MARMOTA LIMITED — Capital/Financing Update 2015

Oct 13, 2015

14 October 2015

ASX ANNOUNCEMENT

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STRONG GOLD ANOMALIES: Widgety prospect

Background

• In July 2015, Marmota Energy Limited (ASX: MEU) (“Marmota”) commenced an aggressive gold exploration program across its prime tenement holdings around the Challenger gold mine.

• Marmota has adopted the same calcrete sampling methodology that was used to find Challenger itself.

Key Points

• Calcrete sampling at the Widgety prospect (50km SE of the Challenger gold mine) has returned strong gold anomalous assay results.

• 96 sample locations at Widgety have returned anomalous gold-incalcrete readings ≥ 20 ppb (out of 331 samples taken at Widgety).

• For comparison, a gold-in-calcrete result of 20ppb is:

• better than 98.4% of all calcrete sampling data recorded in the South Australian Government database of 192,677 samples

• RC drilling to commence at Widgety prospect in November 2015

WIDGETY PROSPECT

Existing data at Widgety highlighted a gold-in-calcrete geochemical anomaly, trending in the same north-east direction as other geochemical anomalies within the region. Widgety was highlighted as one of Marmota’s gold target areas in the Gawler Craton [see ASX:MEU announcement: 6 July 2015]. Calcrete sampling via auger drilling was carried out at the Widgety prospect on a fine 50m x 50m grid pattern, in-filling existing anomalous data.

Assay results indicate the gold anomaly is coherent, with consistent results up to 60ppb gold (10ppb is considered anomalous) covering an area 1700m x 1000m (see Figures 1 and 2). The Widgety prospect also has associated aeromagnetic anomalies (see Figure 3).

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Figure 1: Plan of gold-in-calcrete results at Widgety A coherent anomaly is apparent with a high number of samples achieving greater than 20ppb gold

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Detail of Figure 1

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Figure 2: Widgety: Detail of gold-in-calcrete anomalism (contoured at 10ppb and 20ppb gold)

Marmota’s Chairman, Dr Colin Rose, said:

• “ Marmota is searching for Challenger-style systems – Challenger itself has a small footprint, with narrow shoots. The calcrete sampling program at Widgety has identified not just one, but several anomalous clusters, each around 250m wide. Detailed ground magnetometry and gravity will be used to further refine targets in advance of RC drilling in November. ”

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Figure 3: The Widgety prospect also has associated magnetic anomalies

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Location of Widgety Prospect

The Widgety prospect is located about 50km south-east of the Challenger gold mine, in the ‘neck’ of Marmota’s Muckanippie Tenement, in the Woomera Prohibited Defence Area, in the highly prospective and significantly underexplored Gawler Craton.

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Figure 4: Marmota’s Gawler Craton Gold Project, showing the location of Widgety and new tenements

Calcrete Sampling

Calcrete sampling is a useful exploration tool utilised to detect potential gold mineralisation hosted in basement rocks beneath the surface. It is the very method that was used to discover the Challenger Gold Mine. Calcrete is a calcium rich sedimentary rock type that typically forms just below the surface within the project region. It is typically formed by calcium carbonate precipitated from solution and re-deposited through the agency of infiltrating waters, or deposited by the escape of carbon dioxide from groundwater. It occurs in a variety of forms, where it can form a duricrust, can be pisolitic, nodular, pebbly, slabby or massive and powdery. It is a proven accumulator of gold and other metals in the Gawler Craton. Calcrete samples are obtained by auger drilling close to the surface.

