IONIC RARE EARTHS LIMITED — Capital/Financing Update 2015

Oct 19, 2015

20 October 2015

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ASX Announcement

ISABELLA VEIN RETURNS UP TO 21.3 g/t GOLD

HIGHLIGHTS

ORO VERDE LIMITED (ASX code: OVL)

An emerging resource company focused on Nicaragua

• Another high grade gold target added to the Topacio epithermal vein system.

• The Isabella vein has returned its first high grade gold surface sampling result:

• Isabella 21.3 g/t Au and 18 g/t Ag

KEY PROJECTS - Nicaragua Topacio Gold Project San Isidro Gold Project

BOARD OF DIRECTORS Executive

Trevor Woolfe - MD Brett Dickson - Finance Dir

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

• Other target areas also recorded significant surface results, including:

• Su Majestad up to 9.0 g/t Au and 14 g/t Ag

• • Canada up to 3.4 g/t Au and 14 g/t Ag

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Oro Verde Limited (ASX: OVL) (“Oro Verde” or “the Company”) is pleased to announce that follow up surface sampling on the Isabella vein at the Topacio Gold Project, located in southeastern Nicaragua (Figure 1), has identified the existence of high grade gold.

Earlier reconnaissance sampling of the outcropping Isabella vein by the Company[1] had shown that the epithermal vein was mineralised, however results had typically been lower grade – in the range 0.2 to 2.5g/t gold (Au). But the latest result of 21.3 g/t Au and 18g/t silver (Ag) - from a brecciated quartz vein - indicates greater prospectivity for the Isabella vein.

Additional encouraging results were received in the latest surface sampling from the Su Majestad vein. This vein cross cuts the main Topacio vein, but has not been drilled and is not included in the historical resource estimate. Of six samples collected in the latest campaign from Su Majestad, all were anomalous in gold with four of the samples recording gold results in the 2.95 to 9.00 g/t Au range and silver reaching as high as 52.1 g/t Ag. These sample results support previous assays of up to 14.1 g/t and 58 g/t Ag from the same vein[2]

WEBSITE

www.oroverde.com.au

Oro Verde’s Managing Director, Mr. Trevor Woolfe commented, “Our list of quality, high grade gold targets on the Topacio Gold Project continues to grow after our latest exploration. A new zone up to 21.3 g/t Au on the Isabella vein elevates this area to a higher priority for detailed review and possible drillhole targeting. Su Majestad is another vein that continues to provide encouragement as we look to expand the resource base.”

1 Refer to ASX announcement dated 3 February2015 “High Grade Gold Potential Confirmed at Topacio Project in Nicaragua” 2 Refer to ASX announcement dated 22 April 2015 “Additional High Grade results at Topacio Gold Project”

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San Isidro
Topacio
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Figure 1 Major Nicaraguan gold deposits and the Topacio Gold Project (Central America)

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Buena Vista
Topacio NE & Su Majestad
Isabella-Rebeca
Topacio resource area
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Figure 2 Topacio – Mining concession with latest sample locations

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2

PHASE 8 SAMPLING

Oro Verde’s latest field campaign focused on three potential target zones outside the existing Topacio Gold Project resource area (Figure 2):

• Topacio NE Zone : a prospective interplay of veins in two dominant cross-cutting orientations

• Isabella-Rebeca Line : a 1.3 km northwesterly trending quartz vein zone

• Buena Vista : a recently discovered anomalous gold zone 6 km NE of the Topacio resource area

Topacio NE Zone

The Topacio vein has a northeasterly strike length of over three kilometres (Figure 2). However the main Topacio vein and other veins, such as Dispute and Dos Amigos, are offset by smaller northwesterly trending quartz veins and structures in the Topacio NE area. The Su Majestad vein is one of these cross-cutting veins and high grade gold results up to 14.1 g/t Au have already been reported by the Company in April[1] and more recently in September[3] . In the latest sampling six rock chip samples were all anomalous in gold with four of the samples recording high grade gold results (Figure 3) and silver reaching as high as 52.1 g/t Ag (Table 1):

• Sample 48627 6.33 g/t Au and 11.2 g/t Ag

• Sample 48628 2.95 g/t Au and 52.1 g/t Ag

• Sample 48631 9.00 g/t Au and 14.1 g/t Ag

• Sample 48632 4.46 g/t Au and 5.2 g/t Ag

The presence of high grade gold in this zone suggests the existence of high grade shoots in dilational settings related to the intersections of these cross cutting veins. Other northwesterly trending, crosscutting veins in this area that were sampled include the Canada and La Pispireta veins. All three samples from these veins were anomalous in gold, with the two samples from the Canada vein recording 3.38 and 2.15 g/t Au . An earlier result of 3.9 g/t Au from the Canada vein reported by Oro Verde in April[2 ] was consistent with these latest analyses. Gold was also encountered from sampling of the Topacio and Dos Amigos veins in this Topacio NE Zone (Table 1).

