LATITUDE 66 LIMITED — Capital/Financing Update 2013

Dec 8, 2013

==> picture [595 x 132] intentionally omitted <==

Assets, Experience, Growth

ASX ANNOUNCEMENT – 9 December 2013

STRONG DEEPER COPPER-GOLD HITS POINT TO POTENTIAL NORTHERN EXPANSION OF BARBARA OPEN PIT

Significant intersection of 20m @ 1.48% Cu beneath “Fault Gap” area outside of current pit limits

HIGHLIGHTS

• Assay results now received for 19 of 41 in-fill RC holes completed to date at Barbara Copper-Gold Project (North Queensland), with new intersections including:

• 20m @ 1.48% Cu including 9m @ 2.61% Cu (BARC090)

• 18m @ 1.45% Cu including 10m @ 2.40% Cu (BARC081)

• 14m @ 1.72% Cu including 6m @ 3.30% Cu (BARC088)

• Drilling underneath the “Fault Gap” area has revealed thick intersections of high-grade copper mineralisation at depth including the results in holes BARC090 and BARC088, highlighting the potential to expand the pit in this area.

• The latest results continue to confirm the high-grade nature of the Barbara Resource in the Southern Shoot with drilling continuing to expand the known areas of mineralisation.

• Step-out drilling to the north and south of the currently defined open pit continuing: further results expected over the coming weeks.

Syndicated Metals Limited (ASX: SMD – “Syndicated” or “the Company”) is pleased to report further encouraging results from initial in-fill resource drilling which is being conducted as part of the Feasibility Study on its flagship Barbara Joint Venture Copper-Gold Project in North Queensland (Figure 1).

The latest results have confirmed the robust, high-grade nature of the mineralisation in the Southern Shoot, both near surface and at depth. Encouragingly, a number of thick, high-grade intersections have also been encountered in the “Fault Gap” area, in the central part of the proposed open pit.

These results – which include 14m @ 1.72% Cu from 67m including 6m @ 3.30% Cu (hole BARC088) and 20m @ 1.48% Cu from 115m including 9m @ 2.61% Cu (hole BARC090) and are supported by limited historical drilling – have the potential to expand the proposed open pit in this area.

The Barbara JV is a 50/50 joint venture with leading North Queensland copper producer CopperChem Limited, based in Cloncurry. CopperChem is funding the Feasibility Study for the development of Barbara as part of its earn-in requirements to the joint venture.

R:\ADM_Administration\ASX\ASX Releases & Confirmations\2013 Announcements

==> picture [410 x 37] intentionally omitted <==

==> picture [410 x 36] intentionally omitted <==

==> picture [410 x 36] intentionally omitted <==

==> picture [410 x 36] intentionally omitted <==

==> picture [410 x 36] intentionally omitted <==

==> picture [410 x 36] intentionally omitted <==

==> picture [410 x 37] intentionally omitted <==

==> picture [410 x 36] intentionally omitted <==

==> picture [410 x 36] intentionally omitted <==

==> picture [410 x 36] intentionally omitted <==

==> picture [410 x 36] intentionally omitted <==

==> picture [410 x 36] intentionally omitted <==

==> picture [410 x 35] intentionally omitted <==

Figure 1 – Project Location Plan

Barbara Resource Expansion Drilling

Drilling commenced at Barbara in late October. The program is primarily designed to in-fill and upgrade the current Indicated and Inferred Mineral Resource (5.3Mt grading 1.4% Cu and 0.1ppm Au) and also to test for zones of high-grade mineralisation that potentially extend outside of the existing mineralisation boundaries.

Outstanding results from drill holes BARC074 to BARC083 (excluding BARC081) were reported last month (see ASX Announcement – 21 November). To date, 41 holes for 3,945m of Reverse Circulation (“RC”) has been completed out of a planned 48-hole program with assays received for 19 holes.

The most recent results (BARC081 and BARC084 to BARC092) continue to confirm or exceed expectations compared with historical drilling in terms of both grade and width. They include several thick intersections of strong copper-gold mineralisation both near surface and at depth within the Southern Shoot of high-grade copper mineralisation and underneath the previously defined “Fault Gap” area.

R:\ADM_Administration\ASX\ASX Releases & Confirmations\2013 Announcements

The location of the new drill holes completed to date is shown on Figures 2, 3 and 4.

