MATSA RESOURCES LIMITED — Capital/Financing Update 2015

May 13, 2015

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Matsa Resources Limited
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LIMITED

ABN 48 106 732 487

ASX Announcement

14 May 2015

Maiden Reserve and Positive Mt Henry Feasibility Study (Matsa 30%)

Highlights

CORPORATE SUMMARY

Executive Chairman

• Results from the recently completed Mt Henry Feasibility Study (MHFS) have been released by Panoramic Resources Ltd (ASX:PAN) which demonstrates a robust base case.

• Key outcomes of the MHFS on 100% Project Basis (PAN 70%/MAT 30%)

• Annual production - ~120,000oz pa

• Maiden Reserve - 922,900oz Au (20.2Mt @ 1.42g/t)

• Initial Project life – 7.3 years, total production 865,000oz

• Average C1 cash cost – A$1,024/oz

• Pre-development capital cost – A$161M

• Robust project economics – cumulative pre-tax free cash flow of A$179M at A$1,500/oz

• Project NPV’s expected to be A$39.6M at A$1,500/oz, A$80.2M at A$1,600/oz and A$120.7M at A$1,700/oz

• Capital cost reductions may be possible especially under a competitive bid situation.

• Matsa and Panoramic are commencing a dual IPO/trade sale process to maximise the monetary value of this financially robust gold project.

Paul Poli

Director

Frank Sibbel

Director & Company Secretary

Andrew Chapman

Shares on Issue

144.15 million

Unlisted Options

14.85 million @ $0.25 - $0.43

Top 20 shareholders

Hold 50.36%

Share Price on 14 May 2015

28 cents

Market Capitalisation

$40.36 million

• Two Australian banks have provided indicative term sheets for debt financing of the project which indicates that a significant portion of the project cost could be debt funded.

Head Office: Suite 11, 139 Newcastle Street, Perth Western Australia 6000 Tel : +61 8 9230 3555 Fax: +61 8 9227 0370 Bangkok Office: Unit 1808, Pacific Place 2, 142 Sukhumvit Road, Klongtoey, Bangkok 10110 Tel : +66 0 2653 0258 Fax : +66 0 2653 0258 reception@matsa.com.au www.matsa.com.au

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Matsa Resources Limited
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Matsa is very pleased to report that Panoramic Resources (ASX:PAN) has released results from its recently completed Mt Henry Gold Project Feasibility Study (MHFS). Since acquiring a 70% interest in the Project from Matsa in July 2012, Panoramic has completed and released a positive Scoping Study (December 2012), undertaken a significant resource infill drilling campaign in 2013, which increased the confidence in the resources and, over the last two years, determined and evaluated a development path to maximise the economics of the Project via the delivery of the MHFS.

Matsa Executive Chairman Mr Paul Poli said “Firstly, let me thank Panoramic and their entire team led by Mr Peter Harold for delivering on every aspect of their agreement with Matsa. They are an exceptionally talented group of people. We sincerely hold them in high regard and recommend Panoramic to any future joint venture partners as a quality group of people to do business with. “

Mr Poli added “Their meticulous work in the MHFS confirms without doubt the value that the Mt Henry Project holds and the value that the project will bring to Matsa. This project provides another example of Matsa’s deliberate strategy of holding a pipeline of high quality projects which will underpin Matsa’s growth in shareholder value for the future. The task of monetising this asset into substantial cold hard cash is now underway.”

PAN announcement which includes all information as required under JORC 2012 is included as an attachment to this

release.

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Figure 1: Mt Henry JV Project Location

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Matsa Resources Limited
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Mount Henry Feasibility Study Outcomes

The MHFS on a 100% Project basis, is based on a mining inventory of 21.1Mt @1.41g/t (contained gold 961,000oz.) assuming ore is sourced from three open pit Resources, Mt Henry, Selene and North Scotia. 95.6% of the Mining Inventory is based on the Probable Ore Reserve estimate of 20.2Mt @ 1.42g/t Au (contained gold 922,900oz) . Mining is to be undertaken by conventional open pit mining methods. Ore would be processed on site through a centrally located 3Mtpa conventional Carbon in Leach (“CIL”) process plant at an average gold recovery of 90%. Processing uses a three stage crushing circuit, followed by two stage ball milling to achieve a target grind size of P80 38µm. Key Feasibility Study outcomes are given in Table 1.

Item	Base Case (A$1,500/oz)
Mineral Resources	1.7Moz contained gold at a 0.4g/t cut-off
Mining inventory	21.1Mt @ 1.41g/t Au for 0.96Moz contained gold
Mine life (processing)	7.3 years (at 3Mtpa)
LOM* production	865,000oz Au (average ~120,000ozpa)
Total capital costs	A$186M (A$161M pre-production)
Average LOM cash costs (C1)	A$1,024/oz Au
Average LOM “all-in sustaining costs”	A$1,106/oz Au
LOM processing recovery	90%
LOM strip ratio	4.2:1
Revenue	A$1,297M over LOM
EBITDA	A$366M over LOM
Post-tax cash flow	A$120M over LOM
Post-tax NPV (8%, real)	A$39.6M
Payback period	4.6 years from first production
Construction period	16 months; first gold production in Month 17
Mineral Resources	1.7Moz contained gold at a 0.4g/t cut-off

Table 1: Key Outcomes from Feasibility Base Case on 100% project basis, (Matsa Interest 30%)

*LOM - Life of Mine

The financial evaluation of the open pit resources is based on applying robust assumptions on cut-off grade, application of suitable modifying factors including revenue assumptions, mining costs, strip-ratio and other geotechnical considerations as detailed in the Resources Section below. Figure 2 shows the Cumulative Net Free Cash Flow (base case) for the project over 103 months of construction and processing followed by a further 12 months closure period.

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Matsa Resources Limited
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Monthly and Cumulative Free Cash Flow (A$'M)
20 200
15 150
10 100
5 50
0 0
-5 -50
-10 -100
-15 -150
-20 -200
Net Free Cash Flow Cumulative Net Free Cash Flow
1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97 103 109 115
Monthly FCF (A$'M)
Cumulative FCF (A$'M)
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Figure 2: Cumulative Net Free Cash Flow Base Case on 100% Project (Matsa 30% Interest)

Project NPV sensitivity to changes in the A$ gold price is shown in Table 2.

Mt Henry NPV A$M	1,500 39.6	A$/oz Gold Price
		1,600 1,	700 1,800
		80.2 12	0.7 161.3

Table 2: NPV Sensitivity to varying A$ gold prices

Key Risks

A number of key risks were identified by PAN that may impact (either positively or negatively) on the economics of the Mt Henry Project. These risks include, but are not limited to:

• US$ Gold price and A$:US$ FX rate

• Capital and operating costs

• Processing optimisation and recoveries

• Project financing

• Regulatory approvals

Next Steps

Matsa is pleased and encouraged that the MHFS Base Case demonstrates a robust project. As announced PAN have already received indicative terms sheets from two Australian banks for debt financing of the project, which indicate that a significant portion of the project’s construction cost could be debt funded.

Whilst the Joint Venture parties could proceed to financing and development of Mt Henry it is the view of both parties that shareholders are best served by exploring alternative avenues to realise value. To this end, the Joint Venture parties are preparing to commence a dual IPO/trade sale process to realise value.

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Matsa Resources Limited
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For further Information please contact:

Paul Poli Executive Chairman

Phone +61 8 9230 3555 Fax +61 8 9227 0370 Email reception@matsa.com.au Web www.matsa.com.au

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14 May 2015

ASX: PAN

Positive results from Mt Henry Feasibility Study

Key Outcomes (100% Project Basis)

• Maiden Reserve - 922,900oz Au (20.2Mt @ 1.42g/t)

• Initial Project life – 7.3 years, aggregate production of 865,000oz

• Average annual production - ~ 120,000oz pa

• Average C1 cash cost – A$1,024/oz

• Pre-production capital cost – A$161M

• Robust Project economics – cumulative pre-tax free cash flow of A$179M at A$1,500/oz

• Project NPVs – A$39.6M at A$1,500/oz, A$80.2M at A$1,600/oz and A$120.7M at A$1,700/oz

Details

Panoramic Resources Limited (“Panoramic”) is pleased to report the results of the recently completed Mt Henry Gold Project Feasibility Study (“MHFS”). Since acquiring a 70% interest in the Project from Matsa Resources Limited (“Matsa”) in July 2012, Panoramic has:

• completed and released a positive Scoping Study ( refer to ASX announcement of 18 December 2012 );

• undertaken a significant Resource infill drilling campaign in 2013, which increased the confidence in the Resources; and

• over the last two years, determined and evaluated a development path to maximise the economics of the Project via the delivery of the MHFS.