Isabella-Rebeca Vein

The Isabella-Rebeca line of veins has a northwesterly strike length of at least 1.3 km and may be discontinuously linked to the Su Majestad vein (Figure 2). Earlier reconnaissance sampling of the outcropping Isabella vein by the Company[1] had shown that the epithermal vein with significant colloform banding was mineralised, however results had typically been lower grade – in the range 0.2 to 2.5g/t gold. But the latest high grade result (Sample number 48636) - from a brecciated quartz vein - indicates greater prospectivity for the Isabella vein:

• Sample 48636 21.3 g/t Au and 18.0 g/t Ag

Further to the southeast, on the Rebeca section of the vein, anomalous gold values up to 1.17 g/t Au were recorded from the latest sampling, along with coincident elevated arsenic and antimony levels.

Buena Vista

Earlier sampling, with gold grades up to 3.35 g/t Au[4] from the stockwork hosted gold at Buena Vista , provides significant encouragement for a new style of mineralisation, 6 km away from the multiple vein, low sulphidation, epithermal type Topacio gold resource (Figures 2 and 3).

Field activities in the current campaign were focused on local community relations and liaison with local landowners. The three samples collected were of wallrock lithologies and as expected were unmineralised for gold, however showed elevated levels of other accessory minerals such as Ag, barium, copper, zinc, manganese, iron, sulphur and strontium.

3 Refer to ASX announcement dated 9 September 2015 “High Grade Gold Results Continue for Topacio”

4 Refer to ASX announcement dated 15 June 2015 “High Gold Grades From West Mico Vein at Topacio”

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3

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Topacio NE & Su Majestad Buena Vista
48621 3.38 g/t Au and 14 g/t Ag
48627 6.33 g/t Au and 11 g/t Ag
48631 9.00 g/t Au and 14 g/t Ag
48632 4.46 g/t Au and 5 g/t Ag
Isabella-Rebeca
48636 21.3 g/t Au and 18 g/t Ag
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Figure 3 Topacio Gold Project – Latest Oro Verde sampling results

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Figure 4 Topacio NE, Su Majestad and Isabella-Rebeca – Latest Oro Verde sampling results (in isolation)

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4

Table 1 Topacio Gold Project - Details of latest Oro Verde sampling and precious metal grades

SAMPLE NUMBER	NORTHING	EASTING	VEIN	SAMPLE TYPE	Au (g/t)	Ag (g/t)
48620	1,338,390	780,500	Canada (?)	Subcrop	2.15	3.0
48621	1,338,445	780,370	Canada (?)	Subcrop	3.38	13.6
48622	1,338,518	780,095	Topacio	1.0m quartz vein – old trench	1.61	1.0
48623	1,338,600	780,127	Topacio	1.5m quartz vein – old pit	1.19	2.2
48624	1,338,610	780,132	Topacio	1.2m quartz vein – old trench	1.13	4.3
48625	1,338,632	780,218	La Pispireta	Old trench – qtz vein chips	0.49	1.0
48626	1,338,722	780,156	Dos Amigos	Old pit – qtz vein chips	0.58	3.4
48627	1,338,746	781,037	Su Majestad	1.0m quartz vein	6.33	11.2
48628	1,338,729	781,047	Su Majestad	1.0m quartz vein	2.95	52.1
48629	1,338,750	781,098	Su Majestad	1.0m quartz vein – old trench	0.93	2.3
48630	1,338,729	781,178	Su Majestad	1.2m quartz vein – old trench	0.20	<0.3
48631	1,338,680	781,285	Su Majestad	1.0m quartz vein - subcrop	9.00	14.1
48632	1,338,711	781,234	Su Majestad	1.0m quartz vein - subcrop	4.46	5.2
48633	1,337,740	782,333	Rebeca SW split	0.6m quartz vein - subcrop	0.07	<0.3
48634	1,337,730	782,409	Rebeca SW split	1.2m quartz vein - subcrop	0.01	<0.3
48635	1,337,753	782,463	Rebeca SW split	1.2m quartz vein - subcrop	0.01	<0.3
48636	1,338,371	781,873	Isabella	1.0m quartz vein - subcrop	21.30	18.0
48637	1,338,387	781,816	Isabella	1.0m quartz vein - subcrop	0.56	1.3
48638	1,338,410	781,749	Isabella	1.5m quartz vein - subcrop	1.27	3
48639	1,341,323	786,448	Buena Vista	0.7m chip sample - rhyolite	0.01	<0.3
48640	1,341,534	786,646	Buena Vista	1.0m channel – breccia	0.04	3.1
48641	1,341,553	786,631	Buena Vista	1.0m channel – shale	0.02	<0.3
48642	1,338,098	782,208	Rebeca	1.1m channel – quartz vein	0.33	<0.3
48643	1,338,099	782,207	Rebeca	1.2m channel – quartz vein	0.54	0.4
48644	1,338,098	782,209	Rebeca	1.1m channel – quartz vein	1.18	0.7
48645	1,338,082	782,235	Rebeca	1.0m channel – quartz vein	0.75	1.4
48646	1,338,013	782,287	Rebeca	1.0m channel – quartz vein	0.22	<0.3
48647	1,337,991	782,313	Rebeca	1.0m channel – quartz vein	0.07	<0.3
48648	1,337,965	782,371	Rebeca	1.0m channel – quartz vein	0.04	0.6
48649	1,337,905	782,444	Rebeca	1.0m channel – quartz vein	0.02	<0.3
48650	1,337,792	782,595	Rebeca	1.0m channel – quartz vein	0.02	<0.3