Results

41 RC holes (BARC074-BARC114) have been drilled to date within and around the existing Mineral Resource with a focus around the proposed open pit area. Results reported previously (BARC074 to BARC083 but excluding BARC081) have provided coverage for resource definition principally within and around the Southern Shoot and confirmed the interpretation of a high-grade (>2.5% Cu) hanging wall lode of mineralisation supported by thick zones of lower grade (0.5% to 1.5% Cu) mineralisation.

Assays from drill hole BARC081 (18m @ 1.45% Cu from 13m down-hole, including 10m @ 2.40% Cu from 13m down-hole) have further confirmed that high-grade copper mineralisation continues in the near-surface environment in this area.

Results in BARC085 have confirmed the southern extent of the high-grade copper mineralisation at approximately 200m below surface. The Company’s interpretation of a faulted termination of the mineralisation in this area has been confirmed and work will continue to determine if the Southern Shoot continues at depths greater than 400m below surface with diamond drilling programs proposed for 2014. Refer to Figures 2 and 4 for drill-hole locations and Table 1 attached for summarised drilling data.

The majority of the remaining results reported have been drilling into the postulated “Fault Gap” area (See Figure 3 and Figure 4 and Table 1). Previous limited drilling had revealed relatively low grade (0.3% Cu to 1.4% Cu) mineralization over generally narrower (1m to 8m) widths in the nearsurface environment within the Fault Gap area.

Recent, near-surface in-fill RC drilling (BARC086, BARC087, BARC089 and BARC091) has confirmed the interpretation of lower grade mineralization near surface. However, deeper drilling below the Fault Gap has encountered strong intersections of high-grade mineralisation in BARC088 (14m @1.72% Cu from 67m down-hole) and BARC090 (20m @ 1.48% Cu from 115m down-hole) supported by previous, adjacent drill holes at similar grades and widths of mineralisation. Both recent intersections are similar in style to the high-grade Southern Shoot mineralisation.

These results suggest that the Fault Gap area may be underlain by a significant body of copper mineralisation, which plunges more shallowly south, than previously interpreted (refer to Figure 3). The shallow, south-plunging Northern Shoot of mineralisation corresponds to the near-surface, high grade mineralisation previously drilled at the northern end of the Barbara deposit and the upper DHEM plate modelled from down-hole EM surveys conducted on BARC048 in late 2012.

Drilling below the Fault Gap area is continuing.

Drilling has now been completed within the proposed pit area. Drilling continues to extend north, helping to improve the Company’s understanding of the deposit with additional step-out holes targeting extensions of the Mineral Resource along strike and at depth.

The imminent commencement of the northern Australian wet season coupled with the extension of the Barbara in-fill and extension drilling program has resulted in the deferral of the proposed maiden exploration drilling program at the targets generated around Lilly May, Spectre and Mt Olive, as advised in the ASX announcement on 21 November. These targets are now scheduled to be drilled in January 2014, weather and drill rig access permitting.

R:\ADM_Administration\ASX\ASX Releases & Confirmations\2013 Announcements

Syndicated’s Managing Director, Andrew Munckton, said the Company was very pleased with the results of the drilling program at Barbara, which had either met or exceeded expectations so far while also demonstrating the potential upside to the project from strong results outside of the current open pit boundaries – particularly in the “Fault Gap” area at the northern end of the pit.

“With the imminent onset of the wet season, we have recently reduced our drilling program to a single RC drill rig as we work our way north of the main Barbara mineralisation searching for extensions to the mineralisation in the near-surface environment,” he said.

“The drilling in the Southern Shoot high-grade copper zone has significantly de-risked the project development, confirmed both the high-grade nature of the hanging wall mineralisation, the significant widths of footwall mineralisation and extended ore grade mineralisation into the nearsurface environment at the southern end of the deposit.

“We are particularly pleased with the results we are now receiving below the Fault Gap area, which we believe, with further drilling, will reveal a significant volume of high-grade copper mineralisation below an area which was previously believed to hold little mineralisation.

“Drilling will continue here in the immediate future targeting depth extensions to the Northern Shoot to increase the tonnage that may be available from depth extensions to the proposed open pit development.

“With the reduction to a single drill rig, drilling is now focused on extending the mineralisation northwards, within the near-surface environment beyond the proposed pit outline in the belief that the mineralisation is not yet closed off in that direction,” Mr Munckton said.

“We are looking forward to a strong and continuing flow of news in the lead-up to Christmas and into the New Year.”

