GOLDARC RESOURCES LIMITED — Capital/Financing Update 2018

Apr 3, 2018

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ASX RELEASE

4 APRIL 2018

FURTHER RESULTS AT MALCOLM

Highlights

• ✓ Torian’s planned 30,000m drilling program for FY2018 is off to a great start;

• ✓ Final results from Dover Castle South, Dumbarton and Calypso contain outstanding intersections including:

• 16m @ 3.35g/t Au from 18m including 3m @ 9.84g/t Au from 18m;

• 7m @ 2.01g/t Au from 8m; and

• historic results include 16m @ 3.75g/t Au from 4m.

• ✓ Torian has completed drilling at Paradigm South and North, and Target 18;

• ✓ Assays are pending from these other areas but are expected shortly; and

• ✓ The large program provides shareholders with significant leverage to exploration success.

1. Overview

Torian Resources Ltd ( Torian or Company ) ( ASX:TNR ) is pleased to announce the initial results from its planned 30,000m drilling program for FY2018. The large program is designed to test multiple high priority exploration targets at the Company’s flagship Zuleika and Malcolm projects.

As announced on 6 November 2017, Torian’s extensive exploration program is targeting several high priority prospects at its Malcolm Project including Dover Castle South, Calypso and Dumbarton. The program is also targeting several areas at its flagship Zuleika Project including Paradigm South, Paradigm North and Target 18.

Today the Company is announcing final results from its recent drilling program at Dover Castle South, Dumbarton and Calypso which form parts of its Malcolm Project. As seen in Figure 1 below, the Malcolm Project lies 15km East of Leonora in the Eastern Goldfields Region of Western Australia. The Project comprises approximately 75km² of tenure in and around the Mt George Shear Zone. The project was acquired by Torian in 2015 and is located amongst numerous active gold mines.

ABN: 72 002 261 565 104 Colin Street, West Perth, WA 6005, Australia Phone +61 8 6216 0424 Fax +61 8 9322 4130 info@torianresources.com.au www.torianresources.com.au

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Figure 1: Map showing Torian’s Leonora projects, surrounding infrastructure and gold deposits.

2. Dover Castle South

Dover Castle South lies in the central portion of the Malcolm Project area. As seen in Figure 2 below, the area is located near numerous historic mine workings. The RC drilling program focused on an area where shallow historic RAB drilling has defined an anomalous target zone of at least 400m in length.

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Figure 2: Map of Malcolm South showing geology, tenements, historic drilling and historic workings.

A total of 9 holes for 638m was completed testing the target over a strike length of 320m. The drilling was designed to test the mineralisation to approximately 80m vertical. The holes were drilled on sections 80m apart with the holes 20m spaced on each section. The mineralisation outcrops and is exposed in several shallow workings. The mineralisation is hosted by a variably sheared basalt, with a generally sub vertical dip, though on some sections the dip is steep westerly. This meant that some of the holes were ineffective in testing the target.

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Figure 3: Photo showing RC drilling in operation at Dover Castle South.

The mineralisation is characterised by chlorite and epidote alteration, quartz veining and pyrite and arsenopyrite alteration. The better values in the historic drilling are associated with arsenic values greater than 1%. Previous intersections from shallow RAB drilling are listed in Table 1 below.

Hole	E GDA94	N GDA94	Azimuth	Dip	EOH (m)	From (m)	To (m)	Interval (m)	g/t Au
MSR185	354887	6798158	270	-60	42	4	20	16	3.75
MSR218	354692	6798333	270	-60	22	0	4	4	1.40
MSR242	354977	6798008	270	-60	36	12	16	4	1.55
MSR243	354912	6798108	270	-60	26	8	12	4	1.55

Table 1: Historic drill intercepts (>1g/t Au) at Torian’s Dover Castle South prospect.

The drilling program at Dover Castle South is now complete and all assays have been received.

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The Company has received some outstanding initial results from this program. These results are listed in Table 2 below.

Hole	From (m)	To (m)	Interval (m)	g/t Au
DCRC001				NSA
DCRC002				NSA
DCRC003	8	10	2	2.27
and	14	21	7	2.01
DCRC004	28	29	1	1.37
DCRC005	18	34	16	3.35
including	18	22	3	9.84
DCRC006				NSA
DCRC007	32	33	1	1.43
DCRC008				NSA
DCRC009				NSA

Table 2: New drill intercepts (>1g/t Au) at Torian’s Dover Castle South prospect.

Figure 4 below shows the current and historic drilling completed and the associated grade contours at Dover Castle South.

