GOLDEN DEEPS LIMITED. — Capital/Financing Update 2017

Dec 6, 2017

ASX ANNOUNCEMENT 7 December 2017

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ASX code: GED

Golden Deeps to Acquire the Professor and Waldman High Grade Cobalt Projects, Ontario (Canada)

Diversified exploration company Golden Deeps Limited (ASX: GED ) is pleased to announce it has entered into a binding agreement to acquire a 100% interest in each of the Professor Cobalt Project and the Waldman Cobalt Project, both located in Ontario, Canada.

Highlights:

• Golden Deeps has entered into a binding agreement to acquire the Waldman and the Professor highgrade cobalt projects, both located in the Cobalt Mining Camp in Ontario, Canada

• The Cobalt Mining Camp is historically the most prolific silver-cobalt mining camp in Canada

  • 50 million pounds of cobalt and 600 million ounces of silver mined over a 60-year period with peak production from 1919 to 1931

• Professor Cobalt Project operated in the early 1960’s

  • Historic 280-metre-long adit (with 588 metres of lateral workings), still accessible

  • Adit exposed 4 vein systems containing disseminated to semi-massive cobalt mineralisation

  • 3 other shafts, several pits and trenching recorded on claims

  • To the east of the Professor Adit property < 1.5 miles are the former Silver producers: Cobalt Lode, Christopher, Brady Lake and Beaver-Temiskaming mines. To the north east, < 1.5 miles are the former Silver producers: Conisil, Lawson, Kerr, Hargraves and Drummond mines

• Waldman Cobalt Project operated over the period from 1910 to 1930

  • A total of 58 tons of ore was produced from the Waldman Mine, from which a total of 33,525 ounces of Silver and 2,066 pounds of cobalt was produced mostly from the #1 shaft; roughly equivalent to 52.6 t @ 1.78% Co and 637 oz/t Ag.

  • The Waldman Mine lies just 400 metres to the west of the Silverfields Mine (Teck Corp), a large silver producer which over the period 1964-1982 produced 17,795,000 oz Ag ( R.S. Nichols, 1988, CIM Bulletin V.81, No. 910, p.43 )

• Excellent infrastructure surrounds these high-grade cobalt-silver projects

• Significant potential to host economic deposits of cobalt-silver mineralisation

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1[st] Floor, 8 Parliament Place, West Perth, WA 6005 PO Box 1618, West Perth, WA 6872

www.goldendeeps.com

t : +61 8 9481 7833 f : +61 8 9481 7835 email : ged@goldendeeps.com

The Board of Golden Deeps consider that the proposed high-grade cobalt acquisitions in Ontario complement Golden Deeps’ strategy to position itself to become a developer of key commodities for the growing lithiumion battery and energy storage markets. The price of cobalt has undergone an exponential increase in recent times due to concerns over security of supply and a desire to source cobalt outside of the high-risk DRC. The recent activity of numerous end user groups taking early strategic positions in cobalt exploration companies as a means of securing a long-term supply of cobalt is evidence that cobalt pricing will continue to increase as shortages become more pronounced. The opportunity to acquire these high-grade cobalt projects in a safe operating jurisdiction is a significant step in the right direction for Golden Deeps. The Company has successfully secured exposure to this highly sought-after sector and is now focused on delivering enhanced shareholder returns through detailed exploration. Cobalt will play an important role in the way we use and store energy going forward.

The Board and management team possess the necessary skills and experience to develop these projects and we see these assets as a natural strategic fit. The Company has already developed some key relationships with local service providers in Ontario.

Project Location

The map below illustrates the project location of the Professor Adit and Waldman Mine Cobalt Projects:

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Figure 1: Professor and Waldman
Cobalt Projects Location Map
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The Professor and the Waldman projects are both located in the historic Cobalt Mining Camp, and approximately 5 kilometres and 3 kilometres (respectively) southeast of the town of Cobalt. The projects exhibit similar geology to other past operating and producing mines in the region, such as University Mine, Silverfields Mine and Cleopatra Mine.

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Figure 2: Professor and Waldman Cobalt Projects Location Map

Professor Cobalt Project

The Professor Co-Ag project is located in the north-eastern portion of Gillies Limit Township, approximately 5 km southeast of the town of Cobalt (Figure 2).