The MHFS is based on a Mining Inventory of 21.1Mt @1.41g/t Au containing 961,000oz Au, with ore sourced from three open pit Resources, Mt Henry, Selene and North Scotia. Approximately 96% of the Mining Inventory is based on the Probable Ore Reserve estimate of 20.2Mt @1.42g/t Au containing 922,900oz Au, with mining to be undertaken by conventional open pit mining methods. Ore will be processed on site through a centrally located 3Mtpa conventional Carbon in Leach (“CIL”) process plant achieving an average gold recovery of 90%. Ore processing will use a three stage crushing circuit, followed by two stage ball milling to achieve a target grind size of P80 38µm. Key Feasibility Study outcomes of the Mt Henry Gold Project (“MHGP”) are detailed in Table 1.

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Table 1- Key Outcomes of the MHFS Base Case (100% Basis)

Item	Base Case (A$1,500/oz)
Mineral Resources	1.7Moz contained gold at a 0.4g/t cut-off
Mining inventory	21.1Mt @ 1.41g/t Au for 0.96Moz contained gold
Mine life (processing)	7.3 years (at 3Mtpa)
LOM* production	865,000oz Au (average ~120,000ozpa)
Total capital costs	A$186M (A$161M pre-production)
Average LOM cash costs (C1)	A$1,024/oz Au
Average LOM “all-in sustaining costs”	A$1,106/oz Au
LOM processing recovery	90%
LOM strip ratio	4.2:1
Revenue	A$1,297M over LOM
EBITDA	A$366M over LOM
Post-tax cash flow	A$120M over LOM
Post-tax NPV (8%, real)	A$39.6M
Payback period	4.6 years from first production
Construction period	16 months; first gold production in Month 17

*LOM – Life of Mine

The financial evaluation of the MHGP open pit Resources is based on generating a mining and processing schedule from detailed pit designs which are based on assumptions of cut-off grade, the application of suitable modifying factors, including commodity, exchange rate and revenue assumptions; estimation of capital and operating (mining, processing and administration) unit costs; metallurgical recovery and geotechnical considerations. Figure 1 shows the Cumulative Net Free Cash Flow (Base Case) of the MHFS over the 103 months of construction and production, followed by a further 12 month closure period.

Figure 1 – MHFS Base Case Cumulative (Real) Net Free Cash Flow

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MHFS Base Case Monthly and Cumulative Free Cash Flow (A$M)
20 200
15 150
10 100
5 50
0 0
-5 -50
-10 -100
-15 -150
-20 -200
Net Free Cash Flow Cumulative Net Free Cash Flow
1 7 13 19 25 31 37 43 49 55 61 67 73 79 85 91 97 103 109 115
Monthly FCF (A$M)
Cumulative FCF (A$M)
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Table 2 shows the MHFS NPV sensitivity to changes in the A$ gold price.

Table 2 – MHFS NPV Sensitivity to different A$ Gold Prices

NPV(A$M)		A$/oz Gold Price	A$/oz Gold Price
	1,500	1,600	1,700	1,800
	39.6	80.2	120.7	161.3

Key Assumptions of the MHFS

Financial

• Base Case gold price of A$1,500/oz (US$1,200/oz and A$:$US0.80).

• No annual escalation applied to revenue or costs.

• Net Present Value estimation is on a post-tax basis using a post-tax real discount rate of 8%.

• Construction time of 16 months, first gold production in Month 17.

Costs

• Pre-production capital cost of A$161M, including the construction of the Process Plant and associated infrastructure (i.e. access roads, offices, workshop, water supply, accommodation village, tailings storage facility) and pre-production mining costs (i.e. contractor mobilisation and establishment, clearing and top soil conservation, pre-strip).

• Mine operating cost estimates were supplied by a large, well established WA mining contractor, experienced in this type of open pit mining. Excavating, loading, haul, drill and blasting makes up ~93% of the total mining cost base. Mining costs average A$3.10/tonne of material moved over the life of the Project. The diesel price has been estimated at A$1.00/litre (after the diesel fuel rebate).

• Processing and administration costs are built up from first principles (labour, reagents and grinding media usage, power cost and consumption, maintenance costs), and average A$25.68/tonne of ore treated .

• The MHGP will access gas from the Kambalda to Esperance Gas Pipeline (“KEGP”). A take-off valve is located 2.5km from the main processing plant area. It is assumed that power would be supplied by a contract provider under a build own operate transfer (“BOOT”) arrangement. The unit cost of power is estimated to be 15.3 cents/kWhr.

Physicals

• Ore is hauled to the process plant ROM pad on a continuous basis using two truck fleets operating in both the Selene and Mt Henry open pits. The feed to the process plant is blended in accordance with the delivery schedule of ore from each open pit. Ore is blended to optimise mill performance and throughput.

• A conventional CIL process plant with 3Mtpa capacity at 94% availability.

• Metallurgical testwork on the three MHGP Resources resulted in a range of gold recoveries from 90-93%. An average gold recovery of 90% has been used in the MHFS.

• The Mining Inventory of 21.1Mt was derived using a combination of Whittle 4X analysis and open pit design. Approximately 96% of the mining inventory is sourced from material in the Indicated Resource category. The Mining Inventory includes a small portion of material currently classified in the Inferred Resource category. In the mining schedule, this material only represents ~4% of ore delivered to the processing plant. The mining schedule assumes that ongoing Resource and grade control drilling will increase the confidence on the Inferred material prior to mining. As required by Listing Rule 5.16, it is noted that there is a low level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of Indicated Mineral Resources or that the production target will be realised.

• While there is currently no infrastructure at the site, the Project is only 20km from Norseman and ~190km from Kalgoorlie. This region has significant resources of skilled labour, infrastructure and mining services.

• A paleo-channel borefield has been identified immediately west of the proposed process plant. It is of sufficient size and quality to satisfy the water requirements of the process plant over the estimated life of the Project. A potable water supply is available in the town of Norseman.

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Other Relevant Information

Location and Tenure

The MHGP is located 700km east of Perth and 20km south of Norseman in Western Australia ( Figure 2 ). The Project area straddles the sealed Goldfields to Esperance Highway, linking the Goldfields town of Kalgoorlie to the port town of Esperance on the south coast of Western Australia. The Project is located entirely on vacant crown land, within the Shire of Dundas. The MHGP Resources are located immediately to the west of the northern arm of Lake Dundas. Lake Dundas is a large salt lake typical of the WA Eastern Goldfields region.

Figure 2 – MHGP Location

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The entire MHGP, including exploration areas, covers an area of approximately 53 km². The MHGP open pits are on granted Mining Leases, M63/515 and M63/516. The land designated for the process plant and some other infrastructure is subject to the granting of a General Purpose Lease and Miscellaneous Licences. A tenement swap with a local mining company is in progress in order to increase the area for the placement of waste west of Mt Henry open pit. Once this transaction has been completed, the area will also be the subject of a General Purpose Lease Application.

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Figure 3 – MHGP Tenements

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The MHGP falls within an area in respect of which the Federal Court has made a formal Determination of native title held by the Ngadju People. A Mining Agreement between Matsa, the Ngadju People and Goldfields Land and Sea Council Aboriginal Corporation was signed in June 2010 and covers the MHGP Mining Leases.

Geology and Mineralisation

The MHGP is located at the southern end of the Wiluna-Norseman Greenstone belt of the WA Eastern Goldfields. Whilst the greenstone rocks from the Norseman region can be broadly correlated with those of the Kalgoorlie-Kambalda region, they form a distinct lithology which is bounded on all sides by major regional shears.

The Mt Henry lode is an elongated ore body that is 1.9km long, 6-10 metres wide and dips 65-75 degrees towards the west ( Figure 4 ). The host rock is predominantly a banded iron formation (“BIF”) with minor meta-basalts and dolerites. Sulphide minerals range from trace to 10%. The predominant sulphide is pyrrhotite with minor pyrite, arsenopyrite, chalcopyrite and marcasite.

The host rock of the Selene Resource is also a BIF which is intruded by numerous dolerite sills. The footwall contact is characterised by metamorphic sedimentary schist and the hanging wall by the overlying dolerites of the Woolyeener Formation. The Selene deposit extends for 1.3km along strike and extends 550 metres down-dip at a shallow angle of around 20 degrees. The lode thickens in the central part of the deposit up to a true thickness of 35 to 40 metres ( Figure 5 ).

