IONIC RARE EARTHS LIMITED — Capital/Financing Update 2018

Feb 6, 2018

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ASX Announcement 7 February 2018

BEST GOLD GRADES TO DATE & GOOD VEIN WIDTHS IN LATEST TOPACIO TRENCH-SAMPLING RESULTS

HIGHLIGHTS

• High grade gold results reported from a further 13 surface trenches at Topacio

• High grade gold mineralisation over significant widths include:  5.25m at 11.75 g/t Au (Su Majestad Vein)

• 4.45m at 11.6 g/t Au (Toronto Vein)  2.0m at 14.15 g/t Au (Topacio East Vein)  20.5m at 4.83 g/t Au (Mico Central Vein)  3.6m at 7.18 g/t Au (Su Majestad Vein)

• Diamond core drilling rig mobilized and now positioning on-site

Oro Verde Limited (ASX: OVL) (“Oro Verde” or “the Company”) is today pleased to announce the best gold results to date from the third and final group of 13 Phase 3 trenches ( no’s 043 – 055 ). Full details of all 13 trenches are presented in Tables 1a and 1b, which clearly show many of these high grades occur within wider gold-mineralized zones. The top five significant gold and silver grade composite results from this latest group of trenches are presented below:

• Su Majestad Vein 5.25m at 11.75 g/t Au (gold) & 62.63 g/t Ag (silver) including 1.0m at 45.1 g/t Au & 103.1 g/t Ag

• Toronto Vein 4.45m at 11.16 g/t Au & 11.94 g/t Ag including 1.1m at 40.9 g/t Au & 32.9 g/t Ag

• Topacio East Vein 2.0m at 14.15 g/t Au & 6.4 g/t Ag including 1.0m at 27.6 g/t Au & 12.6 g/t Ag

• Mico Central Vein 20.5m at 4.83 g/t Au & 3.9 g/t Ag including 1.9m at 12.32 g/t Au & 6.22 g/t Ag and 0.7m at 22.0 g/t Au & 38.8 g/t Ag

• Su Majestad Vein 3.6m at 7.18 g/t Au & 67.49 g/t Ag including 1.55m at 15.63 g/t Au & 148.54 g/t Ag

On 15th and 18th January, 2018, Oro Verde announced very encouraging high gold results from two groups of trenches at the Topacio Gold Project in south-eastern Nicaragua (Figures 1 & 3). Each group comprised 14 and 13 surface trenches respectively, for a total of 27 trenches ( no’s 016 – 042 ).

This latest and third suite of results, reported above, complements the previously announced results which include the following significant gold values summarized below.

Oro Verde Limited (ASX code: OVL) Level 1, 34 Colin St, West Perth, WA 6005 Phone: +61 8 9481 2555 Fax: +61 8 9485 1290 Email: info@oroverde.com.au

All trenches were excavated during the Company’s Phase 3 surface trenching and sampling campaign, completed in December 2017, with the program yielding a final total of 40 trenches (no’s 016 – 055) .

GROUP 1 – 14 trenches – no’s 016 – 029 (ASX 15[th] January)

• Dispute Vein 8.1m at 2.69 g/t Au (gold) & 12.55 g/t Ag (silver) including 1.4m at 9.15g/t Au & 43.1g/t Ag

• Dispute Vein 4.6m at 3.42 g/t Au & 1.65 g/t Ag including 1.7m at 8.09 g/t Au & 3.82 g/t Ag

• Mico Central Vein 4.85m at 3.67 g/t Au & 32.27 g/t Ag including 0.9m at 7.47 g/t Au & 30.50 g/t Ag

• Mico Central Vein 5.7m at 2.78g/t Au & 14.73 g/t Ag including 1.2m at 10.5 g/t Au & 43.30 g/t Ag

GROUP 2 – 13 trenches – no’s 030 – 042 (ASX 18[th] January)

• Lone Star Vein 4.8m at 5.07 g/t Au (gold) & 44.25 g/t Ag (silver) including 1.0m at 16.6 g/t Au & 130.7 g/t Ag

