GOLDEN DEEPS LIMITED. — Capital/Financing Update 2019

Jan 30, 2019

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ASX ANNOUNCEMENT 31 January 2019

ASX code: GED

Golden Deeps confirms major Resource Upgrade at Abenab Vanadium project

Highlights:

• Comprehensive geological study completed at Abenab and Abenab West Vanadium Projects

• New updated Mineral Resource of 2.8Mt 0.66% vanadium pentoxide, 2.35% lead and 0.94% zinc at a cut-off grade of 0.2%

• Resource delivers significant increase in total tonnes and contained metal - contains 18.5kt vanadium pentoxide, 65.8kt lead, 26.3kt zinc

• ~3,000m drilling program to commence Q1 – to expand Abenab mineralised footprint

• New geological model generates seven new priority exploration targets

• Negotiations for treatment of surface ore stockpiles (ROM) and tailings are at an advanced stage

Golden Deeps Limited (ASX: GED) is pleased to announce a significant Mineral Resource upgrade at the Abenab Vanadium project in Namibia.

The new Mineral Resource is the result of a detailed geological review and target generation study at the Abenab project, and has delivered a 150% increase in total tonnes (at a cuff-off grade of 0.2%). A drilling program is planned to test new targets identified in Q1 2019.

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Figure 1: Location Plan - Abenab Vanadium Project

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Golden Deeps Limited 1[st] Floor, 8 Parliament Place, West Perth, WA 6005

PO Box 1618, West Perth, WA 6872

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Geological Review and Target Generation Study

In November 2018, GED engaged highly experienced and recognised consultancy Shango Solutions (Shango) to conduct a comprehensive geological and drill targeting study on the Abenab Project (Figure 1). The study facilitated the integration of newly acquired historic exploration data from AVZ Limited (formerly Avonlea Minerals Limited).

Shango commenced the study with an extensive search for additional historic data followed by compilation and validation of the exploration data. Historic underground drill holes were captured off old level plans adding to the digital database. As a result, the database has been updated and enhanced providing a robust platform for future exploration work.

New 3D geological models have been generated for Abenab and Abenab West (Figure 2). The addition of underground drill data from old mine plans allowed lithological contacts and faults to be modelled resulting in an improved understanding of the ore zones and the lithological and structural controls on mineralisation.

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Figure 2: Abenab Project showing location of the open pit, tailings and broken ore stockpile

New Updated Mineral Resource

The updated JORC Inferred Mineral Resource for Abenab calculated by Shango is:

• 2.80Mt @ 0.66% V2O5 (vanadium pentoxide), 2.35% Pb (lead), 0.94% Zn (zinc) at a 0.2% V2O5 cut-off o which equates to 18.5kt vanadium pentoxide, 65.8kt lead and 26.3kt zinc .

By lowering the cut-off grade from the previous Resource calculated by SRK, GED has significantly increased the tonnages by 4.1kt vanadium pentoxide, 31.6kt lead and 12.3kt zinc.

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Golden Deeps Limited 1[st] Floor, 8 Parliament Place, West Perth, WA 6005

PO Box 1618, West Perth, WA 6872

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The previously announced JORC Inferred Resource for Abenab was 1.12Mt @ 1.28% V2O5, 3.05% Pb, 1.25% Zn at a cut-off of 0.5% V2O5 which equated to 14kt vanadium pentoxide, 34kt lead and 14kt zinc.

The 0.5% V2O5 cut-off was selected in the previous Resource as it was considered to be most appropriate for a typical magnetite-style vanadium project; the majority of vanadium projects comprise vanadium minerals hosted by magnetite in layered igneous intrusions.

At Abenab, the vanadium mineralisation is primarily contained in a lead-zinc-vanadium mineral (descloizite (Pb,Zn(VO4)(OH))) and is hosted by a brecciated carbonate rock. The processing required for ore from Abenab will be significantly less, and accordingly cheaper, than the processing required for a magnetite-style vanadium deposit. As a result, a cut-off grade of 0.2% V2O5 has been adopted for the new Abenab Resource.

It is noted that the lead and zinc percentage values in the updated Mineral Resource remain similar to that which was reported by SRK, as a result the amount of lead and zinc has almost doubled. The Company’s intention is to recover these minerals in addition to the vanadium.

Nine drillholes were utilised to define grade shells based on interpolated grades between drillholes using Leapfrog Geo. The orientation and dimensions of the grade shells were based on the interpretation of geology and mineralisation using the newly modelled breccia host as a guide (Figures 3-4).

