GREENWING RESOURCES LTD — Capital/Financing Update 2015

Sep 1, 2015

ASX Release

2 September 2015

==> picture [261 x 98] intentionally omitted <==

The Manager Company Announcements Australian Securities Exchange Limited

Strategic investment in producing graphite asset

Highlights

• Current operations generating cash flow

• Sales pipeline to US offtake partner in place

• Low cost sustainable producer of quality flake graphite

• Opportunities for mine expansion and growth

• Acquisition - 25% interest for GBP2 million (A$4.3m)

Bass Metals ( Bass, ASX: BSM ) has entered into an agreement with AIM listed Stratmin Global Resources Plc ( Stratmin, AIM:STG ), to acquire a strategic interest in their Madagascan graphite operations which currently produce high quality graphite flake concentrate for sale to a large US based offtake partner.

Rick Anthon, Bass Chairman commented: “This is an excellent opportunity to take a position in a producing graphite asset, with cash flows supported by a high quality offtake partner and with a very experienced technical team to drive continued growth in the portfolio.”

The acquisition will occur via an investment in the Stratmin subsidiary company Graphmada Mauritius, which is the 100% owner of the Madagascan operating company, Graphmada S.A.R.L.

The agreement entitles Bass to acquire a 25% interest in Graphmada for an investment of GBP2 million (A$4.3) with an option to extend to a 35% interest subject to additional funding conditions.

About Graphmada

Graphmada operates the Loharano natural flake graphite mine situated in the central east of Madagascar, Africa, approximately 100 kilometres from Tamatave, the primary shipping port servicing Madagascar.

It is a low cost sustainable producer. The graphite ores have a high percentage of premium value large and jumbo graphite flake sizes. They are easily mined out of a soft regolith, clay host and a simple floatation process produces the concentrate and premium value flake size.

Access to the mine is along the main highway to the capital city with a short two-kilometre haul road from the highway to the mine and processing plant.

==> picture [64 x 36] intentionally omitted <==

==> picture [407 x 248] intentionally omitted <==

Figure 1: Location of Loharano Mining Operations

Flake graphite concentrate from Loharano is currently being sold to a large US based offtake partner. Processed graphite is dried and screened into various flake sizes, then bagged in one tonne bulk bags into containers for shipment from the nearby port of Tamatave to the US or other global destinations.

==> picture [435 x 249] intentionally omitted <==

Figure 2: Low cost free dig bench mining at Loharano mine site

Bass Metals – ASX Announcement

Page 2 of 23

==> picture [64 x 36] intentionally omitted <==

==> picture [430 x 333] intentionally omitted <==

Figure 3: Graphite floatation cells at Loharano

Mineral resource and exploration

Stratmin has previously reported the following Mineral Resource at Loharano:

Mineral Resource Category – Loharano Operation (Cut-off Grade – 2%)	Mineral Resource Category – Loharano Operation (Cut-off Grade – 2%)	Mineral Resource Category – Loharano Operation (Cut-off Grade – 2%)	Mineral Resource Category – Loharano Operation (Cut-off Grade – 2%)
Classification	Tonnage	Grade	Contained Graphite
	(‘000)	(%)	(tonnes)
Total Measured	-	-	-
Total Indicated	421	5.15	21,630
Total Inferred	5,273	4.04	213,029
Total Resources*	5,694	4.12	234,659
			* Rounding in effect

*These estimates were prepared and first disclosed by Stratmin under the JORC Code 2004. The estimates have not been updated to JORC Code 2012 on the basis that the information has not materially changed since it was last reported. A Competent Person has not done sufficient work to classify the historical estimates as mineral resources or ore reserves in accordance with the 2012 edition of the JORC Code and it is uncertain that following evaluation and/or further exploration work that they will be able to be reported as mineral resources or ore reserves in accordance with the 2012 edition of the JORC Code.

Bass Metals – ASX Announcement

Page 3 of 23

==> picture [64 x 36] intentionally omitted <==

Figure 4: Drying and bagging facilities at Loharano

==> picture [449 x 333] intentionally omitted <==

Mineral exploration and further ore type categorisation is currently underway at the Loharano Mine with an objective to update and increase the initial Mineral Resource under the guidelines required for reporting of Mineral Resources and Reserves set out in the 2012 edition of the JORC Code.

Bass Metals – ASX Announcement

Page 4 of 23

==> picture [64 x 36] intentionally omitted <==

==> picture [198 x 161] intentionally omitted <==

==> picture [207 x 161] intentionally omitted <==

Figures 5&6: Simple flotation & large flake size distribution

Growth Opportunities

Stratmin has invested over GBP7.5 million (A$16+ million) to date in building a large tenement portfolio, high-grade (>94% TGC) graphite concentrate processing facility, as well as infrastructure and logistical support for the project. The company employs over 90 people on site with a well skilled permanent in country team.

Currently the Loharano plant is producing at a rate of 300 tonnes per month. Stratmin aims to increase this to 500 tonnes per month (6,000 tpa) in the next few weeks as the plant shifts to 24 hour per day, 6 days per week, production. Approximately 50% of the concentrate produced by Graphmada is anticipated to be of large flake size capable of selling for US$1,200 in the current market.

In parallel to the exploration at the Loharano Mine Site, a Feasibility Study on the adjacent Mahefadok area is progressing. The study aims to assess the viability of a new 25-year, 12,000 to 20,000 tonne per year graphite concentrate plant to complement the existing processing facility at the Loharano mine.

In addition, Stratmin recently partnered with Tirupati Carbons and Chemicals, a private Indian company with a 20-year track record of graphite project development, concentrate production and graphite and related product sales. This partnership is focused on the expansion of operations in Madagascar and development of value added graphite products.