• Lone Star Vein 2.25m at 5.42 g/t Au & 8.77 g/t Ag including 1.35m at 7.27 g/t Au & 10.08 g/t Ag

• Mico Central Vein 3.0m at 3.69 g/t Au & 11.33 g/t Ag including 1.1m at 7.18 g/t Au & 7.30 g/t Ag

• Mico Central Vein 5.85 at 5.20g/t Au & 8.17 g/t Ag including 1.25m at 7.48 g/t Au & 15.00 g/t Ag

• Chicago Vein 4.2 at 4.39 g/t Au & 8.01 g/t Ag including 1.0m at 9.41 g/t Au & 11.06 g/t Ag

Oro Verde’s CEO, Mr. Doug Bright, commented “We are very pleased with our latest surface trench sampling results which include some very high gold values. As anticipated, our results continue to confirm the high gold grade potential of this large vein system. We are seeing excellent gold grades in good widths and are optimistic that our latest drilling program – to test beneath these quartz vein outcrops – will produce encouraging intercepts. Drill locations have been chosen and sites prepared with commencement of drilling imminent.”

BACKGROUND – RECENT WORK

Following very encouraging high gold results from the Phase 2 trenching and the follow-up Phase 2 diamond core drilling (ASX 20[th] July, 1[st] and 14[th] August, 2017), Oro Verde announced on 28[th] September, 2017, the commencement of a third phase of surface trenching and channel sampling in an accelerated and expanded program to test a greater number of the multiple vein targets identified by previous mapping and sampling as carrying significant gold grades.

This third trenching program was completed in December, 2017, amounting to 40 trenches for a total of 860.3 linear metres of trenching and 750 channel samples to confirm the grade, dip and widths of the veins and to finalise drill-hole orientations of a Phase 3 diamond core drilling program.

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Large quartz veins were intersected in 38 of the 40 trenches, which were excavated perpendicular to the strike of the veins to depths sufficient to expose in situ bedrock. All trenches were mapped and sampled by Oro Verde personnel.

Samples were sent to the Inspectorate Laboratory in Managua for sample preparation. Pulps were then sent internally by the laboratory to its parent Bureau Veritas Laboratory in Vancouver for analysis. All samples were analysed for gold by fire assay/ICP-ES (FA330-Au) and for 45 elements by four-acid digest ICP-MS (MA200).

Nine distinct quartz veins in the central Topacio district were tested by this third and final group of 13 trenches in this phase (no’s 043 – 055). Analyses from all 13 trenches demonstrate good gold responses; six trenches yield significant gold-bearing intervals, as shown in following Table 1a, and a further 7 show other meaningful gold intervals, shown in Table 1b:

Table 1a Topacio Trenches: Significant gold intervals

Trench			From (m)	To (m)	Interval width (m)	Interval grade (g/t Au)	Interval
	Vein						grade
							(g/t Ag)
MTTE17043	Topacio East		6.1	8.1	2.0	14.15	6.4
		Including	7.1	8.1	1.0	27.6	12.6
MTSM17044	Su Majestad		15.85	21.1	5.25	11.75	62.63
		Including	19.1	20.1	1.0	45.1	103.1
MTSM170465	Topacio East 2		3.9	6.3	2.4	6.16	77.94
		Including	3.9	4.8	0.9	14.6	>200
MTSM170465	Su Majestad		25.3	28.9	3.6	7.18	67.49
		Including	26.35	27.9	1.55	15.63	148.54
MTTE17048	Topacio East		13.75	19.4	5.65	5.81	5.13
		Including	14.75	18.4	3.65	8.46	7.07
MTTR17050	Toronto		6.0	10.45	4.45	11.16	11.94
		Including	6.0	7.1	1.1	40.9	32.9
MTMC17051	Mico Central		0.0	20.5	20.5	4.83	3.9
		Including	0.0	1.9	1.9	12.32	6.22
		And	12.4	13.1	0.7	22.0	38.8