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Figure 4: Comparison between SRK (green) and Shango (blue) models for the breccia host at Abenab

Figure 3: Sources of data used to generate final geological model

Various combinations of search parameters yielded robust mineralisation trends supported by downdip and horizontal grade continuity. A comparison between Shango’s 0.2% V2O5 grade halo (green) compared to SRK’s previous 0.5% V2O5 grade halo (yellow), is shown in Figure 5.

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Golden Deeps Limited 1[st] Floor, 8 Parliament Place, West Perth, WA 6005

PO Box 1618, West Perth, WA 6872

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Figure 5: Shango 0.2% V2O5 grade halo (green) compared to SRK’s 0.5% V2O5 grade halo (orange)

Planned Drilling Program

Utilising the new geological model, a ~3,000m diamond drilling program has been planned at Abenab and Abenab West. At Abenab, drilling will have the dual aim of in-filling existing drilling within the Resource outline and testing for extensions on the margins of the resource. The majority of previous drilling has tested the resource at depth with little or no drilling adjacent to the open pit and the underground workings below the pit. Geological mapping has identified vanadium-bearing breccias on the margins of the open pit parallel to the northeast trending fault that hosts the Abenab deposit. In addition, only minor drilling has been conducted to locate ore remnants and the mineralised halo around the underground workings.

ENDS

For further information, please refer to the Company’s website at www.goldendeeps.com or:

James Moses

Media & Investor Relations Mandate Corporate P: +61 (0) 420 991 574 E: james@mandatecorporate.com.au

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.

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Golden Deeps Limited 1[st] Floor, 8 Parliament Place, West Perth, WA 6005

PO Box 1618, West Perth, WA 6872

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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 and Exploration Results is based on information compiled by Mr. Martin Bennett. Mr Bennett is an employee of Golden Deeps Limited and is a member of the Australian Institute of Geoscientists. Mr Bennett 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 Bennett consents to the inclusion in the report of the matters based on their information in the form and context in which it appears.

The information in this announcement that relates to estimation of the Mineral Resource at Abenab is based on, and fairly represents, information which has been compiled by Mr Manie Swart. Mr Swart is a Member of the South African Council for Natural Scientific Professions and a full-time employee of Shango Solutions. Mr Swart has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity that is 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 Swart consents to the inclusion in this report of the matters based on his information in the form and context in which they appear.

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Golden Deeps Limited 1[st] Floor, 8 Parliament Place, West Perth, WA 6005

PO Box 1618, West Perth, WA 6872

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JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Shango has been guided by SRK’s 2018 resource update document (Mineral Resource Estimate for the Abenab Vanadium Project, 2018) in the compilation of the following table. Material changes in cut-off criteria and geological modelling procedures are noted as required.

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

Criteria	JORC Code explanation	Commentary	Commentary
Sampling	• Nature and quality of sampling (eg cut channels, random chips, or	•	Diamond core samples were taken from half-cut HQ core with
techniques	specific specialised industry standard measurement tools appropriate		sample lengths between 0.3 m and 1.2 m. Core samples intervals
	to the minerals under investigation, such as down hole gamma		were selected so as not to cross geological boundaries.
	sondes, or handheld XRF instruments, etc). These examples should	•	Samples were representative of the geology and mineralisation.
	not be taken as limiting the broad meaning of sampling.	•	Samples in one drill hole, BH036, were taken from a historical
	• Include reference to measures taken to ensure sample representivity		cross section from Tsumeb Corporation, but were not used in
	and the appropriate calibration of any measurement tools or systems		resource estimation (used to guide interpretation only).
	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 hammer, rotary air	•	HQ core drilling from surface was used.
techniques	blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other	•	Core was orientated each run using the spear method.
	type, whether core is oriented and if so, by what method, etc).

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Golden Deeps Limited 1[st] Floor, 8 Parliament Place, West Perth, WA 6005