Co-ordinate system UTM Zone 16 and datum NAD27 Central

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5

BACKGROUND

On 25 February 2015, Oro Verde announced the positive due diligence and acceptance of an Option to Purchase Agreement over the high grade Topacio Gold Project, located in southeastern Nicaragua (Figure 1). The project boasts 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[5] .

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 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.

For enquiries contact:

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Mr Trevor Woolfe Mr Brett Dickson Managing Director Company Secretary +61 411 127 837 +61 8 9481 2555

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 Exploration Results is based on information compiled by Mr Trevor Woolfe BSc Hons (Geol), who is a Member of The Australasian Institute of Mining and Metallurgy and a Member of the Australian Institute of Geoscientists. Mr Woolfe is the Managing Director and a shareholder of the Company, and is employed through consultancy Shordean Pty Ltd. Mr Woolfe 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 of Exploration Results, Mineral Resources and Ore Reserves’. Mr Woolfe consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

The information in this document that relates to earlier Exploration Results is extracted from the following reports: “High Grade Gold Potential Confirmed at Topacio Project” created on 3 February 2015; “Additional High Grade results at Topacio Gold Project” created on 22 April 2015; “High Gold Grades from West Mico Vein at Topacio” created on 15 June 2015; “High Grade Gold Results Continue for Topacio” created on 9 September 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.