Table 1b Topacio Trenches: Other gold intervals

Trench			From (m)	To (m)	Interval width (m)	Interval grade (g/t Au)	Interval
	Vein						grade
							(g/t Ag)
MTBZ17045	Brazil		3.0	4.9	1.9	2.62	4.54
		Including	3.0	4.0	1.0	4.51	7.9
MTPI17047	Pispireta		7.3	8.85	1.55	1.31	0.39
MTTE17049	Topacio East		0.0	2.8	2.8	2.45	7.78
		Including	1.65	2.8	1.15	4.58	10.5
MTMC17052	Mico Central		0.0	27.7	27.7	NA	NA
MTCH17053	Mico West		82.55	83.55	1.0	1.76	42.3
MTMC17054	Mico West		0.0	2.3	2.3	4.15	31.28
		including	0.0	1.0	1.0	7.18	42.0
MTCH170556	Chicago		6.7	8.1	1.4	6.17	17.94
		Including	6.7	7.1	0.4	20.3	55.8
MTCH170556	Mico West		38.6	39.7	1.1	4.49	9.9

Notes:

1. Tables 1a and 1b show composited intervals, distinguished on the basis of intercept (width x grade) multipliers of >10 m.g/t Au & <10 m.g/t Au respectively.

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2. Composited intervals are weighted averages based on 0.5 g/t Au sample cut-off grade & maximum 1m internal dilution.

3. Red highlighted gold values >5/g/t Au

4. NA = no values above 0.5g/t Au cut-off grade

5. Trench MTSM17046 cuts both the Topacio East 2 and Su Majestad veins

6. Trench MTCH17055 cut both the Chicago and Mico West veins

Locations for these 13 trenches (no’s 043 – 055) are shown in following Table 2 and Figure 1 and reference is also made to their listing here in JORC Table 1, Section 2 (at rear).

Table 2 Phase 3 Topacio Trenches: Location details

Trench	E(m)	N(m)	RL(m)	Point	Bearing (°)	Length(m)
MTTE17043	780988	1338997	201	Mid-point	332	14.0
MTSM17044	780613	1338863	193	Mid-point	338	40.3
MTBZ17045	780636	1338361	292	Mid-point	342	21.45
MTSM17046	780642	1338875	126	Mid-point	185	36.15
MTPI17047	780315	1338641	177	Mid-point	158	15.2
MTTO17048	780505	1338838	188	Mid-point	316	26.1
MTTE14049	780647	1338915	127	Mid-point	186	3.4
MTTR17050	780899	1338445	201	Mid-point	20	13.1
MTMC17051	779660	1339097	222	Mid-point	158	20.5
MTMC17052	779960	1339279	124	Mid-point	340	27.7
MTCH17053	779240	1339058	162	Mid-point	208	84.55
MTMW17054	779261	1339014	174	Mid-point	255	2.3
MTCH17055	779302	1339063	166	Mid-point	175	49.1

Note: Grid system: UTM Zone 16; Datum NAD27 Central.

Figure 1 Location Plan: Topacio Phase 3 Trenches 043-055 (yellow) & previous rock-chip results

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Figure 2 Typical Trench: MTMW038 (Mico Central Vein)

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Figure 3 Major Nicaraguan gold deposits and the Topacio Gold Project

(Refer accompanying text relating to The Topacio Gold Resource and NI-43-101 estimate)

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TOPACIO PROJECT BACKGROUND

Oro Verde holds an Option to Purchase Agreement over the historically-reported high-grade Topacio Gold Project, located in south-eastern Nicaragua (Figure 4). Details can be found in the ASX announcement dated 27 February 2015[1] . The project contains a historical NI 43-101 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 .

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 in accordance with the JORC code (Australia). A defined Competent Person has not yet undertaken sufficient work to classify this foreign estimate as a mineral resource in accordance with the Australian JORC code and, at this stage, it cannot be stated with certainty that, following evaluation and/or further exploration work, the foreign estimate will be able to be reported as a mineral resource in accordance with the JORC code.

