IONDRIVE LIMITED - Capital/Financing Update 2016

Glandore Project Farm In and Joint Venture

Southern Gold to earn up to 90% with total of $1.2m expenditure
within the next three years under a farm in and joint venture agreement with Aruma Exploration, with all expenditure fully funded
Three advanced prospects ( Supergene Zone, Axial Planar and Central Fault ) with significant gold intersections and JORC resource potential

ASX Code: SAU Issued Shares: 36.53M

Directors

Greg Boulton AM (Chairman) Simon Mitchell (MD) Michael Billing David Turvey

Head Office

Southern Gold Ltd Level 1, 8 Beulah Rd Norwood SA 5067 Telephone: (08) 8368 8888 Facsimile: (08) 8363 0697 [email protected] www.southerngold.com.au

Postal Address

PO box 255 Kent Town SA 5071 ABN: 30 107 424 519

Extensive database from previous workers including Western Mining Corp and Anglogold, with approximately 23,000m of historical drilling
Southern Gold has estimated an exploration target range and anticipates rapid project advancement in the next 12 18 months

Highlights

Southern Gold Limited (“Southern” or “the Company”) has entered into a binding legal agreement with Aruma Exploration Pty Ltd (“AEPL”) to earn up to a 90% interest, through staged exploration expenditure of $1.2M (including a $0.3M minimum spend) within three years over 14 mining tenements comprising the most prospective part of the Glandore Project, approximately 37km east of Kalgoorlie in Western Australia. ( Figure 1 )
The agreement covers an area of 28.7 km[2] of contiguous tenements located adjacent to Southern’s Bulong Gold Project and hosts significant zones of near surface mineralisation located by previous explorers. ( Figure 2 )
� Three high priority prospects with significant near surface drill intersections have been identified from a review of historic exploration data: Supergene Zone, Axial Planar and Central Fault. ( Figure 2 and Table 1 )
� The tenor and distribution of mineralisation already identified is anticipated to facilitate fast tracking of JORC resource definition activities and if successful, potential economic extraction by open pit.
� Southern has acquired AEPL’s comprehensive technical database which contains detailed geophysical, geochemical and drilling information and will enable detailed exploration programme planning to take place aimed at fast tracking resource delineation activities over the next 12 18 months.
� Given the proximity of Cannon Gold Mine, it is anticipated that any gold resources defined at Glandore will have potential for economic extraction.

Southern Gold’s Managing Director, Simon Mitchell commented:

“ This important transaction provides Southern Gold with an advanced set of projects with very valuable and extensive drilling information and the potential to advance to JORC resource status relatively quickly. Given the amount and quality of drilling information available we see a unique opportunity to define open pit resources and, because of the proximity to our Cannon Gold Mine and other district infrastructure, the opportunity to move another project into production. We are excited by the prospect of new ore sources and ensuring our cash flow is sustainable into the medium term.”

Glandore Farm In and JV Agreement with Aruma Exploration Pty Ltd

Southern is pleased to announce the signing of a binding Farm In and Joint Venture Agreement (“FJV” or “the Agreement”) with Aruma Exploration Pty Ltd (“AEPL”). AEPL is a wholly owned subsidiary of Aruma Resources Ltd, an ASX listed exploration company (ASX code “AAJ”). Southern Gold is to earn up to a 90% interest in a package of tenements immediately east of Southern’s Bulong Project ( Figure 1 ). The JV area covers approximately 28.7 km[2 ] of highly prospective exploration terrain consisting of 14 tenements (Appendix 2), situated on the south western shore of Lake Yindarlgooda, approximately 37km east of Kalgoorlie and 8km southeast of Bulong township.

Exploration by AEPL and earlier explorers has identified a number of significant zones of near surface mineralisation plus other targets that include potentially economic gold intersections which have not been subject to detailed economic evaluation.

Figure 1 : Location of Glandore JV Area with respect to Kalgoorlie and SAU’s Bulong Project

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Work undertaken to date by Aruma and previous explorers has included fluid flow modelling, structural analysis, geophysical data interpretation, geological mapping, geochemical sampling and auger, aircore, reverse circulation (RC) and diamond drilling.

The Company believes that the likely conceptual exploration target size present may be of the order of 500,000 to 2,500,000 tonnes with grades in the range of 2.4 – 3 g/t Au (or 50koz – 200koz Au located in several deposits). This exploration target is not a mineral resource and is conceptual in nature. The estimate is based on the substantial body of information generated by previous explorers that is publically available either in ASX announcements or via the Western Australian Department of Mines and Petroleum WAMEX web site. Details of all previous exploration undertaken in the JV area is summarised in Table 1 of Appendix 1 and the supporting details relating to sampling, analytical and drilling quality and location reliability are shown in Appendix 2. All significant assays are listed in the accompanying tables and plans of Appendix 1. The cross sections and plans shown in Appendix 1 are believed to adequately show the range of widths and grades intersected to date. The exploration

carried out to date is insufficient to estimate a resource and it is uncertain whether further exploration will result in the estimation of a resource.

Future exploration activities that will test the validity of this exploration target will focus predominantly on drill testing of the mineralisation zones by reverse circulation and diamond drilling, expected to be completed over the 12 18 months.

Glandore Farm In and Joint Venture (SAU earning up to 90%) – Summary of Terms

Southern is to make a cash payment of $100,000 within 10 business days of 1 April 2016.
Southern can earn up to 90% by expending a further $1.2M in three tranches within three years:
Tranche 1: Southern to spend a minimum of $300,000 qualifying expenditure (Form 5 declared expenditure under the WA regulatory system) in the first year (or earlier) to earn a 50% interest in the tenement package;
Tranche 2: Southern to spend a further $400,000 qualifying expenditure in the second year (or earlier) to earn an additional 25% for a total 75% interest in the tenement package at which point AEPL can elect to retain its 25% interest and a joint venture will commence in which the respective joint venture interests will be SAU 75% and AEPL 25%;
Tranche 3: If AEPL elects not to retain its 25% interest in the tenement package Southern is to spend a further $500,000 qualifying expenditure in the third year (or earlier) to earn an additional 15% interest for a total 90% interest in the tenement package.
Once Southern has earned in total a 90% interest in the tenement package AEPL may elect to:
retain its 10% interest, in which case a joint venture will commence in which the respective joint venture interests will be SAU 90% and AEPL 10%;
sell it’s 10% interest, subject to a pre emptive right in SAU’s favour; or
convert its 10% interest into a 1.25% net smelter return style royalty on all products derived from the then tenement package, in which case SAU will have 100% ownership of the tenement package.
At any point after Tranche 1, and so long as the tenement package is in good standing, Southern has a right to withdraw but would forfeit any interest it had earned in the tenement package.
The terms of the joint venture aspects of the Agreement are substantially in the form of the Australian Mining and Petroleum Law Association model document. Both parties have an obligation to contribute to joint venture expenditure in proportion to their joint venture interests with rights to elect to dilute, on a straight line basis, in respect of a particular programme and budget. Southern will be the manager of the joint venture if it arises.
As the tenement package includes 3 mining leases the Agreement is subject to in principle Ministerial approval being obtained within one month for the transfer of the interests in those mining leases which Southern earns in accordance with the Agreement. Southern will seek that in principle approval shortly.

