IGO LIMITED — Capital/Financing Update 2016

Nov 13, 2016

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ASX ANNOUNCEMENT / MEDIA RELEASE

ASX:ABU

14 November 2016

Drilling Discovers Mineralisation at the Grapple Prospect on Lake Mackay JV

ABM Resources NL (“ABM” or the “Company”) is pleased to announce progress results for RC drilling at the Lake Mackay Joint Venture (“JV”) being managed by Independence Group NL (“IGO”).

Highlights

• Five out of 14 RC holes have been completed with mineralisation intersected in three holes

• Encouraging mineralisation intersected at the Grapple Prospect from two of the three initial holes

• Multiple intersections identified in hole 16GRRC003 including 9m at 3.26% copper, 1.8g/t gold, 49.1g/t silver, 3.63% zinc, 1.09% lead and 0.26% cobalt

• Results continue to confirm the prospectivity of Lake Mackay as a belt-scale opportunity

Background

The Lake Mackay Project (“Lake Mackay” or the “Project”) is located approximately 400km northwest of Alice Springs, adjacent to the Western Australian border, and includes 7,200km[2] of exploration licences (Figure 1). The belt is at a very early stage of exploration. The only reported previous exploration was completed by BHP Billiton targeting nickel sulphide mineralisation in the early 2000s. IGO is executing an exploration program as part of an exploration alliance[1 ] with ABM to systematically evaluate the Project. The Project has consolidated the favourable Proterozoic margin between the Aileron and Warumpi Provinces, characterised by a continent-scale geophysical gravity ridge and the Central Australian Suture. The JV partners believe that there is potential to unlock a new metallogenic province hosting multiple styles of mineralisation.

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Figure 1: Lake Mackay Project location plan focused on the Proterozoic Warumpi margin covering 200km strike of prospective geology, centred on a continent-scale geophysical gravity ridge. Reconnaissance exploration to date has been focused on EL24915.

1 IGO is earning 70% interest in ABM’s Lake Mackay tenements by solely funding $6 million of exploration expenditure (ASX 6 May 2016).

IGO has previously intersected Volcanogenic Massive Sulphide (“VMS”) style mineralisation at Bumblebee. This target was identified through soil geochemistry and ground Moving Loop Electromagnetic (“MLEM”) surveys. Subsequent drilling (ASX 27 July 2016) intersected low grade base metal mineralisation, comprising chalcopyrite, sphalerite and galena. Four of the holes returned a total of five intercepts greater than 1% copper. The intersection of these sulphides along with elevated gold, silver, copper, lead and zinc provides support for the prospectivity of the Project.

Current Lake Mackay RC Drilling Program

A 14 hole reverse circulation (“RC “) drilling program has commenced on EL24915 at the Grapple Prospect, which is delineated by MLEM conductors and coincident multi-element soil anomalies (Figure 2 and 3). Five drill holes have been completed on the Prospect with encouraging results received from two of the first three holes. The best mineralisation intersected is from 16GRRC003, with hole 16GRRC001 interpreted to have intersected the same zone of mineralisation in oxide, 200m east of the mineralisation in 16GRRC003. Mineralisation consists of pyrrhotite, pyrite, chalcopyrite, sphalerite and galena matrix sulphides within a sediment package.

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Figure 2: Lake Mackay reconnaissance targets on EL24915. The proposed drilling program will provide bedrock tests at Grapple, Springer and Prowl. The number of planned drilled holes is shown in parenthesis.

Significant intercepts are summarised in Table 1. Downhole widths are provided as the geometry of the mineralisation is not yet well understood given the preliminary stage of the program.

Table 1: Summary intercepts from the Lake Mackay RC program reported above a cut-off of 1ppm gold (Au) or 1% copper (Cu) or 1% zinc (Zn) or 1% lead (Pb).

Hole ID	From Depth (m) To Depth (m) Interval (m)* Au (ppm) Ag (ppm) Cu (%) Zn (%) Pb (%) Bi (%) Co (%)**
16GRRC001	22 24 2 2.3 0.7 0.16 0.13 NSA 0.01 0.09 26 27 1 1.9 2.3 0.29 0.17 0.01 0.02 0.02
16GRRC003	64 74 10 1.6 50.1 1.05 2.55 1.71 0.06 0.09 85 94 9 1.8 49.1 3.26 3.63 1.09 0.08 0.26 95 100 5 1.1 40.9 4.61 4.61 0.67 0.06 0.25 102 103 1 0.9 21.4 2.87 1.45 0.34 0.05 0.04 131 132 1 0.9 5.1 1.81 0.06 NSA 0.01 0.02 151 153 2 2.2 64.5 0.62 2.39 1.56 0.1 0.03

* Note: Intervals are downhole. True widths are unknown.

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Figure 3: Grapple Prospect showing the location of the three drill holes completed to date for which assay results have been returned.