For enquiries contact:

Mr Doug Bright Mr Brett Dickson CEO Company Secretary +61 403 575 498 +61 8 9481 2555

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COMPETENT PERSON STATEM ENTS

The information in this document that relates to Exploration Results is based on information compiled or provided to and reviewed by Mr Doug Bright BSc (Geol:Zoo), who is a long-standing Member of the Australasian Institute of Mining and Metallurgy. Mr Bright is engaged through his consultancy Trident Geological Services Pty. Ltd. He has in excess of 40 years of international exploration, operational mine and plant-based work, geochemical consulting and appropriate public company Board experience relevant to the commodities, 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 Bright 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 report that relates to previous Exploration Results for the Topacio project, was prepared and first disclosed under the JORC Code 2012, and has been properly cross-referenced in the text to the date of original announcement to ASX. Oro Verde confirms that it is not aware of any new information or data that materially affects the information included in the original 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.

1 Refer to ASX announcement dated 27 February 2015 “Oro Verde Proceeds to Acquire Topacio Gold Project”

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JORC Code, 2012 Edition – Table 1 (Completed by Oro Verde Limited) 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 (e.g. cut channels, random chips, or specific specialised industry standard measurement		Channel sampling was undertaken along a number of hand dug trenches, artisanal mining cuts and underground adits.
techniques		tools appropriate to the minerals under investigation, such as		The channels were cut continuously and horizontally by
		down hole gamma sondes, or handheld XRF instruments,		manual hand tools. The channel width is approximately
		etc.). These examples should not be taken as limiting the		10cm.
		broad meaning of sampling.		The key features being tested by the channel sampling were
		Include reference to measures taken to ensure sample		sub vertical structures and quartz veins. Horizontal sampling
		representivity and the appropriate calibration of any		is therefore deemed to be representative of the true width of
		measurement tools or systems used.		the vein/structure. Sampling was undertaken based on
		Aspects of the determination of mineralisation that are Material		geological units generally in a range of 0.3m to 1.5m in
		to the Public Report.		length.
		In cases where ‘industry standard’ work has been done this		Given the range of sample lengths stated above, the
		would be relatively simple (e.g. ‘reverse circulation drilling was		Individual sample volume was generally in the range 1.0 to
		used to obtain 1 m samples from which 3 kg was pulverised to		4.0kg.
		produce a 30 g charge for fire assay’). In other cases more		Throughout the trenching campaign, samples were crushed,
		explanation may be required, such as where there is coarse		split and pulverised with 250g product through 200 mesh. A
		gold that has inherent sampling problems. Unusual		30g charge was used for fire assay fusion analysis of Au by
		commodities or mineralisation types (e.g. submarine nodules)		ICP-ES, while 0.25g was used for 4 acid digestion analysis
		may warrant disclosure of detailed information.		of 45 elements by ICP-MS.
Drilling		Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g.		Not applicable to the trenching program. Drilling details are reported separately.
techniques		core diameter, triple or standard tube, depth of diamond tails,
		face-sampling bit or other type, whether core is oriented and if
		_so, by what method, etc.). _
Drill sample		Method of recording and assessing core and chip sample recoveries and results assessed.		Not applicable to the trenching 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		Channel samples were logged to a standard where they could 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 quantitative. Photographs of
		(or costean, channel, etc.) photography.		channel sample locations were taken and stored in a photo
		The total length and percentage of the relevant intersections		library. Their trench numbers and along trench lengths have
		logged.		been recorded.
				100% of the Phase 3 trench campaign was logged
				(860.3m)byOVL staff..
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 core was associated with the trench program The channels were cut continuously and horizontally by manual hand tools. The channel width was approximately
sample preparation		whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique.		10cm. Samples were dry. Throughout the trenching campaign, samples were crushed, split and pulverised with 250g product through 200 mesh. A
		Quality control procedures adopted for all sub-sampling stages		30g charge was used for fire assay fusion analysis of Au by
		to maximise representivity of samples.		ICP-ES, while 0.25g was used for 4 acid digestion analysis
		Measures taken to ensure that the sampling is representative		of 45 elements by ICP-MS. Sample prep techniques used by
		of the in situ material collected, including for instance results		the laboratory were considered appropriate for this sample
		for field duplicate/second-half sampling.		type.
		Whether sample sizes are appropriate to the grain size of the		Field duplicate samples were not collected during the trench
		material being sampled.		program. The laboratory conducted internal repeats at
				variable intervals between each 9 to 26 samples (average
				was every 12 samples). Laboratory repeats were within
				acceptable ranges.
				Given the range of sample lengths stated above, the
				Individual sample volume was generally in the range 1.0 to
				4.0kg and considered appropriate and representative for the
				grain size and style of mineralisation being explored. Gold
				mineralisation is interpreted to be fine grained and free,
				however specific studies have not been undertaken asyet.
Quality of assay		The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is		Bureau Veritas Laboratories (Managua and Vancouver) were used for all analysis work carried out on the channel
data and		considered partial or total.		samples. The laboratory techniques below are for all
		For geophysical tools, spectrometers, handheld XRF		samples submitted to Bureau Veritas and are considered