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Figure 4: Drill hole plan showing gold contours at Dover Castle South (Note that recent results are 4m composites only. See Table 2 for 1m composites)

Figure 5 below displays a cross section of the Dover Castle South mineralisation. It shows the weathering profile, old mine working, geology and recent and historical intercepts at Dover Castle.

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Figure 5: Cross section showing drilling intersections and geology at Dover Castle South. (Note that recent results are 4m composites only. See Table 2 for 1m composites)

3. Dumbarton

Dumbarton lies in the southern portion of the Malcolm Project area. As seen in Figure 2 above, the area is located near numerous historic mine workings. The RC drilling program focused on an area where historic shallow RC and RAB drilling has defined an anomalous target zone of at least 400m in length.

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The geology at Dumbarton comprises up to three parallel zones of shearing and quartz veining hosted by basalts. Previous drilling had intersected anomalous values (1-7g/t Au) over a strike length of approximately 400m. There are shallow old workings near the southern end of the outcropping zone.

The holes were designed to test the mineralisation down to vertical depths of approximately 80m, with holes spaced at 20m on sections 80m apart. The results are patchy and will need further interpretation. Table 3 below shows the anomalous (+1g/t Au ) results.

Hole	From (m)	To (m)	Interval (m)	g/t Au
DRC019	18	21	3	1.96
DRC020	54	54	1	1.08
DRC021	24	25	1	1.15
DRC024	36	37	1	2.99
DRC025	62	64	2	1.48
and	79	80	1	1.50

Table 3: New drill intercepts (>1g/t Au) at Torian’s Dumbarton Prospect.

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Figure 6: Cross section showing drilling intersections and geology at Dumbarton.

4. Calypso

Drilling at Calypso, some 8km south of Dumbarton, was undertaken to test the two flanks of the banded iron formation.

The holes drilled on the eastern flank were designed to infill the existing drilling at a nominal 80m by 80m spacing. The holes were drilled to 150m and angled to the southeast. Most of these holes failed to reach target depth due to mechanical issues with the drill rigs used and moderate ground water flows. In addition, the banded iron itself proved fairly hard in nature, resulting in unacceptably slow penetration. Nevertheless, hole CRC024 did intersect the altered banded iron formation and several +1g/t Au intersections are tabled below. Further drilling at Calypso is likely to involve a combination of RC and diamond drilling.

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The holes to the west were drilled as single 100m deep angle holes at 100m spacings in a 500m gap in the historic drilling. Several anomalous shallow (30-40m) vertical reconnaissance holes drilled in this area had located values up to 0.75g/t Au near the base of oxidation. The recent holes confirmed the geological interpretation but failed to locate any significant (+0.2g/t Au) values. Table 4 below shows the anomalous (+1g/t Au) values from the recent drilling at Calypso.

Hole	From (m)	To (m)	Interval (m)	g/t Au
CRC024	89	90	1	2.84
and	92	93	1	1.16
and	96	97	1	2.00

Table 4: New drill intercepts (>1g/t Au) at Torian’s Calypso Prospect.

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Figure 7: RC chips from anomalous hole CRC024 at Calypso.

5. Regional Geology

The Leonora district has a subdued topography with deep weathering and in places is covered with aeolian sand and red brown lacustrine clays which range in depth from 0 - 40m. Away from the salt lakes a thin patchy veneer of soil covers areas of outcrop and sub crop.

The rock types at the Malcolm project are a succession of Archaean north-northwest trending greenschist facies basalt, intrusive fine to medium-grained dolerite and feldspar phyric dolerite, black shale, siltstone, grits and medium-grained greywacke.

The structural geology at Malcolm consists of variably dipping (10-60º) north or east trending extensional faults (lags) and minor thrusts, which create the regional stratigraphic trends within the Leonora District. To the east lies the Keith-Kilkenny Lineament which marks the western margin of the Pig Well Graben, whist to the west lies the Mt George Shear zone. These two structures are approximately parallel and strike north-north westerly. The other structures are commonly links between these two dominant features.

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Figure 8: Map showing Torian’s Leonora projects, regional geology and gold deposits.

Locally shears or fault zones are persistent for hundreds of metres in strike and range in width from 5m to 150m. Some shear zones are crosscut by the later regional foliation and are therefore likely to have formed relatively earlier in the deformation history (e.g. Richmond Gem Shear). Asymmetrical kink bands, quartz-carbonate veinlets and right stepping shear development indicate a right lateral sense of movement along north-trending and northwest-trending fault sets. Quartz within these shears occurs as veins, veinlets or boudins. Numerous pits and shafts occur within the tenement area. Most prospects appear to have exploited high grade (>20g/t Au) portions of quartz veins and did not pursue other styles of gold mineralisation.

