HAWK RESOURCES LIMITED. — Capital/Financing Update 2018

Aug 29, 2018

ASX ANNOUNCEMENT 30 August 2018

Revised Drilling at Accrington intersects thick copper-zinc mineralisation (with cross section)

HIGHLIGHTS

• Drilling at FR18-004 has intersected copper-zinc mineralisation from 196m to 296m

• Copper-zinc bearing garnet skarns are interpreted to continue across a total strike length of more than 1000m towards Accrington East where extensive copper-zinc skarns have been mapped and sampled at surface

• FR18-004 is the first of several planned drill holes to test extensive copper bearing garnet skarns at Accrington with permits expected soon for additional drill holes within the broader Accrington skarn

• FR18-003 (previously called ALIM003) which was drilled to test a coincident chargeability and resistivity anomaly (Perseverance) has been completed having intersected 66m of copper-zinc mineralisation within skarn from surface and trace chalcopyrite and pyrite mineralisation to 804m whereafter trace to 1% pyrite was encountered to the end of the hole at 1016m

• Assays for FR18-004 are expected in 3-4 weeks with results previous drill holes due in coming weeks.

Alderan Resources Limited (ASX: AL8) is pleased to provide an update on drilling and activities at Frisco where drill hole FR18-004 has intersected a wide interval of copper-zinc mineralisation.

FR18-004 is the first of several drill holes focused on demonstrating the continuity and thickness of mineralisation across Accrington where the Company has identified potential for a large-tonnage copper-zinc skarn (with silver-gold credits). Drilling has commenced on private (patented) land with additional drilling of outcropping mineralised garnet skarns at Accrington East (located on Federally managed claims) currently subject to a separate permitting program.

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Figure 1: Drill core from FR18-004 with abundant sulphides comprising chalcopyrite (a copper sulphide mineral comprising 34.63% copper) mineralisation within skarn at 282.3m.

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ASX ANNOUNCEMENT 30 August 2018

Planning is also well underway for additional drilling across the broader Accrington skarn, to be undertaken on private (patented) land. Accrington displays extensive historical small scale mining activity away from the copper-zinc bearing garnet skarns. The Company believes that further thick copper-zinc bearing garnet skarns and/or precious metal dominant styles of mineralisation are likely within these areas.

Hole FR18-004 was the first hole drilled following the completion of the access road, from the top of the quartzite ridge, which overlies part of the copper bearing garnet skarn at Accrington. Drilling intersected quartzite and weakly mineralised hornfels to 196m before entering stronger mineralised skarn comprising chalcopyrite (a copper mineral) and sphalerite (a zinc mineral) with minor pyrite. Mineralisation was intersected from 196.6m to 296.45m which included a zone between 202.9m and 277.2m containing an estimated 1-3% chalcopyrite and 1-2% sphalerite. Cactus stock intrusive was intersected at 296.45m. The hole was terminated at 362.18m.

A further 66.15m of mineralised skarn was also intersected from surface in hole FR18-003 with 0.5-1% chalcopyrite and minor sphalerite. A 6m zone of mineralised skarn containing 2% chalcopyrite was intersected from 178.8m.

Drilling has commenced on hole FR18-005, which is targeting the eastern limb of the syncline where the Company expects to encounter a continuation of the copper-zinc bearing skarns already intersected in FR18-004.

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Figure 2: Drill core from FR18-004 showing chalcopyrite within brecciated skarn at 211.8m.

FR18-003 (previously called ALIM003) was designed to test the large Perseverance chargeability and coincident resistivity anomaly (refer to announcement “Drilling Commences on Large Copper Skarn & Porphyry Targets” 18 June 2018). The hole intersected skarn (0m to 66.15 and 178.8 to 184.8m) and monzonite intrusive from 66.15 to 178.8m and from 184.4m to end of hole at 1016.3m. Trace chalcopyrite occurs as very fine-grained disseminated mineralisation within the Cactus stock monzonite intrusive up to 804m., whereafter chalcopyrite is absent. Pyrite mineralisation occurs as disseminations and patches up to several percent often associated with shear zones within the weakly chlorite altered monzonite Cactus stock intrusive. From 844m to the end of the hole at

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ASX ANNOUNCEMENT 30 August 2018

1016.3m pyrite increases to 1%. No discernable change in the geology was encountered to account for the modeled increase in resistivity at depth. Following the completion of drilling on FR18-004, the Company has demobilised the Boart Longyear drill rig. Major Drilling are continuing on FR18-005.

The Company is in the process of interpreting results from FR18-003 and the significance of the pyrite mineralisation in the context of the larger Perseverance prospect. The Company’s focus will be on the large Accrington skarn for the forseeable future. Future work at Perseverance and Cactus is likely to be focused on the northern half of Perseverance where outcropping tourmaline breccia has been mapped coincident with a large zone of demagnetisation. Historical drilling by AMAX alongside this magnetic low intersected tourmaline-chalcopyrite breccia, indicating that the magnetic low and chargeability may be related to a large mineralised breccia.

Geological observations and visual estimates of sulphide abundances for FR18-001 and FR18003 (previously described as ALIM001 and ALIM003) and FR18-004 are shown in Table 1 below. Drill hole locations are shown in Table 2 below.