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Criteria	JORC Code explanation	JORC Code explanation	JORC Code explanation				Commentary	Commentary
laboratory tests		instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times,						appropriate for the style of mineralisation expected at the Topacio Gold Project:
		calibrations factors applied and their			derivation, etc.			o PRP70-250 – Crush, split and pulverise
		Nature of quality control procedures adopted (e.g.				standards,		250g rock 200 mesh
		blanks, duplicates,	external laboratory checks) and whether					o SHP01 – shipping to Vancouver
		acceptable levels of accuracy (i.e. lack of bias) and precision						o FA330-Au - Fire assay fusion Au by ICP-
		have been established.						ES (30g)
								o MA200 – 4 Acid digestion ICP-MS
								analysis of 45 elements (0.25g)
								No other analytical tools used in the current program
								Neither blanks nor standards were included in this trenching
								campaign.
								The lab undertookduplicate analysisat a ratio averaging 1
								in 12 samples. Whereover range resultswere obtained,
								the samples were repeated with alternative methodologies
								for more accurate readings. The lab undertook tests on in-
								house standards and blanks. Results were deemed to be
								within the expected accuracy levels. No external laboratory
								checks have yet been undertaken.
Verification of		The verification	of	significant	intersections	by either		Significant intersections have been reviewed by at least two
		independent or alternative company			personnel.			company technical personnel.
sampling and		The use of twinned	holes.					Not relevant to trench campaign
assaying		Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.						Geological logging was undertaken on site by the geologist and technician. This data was transferred daily from field log
		Discuss any adjustment to assay data.						sheets and GPS devices into an Excel database. Analytical
								data has been uploaded directly from laboratory files into a
								GIS system for verification of data and locations. Verification
								of uploaded data is undertaken by a GIS specialist.
								No adjustments of assaydata were undertaken.
Location of data		Accuracy and quality		of surveys used to locate		drill holes		Garmin Oregon 600 hand-held GPS units were used to
		(collar and down-hole surveys), trenches, mine workings and						define the location of the trench/channel start/finish. The
points		other locations used in Mineral Resource estimation.						GPS was left at the sample point for a minimum period of 2
		Specification of the	grid	system used.				minutes to obtain a location reading based on multiple
		Quality and adequacy of topographic control.						reading averages. Sample locations are considered to be
								accurate to within 5m.
								Grid system used is UTM Zone 16 with datum NAD27
								Central.
								A good topographical base has been produced using ortho-
								rectified aerial photos with 5m contours. Any variability in
								GPS elevation measurements of trench locations can be
								projected onto the topographical base.
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						When marking up surface trenches for sampling, areas of variable geology possible mineralisation and geological boundaries were utilised to determine the appropriate
		appropriate for the Mineral Resource and Ore Reserve						sample interval. A minimum sample length for this program
		estimation procedure(s) and classifications applied.						was 30cm and the maximum sample length was 2.0m.
		Whether sample compositing has been applied.						Sampling was undertaken along the full length of each
								trench unless areas of colluvium or saprolite were detected
								in which cases samples were not collected. Intervals with no
								samples are marked “-1” in the database.
								Trench/channel sampling was undertaken in anticipation of
								shallow drilling to take place below some of the trenches/
								channels. The sample spacing could be sufficient to provide
								continuity with the shallow drilling for resource estimation
								procedures.
								No sample compositingwas undertaken.
Orientation of		Whether the orientation of sampling achieves				unbiased		The key features being tested by the channel sampling were
		sampling of possible structures and			the extent to which this is			sub vertical structures and quartz veins. Horizontal sampling,
data in relation to		known, considering	the	deposit type.				perpendicular to the strike of the veins/structures is therefore
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						deemed to be representative of the true width of the vein/structure. With the trench orientation stated above, no bias is
		reported if material.						expected.
Sample security		The measures taken to		ensure sample security.				Channel samples in individual plastic bags were transported from site to the secure core logging facility on a daily basis
								by a company representative in large poly-weave tied sacks.
								The poly-weave sacks were received at the core logging
								facility by the senior company representative and stored
								behind locked gates. The sample chain of custody is
								managed by the senior company representative who places
								up to 10 plastic sample bags in each sack and sealed with
								zip-lock 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 Inspectorate (Bureau Veritas) Laboratory in
								Managua. Detailed records are kept of all samples that are
								dispatched and then received at the lab.
								The laboratorymaintains its own secure sample custody