Past Production:

The Malcolm area was intensively prospected before the First World War. Historic mines varied in size and style but were commonly high grade narrow quartz veins hosted by mafic volcanics and black shales. These deposits were commonly shear hosted. The known production figures from the various mines are tabled below.

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Mine:	Lease:	Tonnes:	Oz:	g/t Au:	Period:
Whispering Hope	617C	75.2	53	21.91	1898-9
Golden Prize	33C	17.3	19.4	34.93	1898
Windsor Castle	34C	34.5	25.9	23.32	1899
Barrington	568C	19.3	7.2	11.6	1904-11
Alice	1019C, 1058C, 1362C	846.4	693.9	25.5	1904-11
First and Last	1159C	21.3	10.7	15.54	1906
Knark	946C	27.4	9	10.16	1902
Mafeking	773C	16.3	5.2	9.99	1900
Shotover	580C	10.2	4.8	14.81	1899
Dumbarton	722C	285.5	203.6	22.17	1899-02
Dover Castle	212C	442	378	26.6	1897-00
Malcolm Mohr	147C	379.5	225.9	18.51	1898
Mt Malcolm Great Northern	717C	50.8	20.2	12.37	1899
Golden Crown/Midas	756C, 637C, 970C, 781C, 637C, 1308C, 1747C, 593C, 147C	3783	3594	29.55	1897-1936
Napoleon	1358C	8.1	66.81	255.62	1911
Kruger-Steyn	796C	2.5	66.27	811.38	1901
Lady Lena North	520C	35.1	38.71	34.34	1899
Ashley's United	679C	366.3	377.84	32.08	1899-04
Lady Lena	503C	24.4	34.34	43.8	1898
Total		6445.1	5834.77	28.15

Table 5: Table showing past production records from the Company’s Malcolm Project.

Previous Exploration:

Past exploration within this area has been quite superficial, with the majority of previous work being carried out in the vicinity of old gold workings. Apart from the Calypso Prospect, little exploration has been conducted beneath lake sediments in the southern half of the tenement group. The main work to date has been interpretation of aeromagnetic data, geological mapping, soil sampling, RAB drilling of gold-in-soil anomalies and selected old workings, and limited follow up RC drilling. This has led to the definition of a large number of prospects. The area has been basically untouched since the mid 1990s.

6. Commentary:

Torian’s Managing Director, Matthew Sullivan comments:

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“The results at Malcolm are encouraging. In particular the results at Calypso demonstrate the size potential of this target. Further drilling is planned for this and other targets at Malcolm. Planning is also underway for further drilling at our Zuleika project where results from the current round of drilling are expected to be released shortly”.

For further information, please contact:

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Matthew Sullivan Managing Director info@torianresources.com.au

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About Torian:

Torian Resources Ltd ( ASX:TNR ) is a highly active gold exploration and development company. The Company has amassed a large and strategic landholding comprising eight projects and over 500km² of tenure located in the Goldfields Region of Western Australia.

Torian’s flagship project, Zuleika, is located along the world class Zuleika Shear. The Zuleika Shear is the fourth largest gold producing region in Australia and consistently produces some of the country’s highest grade and lowest cost gold mines. Torian’s Zuleika project lies north and partly along strike of several major gold deposits including Northern Star’s (ASX:NST) 7.0Moz East Kundana Joint Venture and Evolutions (ASX:EVN) 1.8Moz Frogs Legs and White Foil deposits.

The Zuleika Shear has seen significant corporate activity of late with over A$1 Billion worth of acquisition in the region by major mining companies. Torian’s Zuleika project comprises approximately 223km² of tenure making Torian the second largest landholder in this sought after region.

Last year Torian drilled 59,345m for a total of 1,319 holes across its projects. The large drilling campaign tested 26 exploration targets and, importantly, made four gold discoveries making Torian one of the most active gold explorers on the ASX.

Competent Person:

Information in this report pertaining to mineral resources and exploration results was compiled by Mr MP Sullivan who is a member of Aus.I.M.M. Mr Sullivan is the chief geologist of Jemda Pty Ltd, consultants to the company. Mr Sullivan has sufficient experience which is relevant to the style of mineralisation and the type of deposit that is under consideration and to the activity that 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 Sullivan consents to the inclusion in the report of the matters based on his information in the form and context in which is appears.

Source of Leonora Resource Figures:

These figures are a combination of previous production (if any) plus the latest publicly stated resources. The aim is to convey the size of the deposit and place this in a geological context in this map. Figures have been sourced from the following: Midas Resources Ltd 2012 Annual Report, Navigator Mining Ltd. 2012 Annual Report, St Barbara Mines Ltd 30th June 2012 ASX Announcement – Resource and Reserve Statement, AusIMM Publications: Geology of Australian and Papua New Guinean Mineral Deposits 1990, 1998.