Table 1: Summary of geological observations and estimations of chalcopyrite and pyrite sulphide abundance in FR18-003 and FR18-004.

Hole ID	From [m]	To [m]	Lithology	Description of mineralisation	Estimated1 sulphide abundance [%]	Estimated1 sulphide abundance [%]	Estimated1 sulphide abundance [%]
					Chalcopyrite (34.6% Cu)	Sphalerite (50-60% Zn)	Pyrite
FR18-001 (ALIM001)	0	11.2	Skarn	Patchy	0.5-1%	0	4%
	11.2	13.8	Intrusive	Fracture Fill	0.01%	0	0.01%
	13.8	308.5	Intrusive	N/A	0	0	0
FR18-003 (ALIM003)	0	12.1	Skarn	Dissemintated	0	0.5%	2%
	12.1	23.72	Skarn	Patchy disseminations	0.5%	0.5%	1%
	23.72	37.4	Skarn	Disseminated	0%	0	0.5%
	37.4	66.15	Skarn	Coarse Aggregates	0.5-1%	0	0.5%
	66.15	178.88	Intrusive	Fracture fill and veins	0-0.2%	0	00.2%
	178.88	184.80	Skarn	Veins	1-2%	0	0
	184.80	804	Intrusive	Disseminated, veins	0-0.5%	0	0.01-0.5%
	804	824	Intrusive/ Fault	Fracture fill, disseminations	0	0	Up to 20%
	824	1016.3	Intrusive	Fracture fill, veins	0	0	0.1-1%
FR18-004	0	89.60	Quartzite	Disseminated, fracture fill	0	0	0.01%
	89.60	196.6	Hornfels	Patchy, fracture fill	0.05%	0	0.01%
	196.6	277.2	Skarn	Disseminated, coarse aggregates	1-3%	1-2%	0.01%
	277.2	296.45	Skarn	Disseminated, patchy	0.5-1%	0.5%	0.2%
	296.45	362.18	Intrusive	Disseminated, veins	0.01%	0	0.1%

Notes:

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ASX ANNOUNCEMENT 30 August 2018

1. Visual estimates are not precise, acurate, or repeatable with significant variability in these estimates dependent on variable sulphide grain size (e.g. very fine, fine, medium, or coarse-grained), sample type, gangue minerals or the individual geollgist making the observations. Laboratory assay results are required to determine the widths and grades of the visible copper sulphides reported in preliminary geological logging

2. Reported mineralisation is quoted in downhole depths. True width may be less than downhole intercept width (apparent width), and insufficient work has been completed to enable accurate calculation of true widths.

Alderan looks forward to progresssively updating investors in coming weeks or months as results come to hand.

About Accrington

The Accrington prospect is a large mineralised skarn occuring across approximately 4km by 2km and host to numerous historical mines and workings. The principal focus within Accrington are the thick copper-zinc bearing garnet skarns which outcrop at Accrington East and continue underneath a syncline before outcropping again at the Imperial Mine, a distance of over 1km.

The current drill program aims to test an area of approximately 700m by up to 300m to a depth of between 300-500m from drill pads located on patented claims. Further extensive outcropping copper bearing skarns occur on adjoining federally managed claims held by the Company. Work is currently being undertaken to permit a second stage of drilling on these claims (see Figure 3).

Copper mineralisation appears to be strongest within favourable carbonate units which may have a thickness of between 50-100m each within the upper exposed copper bearing units. Regional mapping by previous explorers indicates the entire carbonate sedimentary sequence at Accrington may be much thicker than indicated at surface, which suggests significant potential for further mineralisation at depth. Numerous intrusions into the carbonate sequence suggest the thickness and localisation of mineralised skarns may vary across Accrington.

The prospectivity of this area is illustrated by extensive outcropping copper-bearing skarns at Accrington East in particular, some of which were intersected during the building of the Upper Imperial Road, exposing fresh outcrop over at least 50m of variably mineralised, stratiform skarn, with copper mineralisation indicated by malachite staining and chalcopyrite (as previously announced to the ASX on 13 July 2018). The whole length of the outcrop has been sampled. Assay results are expected in August.

Table 2: Drillhole Location Details.

Target	Drillhole ID	Easting	Northing	Dip	Azimuth	Depth (m)	Drill Type
Perseverance	FR18-001 (ALIM001)	300094	4259683	-60	360	308.5	Diamond
	FR18-002	Not utilised/abandoned
Perseverance	FR18-003 (ALIM003)	300042	4259614	-61	351	1016.3	Diamond
Accrington	FR18-004	300375	4259528	-55	290	362.18	Diamond

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ASX ANNOUNCEMENT 30 August 2018

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Figure 3: Geological plan of the Imperial to Accrington East Skarn Area also showing Alderan rock sample results. The area is interpreted to be a large, asymmetrical gently dipping syncline with similar rock units outcropping at Imperial and Accrington East[1] .

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ASX ANNOUNCEMENT 30 August 2018

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Figure 2: Cross Section through the Accrington skarn showing mineralised intercepts in FR18-003 and FR18-004 which intersected the Upper Garnet Skarn. Mineralisation is expected to continue within the Upper Garnet Skarn to Accrington East where mineralisation crops out at surface. The Lower Garnet Skarn was not intersected in FR18-005 but crops out at surface at Accrington East and is expected to be intersected in coming drill holes.