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Criteria	JORC Code explanation	JORC Code explanation	JORC Code explanation	Commentary	Commentary	Commentary
					when transporting prepared samples or pulps from Managua
					sample preparation laboratory to the Vancouver analytical
					laboratory.
Audits or reviews		The results of any audits or reviews of sampling techniques			No	specific review of sampling techniques was undertaken,
		and data.			but	sampling logs and sampling data were reviewed by at
					least two company representatives, including a
					GIS/Database specialist.
Section 2 Reporting of Exploration Results
(Criteria listed	in theprecedingsection also applyto this section.)
Criteria		JORC Code explanation			Commentary
Mineral tenement	and		Type, reference name/number, location and ownership			The Topacio Gold Project is a Nicaraguan mining
			including agreements or material issues with third parties			concession, known as Presillitas, held by Topacio S.A,
land tenure status			such as joint ventures, partnerships, overriding royalties,			and located approximately 200km east of Managua. Oro
			native title interests, historical sites, wilderness or national			Verde Limited (OVL) holds an Option to Purchase
			park and environmental settings.			Agreement over the concession through its 100% owned
			The security of the tenure held at the time of reporting along			subsidiary Minera San Cristobal SA (MSC).
			with any known impediments to obtaining a licence to operate			In November 2015, OVL/MSC signed a farm-in
			in the area.			agreement with Newcrest International Pty Ltd
						(Newcrest) whereby Newcrest could earn up to 75% in
						the Topacio Gold Project. This agreement was
						terminated in August 2017.
						The Phase 3 trenching described in this report
						commenced after the termination of the Newcrest farm-in
						agreement.
						The concession is in good standing and no known
						impediments exist (see location map elsewhere in this
						report).
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
other parties						sampling, 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.
						CPRM activities were undertaken at a time when
						compliance with standards such as JORC (Australian)
						and NI 43-101 (Canadian) did not exist. The quality of
						the data is thus difficult to appraise. Core samples from
						that phase of drilling are not known to be in existence.
						Triton activities were undertaken during the mid-1990’s
						when quality control and QA/QC procedures and
						reporting standards were in the process of significant
						improvements. Information and data provided in Triton
						reports appears to be of reasonable quality, however
						OVL has not undertaken any specific checks, as
						trenches have been rehabilitated and core samples are
						not known to be in existence.
						FDG /Tango activities were undertaken under NI 43-101
						guidelines and standards and are considered to be of
						reasonable quality. Core from FDG drilling is being
						stored in a secure location near the project area and is in
						reasonable condition.
						Oro Verde commenced exploration activities in February
						2015 with initial data compilation and review, update of
						permits to operate, geological mapping, reconnaissance
						rock chip sampling and new target generation.
						With the introduction of Newcrest, Oro Verde’s
						exploration activities in 2016 consisted of detailed vein
						and alteration mapping/sampling, soil sampling and
						airborne geophysical surveys. A diamond drill program
						was initiated in March 2017 focused on the Rebeca
						target and continued in June 2017 focused on the
						historic Topacio district.
						The Newcrest farm-in agreement terminated in August
						2017 and Oro Verde’s exploration work since that time
						has been solelyfunded and undertaken byOVL.
			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 Topacio veins are NE striking and dipping
						steeply and variably to the NW and SE. Other veins in
						the broader concession, including the Rebeca vein,
						strike NW and are also steeplydipping. Veins are