It is important to note that the farm in and joint venture arrangement will be entirely funded by Southern Gold from internal cash resources, with no need to raise any additional funding to fulfil the above farm in requirements.

Glandore Project Technical Summary

The Company believes the Glandore Project offers one of the best near term new development opportunities currently known in close proximity to operating mills in the Kalgoorlie district. In addition to the known mineralisation, work carried out by Aruma and previous explorers has highlighted the potential for the area to host additional mineralisation. This belief and potential are supported by:

The presence of significant widths and grade of near surface supergene style mineralisation at three locations (Table 1 and Appendix 1);
The grades and widths of supergene mineralisation are likely to be amenable to mining by open
pit methods and is anticipated to be free milling;
Ore grade intersections (>1g/t Au) untested at depth or along strike in multiple locations (Table 1 and Appendix 1); and
Modern modelling techniques employed by Aruma have highlighted the presence of extensive alteration pathways which will facilitate more regional exploration targeting.

Figure 2 Glandore Gold Project Tenements and Basement Geology

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Table 1 – Selected High Grade Intersections

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Zone Hole Au Intercept
Axial Planar GDJD336 10.25m @ 10.3 g/t from 58m
Axial Planar GDJD339 1.0m @ 10.9 g/t from 103.9m
Axial Planar GDJD340 4.8m @ 2.84 g/t from 81m
Axial Planar GDJD343 1.2m @ 12.5 g/t from 92.5m
7m @ 2.61 g/t from 49m
Axial Planar GDJD81 10m @ 1.55 g/t from 88m
3m @ 4.63 g/t from 106m
1m @ 1.01 g/t from 96m,
Axial Planar HGRC032 4m @ 18.8 g/t from 101m ,
incl.2m @ 36.98 g/t from 103m
20m @ 4.6 g/t from 12m
Supergene EGRC004
incl. 6m @ 13.6 g/t from 18m
Supergene HGRC014 9m @ 8.37g/t from 17m
8m @ 1.6 g/t from 30m
27m @ 1.8 g/t from 12m,
Supergene HGRC017
incl. 7m @ 4.2 g/t from 18m,
incl. 6m @ 2.0 g/t from 33m
Supergene HGRC107 2m @ 43.4 g/t from 38m
5m @ 4.99 g/t from 37m,
incl. 2m @ 9.45 g/t from 37m,
Supergene HGRC117
1m @ 1.28 g/t from 56m,
5m @ 2.54 g/t from 65m
Supergene HGRC124 2m @ 6.07 g/t from 72m
Central Fault GDJC10 9m @ 4.22 g/t from 13m
7m @ 2.48 g/t from 24m,
Central Fault HGRC18 incl. 3m @ 3.1 g/t from 25m,
incl. 1m @ 5.7 g/t from 27m
7m @ 1.42 g/t from 25m,
Central Fault HGRC22 incl. 2m @ 2.19 g/t from 25m,
incl. 1m @ 2.9g/t from 28m
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Note Details of Company responsible, coordinates and grid details are shown in Appendix 1

A short list of follow up targets would include:

Down dip / plunge from the 4m @ 18.8g/t Au intersection in HGRC032 and 10.25m @ 10.3g/t Au intersection in GDJD336 at the Axial Planar project (see Table 1 and Appendix 1 Figure 7a);
Down dip / plunge and along strike from the 2m @ 43.4g/t Au intersection in HGRC107 at the Supergene Zone (see Table 1 and Appendix 1 Figure 9);
Extensions to the 9m @ 4.22g/t Au intersection in GDJC10 Central Fault Zone (see Table 1 and Appendix 1 Figure 12); and
Follow up on open intercepts such as 2m @ 1.83g/t Au intersection in GDJC10 at Eastern Zone and 5m @ 35.8g/t Au intersection in GP61B at Lake Consols shaft (see Appendix 1 Figure 15).

Following the signing of the agreement, Southern Gold’s Managing Director, Simon Mitchell commented:

“ This agreement with AEPL provides Southern Gold with the potential to rapidly grow our resource base while we continue to evaluate targets already identified at our Bulong and Cowarna Projects. Southern Gold considers the mineralisation located to date at Glandore has the potential to be advanced to JORC 2012 compliant resources over the next 12 18 months.

In addition to the identified mineralisation, the Glandore JV tenements are believed to have excellent potential for significant economic discoveries and they further strengthen the Company’s tenement holding in one of the world’s most prolifically gold mineralised provinces.

The Glandore Gold Project represents a very exciting opportunity for the company and really opens the door to a new stage of our corporate development. Investors should expect more of the same as we build the Southern Gold business into a sustainable and highly profitable gold production story.”

Competent Person’s Statements

The information in this report that relates to Exploration Results and Exploration Targets has been compiled under the supervision of Mr. Ian Blucher (MAusIMM). Mr Blucher, who is an employee of Southern Gold Limited and a Member of the Australian Institute of Mining and Metallurgy, has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he has undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code for the Reporting of Mineral Resources and Ore Reserves. Mr Blucher consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

Forward looking statements

Some statements in this release regarding estimates or future events are forward looking statements. These may include, without limitation:

Estimates of future cash flows, the sensitivity of cash flows to metal prices and foreign exchange rate movements;
Estimates of future metal production; and
Estimates of the resource base and statements regarding future exploration results.

Such forward looking statements are based on a number of estimates and assumptions made by the Company and its consultants in light of experience, current conditions and expectations of future developments which the Company believes are appropriate in the current circumstances. Such statements are expressed in good faith and believed to have a reasonable basis. However the estimates are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from estimated results.

All reasonable efforts have been made to provide accurate information, but the Company does not undertake any obligation to release publicly any revisions to any “forward looking statement” to reflect events or circumstances after the date of this release, except as may be required under applicable laws. Readers should make their own enquiries in relation to any investment decisions from a licensed investment advisor.

Appendix 1 Glandore Farm In and JV – Technical Background Paper

Regional Geology

The Glandore project is located within the Eastern Goldfields Province of the Archaean Norseman Wiluna Greenstone Belt. The greenstone belt has been subdivided into a number of geological terrains separated by regional faults, including the Gindalbie Terrain, the Kurnalpi Terrain and the Edjudina/Linden Terrains (Swager, 1995). The Glandore project lies within the Gindalbie Terrain. The Gindalbie Terrain consists of a lower mafic to felsic volcanic sequence overlain by a thick ultramafic to mafic succession known as the Bulong Complex. The low angle Hampton Fault is regarded as the contact between the two sequences (Swager, 1995). Both sequences have been folded into a broad, north south plunging anticline (D2) known as the Bulong Anticline. The Glandore project overlies the western limb of the anticline and covers a greenstone succession comprising a layered mafic sill that is overlain by a package of mafic and intermediate volcanic and volcaniclastic rocks ( Figure 1 ). The deformation history of the Gindalbie Terrain is complicated by numerous faults and tight to very tight folding (Swager, 1995).