The Professor project consists of a contiguous landholding of 16 patent and leasehold claims for a total of 129.7 hectares and includes historical working known as the Professor Adit, 3 Oxford Shafts and the Cummins Pits (Figure 3).

Access to the Professor project is easily facilitated through a dedicated road to the location of the entrance of the Professor Adit, whilst a separate trail also exists from the adit to the Cummins Pits. The service road are in good operating condition, and subject to maintenance requirements, can provide year-round access to the project to facilitate exploration.

The location of the Professor Adit and the associated Cummins Pits and three shallow Oxford Shafts is illustrated in Figure 3 below.

1[st] Floor, 8 Parliament Place, West Perth, WA 6005 PO Box 1618, West Perth, WA 6872

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Figure 3: Google Earth Imagery of the Professor Adit, Oxford Shafts and Cummins Pits

The historic 280 metre-long Professor Adit, with approximately 590 metres of lateral workings, was mined on the property in the early 1960’s. The adit, which is still accessible, exposed four vein systems containing disseminated to semi-massive cobalt mineralisation.

A detailed underground mine plan exists for the Professor Adit, as illustrated below:

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Figure 4: Professor Adit Silver-Cobalt Project – Underground Workings and Mine Plan (partial)

To the east of the Professor claims, approximately 0.5 to 1.5 miles (0.8 to 2.5 km) in distance are several former silver producing mines, including the Cobalt Lode, Christopher, Brady Lake and Beaver-Temiskaming mines. To the northeast, about 0.5 to 1.5 miles (0.8 to 2.5 km) away from the claims are the historical Conisil, Lawson, Kerr, Hargraves and Drummond mines.

1[st] Floor, 8 Parliament Place, West Perth, WA 6005 PO Box 1618, West Perth, WA 6872

A photograph of the entry point of the Professor Adit and the principal #3 Ag-Co vein within the Professor Adit is illustrated below:

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Image 1: Professor Adit Silver-Cobalt Project – Portal Entry

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Image 2: Professor Adit Silver-Cobalt Project – #3 Ag-Co Ore Vein

Very little work and limited drilling has been completed on the project area since the mid-1960’s and it is considered to be under explored.

Waldman Cobalt Project

The Waldman Ag-Co project is located about 3 km south of Cobalt (Figure 2) and consists of a contiguous landholding of 11 Crown Claims, for a total of 188.8 hectares. The claim block includes the past producing Waldman Mine which can be easily gained through a dedicated road which runs off a main road running northsouth at the east boundary of the Waldman Mine project (Figure 5).

The main road is provincially maintained, whilst the mine road remains in good operating condition, and subject to maintenance requirements, can provide year-round access to the project to facilitate exploration.

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Figure 5: Google Earth Imagery of the Waldman Mine

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The Waldman Mine, located on the eastern side of the claim block (Figure 5), operated periodically from 1910 to 1930. Shaft #1 was sunk 85 feet (26 metres) with drifting, cross cuts and stoping (Figure 6). Two more shafts were put down approximately 375 - 400 metres to the north of shaft #1.

A total of 58 tons (52.6 metric tonnes) of ore was taken from Waldman Mine, from which a total of 33,525 ounces of silver and 2,066 pounds of cobalt was produced mostly from the #1 shaft (Sergiades, A.O. 1968. Silver Cobalt Calcite Vein Deposits of Ontario; Ontario Department of Mines, Mineral Resources Circular No. 10, 498p) . This is approximately equivalent to production of 52.6 t @ 1.78% Co and 637 oz/t Ag. An unrecorded amount of silver and cobalt was later recovered from the waste dump by “hand cobbling”. Whilst this is considered to be a small tonnage as a result of the use of selective mining practices, the grades of mineralisation are very high for both cobalt and silver.

The Waldman mine is located less than 400 metres to the west of the Silverfields mine (Teck Corp), a large silver producer which over the period 1964-1982 produced 17,795,000 oz Ag ( R.S. Nichols, 1988, CIM Bulletin V.81, No. 910, p.43) . The available geological information indicates that the mineralised vein structures exploited in the Waldman Mine workings potentially extend further to the west.

