IONIC RARE EARTHS LIMITED — Capital/Financing Update 2015

Apr 21, 2015

ASX Announcement 22 April 2015

ADDITIONAL HIGH GRADE RESULTS AT TOPACIO GOLD PROJECT

HIGHLIGHTS

• Strong gold and silver results indicate potential for resource expansion

• Reconnaissance rock chip samples collected from east of the Topacio resource area enhance the high grade gold potential of the multi-vein epithermal system:

• Su Majestad vein - up to 14.1 g/t gold and 58g/t silver

• Topacio NE vein - up to 6.6 g/t gold and >100 g/t silver

• Canada vein - up to 3.9 g/t gold

• Mico-Lone Star vein area rock chip samples up to 3.2 g/t gold

• Silica textures in south of the tenement reflect a possible sinter zone, often associated with underlying mineralised epithermal systems

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Oro Verde Limited (ASX: OVL) (“Oro Verde” or “the Company”) is pleased to announce that a second phase of reconnaissance sampling results from the Topacio Gold Project in Nicaragua (Figure 1) has returned further high grade results and enhanced the potential of the gold (Au) and silver (Ag) mineralised vein system. Rock chip samples returned assays as high as 14.1 grams per tonne (g/t) Au, with high grade silver results above 100 g/t Ag.

The latest sampling focused on assessment of the potential for both expansion of the existing gold resource, and for additional targets over the broader tenement area.

Strong gold and silver results from outcropping quartz veins to the northeast of the main resource area confirm the continuation of the mineralised system and indicate potential for resource expansion in this area.

Technical assessment of a relatively unexplored area to the south of the tenement (Figure 2) has identified characteristics of a possible epithermal sinter zone, reflected by silica rich rocks. A sinter zone is a silica rich surface deposit, typically developed above a low sulphidation epithermal system. The underlying epithermal system often consists of vein or stockwork style mineralisation and can be enriched in gold and silver, with lesser base metal development.

Oro Verde’s Managing Director, Mr Trevor Woolfe commented, “ High grade gold assays up to 14.1 g/t from sampling to the northeast of the main Topacio resource area enhance our expectation for expansion of the gold inventory. Additionally, an initial review of silica rich outcrops in the south of the tenement indicate the potential for an epithermal sinter zone, which are often associated with buried epithermal mineralised systems. This provides Oro Verde with a new target to test for a gold and silver enriched feeder system.”

Oro Verde Limited (ABN 84 083 646 477) Level 1, 30 Richardson Street, West Perth, WA 6005 PO Box 493, West Perth, WA 6872 Telephone: + 61 8 9481 2555

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San Isidro
Topacio
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Figure 1 Major Nicaraguan gold deposits and the location of the Topacio Gold Project

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Figure 2 Topacio – Mining concession (red outline) and Phase 2 sampling areas (blue oval areas)

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PHASE 2 SAMPLING

A second phase of reconnaissance rock chip sampling undertaken by the Company in February at the Topacio Gold Project, focused on two main areas (Figure 3):

1. The area including the Mico and Topacio NE areas, and

2. An area of silica rich outcrops to the south of the tenement area.

The latest high grade gold results (Table 1) follow on from the encouraging first phase results reported on 3 February[1] .

Samples were submitted for gold analysis by Fire Assay and multi-element (33 elements) analysis by aqua regia digest and ICP.

Topacio NE

The first ten samples (48501-48510) from this second phase were collected from an area to the north (Mico and Lone Star veins) and northeast (Topacio NE, Su Majestad and Canada veins) - of the existing gold resource (Figure 3).

Two samples (48501-02) were collected from the Mico and Lone Star veins, returning assays of 3.01 and 3.24 g/t Au , consistent with first phase results[1] from the Mico-Topacio resource area.

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Figure 3 Topacio Gold Project – Oro Verde rock chip sampling results

Seven samples (48503-09) were collected from the Su Majestad - Topacio NE - Canada epithermal veins and returned highly encouraging gold results, ranging from 2.01 to 14.1 g/t Au . One sample

1 Refer to ASX announcement dated 3 February 2015 “High Grade Gold Potential at Topacio Confirmed”

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(48508) also returned >100g/t silver (Table 1). Vein widths in the area are in the 1–3 metre range and display classic epithermal textures such as colloform banding and chalcedonic quartz, with local hydrothermal brecciation.

Silica Cap

Previous explorers identified an area near the southern border of the tenement as having a “silica cap”, but it has subsequently undergone very little systematic exploration. The Company’s geologists identified the zone as consisting of strongly silicified to completely silica replaced flat-lying volcaniclastic rocks. Low temperature, laminated cherts (Figure 4) are also prominent, and locally display brecciation. The area may represent a sinter zone.

A sinter zone is a silica rich surface deposit, typically developed above a low sulphidation epithermal system. While sinter zones themselves are often barren of economic mineralisation, the underlying epithermal system often consists of vein or stockwork style mineralisation and can be enriched in gold and silver, with lesser base metal development.