Agreement Details

Bass has entered into a subscription agreement with Graphmada Mauritius to subscribe for shares equivalent to a 25% interest in Graphmada for GBP 2 million (A$4.3 million).

Bass has the right to subscribe GBP 500,000 (A$1.1 million) by 31 September 2015 and a further GBP1.5 million (A$3.2 million) by 30 November 2015. In the event that the later payment is not made the Bass shareholding in Graphmada will be calculated on a pro rata basis, or approximately 7.7% of Graphmada on a fully diluted basis.

The subscription of funds by Bass is conditional on the completion of due diligence satisfactory to Bass and the execution of a shareholders agreement for Graphmada Mauritius between Bass and Stratmin.

Bass is currently exploring a number of options to ensure the necessary funding is available.

Bass Metals – ASX Announcement

Page 5 of 23

==> picture [64 x 36] intentionally omitted <==

Partnership approach

Commenting on the proposed transaction Rick Anthon said: “Bass is partnering with Stratmin at this time to take a strategic position in a rapidly developing graphite company, to fund the expansion of existing facilities, construction of a new mine and plant and to participate in future activities of the group.

“The investment gives Bass exposure to a producing asset in a sought after commodity with a clear path to increased production and sales.

Bass is very excited to partner with Stratmin and the experienced graphite team they have built and we believe this will bring significant shareholder value.

“We are looking forward to a new chapter in Bass’ history, growing into a significant operator and building value.”

Messrs David Premraj and Jeffrey Marvin are directors of both Bass and Stratmin, and Bass’ board has established an independent board committee consisting of Rick Anthon for the transaction.

Contacts and information:

Bass Metals Ltd – www.bassmetals.com.au

Stratmin Global Resources Plc - www.stratminglobal.com

Rick Anthon Chairman: Bass Metals Ltd	info@bassmetals.com.au
Barbara Pesel Media & Investor Relations	03 9036 6900 barbara.pesel@peselandcarr.com.au
David Round Company Secretary	0411 160 445 david@averio.com.au

Bass Metals – ASX Announcement

Page 6 of 23

==> picture [64 x 36] intentionally omitted <==

Appendix A: Listing Rule 5.12 Disclosure

Historic estimates presented in this announcement are based on the report “Independent Technical Report on the Loharano Graphite Mine Project, Madagascar,” dated September 25, 2012.

• This report was commissioned by Stratmin Global Resources Plc from Creo Design (Pty) Ltd, a Geological and GIS Consulting firm.

• The report was authored by Dr J Hattingh Ph.D. (Geology) Pr. Sci Nat.

• This report was prepared in accordance with the guidelines of JORC 2004 and the categories of mineralisation are comparable to those defined in Appendix 5A JORC Code.

Other estimates are taken from the report “ Preliminary Scoping Report Mahefadok RegolithHosted Flake Graphite Deposit Brickaville, Madagascar ”, dated 15 June 2015.

• TABLE 1 of Appendix 5A (JORC Code) for the report “ Preliminary Scoping Report Mahefadok Regolith-Hosted Flake Graphite Deposit Brickaville, Madagascar ”, dated 15 June 2015 is presented as Appendix 1 to this announcement.

• This report was commissioned by Stratmin Global Resources Plc from Vato Consulting LLC and SymAudire Pty Ltd.

• The report was co-authored by Jannie Leeuwner and Jonathan Robbeson, both Competent Persons as defined by the JORC Code 2012.

The historic estimates of these reports are relevant and material to the investment being made by Bass Metals Ltd in Graphmada Mauritius as they form a component of the technical due diligence source material for the transaction being announced.

Historic estimates are based on an extensive exploration program that included examination of historic production sites exploited during French colonial administration prior to 1947. More recently exploration has included high-resolution satellite mapping, surface mapping, trenching, pitting and auger drilling at Loharano that provided 588 independent samples that were submitted for analyses. Assay results were captured in a database from which 3D modeling was completed and resource estimates calculated.

Recently, packages have been mined from the Loharano ore body and processed on site with consistent production of flake graphite concentrate of 94% TCG reported.

In order to verify estimates in accordance with Appendix 5A (JORC Code) a core-drilling program is required to augment the auger, trenching and pitting generated samples. 100m drill spacing to a depth of 30m is required. To upgrade the resource model from Inferred to Indicated as defined by the JORC Code, will require infill drilling with a drill spacing of 50m.

Graphmada currently has exploration work underway in preparation for the drilling required to verify resources in historic estimates and complete testing and extension of resources in historic and new ore bodies. This will be funded through a combination of finances provided by revenues from sales, the transaction in this announcement and other capital raising as required.

Bass Metals – ASX Announcement

Page 7 of 23

==> picture [64 x 36] intentionally omitted <==

Competent Persons Statement

Mr Jannie Leeuwner – BSc (Hons) Pr.Sci.Nat. MGSSA (Consultant to StratMin Global Resources Plc), is a full-time employee of Vato Consulting LLC. Mr. Leeuwner is a registered Professional Natural Scientist (Pr.Sci.Nat. - 400155/13) with the South African Council for Natural Scientific Professional (SACNASP). Mr. Jonathan Robbeson – BSc (Hons1), MEconGeol, (CP Geo), (Consultant to StratMin Global Resources Plc), is a full time employee SymAudire Pty Ltd and is a registered Chartered Professional (Geology) with the Australian Institute of Mining and Metallurgy (AusIMM – 304542). Mr. Leeuwner and Mr Robbeson both have sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration and the activity being undertaken to qualify as a Competent Persons as defined in the Note for Mining Oil & Gas Companies, June 2009, of the London Stock Exchange and the 2012 Edition of the ‘Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code). Mr. Leeuwner and Mr Robbeson both consent to the inclusion of the information in this release in the form and context in which it appears and state that the information in this announcement provided under Listing Rules 5.12.2 to 5.12.7 is an accurate representation of the available data and studies for the Loharano Graphite Mine Project.