A site visit completed as part of the technical due diligence process identified that the decline into the Waldman Mine remains open and can potentially be refurbished to provide access to the mineralised veins which were being developed.

The image below illustrates the current status of the mine opening at the Waldman Mine. As can be noted in the image, the old head-frame remains in place at the entry to the #1 shaft. Infrastructure around the Waldman Mine remains in good condition.

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Image 3: Waldman Mine Silver-Cobalt Project – Shaft Entry and historic head-frame

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A detailed underground mine plan exists for the Waldman Mine, as illustrated below:

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Figure 6: Waldman Mine SilverCobalt Project – Underground Workings and Mine Plan

Geological Setting and Exploration Potential

The Cobalt area is an established Tier-1 mining district, with extensive road, rail and port infrastructure, able to target future production to key North American and export markets. The district is a proven mining camp with over 600Moz Ag and 50Mlbs of Co production from previous operating mines. Much of this silver was extracted in early 1900’s, with minimal focus on Co or on high grade Co regions which were typically left behind or used as a tracer to track silver occurrences.

The Cobalt Mining Camp lies within the Cobalt Embayment, an approximately 145 km wide basinal structure comprising Early Proterozoic sedimentary rocks of the Huronian Supergroup that unconformably overlie Archean basement rocks consisting for the most part of metavolcanic rocks (Figure 7).

Both rock groups have been extensively intruded by 2.22 Ga mafic sills and dykes referred to as the Nipissing Diabase. The Cobalt Embayment is also crosscut by regional scale fault systems, of which the northwest trending faults of the Lake Timiskaming Structural Zone are the most prominent.

Ore mined historically in the mining camp consisted of native silver and silver minerals along with a variety of cobalt nickel-iron arsenides and sulpharsenides. Lesser amounts of antimonides, bismuthinides and base metal sulphides were also present. The mineralization occurred in steeply dipping to vertical epigenetic carbonate veins that crosscut the three main lithologies of the Cobalt Camp (Figure 8).

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Historical sampling from some of these veins shows exceptionally high grades of cobalt (3-15%) (source: Northern Ontario Ministry of Development and Mines “MNDM”) . Although best known for the economically important Ag-Co veins of the Cobalt mining camp, the Cobalt Embayment also hosts numerous other regionally-distributed, polymetallic (Fe, Cu, Ni, Co, As, Au, Ag, Bi ± U) calcite-quartz vein systems.

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Professor Adit and
Waldman Mine
Cobalt Projects
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Figure 7: Geological Map of the Cobalt Embayment

The Professor and Waldman Projects are located in the southern part of the Cobalt Mining Camp. Three major rock formations occur in the area including; the Huronian aged conglomerates (Coleman Group) of the Gowganda Formation, Archean mafic volcanic rocks such as the Keewatin Andesites and the Nipissing Diabase sill.

The area is considered prospective for cobalt-silver mineralisation along the extensive strike contacts between the Nipissing Diabase and the other lithologies.

The projects cover extensive strike length of highly prospective ground along these contacts. Exploration targets are narrow, high-grade mineralised veins (such as those historically exploited underground) and for broader zones of vein or disseminated mineralisation that may be potentially amenable to open-pit or largerscale underground mining operations.

Minimal early stage exploration work has been conducted outside the four main silver-cobalt mining areas of the Cobalt Mining Camp. This has meant that new “mini-camps” and new Ag-Co deposits still remain untested. The majority of the former producing mines simply followed the silver-cobalt-calcite veins as a part of the

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overall methodology for exploration that included drifting / tunnelling and raising. Very few mines used underground diamond drilling as part of its exploration program largely due to the inability to fund the expenditure required.

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Waldman Co-Ag
Project
Professor Co-Ag
Project
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Figure 8: Geological Map of the Waldman and Professor cobalt projects

The project claims are adjacent to former operating mines with historic silver and cobalt production. Miners in the early 1900’s generally targeted easy to access outcrops due to the lack of geophysical exploration technology that exists today. There has been minimal modern exploration carried out to date.

