have sufficient experience to be regarded Competent Persons for the purposes of reviewing Mineral Resources. An audit of the Mineral Resource is yet to be completed. There is a moderate risk for tonnes above the cut-off grade due to the variable nature of gold mineralization, typical of epithermal gold deposits, exceeding the cut-off grade. The average grade of the deposit above the cut- off grade is sensitive to the treatment and volumes applied to high grades. The resulting classification reflects the Competent Person’s view of the deposit. The precision of the estimation is globally acceptable with the assumption that at a mining level more detailed grade control drilling will be undertaken. The geostatistical technique applied to estimate the Woodlark deposits is deemed appropriate for the anticipated mining method proposed.
CRITERIA	JORC CODE EXPLANATION	COMMENTARY
		Munasi estimation model is wholly reliant on relatively broad spaced historical data which has yet to be fully validated by Geopacific and no deposit specific density data available (Busai density data used), therefore, only Inferred (search pass 1, 2 and 3, combined) Mineral Resources reported.
	Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).	The Mineral Resource classification method which is described above has also been based on the quality of the data collected (geology, survey and assaying data), the density of data, the confidence in the geological models and mineralisation model, and the grade estimation quality.
	Whether the result appropriately reflects the Competent Person’s view of the deposit.	The resource classification accounts for all relevant factors and reflect the competent person’s views of the deposits.
Audits or reviews	The results of any audits or reviews of Mineral Resource estimates.	The Mineral Resource reported here was reviewed by Geopacific personnel, who have sufficient experience to be regarded Competent Persons for the purposes of reviewing Mineral Resources. An audit of the Mineral Resource is yet to be completed.
	Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.	There is a moderate risk for tonnes above the cut-off grade due to the variable nature of gold mineralization, typical of epithermal gold deposits, exceeding the cut-off grade. The average grade of the deposit above the cut- off grade is sensitive to the treatment and volumes applied to high grades. The resulting classification reflects the Competent Person’s view of the deposit.
Discussion of relative accuracy / confidence

	The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.	The precision of the estimation is globally acceptable with the assumption that at a mining level more detailed grade control drilling will be undertaken.
	These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.	The geostatistical technique applied to estimate the Woodlark deposits is deemed appropriate for the anticipated mining method proposed.

Section 4 Estimation and Reporting of Ore Reserves

(Criteria listed in section 1, and where relevant in sections 2 and 3, also apply to this section.)

CRITERIA	JORC CODE EXPLANATION	COMMENTARY
Mineral Resource Estimate for conversion to Ore Reserves	Description of the Mineral Resource estimate used as a basis for the conversion to an Ore Reserve. Clear statements as to whether the Mineral Resources are reported additional to, or inclusive of, the Ore Reserves.	The Measured and Indicated Resources from Section 3 for the Busai, Kulumadau and Woodlark King deposits, have been used as the basis for Ore Reserves. The Mineral Resources are reported inclusive of the Ore Reserves.
	Comment on any site visits undertaken by the Competent Person and the outcome of those visits.	A site visit to Woodlark Island was undertaken during the period 21-25 January 2018 by John Battista (Principal Mining Consultant with Mining Plus and CP for Mining and Ore Reserves). All relevant areas of the Project were visited. Site visits by representatives from Peter O'Bryan and Associates, Mincore Pty Ltd and Lycopodium Minerals Pty Ltd who were contributors to the studies have also been undertaken at various times.
	If no site visits have been undertaken indicate why this is the case.	See above.
Study Status	The type and level of study undertaken to enable Mineral Resources to be converted to Ore Reserves.	The ore reserve is an input to the November 2018 Definitive Feasibility Study (DFS).The DFS team consists of Geopacific personnel and independent external consultants including Mincore Pty Ltd, Independent Metallurgical Operations Pty Ltd, Mining Plus, Peter O'Bryan and Associates and Lycopodium Minerals Pty Ltd.
	The code requires that a study to at least Pre-Feasibility Study level has been undertaken to convert Mineral Resource to Ore Reserves. Such studies will have been carried out and will have determined a mine plan that is technically achievable and economically viable, and that material modifying factors have been considered.	All work is completed to Definitive Feasibility Study level. The studies to date have considered material Modifying factors and have determined the mine plan to be technically achievable and economically viable at the time of reporting. The mine plan involves the application of conventional open pit gold mining methods and mineral processing technologies that are widely utilised in Australia and PNG.
Cut-off parameters	The basis of the cut-off grade(s) or quality parameters applied.	Cut-off grade is calculated in consideration of the following parameters: - Gold price - Process recovery - Operating costs - G&A costs - Royalty costs An economic cut-off grade of 0.47 g/t Au was used for the purposes ofpit optimisation toproduce optimal shells