5 Refer to ASX announcement dated 11 November 2014 “Acquisition of High Grade Gold Project”

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6

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

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

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sampling	•	Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement	•	Sampling is a combination of ore pile samples, rough channels extracted by geology hammer and random chips and
techniques		tools appropriate to the minerals under investigation, such as		combinations of chips as defined in Table 1 of the report.
		down hole gamma sondes, or handheld XRF instruments, etc).		Individual sample volume is generally in the range 0.5-2.5kg.
		These examples should not be taken as limiting the broad	•	Sampling was undertaken on a reconnaissance basis and as
		meaning of sampling.		such was carried out on a quantitative basis rather than a
	•	Include reference to measures taken to ensure sample		qualitative basis. Some selectivity has been engaged to target
		representivity and the appropriate calibration of any		the mineralised veins.
		measurement tools or systems used.	•	Samples were crushed, pulverised and 30g submitted for
	•	Aspects of the determination of mineralisation that are Material		analysis of gold by fire assay and AAS finish. Over range gold
		to the Public Report.		(>10g/t Au) samples were re-submitted for analysis of 30g by fire
	•	In cases where ‘industry standard’ work has been done this		assay and gravimetric finish. All samples were also submitted for
		would be relatively simple (eg ‘reverse circulation drilling was		33 element multi-element aqua regia digestion and analysis by
		used to obtain 1 m samples from which 3 kg was pulverised to		ICP-ES. A number of over range silver samples (>100g/t Ag)
		produce a 30 g charge for fire assay’). In other cases more		were re-submitted for analysis by 4 acid digest and AAS finish.
		explanation may be required, such as where there is coarse
		gold that has inherent sampling problems. Unusual
		commodities or mineralisation types (eg submarine nodules)
		may warrant disclosure of detailed information.
Drilling	•	Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core	•	No drilling was undertaken in the current program
techniques		diameter, triple or standard tube, depth of diamond tails, face-
		sampling bit or other type, whether core is oriented and if so,
		_by what method, etc). _
Drill sample	•	Method of recording and assessing core and chip sample recoveries and results assessed.	•	No drilling was undertaken in the current program
recovery	•	Measures taken to maximise sample recovery and ensure
		representative nature of the samples.
	•	Whether a relationship exists between sample recovery and
		grade and whether sample bias may have occurred due to
		preferential loss/gain of fine/coarse material.
Logging	•	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate	•	Rock chip and channel samples were logged geologically however will not be used in any Mineral Resource estimation or
		Mineral Resource estimation, mining and metallurgical studies.		advanced studies.
	•	Whether logging is qualitative or quantitative in nature. Core	•	Logging is considered to be qualitative given the nature of rock
		(or costean, channel, etc) photography.		chip sampling. Photographs of the samples and their locations
	•	The total length and percentage of the relevant intersections		have been taken.
		logged.	•	Not relevant as no drillingin currentprogram
Sub-sampling techniques and	• •	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	• • •	No drilling was undertaken in the current program. No drilling was undertaken in the current program. Sample prep techniques used by the laboratory were considered
sample preparation	•	whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique.	•	appropriate for reconnaissance rock chip style samples. No field duplicates were submitted as the samples were reconnaissance rock chip samples.
	•	Quality control procedures adopted for all sub-sampling stages	•	A sample size of 0.5-2.5 kg was collected and considered
		to maximise representivity of samples.		appropriate and representative for the grain size and style of
	•	Measures taken to ensure that the sampling is representative		mineralisation.
		of the in situ material collected, including for instance results
		for field duplicate/second-half sampling.
	•	Whether sample sizes are appropriate to the grain size of the
		material being sampled.
Quality of assay	•	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is	•	ACME Laboratories (Managua and Vancouver) was used for all analysis work carried out on the current samples. The laboratory
data and		considered partial or total.		techniques below are for all samples submitted to ACME and are
laboratory tests	•	For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the		considered appropriate for the style of mineralisation defined at the Topacio Gold Project:
		analysis including instrument make and model, reading times,		o PRP70-250 (Sample Preparation Code)
		calibrations factors applied and their derivation, etc.		o FA430 - Lead collection Fire Assay Fusion –
	•	Nature of quality control procedures adopted (eg standards,		AAS Finish (for Au).
		blanks, duplicates, external laboratory checks) and whether		o FA530 - Lead collection Fire Assay 30g
		acceptable levels of accuracy (ie lack of bias) and precision		Fusion – Gravimetric Finish (for Au >10g/t).
		have been established.		o AQ300 - Aqua Regia Digestion ICP-ES
				analysis (for 33 standard elements)
				o MA404 – 4 acid digest, AAS finish (for
				Ag>100ppm)
			•	No other analytical tools used in the current program
			•	No field duplicates were submitted. The lab undertook duplicate
				analysis at a rate of 1 in 20. One over range gold sample was
				also re-tested. The lab undertook tests on in-house standards
				and blanks. Results were deemed to be within the expected
				accuracy levels.
Verification of	•	The verification of significant intersections by either	•	Independent personnel have not reviewed significant
		independent or alternative company personnel.		intersections.
sampling and	•	The use of twinned holes.	•	No drillingwas undertaken in the currentprogram.