Bass Metals – ASX Announcement

Page 8 of 23

Appendix 1 – JORC Code, 2012 Edition – Table 1

Discussion and results within this appendix relate to the StratMin Global Resources plc – Mahefadok Project, Madagascar

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
	•	Nature and quality of sampling (eg. cut channels, random chips, or specific	•	Outcrop samples were collected on surface and included in-situ composite and
		specialised industry standard measurement tools appropriate to the minerals		grab samples of the graphite bearing host rocks. Trenches and pits were
		under investigation, such as down hole gamma sounds, or handheld XRF		excavated manually (up to 3.2m) and mechanically (up to 6.00m) along pre-
		instruments, etc.). These examples should not be taken as limiting the broad		defined section lines throughout the deposit. The trenches and pits were
		meaning of sampling		designed to expose geology across the strike length of the graphite occurrence
				and cut channel sampling within these pits and trenches was done vertically, and
	•	Include reference to measures taken to ensure sample representivity and the		these samples were immediately bagged and tagged.
		appropriate calibration of any measurement tools or systems used.	•	Sampling procedures included 1-metre composites along the depth intervals and
Sampling techniques	•	Aspects of the determination of mineralisation that are Material to the Public		lithological sub-division mark-ups to gather representative samples from intervals. Duplicate samples and pulps were analysed to provide checks on
		Report. In cases where ‘industry standard’ work has been done this would be		sample representatively.
		relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples	•	Visual estimation of graphite percentages and flake sizes have been used to
		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.		define mineralisation prior to return of assays. Trench and pit samples were collected within lithological sub-divisions only and not across geological boundaries. Samples were solar dried, and manually crushed, split twice through a 50/50 riffle splitter to obtain a representative sub-sample charge weighing between 100-120g that is send to an independent SANAS accredited laboratory
				(ALS Chemex) in South Africa for further analysis.
	•	Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast,	•	No drilling has been carried out at this stage and will be completed as a follow up
Drilling techniques		auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is		to the current preliminary exploration activities described herein.
		oriented and if so, bywhat method, etc.).
Drill sample recovery	•	Method of recording and assessing core and chip sample recoveries and results assessed.	•	Not applicable to trenching and pitting, however a predefined sampling procedure is in place.
			•	Samplingprocedures include continuous vertical cut channel samplingof (10 cm

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
	•	Measures taken to maximise sample recovery and ensure representative		wide and 5 cm deep) within lithological sub-division intervals.
		nature of the samples.	•	No relationship exists between sample recovery and grade, hence no bias is
				expected.
	•	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.
	•	Whether core and chip samples have been geologically and geotechnically	•	Trenches and pits were all geologically logged and photographed, geological
		logged to a level of detail to support appropriate Mineral Resource estimation,		recording of relevant was captured on StratMin logging templates was
		mining studies and metallurgical studies.		completed. All data was codified to a set company codes system as per sampling
				and logging procedures which are in place. This offers sufficient detail for the
	•	Whether logging is qualitative or quantitative in nature. Core (or costean,		purposes of geological interpretation, further studies and resource estimation
Logging		channel, etc) photography.	•	where continuity of the orebody needs to be proved and understood. No geotechnical logging has been completed to date.
	•	The total length and percentage of the relevant intersections logged.	•	All logging included lithological features, structural measurements, and
				estimates of graphite percentages and flake sizes which is quantitative and is
				recorded on the logging sheets. Photographs have been taken as a qualitative
				check on logging when the need arises.
			•	All of the trenches and pits were logged.
	•	If core, whether cut or sawn and whether quarter, half or all core taken.	•	No core has been drilled, and only trenching and pitting has been completed to
				date.
	•	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	•	Outcrop, trench and pit samples were solar dried, crushed and split twice using a 50:50 riffle splitter. The crushing and splitting equipment was cleaned
Sub-sampling techniques and sample preparation	• •	For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise	•	according to best practice procedures prior to every run. Each sample was manually crushed to nominal -3mm and approximately 100- 120g sub-samples was collected and send to ALS Chemex in South Africa. Field duplicates were retained on site for follow up studies if needs arise.
		representivity of samples.	•	Certified graphite standards (GC-09 and GC-10) and silica blanks (AMIS0439)
				were inserted every 20th sample, and 2 pulp duplicates included per every 100
	•	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.	•	samples. ALS Chemex Laboratory check samples (blanks, standards and duplicates) were also inserted by the laboratory to maintain QAQC standards.