R:\ADM_Administration\ASX\ASX Releases & Confirmations\2013 Announcements

Figure 2 – Long Section showing recent drilling results and proposed in-fill RC & extension drilling

==> picture [714 x 447] intentionally omitted <==

R:\ADM_Administration\ASX\ASX Releases & Confirmations\2013 Announcements

Figure 3 – Long Section showing recent drilling results and proposed in-fill RC & extension drilling

==> picture [707 x 442] intentionally omitted <==

R:\ADM_Administration\ASX\ASX Releases & Confirmations\2013 Announcements

==> picture [392 x 392] intentionally omitted <==

Figure 4 – Plan showing proposed in-fill RC & extension drilling

ENDS

For further information:

Investors

Andrew Munckton – Syndicated Metals Mobile: 0435 635 598

Media

Nicholas Read – Read Corporate Mobile: 0419 929 046

R:\ADM_Administration\ASX\ASX Releases & Confirmations\2013 Announcements

Table 1: Drill-Hole Summary and Significant Intercepts

Hole ID	Northing (m)	Easting (m)	Depth (m)	Dip	Azi	From (m)	To (m)	Interval (m)	Cu (%)	Au (ppm)	Ag (ppm)	Co (ppm)	S (%)
BARC074	10041	10055	40	-90	0	0	10	10	0.86	0.05	2.39	68	0.00
BARC075	10000	10050	30	-60	90	3	5	2	0.91	0.03	1.70	37	0.00
						7	9	2	0.79	0.01	1.65	42	0.00
BARC076	9960	10050	39	-60	90	0	28	28	1.50	0.15	1.82	133	0.36
					incl	0	9	9	3.04	0.33	4.88	262	0.01
					incl	14	17	3	0.83	0.04	0.05	54	0.00
					incl	22	28	6	1.32	0.10	1.08	144	1.64
BARC077	10000	9949	140	-68	90	115	130	15	0.94	0.10	NR	95	2.38
					incl	115	120	5	1.90	0.19	NR	170	4.74
BARC078	10000	9891	200	-70	90	188	192	5	1.41	0.11	NR	95	3.58
BARC079	9962	9886	180	-60	90	167	170	3	0.64	0.06	NR	56	1.81
BARC080	9921	9910	192	-62	90	134	144	10	1.86	0.16	NR	165	4.00
BARC081	9838	10030	100	-60	90	13	31	18	1.45	0.14	NR	102	0.30
					incl	13	23	10	2.40	0.20	NR	147	0.05
BARC082	9888	9954	117	-60	90	77	96	19	1.65	0.15	NR	153	3.00
					incl	77	82	5	3.68	0.37	NR	191	5.03
BARC083	9840	9950	140	-60	90	75	117	42	1.57	0.13	NR	103	2.47
					incl	75	84	9	3.36	0.26	NR	245	5.05
BARC084	10347	9980	39	-60	90			No Intersection >0.50% Cu
BARC085	9760	9840	240	-60	90			No Intersection >0.50% Cu
BARC086	10120	9975	80	-64	90	38	39	1	0.81	0.04	NR	33	0.86
BARC087	10200	10005	30	-60	90	20	23	3	0.63	0.05	NR	90	0.29
BARC088	10200	9950	90	-60	90	67	81	14	1.72	0.19	NR	123	3.09
					incl	67	73	6	3.30	0.32	NR	202	5.54
BARC089	10160	9970	80	-67	90	72	77	5	0.87	0.09	NR	43	3.11
BARC090	10160	9900	150	-64	90	115	135	20	1.48	0.16	NR	120	3.32
					incl	124	133	9	2.61	0.29	NR	198	5.78
BARC091	10080	10025	50	-60	90			No Intersection >0.50% Cu
BARC092	10120	9938	120	-60	90			No Intersection >0.50% Cu
BARC093	10040	9970	110	-65	90			Assays Pending
BARC094	9720	9836	250	-60	90			Assays Pending
BARC095	9920	9860	230	-68	90			Assays Pending
BARC096	10480	10000	20	-60	90			Assays Pending
BARC097	10480	9970	60	-60	90			Assays Pending
BARC098	1450	9998	25	-60	90			Assays Pending
BARC099	10409	10003	20	-60	90			Assays Pending
BARC100	10380	9990	60	-60	90			Assays Pending
BARC101	10320	9990	30	-60	90			Assays Pending
BARC102	10280	10000	60	-60	90			Assays Pending
BARC103	10240	10020	20	-60	90			Assays Pending