Collar Details:

Hole	MGA E	MGA N	RL	Depth	Dip	Azimuth
DCRC001	354793	6798283	430	68	-60	245
DCRC002	354839	6798218	430	50	-60	245
DCRC003	354888	6798160	430	48	-60	245
DCRC004	354901	6798174	430	90	-60	245
DCRC005	354936	6798093	430	48	-60	245
DCRC006	354952	6798111	430	90	-60	245
DCRC007	354987	6798021	430	90	-60	245
DCRC008	355007	6798032	430	90	-60	245
DCRC009	354855	6798233	430	90	-60	245
CRC018	357294	6790053	400	126	-60	125
CRC019	357270	6790112	400	109	-60	125
CRC020	357272	6789991	400	150	-60	125
CRC021	357192	6790021	400	102	-60	125

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CRC022	357165	6789945	400	90	-60	125
CRC023	357233	6789904	400	120	-60	125
CRC024	357396	6790241	400	135	-60	125
CRC025	357142	6790428	400	100	-60	125
CRC026	357096	6790353	400	100	-60	125
CRC027	357015	6790279	400	100	-60	125
CRC028	356940	6790209	400	100	-60	125
DRC019	354581	6795933	400	40	-60	335
DRC020	354588	6795916	400	60	-60	335
DRC021	354596	6795898	400	90	-60	335
DRC022	354661	6795968	400	48	-60	335
DRC023	354671	6795949	400	60	-60	335
DRC024	354733	6796002	400	54	-60	335
DRC025	354747	6795967	400	90	-60	335
DRC026	354811	6796038	400	72	-60	335
DRC027	354798	6796059	400	60	-60	335
DRC028	354822	6796004	400	72	-60	335
DRC029	354889	6796050	400	30	-60	335
DRC030	354897	6796037	400	60	-60	335
DRC031	354963	6796077	400	30	-60	335
DRC032	354964	6796062	400	60	-60	335

Table 6: Drill holes completed at Malcolm.

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Appendix 1 Malcolm Project

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	JORC Code explanation	Commentary	Commentary
Sampling		•	Nature and quality of sampling (eg cut channels, random chips, or specific	•	Some data and results referred to in this report are historic, and date from the
techniques			specialised industry standard measurement tools appropriate to the minerals		late 1980s to the present day. The historic data has been judged to be reliable
		•	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.	•	following independent t research, including discussions with previous operators and explorers in person. Samples from the current drilling programme were collected via Reverse Circulation (RC) drill chips.
		•	Aspects of the determination of mineralisation that are Material to the Public	•	All drilling yielded samples on a metre basis. The initial samples from this
			Report.		drilling were composited into intervals of 4m. Reverse Circulation (RC) drilling
		•	In cases where ‘industry standard’ work has been done this would be relatively		is utilised to obtain 1 m samples which are riffle split, from which approx. 2-3
			simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	•	kg is pulverised to produce a 40g charge for fire assay. The individual 1m samples for the anomalous intervals have been submitted to the lab and will be reported once the assays are received. Sample preparation method is total material dried and pulverized to nominally
					85% passing 75 µm particle size. Gold analysis method is generally by 40g
					Fire Assay, with Atomic Absorption Spectrometry (AAS) finish (DL 0.01 – UL
					50 ppm Au). Samples exceeding the upper limit of the method were
					automaticallyre-assayed utilizinga highgradegravimetric method.
Drilling		•	Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger,	•	The RC drilling is usually 155mm in diameter. RC drilling was via a face
techniques			Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth		sampling hammer.
			of diamond tails, face-sampling bit or other type, whether core is oriented and if
			_so, by what method, etc). _
Drill	sample	•	Method of recording and assessing core and chip sample recoveries and results	•	Recoveries were logged onto paper logs during drilling. Recoveries were
recovery			assessed.		visually assessed.
		•	Measures taken to maximise sample recovery and ensure representative nature	•	Sample recoveries were maximised in the RC drilling via collecting the samples
			of the samples.		in a cyclone prior to sub sampling.
		•	Whether a relationship exists between sample recovery and grade and whether	•	No relationship appears from the data between sample recovery and grade of
			sample bias may have occurred due topreferential loss/gain of fine/coarse		the samples.