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Figure 1: Glandore Regional Geology and JV Tenements

Geology and Structure

The geology of Glandore area consists of peridotite, talc chlorite schist, gabbro, dolerite, quartz dolerite, shale, basalt, felsic to intermediate volcaniclastics, felsic dykes and granitic intrusives. The ultramafic lithologies of the Bulong Complex are located to the west of the project area and comprise a series of cumulate textured peridotites. These rocks are in faulted contact with a sequence of felsic to intermediate volcaniclastic rocks which represents a D1 thrust – the Hampton Fault. The felsic to intermediate volcaniclastic rocks are the youngest in the stratigraphic sequence, post dated only by felsic dykes and granitoid intrusives. The volcaniclastics overlie a unit of basalt that is approximately 500m thick which is generally massive and aphanitic. Underlying the basalt is a 50 150m thick unit of fine grained sediments. Below the basalt and shale is a layered mafic sill (informally named the Glandore Sill) that is broadly conformable with the overlying stratigraphy. The layered sill is at least 650m thick and can be broadly subdivided into two rock types, an upper unit of gabbro that ranges in thickness from 90 120m and a lower unit of differentiated dolerite (melanodolerite upper, leuco dolerite – middle and cumulate dolerite – lower unit) that is at least 500m thick ( Figure 1 ).

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Figure 2: Fluid Pathways Derived from CSIRO’s HyVista Modelling

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Mineralisation and Alteration

Mineralise d zones in fr e sh rock are characteris e d by biotite pyrite alter a tion +/ pyr r hotite and arsenopyri t e. Brittle q u artz pyrite v eins with w e ll develop e d ankerite sericite bioti t e pyrite alt e ration haloes gen e rally host z o nes of gold mineralisati o n of between 1 to 5g/t Au; interval s of low gra d e mineralisat i on (0.5 to 1 g /t Au) are u sually host e d within qu a rtz pyrite v e ins and bre c cias. The brecciation is accompa n ied by perv a sive biotite dominant a nkerite pyr i te alteratio n . Higher gr a de mineralisat i on (10 to 5 0 g/t Au) is h o sted by qu a rtz arsenop y rite pyrite v eins that cr o ss cut veining and alteration associated w i th medium g rade mineralisation. Similar to the Kalgoorlie G olden Mile, the localisation of gold min e ralisation appears to b e partly controlled by str a tigraphy, w ith the melanodol e rite and ga b broic phases of the Gla n dore Sill be i ng the mos t prospectiv e .

Previous Exploration

Substantial exploration has been u n dertaken o v er the Glan d ore area pr i or to AAJ’s t enure resul t ing in the delinea t ion of thre e significant z ones of mi n eralisation: “Axial Planar Fault”, “Supergene”, “ C entral Fault” and n umerous individual int e rsections, w hich with further work m ay offer p o tential upsi d e ( Figures 6 to 10 and Table 2 ). A po t ential fourt h zone of si g nificant mineralisation ( “ Eastern Lo d e”) has also been l o cated ( Figures 12 & 13, Table 5 ), h o wever, the g eometry of the zone is s till uncertain. Aruma’s re c ent work focused on ut i lising new e x ploration t o ols which s u ccessfully d elineated a number of fluid pat h ways, addi n g significan t ly to the un d erstanding of the struc t ural frame w ork of the a rea and provides a f oundation o n which to r e evaluate h istorical re s ults ( Figures 2 & 3 ).

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Figure 3: Drill Targets Derived From Fluid Flow Modelling (Target = Pink & Yellow, Aruma drilling = blue dots, Previous drilling black dots)

Table 1: Previous Exploration – Glandore Project Area

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Company Period Exploration Activities
Lynas Gold NL Gridding, rock chip sampling, petrology.
1986 – 1987
(“Lynas”) Shallow RC drilling 37 holes for 1,241m.
Aerial photography.
Gridding and geological mapping.

Melbourne Exploration NL Rock chip sampling 420 samples.
1987 –1989
(“Melbourne”) Ground magnetics.
Costeans – 99 costeans for 2979m.
RAB Drilling (81 holes, vertical) for 850m.
Establish accurate AMG baselines.
Geological Mapping.
Ground and aeromagnetic surveys.
Western Mining Corporation
1989 – 1995 Auger and soil sampling (~9,600 samples).
(“WMC”)
AC and RC drilling – 464 holes.

Diamond drilling 51 holes for 8,487m.
Mineralogical & petrographic samples.

Acquisition of multi client aeromagnetic data.
Roebuck Resources Structural interpretation of aeromagnetics.
1996 1998
(“Roebuck”) Scout RAB drilling, 10 holes for 80m.
Rock chip sampling – 69 samples.
Auger soil samples – 490.
RAB drilling – 104 holes for 2,904m.
AC drilling – 30 holes for 777m.
RC drilling – 39 holes for 6,149m.
AngloGold Australia Limited Geological mapping.
2002 2003
(“Anglo”) Airborne magnetic, radiometric and DTM surveys.
2002 2003 RC drilling – 3 holes for 537m.
Diamond drilling – 6 holes for1,253.5m.
RAB drilling – 51 holes for1,700m.
TFMMR Survey.
Hemisphere Resources Limited 2007 2010 RC drilling.
(“HEM”) Three dimensional modelling.
AC drilling – 67 holes for 2,519m
RC 121 holes, 10,476m
Aruma Exploration Ltd
2010 Current Diamond drilling – 1 hole for 1208.8 m
(“Aruma”)
Hyvista survey and fluid flow modelling in conjunction
with CSIRO.
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Axial Planar Fault

The Axial P l anar Fault m ineralisation dips abou t 60 degrees to the sout h west and is located approxima t ely 220m fr o m the shor e of Lake Yindarlgooda w ith bedrock obscured b y 0.5m of la k e clays. Mineralisation dips ste e ply to the S W , strikes N W and is int e rpreted to b e an axial p lanar fault w ithin melanodol e rite in the hinge zone o f the Glando r e antiform ( Figure 4 ). T he zone ha s been intersected by drilling ove r a strike length of appr o ximately 40 0 metres, to a maximum depth of ar o und 150m below surface an d is open at d epth. Drilli n g to date s u ggests the p resence of a gold deple t ed zone in the top 30m. The b est intersec t ion below the zone of d epletion is 1 0.25m @ 1 0 .3g/t Au from 58m (Table 2).