R:\ADM_Administration\ASX\ASX Releases & Confirmations\2013 Announcements

Table 1: Drill-Hole Summary and Significant Intercepts (continued)

Hole ID	Northing (m)	Easting (m)	Depth (m)	Dip	Azi	From (m)	To (m)	Interval (m)	Cu (%)	Au (ppm)	Ag (ppm)	Co (ppm)	S (%)
BARC104	10120	10030	25	-60	90	Assays Pending
BARC105	9960	10062	25	-60	90	Assays Pending
BARC106	9880	10050	40	-60	90	Assays Pending
BARC107	9840	10043	35	-60	90	Assays Pending
BARC108	9800	10033	50	-60	90	Assays Pending
BARC109	9720	10025	50	-60	90	Assays Pending
BARC110	9720	9953	110	-60	90	Assays Pending
BARC111	10350	9840	178	-60	90	Assays Pending
BARC112	9880	9835	250	-60	90	Assays Pending
BARC113	10280	9940	90	-78	90	Assays Pending
BARC114	10480	9890	150	-60	90	Assays Pending

Note : the mineralised interval length of intercepts shown in the table are down-hole distances and are not corrected for angle of dip, a cut-off grade of 0.5% Cu was used for calculating mineralised intervals.

Competent Person’s Statement

The information in this report that relates to Exploration Results and Mineral Resources is based on information compiled by Mr Andrew Munckton who is a Member of The Australasian Institute of Mining and Metallurgy (MAusIMM) and who has sufficient experience 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 (the “JORC Code”). Mr Munckton is a full-time employee of Syndicated Metals Limited and consents to the inclusion in the report of the Exploration Results and Mineral Resources in the form and context in which they appear.

Exploration Targets

This report comments on and discusses Syndicated Metals Limited’s exploration in terms of target size and type. The information relating to Exploration Targets should not be misunderstood or misconstrued as an estimate of Mineral Resources or Ore Reserves. The potential quantity and quality of material discussed as Exploration Targets is conceptual in nature since there has been insufficient work completed to define them as Mineral Resources or Ore Reserves. It is uncertain if further exploration work will result in the determination of a Mineral Resource or Ore Reserve.

R:\ADM_Administration\ASX\ASX Releases & Confirmations\2013 Announcements

Criteria JORC Code explanation	Criteria JORC Code explanation
SamplingTechniques and Data
Sampling techniques	Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.	41 Reverse Circulation (RC) drill holes completed by Syndicated Metals Limited (SMD) RC drillholes were sampled at 1m intervals using a rig mounted cyclone with an 87.5-12.5% riffle splitter to collect a 3.5kg to 4kg sample. Selected ore zone samples were selected based on Geology and Handheld XRF analysis and were sent to SGS laboratories in Townsville for multi-element analysis and Au analysis. Reject samples are bagged and will be retained on site for 12 months before discarding.
	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used	Sampling was carried using Syndicated Metals Limited (SMD) sampling protocols and QAQC procedures.
	Aspects of the determination of mineralisation that are Material to the Public Report- In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to 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	RC drilling was used to obtain a 1m representative sample approx. 3.5 to 4kg in weight. A multi element concentration reading of each interval was taken using a Niton Portable XRF. The samples submitted for assay were given a unique sample ID and shipped to SGS Laboratories, Townsville. Samples were dried, pulverised by an LM2 and Analysed for Cu, Co, S, Ca, Mg, Fe, V, As, Cd, Cr, Pb, Zn, Zr, K, Ti, Ag by four acid digest with an ICP finish. Gold was analysed using fire assay.
Drilling techniques	Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg 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).	RC Drilling has been undertaken using a face sampling percussion hammer with 5 ¼” to 5 ½" bits
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed.	RC drilling recoveries were monitored visually by means approximating bag weight to theoretical weight followed by checking sample loss through outside return and samplingequipment.
	Measures taken to maximise sample recovery and ensure representative nature of the samples.	RC holes were collared with a well-fitting stuffing box to ensure material to outside return was minimized. Drilling was undertaken using auxiliary compressors and boosters to keep the hole dry and lift the sample to the sampling equipment. Cyclone and sampling equipment was checked regularly and cleaned. Hole was flushed at end of each sample and end of each rod. Bit was pulled back after every metre to reduce contamination through the ore zone.
	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.	Recovery was visually checked and sample loss of the fine or coarse fraction was minimised by following SMD RC drilling protocols and procedures.
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	Logging was completed by a Geologist using SMD logging procedures that were developed to accurately reflect the geology of the area and mineralisation styles.
	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.	RC logging is qualitative and quantitative in nature and captured downhole depth, colour, lithology, texture, alteration, sulphide type, sulphide percentage and structure. Each Calico bag sample was also analysed for magnetic susceptibility using the KT6 Magnetic SusceptibilityMeter.
	The total length and percentage of the relevant intersections logged.	All RC drillholes are logged in full.

