HAWK RESOURCES LIMITED. — Investor Presentation 2017

Sep 11, 2017

IP survey significantly upgrades porphyry copper potential at Frisco

Highlights

==> picture [157 x 6] intentionally omitted <==

==> picture [157 x 5] intentionally omitted <==

==> picture [157 x 6] intentionally omitted <==

• Preliminary results from the induced polarisation (“IP”) survey at Frisco (Utah, USA) has defined a large IP anomaly coincident with a large circular magnetic anomaly, surface alteration, mineralisation and geochemical surface copper anomalism at the Cactus Canyon prospect

• The IP anomaly forms a large contiguous 5km by 3km chargeability anomaly which wraps around a 2km by 1.5km resistivity anomaly and is consistent with a large porphyry copper system

• The chargeability anomaly is interpreted to represent a sulphide-rich (pyrite) phyllic alteration zone surrounding a resistive potassic copper-bearing core

• Cactus Canyon is coincident with a copper dominant historical geochemical anomaly and pervasive surface phyllic alteration. It lies adjacent to a 1000m by 200m zone of extensive breccia-pipe hosted copper mineralisation incorporating the Comet, New Years and Cactus Mines, with the latter mined to a depth of 275m

• An independent review confirmed a multi-phase system of possible porphyry intrusions at Cactus Canyon

• The IP survey over Alderan tenure is continuing. Full results will be released over coming weeks

• Alderan is currently awaiting the mobilisation of drill rigs from its contractor with drilling to focus initially on the 1000m corridor comprising the Cactus, Comet and New Year mines

==> picture [157 x 6] intentionally omitted <==

www.alderanresources.com.au

e: info@alderanresources.com.au

==> picture [517 x 73] intentionally omitted <==

Alderan Resources Limited (ASX: AL8) is pleased to announce it has identified an IP anomaly likely representing a large, preserved and mineralised porphyry system at the Cactus Canyon prospect, part of its Frisco Project in Utah, USA. Utah is consistently ranked as one of the top mineral investment jurisdictions in the world (Fraser Institute Survey 2016) and is located predominantly on private land in close vicinity to roads, rail, power plants and copper smelters.

IP survey confirms porphyry copper potential at Cactus Canyon

Alderan is undertaking an IP survey at Frisco and has received preliminary results for the northern half of the survey area which covers the Cactus Canyon target. Analysis and processing of the data has shown a large 15-40+ mV/V chargeability shell wrapping around a central higher resistivity (750 to approximately 1500 Ohm-m) anomaly. This is consistent with a large mineralised porphyry system where a sulphide (pyrite) rich outer propyllitic to phyllic alteration shell surrounds a central copper bearing potassic zone (see Figure 1 and 2).

==> picture [517 x 286] intentionally omitted <==

Figure 1: A series of chargeability anomalies (up to 40 mV/V) represented as green-blue units are interpreted to represent a pyrite rich shell, overlying and wrapping around a large 2km by 1.5km body of higher resistivity (1500 and 2500 Ohm-m, shown in orange) which may host a copper-bearing potassic zone.

The Cactus Canyon prospect is associated with extensive outcropping phyllic alteration, mineralised breccia, porphyry style distal copper bearing veining, copper bearing dykes and a large 1000m by 200m zone of copper mineralisation incorporating the Cactus, Comet and New Years mines. Mineralisation in these mines is hosted in tourmaline-pyrite-chalcopyrite breccia pipes. Chalcopyrite-magnetite association has also been identified between the breccia pipes – possibly representing an earlier mineralising event. These features are expanded in further detail below.

AL8, ASX Announcement 12 September, 2017

2

==> picture [517 x 73] intentionally omitted <==

==> picture [515 x 304] intentionally omitted <==

Figure 2: Porphyry copper model illustrating the pyrite rich shell, which is expected to have high chargeability, overlying the copper bearing potassic zone which is expected to be more resistive. Also shown is the interpreted present level of erosion at Cactus Canyon

A 3D inversion of the IP data shows the high chargeability zone of Figure 1 wrapping around a central, vertical, dome-shaped zone of 1500 Ohm-m resistivity. A subcircular zone of 2500 Ohmm resistivity exists within the apical parts of the dome and may respresent a zone of higher resistivity associated with a potassic alteration in the upper parts of an intrusive porphyry. The 1500 Ohm-m resistivity anomaly is coincident with a large circular deep magnetic low anomaly at Cactus Canyon (see Figure 3). A second subcircular zone of resistivity (2500 Ohm-m), named Prospect A, is also apparent, which may represent a second intrusive center (see also Figure 1).