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Figure 4: Relationship of main mineralised zones, geology and historical drilling

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Figure 5: Axial Planar and Supergene Zone Drilling

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 Figure 6: Interpreted Structural Contours Axial Planar Mineralisation (After Watchorn, 2007)

Table 2: Axial Planar Fault Zone Drill Intercepts

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Easting Northing
Hole Au Intercept Company
(AGD 84) (AGD 84)
GDJD259 391,640 6,595,700 0.6m @ 6.80 g/t from 68.2m WMC
GDJD260 391,620 6,595,700 3.3m @ 1.97 g/t from 90.7m WMC
GDJD336 391,703 6,595,626 10.25m @ 10.3 g/t from 58m WMC
GDJD339 391,644 6,595,647 1.0m @ 10.9 g/t from 103.9m WMC
GDJD340 391,702 6,595,606 4.8m @ 2.84 g/t from 81m WMC
GDJD341 391,702 6,595,586 1.7m @ 3.30 g/t from 105.7m WMC
GDJD342 391,701 6,595,566 2.75m @ 2.57 g/t from 125.8m WMC
GDJD343 391,660 6,595,648 1.2m @ 12.5 g/t from 92.5m WMC
GDJD344 391,703 6,595,643 6.0m @ 1.79 g/t from 54m WMC
3.3m @ 0.86 g/t from 55.7m
GDJD345 391,659 6,595,689 WMC
0.8m @ 3.89 g/t from 62.1m
GDJD348 391,660 6,595,710 1.6m @ 3.61 g/t from 48.4m WMC
0.6m @ 2.39 g/t from 31.4m
GDJD351 391,620 6,595,751 WMC
0.3m @ 1.13 g/t from 67.1m
GDJD352 391,620 6,595,711 0.6m @ 1.27 g/t from 81.2m (To EOH) WMC
GDJD353 391,659 6,595,570 3.9m @ 1.23 g/t from 167.1m WMC
7m @ 2.61 g/t from 49m
GDJD81 391,540 6,595,899 10m @ 1.55 g/t from 88m WMC
3m @ 4.63 g/t from 106m
EGRC002 391,731 6,595,525 2m @ 2.21 g/t from 100m Anglo
HGRC029 391,646 6,595,637 1m @ 0.49 g/t from 21m HEM
1m @ 1.12g/t from 43m HEM
1m @ 0.73 g/t from 61m HEM
13m @ 0.34 g/t from 22m
Incl. 4m @ 0.5 g/t from23m,
HGRC030 391,656 6,595,646 HEM
3m @ 1.67 g/t from 78m,
Incl. 1m @ 2.43 g/t from 79m
3m @ 0.45 g/t from 22m,
HGRC031 391,669 6,595,658 5m @ 0.86 from 62m, HEM
incl. 1m @ 2.43 g/t from 62m
1m @ 1.01 g/t from 96m,
HGRC032 391,816 6,595,746 4m @ 18.8 g/t from 101m, HEM
incl.2m @ 36.98 g/t from 103m
1m @ 0.28 g/t from 28m,
HGRC033 391,691 6,595,605 HEM
1m @ 0.63 g/t from 55m
HGRC034 391,705 6,595,630 3m @ 0.93 g/t from 42m HEM
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Note: HEM drill coordinates in GDA90

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Figure 7a: Axial Planar mineralisation along Section A – A’ (After Watchorn, 2007)

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Figure 7b: Axial Planar mineralisation at 391,700m E (After Watchorn, 2007)

The Supergene Zone

The Supergene Zone comprises an area of approximately 50m by 130m and lies around 6m to 14m below surface ( Figures 8 10 ). The zone is located approximately 80m from the shore of Lake Yindarlgooda and is overlain by approximately 1m of lake sediments.

Multiple near surface intercepts have been recorded with notable, significant intersection, such as 20m @ 4.6g/t Au from 12m (including 6m @ 13.6g/t Au from 18m), 9m @ 8.37g/t Au from 17m and 2m @ 43.4 g/t Au from 38m ( Table 3 ).

Table3: Supergene Zone Drill Intercepts

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Hole Easting Northing Au Intercept Company Comments
(AGD 84) (AGD 84)
EGRC003 391,690 6,595,495 4m @ 2.11 g/t from 14m Anglo
20m @ 4.6 g/t from 12m
EGRC004 391,649 6,595,466 Anglo
incl. 6m @ 13.6 g/t from 18m
GDJD329 391,640 6,595,420 6m @ 1.17 g/t from 7m WMC
GDJC289 391,639 6595,418 8m @ 0.72 g/t from 8m WMC
GDJC290 391,679 6595,420 6m @ 1.04 g/t from 10m WMC
4m @ 1.06 g/t from 6m
GDJC357 391,639 6,595,379 WMC Vertical
6m @ 0.76 g/t from 16m
GDJC363 391,680 6,595,461 4m @ 1.06 g/t from 20m WMC Vertical
8m @ 0.59 g/t from 18m
GDJC364 391,640 6,595,461 WMC Vertical
6m @ 2.83 g/t from 32m
HGRC10 391656 6595480 2m @0.8 g/t from 22m HEM Vertical
HGRC11 391656 6595460 17m @ 0.5 g/t from 19m HEM Vertical
HGRC12 391680 6595475 1m @ 1.4 g/t from 18m HEM Vertical
HGRC13 391640 6595440 1m @ 1.0 g/t from 16m HEM Vertical
HGRC014 391,777 6,595,637 9m @ 8.37 g/t from 17m HEM Vertical
HGRC15 391625 6595460 10m @ 0.4 g/t from 23m HEM Vertical
8m @ 1.6 g/t from 30m
27m @ 1.8 g/t from 12m,
HGRC017 391650 6595467 HEM Vertical
incl. 7m @ 4.2 g./t from 18m,
incl. 6m @ 2.0 g/t from 33m
HGRC105 391649 6595509 2m @ 1.2g/t from 20m HEM
HGRC106 391,773 6,595,656 3m @ 2.42 g/t from 9m HEM
HGRC107 391,763 6,595,649 2m @ 43.4 g/t from 38m HEM
5m @ 4.99 g/t from 37m,
incl. 2m @ 9.45 g/t from 37m,
HGRC117 391,770 6,595,592 HEM
1m @ 1.28 g/t from 56m,
5m @ 2.54 g/t from 65m
2m @ 1.32 g/t from 2m,
HGRC118 391,756 6,595,598 4m @ 1.25 g/t from 38m, HEM
1m @ 0.53 g/t from 65m
HGRC130 391,763 6,595,649 3m @ 1.26 g/t from 15m HEM
HGRC124 391,781 6,595,572 2m @ 6.07 g/t from 72m HEM
HGRC125 391,793 6,595,569 2m @ 2.38 g/t from 25m HEM
HGRC131 391,778 6,595,579 7m @ 1.07 g/t from 9m HEM
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Note: HEM drill coordinates in GDA90

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Figure 8: Plan of the Supergene Zone (after Watchorn, 2008)

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Figure 9: Supergene Zone Longitudinal Projection A A’ (After Watchorn, 2008)