		COMMENTARY that were the basis of the pit designs. A cut-off grade of 0.4g/t Au is used for Ore Reserves reporting, based on revised and updated metallurgical recovery and processing operating cost information that was available subsequent to the pit optimisation work. These changes are not expected to result in material changes to the pit shells, so the pit designs have remained unchanged. The Resource model which formed the basis for estimation of the Ore Reserve was used in an open pit optimisation process using Whittle software to produce a range of pit shells using operating costs and other inputs derived from all the mentioned studies. Mining costs were built up from a first principles cost model derived by Mining Plus, using inputs from both Geopacific and Mining Plus’s internal databases. The resultant optimal pit shells were then used as a basis for detailed pit and stage designs for each deposit. The Ore Reserves are the Measured and Indicated resources within the final pit designs for each deposit. The mining method selected is open cut with conventional excavator and truck fleets. The open pits will be developed using multiple stage pit designs, all of which have been completed to a DFS standard. Ramps are designed at 1 in 9 gradient, 20m wide except for lower pit levels and small sub-pits where the ramps are designed at 11m wide. Geotechnical studies have been completed to a DFS level by Peter O'Bryan and Associates. The resultant recommended pit design parameters have been used to determine the overall pit slope angle in the pit optimisations and the wall angles in the pit designs. Grade control will be based on additional RC drilling and pit mapping and grade control has been allowed for in the pit optimisation input costs and financial modelling. The geological block models used as a basis for Ore Reserves are MIK recoverable resource models and as such no additional mining dilution or recovery factors have been added. A minimum mining width of 20m has been used for the bottom of pits and for minimum cutback width. Inferred Resources within the pit designs are <5% of the total mining inventory and have not been considered for Ore Reserve estimates. The proposed mine plan will include waste rock dumps, ROM pads, surface haul roads to processing plant, pumping infrastructure, work shop facilities, technical and administration facilities, explosives storage facilities and associated mine infrastructure.
CRITERIA	JORC CODE EXPLANATION	COMMENTARY
		that were the basis of the pit designs. A cut-off grade of 0.4g/t Au is used for Ore Reserves reporting, based on revised and updated metallurgical recovery and processing operating cost information that was available subsequent to the pit optimisation work. These changes are not expected to result in material changes to the pit shells, so the pit designs have remained unchanged.
Mining factors or assumptions	The method and assumptions used as reported in the Pre-Feasibility or Feasibility Study to convert the Mineral Resource to an Ore Reserve (i.e. either by application of appropriate factors by optimisation or by preliminary or detailed design).	The Resource model which formed the basis for estimation of the Ore Reserve was used in an open pit optimisation process using Whittle software to produce a range of pit shells using operating costs and other inputs derived from all the mentioned studies. Mining costs were built up from a first principles cost model derived by Mining Plus, using inputs from both Geopacific and Mining Plus’s internal databases. The resultant optimal pit shells were then used as a basis for detailed pit and stage designs for each deposit. The Ore Reserves are the Measured and Indicated resources within the final pit designs for each deposit.
	The choice, nature and appropriateness of the selected mining method (s) and other mining parameters including associated design issues such as pre-strip, access, etc.	The mining method selected is open cut with conventional excavator and truck fleets. The open pits will be developed using multiple stage pit designs, all of which have been completed to a DFS standard. Ramps are designed at 1 in 9 gradient, 20m wide except for lower pit levels and small sub-pits where the ramps are designed at 11m wide.
	The assumptions made regarding geotechnical parameters (e.g. pit slopes, stope sizes, etc), grade control and pre-production drilling The major assumptions made, and the Mineral Resource model used for pit and stope optimisation (if appropriate).	Geotechnical studies have been completed to a DFS level by Peter O'Bryan and Associates. The resultant recommended pit design parameters have been used to determine the overall pit slope angle in the pit optimisations and the wall angles in the pit designs. Grade control will be based on additional RC drilling and pit mapping and grade control has been allowed for in the pit optimisation input costs and financial modelling.
	The mining dilution factors used The mining recovery factors used Any mining widths used.	The geological block models used as a basis for Ore Reserves are MIK recoverable resource models and as such no additional mining dilution or recovery factors have been added. A minimum mining width of 20m has been used for the bottom of pits and for minimum cutback width.
	The manner in which Inferred Mineral Resources are utilised in mining studies and the sensitivity of the outcome to their inclusion.	Inferred Resources within the pit designs are <5% of the total mining inventory and have not been considered for Ore Reserve estimates.
	The infrastructure requirements of the selected mining methods.	The proposed mine plan will include waste rock dumps, ROM pads, surface haul roads to processing plant, pumping infrastructure, work shop facilities, technical and administration facilities, explosives storage facilities and associated mine infrastructure.