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Criteria		JORC Code explanation	JORC Code explanation	Commentary	Commentary
			material.
Logging		•	Whether core and chip samples have been geologically and geotechnically logged	•	All drillholes were geologically logged. This logging is to be of a good quality
			to a level of detail to support appropriate Mineral Resource estimation, mining		and suitable for use in further studies.
			studies and metallurgical studies.	•	Logging is qualitative in nature.
		•	Whether logging is qualitative or quantitative in nature. Core (or costean, channel,	•	All samples / intersections are logged. 100% of relevant length intersections
			etc) photography.		are logged.
		•	_The total length and percentage of the relevant intersections logged. _
Sub-sampling		•	If core, whether cut or sawn and whether quarter, half or all core taken.	•	Non-core RC drill chip sample material is riffle split, where sample is dry. In
techniques	and	•	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled		case of wet sample a representative ‘grab’ sample method is utilized.
sample			wet or dry.	•	The sample preparation technique is total material dried and pulverized to
preparation		•	For all sample types, the nature, quality and appropriateness of the sample		nominally 85% passing 75 µm particle size, from which a 40g charge was
			preparation technique.		representatively riffle split off, for assay.
		•	Quality control procedures adopted for all sub-sampling stages to maximise	•	Standard check (known value) samples were used in all sample submissions
			representivity of samples.		to the lab. The known values correspond closely with the expected values. A
		•	Measures taken to ensure that the sampling is representative of the in situ material		duplicate (same sample duplicated) were commonly inserted for every 40 or
			collected, including for instance results for field duplicate/second-half sampling.		50 samples taken.
		•	Whether sample sizes are appropriate to the grain size of the material being		• Routine standards and duplicates were used to check for accuracy and
			sampled.		precision of the results.
					• Thegrain size isgenerallyfine and so the sample size is appropriate.
Quality of assay		•	The nature, quality and appropriateness of the assaying and laboratory	•	The independent laboratories used for this work is internationally accredited for
data	and		procedures used and whether the technique is considered partial or total.		QAQC in mineral analysis.
laboratory tests		•	For geophysical tools, spectrometers, handheld XRF instruments, etc, the	•	No geophysical tools have been used to date.
			parameters used in determining the analysis including instrument make and	•	The laboratory inserted blank and check samples for each batch of samples
			model, reading times, calibrations factors applied and their derivation, etc.		analysed and reports these accordingly with all results.
		•	Nature of quality control procedures adopted (eg standards, blanks, duplicates,
			external laboratory checks) and whether acceptable levels of accuracy (ie lack of
			bias) andprecision have been established.
Verification	of	•	The verification of significant intersections by either independent or alternative	•	The intersections have been subject to field checking and the individual 1m
sampling	and		company personnel.		samples are presently being assayed.
assaying		•	The use of twinned holes.	•	No twinned holes have been used to date.
		•	Documentation of primary data, data entry procedures, data verification, data	•	Documentation of primary data is hand written field log sheets. Primary data
			storage (physical and electronic) protocols.		is entered into application specific data base. The data base is subjected to
		•	Discuss any adjustment to assay data.		data verification program, erroneous data is corrected. Data storage is
					retention of physical log sheet, two electronic backup storage devices and
					primary electronic database.
Location of data		•	Accuracy and quality of surveys used to locate drill holes (collar and down-hole	•	Survey control used is hand held GPS. No down hole surveys were completed.
points			surveys), trenches, mine workings and other locations used in Mineral Resource		As the other drillholes were drilled to less than 100m significant deviations are
			estimation.		not expected.
		•	Specification of thegrid system used.	•	Grid systems are various localgrid converted to MGA coordinates.

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Criteria			JORC Code explanation	JORC Code explanation	Commentary	Commentary
			•	Quality and adequacy of topographic control.	•	Topographic control is accurate to+/-0.5m.
Data	spacing		•	Data spacing for reporting of Exploration Results.	•	The drill spacing of the RC holes is variable but generally no greater than.
and distribution			•	Whether the data spacing and distribution is sufficient to establish the degree of	•	The infilled areas have drilling density sufficient for JORC Inferred category.
				geological and grade continuity appropriate for the Mineral Resource and Ore		Further infill will be required for other categories.
				Reserve estimation procedure(s) and classifications applied.	•	For the initial samples 4m compositing has been used. The individual 1m
			•	_Whether sample compositing has been applied. _		samples are currentlyinthelabforassay.
Orientation		of	•	Whether the orientation of sampling achieves unbiased sampling of possible	•	The orientation of the drilling is approximately at right angles to the known
data in	relation			structures and the extent to which this is known, considering the deposit type.		mineralisation and so gives a fair representation of the mineralisation
to geological			•	If the relationship between the drilling orientation and the orientation of key		intersected.
structure				mineralised structures is considered to have introduced a sampling bias, this	•	No sampling bias is believed to occur due to the orientation of the drilling.
				should be assessed and reported if material.
Sample			•	The measures taken to ensure sample security.	•	Samples were delivered to the laboratory in batches at regular intervals. These
security						are temporarily stored in a secure facility after drilling and before delivery
Audits		or	•	The results of any audits or reviews of sampling techniques and data.	•	The company engages independent consultants who regularly audit the data
reviews						for inconsistencies and other issues. None have been reported to date.