Drilling is continuing at the Grapple Prospect. Additional drilling is also planned at the Prowl and Springer Prospects, characterised as gold dominant as indicated by regional soil geochemical anomalies. Limited aircore drilling at these prospects returned >1.0g/t intersections. Drilling is scheduled to be completed in November 2016 and assay results returning during December 2016.

To date, IGO is only testing the initial anomalies identified on the Project area which has been effectively tested by soil sampling in areas of limited cover. The tenement EL24915 represents 7% of the total Project area, of which only a portion of this is tested with effect soil sampling. The successful targeting and intersecting mineralisation from the first two limited drill programs supports the concept, generated from continental-scale targeting, that the Lake Mackay Project could represent an emerging new metallogenic province.

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Matt Briggs Managing Director

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About ABM Resources

ABM is an established gold exploration company with a successful track record of discovery in one of Australia’s premier gold mining districts. The Company has gold resources and extensive prospective land holdings in the Central Desert region of the Northern Territory. A major transformation of the Company leadership and strategy is underway, including a refreshed board and management team, aggressive cost management initiatives and a disciplined, tightly focused exploration strategy. Activities are currently focussed on the company’s under-explored 14,000 km2 Tanami project area.

• Drilling of advanced prospects in the Suplejack area

• Systematic evaluation of high potential early stage targets

• Assessment of existing resources

• Exploring opportunities for joint ventures and divestment of early stage targets

Competent Persons Statement

The information in this announcement relating to exploration results is based on information reviewed and checked by Mr Doug Winzar who is a Member of The Australasian Institute of Geoscientist. Mr Doug Winzar is a full time employee of Independence Group NL (IGO) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves”. Mr Winzar consents to the inclusion in the documents of the matters based on this information in the form and context in which it appears

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Appendix 1:

Table A1: Drill hole details from the current Lake Mackay Grapple Prospect (effective 11 November 2016)

Hole ID	Drill Hole Type	Easting (GDA94 Zone 52)	Northing (GDA94 Zone 52)	RL (m)	Azimuth (GDA 94)	Dip (degrees)	Total Depth (m)	Prospect
16GRRC001	RC	586300	7449124	480	360	-60	208	Grapple
16GRRC002	RC	587105	7449145	487	360	-60	196	Grapple
16GRRC003	RC	586098	7449066	483	355	-60	220	Grapple

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JORC Code, 2012 Edition – Table 1- Lake Mackay Drilling 2016

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Sampling techniques	• Nature and quality of sampling (eg cut 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.	• Reverse Circulation (RC) drilling was undertaken in October-November 2016. • RC Sampling  One metre RC samples were collected with a scoop and composited to four metres to produce a 3kg sample.  Individual metre samples were also sampled where geological logging identified mineralisation.  Samples were dried, pulverised to -75um and split to produce a nominal 200 gram sub sample.  4m composite samples had 10 grams analysed using aqua-regia digestion with an MS finish for Gold and 32 additional elements.  1m samples were analysed for gold using a 25 gram Lead collection fire assay with analysis by Inductively Coupled Plasma Optical Emission Spectrometry (ICP-OES)  Multi-element analysis was completed using a four acid digest on a 0.2g prepared sample with analysis of 33 elements with ICP-OES.
Drilling techniques	• Drill type (eg core, reverse circulation, 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). _	• A Schramm 660W RC drilling rig, owned and operated by Profile Drilling Services was used. • The RC drilling was conducted with a 127mm face sampling hammer bit.
Drill sample recovery	• Method of recording and assessing core 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.	• The sample recovery was estimated by the relative size of the piles of drill spoil that were placed on the ground. • Sample quality was recorded during logging (wet\dry samples) and qualitative recovery codes (C=contaminated, G=good, M=moderate, O=oversize, P=poor, U=undersize) were assigned to the samples.
Logging	• Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. • The total length andpercentage of the relevant intersections logged.	• The RC chips were logged on 1 metre intervals using the IGO coding system. Lithology, weathering, colour, alteration, veining and mineralisation are logged (Qualitative). Magnetic susceptibility was measured for each 4m composite sample (Quantitative). A representative chip sample was collected for each metre.
Sub-sampling techniques and sample preparation	• If core, whether cut or sawn and whether quarter, half or all core taken. • If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. • Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance resultsforfield duplicate/second-	• For RC, One-metre drill samples were laid out on to the ground in 25m rows, and four-metre composite samples of approximately 3kg were collected using an aluminium scoop, into pre-numbered calico bags. The majority of samples (>99%) were dry. • The same method was used for one-metre samples as well. • Samples were prepared at the Intertek Laboratory in Alice Springs. Samples were dried, and the whole sample was crushed and pulverised to 85% passing 75µm, and a sub-sample of approx. 200g retained. • A duplicate field sample was taken at a rate of 1 in 50. • Field duplicate assay results are reviewed to confirm that the sample results are representative. • For exploration drillingthe sample size is considered appropriate togive an indication of mineralisationgiven