		COMMENTARY The ore reserve will be processed through a single stage primary jaw crusher, Semi Autogenous Grinding, Ball milling and Pebble Crushing (SABC) comminution circuit followed by conventional gravity and carbon in leach (CIL) process. The metallurgical process is established and commonly used by Australian and International gold producers. Multiple progressive stages of metallurgical test work have been completed on the Woodlark project for all deposits included in the reserve. This includes test work done in 1992/1993, 1996, 2010 to 2012 and 2017/2018. The 2010 to 2012 test work programs were done by Ammtec and managed by RW Nice and Associates. All the test work was then reviewed by IMO Metallurgy and Lycopodium with further variability test work done in 2017 and 2018 by ALS Metallurgy, independently managed by Lycopodium. Test work programs have included comminution, gravity gold and intensive leach extraction, gravity upgrade, cyanidation leach and thickening and rheology test work. Metallurgical recovery formulae applied to ROM ore are as follows: 1. For Kulumadau and Woodlark King, where Au head grade <1.0g/t: %Recovery = (Head [g/t Au] - (0.0913 x Head [g/t Au] - 0.0096 + 0.014)) / Head [g/t Au] x 100 2. For Kulumadau and Woodlark King, where Au head grade <1.0g/t: % Recovery = (Head [g/t Au] - (0.0181 x Head [g/t Au] + 0.0641 + 0.014)) / Head [g/t Au] x 100 3. For Busai (all Au head grades, As head grades 0 to 450 ppm) % Recovery = (Head [g/t Au] - ( (Head [g/t Au] - Head [g/t Au] x (-0.128 x Head [ppm As] + 96.901) / 100) + 0.014)) / Head [g/t Au] x 100 There is some ore at the Busai deposit that has elevated levels of Arsenic, compared to other deposits. An appropriate adjustment to metallurgical Au recovery for this ore has been made via the above recovery formula. In excess of 10 tonnes of metallurgical samples have been collected by diamond core for test work. Additional metallurgical variability test work in the 2017/2018 program was designed to enhance the understanding of variability in metallurgical performance, with respect to the orebodies under consideration.
CRITERIA	JORC CODE EXPLANATION	COMMENTARY