Page 10 of 23

BASS Metals – ASX Announcement

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
	•	Whether sample sizes are appropriate to the grain size of the material being	•	In-house duplicate samples (a second sample of the same interval) were taken
		sampled.		and a review of these samples against the original sample assays showed
				consistency.
			•	The sample sizes are considered appropriate for the material sampled.
	•	The nature, quality and appropriateness of the assaying and laboratory	•	Samples were analysed by a SANAS Accredited Laboratory (ALS Chemex) in
		procedures used and whether the technique is considered partial or total.		South Africa. Sub-sample preparation included sorting and pulverizing such that
				80% of the sample is -75 micron or less in size.
	•	For geophysical tools, spectrometers, handheld XRF instruments, etc, the	•	A split of the sub-sample was analysed using a LECO Analyser to determine Total
		parameters used in determining the analysis including instrument make and		Carbon (TC), Sulphur (S) and Graphitic Carbon (GC) contents (these are
		model, reading times, calibrations factors applied and their derivation, etc.		considered both partial and total digestion analyses).
			•	For TC and S, analysed through the (C-IR07, S-IR08/(t)) methods, a stream of
	•	Nature of quality control procedures adopted (eg standards, blanks, duplicates,		oxygen passes through a prepared sample (0.05 to 0.6g), it is heated in a furnace
		external laboratory checks) and whether acceptable levels of accuracy (ie lack		to approximately 1350°C and the sulphur dioxide and carbon dioxide released
		of bias) and precision have been established.		from the sample are measured with infrared detection.
			•	For GC (analysed through the C-IR18 method), a 0.1g sample is leached with
Quality of assay data and laboratory				dilute hydrochloric acid to remove inorganic carbon. After filtering, washing and drying, the remaining sample residue is roasted at 425°C to remove organic carbon. The roasted residue is analysed for Carbon - High temperature LECO
tests				furnace with infra-red detection.
			•	Certified graphite standards (GC-09 and GC-10) and silica blanks (AMIS0439)
				were inserted every 20th sample, and 2 duplicate pulps inserted per every 100
				samples.
			•	Internal Laboratory check samples (blanks, standards and duplicates) are also
				analysed as per normal laboratory practice.
			•	All certified and laboratory internal standards, blanks and duplicates were
				reviewed and found to be within acceptable limits.
			•	For the ground magnetic survey a Geotron G5 magnetometer was used and
				readings were recorded every 10 m in nanotesla (nT). A base station was set-up
				using a second Geotron G5 magnetometer and readings were recorded every 30
				seconds in nT. Diurnal drift corrections were completed usingGeotron DumpG5

Page 11 of 23

BASS Metals – ASX Announcement

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				software.
	•	The verification of significant intersections by either independent or	•	All work was completed by StratMin and Vato Consulting personnel. Significant
		alternative company personnel.		mineralisation intersections were verified by Vato Consulting and an external
	•	The use of twinned holes.	•	consultant from Signature Gold Limited. No twinned holes were drilled as only trenching and sampling has been
	•	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.		completed to date. Drilling has been planned for the upcoming exploration season to verify all the results obtained by trenching and pitting.
			•	All data was collected initially on paper log sheets. This data was hand entered
Verification of	•	Discuss any adjustment to assay data.		into spreadsheets and validated by internal and external consultants. All paper
sampling and				log sheets were scanned, and electronic spreadsheets stored together with the
assaying				photographs of the intersections or geological features logged.
			•	The master collar, lithology and assay database with all photographs are backed-
				up and stored on an external hard drive.
			•	During the validation process, a total of 4 samples were identified as being
				swapped around, and another 4 samples were identified where GC values were
				reported slightly higher that TC values. The laboratory investigated, re-analysed,
				corrected and re-issued these results that were validated and identified as being
				appropriate.
	•	Accuracy and quality of surveys used to locate drill holes (collar and down-hole	•	Hand-held Garmin GPS’s were used to locate surface, pit and trench locations,
		surveys), trenches, mine workings and other locations used in Mineral		and final location coordinates were completed taking average readings up to 5
		Resource estimation.		minutes and with estimated positional errors between 1 and 3 meters.
Location of data points	•	Specification of the grid system used.	•	The WGS84 UTM Zone 39S projection system is used at the Mahefadok Prospect and a 50m grid system (geology and mining grid) has been set up along northings and eastings and is oriented GRID NORTH.
	•	Quality and adequacy of topographic control.	•	Topographical control is considered sufficient for the stage of exploration,
				surface wireframes downloaded from worldwide SRTM 15m ASTER data has
				been used to date.

Page 12 of 23

BASS Metals – ASX Announcement

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
	•	Data spacing for reporting of Exploration Results.	•	Trenches and pits were spaced between 50 to 100 m along the orebody strike
				and spacing between pits were approx. 10 to 20 m across strike.
	•	Whether the data spacing and distribution is sufficient to establish the degree	•	The data spacing is considered adequate to prove geological continuity
Data spacing		of geological and grade continuity appropriate for the Mineral Resource and		appropriate for geological interpretation and the production of geological
and		Ore Reserve estimation procedure(s) and classifications applied.		wireframes. Drilling will be completed in the near future to close the spacing
distribution				even further and provide and apply sufficient information to produce Mineral
	•	Whether sample compositing has been applied.		Resource Estimates.
			•	No sample compositing occurred and samples were taken at 1m intervals within
				host lithology boundaries only.
	•	Whether the orientation of sampling achieves unbiased sampling of possible	•	Trenches and pits spaced between 50 to 100 m along the orebody strike and
		structures and the extent to which this is known, considering the deposit type.		approx. 10 to 20 m across strike. Channel sampling methods were vertical within
Orientation of data in relation to geological structure	•	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.	•	these pits and trenches and is considered appropriate to achieve unbiased results within the Regolith-Hosted Flake Graphite orebody. Considering the size of the orebody (approx. 1.5km along strike and 150m wide) the methods of sampling and spacing of these samples are not considered to
				introduce sampling bias at this stage. Further work on this will be considered
				during Mineral Resource Estimation.
	•	The measures taken to ensure sample security.	•	Samples were stored in secure storage area at the project site from the time of
				gathering to sample preparation.
Sample security			•	Samples bags were sealed as soon as sub-sampling was completed, and stored securely until dispatch to the laboratory via courier. The chain of custody and waybill forms accompany each sample batch to ALS Chemex in South Africa.
			•	Courier Sample tracking is achieved using dispatch tracking codes during
				shipment to South Africa.
	•	The results of any audits or reviews of sampling techniques and data.	•	No audits of the sampling techniques and data was carried out due to the early
Audits or reviews				stage of exploration (i.e. pre 2013). However it is noted here that modern exploration on the Mahefadok prospect only commenced in late 2013.
			•	It is considered by the Company that industry best practice methods have since
				this date been implemented by the company at all stages of exploration.