Section 2 Reporting of Exploration Results

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

Criteria			JORC Code explanation	JORC Code explanation	Commentary	Commentary
Mineral			•	Type, reference name/number, location and ownership including agreements	•	The drilling at Dover Castle South was carried out on P37/8824. The drilling
tenement		and		or material issues with third parties such as joint ventures, partnerships,		at Dumbarton was carried out on P37/8825. Both of these tenement forms part
land	tenure			overriding royalties, native title interests, historical sites, wilderness or national		of the Malcolm Joint Venture. This tenement is held by a third party on behalf
status				park and environmental settings.		of the Joint Venture parties. The company is the Manager of the Joint Venture
			•	The security of the tenure held at the time of reporting along with any known		and holds executed transfers which will permit this tenement becoming the
				impediments to obtaining a licence to operate in the area.		property of the Joint Venture. Torian has purchased a 51% interest in the
						project and is earning up to 90% by completing exploration on the project.
					•	The drilling at Calypso was carried out on P37/8792. This is 100% held by
						Torian.
Exploration			•	Acknowledgment and appraisal of exploration by other parties.	•	All work relating to previous exploration contained within this report was
done by	other					completed by other parties. The details of this work have been released in
parties						previous announcements to the market..
Geology			•	Deposit type, geological setting and style of mineralisation.	•	Details of the geology are found elsewhere in this report.
Drill		hole	•	A summary of all information material to the understanding of the exploration	•	Details of the drilling, etc are found within the various tables and diagrams
Information				results including a tabulation of the following information for all Material drill		elsewhere in this report.
				holes:	•	Nomaterial information,results ordatahave beenexcluded.

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Criteria		JORC Code explanation	JORC Code explanation	Commentary	Commentary
			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		No material information has been excluded.
			o down hole length and interception depth
			o hole length.
		•	If the exclusion of this information is justified on the basis that the information
			is not Material and this exclusion does not detract from the understanding of
			_the report, the Competent Person should clearly explain why this is the case. _
Data		•	In reporting Exploration Results, weighting averaging techniques, maximum	•	Weighted averages were calculated by a simple weighting of from and to
aggregation			and/or minimum grade truncations (eg cutting of high grades) and cut-off		distances down each hole. These are 1m samples. No top cuts were applied.
methods			grades are usually Material and should be stated.		Lower cot-offs used were – Malcolm 1g/t Au.
		•	Where aggregate intercepts incorporate short lengths of high grade results and	•	The drilling results are shown tabulated elsewhere in this report.
			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.		• No metal equivalents have been used
		•	The assumptions used for any reporting of metal equivalent values should be
			clearly stated.
Relationship		•	These relationships are particularly important in the reporting of Exploration	•	Details of geology, and selected cross sections are given elsewhere in this
between			Results.		report.
mineralisation		•	If the geometry of the mineralisation with respect to the drill hole angle is	•	The steep dipping nature of the mineralisation means that steeply inclined
widths	and		known, its nature should be reported.		drillholes will show exaggerated widths. These are shown in the diagrams and
intercept lengths		•	If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg ‘down hole length, true width not known’).		tables elsewhere in this report. • The drilling results shown elsewhere in this report are drill widths not true
					widths.
Diagrams		•	Appropriate maps and sections (with scales) and tabulations of intercepts	•	Details of geology, and selected cross sections are given elsewhere in this
			should be included for any significant discovery being reported These should		report.
			include, but not be limited to a plan view of drill hole collar locations and
			appropriate sectional views.
Balanced		•	Where comprehensive reporting of all Exploration Results is not practicable,	•	Details of the results, drilling, etc are reported elsewhere in this report.
reporting			representative reporting of both low and high grades and/or widths should be
			practiced to avoid misleading reporting of Exploration Results.
Other		•	Other exploration data, if meaningful and material, should be reported including	•	Details of geology, and selected cross sections are given elsewhere in this
substantive			(but not limited to): geological observations; geophysical survey results;		report.
exploration			geochemical survey results; bulk samples – size and method of treatment;
data			metallurgical test results; bulk density, groundwater, geotechnical and rock
			_characteristics; potential deleterious or contaminating substances. _
Further work		•	The nature and scale of planned further work (eg tests for lateral extensions or	•	Proposed work included drilling of infill and step out RC drilling across the
			_depth extensions or large-scale step-out drilling). _		mineralisation. The aimofsuch work is toincrease confidenceinthe data and

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
	•	Diagrams clearly highlighting the areas of possible extensions, including the		also to test for extensions to the known mineralisation. Budgets are being
		main geological interpretations and future drilling areas, provided this		prepared for this work at present.
		information is not commercially sensitive.	•	In addition a significant number of additional prospects are known to exist
				within the projects as defined by previous RAB and RC drilling intersections.
				These will form the second phase of exploration.
			•	Various maps and diagrams are presented elsewhere in this report to highlight
				possible extensions and new targets.