PO Box 1618, West Perth, WA 6872

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Criteria	JORC Code explanation	Commentary	Commentary
Drill sample	• Method of recording and assessing core and chip sample recoveries	•	Sample recovery was logged by Avonlea Minerals Ltd’s (AVZ)
recovery	and results assessed.		geological team into Microsoft Excel spreadsheets.
	• 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.	• •	Good recovery was encountered (87% in total) in the drilling, with cavities and core loss marked by drillers within core trays. The 13% core loss was a combination of poor core recovery and porosity.
		•	There is no known bias between core recovery and grade.
Logging	• Whether core and chip samples have been geologically and	•	Detailed lithological and structural logging was carried out by
	geotechnically logged to a level of detail to support appropriate		AVZ geologists using company standard protocols.
	Mineral Resource estimation, mining studies and metallurgical	•	Lithology, alteration, mineralisation and structure were captured
	studies.		in the logging.
	• Whether logging is qualitative or quantitative in nature. Core (or	•	All drill core was photographed prior to cutting after geological
	costean, channel, etc) photography.		logging with sample mark-up and orientations preserved.
	• _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	•	Drill core samples have been half-core sampled from HQ core.
techniques	taken.	•	Sample intervals are 0.3 m to 1.2 m, with an average of 1 m.
and sample	• If non-core, whether riffled, tube sampled, rotary split, etc and	•	Drill core was cut on site by AVZ personnel with samples
preparation	whether sampled wet or dry.		confined to geological boundaries, unless <0.3 m, from logging
	• For all sample types, the nature, quality and appropriateness of the		as assigned by AVZ geologists.
	sample preparation technique.	•	No field duplicates were taken.
	• Quality control procedures adopted for all sub-sampling stages to	•	Samples are considered to be representative of geology and
	maximise representivity of samples.		mineralisation.
	• Measures taken to ensure that the sampling is representative of the in
	situ material collected, including for instance results for field
	duplicate/second-half sampling.
	• Whether sample sizes are appropriate to the grain size of the material
	_being sampled. _
Quality of	• The nature, quality and appropriateness of the assaying and	•	All samples were submitted to Genalysis (Maddington, Perth) for
assay data and laboratory tests	laboratory procedures used and whether the technique is considered partial or total. • 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	•	analysis. Samples were transported to Genalysis in Walvis Bay, Namibia, for initial sample preparation and then forwarded to Maddington, Perth. Samples were analysed for V, Pb, Zn, S, Cu, As, Ti, Ag using

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

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Criteria	JORC Code explanation	Commentary	Commentary
	derivation, etc.		ICP/MS/OES methods with a sodium peroxide fusion method.
	• Nature of quality control procedures adopted (eg standards, blanks,	•	QA/QC was performed on samples submitted to the laboratory
	duplicates, external laboratory checks) and whether acceptable levels		and found to be sufficient for the resource estimation.
	of accuracy (ie lack of bias) and precision have been established.	•	Standards were routinely submitted with all assay batches at a
			rate of 1:20.
		•	Standards used from Geostats Pty Ltd included GBM399-5 and
			GBM910-8, GBM311-3 and GBM909-11.
		•	These are base metal standards certified for Pb, Zn and Cu. No
			V standards were used at the time of analysis due to lack of
			commercially available standards of similar characteristics;
			however, Pb, Zn and Cu standards validate the V data.
		•	No field duplicate samples or blanks were used in the AVZ
			drilling programmes.
Verification of	• The verification of significant intersections by either independent or	•	No verification has been conducted on the samples.
sampling and assaying	alternative company personnel. • 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.	• • • •	No twin holes of the AVZ drilling have been drilled. No adjustment to the assay data has been made. AVZ data was captured into Ms Excel spreadsheets and later imported into MS Access Database entries were compared to the original Excel
			spreadsheets for verification.
Location of	• Accuracy and quality of surveys used to locate drill holes (collar and	•	Drillhole collars were located using GPS by AVZ geological staff
data points	down-hole surveys), trenches, mine workings and other locations		which are considered to be sufficiently accurate for this study.
	used in Mineral Resource estimation.	•	Drillholes collars are in UTM34S
	• Specification of the grid system used.
	• Quality and adequacy of topographic control.
Data spacing	• Data spacing for reporting of Exploration Results.	•	Drill spacing for AVZ’s 2011/2012 drilling programme was 20 –
and distribution	• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral		40 m, with holes drilled at 80° or 85° dip into the known mineralisation.
	Resource and Ore Reserve estimation procedure(s) and classifications applied. • _Whether sample compositing has been applied. _	•	The spacing of mineralised intersections is considered sufficient to permit correlation of mineralisation continuity for this level of