1 For further details of exploration results, please refer to the Prospectus published on 8 June 2017

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ASX ANNOUNCEMENT 30 August 2018

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Figure 4: Current and planned drill pad locations and roads for Accrington with completed and in-progress drill holes shown.

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ASX ANNOUNCEMENT 30 August 2018

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Figure : Accrington skarn with historical mining activity (shafts, adits, prospect pits).

• • • Ends - - -

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ASX ANNOUNCEMENT 30 August 2018

ALDERAN RESOURCES LIMITED

Ground Floor, 16 Ord Street, West Perth, 6005, WA

www.alderanresources.com.au

For further information:

e: info@alderanresources.com.au p: +61 8 9482 0560 ABN: 55 165 079 201

Please direct enquiries to:

Christopher Wanless Chief Executive Officer

info@alderanresources.com.au

Stay Connected

Interested investors and shareholders are encouraged to subscribe to the Company’s social media channels using the links below:

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Competent Persons Statement

The information in this presentation that relates to exploration targets, or exploration results is based on information compiled by {John Schloderer, a competent person who is a member of the Australian Institute of Geoscientists (AIG). John Schloderer} is the Exploration Manager of Alderan Resources Limited. {insert name} has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 edition of the JORC Code (JORC Code). John Schloderer consents to the inclusion of this information in the form and context in which it appears.

Mr {John Schloderer confirms that that the information provided in this announcement provided under ASX Listing Rules Chapter 5.12.2 to 5.12.7 is an accurate representation of the available data and studies for the proposed exploration programmes that relate to this “material mining project”.

Forward Looking Statement

Statements contained in this release, particularly those regarding possible or assumed future performance, costs, dividends, production levels or rates, prices, resources, reserves or potential growth of Alderan Resources Limited, are, or may be, forward looking statements. Such statements relate to future events and expectations and, as such, involve known and unknown risks and uncertainties. Actual results and developments may differ materially from those expressed or implied by these forward-looking statements depending on a variety of factors.

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

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

	Criteria	JORC Code explanation	Commentary
	Sampling	• Nature and quality of sampling (eg cut channels, random chips, or	• This release refers to drilling progress of holes FR18-001, FR18-003,
	techniques	specific specialised industry standard measurement tools appropriate	FR18-004 (completed); and visual assessments of geology only. No
		to the minerals under investigation, such as down hole gamma	sampling or assaying has taken place.
		sondes, or handheld XRF instruments, etc). These examples should	• Mineralisation is determined by the presence of sulphide minerals as
		not be taken as limiting the broad meaning of sampling.	logged by a qualified geologist. Chalcopyrite is identified as the
		• Include reference to measures taken to ensure sample representivity	mineral of economic interest in FR18-001 and FR18-003 and
		and the appropriate calibration of any measurement tools or systems	chalcopyrite and sphalerite is identified as the mineral of economic
		used.	interst in FR18-004.
		• 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	• Drilling is by diamond core of HQ (61mm) diameter, FR18-001 and
	techniques	blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple	FR18-003 used triple tube splits and TruCore orientation device.
		or standard tube, depth of diamond tails, face-sampling bit or other	FR18-004 used standard tube and the Reflex ACT II orientation
		type, whether core is oriented and if so, by what method, etc).	device.
			• The Trucore and ACT II device requires competent core at the core
			lifter in order to result in a useable orientation line. Sections of core
			which are broken results in limited or no oriented core in these
			intervals.
	Drill sample	• Method of recording and assessing core and chip sample recoveries	• Core is measured by a qualified geologist using downhole marking
	recovery	and results assessed.	blocks placed by the driller. Zones of cave or fill are assessed by
		• Measures taken to maximise sample recovery and ensure	competence, texture and geologic relationship to surrounding rock, as
	BOARD AND MANAGEMENT **Nicolaus Heinen	Non-executive Chairman Christopher Wanless	Chief Executive Officer Bruno Hegner
	**John Schloderer	**Exploration Manager

Criteria			JORC Code explanation	Commentary
				• FR18-003 – Casing depth is 3m. Average core recovery is 96.5%.
				• FR18-004 – Casing depth is 2.80m. Average core recovery is 93.1%.
				• No assays are reported, so no relationship between core recovery
				and grade has yet been established.
Logging			• Whether core and chip samples have been geologically and	• All core has been geologically logged to a level of detail to support
			geotechnically logged to a level of detail to support appropriate	future geological modelling and resource estimation.
			Mineral Resource estimation, mining studies and metallurgical	• All logging is qualitative with visual estimates of various
			studies.	characteristics conducted by a qualified geologist.
			• Whether logging is qualitative or quantitative in nature. Core (or	• All core is photographed by DMT Corescan and photographs
			costean, channel, etc) photography.	recorded in a proprietary database.
			• The total length and percentage of the relevant intersections logged.
Sub-			• If core, whether cut or sawn and whether quarter, half or all core	• No sampling has taken place
sampling			taken.
techniques			• If non-core, whether riffled, tube sampled, rotary split, etc and
and sample			whether sampled wet or dry.
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 representivity of samples.
			• Measures taken to ensure that the sampling is representative of the in
			situ material collected, including for instance results for field
			duplicate/second-half sampling.
			• Whether sample sizes are appropriate to the grain size of the material
			being sampled.
Quality		of	• The nature, quality and appropriateness of the assaying and	• No sampling has taken place
assay	data		laboratory procedures used and whether the technique is considered
and			partial or total.
laboratory			• For geophysical tools, spectrometers, handheld XRF instruments, etc,
tests			the parameters used in determining the analysis including instrument
			make and model, reading times, calibrations factors applied and their
			derivation, etc.
			• Nature of quality control procedures adopted (eg standards, blanks,
			duplicates, external laboratory checks) and whether acceptable levels
			of accuracy (ie lack of bias) and precision have been established.
Verification		of	• The verification of significant intersections by either independent or	• No sampling has taken place
BOARD AND MANAGEMENT **Nicolaus Heinen	Non-executive Chairman Christopher Wanless	Chief Executive Officer ~~Bruno Hegner	~~~~_Director & Chief Op_erating Officer~~ Tom Eadie	Non-executive Director Brett Tucker
**John Schloderer	**Exploration Manager