Metallurgical factors or assumptions	The metallurgical process proposed and the appropriateness of that process to the style of the mineralisation.	The ore reserve will be processed through a single stage primary jaw crusher, Semi Autogenous Grinding, Ball milling and Pebble Crushing (SABC) comminution circuit followed by conventional gravity and carbon in leach (CIL) process.
	Whether the metallurgical process is well-tested technology or novel in nature.	The metallurgical process is established and commonly used by Australian and International gold producers.
	The nature, amount and representativeness of metallurgical test work undertaken, the nature of the metallurgical domaining applied and the corresponding metallurgical recovery factors applied.	Multiple progressive stages of metallurgical test work have been completed on the Woodlark project for all deposits included in the reserve. This includes test work done in 1992/1993, 1996, 2010 to 2012 and 2017/2018. The 2010 to 2012 test work programs were done by Ammtec and managed by RW Nice and Associates. All the test work was then reviewed by IMO Metallurgy and Lycopodium with further variability test work done in 2017 and 2018 by ALS Metallurgy, independently managed by Lycopodium. Test work programs have included comminution, gravity gold and intensive leach extraction, gravity upgrade, cyanidation leach and thickening and rheology test work. Metallurgical recovery formulae applied to ROM ore are as follows: 1. For Kulumadau and Woodlark King, where Au head grade <1.0g/t: %Recovery = (Head [g/t Au] - (0.0913 x Head [g/t Au] - 0.0096 + 0.014)) / Head [g/t Au] x 100 2. For Kulumadau and Woodlark King, where Au head grade <1.0g/t: % Recovery = (Head [g/t Au] - (0.0181 x Head [g/t Au] + 0.0641 + 0.014)) / Head [g/t Au] x 100 3. For Busai (all Au head grades, As head grades 0 to 450 ppm) % Recovery = (Head [g/t Au] - ( (Head [g/t Au] - Head [g/t Au] x (-0.128 x Head [ppm As] + 96.901) / 100) + 0.014)) / Head [g/t Au] x 100
	Any assumptions or allowances made for deleterious elements.	There is some ore at the Busai deposit that has elevated levels of Arsenic, compared to other deposits. An appropriate adjustment to metallurgical Au recovery for this ore has been made via the above recovery formula.
	The existence of any bulk sample or pilot scale test work and the degree to which such samples are considered representative of the orebody as a whole.	In excess of 10 tonnes of metallurgical samples have been collected by diamond core for test work. Additional metallurgical variability test work in the 2017/2018 program was designed to enhance the understanding of variability in metallurgical performance, with respect to the orebodies under consideration.