The IP survey is ongoing, with the geophysics crew acquiring data over the Accrington prospect in the south of the Frisco Project. Figure 4 shows a three-dimensional viewpoint of the entire 3D inversion to date of the IP results which highlights a contiguous 4km by 2km+ 1000 Ohm-m resistivity anomaly around which a larger chargeability anomaly wraps (20 Mv/V shell shown in Figure 4). The continuation of the resistivity and chargeability anomaly to the south may be due to the presence of additional intrusives.

AL8, ASX Announcement 12 September, 2017

3

==> picture [517 x 73] intentionally omitted <==

==> picture [518 x 446] intentionally omitted <==

Figure 3 Magnetic contours (above) from the magnetic inversion model also showing the 1500 Ohm-m resistivity shell (orange) which is coincident with a large circular magnetic low anomaly at Cactus Canyon demonstrated in the bottom image. The magnetic low shown in the cross section in the lower diagramis interpreted as an area of magnetic destruction likely caused by a large porphyry related hyrdrothermal system.

AL8, ASX Announcement 12 September, 2017

4

==> picture [517 x 73] intentionally omitted <==

==> picture [518 x 211] intentionally omitted <==

Figure 4: Left: current extent of resistivity surface at depth (1000 Ohm m), showing domal features within which localised zones of higher resistivity may indicate potassic alteration within the apices of the intrusives. Right: Chargeability-surface (20Mv/V, blue) overlain on top of resistivity (orange), showing chargeability associated with a mapped phyllic zone wrapping around the apices of resistive domes

Mineralisation and Geochemistry

The Cactus Canyon porphyry system exhibits extensive surface and several expressions of porphyry related mineralisation. Features of known mineralisation associated with Cactus Canyon include:

• Copper-gold-silver mineralisation at the historic Cactus, Comet and New Years Mines which exposes mineralisation across an area of 1000m by 200m to at least 275m depth. Two mineralisation events are suggested within this corridor with mineralisation hosted within tourmaline-pyrite-chalcopyrite breccia pipes (associated with a low magnetic geophysical signal) and in between the pipes (with a higher magnetic geophysical signal);

• Historical sampling at Cactus which intersected high grade mineralisation (e.g. 21.5m @ 6.1% Cu) and historical drilling that intersected broad zones of copper (e.g. 136m @ 0.76% Cu in DDH6)[1] .

• Gold or silver was generally not assayed in historical drilling or sampling; however, Alderan rock chip sampling confirmed the presence of significant amounts of both gold and silver;

• Copper-bearing porphyry dykes mapped at surface and intersected in historical drilling (DDH520-1) alongside Cactus Canyon; and

• Mineralised skarns hosted within carbonate lithologies

The Cactus Mine was a historical copper-gold-silver producer with historical production amounting to approximately 1.2Mt. Mining ceased in 1914 due to underground activities having intruded into a neighbouring claim.

Historical wide-spaced geochemical sampling was undertaken over the Cactus Canyon area for copper-molybdenum-zinc by AMAX Exploration in 1971-73. The survey showed a copper dominant anomaly directly over the Cactus Canyon prospect (see Figure 5).

Footnotes: 1) Refer to full channel sampling results reported in ASX Announcement by AL8 dated 21 August 2017 (Extensive Copper in historical sampling at Cactus) and on 28 June 2017 (High Impact Exploration Program Commences at Frisco)

AL8, ASX Announcement 12 September, 2017

5

==> picture [517 x 73] intentionally omitted <==

==> picture [513 x 279] intentionally omitted <==

Figure 5: Results of historical rock chip sampling (AMAX 1973) showing colour coded values of Cu over Zn ratio per sample point and as colour coded contour lines (left image). Photographs of the Cactus – Comet – New Year corridor (right, top) and Cactus chalcopyrite-tourmaline-pyrite breccia (right, bottom).