R:\ADM_Administration\ASX\ASX Releases & Confirmations\2013 Announcements

Sub-sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken.	No sampling logs available for diamond drilling.
	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	The RC samples were split (87.5%-12.5%) by the multi- tiered riffle splitter within the cyclone of the drilling rig. Majority of the samples were recorded as dry and minimal wet samples were encountered. Sample duplicates were obtained by splitting the reject sample in the field usingthe multi-tier riffle splitter.
	For all sample types, the nature, quality and appropriateness of the sample preparation technique.	The samples were sent to an accredited laboratory for sample preparation and analysis. SGS laboratory follows industry best standards in sample preparation including: optimal drying of the sample (temperature and time for base metal sample), crushing and pulverization of the entire sample in a LM2 to a grind size of 85% passing at 75 microns.
	Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.	Quality Control (QC) procedures involved the use of certified reference material - Base metals standards prepared by Ore Research and Exploration Pty Ltd, along with blanks and field sample duplicates.
	Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.	RC field sample duplicates were taken twice in every 100 samples.
	Whether sample sizes are appropriate to the grain size of the material being sampled.	The sample sizes are believed to be appropriate to correctly represent the style, thickness of copper and gold mineralisation in the Mt Isa Inlier.
Quality of assay data and laboratory tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	The use of Four Acid digest and Fire assay are classified as total assays.
	For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.	No geophysical tools were used to determine any element concentrations used in the resource estimate. A handheld XRF instrument was used to determine if samples are to be submitted for chemical analysis (assay).
	Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	Syndicated Metals inserted certified standards and duplicates into the sample sequence. Field duplicates and standard control samples have been used at a frequency of 2 field duplicates and 6 standards per 100 samples. ALS Laboratories QAQC included insertion of certified standards, blanks, check replicates and fineness checks to ensure grind size of 85% passing 75 micron as part of their own internal procedures.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel.	None undertaken in this programme.
	The use of twinned holes.	None undertaken in this programme.
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	Geological and sampling information was collected using an electronic logging system.
	Discuss any adjustment to assay data.	No adjustments were undertaken.
Location of data points	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	Initial collar locations were determined by handheld GPS device and will be surveyed using RTK-60 GPS by licensed surveyors before resource estimates are completed.
	Specification of the grid system used.	GDA94 MGA Zone 54 datum North.
	Quality and adequacy of topographic control.	Drillholes are surveyed by licensed surveyors at the conclusion of the program. Prior to the hole being surveyed the hole ispicked upusinghandheld GPS.

R:\ADM_Administration\ASX\ASX Releases & Confirmations\2013 Announcements

Data spacing and distribution	Data spacing for reporting of Exploration Results.	Drill spacing in this program is at approximately 40m x 40m
	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.	The drill spacing in this program is at 40m x 40m, which is believed to be sufficient to classify the Barbara Copper gold deposit as Measured, Indicated and Inferred Mineral Resource.
	Whether sample compositing has been applied.	All samples were collected at 1m sample intervals. No compositingwas necessaryor completed.
Orientation of data in relation to geological structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.	The predominant drill orientation of the drilling is –60 to grid east. At this orientation the intercepts are close to true widths. However, there are a number of holes which have been drilled between -60 and -90 degrees to the east which are at an angle to the main ore zone. From the sampling to date no bias has been identified due to the orientation.
	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 reported if material.	No bias is currently known.
Sample security	The measures taken to ensure sample security.	Samples were stored on site and transported to SGS Laboratories in Townsville for Preparation and multi- element and fire assay analyses. The samples were labeled from the point of collection and retained this unique number throughout the analyticalprocess.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	No audits or reviews have been undertaken at this point.