The North Scotia Resource covers a strike length of 600 metres within Achaean mafic rocks of the Woolyeenyer Formation. The Woolyeenyer Formation is host to the auriferous quartz veins that have been mined in the Norseman district for 80 years. Gold mineralisation is hosted by laminated quartz veins that dip at around 70[0] towards the west. Sulphides present include pyrite and galena ( Figure 6) .

Figure 4 - Mt Henry Cross-Section @ 9350N

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Figure 5 – Selene Cross-Section @ 5000N

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Figure 6 – North Scotia Cross-Section @ 3200N

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Resources

The MHGP Mineral Resources have previously been reported in compliance with the 2012 JORC Code ( refer to ASX announcement of 30 September 2014 ). On a 100% project basis, the MHGP Mineral Resources total 43.2Mt @ 1.19g/t Au for 1.66Moz contained gold, at a 0.40g/t Au cut-off grade ( Table 3 ). Table 4 details the Mt Henry and Selene Resources reported at a cut-off grade of 0.6g/t and 1.0g/t respectively. The Mt Henry, Selene and North Scotia Resources remain open at depth.

Table 3 – MHGP Mineral Resource Summary on 100% Basis (0.40g/t Au cut-off grade)

	Indicated	Indicated	Inferred	Inferred		Total
Deposit	Tonnes („000)	Au (g/t)	Tonnes („000)	Au (g/t)	Tonnes („000)	Au (g/t)	Ounces („000)
Mt Henry	14,982	1.27	6,335	1.14	21,317	1.23	843
Selene	16,415	1.17	4,952	0.93	21,367	1.11	769
North Scotia	358	3.11	138	1.95	495	2.79	44
Total	31,755	1.24	11,425	1.06	43,180	1.19	1,656

Table 4 – MHGP Mineral Resource Summary on 100% Basis (0.60g/t Au and 1.0g/t Au cut-off grade)

Cut-off Grade (g/t Au)		Indicated	Indicated	Inferred	Inferred		**Total **
	Deposit	Tonnes („000)	Au (g/t)	Tonnes („000)	Au (g/t)	Tonnes („000)	Au (g/t)	Ounces („000)
0.6	Mt Henry	12,545	1.39	5,128	1.23	17,673	1.34	761
	Selene	12,282	1.36	3,190	1.10	15,473	1.31	652
	Total	24,827	1.38	8,318	1.18	33,146	1.33	1,413
1.0	Mt Henry	6,269	1.81	3,164	1.65	9,434	1.76	533
	Selene	8,592	1.61	2,358	1.31	10,950	1.55	546
	**Total **	**14,861 **	1.69	5,522	1.50	**20,384 **	1.65	1,079

Mining and Reserves

The mine designs and mining schedules in the MHFS are based on 2012 JORC compliant Indicated and Inferred Mineral Resources for the Mt Henry, Selene and North Scotia ore bodies ( refer Appendix 1 and Appendix 2 ). The Mt Henry and Selene modelling optimisations were based on Resources reported at a 0.6g/t Au cut-off grade. Mining is based on production from the three open pits, using contract mining. The pit designs will be staged to optimise the delivery of ore to the process plant run-of-mine ore pad.

A Probable Reserve of 922,900oz of contained gold is reported for the project in Table 5, on a 100% project basis. Further relevant disclosures are detailed in Appendix 1 and Appendix 3. It is noted that Panoramic‟s equity share of the Ore Reserves is 70%.

Table 5 – MHGP Probable Reserve Summary (100% Basis)

	Proven	Proven	Probable	Probable	Total	Total
							Metal
Reserve		Au	Tonnes	Au	Tonnes	Au
	Tonnes						(Au oz)
		(g/t)	(„000)	(g/t)	(„000)	(g/t)
Selene	-	-	11,545	1.37	11,545	1.37	508,500
Mt Henry	-	-	8,496	1.45	8,496	1.45	395,500
North Scotia	-	-	179	3.30	179	3.30	18,900
Total	-	-	20,220	1.42	20,220	1.42	922,900

The average life of mine stripping ratio across all the open pits is 4.2 to 1 (waste to ore ratio). Conceptual pit shells were optimised at a gold price of A$1,470/oz (Mt Henry and Selene) and A$1,400/oz (North Scotia) using the Whittle software. A breakdown of the open pit Mining Inventory is shown in Table 6. Figures 7, 8 and 9 illustrate the design and waste dump layouts for the three open pits.

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Waste Management

The footwall of both the Mt Henry and Selene deposits is non-mineralised BIF, which is classified as potentially acid forming (“PAF”). The North Scotia deposit has no PAF material. The mining schedules are designed to ensure that all PAF waste is progressively encapsulated as it is mined. Figure 7 shows the Mt Henry open pit and waste dumps and Figure 8 shows the Selene open pit, waste dumps and the process plant tailings dam as an integrated waste landform combining encapsulation of the PAF waste with thickened tailings surrounded by NAF waste rock. Figure 9 shows the North Scotia open pit.

Table 6 – MHGP Mining Inventory Summary (100% Basis)

Resource	Tonnes („000)	Mined Grade (g/t Au)	Contained Metal (Au oz)
Selene	11,997	1.37	528,000
Mt Henry	8,965	1.44	415,000
North Scotia	179	3.29	18,000
Total	21,141	1.41	961,000

Figure 7 - Mt Henry Open Pit

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Waste Rock Dump
Waste Rock Dump
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Figure 8 – Selene Open Pit

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ROM Pad Waste Rock Dump
Waste Rock Dump
Waste Rock Dump & Tailings Dam
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Figure 9 – North Scotia Open Pit

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Waste Rock Dump
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Mining commences in Month 10 in the Selene open pit and a stockpile is built to allow the plant to be commissioned in Month 17 at 25% of its designed production rate (3Mtpa) and ramping up to 100% by Month 20. Total ore and waste mined increases to a maximum of ~600K BCM per month as shown in Figures 10 and 11.

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Figure 10 – MHGP Ore Production and Grade

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Mt Henry Project Ore Production Profile
500,000 2.50
Scotia North Ore Tonnes Mt Henry Ore Tonnes
Selene Ore Tonnes Mine Grade g/t
400,000 2.00
300,000 1.50
200,000 1.00
100,000 0.50
- -
10 16 22 28 34 40 46 52 58 64 70 76 82 88 94 100
Month
Mine grade Au g/t
Monthly Ore Production (t)
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Figure 11 – MHGP BCM movement

Mt Henry Project Earthmoving Schedule by pit

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800,000
North Scotia Mt Henry
600,000
Selene
400,000
200,000
-
10 16 22 28 34 40 46 52 58 64 70 76 82 88 94 100
Month
Volume per Month (BCM)
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Processing

An extensive metallurgical testwork program based on a range of core samples obtained from the 2013 drilling program was undertaken for the MHFS. Previous work by GR Engineering Services Ltd (“GR”) and others had indicated that the BIF ore was very competent. MHGP test work indicated ore would have Bond Ball Mill Work Indices in the range of 13.7-19.4kWhr/t and unconfined compressive strength (“UCS”) measurements in the range of 112-412Mpa for both Mt Henry and Selene ore. Recovery is related to grind size with recovery improving as grind size is reduced.

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CPC Engineering and Project Design (“CPC”) estimated the capital and operating costs for a conventional 3Mtpa whole ore grind CIL flowsheet consisting of:

• Three stage crushing of coarse run of mine ore to P80 10mm.

• Grinding circuit consisting of two large ball mills in series (each with installed power of 6300kW) with target primary grind size of P80 38µm.

• Dual Knelson gravity gold concentrators to ensure the maximum amount of gravity gold is recovered prior to the leaching circuit.

• Leaching and adsorption tanks providing pre-oxidation and a leaching time of 48 hours to maximise recovery.

• Thickening via a high rate above ground thickener to ensure maximum process water recovery ahead of the tailings storage facility (“TSF”) and hence minimise additional reagents required for make-up raw water from the borefield

• Tailings disposal to TSF.

• Gold recovery to dore via Zadra style stripping circuit combined with atmospheric electrowinning.

• Reagent mixing.

Extractive testwork results confirmed that at a 38µm grind, recoveries would be in the range of 90-93%. An average recovery of 90% has been used in the MHFS.