The Professor and Waldman cobalt projects include significant exploration upside and further growth opportunities due to minimal exploration techniques applied, structures are relatively shallow and amendable to geophysical surveys and low-cost, shallow drilling. Former mines provide a significant database for the Company on production assets and for exploration programs to target along strike.

Proposed Exploration

Modern geophysical exploration techniques such as induced polarisation (IP), magnetics and gravity have not historically been utilised in the Cobalt District. Nor has systematic structural analysis been applied to the mineralised veins in order to discover non-outcropping “blind” mineralisation. This presents a significant opportunity for an accelerated exploration program to discover further deposits.

The Company intends to implement an exploration program at the Professor and the Waldman Projects comprising historical data compilation, along with surface sampling and trenching. Airborne and ground

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geophysics surveys will be undertaken to assist with the interpretation of the project geology and assist with identification of potential drilling targets.

Where possible, the historical workings will be re-mapped and sampled to evaluate the potential for extensions of the known mineralisation. Fieldwork is scheduled to commence in early 2018 with a maiden drilling program planned to be completed during the northern summer.

Due Diligence

The Company is presently conducting technical and legal due diligence on the Professor Adit and Waldman Mine cobalt projects and will provide updates once it has concluded its investigations.

Completion of Placement

In conjunction with the acquisitions, Golden Deeps Limited appointed Asenna Wealth Solutions ( Asenna ) as Lead Manager for a share placement (the Placement ) to professional and sophisticated investors to raise capital for the acquisition of the cobalt-silver projects and to fund ongoing exploration.

A total of 20,000,000 new shares, at a price of $0.0412/share were allocated to investors in order to raise approximately $824,000 gross proceeds.

Funds raised under the Placement will be used as follows:

• i. Acquisition of the Professor and Waldman properties;

• ii. Commencement of geophysical surveys at the Professor and Waldman claim blocks;

• iii. Surface sampling and trenching program at the Professor and Waldman claim blocks;

• iv. General working capital; and

• v. Advancing exploration on the Company’s other projects.

The issue of the 20,000,000 new shares is pursuant to shareholder approval received at the AGM on the 16[th] November 2017 (see resolution 3) where shareholders approved a future issue of shares.

Asenna will receive a capital raising fee of 6% (+GST) of funds raised under the Placement, which will be settled via the issue of 1,200,000 fully paid ordinary shares at a deemed issue price of $0.0412 per share. Asenna will also receive 20,000,000 unlisted options with an exercise price of $0.08 and an expiry date of 30 November 2018. The issue of the total 20,000,000 unlisted options would exceed the current capacity of the Company to issue securities without shareholder approval. The Company will therefore issue options up to its current capacity (approximately 18,500,000 options) and will then seek shareholder’s approval for the balance as required.

Summary of Acquisition Terms

Golden Deeps Limited has entered into a binding agreement with New Found Gold Corp. (the Vendor ) to acquire 100% of the Professor and Waldman Projects in Ontario, Canada.

The key terms of the acquisition are as follows:

• The Company will pay the Vendor CAD$15,000 on execution of the agreement to secure an exclusive right to conduct due diligence on the Projects ( Paid )

1[st] Floor, 8 Parliament Place, West Perth, WA 6005 PO Box 1618, West Perth, WA 6872

• Subject to successful completion of due diligence, the Company can acquire an initial 70% interest in the Projects by:

• making an initial cash payment of CAD$150,000 to the Vendor and issuing the Vendor 10,000,000 shares, subject to 12 months escrow from the date of issue; and

• making a further cash payment of CAD$90,000 after 4 months from the initial payment.

• The Company has an option to acquire an additional 20% interest in the Projects (total 90% interest) within 12 months of the initial payment by:

• making a further cash payment of CAD$30,000 to the Vendor; and

• issuing the Vendor with 600,000 shares, subject to 12 months escrow from the date of issue.

• The Company also has an option to acquire the remaining 10% interest in the Projects (total 100% interest) within a further 24 month period by:

• making a further cash payment of CAD$30,000 to the Vendor; and

• issuing the Vendor with 600,000 shares, subject to 12 months escrow from the date of issue.