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Empirical Distribution of ‘Gold-in-Calcrete’ The Gawler Craton data set The South Australian Government maintains and collects a huge database of all registered calcrete samples, currently totaling 192,677 different calcrete samples taken in the Gawler Craton area. The database includes both random 1-mile grid data and massive infill data. To enable meaningful evaluation, Marmota has conducted a basic statistical analysis on both:

• A: ‘Pure random sampling’ data set Size: 3,691 calcrete samples [ based on pure 1 mile grid data –– no in-fill ]

For this pure random sampling dataset, a gold-in-calcrete result of:

20 ppb is better than 99.8% of pure random data

• B: Massive South Australia Government database The Gawler Craton data set Size: 192,677 calcrete samples [ based on: random data AND in-fill sampling ]

For the complete data set (including in-fill sampling), a gold-in-calcrete result of:

20 ppb Au is better than 98.4% of all data collected 25 ppb Au is better than 98.9% of all data collected 30 ppb Au is better than 99.2% of all data collected

10 ppb gold-in-calcrete at a specified sample spacing is typically considered to be anomalous.

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Figure 5: Gawler Craton data set: Empirical distribution (pmf) of gold-in-calcrete ( )

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Competent Persons Statement

The information in this release that relates to Exploration Results and Mineral Resources is based on information compiled by Dan Gray as Senior Project Geologist of Marmota Energy Limited who is a member of the Australasian Institute of Geoscientists. He has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activities being undertaken 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 Gray consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

For further information, please contact:

Marmota Energy Limited David Williams Managing Director Email: info@marmotaenergy.com.au

Level 30, Westpac House 91 King William Street Adelaide SA 5000 ABN: 38 119 270 816 T: (61 8) 7088 4883 F: (61 8) 7088 4884 www.marmotaenergy.com.au

About Marmota Energy Limited

Marmota Energy Limited (ASX: MEU) is a South Australian mining exploration company, focused on gold, copper and uranium. Gold exploration is centred on the Company’s dominant tenement holding in the highly prospective and significantly underexplored Gawler Craton, near the Challenger gold mine, in the Woomera Prohibited Defence Area. The Company’s cornerstone copper project is based at the Melton project on the Yorke Peninsula. The Company’s largest uranium project is at Junction Dam adjacent to the Honeymoon mine. For more information, please visit: www.marmotaenergy.com.au