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|||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
|Figure 10: Supergene Zone Cross section B B’ (After Watchorn, 2008)|
|Fault Zone|
|Fault Zone|i|s marked b|y|anomalous soil sample results coinsoil sample results coinresults coin|c|ident with|a|geophysic|a|l|
|ide spaced|R|AB, aircore|and RC hol|e|s show nea|r|surface int|e|rsections o|f|significant|g|old|
|b|est previo|u|sly reporte|d|results are|9|m @ 4.22g|/|t Au from 13m (GDJC13m (GDJC1|0|) and 7m @ 2.48g/t 2.48g/t|
|m|(HGRC18) ( (|Figure 11 and Table 4nd Table 4|)|.|
|Table 4: Central Zone Drill Intercepts|
|Easting|Northing|
|Hole|Au Intercept|Company|
|(AGD 84)|(AGD 84)|
|GDJC5|392,180|6,591,920|9m|@|0.81 g/t from 1m|WMC|
|1m @ 1.06 g/t from|1|0m|
|GDJC8|392,185|6,591,960|WMC|
|3m @ 1.64 g/t from|1|6m|
|GDJC9|392,160|6,592,000|6m|@|0.90 g/t from 3m|WMC|
|GDJC10|392,180|6,592,000|9m @ 4.22 g/t from|1|3m|WMC|
|7m @ 2.48g/t from|2|4m,|
|HGRC18|392200|6592000|incl. 3m @ 3.1 g/t fro|m|25m,|HEM|
|incl. 1|m|@ 5.7g/t fro|m|27m|
|7m @ 1.49 g/t from|2|5m,|
|HGRC19|392200|6591980|incl. 1m|@|2.19 g/t fro|m|25m,|HEM|
|incl. 1m|@ 3.85 g/t fro|m|27m|
|1m @ 1.88 g/t from|1|4m,|
|HGRC20|392185|6591980|HEM|
|4m @ 1.48 g/t from|1|9m|
|HGRC21|392170|6591980|2m @ 1.05 g/t from|1|5m|HEM|
|7m @ 1.42 g/t from|2|5m,|
|HGRC22|392200|6591960|incl. 2m @ 2.19 g/t fro|m|2m5,|HEM|
|incl. 1|m|@ 2.9g/t fro|m|28m|
|1m|@|2.3 g/t from 22m,|
|HGRC24|392200|6592020|HEM|
|2m|@|4.0g/t from 25m|
||17||

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The Central Fault Zone

The Central Fault Zone i s marked b y anomalous soil sample results coinsoil sample results coinresults coin c ident with a geophysic a l anomaly. W ide spaced R AB, aircore and RC hol e s show nea r surface int e rsections o f significant g old grade. The b est previo u sly reporte d results are 9 m @ 4.22g / t Au from 13m (GDJC13m (GDJC1 0 ) and 7m @ 2.48g/t 2.48g/t Au from 24 m (HGRC18) ( ( Figure 11 and Table 4nd Table 4 ) .

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ure 11: Central Fault Zone Drilling [Histroical Map Reproduction]al Fault Zone Drilling [Histroical Map Reproduction] Drilling [Histroical Map Reproduction]roical Map Reproduction]production]
6m @ 0. 9 g/t
9m @ 4 . 22g/t Au
2m @ 0.4/t Au
12: Near surface Central Fault Zone Drill Intercepts at 6,592,000mNface Central Fault Zone Drill Intercepts at 6,592,000mNault Zone Drill Intercepts at 6,592,000mNill Intercepts at 6,592,000mNat 6,592,000mNN
18
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Figure 11: Central Fault Zone Drilling [Histroical Map Reproduction]al Fault Zone Drilling [Histroical Map Reproduction] Drilling [Histroical Map Reproduction]roical Map Reproduction]production]

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Figure 12: Near surface Central Fault Zone Drill Intercepts at 6,592,000mNface Central Fault Zone Drill Intercepts at 6,592,000mNault Zone Drill Intercepts at 6,592,000mNill Intercepts at 6,592,000mNat 6,592,000mNN

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Eastern Lode

The Easter n Lode Zone is an apparently relative l y continuo u s zone of m o derately e a st dipping s h ear hosted min e ralisation w ithin the m e lanodiorite phase of th e Glandore S ill on the ea s tern limb o f the anticline ( Figure 12 ).

RC and dia m ond holes d rilled by W M C and Ang l o show intersections wi t hin the Eas t ern Lode Zone ( Table 5 ) ranging from 1 to 13m do w n hole at g o ld grades r a nging from approximat e ly 0.8 to 3. 2 g/t. Many of th e holes intersecting the E astern Lod e Zone were drilled to th e east, obliq u ely down dip of the structure a n d showed i n tersections of less cont i nuous subsidiary miner a lisation.

At the nort h ern end of t he zone, ar o und 400m o f strike have been intersected by a p proximatel y 100 to 150m spac e d drill lines. The northe r n extents a r e interpret e d to be ter m inated by a diorite intr u sion. The southe r n extents a r e poorly de f ined with v e ry widely s p aced, shall o w drilling s u ggesting it m ay continue a f urther 800 m to the sou t h, for a tot a l strike leng t h of approximately 1.2 k m. Drilling in t h e region of the East Lo d e Zone incl u des WMC a i rcore holes drilled on L a ke Yindarlg o oda which sho w mineralise d gold grade s at end of hole, such as GDJC378 and GDJC386 w ith end of h ole gold assays of 3.20 and 1.83 g/t ( Table 5, Figures 13 & 14 ).

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Figure 13: Eastern Lode Drilling [Histroical Map Reproduction]

Table 5: Eastern Lode Intercepts

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Easting Northing
Hole Au Intercept Company Comments
(AGD 84) (AGD 84)
10m @ 3.05 g/t from 150m
EGRC005 391,856 6,595,436 Anglo
incl. 3m @ 6.56 g/t from 155m
EGRC006 391,815 6,595,407 2m @ 3.08 g/t from 118m Anglo
EGRC014 392,032 6,595,188 12m @ 1.2 g/t from 166m Anglo
1m @ 1.82 g/t from 72m
EGRC015 391,978 6,595,146 10m @ 1.33 g/t from 82m Anglo
7m @ 0.52 g/t from 97m
EGRC021 391,986 6,595,340 13m @ 2.12 g/t from 118m Anglo
EGRC024 392,058 6,595,206 10m @ 2.2 g/t from 198m Anglo
EGRC025 392,120 6,595,253 7m @ 0.89 g/t from 134m Anglo
2m @ 1.95 g/t from 96m
EGRC026 392,058 6,595,393 Anglo
8m @ 1.91 g/t from 106m
EGRC027 392,061 6,595,205 7m @ 1.19 g/t from 95m Anglo
EGRC029 392,101 6,595,101 2m @ 0.72 g/t from 107m Anglo
4m @ 1.69 g/t from 142m
EGRC030 392,151 6,595,100 Anglo
6m @ 1.05 g/t from 149m
EGRC031 392,130 6,595,001 4m @ 0.8 g/t from 142m Anglo
EGRC032 392,200 6,595,000 2m @ 1.32 g/t from 186m Anglo
EGRC034 392,201 6,594,904 3m @ 1.23 g/t from 175m Anglo
6m @ 2.08 g/t from 27m,
GDJC38 392,000 6,595,100 WMC
4m @ 0.78 g/t from 47m
GDJC39 391,999 6,594,999 1m @ 0.58 g/t from 53m WMC
GDJC40 391,959 6,594,999 6m @ 1.33 g/t from 34m WMC
GDJC42 391,962 6,594,899 3m @ 0.90 g/t from 8m WMC
GDJC43 391,998 6,594,899 4m @ 0.85 g/t from 42m WMC
8m @ 0.76 g/t from 2m,
GDJC378 392,000 6,594,300 WMC Vertical
2m @ 3.20 g/t from 30m (to EOH)
GDJC386 392,119 6,594,200 1m @ 1.83 g/t from 24m (to EOH) WMC Vertical
GDJD104 391,999 6,595,399 11m @ 1.77 g/t from 72m Anglo
GDJD107 392,118 6,595,199 5m @ 2.21 g/t from 126m Anglo
GDJD334 392,039 6,595,398 2.2m @ 1.53 g/t from 102m Anglo
1m @ 1.77 g/t from 19m
HGRC141 392,108 6,595,517 HEM
4m @ 1.41 g/t from 50m (to EOH)
2m @ 1.79 g/t from 65m
HGRC143 392,028 6,595,586 HEM
1m @ 2.2 g/t from 69m
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Note: HEM drill coordinates in GDA90