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

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Criteria	JORC Code explanation	Commentary	Commentary
			resource classification.
		•	Sample compositing was not applied.
Orientation of	• Whether the orientation of sampling achieves unbiased sampling of	•	Drill core was orientated were possible with structural data
data in relation to geological structure	possible structures and the extent to which this is known, considering the deposit 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.	• •	recorded as alpha/ beta measurements. Drilling was orientated oblique to geological units and interpreted mineralised zones using depletion polygons from mined-out areas. The orientation of the mineralisation was determined at the
			modelling stage, utilising all relevant intersections.
Sample	• The measures taken to ensure sample security.	•	Samples were bagged and sealed and transported by AVZ field
security			staff
		•	to the laboratory in Walvis Bay, Namibia, and then via registered
Audits or	• The results of any audits or reviews of sampling techniques and data.	•	No independent audit of sampling techniques has been
reviews			completed. However, SRK has reviewed procedures supplied
			and found them to be appropriate.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	Commentary	Commentary
Mineral	• Type, reference name/number, location and ownership including	•	The Abenab pipe deposit lies within one exploration licence,
tenement and land tenure status	agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental 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.	• •	EPL5496. The exploration licence is held by a Golden Deeps Ltd, an 80% owned Namibian subsidiary, Huab Energy (Pty) Ltd. The Government of Namibia has a 3% royalty on any base metal production. There are no material issues, native title or environmental constraints known to SRK which may be deemed an impediment
			to the continuityof the Abenabproject. Shango has not

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Golden Deeps Limited 1[st] Floor, 8 Parliament Place, West Perth, WA 6005

PO Box 1618, West Perth, WA 6872

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Criteria	JORC Code explanation	Commentary	Commentary
			conducted an independent review of mineral title.
Exploration	• Acknowledgment and appraisal of exploration by other parties.	•	Previous exploration at the Abenab project has been completed
done by other			by South West Africa Company, Tsumeb Corporation Ltd,
parties			Goldfields of Namibia, Japanese International Cooperation
			Agency, Kudu Minerals and Avonlea Minerals Ltd.
Geology	• Deposit type, geological setting and style of mineralisation.	•	The Abenab pipe deposit is hosted within carbonate units of the
			Otavi Group rocks. Mineralisation is hosted on or near the
			contact between units of the Maiberg Formation.
		•	Mineralisation is historically hosted in a pipe-like body described
			as a collapsed breccia with localized clay infill. Vanadium-lead-
			zinc mineralisation comprises an oxide mineral known as
			descloizite with minor associated vanadinite.
Drill hole	• A summary of all information material to the understanding of the	•	No new exploration results are reported.
Information	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. _
Data	• In reporting Exploration Results, weighting averaging techniques,	•	No new exploration results are reported.
aggregation	maximum and/or minimum grade truncations (eg cutting of high
methods	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

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

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Criteria	JORC Code explanation	Commentary	Commentary
	_should be clearly stated. _
Relationship	• These relationships are particularly important in the reporting of	•	No new exploration results are reported.
between	Exploration Results.
mineralisation	• If the geometry of the mineralisation with respect to the drill hole
widths and	angle is known, its nature should be reported.
intercept	• If it is not known and only the down hole lengths are reported, there
lengths	should be a clear statement to this effect (eg ‘down hole length, true
	_width not known’). _
Diagrams	• Appropriate maps and sections (with scales) and tabulations of	•	Refer to the main body of the report for relevant plans and
	intercepts should be included for any significant discovery being		sectional reviews.
	reported These should include, but not be limited to a plan view of
	_drill hole collar locations and appropriate sectional views. _
Balanced	• Where comprehensive reporting of all Exploration Results is not	•	Not applicable as no exploration results are reported.
reporting	practicable, representative reporting of both low and high grades
	and/or widths should be practiced to avoid misleading reporting of
	_Exploration Results. _
Other	• Other exploration data, if meaningful and material, should be reported	•	No other data is material to this report.
substantive	including (but not limited to): geological observations; geophysical
exploration	survey results; geochemical survey results; bulk samples – size and
data	method of treatment; metallurgical test results; bulk density,
	groundwater, geotechnical and rock characteristics; potential
	_deleterious or contaminating substances. _
Further work	• The nature and scale of planned further work (eg tests for lateral	•	Golden Deeps and Shango Solutions have assessed the
	extensions or depth extensions or large-scale step-out drilling).		geological data from previous companies to develop an
	• 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 programme aimed at extending the known limits of mineralisation and upgrading the resource confidence at the Abenab Project.
		•	Refer to the main body of the report for details of planned
			exploration programmes.