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	JORC Code explanation	Commentary	Commentary
Database	•	Measures taken to ensure that data has not been corrupted by, for example,	•	The database was checked against the hard copy originals for validity.
integrity		transcription or keying errors, between its initial collection and its use for	•	Data validation checked consistency of features such as hole depth, consistent
		Mineral Resource estimation purposes.		down hole surveys, duplicate assays, etc.
	•	Data validationprocedures used.
Site visits	•	Comment on any site visits undertaken by the Competent Person and the	•	The competent person made site visits to all projects during the course of the
		outcome of those visits.		drilling programme.
	•	If no site visits have been undertaken indicate why this is the case.
Geological	•	Confidence in (or conversely, the uncertainty of) the geological interpretation	•	The geology of the various resources is reasonably well documented and
interpretation		of the mineral deposit.		understood. Most are in areas of outcrop and so direct observation of dips,
	•	Nature of the data used and of any assumptions made.		strikes, widths, etc have been made.
	•	The effect, if any, of alternative interpretations on Mineral Resource estimation.	•	3D models of the geology were commonly used as a guide for the interpretation
	•	The use of geology in guiding and controlling Mineral Resource estimation.		of the mineralization.
	•	The factors affecting continuity both of grade and geology.	•	Continuity is assumed to be from hole to hole. As the maximum spacing of
				holes is 80m in the resources this appears to be a reasonable assumption. At
				all times the geology guided the continuity. No faults or other dislocations that
				mayinfluence the geologicalcontinuity areknown withintheresources.
Dimensions	•	The extent and variability of the Mineral Resource expressed as length (along	•	The widths of the mineralisation within the resources are fairly uniform. The
		strike or otherwise), plan width, and depth below surface to the upper and lower		strike and dip extents of the mineralisation in the various resources is
		limits of the Mineral Resource.		determined solelybydrilling.
Estimation and	•	The nature and appropriateness of the estimation technique(s) applied and key	•	The project contains resources outside of the area drilled in this drilling
modelling		assumptions, including treatment of extreme grade values, domaining,		programme. These resources were estimated using Micromine software. The
techniques		interpolation parameters and maximum distance of extrapolation from data		mineralization was wireframed at the cut off grades stated above. Where high
		points. If a computer assisted estimation method was chosen include a		grade domains were noted these were subset from the overall wireframes.
		description of computer software and parameters used.	•	Where historic workings are also mapped these were also wireframed and
	•	The availability of check estimates, previous estimates and/or mine production		deducted from the resource. These estimates were validated against historic
		records and whether the Mineral Resource estimate takes appropriate account		production records where known.