		COMMENTARY No recoverable minerals are defined by specification in this case. Environmental approval for the project, including the deep-sea tailings disposal option, was granted in 2014 by the PNG Department of Environment and Conservation (now the Conservation and Environment Protection Authority Department) with a validity of 20 years (expires 2034). Discussions are underway to amend the permit conditions to reflect the revised operating plan. This followed completion of an Environmental and Social Impact Assessment prepared by Coffey Environments Pty Ltd underpinned by a range of studies completed by various subject matter experts addressing all environmental and social aspects of the project. Studies include (but not limited to) surface water and groundwater, terrestrial, aquatic and marine ecology, geochemistry and acid mine drainage, meteorology, cultural heritage and archaeology, health, and social characterisation. Environmental and social impacts were considered using a risk-based approach and mitigation plans developed. An Environmental Management System is currently being developed and implemented in line with the requirements of ISO 14001. The project is located on Woodlark Island. The mining license area and easements for infrastructure have been granted. Additional easements are being applied for to accommodate changes to the project layout. Infrastructure to be constructed includes a wharf, roads, village relocation, accommodation camp, reverse osmosis and waste water treatment plants, workshops, technical and administration offices and power station. Workforce will be made up of local islanders, fly-in fly-out (FIFO) PNG nationals and expatriate staff. Flights to Woodlark are expected to be scheduled commercial flights. The capital cost estimate for the DFS has been developed by Lycopodium through the collation of a number of first principle estimates on the completion of sufficient design works to provide bills of material to estimators, quotations from equipment providers and contracting companies and estimates carried out directly by the owner's team. All capital costs have been estimated to a DFS level of confidence +/-15%.
CRITERIA	JORC CODE EXPLANATION	COMMENTARY
	For minerals that are defined by the specification, has the ore reserve estimation been based on the appropriate mineralogy to meet the specifications?	No recoverable minerals are defined by specification in this case.
Environmental	The status of studies of potential environmental impacts of the mining and processing operation. Details of waste rock characterisation and the consideration of potential sites, status of design options considered and, where applicable, the status of approvals for process residue storage and waste dumps should be reported.	Environmental approval for the project, including the deep-sea tailings disposal option, was granted in 2014 by the PNG Department of Environment and Conservation (now the Conservation and Environment Protection Authority Department) with a validity of 20 years (expires 2034). Discussions are underway to amend the permit conditions to reflect the revised operating plan. This followed completion of an Environmental and Social Impact Assessment prepared by Coffey Environments Pty Ltd underpinned by a range of studies completed by various subject matter experts addressing all environmental and social aspects of the project. Studies include (but not limited to) surface water and groundwater, terrestrial, aquatic and marine ecology, geochemistry and acid mine drainage, meteorology, cultural heritage and archaeology, health, and social characterisation. Environmental and social impacts were considered using a risk-based approach and mitigation plans developed. An Environmental Management System is currently being developed and implemented in line with the requirements of ISO 14001.
Infrastructure	The existence of appropriate infrastructure: availability of land for plant development, power, water, transportation (particularly for bulk commodities), labour, accommodation; or the ease with which the infrastructure can be provided or accessed.	The project is located on Woodlark Island. The mining license area and easements for infrastructure have been granted. Additional easements are being applied for to accommodate changes to the project layout. Infrastructure to be constructed includes a wharf, roads, village relocation, accommodation camp, reverse osmosis and waste water treatment plants, workshops, technical and administration offices and power station. Workforce will be made up of local islanders, fly-in fly-out (FIFO) PNG nationals and expatriate staff. Flights to Woodlark are expected to be scheduled commercial flights.
Costs	The derivation of, or assumptions made, regarding projected capital costs in the study.	The capital cost estimate for the DFS has been developed by Lycopodium through the collation of a number of first principle estimates on the completion of sufficient design works to provide bills of material to estimators, quotations from equipment providers and contracting companies and estimates carried out directly by the owner's team. All capital costs have been estimated to a DFS level of confidence +/-15%.