Capital Costs

Pre-development capital is estimated at A$161M out of a total capital cost of A$187M. Sustaining and closure capital costs over the mine life are estimated at A$26M. Infrastructure includes roads, fuel farm, administration buildings, water storage, laboratory, workshop, borefield, accommodation village and mobile equipment. A summary of the MHFS capital cost estimates are shown in Table 7.

Table 7 – MHFS Capital Cost Summary (100% Basis)

	Pre-production Capital (A$M)		Total (A$M)
Item		Sustaining Closure (A$M)
Mining	16	1	17
Processing plant	105	-	105
Processinginfrastructure	20	-	20
Tailings facility	3	-	3
Mobile equipment	1	1	2
Accommodation Village	10	-	10
Owners Costs(duringconstruction)	6	-	6
Sustaining	-	6	6
Closure	-	18	18
Total	161	26	187

Panoramic believes that, due to the current market conditions within the WA resources sector, significant capital cost reductions may be possible, especially under competitive tender. No contingency has been applied to the capital costs, however the estimates are viewed as conservative.

Operating Costs

Open pit mining costs were based on estimates provided by a large established WA based mining contractor, after reviewing the proposed production schedules and rock property information (specific gravity, hardness and abrasion). Mining is based on conventional drill and blast on 5m and 10m benches with a combination of 200t and 100t excavators loading 100t capacity dump trucks. Ore is directly trucked to the ROM pad. Under a competitive bid situation, Panoramic would expect final mining rates to be lower.

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Process plant operating costs (reagents, grinding media, labour and power) were estimated by CPC. The Project is adjacent to the Kambalda to Esperance Gas Pipeline and discussions with the pipeline operator and investigation of the WA gas market indicate that sufficient gas will be available to generate power for the site. Processing costs are impacted by the work indices (hardness) of the ore and the quality of the bore field water for processing. A summary of the MHFS operating cost estimates is shown in Table 8.

Table 8 – MHFS Operating Cost Summary

	Total Cost (A$M)
Item		A$/t ore
Total Mining (Contractor, MHGM salaries and Grade Control)	343	16
Processing	510	24
General and Administrative	33	2
Total	886	42

The MHFS achieves a C1 operating cost of A$1,024/oz Au and an “all in sustaining cost” (“AISC”) of A$1,106/oz Au. Both measures are similar as all waste mined once processing commences is treated as an operating expense and minimal sustaining capital is required.

Panoramic believes that, due to the current market conditions within the WA resources sector, significant operating cost reductions may be possible. No contingency has been applied to the operating costs, however the estimates are conservative.

Environmental Studies and Permitting

A broad range of baseline studies has been undertaken to ensure that any potential impacts of the MHGP on the environment are minimised and can be effectively managed through good planning. Studies undertaken include (but are not limited to) flora and vegetation mapping, fauna (terrestrial, invertebrate and aquatic), waste characterisation of waste rock and tailings, groundwater studies (hydrogeology setting of the open pits, pit lake formation), design of a TSF and assessment of impacts of developing a groundwater supply. Additional studies included European and Aboriginal Heritage. Based on these studies, no material environmental issues have been identified.

A range of stakeholder consultation has been undertaken including the Department of Mines and Petroleum (DMP), Department of Environmental Regulation (DER), Department of Water (DoW) and the Shire of Dundas. The objective of site planning and scheduling is to ensure that all landforms are stable and non-polluting in the long term and that the risks of acid rock drainage are minimised.

A Mining Proposal is being prepared for submission to the DMP. Following a decision to mine, additional approvals will be required including, but not limited to, Works Approval from the DER, a license to take water and a licence to construct water bores.

Key Risks Cautionary Statements

A number of key risks have been identified that may impact (either positively or negatively) on the economics of the MHGP. These risks include, but are not limited to:

• US$ Gold price and A$:US$ FX rate.

• Capital and operating costs.

• Processing optimisation and recoveries.

• Project financing.

• Regulatory approvals.

Next Steps

Panoramic is pleased and that the MHFS Base Case demonstrates a robust Project. The Company has already received indicative terms sheets from two Australian banks for debt financing of the project. These indicative term sheets indicate that a significant portion of the Project‟s development cost could be debt funded.

While the Joint Venture could proceed to financing and development of Mt Henry, the Company is exploring alternatives to maximise value for shareholders which could involve an IPO or trade sale and is making preparations in this regard.

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MHGP Resource and Reserve Material Information Summary

In accordance with the ASX Listing Rules, a fair and balanced representation of the information provided in Appendix 1 must also be presented in the body of the ASX announcement. That representation follows. This information applies only to the MHGP where a material change has occurred with the release of the maiden MHGP Ore Reserve. For completeness, a summary of each of the supporting Resource and Reserve disclosures is included in Appendix 2 and Appendix 3.

Sampling and Assaying

The deposits have been extensively sampled using Reverse Circulation (RC) and Diamond drilling (DD) techniques, and the drill grid spacing over the extent of the mineralisation is approximately 25m x 25m for Mt Henry, 40m x 40m for Selene and 20m x 20m for North Scotia. RC holes were sampled by collecting 1m samples and splitting then down using either on-board rig or manual riffle splitters to produce an assay sample of ~3kg size. Diamond holes are typically NQ2 (NQ for some historical holes) & occasionally HQ size and were sampled by cutting the core in half or quarter for the HQ core over geologically logged intervals between 20cm and 1m in length. Samples assayed by Panoramic have utilised the Fire Assay technique.

Geology and Geological Interpretation

There is a strong geological control to the mineralisation and interpretation at Mt Henry and Selene. The deposits are essentially strata hosted within a sheared Banded Iron Formation (BIF). The shear is essentially contiguous along the upper contact of the BIF and an overlying mafic unit. There is some interpreted supergene mineralisation in the northern extents of the deposit that is controlled by weathering horizons and typically cross cuts stratigraphy at shallow levels. The geological and grade continuity is strata controlled, there are series of late pegmatites that cross cut mineralisation and lithology. These pegmatites are generally unmineralised and have been modelled into the resource with a background grade of 0.1g/t Au.

Database

Logging was completed in logging code protected MS Excel templates and loaded into Panoramic‟s SQL Server database for validation and storage. Geological and assay information was printed on hard copy plans and visually validated against original logs and assay results to ensure the digital copy agrees with the original format. Data validation was completed internally in SQL Server by setting allowable and expected values. For Resource estimation a subset of the SQL Server database , restricting the data to the Mt Henry Resource area was exported into an MS Access database.

Estimation methodology

Grade estimation was completed using Ordinary Kriging (OK) in Surpac[TM] software. Variogram analysis and modelling was completed using Supervisor software. Two metre composites were generated from the drill hole database and then tagged according to mineralised wireframes generated at a 0.4g/t Au lower grade. The wireframe modelling conditions included a minimum downhole mineralisation width of 2m; internal dilution of up to 3m could be included if the entire intercept graded above 0.4 g/t Au. If dilution was greater than 3m then separate lodes were generated if geological/grade continuity was supported by nearby holes. Variogram models generated confirmed geological stratigraphy as the key controlling factor on mineralisation.

Cut-off Grade

The mineralisation wireframes for Resources were modelled on a gold lower grade cut-off of 0.4g/t Au. This value was determined by visual assessment of grade continuity in Surpac[TM] . Models were also generated at 0.6 g/t and 1.0g/t Au cut-off grades for comparison. Cut-off grades applied to the Ore Reserves reflect the marginal breakeven cost of ore production based on the planned throughput rate and processing cost and recovery parameters determined by the Feasibility Study. A value of 0.7g/t was used for Mt Henry and Selene. A value of 0.4g/t was used for North Scotia.

Mining Assumptions

The deposits all outcrop and will be mined as open pits. Open pits have been optimised using Whittle 4X software and all inputs were based on detailed studies. Excavation is by conventional dump truck and hydraulic excavator. Bench heights will vary from 5 to 10m. Overall pit slopes vary from 45 -55 degrees. Most of the pit wall exposures are in fresh, competent rock. At Selene and Mt Henry, mining dilution of 5% at a diluent grade of 0.5g/t has been included. No mining loss has been assumed. At North Scotia, 10% dilution at zero grade has been applied with no ore loss. Inferred Mineral Resource was included in pit optimisation and is reported in the Mining Inventory (4.4% of total) but is excluded from the Ore Reserve estimate.