• On acquiring a 100% interest, the Company will grant a 0.5% net smelter return royalty (NSR) to the Vendor over cobalt metal produced from the Projects, and a 2.0% NSR over all metals other than cobalt produced from the Projects. The Company has the right to buy back half of these royalties at any time, for total consideration of CAD$1,000,000 which is payable in either cash, shares or a combination of cash and shares.

• Cobalt27 also have a 2.0% NSR on cobalt produced from the Projects.

• Subject to the Company delineating a JORC or NI43-101 compliant resource of >3Mt at an average grade of not less than 0.5% Co, the Company will pay the Vendor CAD$300,000 in cash and/or shares.

The issue of the above shares to the Vendor will exceed the Company’s current capacity to issue securities without shareholder approval and the Company will therefore seek shareholder approval as required.

If the Company does not exercise its option to acquire 100% of the Projects, then the Company and the Vendor will form an unincorporated joint venture for the ongoing exploration and development of the Projects.

Cobalt – A Strategic Commodity

Cobalt is an important raw material for the production of lithium ion batteries, high-temperature alloys, cutting tools, magnetic materials, superalloys, petrochemical catalysts, pharmaceuticals and glaze materials. When used as an alloy, cobalt improves the high temperature strength and corrosion resistance of more common metals, especially nickel and chromium. Superalloys are high temperature alloys that exhibit superior characteristics including mechanical strength, resistance to thermal creep deformation, good surface stability and resistance to corrosion or oxidation, used typically in jet engine parts and gas turbines.

Most portable applications are powered by cobalt based lithium ion batteries and the two key growth areas for cobalt are for use as a key input in these batteries and in the production of superalloys.

Cobalt is a key component of the battery chemistry for lithium ion batteries. There is more cobalt by dollar value and weight being used in the main lithium-ion battery types than lithium. Over 40% of Cobalt production is currently used in batteries with demand expected to grow over 68% over the next decade (according to a research report from CRU) with 49% of demand growth being from batteries. Cobalt is in the early stages of

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transformational demand shift due to its being a critical component of lithium ion batteries which are predominantly used in electric vehicles and storage.

From 1999 to 2015 global cobalt demand grew from 2,900t to 40,563t equivalent to an extraordinary Compound Annual Growth Rate (CAGR) of 17.9%. Cobalt presently trades at in excess of US$58,000/t.

Cobalt Supply Chain Issues

Cobalt is typically mined as a low-grade by-product of copper or nickel. With nickel and copper prices under pressure and forecast to remain weak this by product is an uncertain and reduced source of supply. In addition, over 55% of the cobalt produced comes from the Democratic Republic of Congo (of which 94% makes its way to China) which has a history of supply side disruptions and significant sovereign risk. In 2016, Amnesty International released a report highlighting human rights and child labour abuses at its cobalt mines. Clean supply chain sourcing for battery materials and associated branding issues / customer expectations are expected to become an increasingly important issue for multinationals that source cobalt for their lithium-ion batteries. Clean jurisdictions such as Canada are expected to benefit from this supply-chain shift.

ENDS

For further information, contact:

Paul Fromson Lachlan Reynolds Company Secretary Exploration Manager P: +61 8 9481 7833 P: +61 8 9481 7833 E: pfromson@kmm.com.au E: lreynolds@goldendeeps.com

Caution Regarding Forward-Looking Information

This document contains forward-looking statements concerning Golden Deeps. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company’s actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and

potential title disputes.

Forward looking statements in this document are based on the company’s beliefs, opinions and estimates of Golden Deeps as of the dates the forward looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

Competent Person Statement

The information in this announcement that relates to Exploration Targets, Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr. Martin Ethier, PGeo, is a Competent Person who is a Professional Geologist registered with the Ordre des géologues du Québec (Member # 1520), in Canada. Mr. Martin Ethier, PGeo, is an independent consultant to Golden Deeps Limited. Mr. Martin Ethier and all competent persons are independent from the issuer of this statement, Golden Deeps Limited. Mr. Martin Ethier has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr. Martin Ethier consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

1[st] Floor, 8 Parliament Place, West Perth, WA 6005 PO Box 1618, West Perth, WA 6872

Mr. Martin Ethier has reviewed the historical exploration results that are contained in this announcement and has validated the source of the historical information. Mr. Martin Ethier is satisfied with its inclusion in the form and context in which it appears in this announcement.