AL8, ASX Announcement 12 September, 2017

6

==> picture [517 x 73] intentionally omitted <==

==> picture [505 x 364] intentionally omitted <==

Figure 6: The Cactus Canyon porphyry copper prospect shown lying adjacent to the 1000m corridor hosting the Cactus, Comet and New Year breccia pipes and mines.

Independent Review

An independent review was conducted by Corbett Geological Services Pty Ltd on the Frisco Project. Key observations and conclusions of the review with respect to the Cactus Canyon prospect were:

• The identification of phyllic alteration associated with a zone of brown colouration in satellite photos, typical of what might be expected from the weathering of a moderate, structurally controlled, phyllic alteration overprint upon magnetic wall rocks above a blind porphyry intrusion. This should manifest in the geophysical data as coincident mottled magnetite destruction and a positive chargeability anomaly associated with the pyrite content. The sericite overprint of the monzodiorite may provide a reduction in resistivity.

• The identification of D veins associated with surficial phyllic alteration, sheeted porphyry quartz veins of the B style characterised by a central line of chalcopyrite and hosted within monzodiorite, identified on the Comet mine dump - typical of the targeted porphyry mineralisation, here as wall rock hosted marginal to the speculated porphyry.

• The likelihood of the massive monzodiorite being an ideal host which will fracture well to facilitate any speculated porphyry and associated stockwork quartz veins.

• Confirmation of a multi intrusion and preserved porphyry system at Cactus Canyon.

AL8, ASX Announcement 12 September, 2017

7

==> picture [517 x 73] intentionally omitted <==

==> picture [257 x 171] intentionally omitted <==

==> picture [257 x 171] intentionally omitted <==

Figure 7: (Left) Oxidised banded quartz vein typical of D veins formed marginal to porphyry Cu deposits from the Cactus Canyon area. (Right) Sheeted B style quartz veins with central lines of chalcopyrite within monzodiorite form the Comet mine dump

Potential for a possible porphyry cluster at Frisco

Magnetic modelling has shown that the Cactus Canyon porphyry prospect sits on a large circular magnetic low anomaly which appears in 3D modelling as a large, deep cavity, likely the result of magnetite destruction through alteration of equigranular Monzonite from a large hydrothermal porphyry system. Figure 8 shows the Cactus Canyon target on the magnetic inversion and a series of additional magnetic low anomalies extending to the south. Preliminary results of the IP survey show a ridge of resistivity and chargeability associated with these possible intrusives. Alderan expects the IP survey will be completed within the next few weeks and that all data processing including inversion modelling will be complete by early October.

==> picture [519 x 220] intentionally omitted <==

Figure 8: (Left image) Magnetic inversion (3D) showing the large magnetic low cavity at Cactus Canyon (1) and a series of additional magnetic low anomalies (2,3,4) which may represent additional porphyry intrusions (left image) and (right image) current chargeability shell (20 mV/V) shown as a blue lattice wrapping over a central resistive zone (1000 Ohm-m) which covers the Cactus Canyon prospect

AL8, ASX Announcement 12 September, 2017

8

==> picture [517 x 73] intentionally omitted <==

==> picture [510 x 359] intentionally omitted <==

Figure 9: Frisco Project - Tenure Map

---ENDS---

Please direct enquiries to:

Nathan Ryan NWR Communications Mobile: 0420 582 887

Christopher Wanless Chief Executive Officer chris@alderanresources.com.au

Stay Connected

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

==> picture [115 x 42] intentionally omitted <==

==> picture [136 x 42] intentionally omitted <==

AL8, ASX Announcement 12 September, 2017

9

==> picture [517 x 73] intentionally omitted <==

Competent Persons Statement

The information in this presentation that relates to exploration targets, exploration results, mineral resources or ore reserves is based on information compiled by Donald Smith, a competent person who is a member of the Australian Institute of Geoscientists (AIG) and Australian Institute of Mining & Metallurgy (Ausimm). Mr Smith is a Geologist and Director of Alderan Resources Limited. Mr Smith 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). Mr Smith consents to the inclusion of this information in the form and context in which it appears.