R:\ADM_Administration\ASX\ASX Releases & Confirmations\2013 Announcements

Criteria JORC Code explanation	Criteria JORC Code explanation
Exploration Results
Mineral tenement and land tenure status	Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.	Barbara Resource is located within EPM16112 and EPM15564. The current registered holder for EPM15564 is Syndicated Metals Limited (SMD) and EPM16112 is held by 51% by SMD and 49% by Orbis Gold Limited (Orbis). These tenements are currently in the process of being transferred to the CopperChem/Syndicated Metals JV, removing any ownership of the tenements by Orbis. The area covered by the Barbara Resource is subject to two separate MDL applications MDL499 (covering the whole extent of EPM16112) and MDL500 (covering the single sub block CLON 383 B within EPM15564) EPM16112 and EPM15564 and their respective MDL applications were recently subject to the Barbara Joint Venture Earn-in Agreement with CopperChem Limited (CopperChem) for the joint evaluation, development, mining and processing of the Barbara Resource. Once the Earn–in is completed, CopperChem will have a 50% interest in MDL499, MDL500 and EPM16112 and a portion of EPM15564. The tenements sit within the Kalkadoon People #4 Native Title claim.
	The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	The tenements are in good standing and no known impediments exist.
Exploration done by other parties	Acknowledgment and appraisal of exploration by other parties.	Barbara Resource: 19 holes out of 192 have been drilled by various companies in the 1960’s - 1990’s by Nippon Mining Australia Limited (Nippon), Cyprus Gold Corporation (Cyprus) and Murchison United NL (Murchison). Nippon conducted exploration in the area from 1965 to 1995, during which time 7 diamond holes were completed (DDH1-DDH7). Cyprus held the Barbara tenement from 1993 to 1995, and completed holes BAQ9301, BAQ9302 and BAQ9303. A diamond tail (NQ2 core from 120.3 to 193.2m was completed for BAQ9303. The RC holes were sampled at 1m intervals and analysed for Cu and Au by ALS laboratories in Mt Isa. Murchison held the ground between 1995 and 2000. During their tenure they completed 9 shallow RC holes. The holes were sampled at 1-2m intervals in the mineralized zones and at 5m outside of mineralisation. Samples were sent to Amdel for Cu analysis.
Geology	Deposit type, geological setting and style of mineralisation.	The Barbara Resource is a shear hosted deposit within acid volcanics within the Kalkadoon-Leichhardt belt of the Mt Isa Inlier. The NW striking lode dips at approximately 60°to the south west, and varies from 2m to 30m true thickness.
Drill hole Information	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:	Refer to attached Table 1.
	Easting and northing of the drill hole collar	Refer to attached Table 1.
	elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar	Refer to attached Table 1.
	dip and azimuth of the hole	Refer to attached Table 1.
	down hole length and interception depth	Refer to attached Table 1.
	hole length.	Refer to attached Table 1.

R:\ADM_Administration\ASX\ASX Releases & Confirmations\2013 Announcements

	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.	Refer to attached Table1.
Data aggregation methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.	The high grades in the exploration results have not been cut. Weighted averaging has only occurred in diamond drilling, where irregular sample intervals were taken.
	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.	High grade massive sulphide intervals internal to broader zones of sulphide mineralisation are reported as included intervals.
	The assumptions used for any reporting of metal equivalent values should be clearly stated.	No metal equivalent values are used for reporting exploration results.
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reporting of Exploration Results.	Not applicable
	If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.	RC Drilling at Barbara was drilled at an azimuth of 51 Degrees to NNE and a dip of -60 to -90, The orientation of the target area/ore zone has a strike of 310 degrees and dips -60 to the west. The intersection angles for the majority of drilling were at an angle -75 to 90 degrees to the mineralised zones. Therefore reported downhole intersections for -60 to -75 degree holes are approximate to true width and the intersection honours the true width of the ore zone. However, the drillholes completed with dips from -75 to -90 overstate the thickness of the target/orezone. The degree of this, depends on the orientation of the hole.
	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’).	See above.
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Refer to Figures 2, 3 and 4.
Balanced reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	All results are reported.
Other substantive exploration data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	The outline of the DHEM Survey Area on long section, refer to Figure 2 and 3.
Further work	The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step- out drilling).	The results listed in this report are the second set of drillholes of this program. Further drillholes have been drilled but have not yet been reported. Further drill holes are being drilled currently and results will be released once this information is received.
	Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	Refer to Figures 2 to and 3

R:\ADM_Administration\ASX\ASX Releases & Confirmations\2013 Announcements