Criteria		JORC Code explanation	Commentary
		• Discuss any adjustment to assay data.
Location	of	• Accuracy and quality of surveys used to locate drill holes (collar and	• Collar locations are set with handheld GPS with a positional accuracy
data points		down-hole surveys), trenches, mine workings and other locations	of +/3m. Upon completion of drilling, collar locations will be surveyed
		used in Mineral Resource estimation.	with DGPS to a positional accuracy of +/-0.1m, to be conducted by a
		• Specification of the grid system used.	licensed surveyor.
		• Quality and adequacy of topographic control.	• Progress downhole surveys are conducted by Boart Longyear and
			Major Drilling personnel at 30m intervals using a Reflex EZshot single
			shot magnetic survey tool.
			• Grid coordinate system is WGS84 Zone 12, UTM (m) units.
			• Upon completion of drilling, topographic control will be provided by
			DGPS to a positional accuracy of +/-0.1m, to be conducted by a
			licensed surveyor.
Data spacing		• Data spacing for reporting of Exploration Results.	• At this early exploration stage, the data spacing is variable as the
and		• Whether the data spacing and distribution is sufficient to establish the	focus is on identifying new zones of mineralisation.
distribution		degree of geological and grade continuity appropriate for the Mineral	• Reconnaissance drilling only, no resource estimation being
		Resource and Ore Reserve estimation procedure(s) and	undertaken at this time.
		classifications applied.	• No sample compositing is applied. No sampling is reported
		• Whether sample compositing has been applied.
Orientation	of	• Whether the orientation of sampling achieves unbiased sampling of	• FR18-001 Orientation of 360/-60 intersects the intrusive body at an
data	in	possible structures and the extent to which this is known, considering	unbiased angle.
relation	to	the deposit type.	• FR18-003 Orientation of 360/-62 intersects the intrusive body at an
geological		• If the relationship between the drilling orientation and the orientation	unbiased angle.
structure		of key mineralised structures is considered to have introduced a	• FR18-004 Orientation of 290/-55 intersects the potentially statigraphy
		sampling bias, this should be assessed and reported if material.	controlled skarn at as near a true angle as possible.
			• Insufficient data exists to properly asses degree of structural control
			or True Width.
Sample		• The measures taken to ensure sample security.	• No sampling has taken place
security
Audits	or	• The results of any audits or reviews of sampling techniques and data.	• No external audits have been undertaken. These would be part of
reviews			future resource estimation work.

Section 2 Reporting of Exploration Results

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

Criteria BOARD AND MANAGEMENT JORC Code explanation MARKET DATA Commentary ~~Nicolaus Heinen |~~ ~~Non-executive Chairman ASX Code: AL8~~ Mineral Christopher Wanless| • Chief Executive Officer Type, reference name/number, location and ownership including Share Price: $0.49 • The Frisco Prospect comprises 275 patented and 252 unpatented te Br n u e no m H e eg nt ner | Director a&greements or material issues with third Chief Op erating Officer ~~Shares on Issue: 112,963,908~~ parties such as joint claims, which are governed by the Horn, Cactus and Northern