Mr Smith confirms 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”.

About Alderan Resources Limited

Alderan is a copper explorer with a focus on the Frisco Project, located in Utah, United States of America. The Frisco Project encompasses an area of significant historical mining activity with numerous old mines and workings across an area of approximately 7km by 4km. These include:

• the Cactus copper-gold-silver deposit and breccia pipe, one of several mineralised breccia pipes over an area of approximately 1000 m by 200 m. Modelling of magnetic survey data demonstrates that these pipes are likely connected at depth;

• the Accrington copper-zinc-silver-gold skarn, which hosts extensive mineralisation across an area of 1.8 km by 1.2 km; and

• the Horn zinc deposit, a historical lead-silver mine, which contains significant amounts of unmined high grade zinc.

The Company believes that these three deposits are genetically related to, and were formed contemporaneously with, underlying mineralised (copper-molybdenum-gold) porphyry intrusions. Work undertaken by the Company has confirmed the presence of a mineralised porphyry system beneath and adjacent to the Cactus breccia pipes.

AL8, ASX Announcement 12 September, 2017

10

==> picture [517 x 73] intentionally omitted <==

APPENDIX 1 JORC Code, 2012 Edition – Table 1 Report FRISCO PROJECT

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	•Not applicable
techniques	channels, random chips, or specific
	specialised industry standard
	measurement tools appropriate to the
	minerals under investigation, such as down
	hole gamma sondes, or handheld XRF
	instruments, etc). These examples should
	not be taken as limiting the broad meaning
	of sampling.
	• Include reference to measures taken to
	ensure sample representivity and the
	appropriate calibration of any
	measurement tools or systems used.
	• Aspects of the determination of
	mineralisation that are Material to the
	Public Report.
	• In cases where ‘industry standard’ work
	has been done this would be relatively
	simple (eg ‘reverse circulation drilling was
	used to obtain 1 m samples from which 3
	kg was pulverised to produce a 30 g
	charge for fire assay’). In other cases more
	explanation may be required, such as
	where there is coarse gold that has
	inherent sampling problems. Unusual
	commodities or mineralisation types (eg
	submarine nodules) may warrant
	disclosure of detailed information.
Drilling	• Drill type (eg core, reverse circulation,	•Not applicable
techniques	open-hole hammer, rotary air blast, auger,
	Bangka, sonic, etc) and details (eg core
	diameter, triple or standard tube, depth of
	diamond tails, face-sampling bit or other
	type, whether core is oriented and if so, by
	_what method, etc). _
Drill sample	• Method of recording and assessing core	•Not applicable
recovery	and chip sample recoveries and results
	assessed.
	• Measures taken to maximise sample
	recovery and ensure representative nature
	of the samples.
	• Whether a relationship exists between
	sample recovery and grade and whether
	sample bias may have occurred due to
	preferential loss/gain of fine/coarse
	material.
Logging	• Whether core and chip samples have been	•Not applicable
	geologically and geotechnically logged to a
	level of detail to support appropriate