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Criteria	JORC Code explanation	Commentary
	half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled.	that the sample is crushed to -75µm.
Quality of assay data and laboratory tests	• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. • Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) andprecision have been established.	• For 4m composites, Aqua Regia with an MS finish was used, this has a detection limit of 1ppb Au. This is a partial digest that is considered appropriate for detecting anomalous results. Any anomalous samples will be scoop sampled at 1mintervals and analysed using 25g fire assay for Au and four-acid digest for base metals. The fire assay is a total digest and the four-acid is considered a “near total” digest. • No geophysical or XRF results are used in exploration results reported. • Laboratory QAQC involves the use of internal lab standards and blanks using certified reference materials. Lab duplicates are also monitored to ensure the sample results are representative. • Independence Group also provides reference samples and blanks that are inserted every 50 samples.
Verification of sampling and assaying	• The verification of significant intersections by either independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data.	• Significant intersections were identified in the field by Doug Winzar and were selected for 1 metre sampling. • No twinned holes were completed. • Primary data was collected in Field Marshall files. Data are imported directly to the database with importers that have built in validation rules. Assay data are imported directly from digital assay files and are merged in the database with sample information. Data are uploaded to a master SQL database stored in Perth, which is backed up daily. Data is reviewed and manually validated upon completion of drilling. • From time to time assays will be repeated if they fail the company QAQC protocols, however no adjustments are made to assaydata once accepted into the database.
Location of data points	• Accuracy and quality of surveys used to locate drill holes (collar and down- hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control.	• Hole collars were recorded using Garmin handheld GPS and averaging for 90 seconds. Expected accuracy is + or – 3m for easting and northing. The azimuth of the drill collars were measured with a compass using magnetic north and recorded in the database. A clinometer was used to check the dip of the hole at the collar. • Downhole surveying was conducted with the Reflex Ez-trac system. Measurements were collected every 30m during the drilling of the hole. • Thegrid system is MGA_GDA94(zone 52)
Data spacing and distribution	• Data spacing for reporting of Exploration Results. • Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied.	• This drilling is not used for resource estimation, it was intended to attempt to identify bedrock sources of multi-element soil geochemical anomalies associated with gold mineralised systems and to test a conductor that was identified from a moving loop electromagnetic survey. • RC samples were composited over 4 metres.
Orientation of data in relation to geological structure	• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	• The drill lines were designed to be perpendicular to the soil anomalies and the EM conductor. • No sampling bias is considered to have been introduced.
Sample security	• The measures taken to ensure sample security.	• The RC drill samples were collected in pre-numbered calico bags and then placed in poly-weave bags. They were transported from the field to the sample preparation laboratory in Alice Springs by XM Logistics and IGO personnel. • Once the sample preparation is completed in Alice Springs the samples are transported to Perth for analysis usingthe laboratories standard chain of custody procedure.
Audits or reviews	• The results of any audits or reviews of sampling techniques and data.	• No specific audits or reviews have been undertaken at this stage in the programme.

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Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation
Mineral tenement and land tenure status	• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	• The Lake Mackay Project currently consists of EL24915: • This tenement is in good standing and no known impediments exist. • ABM and Independence Group NL (“IGO”) entered into a multi-phase agreement covering the Lake Mackay Project on 21 August 2013. • In May 2016 IGO triggered phase 2 of the agreement to earn a 70% interest in the project. This involved subscribing for $1.5M ABM shares in placement with a 6 month escrow period and spending $6M on exploration on the project over 4 years.
Exploration done by other parties	• Acknowledgment and appraisal of exploration by other parties.	• EL24915 was previously explored by BHP in the South Tanami JV. BHP flew a Geochem survey in 1999 and did ground EM and drilling in 2004 targeting Ni sulphides.
Geology	• Deposit type, geological setting and style of mineralisation.	• The project area is considered highly prospective for orogenic shear hosted gold deposits based on similarities that exist between the West Arunta and the Granites- Tanami Block with respect to gold deposition timing and structural settings. • The region is also considered having potential for a range of commodities and mineralising styles. These type of deposits include: • IOCG • VMS • Ultramafic intrusion related Ni-Cu-PGE
Drill hole Information	• A summary of all information material to 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.	• Included in Table 1A
Data aggregation methods	• In reporting Exploration Results, weighting averaging techniques, 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.	• Results reported are based on a 1 g/t Au or 1% Cu grade

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Criteria	JORC Code explanation
Relationship between mineralisation widths and intercept lengths	• These relationships are particularly important in the reporting of Exploration Results. • If the geometry of the mineralisation with respect to the drill hole angle is known, 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 (eg ‘down hole length, true width not _known’). _	• Downhole widths are provided as the geometry of the mineralisation is not yet well understood given the preliminary stage of the program.
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 reporting	• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should bepracticed to avoid misleading reporting of Exploration Results.
Other substantive exploration data	• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.
Further work	• The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). • Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	• Further drilling will be conducted to determine the lateral extent of the mineralisation.

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