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Metallurgical Assumptions

A standard Carbon in Leach (“CIL”) flowsheet for gold extraction is proposed to treat the ores of the Project. The flowsheet is designed to treated 3Mtpa and will consist of three stage crushing followed by whole ore grind to a target size of p80=38 µm. The process is well tested and extensively used throughout the industry. Metallurgical testwork was completed on representative samples from the three deposits. Samples were from a range of locations across the deposits. Metallurgical testwork consisted of determining a range of standard comminution factors such as UCS, abrasion index, Bond Rod and Ball Mill Work Indexes. Recovery (gravity plus leaching) varies slightly across the three deposits ranging from 90-93%. An average recovery of 90% has been used as the majority of the ore to be treated is primary in nature.

Revenue factors

Head grade is determined by the mining sequence and reflects the spatial variation within and between the three deposits. Costs are based on current quotations, designs and proposals and have been assumed to be constant for the life of mine (LOM). A gold price of A$1,500/oz has been used to report Reserves and economic outcomes of the MHFS. The price has been derived by reviewing a range of bank and broker forecasts for the US$ gold price and A$:US$ exchange rate.

Classification

The MHGP Probable Ore Reserve is based entirely on the MHGP Indicated Mineral Resource lying within the pit designs with appropriate modifying factors applied.

Disclaimer and Cautionary Statement

All statements other than those of historical facts included in this announcement are “forward-looking statements”. Where the Company expresses or implies an expectation or belief as to the future events or results, such expectation or belief is expressed in good faith and believed to have reasonable basis. However, forward-looking statements are subject to risk, uncertainties and other factors, which could cause actual results to differ materially from future results express, projected or implied by such forward-looking statements. Such risks include, but are not limited to Resource risk, gold and other metals price volatility, currency fluctuations, increased production costs and variance to ore grade or recovery rates from those assumed mining plans, as well as political and operational risk and governmental regulation and judicial outcomes. Readers should not place undue reliance on forward looking information. The Company does not undertake to update forward looking information, except in accordance with applicable securities laws.

About the Company

Panoramic Resources Limited (ASX code: PAN) is a Western Australian mining company formed in 2001 for the purpose of developing the Savannah Nickel Project in the East Kimberley. Panoramic successfully commissioned the $65 million Savannah Project in late 2004 and then in 2005 purchased and restarted the Lanfranchi Nickel Project, near Kambalda. In FY2014, the Company produced a record 22,256t contained nickel and is forecasting to produce approximately 19,500t contained nickel in FY2015.

Following the successful development of the nickel projects, the Company diversified its resource base to include gold and platinum group metals (PGM). The Gold Division consists of the Gidgee Project located near Wiluna and the Mt Henry Project (70% interest), near Norseman. Both projects are currently under feasibility study. The PGM Division consists of the Panton Project, located 60km south of the Savannah Project and the Thunder Bay North Project in Northern Ontario, Canada.

Panoramic has been a consistent dividend payer and has paid out a total of $111 million in fully franked dividends since 2008. At 31 March 2015, Panoramic had $61 million in cash, no bank debt and employed approximately 400 people.

The Company‟s vision is to broaden its exploration and production base, with the aim of becoming a major, diversified mining company in the S&P/ASX 100 Index. The growth path will include developing existing resources, discovering new ore bodies, acquiring additional projects and is being led by an experienced exploration-to-production team with a proven track record.

For further information contact: Peter Harold, Managing Director +61 8 6266 8600

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– Appendix 1 MHGP Resource, Reserve Tables and Competent Persons Statement

It is noted that the following Resource and Reserve tables are reported on a 70% equity basis, which reflects Panoramic‟s underlying ownership.

					Measured	Measured	Indicated	Indicated	Inferred	Inferred	Total	Total
	Eit		Date of Resorce	JORC Comliance									Metal (A oz)
Resource	quy (%)	Metal				Au		Au		Au		Au
			u	p	Tonnes	(g/t)	Tonnes	(g/t)	Tonnes	(g/t)	Tonnes	(g/t)	u
Mt Henry Project	70	Gold
Selene Mt Henry North Scotia		Jul-13 Jul-13 Jul-13		2012 2012 2012	- - - - - -		11,491,000 1.17 10,487,000 1.27 250,000 3.11		3,466,000 0.93 4,435,000 1.14 97,000 1.95		14,957,000 14,922,000 347,000	1.11 535,900 1.23 590,800 2.79 31,100
Total(Equity)		Gold			-	-	37,461,000	1.67	10,683,000	1.37	48,144,000	1.60	2,483,100

The Mt Henry Gold Project (“MHGP”) Resources are reported on a 0.4g/t Au cut-off grade

The information in this report that relates to the MHGP Mineral Resources is based on information compiled by or reviewed by Andrew Bewsher (MAusIMM). Andrew Bewsher is a full time employee of BM Geological Services and has sufficient experience that 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 JORC Code. Mr Bewsher consents to the inclusion in the report of the matters based on this information in the form and context in which it appears

					Proven	Proven	Probable	Probable	Total	Total
	Eit		Date of R	JORC Cli							Metal A
Reserve	quy %	Metal				Au		Au		Au
	()		eserve	ompance	Tonnes	(g/t)	Tonnes	(g/t)	Tonnes	(g/t)	(u oz)
Mt Henry Project	70	Gold
Selene Mt Henry North Scotia		May 2015 May 2015 May 2015		2012 2012 2012	- - - - - -		8,081,500 1.37 5,947,200 1.45 125,300 3.30		8,081,500 5,947,200 125,300	1.37 355,950 1.45 276,850 3.30 13,230
Total(Equity)		Gold			-	-	14,154,000	1.42	14,154,000	1.42	646,030

A cut-off grade value of 0.7g/t Au was used for Mt Henry and Selene and 0.6g/t Au for North Scotia.

Information in this release relating to MHGP Ore Reserves has been completed by or reviewed by Christopher Williams (MAusIMM). Mr Williams is a full-time employee of Panoramic Resources Limited and is an indirect shareholder of Panoramic and Matsa Resources. Mr Williams also holds performance rights in relation to Panoramic Resources Limited. Mr Williams has sufficient experience that 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 JORC Code. Mr Williams consents to the inclusion in the release of the matters based on his information in the form and context in which it appears

– Appendix 2 2012 JORC Resource Disclosures

Mt Henry Resource

Mt Henry Resource – Table 1, Section 1 - Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.)

Criteria		JORC Code explanation		Commentary
Sampling		Nature and quality of sampling (eg cut channels, random		The deposit has been extensively sampled using
techniques		chips, or specific specialised industry standard		Reverse Circulation (RC) and Diamond drilling (DD)
		measurement tools appropriate to the minerals under		techniques. The Mt Henry (MH) resource database
		investigation, such as down hole gamma sondes, or		subset contains 688 RC & DD holes for a total of
		handheld XRF instruments, etc). These examples		55,428m. Of this total 44 RC & DD holes totalling
		should not be taken as limiting the broad meaning of		6,522m were drill in 2013 by Panoramic as part of a
		sampling.		Project feasibility study. In addition the database
		Include reference to measures taken to ensure sample		contains 221 RAB & Aircore holes (totalling 2,607m)
		representivity and the appropriate calibration of any		which have not been used for resource estimation.
		measurement tools or systems used.		Thegrid drill spacingis typically25m * 25m over the