AL8, ASX Announcement 12 September, 2017

11

==> picture [517 x 73] intentionally omitted <==

Criteria	Criteria		JORC Code explanation	Commentary
			Mineral Resource estimation, mining
			studies and metallurgical studies.
			• Whether logging is qualitative or
			quantitative in nature. Core (or costean,
			channel, etc) photography.
			• The total length and percentage of the
			_relevant intersections logged. _
Sub-			• If core, whether cut or sawn and whether	•Not applicable
sampling			quarter, half or all core taken.
techniques			• If non-core, whether riffled, tube sampled,
and	sample		rotary split, etc and whether sampled wet
preparation			or dry.
			• For all sample types, the nature, quality
			and appropriateness of the sample
			preparation technique.
			• Quality control procedures adopted for all
			sub-sampling stages to maximise
			representivity of samples.
			• Measures taken to ensure that the
			sampling is representative of the in situ
			material collected, including for instance
			results for field duplicate/second-half
			sampling.
			• Whether sample sizes are appropriate to
			the grain size of the material being
			_sampled. _
Quality		of	• The nature, quality and appropriateness of	•The IP data were acquired using the
assay		data	the assaying and laboratory procedures	DIAS32 receiver system coupled to a
and			used and whether the technique is	paired GDD Tx II transmitter. Full
laboratory			considered partial or total.	waveform data were recorded for a
tests			• For geophysical tools, spectrometers,	transmitter fundamental frequency of
			handheld XRF instruments, etc, the	0.125 Hz
			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	•Not applicable
sampling		and	by either independent or alternative
assaying			company personnel.
			• The use of twinned holes.
			• Documentation of primary data, data entry
			procedures, data verification, data storage
			(physical and electronic) protocols.
			• _Discuss any adjustment to assay data. _
Location		of	• Accuracy and quality of surveys used to	•All IP survey control using non-differential
data points			locate drill holes (collar and down-hole	GPS referenced to WGS84. Elevations
			surveys), trenches, mine workings and	interpolated from SRTM30. Horizontal +/-
			other locations used in Mineral Resource	2m, Vertical +/- 5m
			estimation.
			• Specification of the grid system used.
			• Quality and adequacy of topographic

AL8, ASX Announcement 12 September, 2017

12

==> picture [517 x 73] intentionally omitted <==

Criteria		JORC Code explanation		Commentary
		control.
Data spacing		• Data spacing for reporting of Exploration	•	IP receiver electrode spacing of 100m,
and		Results.		transmitter electrode spacing of 200m and
distribution		• Whether the data spacing and distribution		line spacing of 100m which is adequate for
		is sufficient to establish the degree of		porphyry and breccia pipe style targets.
		geological and grade continuity appropriate		Multipoles to 400m have been measured
		for the Mineral Resource and Ore Reserve		to increase the depth of investigation of
		estimation procedure(s) and classifications		the survey..
		applied.
		• Whether sample compositing has been
		_applied. _
Orientation	of	• Whether the orientation of sampling		•The double offset dipole dipole array used
data	in	achieves unbiased sampling of possible		is only weakly dependent on the
relation	to	structures and the extent to which this is		orientation of any mineralisation or
geological		known, considering the deposit type.		alteration trends with respect to the line
structure		• If the relationship between the drilling		direction.
		orientation and the orientation of key
		mineralised structures is considered to
		have introduced a sampling bias, this
		should be assessed and reported if
		material.
Sample		• The measures taken to ensure sample		•Not applicable
security		_security. _
Audits	or	• The results of any audits or reviews of		•Not applicable
reviews		sampling techniques and data.

Section 2 Reporting of Exploration Results

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

• Criteria JORC Code explanation Commentary Mineral • Type, reference name/number, location • tenement and and ownership including agreements or land tenure material issues with third parties such as status joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and • environmental settings.

  • The Frisco Prospect comprises 275 patented and 252 unpatented claims, which are governed by the Horn, Cactus and Northern Carbonate lease agreements entered into with the private landowner, Horn Silver Mines Inc.

  • • The Horn and Cactus lease agreements grant Alderan 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.

  • • 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.

• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

• 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 done by other exploration by other parties. parties

• A large amount of historical exploration has been carried out by numerous different parties dating back to the 1800’s.

• Historical mining records including level plans and production records exist for the period between 1905 and 1915 when the vast majority of production occurred