		COMMENTARY Mining operating costs were built up from first-principles by Mining Plus Ltd where the operating hours of all equipment were established and then costs applied for maintenance, tyres, labour and consumables. The mining operating costs over the life of the mine plan also include sustaining capital for replacement of equipment when required. Processing operating cost estimate was developed on a 'first principle basis', derived for the metallurgical data. The main cost drivers are the required power, labour and reagent consumption rates. All process operating costs have been estimated to a DFS level of confidence +/-15%. No additional cost allowances have been made for arsenic material other than the abovementioned adjustment to Au recovery at Busai. A USD:AUD exchange rate of 0.756 has been derived from corporate guidance and independent advice from reputable financial institutions. Transportation costs have been estimated from a reputable bullion shipment organisation. Off-site transport and refining costs and PNG royalties have been allowed for in the overall gold price and selling cost assumptions. The PNG royalty is calculated as 2.25% of revenue less transport and refining costs. As above. Production and recovery for revenue calculations was based on detailed mine schedules, mining factors and cost estimates. A gold price of A$1,650/oz has been used as the basis for the Ore Reserve. Revenue factors within the optimisation process were used to produce a range of nested optimisation shells to assist in the analysis and shell selection for pit design. No allowance has been made for revenue from any co- product. There is a transparent quoted market for the sale of gold. The market for gold is well established and liquid and the price has varied in the past six months from a high of around A$1,766/oz in May 2018 to a low around
CRITERIA	JORC CODE EXPLANATION	COMMENTARY
	The methodology used to estimate operating costs.	Mining operating costs were built up from first-principles by Mining Plus Ltd where the operating hours of all equipment were established and then costs applied for maintenance, tyres, labour and consumables. The mining operating costs over the life of the mine plan also include sustaining capital for replacement of equipment when required. Processing operating cost estimate was developed on a 'first principle basis', derived for the metallurgical data. The main cost drivers are the required power, labour and reagent consumption rates. All process operating costs have been estimated to a DFS level of confidence +/-15%.
	Allowances made for the content of deleterious elements.	No additional cost allowances have been made for arsenic material other than the abovementioned adjustment to Au recovery at Busai.
	The source of exchange rates used in the study.	A USD:AUD exchange rate of 0.756 has been derived from corporate guidance and independent advice from reputable financial institutions.
	Derivation of transport charges.	Transportation costs have been estimated from a reputable bullion shipment organisation.
	The basis for forecasting or source of treatment and refining charges, penalties for failure to meet specification, etc.	Off-site transport and refining costs and PNG royalties have been allowed for in the overall gold price and selling cost assumptions. The PNG royalty is calculated as 2.25% of revenue less transport and refining costs.
	The allowances made for royalties payable, both Government and private.	As above.
Revenue Factors	The derivation of, or assumptions made regarding revenue factors including head grade, metal or commodity price(s) exchange rates, transportation and treatment charges, penalties, net smelter returns etc.	Production and recovery for revenue calculations was based on detailed mine schedules, mining factors and cost estimates.
	The derivation of assumptions made of metal or commodity price(s), for the principal metals, minerals and co- products.	A gold price of A$1,650/oz has been used as the basis for the Ore Reserve. Revenue factors within the optimisation process were used to produce a range of nested optimisation shells to assist in the analysis and shell selection for pit design. No allowance has been made for revenue from any co- product.
Market Assessment	The demand, supply and stock situation for the particular commodity, consumption trends and factors likely to affect supply and demand into the future.	There is a transparent quoted market for the sale of gold. The market for gold is well established and liquid and the price has varied in the past six months from a high of around A$1,766/oz in May 2018 to a low around

		COMMENTARY AU$1,617/oz in August 2018. The spot price of gold has been around AU$1,720/oz since mid-October 2018. No customer and competitor analyses were carried out for the gold market. No formal market assessment or forecast for the gold price has been undertaken. No industrial minerals have been considered. The Ore Reserve estimate is based on a DFS level of accuracy with inputs for mining, processing, sustaining capital and contingencies scheduled and costed to generate the initial Ore Reserve cost model. The Ore Reserve returns a positive NPV based on assumed commodity price and the Competent Person is satisfied that the project economics that make up the initial Ore Reserve retains a suitable profit margin against reasonable future commodity price movements. There has been extensive and ongoing community engagement over a number of years, including the completion of specialist studies as part of the Environmental and Social Impact Assessment process. A Compensation Agreement has been finalised and signed by all affected stakeholders, as has a Relocation Agreement for those people whose land will be impacted during project development. Geopacific enjoys a strong relationship with the communities on Woodlark Island and are committed to a local employment strategy and working with communities to ensure the project benefits extend beyond direct employment. Water management will be crucial as the project is in a high rainfall area, this will need to be managed appropriately to prevent any flooding. Appropriate allowance for infrastructure and costs associated with management of these aspects is made in the DFS. No material contracts or marketing arrangements are in place.
CRITERIA	JORC CODE EXPLANATION	COMMENTARY
		AU$1,617/oz in August 2018. The spot price of gold has been around AU$1,720/oz since mid-October 2018.
	A customer and competitor analysis along with the identification of likely market windows for the product.	No customer and competitor analyses were carried out for the gold market.
	Price and volume forecasts and the basis for these forecasts.	No formal market assessment or forecast for the gold price has been undertaken.
	For industrial minerals the customer specification, testing and acceptance requirements prior to a supply contract.	No industrial minerals have been considered.
Economic	The inputs to the economic analysis to produce the net present value (NPV), the source and confidence of these economic inputs estimated inflation, discount rate, etc.	The Ore Reserve estimate is based on a DFS level of accuracy with inputs for mining, processing, sustaining capital and contingencies scheduled and costed to generate the initial Ore Reserve cost model.
	NPV ranges and sensitivity to variations in the significant assumptions and inputs.	The Ore Reserve returns a positive NPV based on assumed commodity price and the Competent Person is satisfied that the project economics that make up the initial Ore Reserve retains a suitable profit margin against reasonable future commodity price movements.
Social	The status of agreements with key stakeholders and matters leading to social licence to operate.	There has been extensive and ongoing community engagement over a number of years, including the completion of specialist studies as part of the Environmental and Social Impact Assessment process. A Compensation Agreement has been finalised and signed by all affected stakeholders, as has a Relocation Agreement for those people whose land will be impacted during project development. Geopacific enjoys a strong relationship with the communities on Woodlark Island and are committed to a local employment strategy and working with communities to ensure the project benefits extend beyond direct employment.
Other	To the extent relevant, the impacts of the following on the project and/or on the estimation and classification of the Ore reserves: Any identified material naturally occurring risks.	Water management will be crucial as the project is in a high rainfall area, this will need to be managed appropriately to prevent any flooding. Appropriate allowance for infrastructure and costs associated with management of these aspects is made in the DFS.
	The status of material legal agreements and marketing arrangements.	No material contracts or marketing arrangements are in place.