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Criteria		JORC Code explanation		Commentary
		Aspects of the determination of mineralisation that are		extent of the mineralisation.
		Material to the Public Report.		RC holes were sampled by collecting 1m samples and
		In cases where „industry standard‟ work has been done		splitting then down using either on-board rig or manual
		this would be relatively simple (eg „reverse circulation		riffle splitters to produce an assay sample of ~3kg size.
		drilling was used to obtain 1 m samples from which 3 kg		Diamond holes are typically NQ2 (NQ for some historical
		was pulverised to produce a 30 g charge for fire assay‟).		holes) & occasionally HQ size and were sampled by
		In other cases more explanation may be required, such		cutting the core in half or quarter for the HQ core over
		as where there is coarse gold that has inherent sampling		geologically logged intervals between 20cm and 1m in
		problems. Unusual commodities or mineralisation types		length.
		(eg submarine nodules) may warrant disclosure of		All (2,793) recent Panoramic resource assay samples
		detailed information.		were submitted to SGS Laboratories in Perth for gold
				analysis by FA50 (Fire Assay) technique. Of the 36,028
				historical RC & DD gold assays in the database, 841
				(2.3%) have an unrecorded technique or are by a
				technique other than Fire Assay. In addition results for
				2,744 (7.1%) QAQC samples are recorded in the
				database.
Drilling		Drill type (eg core, reverse circulation, open-hole		The drilling methods used on this deposit are
techniques		hammer, rotary air blast, auger, Bangka, sonic, etc) and		predominantly RC and DD drilling. The RC drilling was
		details (eg core diameter, triple or standard tube, depth		typically completed using 5 ¼ inch hammers and recently
		of diamond tails, face-sampling bit or other type, whether		5 ¼ inch face sampling hammers.
		core is oriented and if so, by what method, etc).		The DD drilling was typically NQ (47.6mm), and more
				recently NQ2 (50mm) and HQ (63.5mm) diameter core
				HQ size core was typically drilled as geotechnical holes
				from surface byPanoramic.
Drill sample		Method of recording and assessing core and chip sample		RC sample recoveries were monitored by Panoramic by
recovery		recoveries and results assessed.		recording visual estimates of the sample bags prior to
		Measures taken to maximise sample recovery and		sampling. Typical recoveries for RC were greater than
		ensure representative nature of the samples.		90%.
				Core recovery is noted during drilling and geological
				logging processes as a percentage recovered vs.
				expected drill length. Core was reconstructed into
				continuous runs on a length of angle iron to enable
				accurate geological logging and estimation of core
				recovery. Core recovery is typically 100 percent.
		Whether a relationship exists between sample recovery		No apparent relationships were noted in relation to
		and grade and whether sample bias may have occurred		sample recovery and grade.
		due to preferential loss/gain of fine/coarse material.
Logging		Whether core and chip samples have been geologically		All drill holes in the MH resource database subset have
		and geotechnically logged to a level of detail to support		been geologically logged.
		appropriate Mineral Resource estimation, mining studies		Both chip and core samples in recent Panoramic drill
		and metallurgical studies.		holes have been logged using geological legends at
		Whether logging is qualitative or quantitative in nature.		detail to support geological confidence in Mineral
		Core (or costean, channel, etc) photography.		Resource estimates.
				Logging details lithology, weathering, oxidation, veining,
				mineralisation and structural features where noted in drill
				core.
		The total length and percentage of the relevant		All mineralised drill intersections and associated samples
		intersections logged.		have been logged in full.
Sub-sampling		If core, whether cut or sawn and whether quarter, half or		Both historical NQ and recent NQ2 core was typically
techniques and		all core taken.		sawn in half and half core sampled. Recent HQ
sample				geotechnical core was quarter core sampled where
preparation				mineralised. Core sample lengths typically varied
				between 0.2 and 1.0 metre.
		If non-core, whether riffled, tube sampled, rotary split, etc		The standard RC sample length is 1 metre with samples
		and whether sampled wet or dry.		collected directly from the rig cyclone system. The
				individual 1m RC samples are then reduced to a 3-5kg
				assay sample by either automated on-board rig splitters
				or manually by riffle splitting.
		For all sample types, the nature, quality and		The sample preparation process for all samples
		appropriateness of the sample preparation technique.		submitted for analysis follow accepted industry
				standards, including oven drying sample for a minimum
				of 8 hours, crushing and pulverising to 85% passing 75
				microns.

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Criteria		JORC Code explanation		Commentary
		Quality control procedures adopted for all sub-sampling		Quality control procedures have included the insertion of
		stages to maximise representivity of samples.		standards, blanks and duplicates to monitor the sampling
		Measures taken to ensure that the sampling is		and analytical process.
		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 sample sizes used are accepted industry standard
		the material being sampled.		sizes used extensively throughout the goldfields and are
				appropriate for the style of deposit.
Quality of assay		The nature, quality and appropriateness of the assaying		The standard analytical technique used is Fire Assay,
data and		and laboratory procedures used and whether the		mostly by AAS finished. Of the 38,821 RC & DD Au
laboratory tests		technique is considered partial or total.		assays in the MH resource database subset, 841
				historical assays (2.2%) do not have a recorded
				technique or are by technique other than Fire Assay.
				Where non gold analyses exist they are either by AAS or
				ICP OES determination.
		For geophysical tools, spectrometers, handheld XRF		No other geophysical or analytical tools have been used
		instruments, etc, the parameters used in determining the		to estimate grade.
		analysis including instrument make and model, reading
		times, calibrations factors applied and their derivation,
		etc.
		Nature of quality control procedures adopted (eg		QAQC has been completed routinely during all sampling
		standards, blanks, duplicates, external laboratory		throughout the life of the Project; though less so
		checks) and whether acceptable levels of accuracy (ie		historically than more recently. The QAQC results
		lack of bias) and precision have been established.		indicate that the RC and DD assays being used for
				resource estimation are a fair representation of the
				material that has been sampled.
Verification of		The verification of significant intersections by either		The deposit is very continuous in terms of mineralisation
sampling and		independent or alternative company personnel.		and grade intercepts. The continuity and consistency of
assaying				the grade intercepts in section and along strike provides
				strong confidence in the verification of the grade and
				style of deposit. The similarity and consistency of
				intersections reported by past Project owners over many
				years is further verification of the reliability of the data.
		The use of twinned holes.		No recent twin holes were completed. Historical twin
				holes verified mineralisation continuity. In-fill verification
				holes were completed by Panoramic to test both
				geological and mineralisation continuity on selected
				sections. In each instance the expected geological and
				mineralogical interpretation was confirmed and no major
				discrepancies were identified.
		Documentation of primary data, data entry procedures,		Logging was completed in logging code protected MS
		data verification, data storage (physical and electronic)		Excel templates on laptops and then imported into the
		protocols.		Project SQL database for validation. Sections were then
				generated and visual validation completed to ensure
				integrity of the data.
		Discuss anyadjustment to assaydata.		No adjustments were made to assaydata.
Location of data		Accuracy and quality of surveys used to locate drill holes		All recent drill collars and where possible historical drill
points		(collar and down-hole surveys), trenches, mine workings		collars have been accurately located by differential GPS.
		and other locations used in Mineral Resource estimation.		A range of down-hole survey instruments, including
				single shot, electronic multi-shot and gyroscopic tools
				have been used. Gyroscopic surveys undertaken by
				Panoramic and previous companies demonstrate that
				holes do not deviate significantly from design.
		Specification of the grid system used.		The MH drill hole database contains local, AMG and
				MGA coordinates. The resource has been estimated in
				local grid which is rotated +1.079 degrees from MGA
				GDA94 zone 51.
				Conversion from local grid to AMG AGD84 zone 51 is
				based on a two point transformation:
				5000E, 14000N = 385844.34E, 6421899.31N
				5000E, 6400N = 385701.32E, 6414302.52N
		Quality and adequacy of topographic control.		Fugro 2.5m topographic contour data was the primary
				topographical control. Inplaces this was modified by

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Criteria		JORC Code explanation		Commentary
				differential GPS height data.
Data spacing		Data spacing for reporting of Exploration Results.		The drilling density is on a nominal 25m by 25m spacing
and distribution		Whether the data spacing and distribution is sufficient to		through the majority of the deposit. This spacing is
		establish the degree of geological and grade continuity		sufficient to provide strong geological and mineralogical
		appropriate for the Mineral Resource and Ore Reserve		confidence in the style of deposit being estimated.
		estimation procedure(s) and classifications applied.
		Whether sample compositing has been applied.		As a general rule sample compositing has not be used.
				Sample compositing of RC precollars outside the main
				mineralised zone was undertaken at times.
Orientation of		Whether the orientation of sampling achieves unbiased		Virtually all drilling has been completed perpendicular to
data in relation		sampling of possible structures and the extent to which		the main strike of the deposit geometry and angled to
to geological		this is known, considering the deposit type.		best intercept the west dipping mineralisation.
structure		If the relationship between the drilling orientation and the		No sampling bias is apparent from the direction of
		orientation of key mineralised structures is considered to		drilling.
		have introduced a sampling bias, this should be
		assessed and reported if material.
Sample security		The measures taken to ensure sample security.		Little is known about the sample security practices
				adopted by previous companies. Panoramic samples
				were freighted in sealed bulka-bags direct from site to the
				SGS Laboratoryin Perth.
Audits or		The results of any audits or reviews of sampling		No audits or review of the Panoramic sampling
reviews		techniques and data.		procedures andprotocols has been completed.