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Appendix 1

JORC Code, 2012 Edition – Table 1 report

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	•	Calcrete samples were collected on a pre-
techniques		channels, random chips, or specific specialised		planned grid pattern of varying dimensions
		industry standard measurement tools		depending upon target. The grids were
		appropriate to the minerals under investigation,		oriented on an east-west/north-south
		such as down hole gamma sondes, or		direction. Occasional grab samples were
		handheld XRF instruments, etc). These		obtained where calcrete outcrops were
		examples should not be taken as limiting the		noted.
		broad meaning of sampling.	•	Calcrete samples were obtained from varying
	•	Include reference to measures taken to ensure		depths ranging from surface to 110cm the
		sample representivity and the appropriate		maximum achievable depth using a hand
		calibration of any measurement tools or		held mechanical auger. Samples were sieved
		systems used.		and only good quality calcrete (nodular or
	•	Aspects of the determination of mineralisation		massive) was taken for geochemical
		that are Material to the Public Report.		analysis. Samples obtained were ~1kg in
	•	In cases where ‘industry standard’ work has		weight.
		been done this would be relatively simple (eg	•	Samples are annotated with descriptions
		‘reverse circulation drilling was used to obtain		including, location, type of calcrete, depth,
		1 m samples from which 3 kg was pulverised		level of HCl reaction, terrain, rock outcrop
		to produce a 30 g charge for fire assay’). In		occurrence and any notes relating to
		other cases more explanation may be		potential contamination.
		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-	•	Hand held mechanical auger was used to
techniques		hole hammer, rotary air blast, auger, Bangka,		obtain calcrete samples. The auger blade is
		sonic, etc) and details (eg core diameter, triple		20cm in diameter with a maximum reach of
		or standard tube, depth of diamond tails, face-		110cm when utilizing an extension rod.
		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	•	Samples were taken by hand and sieved so
recovery		chip sample recoveries and results assessed.		that a good quality calcrete only sample
	•	Measures taken to maximise sample recovery		obtained for geochemical analysis.
		and ensure representative nature of the	•	Samples averaging 1kg in weight were taken,
		samples.		which are considered to be representative for
	•	Whether a relationship exists between sample		this sampling medium (calcrete).
		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	•	Recorded data at each sample point included
		geologically and geotechnically logged to a		sample number, GDA94 Zone 53 Co-
		level of detail to support appropriate Mineral		ordinates, calcrete type, sample depth, level
		Resource estimation, mining studies and		of HCl reaction, terrain, rock outcrop or float
		metallurgical studies.		occurrence and any notes relating to
	•	Whether logging is qualitative or quantitative in		potential contamination eg near roads.
		nature. Core (or costean, channel, etc)
		photography.
	•	The total length and percentage of the relevant
		intersections logged.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sub-	•	If core, whether cut or sawn and whether	•	No sub sampling was undertaken during the
sampling		quarter, half or all core taken.		calcrete sampling program.
techniques	•	If non-core, whether riffled, tube sampled,
and sample		rotary split, etc and whether sampled wet or
preparation		dry.
	•	For all sample types, the nature, quality and
		appropriateness of the sample preparation
		technique.
	•	Quality control procedures adopted for all sub-
		sampling stages to maximise representivity of
		samples.
	•	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.
	•	Whether sample sizes are appropriate to the
		grain size of the material being sampled.
Quality of	•	The nature, quality and appropriateness of the	•	A certified and accredited global laboratory
assay data		assaying and laboratory procedures used and		(Intertek Genalysis) was used for all assays.
and		whether the technique is considered partial or	•	Samples from Widgety, were subject to
laboratory		total.		analysis by FA25/MS; 25gram lead collection
tests	•	For geophysical tools, spectrometers,		fire assay in new pots. Analysed by
		handheld XRF instruments, etc, the		Inductively Coupled Plasma Mass
		parameters used in determining the analysis		Spectrometry.
		including instrument make and model, reading	•	Internal certified laboratory QA/QC is
		times, calibrations factors applied and their		undertaken by Intertek Genalysis.
		derivation, etc.	•	No additional standards, blanks or field
	•	Nature of quality control procedures adopted		duplicates were considered necessary for
		(eg standards, blanks, duplicates, external		this calcrete sampling program.
		laboratory checks) and whether acceptable
		levels of accuracy (ie lack of bias) and
		precision have been established.
Verification	•	The verification of significant intersections by	•	Field data is captured on field sheets and
of sampling		either independent or alternative company		transferred to digital medium at the end of
and		personnel.		each day. All data is managed in-house by
assaying	•	The use of twinned holes.		Marmota Energy.
	•	Documentation of primary data, data entry	•	Laboratory assay data is not adjusted.
		procedures, data verification, data storage
		(physical and electronic) protocols.
	•	Discuss any adjustment to assay data.
Location of	•	Accuracy and quality of surveys used to locate	•	All samples are located using hand held GPS
data points		drill holes (collar and down-hole surveys),		with an accuracy generally within +/- 5m. All
		trenches, mine workings and other locations		coordinates are recorded in GDA94, Zone
		used in Mineral Resource estimation.		53.
	•	Specification of the grid system used.
	•	Quality and adequacy of topographic control.
Data	•	Data spacing for reporting of Exploration	•	Samples were collected at 50m x 50m grid
spacing and		Results.		spacing which is considered to be
distribution	•	Whether the data spacing and distribution is		appropriate spacing for progressing the
		sufficient to establish the degree of geological		target to the next stage of exploration.
		and grade continuity appropriate for the	•	Calcrete sampling only – no association or
		Mineral Resource and Ore Reserve estimation		reliance should be made on level of
		procedure(s) and classifications applied.		mineralisation
	•	Whether sample compositing has been	•	Samples were not composited.
		applied.
Orientation	•	Whether the orientation of sampling achieves	•	The calcrete sampling when undertaken on a
of data in		unbiased sampling of possible structures and		close spaced grid (ie Widgety 50m x 50m)
relation to		the extent to which this is known, considering		highlights trends in gold mineralisation,
geological		the deposit type.		assumed to be structure related.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
structure	•	If the relationship between the drilling	•	It is not considered that the sampling method
		orientation and the orientation of key		(grid calcrete sampling) should introduce a
		mineralised structures is considered to have		sampling bias.
		introduced a sampling bias, this should be
		assessed and reported if material.
Sample	•	The measures taken to ensure sample	•	Each sample was put into individually
security		security.		numbered calico bags which were tied and
				placed into cable tied polyweave bags.
			•	Samples remained at the remote field camps
				with Marmota staff until Marmota staff
				returned to Adelaide and the samples
				dropped off at the Intertek Genalysis
				Laboratoryin Wingfield,Adelaide.
Audits or	•	The results of any audits or reviews of	•	No audits or reviews have been undertaken.
reviews		sampling techniques and data.