1[st] Floor, 8 Parliament Place, West Perth, WA 6005 PO Box 1618, West Perth, WA 6872

JORC Code, 2012 Edition – Table 1 Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	JORC Code explanation	Commentary
Sampling		Nature and quality of sampling (eg cut channels,	No sampling completed.
techniques		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.
		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 (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.
Drilling		Drill type (eg core, reverse circulation, open-hole	No drilling completed.
techniques		hammer, rotary air blast, auger, Bangka, sonic, etc)
		and details (eg 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). _
Drill sample		Method of recording and assessing core and chip	Not applicable, no drilling samples collected.
recovery		sample recoveries and results assessed.
		Measures taken to maximise sample recovery and
		ensure representative nature of the samples.
		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.
Logging		Whether core and chip samples have been	Not applicable, no drilling completed.
		geologically and geotechnically logged to a level of
		detail to support appropriate Mineral Resource
		estimation, mining studies and metallurgical studies.
		Whether logging is qualitative or quantitative in
		nature. Core (or costean, channel, etc) photography.
		The total length and percentage of the relevant
		intersections logged.
Sub-sampling		If core, whether cut or sawn and whether quarter,	Not applicable, no samples collected.
techniques and		half or all core taken.
sample		If non-core, whether riffled, tube sampled, rotary
preparation		split, etc and whether sampled wet or dry.
		For all sample types, the nature, quality and
		appropriateness of the sample preparation
		technique.
		Quality control procedures adopted for all sub-
		sampling stages to maximise representivity of
		samples.
		Measures taken to ensure that the sampling is
		representative of the in situ material collected,
		including for instance results for field
		duplicate/second-half sampling.
		Whether sample sizes are appropriate to the grain
		size of the material being sampled.
Quality of		The nature, quality and appropriateness of the	Not applicable, no assays completed.
assay data and		assaying and laboratory procedures used and
laboratory		whether the technique is considered partial or total.
tests		For geophysical tools, spectrometers, handheld XRF
		instruments, etc, the parameters used in determining
		the analysis including instrument make and model,

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Criteria	JORC Code explanation	JORC Code explanation	Commentary
		reading times, calibrations factors applied and their
		derivation, etc.
		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	Not applicable, no sampling and assaying completed.
sampling and		independent or alternative company personnel.
assaying		The use of twinned holes.
		Documentation of primary data, data entry
		procedures, data verification, data storage (physical
		and electronic) protocols.
		Discuss any adjustment to assay data.
Location of		Accuracy and quality of surveys used to locate drill	Not applicable, no data points referenced.
data points		holes (collar and down-hole surveys), trenches, mine
		workings and other locations used in Mineral
		Resource estimation.
		Specification of the grid system used.
		Quality and adequacy of topographic control.
Data spacing		Data spacing for reporting of Exploration Results.	Not applicable.
and		Whether the data spacing and distribution is
distribution		sufficient to establish the degree of geological and
		grade continuity appropriate for the Mineral
		Resource and Ore Reserve estimation procedure(s)
		and classifications applied.
		Whether sample compositing has been applied.
Orientation of		Whether the orientation of sampling achieves	Not applicable.
data in relation		unbiased sampling of possible structures and the
to geological		extent to which this is known, considering the deposit
structure		type.
		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.
Sample security		The measures taken to ensure sample security.	Not applicable.
Audits or		The results of any audits or reviews of sampling	Not applicable, none completed.
reviews		techniques and data.