Consistent with this thesis, the six rock chip samples reported from the possible sinter zone (4851116) were relatively unmineralised, ranging from below detection (<0.005ppm Au) to 0.16 g/t Au. However in contrast, a sample collected from the Mirna vein (48517), on the west side of the silica cap zone, returned an encouraging 0.59 g/t Au (Figure 3 and Table 1) along with anomalous silver, copper, antimony, arsenic, barium and vanadium - elements indicative of a low sulphidation epithermal system.

Additional exploration activities are being planned to systematically review this silica cap (or sinter?) zone and surrounding veins, to test for the possibility of a buried epithermal Au-Ag system.

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Figure 4 – Laminated chert (Sample No. 48511)

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

SAMPLE **NUMBER **	NORTHING	EASTING	VEIN	SAMPLE TYPE	Au (g/t)	Ag (g/t)
48501	1,339,115	779,684	Mico	Rock chips – qtz vein	3.01	5.6
48502	1,338,813	779,471	Lone Star	Rock chips – qtz vein	3.24	3.2
48503	1,338,377	780,709	Canada	Rock chips – qtz vein	3.91	11.0
48504	1,338,759	780,971	Su Majestad	Rock chips – qtz vein	4.19	5.5
48505	1,338,991	780,964	Topacio NE	Rock chips – qtz vein	2.01	1.6
48506	1,338,945	780,784	Topacio NE	Rock chips – breccia sample	0.54	12.2
48507	1,338,874	780,635	Su Majestad	Rock chips – qtz vein	14.10	58.4
48508	1,338,906	780,638	Topacio NE	Rock chips – qtz vein	6.55	>100.0
48509	1,338,912	780,642	Topacio NE	Rock chips – silicified breccia	0.90	8.5
48510	1,339,700	780,458	Tamara (?)	Rock chips – hydrothermal breccia	0.32	5.5
48511	1,337,058	784,055	Silica Cap	Rock chips – laminar cherty silica	0.01	<0.3
48512	1,337,077	784,014	Silica Cap	Rock chips – silica replaced tuff	0.02	<0.3
48513	1,336,899	784,281	Silica Cap	Rock chips – laminated cherty qtz	0.16	<0.3
48514	1,336,242	783,133	Silica Cap	Rock chips – massive quartz	0.02	<0.3
48515	1,336,277	783,189	Silica Cap	Rock chips – cherty silica	<0.005	<0.3
48516	1,336,252	782,702	Silica Cap	Rock chips – laminated qtz	<0.005	<0.3
48517	1,336,507	782,351	Mirna	Rock chips – tuff w breccias/veins	0.59	8.6

Co-ordinate system UTM Zone 16 and datum NAD27 Central

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[2] .

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.

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

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For enquiries contact:

Mr Trevor Woolfe Chief Executive Officer +61 411 127 837

+61 8 9481 2555

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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 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 aware of any new information or data that materially affects the information included 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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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 rough channels extracted by geology hammer and random chips and combinations of chips as
techniques		tools appropriate to the minerals under investigation, such as		defined in Table 1 of the report. Individual sample volume is
		down hole gamma sondes, or handheld XRF instruments, etc).		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 (>10g/t
		to the Public Report.		Au) samples were re-submitted for analysis of 30g by fire assay
	•	In cases where ‘industry standard’ work has been done this		and gravimetric finish. All samples were also submitted for 33
		would be relatively simple (eg ‘reverse circulation drilling was		element multi-element aqua regia digestion and analysis by ICP-
		used to obtain 1 m samples from which 3 kg was pulverised to		ES.
		produce a 30 g charge for fire assay’). In other cases more
		explanation may be required, such as where there is coarse
		gold that has inherent sampling problems. Unusual
		commodities or mineralisation types (eg submarine nodules)
		may warrant disclosure of detailed information.
Drilling	•	Drill type (eg core, reverse circulation, 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 studies and metallurgical		advanced studies.
		studies.	•	Logging is considered to be qualitative given the nature of rock
	•	Whether logging is qualitative or quantitative in nature. Core		chip sampling. Photographs of the samples and their locations
		(or costean, channel, etc) photography.		have been taken.
	•	The total length and percentage of the relevant intersections	•	Not relevant as no drilling in current program
		logged.
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)
			•	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 drilling was undertaken in the current program.
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.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
	•	Discuss any adjustment to assay data.	•	No adjustments of assay data 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 the program.
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 relevant 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 an initial 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	•	The concession is in good standing and no known
		park and environmental settings.		impediments exist (see map elsewhere in this report for
	•	The security of the tenure held at the time of reporting along		locations).
		with any known impediments to obtaining a licence to operate
		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
				by other parties.
	•	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
				RAAS (Atlantic Autonomous Region-South).
			•	The main veins are NE striking and dipping steeply to the NW.
				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

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		level in metres) of the drill hole collar
		o dip and azimuth of the hole
		o down hole length and interception depth
		o hole length.
	•	If the exclusion of this information is justified on the basis that
		the information is not Material and this exclusion does not
		detract from the understanding of the report, the Competent
		Person should clearly explain why this is the case.
Data 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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