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Criteria	JORC Code explanation	Commentary
and	land ventures, partnerships, overriding royalties, native title interests,	Carbonate lease agreements entered into with the private landowner,
tenure status historical sites, wilderness or national park and environmental		Horn Silver Mines Inc.
	settings.	• The Horn and Cactus lease agreements grant Alderan all rights to
	• The security of the tenure held at the time of reporting along with any	access the property and to explore for and mine minerals, subject to
	known impediments to obtaining a licence to operate in the area.	a retained royalty of 3% to the landholder. Alderan holds options to
		reduce the royalty to 1% and to purchase the 231 patented claims.
		• The Northern Carbonate Lease grants Alderan with all rights to
		access the property and to explore for and mine minerals, subject to
		a retained royalty of 3% to the landholder. Alderan holds options to
		reduce the royalty to 1% and to purchase the 231 patented claims.
		• Alderan was in full compliance with both lease agreements and all
		claims were in good standing at the time of reporting.
Exploration • Acknowledgment and appraisal of exploration by other parties.		• A large amount of historical exploration has been carried out by
done by other		numerous different parties dating back to the 1800’s.
parties		• Historical mining records including level plans and production records
		exist for the period between 1905 and 1915 when the vast majority of
		production occurred
		• Historical drilling has been carried out by multiple parties including
		Anaconda Company, Rosario Exploration Company, Amax
		Exploration and Western Utah Copper Corporation/Palladon Ventures
		• Data has been acquired, digitized where indicated, and interpreted by
		Alderan.
Geology	• Deposit type, geological setting and style of mineralisation.	• Porphyry style mineralised district with several expressions of
		mineralisation at surface, such as breccia pipes, skarns, structurally-
		hosted mineralisation, and manto style mineralised zones.
		• Part of the larger Laramide mineralising event.
		• Overprinted by Basin and Range tectonics.
Drill	hole • A summary of all information material to the understanding of the	• Details for hole FR18-001
Information exploration results including a tabulation of the following information		o Easting WGS84 Zn12 – 300094mE
	for all Material drill holes:	o Northing WGS84 Zn12 – 4259683nN
	o easting and northing of the drill hole collar	o Elevation - 2144m asl
	o elevation or RL (Reduced Level – elevation above sea level in	o Collar dip -60o, Azimuth 002o
	metres) of the drill hole collar	o Chalcopyrite mineralisation is noted from 0-13.8m
	o dip and azimuth of the hole	o Hole completed at 310.94m.
	o down hole length and interception depth	• Details for hole FR18-003
	o hole length.	o Easting WGS84 Zn12 – 300042mE
BOARD AND MANAGEMENT MARKET DATA • If the exclusion of this information is justified on the basis that the		o Northing WGS84 Zn12 – 4259614nN
**Nicolaus Heinen	**Non-executive Chairman ASX Code: AL8 information is not Material and this exclusion does not detract from
**Christopher Wanless	Chief Executive Officer Bruno Hegner	_Director & Chief Op_erating Officer ~~Tom Eadie
**John Schloderer	**Exploration Manager

Criteria		JORC Code explanation	Commentary
			• Details for hole FR18-004
			o Easting WGS84 Zn12 – 3000375mE
			o Northing WGS84 Zn12 – 4259528nN
			o Elevation - 2342m asl
			o Collar dip -55o, Azimuth 290o
			o Chalcopyrite mineralisation is noted from 77m downhole.
			o Hole completed at 362.18m.
Data		• In reporting Exploration Results, weighting averaging techniques,	• No sampling has taken place
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
		should be clearly stated.
Relationship		• These relationships are particularly important in the reporting of	• Reported mineralisation is quoted in downhole depths. True width
between		Exploration Results.	may be less than downhole intercept width (apparent width), and
mineralisatio		• If the geometry of the mineralisation with respect to the drill hole	insufficient work has been completed to enable accurate calculation
n widths and		angle is known, its nature should be reported.	of true widths.
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
		intercepts should be included for any significant discovery being
		reported These should include, but not be limited to a plan view of
		drill hole collar locations and appropriate sectional views.
Balanced		• Where comprehensive reporting of all Exploration Results is not	• No sampling has taken place
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	• Details of other exploration results are recorded in the Independent
substantive		including (but not limited to): geological observations; geophysical	Geologist’s Report, contained in the Prospectus and on the
exploration		survey results; geochemical survey results; bulk samples – size and	announcement dated 28 June 2017.
data		method of treatment; metallurgical test results; bulk density,
		groundwater, geotechnical and rock characteristics; potential
		deleterious or contaminating substances.
BOARD AND MANAGEMENT MARKET DATA Further work • The nature and scale of planned further work (eg tests for lateral			• Details of intended exploration activities are mentioned in the report
**Nicolaus Heinen	Non-executive Chairman Christopher Wanless	Chief Executive Officer ~~Bruno Hegner	~~~~_Director & Chief Op_erating Officer~~ Tom Eadie
**John Schloderer	**Exploration Manager

Criteria	JORC Code explanation	Commentary
	including the main geological interpretations and future drilling areas,	Report, contained in the Prospectus.
	provided this information is not commercially sensitive.

15

Section 3 Estimation and Reporting of Mineral Resources

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

	Criteria	JORC Code explanation	Commentary
	Database	• Measures taken to ensure that data has not been corrupted by, for	• No resource estimation has been undertaken
	integrity	example, transcription or keying errors, between its initial collection
		and its use for Mineral Resource estimation purposes.
		• Data validation procedures used.
	Site visits	• Comment on any site visits undertaken by the Competent Person and	•
		the outcome of those visits.
		• If no site visits have been undertaken indicate why this is the case.
	Geological	• Confidence in (or conversely, the uncertainty of ) the geological	•
	interpretation	interpretation of the mineral deposit.
		• Nature of the data used and of any assumptions made.
		• The effect, if any, of alternative interpretations on Mineral Resource
		estimation.
		• The use of geology in guiding and controlling Mineral Resource
		estimation.
		• The factors affecting continuity both of grade and geology.
	Dimensions	• The extent and variability of the Mineral Resource expressed as	•
		length (along strike or otherwise), plan width, and depth below
		surface to the upper and lower limits of the Mineral Resource.
	Estimation	• The nature and appropriateness of the estimation technique(s)	•
	and	applied and key assumptions, including treatment of extreme grade
	modelling	values, domaining, interpolation parameters and maximum distance
	techniques	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
		production records and whether the Mineral Resource estimate takes
		appropriate account of such data.
		• 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
		the average sample spacing and the search employed.
	BOARD AND MANAGEMENT **Nicolaus Heinen	Non-executive Chairman Christopher Wanless	Chief Executive Officer Bruno Hegner
	**John Schloderer	**Exploration Manager