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Golden Deeps Limited 1[st] Floor, 8 Parliament Place, West Perth, WA 6005

PO Box 1618, West Perth, WA 6872

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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	Commentary
Database	• Measures taken to ensure that data has not been corrupted by, for	•	Resource data is stored in a Microsoft Access database and
integrity	example, transcription or keying errors, between its initial collection		Microsoft
	and its use for Mineral Resource estimation purposes. • Data validation procedures used.	•	Excel spreadsheets. The data used in the Mineral Resource estimate has been cross referenced with original geology logs
			and laboratory report files and is suitable for the resource
			estimate
Site visits	• Comment on any site visits undertaken by the Competent Person and	•	Alex Aitken, CP responsible for the geology model and data
	the outcome of those visits.		integrity in the SRK Mineral Resource estimate was on site
	• If no site visits have been undertaken indicate why this is the case.		during the AVZ drilling operations in 2010–2012.
		•	Mr Manie Swart (CP) who takes responsibility for Shango’s
			Mineral Resource estimation has not been to site. However, two
			site visits have been conducted by Shango’s technical expert,
			Professor Sybrand de Waal, during late 2018.
Geological	• Confidence in (or conversely, the uncertainty of ) the geological	•	Geological interpretation has been based on an extensive
interpretation	interpretation of the mineral deposit.		critique of available drillhole and historical information spanning
	• Nature of the data used and of any assumptions made.		the entire duration of mining and previous exploration
	• The effect, if any, of alternative interpretations on Mineral Resource estimation. • The use of geology in guiding and controlling Mineral Resource estimation.	•	programmes. Geological modelling was conducted using Leapfrog Geo software.
	• The factors affecting continuity both of grade and geology.	•	Interpretation was guided by geological logging with
			mineralisation contained within the quartz-carbonate breccias
			and veins.
		•	Drillhole intersections have shown that the orebody displays
			lateralcontinuity across the host breccia-filled pipe.
Dimensions	• The extent and variability of the Mineral Resource expressed as	•	The mineral resource is confined to the volume of breccia pipe
	_length (along strike or otherwise), plan width, and depth below _		whichcovers a planarea ofapproximately125× 160m, by 520m

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

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Criteria	JORC Code explanation	Commentary	Commentary
	surface to the upper and lower limits of the Mineral Resource.		in vertical extent, commencing from 770 mamsl surface.
Estimation	• The nature and appropriateness of the estimation technique(s)	•	The resource is contained within a number of stacked and
and modelling techniques	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. • The availability of check estimates, previous estimates and/or mine	•	merging lenses of mineralisation which are understood to be approximately concordant with pre-brecciation bedding directions. The lateral extents of the resource block model adequately cover the known mineralisation.
	production records and whether the Mineral Resource estimate takes	•	Resource estimation was performed in three dimensions utilising
	appropriate account of such data.		Leapfrog Edge
	• The assumptions made regarding recovery of by-products. • Estimation of deleterious elements or other non-grade variables of economic significance (eg sulphur for acid mine drainage characterisation). • In the case of block model interpolation, the block size in relation to	• •	Shango conducted iterative visual and internal peer reviews to validate the estimate. The spatial continuity was inferred from the geological model and supported by an experimental variogram.
	the average sample spacing and the search employed.	•	Domaining was not required as only one vanadium population
	• Any assumptions behind modelling of selective mining units.		was observed with no noticeable outliers.
	• Any assumptions about correlation between variables.	•	No outlier capping or cutting was applied to the dataset as it was
	• Description of how the geological interpretation was used to control the resource estimates. • Discussion of basis for using or not using grade cutting or capping. • The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available.	•	not deemed necessary as no outliers where identified. Grade shells were constructed utilising the dip and azimuth derived from the experimental variogram. Inverse Distance Weighted to the power of three (IDW3) was selected as the estimation methodology, owing to the limited spatial continuity
			observed within the experimental variogram. Poor spatial
			continuity is attributed to the limited number of samples in the
			dataset.
		•	The 0.2% and 0.5% V2O5 grade shells were utilised as hard
			domain boundaries within which estimation was conducted. The
			application of the hard boundary results in only samples plotting
			within the grade shells being utilised.
		•	The search range was restricted to distances marginally greater
			than the average drillhole spacing. The restricted search range

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Golden Deeps Limited 1[st] Floor, 8 Parliament Place, West Perth, WA 6005