Mt Henry Resource – Table 1, Section 3 - Estimation and Reporting of Mineral Resources (Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Database		Measures taken to ensure that data has not been		Logging was completed in logging code protected MS
integrity		corrupted by, for example, transcription or keying errors,		Excel templates and loaded into Panoramic‟s SQL
		between its initial collection and its use for Mineral		Server database, with a “Datashed” software frontend,
		Resource estimation purposes.		for validation and storage.
				Geological and assay information was printed on hard
				copy plans and visually validated against original logs
				and assay results to ensure the digital copy agrees with
				the original format.
		Data validation procedures used.		Data validation was completed internally in SQL Server
				by setting allowable and expected values. Automated
				queries are run as the data is imported to ensure it meets
				specified criteria.
				For resource estimation a subset of the SQL database,
				restricting the data to the Mt Henry Resource area was
				exported into an MS Access database. Additional data
				checks were run to ensure appropriate data robustness
				for the Resource Estimation.
Site visits		Comment on any site visits undertaken by the Competent		No site visits were completed by BMGS. Panoramic staff
		Person and the outcome of those visits.		managed the 2013 drilling program and were integral in
				the development of the geological and mineralisation
				models.
		If no site visits have been undertaken indicate why this is		Site visits were not required as the documented
		the case.		procedures on the recent drilling were deemed
				appropriate for the style of deposit and the historical
				drilling had been previously covered in a report released
				under JORC 2004guidelines.
Geological		Confidence in (or conversely, the uncertainty of ) the		There is high confidence in the geological understanding
interpretation		geological interpretation of the mineral deposit.		of the deposit. There is a strong relationship between
				grade and a particular stratigraphical unit. The gold
				mineralisation is of a consistent grade and 2m
				composites generated of the mineralised zone showed a
				very good coefficient of variation (<1.5 using a 0.4g/t
				grade shell envelope)
		Nature of the data used and of any assumptions made.		The data used for the resource estimate was from RC
				and diamond drilling. Raw assays, typically representing
				a 1m sample length, were composited to 2m to provide
				equal sample weights and reduce grade variance.
		The effect,if any,of alternative interpretations on Mineral		Three separate mineralised envelopes were considered;

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		Resource estimation.		grade shells at 0.4, 0.6 and 1.0g/t Au were developed
				and respective estimates run for each grade shell. It was
				established through validation of the models that the
				0.4g/t Au model was the most representative of grade
				expected in the mining environment. .
		The use of geology in guiding and controlling Mineral		There is a strong geological control to the mineralisation
		Resource estimation.		interpretation. The deposit is essentially strata hosted
				within a sheared Banded Iron Formation (BIF). The
				shear is essentially contiguous along the upper contact of
				the BIF and an overlying mafic unit. There is some
				interpreted supergene mineralisation in the northern
				extents of the deposit that is controlled by weathering
				horizons and typically cross cuts stratigraphy at shallow
				levels.
		The factors affecting continuity both of grade and		The geological and grade continuity is strata controlled,
		geology.		there are series of late pegmatites that cross cut
				mineralisation and lithology. These pegmatites are
				generally unmineralised and have been modelled into the
				resource as background 0.1g/tgoldgrade.
Dimensions		The extent and variability of the Mineral Resource		The Mt Henry mineralised domain is approximately 2km
		expressed as length (along strike or otherwise), plan		long and has a down dip extent of 280m and is open at
		width, and depth below surface to the upper and lower		depth. The deposit consists of a main lode that varies
		limits of the Mineral Resource.		between 3m and 40m thick with numerous parallel lodes
				at various stages alongthe length of the deposit.
Estimation and		The nature and appropriateness of the estimation		Grade estimation of Mt Henry deposit was completed
modelling		technique(s) applied and key assumptions, including		using Ordinary kriging (OK) in Surpac software.
techniques		treatment of extreme grade values, domaining,		Variogram analysis and modelling was completed using
		interpolation parameters and maximum distance of		Supervisor software. Two metre composites were
		extrapolation from data points. If a computer assisted		generated from the drill hole database and then tagged
		estimation method was chosen include a description of		according to mineralised wireframes generated at a
		computer software and parameters used.		0.4g/t lower gold grade. The wireframe modelling
				conditions included a minimum downhole mineralisation
				width of 2m; internal dilution of up to 3m could be
				included if the entire intercept graded above 0.4 g/t. If
				dilution was greater than 3m then separate lodes were
				generated if geological/grade continuity was supported
				by nearby holes. The coded composites were reviewed
				in Supervisor; top cut analysis was completed using
				disintegration analysis and the impacts the cuts made to
				the coefficient of variation. One outlying grade at 1810g/t
				was cut to 100g/t. The cut dataset was then normal
				scores transformed to generate variogram models.
				Variogram models generated confirmed geological
				stratigraphy as the key controlling factor on
				mineralisation. The variogram models had moderate to
				low nuggets with a range of maximum continuity along
				main axis of 73m.
		The availability of check estimates, previous estimates		A previous estimate of the Mt Henry deposit was
		and/or mine production records and whether the Mineral		completed in 2009. This was used as a guide and
		Resource estimate takes appropriate account of such		comparative tools for validation purposes with the current
		data.		estimate.
		The assumptions made regarding recovery of by-		No assumptions have been made about gold grade
		products.		recovery or the recovery of related by products.
		Estimation of deleterious elements or other non-grade		A review of deleterious elements or other non-grade
		variables of economic significance (eg sulphur for acid		variables was undertaken. It was decided that there was
		mine drainage characterisation).		insufficient data on other elements to reliably estimate
				their distribution. Regression analysis conducted
				between Au, and Fe, Cu, S and As found no correlation.
		In the case of block model interpolation, the block size in		The block model was constructed with a parent cell size
		relation to the average sample spacing and the search		of 20m Y, 10m X, and 10m Z with subcelling to 10m Y,
		employed.		2.5m X, and 2.5m Z. All estimations completed at the
				parent cell resolution. Data spacing is typically on 25m
				sections for the southern section of the deposit with the
				northern extents stepping down to 20m sections. Drill
				spacing across sections is typically 20m. The size of the
				initial search ellipse was based on the variographywith a

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				cascading four pass estimation used to populate cells.
				The first estimation pass used a minimum of 12 and
				maximum of 32 samples with no octants constraints of
				the ellipse preventing estimation. The search criteria
				were then changed for the remaining estimation passes.
		Any assumptions behind modelling of selective mining		The composites were generated at 2m downhole and the
		units.		ore wireframes were maintained at a minimum width of
				2m downhole in order to represent a likely minimum
				mining width, assuming open pit mining operations using
				120 tonne excavators.
		Any assumptions about correlation between variables.		No correlations between grade variables have been
				assumed.
		Description of how the geological interpretation was used		The geology of the deposit is similar in many respects to
		to control the resource estimates.		the nearby Selene Deposit. Mineralisation is confined to
				a series of shears within the silicate facies, Banded Iron
				Formation (Noganyer Formation). The footwall to the BIF
				is a metamorphic sedimentary schist unit and the
				hanging wall is defined by mafic flows and dykes of the
				Woolyeener Formation. The vast majority of the
				mineralisation is confined to a single shear running
				contiguously along the upper contact of the BIF
				Noganyer Formation and the overlying Woolyeener
				Formation. The mineralisation interpretation is consistent
				with the shape and continuity of this BIF unit contact
				zone.
		Discussion of basis for using or not using grade cutting or
		capping.
		The process of validation, the checking process used,		Validation of the resource estimate was completed by
		the comparison of model data to drill hole data, and use		onscreen visual validation of block grades vs. drill hole
		of reconciliation data if available.		assays in sectional view. Line graphs were also
				generated to show comparison between composite input
				grades and output block grades over 50m intervals on
				Northing spacings and 10m bench heights in elevation,
				through the entire deposit to ensure the composite data
				was being accurately reflected in the model. The model
				was also compared with historical estimate to ensure
				report figures were sensible.
Moisture		Whether the tonnages are estimated on a dry basis or		The tonnages are reported as dry tonnes. Sample
		with natural moisture, and the method of determination of		preparation process involved drying the samples for 8hrs
		the moisture content.		prior to analysis.
Cut-off		The basis of the adopted cut-off grade(s) or quality		The mineralisation wireframes were modelled on a gold
parameters		parameters applied.		lower grade cut-off of 0.4g/t Au. This value was
				determined by visual assessment of grade continuity in
				SurpacTM. Models were also generated at 0.6 g/t and
				1.0g/t Au cut-offgrades for comparison.
Mining factors or		Assumptions made regarding possible mining methods,		The Mt Henry deposit has been modelled under the
assumptions		minimum mining dimensions and internal (or, if		assumption that it will be mined by conventional open pit
		applicable, external) mining dilution. It is always		mining methods, using excavators and trucks. This
		necessary as part of the process of determining		would typically entail 5m bench heights with 2.5m flitches
		reasonable prospects for eventual economic extraction to		and use of 120 tonne excavators with a bucket of
		consider potential mining methods, but the assumptions		approximately 2m width. Mineralisation wireframes were
		made regarding mining methods and parameters when		constructed based on minimum thickness of 2m
		estimating Mineral Resources may not always be		downhole in order to replicate the smallest possible
		rigorous. Where this is the case, this should be reported		mining selectivity.
		with an explanation of the basis of the mining
		assumptions made.
Metallurgical		The basis for assumptions or predictions regarding		No metallurgical assumptions have been made in respect
factors or		metallurgical amenability. It is always necessary as part		to the generation of the estimate however recent
assumptions		of the process of determining reasonable prospects for		metallurgical test work had been performed as part of a
		eventual economic extraction to consider potential		feasibility study of the greater Mt Henry gold project
		metallurgical methods, but the assumptions regarding		being undertaken by Panoramic. This work has shown
		metallurgical treatment processes and parameters made		that recoveries greater than 90% Au can be achieved
		when reporting Mineral Resources may not always be		using conventional CIL extraction methods.
		rigorous. Where this is the case,this should be reported