		COMMENTARY The project is permitted by the PNG Government, subject to meeting the conditions of the licence. There are reasonable grounds to expect that future Government approvals will be granted and maintained within the necessary time frames for successful implementation of the project. It is the opinion of the Competent Persons for Ore Reserves that the results are an appropriate reflection of the deposit. Measured and Indicated Mineral Resources within the final pit design (which has been derived by applying appropriate Modifying Factors as described above) have been classified as Proven and Probable Ore Reserves, respectively. No audits or reviews of the Ore Reserves estimate have been conducted to date. The Ore Reserve is based on the following key elements: ● A current Mineral Resource estimate with approximately 95% of the plant feed inventory tonnage inside the final pit designs being Measured or Indicated; this is considered sufficient to support a DFS. ● There are no unforeseen modifying factors at the time of this statement that will have any material impact on the Ore Reserve estimate. ● Geotechnical assessment is considered sufficient for a DFS. ● The mine planning and scheduling assumptions are based on current industry practice, which are seen as globally correct at this level of study; with further work in the next level of study to understand any periodic cost fluctuations. ● The cost estimates and financial evaluation have been estimated by the project team with specialist consultants and team members, which are considered sufficient to support this level of study. The accuracy of the cost estimate is +/-15% and is
CRITERIA	JORC CODE EXPLANATION	COMMENTARY
	The status of governmental agreements and approvals critical to the viability of the project, such as mineral tenement status, and government and statutory approvals. There must be reasonable grounds to expect that all necessary government regulations will be received within the timeframe anticipated in the Pre- feasibility or Feasibility study. Highlight and discuss the materiality of any unresolved matter that is dependent on a third party on which extraction of the reserve is contingent.	The project is permitted by the PNG Government, subject to meeting the conditions of the licence. There are reasonable grounds to expect that future Government approvals will be granted and maintained within the necessary time frames for successful implementation of the project.
Classification	The basis for the classification of the Ore Reserves into varying confidence categories.	It is the opinion of the Competent Persons for Ore Reserves that the results are an appropriate reflection of the deposit. Measured and Indicated Mineral Resources within the final pit design (which has been derived by applying appropriate Modifying Factors as described above) have been classified as Proven and Probable Ore Reserves, respectively.
	Whether the result appropriately reflects the Competent Person's view of the deposit.
	The proportion of Probable Ore Reserves that have been derived from Measured Mineral Resources (if any).
Audits or reviews	The results of any audits or reviews of Ore Reserve estimates.	No audits or reviews of the Ore Reserves estimate have been conducted to date.
Discussion of relative accuracy / confidence	Where appropriate a statement of the relative accuracy and confidence level in the Ore Reserve estimate using and approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the reserve within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors which could affect the relative accuracy and confidence of the estimate.	The Ore Reserve is based on the following key elements: ● A current Mineral Resource estimate with approximately 95% of the plant feed inventory tonnage inside the final pit designs being Measured or Indicated; this is considered sufficient to support a DFS. ● There are no unforeseen modifying factors at the time of this statement that will have any material impact on the Ore Reserve estimate. ● Geotechnical assessment is considered sufficient for a DFS. ● The mine planning and scheduling assumptions are based on current industry practice, which are seen as globally correct at this level of study; with further work in the next level of study to understand any periodic cost fluctuations. ● The cost estimates and financial evaluation have been estimated by the project team with specialist consultants and team members, which are considered sufficient to support this level of study. The accuracy of the cost estimate is +/-15% and is
	The statement should specify whether it relates to global or local estimates, and if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used.

