IONIC RARE EARTHS LIMITED — Capital/Financing Update 2015

Nov 8, 2015

9 November 2015

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ASX Announcement

EXPANDED GOLD RESOURCE POTENTIAL AT TOPACIO

HIGHLIGHTS

ORO VERDE LIMITED

(ASX code: OVL)

An emerging resource company focused on Nicaragua

KEY PROJECTS - Nicaragua Topacio Gold Project San Isidro Gold Project

BOARD OF DIRECTORS Executive

Trevor Woolfe - MD Brett Dickson - Finance Dir

 The Topacio Gold Project contains a historical NI 43-101 compliant inferred high grade gold resource totalling 340,000 ounces[1] at average grade of 3.9 g/t gold

• Topacio displays evidence suggesting the potential for a significant epithermal vein style gold deposit

• The Company has identified at least 10 new drill targets outside the resource area. Sampling includes exceptional grades[3] :

92.9 g/t Au 52.4 g/t Au 23.9 g/t Au 23.8 g/t Au  The current resource area covers only ~4% of the prospective area of the concession

• Over 25km of prospective epithermal veins identified but only ~4km (or 17%) of vein strike is included in the current resource

• Over 70% of the Topacio Project is under-explored

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Non-Executive

Wolf Martinick - Chairman Tony Rovira Brad Farrell

MANAGEMENT - NICARAGUA

David Turner - Country Mgr Jacques Levy – Admin Mgr

REGISTERED OFFICE

Level 1, 30 Richardson St, West Perth, WA 6005 AUSTRALIA +61 (0) 8 9481 2555

WEBSITE

www.oroverde.com.au

Oro Verde Limited (ASX: OVL) (“Oro Verde” or “the Company”) is pleased to announce that exploration at the Topacio Gold Project, located in southeastern Nicaragua (Figure 1), has successfully expanded the mineralised footprint of the epithermal system hosting the existing high grade gold resource.

While Topacio is already host to a 340,000 ounce NI 43-101 compliant gold (Au) resource[1] , the Company is increasingly confident that the 93km[2] concession has the potential to contain a more substantial gold resource.

The total strike length of epithermal quartz veins identified on the concession to date has now reached more than 25.8 kilometres. Of this total, only 4.4 kilometres (or 17% of veins) are incorporated into the existing shallow resource.

Surface sampling over recent months by Oro Verde has identified multiple zones of high grade gold with grades up to 92.9 g/t Au and 480 g/t silver (Ag)[2]

Oro Verde’s Managing Director, Mr. Trevor Woolfe commented, “We are increasingly confident that Topacio can host a significant epithermal gold deposit. Our exploration has highlighted at least ten new high grade drill targets. Less than 17% of the 26kms of veins identified have been drilled. Our 2016 exploration program will focus on this substantial resource potential.”

1 Refer to ASX announcement dated 11 November 2014 “Acquisition of High Grade Gold Project” 2 Refer to ASX announcement dated 20 July 2015 “Bonanza Gold Result from ‘Dispute’ Vein at Topacio”

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GOLD DEPOSITS IN NICARAGUA

Nicaragua has a long history of gold mining dating back at least to the arrival of the Spanish Conquistadors in the early 1500s. More recently, gold mining in Nicaragua has centred on a number of highly productive gold districts (Figure 1). The relatively young volcanic geological terrain in Nicaragua is a focus for epithermal vein type gold mineralisation.

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8 Moz
2.9 Moz San Isidro
1.8 Moz
3.5 Moz
Topacio Target
1-2 Moz
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Figure 1 Major Nicaraguan gold deposits and the Topacio Gold Project

The four major gold mines and districts of Nicaragua have gold endowments (past production plus current reserves) of multi-millions of gold ounces (Table 1), providing evidence that Nicaragua is host to world class deposits that have attracted respected global gold producers such as B2Gold. B2Gold expects to produce over 500,000oz globally in 2015, and in 2014 produced gold from its Nicaraguan operations at a combined rate of 200,000ozpa from the La Libertad and El Limon mines (Figure 1) at a low cash cost of US$638/oz.

The Topacio Gold Project is a relatively under-explored gold project in comparison with its local peers. While artisanal miners have been present over the past five to ten years, Topacio has seen little organised gold production since around 1917. Sporadic exploration, including drilling, over the past 30 years has led to a historical NI 43-101 (Canadian standard, similar to JORC) compliant Inferred Resource of:

2,716,176 tonnes at 3.9 g/t gold, containing 340,345 ounces of gold, at a 1.5 g/t gold cut-off[1]

National Instrument 43-101 (“NI 43-101”) is a national instrument for the Standards of Disclosure for Mineral Projects within Canada and as such this estimate is a foreign estimate and is not reported in accordance with the Australian JORC Code. A competent person has not done sufficient work to classify the foreign estimate as mineral resources in accordance with the JORC code and it is uncertain that following evaluation and/or further exploration work that the foreign estimate will be able to be reported as mineral resources in accordance with the JORC code.

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GOLD MINE OR DISTRICT	OWNER	GOLD ENDOWMENT
Bonanza Mine /Golden Triangle	MINEROS (Colombia)	>8 Moz
El Limon Mine	B2GOLD (Canada)	3.5 Moz
La India Project	CONDOR GOLD (UK)	2.9 Moz
La Libertad Mine	B2GOLD (Canada)	1.8 Moz

Table 1 Major Nicaraguan gold mines and districts

TOPACIO – AN EMERGING GOLD DISTRICT

The Topacio Gold Project is located within a 93km[2] concession in the under-explored southeastern region of Nicaragua (Figure 1). The Company is increasingly confident that the concession has the potential to contain a more substantial gold resource than the currently estimated 340,000 ounces of gold.