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Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation	JORC Code explanation	Commentary
Mineral		Type, reference name/number, location and ownership	Golden Deeps has the right to acquire 100% of the
tenement and		including agreements or material issues with third parties	Professor Adit and Waldman Mine Cobalt projects
land tenure		such as joint ventures, partnerships, overriding royalties,	pursuant to the respective binding acquisition
status		native title interests, historical sites, wilderness or	agreements.
		national park and environmental settings.
		The security of the tenure held at the time of reporting	There are no other material issues affecting the
		along with any known impediments to obtaining a licence	tenements.
		to operate in the area.
			Upon the completion of the obligations pursuant to
			the legal agreements, Golden Deeps will own 100%
			of the cobalt projects and ownership of the
			individual claims will be transferred to Golden
			Deeps.
			All tenements are in the process of being legally
			validated by an independent lawyer to provide an
			opinion as to the good standing nature of the claims.
			The independent lawyer selected is a specialist in the
			field.
Exploration done		Acknowledgment and appraisal of exploration by other	No modern exploration has been conducted.
by other parties		parties.	Historical mining records and government mapping
			records multiple cobalt mineralised zones within the
			project areas but limited data is available.
Geology		Deposit type, geological setting and style of	The Professor Adit and Waldman Mine Cobalt
		mineralisation.	projects are composed of epigenetic principal ore
			veins, cross-veins, masses of mineralised Keewatin
			interflow rocks, and disseminated minerals in the
			Gowganda Formation, Coleman Member. Only the
			principal ore veins contain silver ore and they occur
			primarily in the Coleman Member.
			The veins also contain cobalt indicator minerals such
			as arsenides and native silver (principal metal veins).
			The arsenides, including nickel, cobalt, and iron
			varieties, occur as massive lenses and disseminated
			grains in the carbonate veins. Some massive lenses
			extend across the entire widths of the veins, others
			present as irregular bodies in the centres of the
			veins, and still others occur at the edges of the veins.
			The distribution of cobalt indicator minerals from top
			to bottom of the veins are rich in the following
			elements (i) nickel, (ii) cobalt and (iii) iron. The veins
			can be classified as Ni-As, Ni-Co-As, Co-Fe-As and Fe-
			As.
			Silver grades exhibit a very different zonation
			implying that previous production has excluded
			multiple areas of cobalt mineralisation.
Drill hole		A summary of all information material to the	Some historical drilling is recorded on geological
Information		understanding of the exploration results including a	maps but records are not available.
		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.
Data aggregation		In reporting Exploration Results, weighting averaging	Not applicable, none reported.
methods		techniques, maximum and/or minimum grade

1[st] Floor, 8 Parliament Place, West Perth, WA 6005 PO Box 1618, West Perth, WA 6872

Criteria	JORC Code explanation	JORC Code explanation	Commentary
		truncations (eg cutting of high grades) and cut-off grades
		are usually Material and should be stated.
		Where aggregate intercepts incorporate short lengths of
		high grade results and longer lengths of low grade
		results, the procedure used for such aggregation should
		be stated and some typical examples of such
		aggregations should be shown in detail.
		The assumptions used for any reporting of metal
		equivalent values should be clearly stated.
Relationship		These relationships are particularly important in the	Not applicable, none reported.
between		reporting of Exploration Results.
mineralisation		If the geometry of the mineralisation with respect to the
widths and		drill hole angle is known, its nature should be reported.
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’). _
Diagrams		Appropriate maps and sections (with scales) and	Not applicable, none reported.
		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.
Balanced		Where comprehensive reporting of all Exploration Results	Not applicable, none reported.
reporting		is not practicable, representative reporting of both low
		and high grades and/or widths should be practiced to
		avoid misleading reporting of Exploration Results.
Other substantive		Other exploration data, if meaningful and material,	All meaningful and material data is included in the
exploration data		should be reported including (but not limited to):	announcement. These data are principally historical.
		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.
Further work		The nature and scale of planned further work (eg tests for	Detailed geochemistry and geology to determine
		lateral extensions or depth extensions or large-scale step-	trends of known mineralised zones and to delineate
		out drilling).	other Co-Ag anomalies.
		Diagrams clearly highlighting the areas of possible	Further trenching to determine structural orientation
		extensions, including the main geological interpretations	of mineralised zones.
		and future drilling areas, provided this information is not	Conducting an Airborne EM survey over the two key
		commercially sensitive.	project areas.
			Conduct an IP survey.
			Drilling.

1[st] Floor, 8 Parliament Place, West Perth, WA 6005 PO Box 1618, West Perth, WA 6872