		COMMENTARY in line with a Class 3 estimate under the AACE International Cost Estimate Classification guidelines. ● As part of the DFS works, the project team have engaged with potential contractors in PNG to confirm construction, mining and logistics costs.
CRITERIA	JORC CODE EXPLANATION	COMMENTARY
	Accuracy and confidence discussions should extend to specific discussions of any applied Modifying factors that may have a material impact on Ore Reserve viability, or for which there are remaining areas of uncertainty at the current study stage.	in line with a Class 3 estimate under the AACE International Cost Estimate Classification guidelines. ● As part of the DFS works, the project team have engaged with potential contractors in PNG to confirm construction, mining and logistics costs.
	It is recognised that this may not be possible or appropriate in all circumstances. These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.

AI assistant

GEOPACIFIC RESOURCES LTD Capital/Financing Update 2018

65008_rns_2018-11-06_8276221f-5fd3-45bd-a4ef-7952ddf194ae.pdf

Woodlark DFS confirms high margin development project

Woodlark DFS Project Summary

Managing Director, Ron Heeks said.

Key information summary

Mining

Metallurgy

Processing

Infrastructure

Project Ownership

Licence to Operate

Development Pathway

Capital Costs

Establishment Capital

Sustaining Capital

Operating Costs

Mining Costs

Processing and General and Administration Costs

Unit Costs

Financial Analysis

Geology and Exploration upside

Near Pit Resource Extensions

Near Pit “Blind” Resources

Existing Gold Prospects

Regional “Blind” Discoveries

Reserve and Resources

About Papua New Guinea

Contact

Competent Person’s Statement

Forward Looking Statements

Appendix A: JORC Code, 2012 Edition – Table 1

Section 1: Sampling Techniques and Data

Section 2 Reporting of Exploration Results

Section 3: Estimation and Reporting of Mineral Resources

Section 4 Estimation and Reporting of Ore Reserves

AI assistant

GEOPACIFIC RESOURCES LTD — Capital/Financing Update 2018

65008_rns_2018-11-06_8276221f-5fd3-45bd-a4ef-7952ddf194ae.pdf

Woodlark DFS confirms high margin development project

Woodlark DFS Project Summary

Managing Director, Ron Heeks said.

Key information summary

Mining

Metallurgy

Processing

Infrastructure

Project Ownership

Licence to Operate

Development Pathway

Capital Costs

Establishment Capital

Sustaining Capital

Operating Costs

Mining Costs

Processing and General and Administration Costs

Unit Costs

Financial Analysis

Geology and Exploration upside

Near Pit Resource Extensions

Near Pit “Blind” Resources

Existing Gold Prospects

Regional “Blind” Discoveries

Reserve and Resources

About Papua New Guinea

Contact

Competent Person’s Statement

Forward Looking Statements

Appendix A: JORC Code, 2012 Edition – Table 1

Section 1: Sampling Techniques and Data

Section 2 Reporting of Exploration Results

Section 3: Estimation and Reporting of Mineral Resources

Section 4 Estimation and Reporting of Ore Reserves

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GEOPACIFIC RESOURCES LTD Capital/Financing Update 2018