PO Box 1618, West Perth, WA 6872

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Criteria	JORC Code explanation	Commentary	Commentary
			coupled with IDW3 estimate ensured that the model was
			primarily informed by adjacent samples and prevents smearing
			of high grades.
		•	Grades were estimated into 20 m x 20 m parent cells and
			subcelled down to 2 m.
Moisture	• Whether the tonnages are estimated on a dry basis or with natural	•	The resource estimates are expressed on a dry tonnage basis,
	moisture, and the method of determination of the moisture content.		and in situ moisture content has not been estimated. A
			description of density data is presented below.
Cut-off	• The basis of the adopted cut-off grade(s) or quality parameters	•	In the absence of an orebody optimisation study, Shango has
parameters	applied.	•	employed a range of cut-off grades to illustrate the effect of a
			variable cut-off grade on resource tonnages.
		•	Accordingly, Shango has reported resources at both 0.2% and
			0.5% V2O5 cut-off grades.
Mining factors	• Assumptions made regarding possible mining methods, minimum	•	Detailed mining studies have not yet been completed. It is
or assumptions	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	•	expected that ore will be extracted using conventional selective underground or open pit mining methods which includes drilling and blasting, excavator mining, stope mining and dump truck haulage. Mining dilution assumptions have not been factored into the Mineral Resource estimates.
	_made. _
Metallurgical	• The basis for assumptions or predictions regarding metallurgical	•	Avonlea completed metallurgical testwork in 2012 from
factors or assumptions	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 metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous.	•	representative bulk samples taken from onsite stockpiles. Process flow sheet defined from historical documents from the mine processing plant correlated with the AVZ metallurgical testwork.
	Where this is the case, this should be reported with an explanation of	•	Detailed metallurgical testwork is planned to be completed as
	the basis of the metallurgical assumptions made.		part of further studies.
		•	Gravity separation using a 1 mm crushed material using wet
			tables and spirals to produce a heavy mineral concentrate.

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

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Criteria	JORC Code explanation	Commentary	Commentary
Environmen-	• Assumptions made regarding possible waste and process residue	•	No known environmental factors or assumptions have been
tal factors or	disposal options. It is always necessary as part of the process of		made at this stage of the project.
assumptions	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. _
Bulk density	• Whether assumed or determined. If assumed, the basis for the	•	Bulk density was measured by Genalysis for the samples from
	assumptions. If determined, the method used, whether wet or dry, the		ABD008 with a total of 257 samples, using the’ water immersion’
	frequency of the measurements, the nature, size and		method.
	representativeness of the samples. • The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit.	• •	An average dry bulk density of 2.81t/m3 was applied to the mineralised material. No allowance was made for open fissures which may exist within the orebody.
	• 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 resource classifications have been applied based on
	confidence categories.		a consideration of the confidence in the geological interpretation,
	• 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). • Whether the result appropriately reflects the Competent Person’s	•	the quality and quantity of the input data, the confidence in the estimation technique, and the likely economic viability of the material. Model validation checks show a good match between the input
	view of the deposit.		data and estimated grades, indicating that the estimation
			procedures have performed as intended, and the confidence in
			the estimates is consistent with the classifications that have
			been applied.
		•	Past mining activity at Abenab and in the Otavi Mountain Land
			Region supports potential economic viability of the deposits.
		•	Based on the findings summarised above, it was concluded that
			the primary controllingfactor forclassification was sample

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

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Criteria	JORC Code explanation	Commentary	Commentary
			coverage. A classification of Inferred was assigned to all
			domained material.
Audits or	• The results of any audits or reviews of Mineral Resource estimates.	•	No independent audits or reviews have been conducted on the
reviews			Resource estimates carried out by Shango.
		•	Shango has also completed an internal peer review.
Discussion of	• Where appropriate a statement of the relative accuracy and	•	The resource estimates have been prepared and classified in
relative accuracy/ confidence	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	•	accordance with the guidelines that accompany the JORC Code (2012), and no attempts have been made to further quantify the uncertainty in the estimates. The largest source of uncertainty is considered to be related to orebody interpretation. However, based on pit exposures and
	confidence of the estimate.		core logging, general lode geometry is considered to be well
	• The statement should specify whether it relates to global or local		understood,the likelihood of an alternative interpretation that
	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. • These statements of relative accuracy and confidence of the estimate should be compared with production data, where available.	•	would yield significantly different grade and tonnage estimates is considered to be low. In a lode system, the incorrect linking of individual lodes between drill lines is possible, but the relatively close drill spacing would mean that any such occurrences may impact upon the localised
			estimates, but are not expected to significantly affect the regional
			or global estimates. The Mineral Resource estimate and the
			accompanying model are considered suitable to support broad
			scoping mine planning studies, but are not considered suitable
			for detailed production planning.

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Golden Deeps Limited

1[st] Floor, 8 Parliament Place, West Perth, WA 6005

PO Box 1618, West Perth, WA 6872