Page 13 of 23

BASS Metals – ASX Announcement

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
	•	Type, reference name/number, location and ownership including agreements	•	Exploitation permit no PE 26670 is located in the Toamasina Province of
		or material issues with third parties such as joint ventures, partnerships,		Madagascar and held by the Malagasy company, Graph-Mada SARL which is
Mineral		overriding royalties, native title interests, historical sites, wilderness or national		wholly owned subsidiary of the AIM listed company, StratMin Global Resources
tenement and		park and environmental settings.		Plc. Permit no PE 26670 was granted on 21/01/2008 and is valid for 40 years.
land tenure
status	•	The security of the tenure held at the time of reporting along with any known	•	The permit is in good standing, and all statuary approvals are in place to
		impediments to obtaining a license to operate in the area.		conduct exploration and exploitation activities throughout this permit area and
				specifically on the Mahefadok Flake Graphite Deposit.
	•	Acknowledgment and appraisal of exploration by other parties.	•	Graph-Mada SARL excavated 4 pits in the northern part of the Mahefadok
				prospect in 2013 which revealed significant regolith-hosted graphite
				mineralisation at depth.
			•	These pits were excavated over a north-south distance (and along strike of the
Exploration				Mahefadok Ore body) of approx. 70 meters and Graph-Mada’s in-house
done by other				laboratory analysis of the pit samples returned up to 3 m @ 7.04 % Total
parties				Carbon (TC).
			•	No other systematic exploration activities were completed within this permit
				area or on the Mahefadok Regolith Flake Graphite deposit until 2014 when
				StratMin and Vato Consulting completed preliminary Exploration Activities over
				the area.
	•	Deposit type, geological setting and style of mineralisation.	•	Crystalline “hard rock” flake graphite deposits preferentially the precursor to
				the Mahefadok Regolith-Hosted Flake Graphite Deposit occur in graphitic
Geology				gneisses within Neoproterozoic metasedimentary type rocks and include accessory minerals of biotite (± sillimanite / kyanite, ± garnet).
			•	Due to the tropical climate and because graphite is comparatively inert,
				weatheringof the “hard rock”graphiticgneiss units further concentrate the

Page 14 of 23

BASS Metals – ASX Announcement

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				graphite to form residual regolith-hosted accumulations within the weathered
				profile.
			•	Regolith refers to weathered material that occurs above unweathered bedrock.
				Two primary subdivisions are the pedolith (PED) and the saprolith (SAP).
				Secondary subdivisions of the pedolith, from the surface downwards, include
				soil (SL), ferruginous zone (FZ), and the mottled zone (MZ). Secondary
				subdivisions of the saprolith, include saprolite (SP) and saprock (SR).
			•	The Mahefadok Flake Graphite Deposit contains high-grade lenticular bodies
				of flake graphite within the weathered profile described above. Thicknesses of
				this profile range from 3.5m thick to over 38m thick in some places around the
				deposit where preferential weathering of the graphite bearing bedrock has
				occurred.
			•	The “Hard rock” mineralizing host is still present at depth below the “Regolith-
				Hosted deposit” and dips at 40 ⁰ to 50⁰ to the west.
	•	A summary of all information material to the understanding of the exploration	•	To Date no drilling has been completed on the Mahefadok prospect and is
		results including a tabulation of the following information for all Material drill		planned to occur as a follow up to these preliminary exploration activities.
		holes:	•	34 outcrop samples were collected over PE 26670 and 75 pits (up to depths of
		oeasting and northing of the drill hole collar		5.9m) and 6 trenches (up to depths of 6.0m) were excavated over the
		oelevation or RL (Reduced Level – elevation above sea level in metres) of		Mahefadok Regolith-Hosted Flake Graphite Deposit.
Drill hole Information		the drill hole collar odip and azimuth of the hole odown hole length and interception depth	•	No Mineral Resource has been estimated over the deposit as of yet and the completion of this is pending obtaining follow up drilling results over the prospect.
		oDrillhole length.	•	The plethora of information available has been able to determine the extent,
				style and nature of the Mahefadok Flake Graphite Deposit while initial sampling
	•	If the exclusion of this information is justified on the basis that the information		has determined that flake graphite mineralisation persist throughout the
		is not Material and this exclusion does not detract from the understanding of		mineralised zones defined by the preliminary exploration activities completed
		the report, the Competent Person should clearly explain why this is the case.		to date over the deposit.
Data	•	In reporting Exploration Results, weighting averaging techniques, maximum	•	Channel samples from trenches and pits through the mineralised profile at
aggregation		and/or minimum grade truncations (e.g. cutting of high grades) and cut-off		Mahefadok have been reported on a length weighted basis over the
methods		grades are usually Material and should be stated.		mineralised intersection. Higher grade portions if present within these sections
				have also beenquoted to bepart of the length of the entire intersection. An