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7

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
assaying	•	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	•	Data has been uploaded directly from laboratory and GPS files into a GIS system for verification of data and locations.
	•	Discuss any adjustment to assay data.	•	No adjustments of assaydata are considered necessary.
Location of data	•	Accuracy and quality of surveys used to locate drill holes	•	A Garmin GPSMap60Cx hand-held GPS was used to define the
		(collar and down-hole surveys), trenches, mine workings and		location of the samples. The GPS was left at the sample point for
points		other locations used in Mineral Resource estimation.		a minimum period of 2 minutes to obtain a steady reading.
	•	Specification of the grid system used.		Sample locations are considered to be accurate to within 5m.
	•	Quality and adequacy of topographic control.	•	Grid system used is UTM Zone 16 with datum NAD27 Central
			•	It will be necessary to undertake a detailed topographic control
				later in theprogram.
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.	• • •	Data spacing (sample spacing) is variable and appropriate for an initial reconnaissance program. Sampling method not appropriate for resource estimation No sample compositing is appropriate
	•	Whether sample compositing has been applied.
Orientation of	•	Whether the orientation of sampling achieves unbiased	•	Channel samples are planned to intersect the interpreted
		sampling of possible structures and the extent to which this is		mineralised veins as near to perpendicular as possible.
data in relation to		known, considering the deposit type.	•	The majority of the current sampling was from rock chips and in
geological structure	•	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		some cases were selective which may introduce a certain bias that can be expected from a reconnaissance program
		reported if material.
Sample security	•	The measures taken to ensure sample security.	•	The chain of custody is managed by the senior Company representative who places plastic sample bags in polyweave
				sacks. Up to 10 calico sample bags are placed in each sack and
				sealed with ziplock ties. Each sack is clearly labelled with:
				• Company name
				• Name of laboratory
				• Sample number range
			•	Samples were delivered by senior Company personnel directly to
				the ACME Laboratory in Managua. Detailed records are kept of
				all samples that are dispatched.
Audits or reviews	•	The results of any audits or reviews of sampling techniques	•	No audit of sampling techniques has been completed to date but
		and data.		will be implemented as the Company increases its activities in
				Nicaragua.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Mineral tenement and	•	Type, reference name/number, location and ownership	•	The Topacio Gold Project is a Nicaraguan mining concession,
		including agreements or material issues with third parties		known as Presillitas, held by Topacio S.A. Oro Verde Limited
land tenure status		such as joint ventures, partnerships, overriding royalties,		holds an Option to Purchase Agreement over the concession
		native title interests, historical sites, wilderness or national		through 100% owned subsidiary Minera San Cristobal SA.
		park and environmental settings.	•	The concession is in good standing and no known
	•	The security of the tenure held at the time of reporting along		impediments exist (see map elsewhere in this report for
		with any known impediments to obtaining a licence to operate		locations).
		in the area.
Exploration done by	•	Acknowledgment and appraisal of exploration by other parties.	•	Previous exploration of the Topacio Gold Project has consisted of mapping, stream sampling, rock chip sampling,
other parties				soil sampling, trenching, diamond drilling and feasibility
				studies in 3 main periods:
				1980s – CPRM (Brasil)
				1990s – Triton Mining (Canada)
				2010-2013 – FDG Mining/Tango Gold (Canada)
				The latter group has produced resource estimates that are
				consistent with NI 43-101 (Canadian) standards.
			•	The Company is reviewing previous exploration data and as
				such is not in a position to appraise the quality of exploration
				byotherparties.
	•	Deposit type, geological setting and style of mineralisation.	•	The Topacio Gold Project is a low sulphidation epithermal
				gold-(silver) vein type system (along with stockworks and
				brecciation) set in a sequence of tertiary volcanics –
				essentially of andesitic and basaltic composition. The project
				is located in the SE of Nicaragua in the province known as
				RACCS (South Caribbean Coast Autonomous Region).
			•	The main veins are NE striking and dipping steeply and
				variably to the NW and SE. Other veins in the broader
				concession strike NW and are also steeply dipping. Veins are
				generally up to 3m wide but in places may blow out to widths
				of more than 20m.
Drill hole Information	•	A summary of all information material to the understanding of	•	No drilling was undertaken in the current program
		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

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8

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		o hole length.
	•	If the exclusion of this information is justified on the basis that
		the information is not Material and this exclusion does not
		detract from the understanding of the report, the Competent
		Person should clearly explain why this is the case.
Data aggregation	•	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg	•	No data aggregation methods have been applied
methods		cutting of high grades) and cut-off grades are usually Material
		and should be stated.
	•	Where aggregate intercepts incorporate short lengths of high
		grade results and longer lengths of low grade results, the
		procedure used for such aggregation should be stated and
		some typical examples of such aggregations should be shown
		in detail.
	•	The assumptions used for any reporting of metal equivalent
		values should be clearly stated.
Relationship between	•	These relationships are particularly important in the reporting of Exploration Results.	•	This is not relevant to a reconnaissance rock chip sampling program
mineralisation widths	•	If the geometry of the mineralisation with respect to the drill
and intercept lengths	•	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’). _
Diagrams	•	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery	•	Appropriate maps relevant to the current sampling program are available in the body of this report.
		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	•	Reporting of Oro Verde Limited results in this report is considered balanced. All samples have been reported for gold
		grades and/or widths should be practiced to avoid misleading		and silver results. No other elements are considered
		reporting of Exploration Results.		significant,unless stated in the text of the report.
Other substantive	•	Other exploration data, if meaningful and material, should be	•	No other significant exploration work has been done by the
		reported including (but not limited to): geological observations;		Company at this point.
exploration data		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	•	The Company is currently reviewing all available data on the
		lateral extensions, depth extensions or large-scale step-out		project and formulating its ongoing work program. This is
		drilling).		likely to include reconnaissance exploration on the broader
	•	Diagrams clearly highlighting the areas of possible		tenement but with additional drilling to expand the known
		extensions, including the main geological interpretations and		resource.
		future drilling areas, provided this information is not
		commercially sensitive.

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