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Criteria		JORC Code explanation	JORC Code explanation	Commentary	Commentary
			of such data.	•	Geological models were used to constrain the mineralization models. The
		•	The assumptions made regarding recovery of by-products.		method used is considered to be suitable for the estimation of Inferred
		•	Estimation of deleterious elements or other non-grade variables of economic		Resources. More complex methods may be appropriate for resources of
			significance (eg sulphur for acid mine drainage characterisation).		higher category.
		•	In the case of block model interpolation, the block size in relation to the average	•	There is modest previous mining activity across most of the resources. These
			sample spacing and the search employed.		provide evidence of width, dip, strikes, etc.
		•	Any assumptions behind modelling of selective mining units.	•	Top cuts were not applied, however their influence on the wireframes was
		•	Any assumptions about correlation between variables.		reduced by domaining high grade zones separately.
		•	Description of how the geological interpretation was used to control the	•	No data was available for reconciliation. The model was compared to the drill
			resource estimates.		data directly on section using the geological features as a guide. Minor
		•	Discussion of basis for using or not using grade cutting or capping.		adjustments were made following this.
		•	The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.		• Lower grade cut offs were used to define the edges of the wireframes, whilst the higher grades were not cut due to a lack of statistics. The
					higher grade areas were wireframed separately so as not to affect the
					surrounding lower grade haloes. The wireframes were checked manually
					against the cross sectional interpretations for consistency. Minor
					changesweremadefollowing this process.
Moisture		•	Whether the tonnages are estimated on a dry basis or with natural moisture,	•	The estimates are made on a dry basis as little information exists reliably
			_and the method of determination of the moisture content. _		outlining themoisture contents.
Cut-off		•	The basis of the adopted cut-off grade(s) or quality parameters applied.	•	The lower cut off were arbitrarily assigned after a visual assessment of the
parameters					mineralization on cross sections. No upper cuts were applied, but their
					potential influencewasreduced by separately domaining anyhighgrade areas.
Mining factors		•	Assumptions made regarding possible mining methods, minimum mining	•	All resources are assumed to be open pitable. This is due to the oxide nature
or assumptions			dimensions and internal (or, if applicable, external) mining dilution. It is always		of the upper parts of the resources and the relatively shallow nature of the
			necessary as part of the process of determining reasonable prospects for		drilling to date. No mining studies have been made to date for any resource.
			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.
Metallurgical		•	The basis for assumptions or predictions regarding metallurgical amenability.	•	All mineralisation is assumed to be free milling on the basis of historic data.
factors	or		It is always necessary as part of the process of determining reasonable		Most other resource contain some visible gold either in panned drill cuttings or
assumptions			prospects for eventual economic extraction to consider potential metallurgical		directly observed in historic workings. A significant proportion of gravity
			methods, but the assumptions regarding metallurgical treatment processes		recoverable gold would be expected in any future processing.
			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.

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Criteria		JORC Code explanation	JORC Code explanation	Commentary	Commentary
Environmen-tal		•	Assumptions made regarding possible waste and process residue disposal	•	The assumed operations will have typical waste dumps as seen in many sites
factors	or		options. It is always necessary as part of the process of determining		across Western Australia. These include dewatering and tailings disposal
assumptions			reasonable prospects for eventual economic extraction to consider the		facilities.
			potential environmental impacts of the mining and processing operation. While	•	No assumed operation in the future will have an unusual impact on the
			at this stage the determination of potential environmental impacts, particularly		environment.
			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. _
Bulk density		•	Whether assumed or determined. If assumed, the basis for the assumptions. If	•	No bulk density data were available. Bulk densities were assumed based on
			determined, the method used, whether wet or dry, the frequency of the		industry experience elsewhere in Western Australia. An SG of 2.2t/m2 was
			measurements, the nature, size and representativeness of the samples.		assumed for all material. This reflects the semi oxidised nature of most of the
		•	The bulk density for bulk material must have been measured by methods that		material.
			adequately account for void spaces (vugs, porosity, etc), moisture and
			differences between rock and alteration zones within the deposit.
		•	Discuss assumptions for bulk density estimates used in the evaluation process
			_of the different materials. _
Classification		•	The basis for the classification of the Mineral Resources into varying	•	The classification of all resources as Inferred reflects various unknowns of the
			confidence categories.		data. Despite this there is sufficient continuity of the mineralisation across all
		•	Whether appropriate account has been taken of all relevant factors (ie relative		resources.
			confidence in tonnage/grade estimations, reliability of input data, confidence in	•	As currently understood these estimates give a fair reflection of the resources.
			continuity of geology and metal values, quality, quantity and distribution of the		• The result is appropriate in the competent person’s view.
			data).
		•	Whether the result appropriately reflects the Competent Person’s view of the
			_deposit. _
Audits	or	•	The results of any audits or reviews of Mineral Resource estimates.	•	The resources have received a number of peer reviews. No key issues were
reviews					raised.
Discussion	of	•	Where appropriate a statement of the relative accuracy and confidence level	•	The classification of the resources as Inferred reflects the presently understood
relative			in the Mineral Resource estimate using an approach or procedure deemed		confidence in the continuity of dimensions and grade of the resources.
accuracy/			appropriate by the Competent Person. For example, the application of	•	Various features require additional drilling. In all cases the resources remain
confidence			statistical or geostatistical procedures to quantify the relative accuracy of the		open, particularly down dip.
			resource within stated confidence limits, or, if such an approach is not deemed	•	A more rigorous statistical understanding of the mineralisation in the resources
			appropriate, a qualitative discussion of the factors that could affect the relative		will be made following more detailed drilling.
			accuracy and confidence of the estimate.	•	The resources stated in this report relate to local estimates. Further drilling is
		•	The statement should specify whether it relates to global or local estimates,		warranted before any economic evaluation is made.
			and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made	•	Details of assumptions used are as stated in this report.
			and the procedures used.
		•	These statements of relative accuracy and confidence of the estimate should

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Criteria	JORC Code explanation	Commentary
	_be compared with production data, where available. _

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