AL8, ASX Announcement 12 September, 2017

13

==> picture [517 x 73] intentionally omitted <==

Criteria		JORC Code explanation	Commentary	Commentary
			•	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, andinterpreted byAlderan.
Geology		• Deposit type, geological setting and style	•	Porphyry style mineralised district with several
		of mineralisation.		expressions of mineralisation at surface, such
				as breccia pipes, skarns, structurally-hosted
				mineralisation, and manto style mineralised
				zones, including outcropping porphyries.
			•	Part of the larger Laramide mineralising event.
			•	Overprinted byBasinandRange tectonics.
Drill	hole	• A summary of all information material to	•	Not applicable
Information		the understanding of the exploration
		results including a tabulation of the
		following information for all Material drill
		holes:
		o easting and northing of the drill hole
		collar
		o elevation or RL (Reduced Level –
		elevation above sea level in metres)
		of the drill hole collar
		o dip and azimuth of the hole
		o down hole length and interception
		depth
		o hole length.
		• If the exclusion of this information is
		justified on the basis that the information
		is not Material and this exclusion does
		not detract from the understanding of the
		report, the Competent Person should
		_clearly explain why this is the case. _
Data		• In reporting Exploration Results,	•	Not applicable
aggregation		weighting averaging techniques,
methods		maximum and/or minimum grade
		truncations (eg cutting of high grades)
		and cut-off grades are usually Material
		and should be stated.
		• Where aggregate intercepts incorporate
		short lengths of high grade results and
		longer lengths of low grade results, the
		procedure used for such aggregation
		should be stated and some typical
		examples of such aggregations should
		be shown in detail.
		• The assumptions used for any reporting
		of metal equivalent values should be
		_clearly stated. _
Relationship		• These relationships are particularly	•	Not applicable
between		important in the reporting of Exploration
mineralisation		Results.
widths	and	• If the geometry of the mineralisation with
intercept		respect to the drill hole angle is known,
lengths		its nature should be reported.
		• If it is not known and only the down hole
		lengths are reported, there should be a

AL8, ASX Announcement 12 September, 2017

14

==> picture [517 x 73] intentionally omitted <==

Criteria	JORC Code explanation	Commentary
	clear statement to this effect (eg ‘down
	_hole length, true width not known’). _
Diagrams	• Appropriate maps and sections (with	•Not applicable
	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	•Not applicable
reporting	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. _
Other	• Other exploration data, if meaningful and	•The IP survey uses a double offset dipole-
substantive	material, should be reported including	dipole array acquired with a distributed
exploration	(but not limited to): geological	acquisition system. The data have been
data	observations; geophysical survey results;	cleaned and then inverted using a 3D
	geochemical survey results; bulk	inversion package. Results to date are
	samples – size and method of treatment;	preliminary and features on the northern
	metallurgical test results; bulk density,	and southern limits of the inversion mesh
	groundwater, geotechnical and rock	should be treated with caution.
	characteristics; potential deleterious or
	_contaminating substances. _
Further work	• The nature and scale of planned further	•Alderan Resources is currently in the final
	work (eg tests for lateral extensions or	stages of preparing a drill program which
	depth extensions or large-scale step-out	will ascertain the along strike and depth
	drilling).	extensions of the Cactus/New Years/Comet
	• Diagrams clearly highlighting the areas	breccia corridor.
	of possible extensions, including the	•Further drilling to test porphyry targets
	main geological interpretations and	implied from recent geophysics work is
	future drilling areas, provided this	being evaluated.
	information is not commercially sensitive.

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	•All data is collected automatically through
integrity	not been corrupted by, for example,	the custom built secure Dias data system.
	transcription or keying errors, between its	•Processing of these datasets is completed
	initial collection and its use for Mineral	on custom built secure systems hosted by
	Resource estimation purposes.	ExploreGeo
	• _Data validation procedures used. _
Site visits	• Comment on any site visits undertaken	•Dias geophysical have acquired the data
	by the Competent Person and the	onsite
	outcome of those visits.	•Competent persons listed regularly visit site
	• If no site visits have been undertaken	and are intimate with the project
	_indicate why this is the case. _
Geological	• Confidence in (or conversely, the	•Geological interpretations are preliminary
interpretation	uncertainty of ) the geological	only.
	interpretation of the mineral deposit.	•No mineral resources are being considered
	• Nature of the data used and of any	at this time. Not applicable.
	_assumptions made. _