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				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		Surface trench, channel sampling details: due to space
		the exploration results including a tabulation of the following		limitations, refer Table 2 in main text body of report.
		information for all Material drill holes:
		o easting and northing of the drill hole collar
		o elevation or RL (Reduced Level – elevation above sea	Co-ordinate system UTM Zone 16 and datum NAD27 Central
		level in metres) of the drill hole collar		Note that due to the GPS units being used, there exists a
		o dip and azimuth of the hole		possible error in northing/easting co-ordinates up to 5m.
		o down hole length and interception depth		RLs have been calibrated against a detailed topographic
		If the exclusion of this information is justified on the basis that		digital elevation model (DEM) derived from ortho-rectified
		the information is not Material and this exclusion does not		aerial photos and may also have an error up to 5m.
		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		In the composite results reported, weighted averages were used for intervals with gold grades in excess of
methods		cutting of high grades) and cut-off grades are usually Material		0.5g/t Au and maximum internal dilution of 1m. No top
		and should be stated.		cutting was applied.
		Where aggregate intercepts incorporate short lengths of high		Where significant higher grade intervals are included in
		grade results and longer lengths of low grade results, the		larger composites, these have been separated out in
		procedure used for such aggregation should be stated and		Table 1 in the body of the report.
		some typical examples of such aggregations should be shown		Metal equivalent values are not used in this report.
		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.		The vein targets in the trench program are assumed to have a sub-vertical (70-90 degree) dip. The trenches
mineralisation widths		If the geometry of the mineralisation with respect to the drill		were set perpendicular to the expected vein strike and
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,		channel samples are generally horizontal. Reported widths are therefore at or very close to true width.
		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. A table
		being reported These should include, but not be limited to a		of key gold results is also included.
		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. The prime objective is to observe
		grades and/or widths should be practiced to avoid misleading		the presence of gold results in the trenches. Significant
		reporting of Exploration Results.		gold intercepts for each trench have been reported; No
				other elements are considered significant, unless stated
				in the text of the report.
Other substantive		Other exploration data, if meaningful and material, should be		In addition to the current trench program, other technical
		reported including (but not limited to): geological observations;		work completed by OVL on the Topacio project includes
exploration data		geophysical survey results; geochemical survey results; bulk		reconnaissance rock chip sampling, geological mapping,
		samples – size and method of treatment; metallurgical test		soil sampling airborne geophysics (magnetics and radio-
		results; bulk density, groundwater, geotechnical and rock		metrics) and diamond drilling. Where relevant in the
		characteristics; potential deleterious or contaminating		context of the trench program, these other programs are
		substances.		referred to in the bodyof the report.
Further work		The nature and scale of planned further work (eg tests for		As reported on 5 June 2017, OVL undertook a Phase 2
		lateral extensions, depth extensions or large-scale step-out		drill program around the Topacio gold resource to test
		drilling).		extensions of that complex, results of which were
		Diagrams clearly highlighting the areas of possible		reported on 1 August 2017.
		extensions, including the main geological interpretations and		Subsequent exploration activities will be subject to
		future drilling areas, provided this information is not		results of the current programs which are partly
		commercially sensitive.		described in this report,& furtherpendingresults.

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