Page 15 of 23

BASS Metals – ASX Announcement

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
	•	Where aggregate intercepts incorporate short lengths of high grade results and		example of this is as described as follows:
		longer lengths of low grade results, the procedure used for such aggregation		o SGRP033 (representing StratMinGlobal Resources Pit number
		should be stated and some typical examples of such aggregations should be		33)
		shown in detail.		o This pit was dug to a depth of 5m from surface at Mahefadok
				o The flake graphite mineralised body occurred from 3m to 5m
	•	The assumptions used for any reporting of metal equivalent values should be		within the pit profile
		clearly stated.		o The 1m intersection from 3m-4m contained 6.22% GC
				(Graphitic Carbon)
				o The 1m intersection from 4m-5m contained 9.26% GC
				(Graphitic Carbon)
				o The results quoted by StratMin are as follows:
				 SGRP0332m @ 7.74% GC (including 1m @ 9.26%
				GC)
			•	No Cut-off grade studies have been completed and all results are quoted as
				“uncut” values as they appear on the original assay sheets from the accredited
				laboratory.
			•	No Metal Equivalents have been stated.
	•	These relationships are particularly important in the reporting of Exploration	•	The Mahefadok Flake Graphite Deposit is hosted within a weathered regolith
		Results.		profile and the main mineralised lenses / horizons occur sub-horizontally within
				the deposit (due to the preferential accumulation of graphite within layers within
Relationship	•	If the geometry of the mineralisation with respect to the drillhole angle is known,		the weathering of the regolith profile).
between mineralisation widths and intercept lengths	•	its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).	• •	The relationship between sample widths and the orientation of the orebody are yet to be confirmed. The deeper parts (+6m) of the Mahefadok ore body have yet to be tested and no information is available past the trenching depths at the current stage to
				discuss the geological nature of the ore body and grade of mineralisation.
				Further drilling works will confirm the nature and orientation of the deeper parts
				of the ore body and main “Hard Rock” mineralised gneiss.
	•	Appropriate maps and sections (with scales) and tabulations of intercepts	•	This information has been accurately represented in the preliminary report and
Diagrams		should be included for any significant discovery being reported.		contains all relevant information required for the reader to understand the
	•	These should include, but not be limited to a plan view of drill hole collar		orebody size, scale, orientation and nature.

Page 16 of 23

BASS Metals – ASX Announcement

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		locations and appropriate sectional views.
Balanced reporting	•	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	•	The summary table of all intercepts and quoted within the preliminary report is contained within the appendix. This information contain all sample data collected over the deposit.
	•	Other exploration data, if meaningful and material, should be reported including	•	All relevant geological, geophysical and geomorphological information
		(but not limited to): geological observations; geophysical survey results;		collected over the Mahefadok prospect has been discussed within the main
		geochemical survey results; bulk samples – size and method of treatment;		headers of the report.
		metallurgical test results; bulk density, groundwater, geotechnical and rock	•	Density measurements from trenches and pits were completed where graphite
		characteristics; potential deleterious or contaminating substances.		mineralisation was observed. This included the use of a steel cylinder (with a
				known volume) to collect material. After the material is weighed, the density is
				calculated (density = weight of material / volume of the cylinder). Densities
				varied between 1.58 and 2.10 gcm3 (with an average of 1.89 gcm3).
			•	For the ground magnetic survey a Geotron G5 magnetometer was used and
Other				readings were recorded every 10 m in nanotesla (nT). A base station was set-
substantive				up using a second Geotron G5 magnetometer and readings were recorded
exploration				every 30 seconds in nT. Diurnal drift corrections were completed using
data				Geotron Dump G5 software.
			•	The corrected ground magnetic data were processed (including, gridding,
				filtering, and contouring) using Encom DiscoverTM (v12) software. The
				processing methodology involved gridding the diurnally corrected data using
				the Inverse Distance Weighting (IDW2) interpolation algorithm (to the power of
				2), a search distance of 200 m and a spatial resolution / cell size of 5 m. Filtering
				involved the application of a 3x3 cell averaging filter and contouring was at an
				interval of 25 m.
			•	Further and more comprehensive analysis will be completed during a feasibility
				study.
	•	The nature and scale of planned further work (e.g. tests for lateral extensions	•	A diamond drilling program is in the process of being planned to progress
		or depth extensions or large-scale step-out drilling).		Mineral Resource, Reserve and Feasibility Studies, which include but not
Further work				limited to further Geophysical, Geotechnical and Geometallurgical Studies,
	•	Diagrams clearly highlighting the areas of possible extensions, including the		Groundwater and Environmental studies, Mine Planning and Scheduling.
		main geological interpretations and future drilling areas, provided this	•	Based on the synthesis of data from the initial exploration activities, the aim of

Page 17 of 23

BASS Metals – ASX Announcement

Criteria	JORC Code explanation	Commentary	Commentary
	information is not commercially sensitive.		the next round of exploration is to produce a Mineral Resource on the already
			identified mineralisation at the Mahefadok prospect.
		•	Once this work has been completed further exploration initiatives will be
			implemented to look at increasing the size of the Resources.

Section 3 Estimation and Reporting of Mineral Resources

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

No Mineral Resources have been quoted or published within this Scoping report, however some geological modeling and follow up work has been completed and is quoted herein

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
	•	Measures taken to ensure that data has not been corrupted by, for example,	•	A Microsoft Excel database is used as the secure form of data storage for the
		transcription or keying errors, between its initial collection and its use for		Mahefadok Exploration data. The master database is located in a password-
		Mineral Resource estimation purposes.		protected folder on the Office server at the Loharano Operation, Madagascar,
				and a second offsite database is kept at the offices of Vato Consulting,
	•	Data validation procedures used.		Antananarivo. Peripheral users have read-only access to this database.
			•	It is considered by the Company that industry best practice methods have since
				this date been implemented by the company at all stages of exploration. All
				work completed by StratMin and Vato Consulting personnel was verified and
Database integrity			•	validate by Vato Consulting and an external consultant from Signature Gold Limited to be well in line or better than industry standard practice. All data initially collected on paper logging sheets to create an audit trail is then
				entered into spreadsheets and validated by internal and external consultants.
				All paper log sheets are scanned, and electronic spreadsheets stored together
				with the photographs of the intersections or geological features logged.
			•	The master collar, lithology and assay database with all photographs are
				backed-up and stored on an external hard drive.
			•	During the validation process, a total of 4 samples were identified as being
				incorrectly entered, and another 4 samples were identified where GC values
				were reported slightly higher that TC values. The laboratory investigated, re-
				analysed,corrected and re-issued these results that were validated and