Criteria		JORC Code explanation	Commentary
		• 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.
Moisture		• Whether the tonnages are estimated on a dry basis or with natural	•
		moisture, and the method of determination of the moisture content.
Cut-off		• The basis of the adopted cut-off grade(s) or quality parameters	•
parameters		applied.
Mining		• Assumptions made regarding possible mining methods, minimum	•
factors	or	mining dimensions and internal (or, if applicable, external) mining
assumptions		dilution. It is always necessary as part of the process of determining
		reasonable prospects for eventual economic extraction to consider
		potential mining methods, but the assumptions made regarding
		mining methods and parameters when estimating Mineral Resources
		may not always be rigorous. Where this is the case, this should be
		reported with an explanation of the basis of the mining assumptions
		made.
Metallurgical		• The basis for assumptions or predictions regarding metallurgical	•
factors	or	amenability. It is always necessary as part of the process of
assumptions		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.
Environmen-		• Assumptions made regarding possible waste and process residue	•
tal factors	or	disposal options. It is always necessary as part of the process of
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	•
		assumptions. If determined, the method used, whether wet or dry, the
BOARD AND MANAGEMENT MARKET DATA frequency of the measurements, the nature, size and
**Nicolaus Heinen	**		Non-executiveChairman ASX Code: AL8 repres ntat veness of the samples.
**Christopher Wanless	Chief Executive Officer ~~Bruno Hegner	~~~~_Director & Chief Op_erating Officer~~ Tom Eadie	Non-executive Director Brett Tucker	Company Secretary Peter Geerdts
**John Schloderer	**Exploration Manager

Criteria		JORC Code explanation	Commentary
		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.
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).
		• Whether the result appropriately reflects the Competent Person’s
		view of the deposit.
Audits	or	• The results of any audits or reviews of Mineral Resource estimates.	•
reviews
Discussion	of	• Where appropriate a statement of the relative accuracy and	•
relative		confidence level in the Mineral Resource estimate using an approach
accuracy/		or procedure deemed appropriate by the Competent Person. For
confidence		example, the application of statistical or geostatistical procedures to
		quantify the relative accuracy of the resource within stated confidence
		limits, or, if such an approach is not deemed appropriate, a qualitative
		discussion of the factors that could affect the relative accuracy and
		confidence of the estimate.
		• 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 compared with production data, where available.

18

Section 4 Estimation and Reporting of Ore Reserves

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

Criteria		JORC Code explanation	Commentary
Mineral		• Description of the Mineral Resource estimate used as a basis for the	• No resource estimation has been undertaken
Resource		conversion to an Ore Reserve.
estimate for		• Clear statement as to whether the Mineral Resources are reported
conversion	to	additional to, or inclusive of, the Ore Reserves.
Ore
Reserves
Site visits		• Comment on any site visits undertaken by the Competent Person and	•
		the outcome of those visits.
		• If no site visits have been undertaken indicate why this is the case.
Study status		• The type and level of study undertaken to enable Mineral Resources	•
		to be converted to Ore Reserves.
		• The Code requires that a study to at least Pre-Feasibility Study level
		has been undertaken to convert Mineral Resources to Ore Reserves.
		Such studies will have been carried out and will have determined a
		mine plan that is technically achievable and economically viable, and
		that material Modifying Factors have been considered.
Cut-off		• The basis of the cut-off grade(s) or quality parameters applied.	•
parameters
Mining		• The method and assumptions used as reported in the Pre-Feasibility	•
factors	or	or Feasibility Study to convert the Mineral Resource to an Ore
assumptions		Reserve (i.e. either by application of appropriate factors by
		optimisation or by preliminary or detailed design).
		• The choice, nature and appropriateness of the selected mining
		method(s) and other mining parameters including associated design
		issues such as pre-strip, access, etc.
		• The assumptions made regarding geotechnical parameters (eg pit
		slopes, stope sizes, etc), grade control and pre-production drilling.
		• The major assumptions made and Mineral Resource model used for
		pit and stope optimisation (if appropriate).
		• The mining dilution factors used.
		• The mining recovery factors used.
		• Any minimum mining widths used.
BOARD AND MANAGEMENT MARKET DATA • The manner in which Inferred Mineral Resources are utilised in
**Nicolaus Heinen	Non-executive Chairman Christopher Wanless	Chief Executive Office**r ASX Code: AL8 Share Price: $0.49 mining studies and the sensitivity of the outcome to their inclusion. • The infrastructur requirements of the selected mining methods.
**Bruno Hegner	_Director & Chief Op_erating Officer Tom Eadie	Non-executive Director Brett Tucker	Company Secretary Peter Geerdts
**John Schloderer	**Exploration Manager