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2m @ 1 . 83g/t Au
ne Drilling (Lake Yindarlgooda)ke Yindarlgooda)oda)
e s associated with northwest trendid with northwest trendiwest trendi n g faults loc a ted by
rpreted as b eing potentially compaially compa r able to the A xial
of an inters e ction of 5 m @ 35.8g/t A u from 24 m along
rade of 22 g /t Au). It is believed thbelieved th a t this zone w as
e vicinity of Lake Consols Shaft f Lake Consols Shaft ls Shaft
Au Intercept Company
5m @ 35.8 g/t from 2 4 m Melb o urne
5m @ 1.58 g/t from 2 3 m W M C
2m @ 2.24 g/t from 1 3 m An g lo
1m @ 2.16 g/t from 3 0 m An g lo
2m @ 4 .94 g/t from 3 m An g lo
1m @ 7.57 g/t from 3 1 m H E M
1m @ 6.63 g/t from 2 6 m H E M
1m @ 2.31 g/t from 2 8 m H E M
2m @ 2.32g/t Au
5m @ 35.8 g /t Au
Lake Consols Shafts Shaft
21
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2m @ 1 . 83g/t Au Figure 14: Eastern Zone Drilling (Lake Yindarlgooda)ke Yindarlgooda)oda)

Other targets

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In addition t o intercept s of significant gold grad e s associated with northwest trendid with northwest trendiwest trendi n g faults loc a ted by earlier RAB and RC drill i ng which have been int e rpreted as b eing potentially compaially compa r able to the A xial Planar Faul t (Table 2), H EM noted t h e presence of an inters e ction of 5 m @ 35.8g/t A u from 24 m along strike from the Lake Co n sols shaft ( m ined gold g rade of 22 g /t Au). It is believed thbelieved th a t this zone w as subsequen t ly stoped b y prospector s .

Table 6: Intercepts in the vicinity of Lake Consols Shaft f Lake Consols Shaft ls Shaft

Hole	Easting (AGD84 )	Northing (AGD84)	Au Intercept	Comp any
GP61 B	390,80 1	6,592,896	5m@3 5.8g/t from 24 m	Melbo urne
GDJC1 7	390,60 0	6,593,200	5m@1 .58g/t from 23 m	WM C
EGRB1 08	390,92 0	6,593,198	2m@2 .24g/t from 13 m	Ang lo
EGRB1 09	390,88 0	6,593,200	1m@2 .16g/t from 30 m	Ang lo
EGRB1 38	390,78 0	6,594,700	2m@ 4 .94g/t from 3m	Ang lo
HGRC0 48	390800	6592980	1m@7 .57g/t from 31 m	HE M
HGRC0 51	39078 39081 2 8	6593005 6592952	1m @ 6 1m@2 .63 g/t from 26 .31 g/t from 28 m m	HE HE M M
HGRC0 52

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Figure 15: Lake Consols Shafts Shaft

References

Swager, C.P., 1995, Geology of the greenstone terrains in the Kurnalpi Edjudina region, southeastern Yilgarn Craton: Western Australia Geological Survey. GSWA Report 47, 31p.

Swager, C.P., Witt, W.K., Griffin, T.J., Ahmat, A.L., McGoldrick, P.J. and Wyche, S., 1990a, Stratigraphy and structure of the late Archaean Kalgoorlie Terrain, Southeastern Yilgarn Craton, W.A., in Glover J.E. and Ho S.E., (eds) Third International Archaean Symposium, Perth 1990. p. 85 87.

Swager, C.P., Griffin, T.J., Witt, W.K., Wyche, S., Ahmat, A.L., Hunter, W.M., and McGoldrick, P.J., 1990b, Geology of the Archaean Kalgoorlie Terrain an explanatory note: Western Australia Geological Survey. GSWA Record 1990/12, (reprinted in 1995 as Geological Survey of Western Australia Report 48) 55p.

Watchorn, R., 2007. Annual Report for the Period 1 September 2006 to 31 August 2007. Glandore Project P25/1581, P25/1582, P25/1583, P25/1584, P25/1585, P25/1586, P25/1587, P25/1588, P25/1589, P25/1590, P25/1620, P25/1778, P25/1779, P25/1780, P25/1781, P25/1782, P25/1806, P25/1807. Combined Report No: C93/2000 – Epis Glandore. 19p.

Watchorn, R., 2008. Glandore Project, Western Australia. Annual report for the year ended 15 August, 2008, C93_2000 .29p.

Appendix 2 JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

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(Criteria in this section apply to all JORC Code explanation Commentary
succeeding sections.) Criteria
Sampling techniques � Nature and quality of sampling Lynas
(e.g. cut channels, random � Unknown.
chips, or specific specialised
Melbourne
industry standard measurement
tools appropriate to the � Chip and grab sampling –
minerals under investigation, composite sample over area
such as down hole gamma sampled. Sample locations
sondes, or handheld XRF recorded in local grid
instruments, etc.). These coordinates.
examples should not be taken � Trench sampling – 2 or 4m
as limiting the broad meaning of composites.
sampling. � RAB sampling– 4m composites.
� Include reference to measures
� RC sampling – 1m samples,
taken to ensure sample
collection method unknown.
representivity and the
appropriate calibration of any WMC
measurement tools or systems � RC sampling – 1m samples.
used. Collection method unknown.
� Aspects of the determination of � Core sampling – Half and
mineralisation that are Material quarter splits, at 1m downhole
to the Public Report. intervals or controlled by
� In cases where ‘industry geological boundary’s.
standard’ work has been done Roebuck
this would be relatively simple � RC sampling – 1m samples taken
(eg ‘reverse circulation drilling
from cyclone and tube sampled
was used to obtain 1 m samples
from sample piles. Generally
from which 3 kg was pulverised
composited over 3m.
to produce a 30 g charge for fire
Anglo
assay’). In other cases more
explanation may be required, � Chip sampling – spot samples.
such as where there is coarse � Soil sampling – 1kg samples
gold that has inherent sampling taken at ~ 30cm depth.
problems. Unusual commodities
� Air core – Collected from
or mineralisation types (e.g.
cyclone at 1m intervals,
submarine nodules) may
composited to 4m.
warrant disclosure of detailed
information. Hemisphere
� RC sampling – 1m samples.
Collection method unknown.
Aruma
� RC sampling 1m individual
samples were taken in calico
bags, sampled by splitter. 4m
composite samples were taken
in calico bags. Sampled by
splitter.
� Core sampling Half core.
Drilling techniques � Drill type (eg core, reverse circulation, Lynas
open hole hammer, rotary air blast, � Drilling types used Rotary air
auger, Bangka, sonic, etc) and details blast (RAB) and reverse
(eg core diameter, triple or standard circulation (RC, bit size