Page 18 of 23

BASS Metals – ASX Announcement

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				identified as being appropriate.
	•	Comment on any site visits undertaken by the Competent Person and the	•	Mr Jannie Leeuwner a full time employee of Vato Consulting. Mr Leeuwner
		outcome of those visits.		was responsible for exploration activities and data capture, maintenance and
				management of the Mahefadok Exploration database. Mr Leeuwner a co-
	•	If no site visits have been undertaken indicate why this is the case.		author and Competent Person of this report.
Site visits			•	Mr Jonathan Robbeson, co-author of this report is a full time employee of Signature Gold Limited. Mr Robbeson verified, validated and interpreted the
				exploration data and results from the activities completed at Mahefadok. Mr
				Robbeson has to date not been to the Mahefadok Site, but has the relevant
				experience in the field and styles of deposit to be considered a Competent
				Person.
	•	Confidence in (or conversely, the uncertainty of) the geological interpretation	•	The Flake Graphite Mineralisation hosted with the weathered regolith profile at
		of the mineral deposit.		Mahefadok has been mapped, pitted and trenched at approximately 50-100m
				intersections along strike (for near 1.5km) and 10-20m intervals for 150m
	•	Nature of the data used and of any assumptions made.		perpendicular to strike. In over 80% of the cases mineralisation was defined
				within the Pedolith and Saprolith profile and continuity of the said mineralised
	•	The effect, if any, of alternative interpretations on Mineral Resource estimation.	•	horizons have been proved through most of the deposit. Pitting, trenching, mapping, geophysical, geochemical, satellite etc… data has
	•	The use of geology in guiding and controlling Mineral Resource estimation.		been used to collate information on the mineralisation at the Mahefadok prospect.
Geological interpretation	•	The factors affecting continuity both of grade and geology.	• •	Mineralisation is found within 2 distinct zones at the Mahefadok Deposit (Zone 1 to the north and Zone 2 to the south). Within each of the mineralised zones, grades vary between the distinct layers of the weathering profile and seem to become richer the deeper one moves
				through the profile. Each of the Regolith layers that contain Flake Graphite
				Mineralisation have been wireframes separately and any resource estimation
				that will be completed will be done so using samples that are “Hard Coded” to
				those geology domains only.
			•	The main “Hard Rock” mineralizing host (Graphitic Gneiss), has been mapped
				as outcrop around the area, but no drilling has yet been completed to validate
				the continuity and grade of this horizon. Again, samples from drilling that
				intersects this horizon will be hard coded by geology during the estimation
				procedures.
			•	No Mineral Resource has been produced for the Mahefadok “Regolith-Hosted”
				or Hard Rock” mineralisation to date,but the information contained herein

Page 19 of 23

BASS Metals – ASX Announcement

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				forms the precursor to this work that will be completed in due course.
	•	The extent and variability of the Mineral Resource expressed as length (along	•	The geological wireframes depicting the Regolith-Hosted Flake Graphite
		strike or otherwise), plan width, and depth below surface to the upper and		Mineralisation at Mahefadok have been trenches, pitted, sampled over a strike
		lower limits of the Mineral Resource.		length of approximately 1.5km and 150m perpendicular to strike.
			•	The Regolith-Hosted flake graphite mineralisation has been trenched to a
				maximum of 6m below surface and continues at depth and has not been closed
Dimensions			•	off with drilling data as of yet. The assessment of the Loharano mine mineralisation (same style and
				mineralizing host) some 1km to the north of the Mahefadok has drilled
				intersection of Regolith-Hosted Mineralisation to +20m depth in some areas. It
				is assumed where the regolith profile reaches these depths at Mahefadok
				mineralisation may still persist. This can and will only be tested with follow up
				drilling during the next stage of exploration at Mahefadok.
	•	The nature and appropriateness of the estimation technique(s) applied and key	•	No Mineral Resource Estimation has been completed on the Mahefadok
		assumptions, including treatment of extreme grade values, domaining,		Regolith-Hosted Flake Graphite Deposit to date.
		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.	•	Only once further drilling, geochemical, geometallurgical and geological data is available will Mineral Resource studies be able to be commenced at the Deposit.
	•	The availability of check estimates, previous estimates and/or mine production	•	From available data check estimates and estimation strategies at the Loharano Mineral Resource can be cross checked with those proposed at Mahefadok.
		records and whether the Mineral Resource estimate takes appropriate account		The reliability of these can also be cross referenced with mining and
Estimation and modelling techniques	•	of such data. The assumptions made regarding recovery of by-products.	• •	reconciliation data available for this operation. Recovery would be assumed to be +70% based on the records available from the Loharano Operation. All samples are assayed for Sulphur, and estimation of Sulphur will be
	•	Estimation of deleterious elements or other non-grade variables of economic		completed during the Mineral Resource estimate.
		significance (eg sulphur for acid mine drainage characterisation).	•	A block model of the Mahefadok Regolith-Hosted Flake Graphite Deposit was
	•	In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.		created to ascertain the tonnage of the already defined mineralisation at the prospect – No grade estimation was completed as no representative drilling is available.
			•	Parent and sub-cell sizes used are defined below and geological wireframes
	•	Any assumptions behind modelling of selective mining units.		representing the mineralised regolith horizons were blocked out using v9.1
				VulcanTM Software.
	•	Anyassumptions about correlation between variables.		 10m(x),24m(y)and 2m(z)– Parent Cells