Criteria	JORC Code explanation	Commentary
Metallurgical	• The metallurgical process proposed and the appropriateness of that	•
factors or	process to the style of mineralisation.
assumptions	• Whether the metallurgical process is well-tested technology or novel
	in nature.
	• The nature, amount and representativeness of metallurgical test work
	undertaken, the nature of the metallurgical domaining applied and the
	corresponding metallurgical recovery factors applied.
	• Any assumptions or allowances made for deleterious elements.
	• The existence of any bulk sample or pilot scale test work and the
	degree to which such samples are considered representative of the
	orebody as a whole.
	• For minerals that are defined by a specification, has the ore reserve
	estimation been based on the appropriate mineralogy to meet the
	specifications?
Environmen-	• The status of studies of potential environmental impacts of the mining	•
tal	and processing operation. Details of waste rock characterisation and
	the consideration of potential sites, status of design options
	considered and, where applicable, the status of approvals for process
	residue storage and waste dumps should be reported.
Infrastructure	• The existence of appropriate infrastructure: availability of land for	•
	plant development, power, water, transportation (particularly for bulk
	commodities), labour, accommodation; or the ease with which the
	infrastructure can be provided, or accessed.
Costs	• The derivation of, or assumptions made, regarding projected capital	•
	costs in the study.
	• The methodology used to estimate operating costs.
	• Allowances made for the content of deleterious elements.
	• The source of exchange rates used in the study.
	• Derivation of transportation charges.
	• The basis for forecasting or source of treatment and refining charges,
	penalties for failure to meet specification, etc.
	• The allowances made for royalties payable, both Government and
	private.
Revenue	• The derivation of, or assumptions made regarding revenue factors	•
factors	including head grade, metal or commodity price(s) exchange rates,
	transportation and treatment charges, penalties, net smelter returns,
	etc.
BOARD AND MANAGEMENT MARKET DATA • The derivation of assumptions made of metal or commodity price(s),
~~**Nicolaus Heinen	**~~	~~Non-executive Chairman~~ ~~ASX Code: AL8~~ for the principal metals, minerals and co-products.
**Christopher Wanless	**Chief Executive Officer Share Price: $0.49
**Bruno Hegner	_Director & Chief Op_erating Officer Tom Eadie	Non-executive Director Brett Tucker	Company Secretary Peter Geerdts
**John Schloderer	**Exploration Manager

Criteria		JORC Code explanation	Commentary
Market		• The demand, supply and stock situation for the particular commodity,	•
assessment		consumption trends and factors likely to affect supply and demand
		into the future.
		• A customer and competitor analysis along with the identification of
		likely market windows for the product.
		• Price and volume forecasts and the basis for these forecasts.
		• For industrial minerals the customer specification, testing and
		acceptance requirements prior to a supply contract.
Economic		• The inputs to the economic analysis to produce the net present value	•
		(NPV) in the study, the source and confidence of these economic
		inputs including estimated inflation, discount rate, etc.
		• NPV ranges and sensitivity to variations in the significant
		assumptions and inputs.
Social		• The status of agreements with key stakeholders and matters leading	•
		to social licence to operate.
Other		• To the extent relevant, the impact of the following on the project	•
		and/or on the estimation and classification of the Ore Reserves:
		• Any identified material naturally occurring risks.
		• The status of material legal agreements and marketing arrangements.
		• The status of governmental agreements and approvals critical to the
		viability of the project, such as mineral tenement status, and
		government and statutory approvals. There must be reasonable
		grounds to expect that all necessary Government approvals will be
		received within the timeframes anticipated in the Pre-Feasibility or
		Feasibility study. Highlight and discuss the materiality of any
		unresolved matter that is dependent on a third party on which
		extraction of the reserve is contingent.
Classification		• The basis for the classification of the Ore Reserves into varying	•
		confidence categories.
		• Whether the result appropriately reflects the Competent Person’s
		view of the deposit.
		• The proportion of Probable Ore Reserves that have been derived
		from Measured Mineral Resources (ifany).
Audits	or	• The results of any audits or reviews of Ore Reserve estimates.	•
reviews
Discussion	of	• Where appropriate a statement of the relative accuracy and	•
BOARD AND MANAGEMENT **Nicolaus Heinen	Non-executive Chairman Christopher Wanless	Chief Executive Officer Bruno Hegner	_Director & Chief Op_erating Officer Tom Eadie	Non-executive Director Brett Tucker
**John Schloderer	**Exploration Manager

Criteria	JORC Code explanation	Commentary
	limits, or, if such an approach is not deemed appropriate, a qualitative
	discussion of the factors which could affect the relative accuracy and
	confidence of the estimate.
	• The 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.
	• Accuracy and confidence discussions should extend to specific
	discussions of any applied Modifying Factors that may have a
	material impact on Ore Reserve viability, or for which there are
	remaining areas of uncertainty at the current study stage.
	• It is recognised that this may not be possible or appropriate in all
	circumstances. These statements of relative accuracy and confidence
	of the estimate should be compared with production data, where
	available.

22

Section 5 Estimation and Reporting of Diamonds and Other Gemstones

(Criteria listed in other relevant sections also apply to this section. Additional guidelines are available in the ‘Guidelines for the Reporting of Diamond Exploration Results’ issued by the Diamond Exploration Best Practices Committee established by the Canadian Institute of Mining, Metallurgy and Petroleum.)