tube, depth of diamond tails, face unknown) undertaken by Evans
sampling bit or other type, whether Exploration.
core is oriented and if so, by what
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(Criteria in this section apply to all succeeding sections.)Criteria	JORC Code explanation	Commentary
	method, etc.).	Melbourne � RC drilling undertaken by Stanley Drilling (5.5” bit, Rotamec 50 drill rig, 290 psi) and Drillcorp (Schramm drill rig). WMC � RC drilling undertaken by “Universal”type rigs with RC precollars Roebuck � RAB drilling – 1m samples, undertaken by Evans drilling. Anglo � Air Core – Contractor and rig type unknown. Hemisphere � RC drilling – 1m samples undertaken by Andrews drilling. � No downhole surveying undertaken. Aruma � Reverse circulation, 1m RC chips � Downhole surveying at 30m intervals.
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.	Lynas � Drill sample recovery methods, representative nature of sampling, grade and sampling bias unknown. � Water table noted in some holes. Melbourne � Drill sample recovery methods, representative nature of sampling, grade and sampling bias unknown. WMC � Drill sample recovery methods, representative nature of sampling, grade and sampling bias unknown. Roebuck � Drill sample recovery methods, representative nature of sampling, grade and sampling bias unknown. Anglo � Drill sample recovery methods, representative nature of sampling, grade and sampling bias unknown.

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(Criteria in this section apply to all JORC Code explanation Commentary
succeeding sections.) Criteria
Hemisphere
� Drill sample recovery methods,
representative nature of
sampling, grade and sampling
bias unknown.
Aruma
� Company noted good RC
recovery with minimal loss
� RC Samples mostly dry, with
minor water encountered in
only deeper fresh rock
� All RC samples were riffle split.
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(Criteria in this section apply to all succeeding sections.)Criteria JORC Code explanation Commentary	(Criteria in this section apply to all succeeding sections.)Criteria JORC Code explanation Commentary	(Criteria in this section apply to all succeeding sections.)Criteria JORC Code explanation Commentary	(Criteria in this section apply to all succeeding sections.)Criteria JORC Code explanation Commentary
Hemisphere � Drill sample recovery methods, representative nature of sampling, grade and sampling bias unknown. Aruma � Company noted good RC recovery with minimal loss � RC Samples mostly dry, with minor water encountered in only deeper fresh rock � All RC samples were riffle split.
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 and percentage of the relevant intersections logged.	Lynas � Holes completely geologically logged. Features recorded included weathering, colour, and percentages of quartz veining and sulphides. Melbourne � All trench and drill samples geologically logged. WMC � All drill holes completely geologically logged using a standard format. Features logged for each sample or geological interval recorded included weathering, lithology, alteration mineralogy, structural information, mineralisation mineralogy, veining, vein mineralogy and proportions of noneconomic minerals. Schematic graphic logging of cored holes. Roebuck � Holes geologically and graphically logged. Features recorded included weathering and colour. Anglo � Holes geologically logged. Features recorded included lithology, regolith and alteration. Hemisphere � All drill holes geologically logged using a standard format. Features for each sample or geological interval recorded included weathering, lithology, alteration mineralogy, structural information,mineralisation

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

Commentary

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mineralogy and veining.
Aruma
� All holes geologically logged. All
samples logged.
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		� All holes geologically logged. All samples logged.	� All holes geologically logged. All samples logged.

Subsampling techniques and sample preparation	� If core, whether cut or sawn and whether quarter, half or all core taken. � If noncore, 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 subsampling 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/secondhalf sampling.	Lynas � RC sampled at 1m intervals. � Sampling method unknown. � Representivity and QAQC measures unknown. Melbourne � RAB sampled as 4m composites. � RC samples initially composited at 4m intervals, then re sampled and assayed at 1m intervals. � Sampling method unknown. � Representivity and QAQC measures unknown. WMC � RC sampled at 1m intervals. � Core sampled as quarter and half splits at 1m intervals. Minor resampling controlled by geological boundary’s. � Representivity and QAQC measures unknown. Roebuck � Representivity and QAQC measures unknown. Anglo � Representivity and QAQC measures unknown. Hemisphere � Representivity and QAQC measures unknown. Aruma � Industry stand methods for representivity and QAQC measures adopted.

(Criteria in this section apply to all succeeding sections.)Criteria	JORC Code explanation	Commentary
	� Whether sample sizes are appropriate to the grain size of the material being sampled.	Lynas � Sample size unknown. Melbourne � Sample size unknown. WMC � Core sample size considered appropriate. Visually poorly mineralised core bulk sampled to 5m intervals. Roebuck � Core sample size considered appropriate. Anglo � Core sample size considered appropriate. Hemisphere � Core sample size considered appropriate. Aruma � Core sample size considered appropriate.
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) and precision have been established.	Lynas � Sample analysis undertaken at R.D.G. Kalgoorlie Laboratory, using method 313, LLD of 0.005ppm. � QAQC methods unknown. Melbourne � Sample analysis undertaken at two laboratory’s: AAL Kalgoorlie by fire assay with a LLD of 0.01ppm Au. QAQC methods unknown. Genalysis by method B/AAS with a LLD of 0.01ppm Au. 1 in 10 or 1 in 20 samples repeat assayed. Internal laboratory standards used. WMC � Sample analysis at WMC Kalgoorlie laboratory. Preparationdry, crush, pulverise (Tema swing mill) to 80 mesh Analysismethod AUSL2 (25gm aqua regia digest, DIBK extraction, AAS finish), LLD of 1ppb Au. Laboratory QAQC methods unknown. Roebuck � Laboratory QAQC methods unknown.