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	•	Type, reference name/number, location and	•	Muckanippie (EL5195) is 100% owned by
tenement		ownership including agreements or material		Marmota Energy Limited.
and land		issues with third parties such as joint ventures,	•	The project is located in the Gawler Craton of
tenure		partnerships, overriding royalties, native title		South Australia.
status		interests, historical sites, wilderness or national	•	There are no third party agreements, no
		park and environmental settings.		government royalties, historical sites or
	•	The security of the tenure held at the time of		environmental issues.
		reporting along with any known impediments to	•	Underlying land title is Crown Lease.
		obtaining a licence to operate in the area.	•	EL5195isingood standing.
Exploration	•	Acknowledgment and appraisal of exploration	•	Marmota has reviewed past exploration data
done by		by other parties.		over the region. The region in which EL 5195
other				is located has been the subject of mineral
parties				exploration in the past by various companies
				includingNormandy.
Geology	•	Deposit type, geological setting and style of	•	Style of mineralisation in the region is
		mineralisation.		considered to be Challenger style gold
				mineralisation.
Drill hole	•	A summary of all information material to the	•	N/A, no drilling conducted.
Information		understanding of the exploration results
		including a tabulation of the following
		information for all Material drill holes:
		o easting and northing of the drill hole collar
		o elevation or RL (Reduced Level – elevation
		above sea level in metres) of the drill hole
		collar
		o dip and azimuth of the hole
		o down hole length and interception depth
		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	•	In reporting Exploration Results, weighting	•	N/A, no drilling conducted.
aggregation		averaging techniques, maximum and/or
methods		minimum grade truncations (eg cutting of high
		grades) and cut-offgrades are usually Material

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		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	•	These relationships are particularly important	•	N/A, no drilling conducted.
between		in the reporting of Exploration Results.
mineralisati	•	If the geometry of the mineralisation with
on widths		respect to the drill hole angle is known, its
and		nature should be reported.
intercept	•	If it is not known and only the down hole
lengths		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)	•	See figures in release attached.
		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.
Balanced	•	Where comprehensive reporting of all	•	Geochemical data was gridded and
reporting		Exploration Results is not practicable,		contoured.
		representative reporting of both low and high
		grades and/or widths should be practiced to
		avoid misleading reporting of Exploration
		Results.
Other	•	Other exploration data, if meaningful and	•	See attached release.
substantive		material, should be reported including (but not
exploration		limited to): geological observations;
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	•	The nature and scale of planned further work	•	See attached release.
work		(eg tests for lateral extensions or depth
		extensions or large-scale step-out drilling).
	•	Diagrams clearly highlighting the areas of
		possible extensions, including the main
		geological interpretations and future drilling
		areas, provided this information is not
		commercially sensitive.

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