Criteria			JORC Code explanation	Commentary
Indicator			• Reports of indicator minerals, such as chemically/physically	• No resource estimation has been undertaken
minerals			distinctive garnet, ilmenite, chrome spinel and chrome diopside,
			should be prepared by a suitably qualified laboratory.
Source	of		• Details of the form, shape, size and colour of the diamonds and the	•
diamonds			nature of the source of diamonds (primary or secondary) including the
			rock type and geological environment.
Sample			• Type of sample, whether outcrop, boulders, drill core, reverse	•
collection			circulation drill cuttings, gravel, stream sediment or soil, and purpose
			(eg large diameter drilling to establish stones per unit of volume or
			bulk samples to establish stone size distribution).
			• Sample size, distribution and representivity.
Sample			• Type of facility, treatment rate, and accreditation.	•
treatment			• Sample size reduction. Bottom screen size, top screen size and re-
			crush.
			• Processes (dense media separation, grease, X-ray, hand-sorting,
			etc).
			• Process efficiency, tailings auditing and granulometry.
			• Laboratory used, type of process for micro diamonds and
			accreditation.
Carat			• One fifth (0.2) of a gram (often defined as a metric carat or MC).	•
Sample			• Sample grade in this section of Table 1 is used in the context of	•
grade			carats per units of mass, area or volume.
			• The sample grade above the specified lower cut-off sieve size should
			be reported as carats per dry metric tonne and/or carats per 100 dry
			metric tonnes. For alluvial deposits, sample grades quoted in carats
			per square metre or carats per cubic metre are acceptable if
			accompanied by a volume to weight basis for calculation.
			• In addition to general requirements to assess volume and density
			there is a need to relate stone frequency (stones per cubic metre or
			tonne) to stone size (carats per stone) to derive sample grade (carats
			per tonne).
Reporting	of		• Complete set of sieve data using a standard progression of sieve	•
BOARD AND MANAGEMENT MARKET DATA Exploration sizes per facies. Bulk sampling results, global sample grade per
**Nicolaus Heinen	Non-executive Chairman Christopher Wanless	Chief Executive Officer ~~Bruno Hegner	~~~~_Director & Chief Op_erating Officer~~ Tom Eadie	Non-executive Director Brett Tucker
**John Schloderer	**Exploration Manager

Criteria		JORC Code explanation	Commentary
		granulometry.
		• Sample density determination.
		• Per cent concentrate and undersize per sample.
		• Sample grade with change in bottom cut-off screen size.
		• Adjustments made to size distribution for sample plant performance
		and performance on a commercial scale.
		• If appropriate or employed, geostatistical techniques applied to model
		stone size, distribution or frequency from size distribution of
		exploration diamond samples.
		• The weight of diamonds may only be omitted from the report when
		the diamonds are considered too small to be of commercial
		significance. This lower cut-offsize should be stated.
Grade		• Description of the sample type and the spatial arrangement of drilling	•
estimation for		or sampling designed for grade estimation.
reporting		• The sample crush size and its relationship to that achievable in a
Mineral		commercial treatment plant.
Resources		• Total number of diamonds greater than the specified and reported
and	Ore	lower cut-off sieve size.
Reserves		• Total weight of diamonds greater than the specified and reported
		lower cut-off sieve size.
		• The sample grade above the specified lower cut-offsieve size.
Value		• Valuations should not be reported for samples of diamonds	•
estimation		processed using total liberation method, which is commonly used for
		processing exploration samples.
		• To the extent that such information is not deemed commercially
		sensitive, Public Reports should include:
		o diamonds quantities by appropriate screen size per facies or
		depth.
		o details of parcel valued.
		o number of stones, carats, lower size cut-off per facies or depth.
		• The average $/carat and $/tonne value at the selected bottom cut-off
		should be reported in US Dollars. The value per carat is of critical
		importance in demonstrating project value.
		• The basis for the price (eg dealer buying price, dealer selling price,
		etc).
		• Anassessment of diamond breakage.
Security	and	• Accredited process audit.	•
BOARD AND MANAGEMENT MARKET DATA integrity • Whether samples were sealed after excavation.
**Nicolaus Heinen	**		Non-executive Chairman ASX Code: AL8 • Valuer location, escort, delivery, cleaning losses, reconciliation with
**Christopher Wanless	Chief Exe**cutive Officer Share Price: $0.49 record d sample carats and number of stones.
**Bruno Hegner	_Director & Chief Op_erating Officer ~~Tom Eadie	Non-executive Director~~ Brett Tucker	Company Secretary Peter Geerdts	**Chief Geologist Shares on Issue: 112,963,908 Options on Issue: 20,677,454 • Core samples washed prior to treatment for micro diamonds.
**John Schloderer	**Exploration Manager

Criteria	JORC Code explanation	Commentary
	• Audit samples treated at alternative facility.
	• Results of tailings checks.
	• Recovery of tracer monitors used in sampling and treatment.
	• Geophysical (logged) density and particle density.
	• Cross validation of sample weights, wet and dry, with hole volume
	and density, moisture factor.
Classification	• In addition to general requirements to assess volume and density	•
	there is a need to relate stone frequency (stones per cubic metre or
	tonne) to stone size (carats per stone) to derive grade (carats per
	tonne). The elements of uncertainty in these estimates should be
	considered, and classification developed accordingly.

25