Page 20 of 23

BASS Metals – ASX Announcement

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				 1.25m (x), 3m (y) and 0.25m (z) – Sub-cells
	•	Description of how the geological interpretation was used to control the
		resource estimates.	•	All blocking routines were constrained by the geological wireframes of the
				Regolith Profiles.
	•	Discussion of basis for using or not using grade cutting or capping.	•	No Grade estimation has been completed so no grade cut-off values and
				boundary analysis or validation of estimation parameters, block sizes, KNA,
	•	The process of validation, the checking process used, the comparison of model		reconciliations, etc… have been completed to date.
		data to drill hole data, and use of reconciliationdataifavailable.
	•	Whether the tonnages are estimated on a dry basis or with natural moisture,	•	Tonnages are estimated on a wet basis based off density analysis completed
		and the method of determination of the moisture content.		over the domains hosting flake graphite mineralisation.
			•	Density measurements from trenches and pits were completed in the
				geological domains where graphite mineralisation was observed. This included
				the use of a steel cylinder (with a known volume) to collect material. After the
Moisture				material is weighed, the density is calculated (density = weight of material /
				volume of the cylinder). Densities varied between 1.58 and 2.10 gcm3 (with an
				average of 1.89 gcm3).
			•	No Dry density calculations have been completed, but it is understood that
				moisture content varies throughout the regolith profile depending on the height
				of the water table in the region.
	•	The basis of the adopted cut-off grade(s) or quality parameters applied.	•	No grade estimation has been completed to date, so no cut-off grade analysis
Cut-off parameters			•	has been completed. Cut-off grades will be determined during the Mineral Reserve studies for the operation based on various modifying factors as the reserve and Life of Mine
				schedule is developed.
	•	Assumptions made regarding possible mining methods, minimum mining	•	The Mahefadok Deposit will be mined by conventional open cut mining
		dimensions and internal (or, if applicable, external) mining dilution. It is always		methods. The deposit will be mined sequentially from North to South. Normal
		necessary as part of the process of determining reasonable prospects for		dig and haul mining equipment such as excavators and trucks will mine the
Mining factors or assumptions		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	•	deposit sequentially. No drill and blasting is required as no “cap-rock” is present above the Regolith- Hosted Flake Graphite Mineralisation, a simple clear and grub with a dozer is required to open up the orebody, with top soil stockpiled in windrows less than
		assumptions made.		3m high and used during later rehabilitation works. Overburden/ waste is then
				stripped off and stockpiled separately, while the ore is mined, and transported,
				and stockpiles at the processing plant.
			•	Based on field trenching and pitting observations and the degree of weathering

Page 21 of 23

BASS Metals – ASX Announcement

Criteria JORC Code explanation Commentary	⁰
observed in the field 5m benches with 50-60 implemented as minimum practice. This should be confirmed with a geotechnical assessment during feasibility studies.
Metallurgical factors or assumptions • The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made. • No geometallurgical studies have been completed to date from ores at the Mahefadok Deposit. • A normal communition and flotation circuit is currently used at the Loharano operation and it is assumed that similar operation will be needed for the Mahefadok ores.
Environmental factors or assumptions • Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with anexplanationofthe environmentalassumptionsmade. • A constant rehabilitation mining technique will be implemented once the conventional open pit has progressed for enough to start stockpiling waste rock back into the open voids created by mining. This area should then be covered with topsoil from pervious clearing and grubbing activities. • Little to no AMD is predicted for the operation however NAPP testing will be completed on ores and waste rock better understand this. • All noise dust, odour, surface water, groundwater studies should be completed during the feasibility studies.
Bulk density • Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples. • 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. • Discuss assumptions for bulk density estimates used in the evaluation process of the different materials. • Density measurements from trenches and pits were completed in the geological domains where graphite mineralisation was observed. This included the use of a steel cylinder (with a known volume) to collect material. After the material is weighed, the density is calculated (density = weight of material / volume of the cylinder). Densities varied between 1.58 and 2.10 gcm3 (with an average of 1.89 gcm3). • Further density and relative density measurements will be taken throughout the following exploration campaigns to better understand variability throughout the deposit
Classification • The basis for the classification of the Mineral Resources into varying confidence categories. • 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). • No Mineral Resource has been produced to date for the Mahefadok Regolith- Hosted Flake Graphite Deposit and classification studies will be completed at a later date.

Page 22 of 23

BASS Metals – ASX Announcement

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
	•	Whether the result appropriately reflects the Competent Person’s view of the
		deposit.
Audits or reviews	•	The results of any audits or reviews of Mineral Resource estimates.	•	No Mineral Resource has been produced to date for the Mahefadok Regolith- Hosted Flake Graphite Deposit and prior to release of this information an independent expert will contracted to review the information
	•	Where appropriate a statement of the relative accuracy and confidence level	•	No Mineral Resource has been produced to date for the Mahefadok Regolith-
		in the Mineral Resource estimate using an approach or procedure deemed		Hosted Flake Graphite Deposit.
		appropriate by the Competent Person. For example, the application of	•	When the Mineral resource is produced, all available best management
		statistical or geostatistical procedures to quantify the relative accuracy of the		practices will be used to assess the accuracy and confidence of the estimate.
		resource within stated confidence limits, or, if such an approach is not deemed
Discussion of		appropriate, a qualitative discussion of the factors that could affect the relative
relative		accuracy and confidence of the estimate.
accuracy/
confidence	•	The statement should specify whether it relates to global or local estimates,
		and, if local, state the relevant tonnages, which should be relevant to technical
		and economic evaluation. Documentation should include assumptions made
		and the procedures used.
	•	These statements of relative accuracy and confidence of the estimate should
		be comparedwithproductiondata,where available.

Section 4 Estimation and Reporting of Ore Reserves

No Ore Reserves have been detailed within this report and will depend on the results of the Feasibility Study to be conducted on the Mahefadok Saprolite-Hosted Flake Graphite Deposit

Page 23 of 23

BASS Metals – ASX Announcement