AL8, ASX Announcement 12 September, 2017

15

==> picture [517 x 73] intentionally omitted <==

Criteria	**JORC Code explanation **	Commentary	Commentary
	• 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	•	Geological interpretations are preliminary
	Resource expressed as length (along		only.
	strike or otherwise), plan width, and	•	No mineral resources are being considered
	depth below surface to the upper and		at this time. Not applicable.
	_lower limits of the Mineral Resource. _
Estimation	• The nature and appropriateness of the	•	The IP data have been inverted using
and	estimation technique(s) applied and key		Res3DInv using a nominally 50m x 50m
modelling	assumptions, including treatment of		mesh draped under topography with voxel
techniques	extreme grade values, domaining,		height increasing from 25m at the surface
	interpolation parameters and maximum		to 300m at a depth of 2km. Both L1 and L2
	distance of extrapolation from data		Norm convergence criteria were used for
	points. If a computer assisted estimation		both linear perturbation and non-linear
	method was chosen include a description		complex IP inversion algorithms. In a gross
	of computer software and parameters		sense all inversions produced similar
	used.		models and geological implications
	• The availability of check estimates,		although there were subtle differences in
	previous estimates and/or mine		detail which may effect drill targeting but not
	production records and whether the		the overall conclusions..
	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.
	• Any assumptions behind modelling of
	selective mining units.
	• Any assumptions about correlation
	between variables.
	• Description of how the geological
	interpretation was used to control the
	resource estimates.
	• Discussion of basis for using or not using
	grade cutting or capping.
	• The process of validation, the checking
	process used, the comparison of model
	data to drill hole data, and use of
	_reconciliation data ifavailable. _
Moisture	• Whether the tonnages are estimated on a	•	No mineral resources are being considered
	dry basis or with natural moisture, and		at this time. Not applicable.
	the method of determination of the	•
	_moisture content. _
Cut-off	• The basis of the adopted cut-off grade(s)	•	No mineral resources are being considered
parameters	orquality parameters applied.		at this time. Not applicable.

AL8, ASX Announcement 12 September, 2017

16

==> picture [517 x 73] intentionally omitted <==

Criteria		**JORC Code explanation **	Commentary	Commentary
			•
Mining		• Assumptions made regarding possible	•	No mineral resources are being considered
factors	or	mining methods, minimum mining		at this time. Not applicable.
assumptions		dimensions and internal (or, if applicable,	•
		external) mining dilution. It is always
		necessary as part of the process of
		determining reasonable prospects for
		eventual economic extraction to consider
		potential mining methods, but the
		assumptions made regarding mining
		methods and parameters when
		estimating Mineral Resources may not
		always be rigorous. Where this is the
		case, this should be reported with an
		explanation of the basis of the mining
		_assumptions made. _
Metallurgical		• The basis for assumptions or predictions	•	No mineral resources are being considered
factors	or	regarding metallurgical amenability. It is		at this time. Not applicable.
assumptions		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. _
Environmen-		• Assumptions made regarding possible	•	No mineral resources are being considered
tal factors	or	waste and process residue disposal		at this time. Not applicable.
assumptions		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 an explanation of the environmental
		_assumptions made. _
Bulk density		• Whether assumed or determined. If	•	No mineral resources are being considered
		assumed, the basis for the assumptions.		at this time. Not applicable.
		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

AL8, ASX Announcement 12 September, 2017

17

==> picture [517 x 73] intentionally omitted <==

Criteria		**JORC Code explanation **	Commentary	Commentary
		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	•	No mineral resources are being considered
		Mineral Resources into varying		at this time. Not applicable.
		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	•	No mineral resources are being considered
reviews		Mineral Resource estimates.		at this time. Not applicable.
			•	Geophysical data and interpretation is
				provided by ExploreGeo who are an
				independent consultant
			•	Geological
				audit/observations/interpretations provided
				by Corbett Geological Services Pty Ltd who
				are an independent consultant
Discussion	of	• Where appropriate a statement of the	•	Inversion of any geophysical data is not
relative		relative accuracy and confidence level in		guaranteed to produce the correct answer.
accuracy/		the Mineral Resource estimate using an		It will produce an answer that best fits with
confidence		approach or procedure deemed		the observations. Inversions using different
		appropriate by the Competent Person.		algorithms, different data sets and different
		For example, the application of statistical		physical properties which converge to
		or geostatistical procedures to quantify		similar models provide confidence that the
		the relative accuracy of the resource		modelled result is more likely to reflect the
		within stated confidence limits, or, if such		true geological distribution.
		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. _

AL8, ASX Announcement 12 September, 2017

18