The current gold resource is contained within an area of approximately 3-4km[2] which makes up just 4% of the full Topacio concession (Figure 2). Since taking an Option over the project in late February this year, the Company has focussed on expanding the footprint of high grade gold mineralisation outside of the resource area.

Oro Verde has so far successfully identified at least ten drill targets outside the resource area . The majority of these target areas have returned high grade gold results from surface sampling of the epithermal veins and breccias (Table 2), with the highest grade so far recorded of 92.9 g/t Au from the “Dispute” vein.

GOLD TARGET	MAX. Au g/t	GOLD TARGET	MAX. Au g/t
Buena Vista	3.4	Isabella	21.3
Canada	3.4	Mico West	23.9
Celedonio	12.5	Mico NW	6.8
**Chicago **	23.8	Su Majestad	14.1
Dispute	92.9	Topacio NE	52.4
Gallina	6.5

Table 2 Topacio Gold Project – High grade drill targets outside the resource area[3]

As a further indication of the regional scale of the Topacio low sulphidation epithermal vein system, the new target areas are part of a total combined vein strike length (when you line up the veins end on end) of over 25.8 kilometres identified to date on the concession. However, only 4.4 kilometres (or 17%) of this total is included within the existing resource estimate (Figure 2).

It is also pertinent to note that less than 30% of the 93km[2] concession (Figure 3) has undergone any type of evaluation by Oro Verde to this point. The remaining 70% of the concession is thus considered to have significant unexplored potential for additional gold mineralisation. The Company expects that with continued exploration, more veins forming part of this extensive epithermal system will be discovered.

As reported in June[4] , the Buena Vista area lies approximately 6 kilometres east-northeast of the Topacio resource area (Figure 2), and is the most distal of the target areas identified by Oro Verde. The geology of mineralised stockwork veining within silicified volcanics at Buena Vista provides significant encouragement for a new style of gold mineralisation in this regional scale epithermal system. Gold grades up to 3.4 g/t have been obtained from surface rock chip sampling despite no evidence of substantial quartz veining.

3 Refer to ASX announcements dated 20 July 2015, 9 September 2015 and 20 October 2015 – note Dispute is within resource area 4 Refer to ASX announcements dated 15 June 2015 “High Gold Grades from West Mico Vein at Topacio”

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La Gallina Celedonio Buena Vista
Topacio NE
Chicago
Su Majestad
Isabella
Dispute Canada
Mico West
Mico NW
Topacio resource area
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Figure 2 Topacio Gold Project – High grade gold targets

The Topacio Gold Project has to date shown a number of similarities with other multi-million ounce, low sulphidation, epithermal vein type gold systems such as those hosting the Pajingo and Cracow gold mines, both located in Queensland and operated by Evolution Mining.

While the Topacio resource area and immediate surrounds contain an abundance of high grade rock chip results, the veins directly to the east are interpreted to represent a higher part of the epithermal system. This is evidenced by the following characteristics, which commonly occur above bonanza gold zones:

• the presence of siliceous cap rock (possible sinter deposit)

• abundant lower temperature quartz veins with colloform banding

• lower overall gold grades with characteristic accessory elements

If this interpretation is correct, the central part of the concession may be concealing a buried high grade (or “bonanza”-type) gold deposit, which are often associated with low sulphidation epithermal vein systems. This model increases the prospectivity of the concession and provides an exciting additional target area for exploration in the coming year.

For enquiries contact:

Mr Trevor Woolfe Managing Director +61 411 127 837

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Mr Brett Dickson Company Secretary +61 8 9481 2555

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Limits of OVL
Exploration to Date
Unexplored potential
Unexplored potential
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Figure 3 Topacio Project – Oro Verde exploration status

About Oro Verde Limited: Oro Verde Ltd is a mineral exploration company focused on identifying and developing significant gold projects in Central America, particularly Nicaragua. Oro Verde holds an Option to Purchase Agreement on the Topacio Gold Project in Nicaragua that currently contains a NI43-101 compliant Inferred Mineral Resource of 340,000 ounces of gold. Oro Verde also holds 100% of the early stage San Isidro Gold Project, also in Nicaragua, located adjacent to the 2.3 million ounce La India gold project.

COMPETENT PERSON STATEMENTS

The information in this document that relates to earlier Exploration Results is extracted from the following reports: “High Gold Grades from West Mico Vein at Topacio” created on 15 June 2015; “Bonanza Gold Result from ‘Dispute’ Vein at Topacio” created on 20 July 2015; “High Grade Gold Results Continue for Topacio” created on 9 September 2015; and “Isabella Vein Returns 21.3 g/t Gold” created on 20 October 2015, all completed under Mr Trevor Woolfe as Competent Person and available to view on www.asx.com. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcements and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcements continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcements.

The information in this document that relates to Historical Mineral Resources is extracted from the report entitled “Acquisition of High Grade Gold Project” created on 11 November 2014 and available to view on www.asx.com. The Company confirms that it is not in possession of any new information or data that materially impacts on the reliability of the estimates in the original market announcement and that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are presented have not been materially modified from the original market announcement.

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