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(Criteria in this section apply to all JORC Code explanation Commentary
succeeding sections.) Criteria
Anglo
� Laboratory QAQC methods
unknown.
Hemisphere
� Laboratory QAQC methods
unknown.
Aruma
� Standard laboratory QAQC
methods employed
Verification of sampling and � The verification of significant Lynas
assaying intersections by either � Method(s) used to verify
independent or alternative
sampling and assay results
company personnel. unknown.
� The use of twinned holes. � Assay data transcribed by hand
� Documentation of primary data, onto logging sheets.
data entry procedures, data � No top cutting of assay data.
verification, data storage
Melbourne
(physical and electronic)
protocols. � Method(s) used to verify
� Discuss any adjustment to assay sampling and assay results
unknown.
data.
� Assay results typed onto logging
sheets.
� No top cutting of assay data.
WMC
� Assay data either typed onto
sample data sheets or attached
as copies of digital print outs.
� Method(s) used to verify
sampling and assay results
unknown.
� No top cutting of assay data.
Roebuck
� Method(s) used to verify
sampling and assay results
unknown.
� No top cutting of assay data.
Anglo
� Verification of sampling and
assay results unknown.
� No top cutting of assay data.
Hemisphere
� Method(s) used to verify
sampling and assay results
unknown.
Aruma
� None.
� No top cutting of assay data
Audits or reviews � The results of any audits or � No audits or reviews of previous
reviews of sampling techniques explorers data have been
and data. undertaken by Southern Gold.
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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.) Criteria	JORC Code explanation	Commentary
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 Glandore Project is secured by the tenements shown in Appendix 3 of this report and are held 100% in the name of Aruma Exploration Pty Ltd. The tenements are located ~ 37km E of Kalgoorlie, WA. � There are no material issues with third parties. � There are no known impediments to obtaining a licence to operate.
Exploration done by other parties	� Acknowledgment and appraisal of exploration by other parties.	� Exploration of the area has been carried out by numerous parties since 1986. This work is summarised in the body of this release. � Significant zones of gold mineralisation, plus numerous deeper, intersections were located duringthisperiod.
Geology	� Deposit type, geological setting and style of mineralisation.	� The deposits located and the targets present in the project area are a combination of structurally controlled Archaean, greenstone lode style and supergene mineralisation.
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: � easting and northing of the drill hole collar � elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar � dip and azimuth of the hole � down hole length and interception depth � 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	� Location Control Measures for hole positions and sample intervals Lynas � Local grid aligned parallel N – S to tenement boundary’s � Down hole surveying method unknown Melbourne � Used Lynas grid. WMC � AMG grid(AGD84) � Down hole surveying at ca. 30m intervals, magnetic azimuths reported, method unknown Roebuck � GDA 94 grid � Down hole surveying method unknown

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(Criteria listed in the preceding JORC Code explanation Commentary
section also apply to this section.)
Criteria
clearly explain why this is the
Anglo
case.
� AMG grid (AGD84)
� Collars located with differential
GPS
� Down hole surveying method
unknown
Hemisphere
� GDA 94 grid
� Collars located with Non
differential Garmin GPS
� No down hole surveying
Aruma
� A summary of exploration
results showing the range of
downhole intercept widths and
associated grades is shown in
the body of this release.
� The information provided in the
body of this report is believed to
provide a fair representation of
the range of grades and widths
present in each area evaluated
by previous explorers.
Data aggregation methods � In reporting Exploration Results, � Where intersections are greater
weighting averaging techniques, than 1m length down hole, the
maximum and/or minimum assay grade is reported as a
grade truncations (eg cutting of length weighted value in

high grades) and cut off grades relation to exploration results.
are usually Material and should � No metal equivalent values
be stated.
have been reported.
� 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 between � These relationships are � Significant mineralisation has
mineralisation widths and particularly important in the been intersected in a number of
reporting of Exploration Results. holes drilled by each Company.
intercept lengths
� If the geometry of the The intersections reported are
‘down hole lengths’ and may
mineralisation with respect to
not represent ‘true widths’.
the drill hole angle is known, its
nature should be reported. � Structural measurements were
� If it is not known and only the undertaken by WMC and
Aruma.
down hole lengths are reported,
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(Criteria listed in the preceding section also apply to this section.) Criteria	JORC Code explanation	Commentary
	there 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. �	� The tabulated information provided in the body of this report summarises significant intersections made by previous explorers. � The sections and plans provided in the body of this report demonstrate the range of grades, widths and geometry’s located by previous explorers.
Balanced reporting	� Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	� A wide range of results have been provided in the body of this report demonstrating the local variability in grades and widths of mineralisation that may be present.
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.	� All relevant observations have been noted in the release.

Appendix 3 Tenement Details

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Area Commitment
Tenement Expiry
(Ha) ($)
M25/327 122.00 10/05/2032 14,213.00
M25/329 456.00 10/05/2032 53,124.00
M25/330 703.00 10/05/2032 81,899.50
P25/2073 177.00 4/02/2018 7,504.80
P25/2074 141.00 4/02/2018 5,978.40
P25/2075 195.00 4/02/2018 8,268.00
P25/2076 197.00 4/02/2018 8,352.80
P25/2013 103.00 14/06/2018 4,367.20
P25/2117 119.86 7/10/2018 5,088.00
P25/2118 198.46 7/10/2018 8,437.60
P25/2119 186.73 7/10/2018 7,928.80
P25/2154 110.00 23/03/2019 4,664.00
P25/2215 45.00 30/06/2018 2,108.00
P25/2216 117.00 30/06/2018 4,960.80
2,871.05 $216,894.90
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AI assistant

IONDRIVE LIMITED Capital/Financing Update 2016

65132_rns_2016-04-04_754e0fe7-bf23-4910-bb51-d3ecc61fae2e.pdf

Glandore Project Farm In and Joint Venture

Directors

Head Office

Postal Address

Highlights

Glandore Farm In and JV Agreement with Aruma Exploration Pty Ltd

Glandore Farm In and Joint Venture (SAU earning up to 90%) – Summary of Terms

Glandore Project Technical Summary

A short list of follow up targets would include:

Competent Person’s Statements

Forward looking statements

Appendix 1 Glandore Farm In and JV – Technical Background Paper

Regional Geology

Geology and Structure

Mineralisation and Alteration

Previous Exploration

Axial Planar Fault

The Supergene Zone

The Central Fault Zone

Eastern Lode

Other targets

References

Appendix 2 JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Appendix 3 Tenement Details

AI assistant

IONDRIVE LIMITED — Capital/Financing Update 2016

65132_rns_2016-04-04_754e0fe7-bf23-4910-bb51-d3ecc61fae2e.pdf

Glandore Project Farm In and Joint Venture

Directors

Head Office

Postal Address

Highlights

Glandore Farm In and JV Agreement with Aruma Exploration Pty Ltd

Glandore Farm In and Joint Venture (SAU earning up to 90%) – Summary of Terms

Glandore Project Technical Summary

A short list of follow up targets would include:

Competent Person’s Statements

Forward ­ looking statements

Appendix 1 Glandore Farm In and JV – Technical Background Paper

Regional Geology

Geology and Structure

Mineralisation and Alteration

Previous Exploration

Axial Planar Fault

The Supergene Zone

The Central Fault Zone

Eastern Lode

Other targets

References

­ Appendix 2 JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Appendix 3 Tenement Details

More from IONDRIVE LIMITED

IONDRIVE LIMITED Capital/Financing Update 2016

Forward looking statements

Appendix 2 JORC Code, 2012 Edition – Table 1