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		with an explanation of the basis of the metallurgical
		assumptions made.
Environmental		Assumptions made regarding possible waste and		The current data available doesn‟t suggest there are any
factors or		process residue disposal options. It is always necessary		high-level environmental risks with mined waste by-
assumptions		as part of the process of determining reasonable		products. If mining were to commence all statutory
		prospects for eventual economic extraction to consider		requirements would be implemented to comply with
		the potential environmental impacts of the mining and		waste by-product management.
		processing operation. While at this stage the
		determination of potential environmental impacts,
		particularly for a greenfields project, may not always be
		well advanced, the status of early consideration of these
		potential environmental impacts should be reported.
		Where these aspects have not been considered this
		should be reported with an explanation of the
		environmental assumptions made.
Bulk density		Whether assumed or determined. If assumed, the basis		A total of 2,501 bulk density (BD) determinations are
		for the assumptions. If determined, the method used,		recorded in the Mt Henry resource database subset.
		whether wet or dry, the frequency of the measurements,		Panoramic completed most of these with measurements
		the nature, size and representativeness of the samples.		on 2,104 whole core samples by Archimedes water
				immersion method. There are a small number of
				historical measurements by pycnometer (7HENC115 &
				7HENC116 for 54 samples) and down hole geophysical
				tool (NHC127, NHD120 and NHD121 for 343 one metre
				intervals). This data was used to generate a default SG
				for all lithological types. The default was then assigned
				to unmeasured intervals, and the density was estimated.
		The bulk density for bulk material must have been		The host rock type for mineralisation and surrounding
		measured by methods that adequately account for void		mafic material is non-porous and void space porosity is
		spaces (vugs, porosity, etc), moisture and differences		not considered to be of relevance to the measurements.
		between rock and alteration zones within the deposit.		BD estimation for the resource was generated by
		Discuss assumptions for bulk density estimates used in		grouping the 2501 recorded measurements by rock type
		the evaluation process of the different materials.		to provide an average SG for each of the main
				lithological rock types. The assay table in the database
				was tagged with the actual BD or an average value
				based on rock type grouped average. The BD value was
				then extracted with the Au grade in the 2m composite
				file. The densities were estimated using the Variogram
				models and searchparameters for the various domains.
Classification		The basis for the classification of the Mineral Resources		The classification of the resource has been based on the
		into varying confidence categories.		Competent Person‟s strong confidence in the geological
		Whether appropriate account has been taken of all		model; weighted by the strong geological confidence with
		relevant factors (ie relative confidence in tonnage/grade		2525m spaced RC and diamond drilling and 20m20m
		estimations, reliability of input data, confidence in		spaced drilling through northern extents of deposit and
		continuity of geology and metal values, quality, quantity		the demonstrable consistency and continuity of the
		and distribution of the data).		mineralisation (gold mineralisation is highly continuous
				over a 2.0km strike length and is strata bound).
		Whether the result appropriately reflects the Competent		The mineral resource reflects the competent person‟s
		Person‟s view of the deposit.		view of the deposit.
Audits or		The results of any audits or reviews of Mineral Resource		Apart from BMGS‟s own internal audit process no audits
reviews		estimates.		or reviews of the Mineral Resource estimate have been
				completed.
Discussion of		Where appropriate a statement of the relative accuracy		The resource classification is based on standard
relative		and confidence level in the Mineral Resource estimate		practices and guidelines as prescribed in the 2012 JORC
accuracy/		using an approach or procedure deemed appropriate by		Code.
confidence		the Competent Person. For example, the application of
		statistical or geostatistical procedures to quantify the
		relative accuracy of the resource within stated confidence
		limits, or, if such an approach is not deemed appropriate,
		a qualitative discussion of the factors that could affect the
		relative accuracy and confidence of the estimate.
		The statement should specify whether it relates to global
		or local estimates, and, if local, state the relevant		The resource estimate relates to a global estimate of
		tonnages, which should be relevant to technical and		tonnes and grade.
		economic evaluation. Documentation should include
		assumptions made and theprocedures used.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		These statements of relative accuracy and confidence of		No reliable production data exists for the small open pit
		the estimate should be compared with production data,		operated within the confines of the Mt Henry resource by
		where available.		Australis Mining in the 1980s to compare with this
				resource estimate.

North Scotia Resource

North Scotia Resource – Table 1, Section 1 - Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.)

Criteria		JORC Code explanation		Commentary
Sampling		Nature and quality of sampling (eg cut channels, random		The deposit has been extensively sampled using
techniques		chips, or specific specialised industry standard		Reverse Circulation (RC) and Diamond drilling (DD)
		measurement tools appropriate to the minerals under		techniques. The North Scotia (NS) database resource
		investigation, such as down hole gamma sondes, or		subset contains 193 RC & DD holes for a total of
		handheld XRF instruments, etc). These examples		13,573m. Of this total 16 RC & DD holes totalling
		should not be taken as limiting the broad meaning of		933.5m were drill in 2013 by Panoramic as part of a Mt
		sampling.		Henry Project feasibility study. In addition the database
		Include reference to measures taken to ensure sample		contains 155 Aircore (totalling 2,915m) which have not
		representivity and the appropriate calibration of any		been used for resource estimation.
		measurement tools or systems used.		The drill spacing is typically 20m *20m grid spacing over
		Aspects of the determination of mineralisation that are		the extent of the mineralisation.
		Material to the Public Report.		RC holes were sampled by collecting 1m samples and
		In cases where „industry standard‟ work has been done		splitting these down using either on-board rig or manual
		this would be relatively simple (eg „reverse circulation		riffle splitters to produce an assay sample of~3kg.
		drilling was used to obtain 1 m samples from which 3 kg		Diamond holes were typically NQ2 & occasionally HQ in
		was pulverised to produce a 30 g charge for fire assay‟).		size and were sampled by cutting the core in half or
		In other cases more explanation may be required, such		quarter for the HQ core over geologically logged intervals
		as where there is coarse gold that has inherent sampling		between 20cm and 1m in length.
		problems. Unusual commodities or mineralisation types		All (579) recent Panoramic resource assay samples were
		(eg submarine nodules) may warrant disclosure of		submitted to SGS Laboratories in Perth for gold analysis
		detailed information.		by FA50 (Fire Assay) technique. Of the 11,753 historical
				RC & DD gold assays in the database, 1,430 (12.2%)
				have an unrecorded technique or are by a technique
				other than Fire Assay. In addition results for 1,353
				(11.0%) QAQC samples are recorded in the database.
Drilling		Drill type (eg core, reverse circulation, open-hole		The drilling methods used on this deposit are
techniques		hammer, rotary air blast, auger, Bangka, sonic, etc) and		predominantly RC and DD drilling. The RC drilling was
		details (eg core diameter, triple or standard tube, depth		typically completed using a 5 ¼ inch hammer and
		of diamond tails, face-sampling bit or other type, whether		recently 5 ¼ inch face sampling hammers.
		core is oriented and if so, by what method, etc).		The DD drilling was typically NQ (47.6mm), and more
				recently NQ2 (50mm) and HQ (63.5mm) diameter core
				HQ size core was typically drilled as geotechnical holes
				from surface byPanoramic.
Drill sample		Method of recording and assessing core and chip sample		RC sample recoveries were monitored by Panoramic by
recovery		recoveries and results assessed.		recording visual estimates of the sample bags prior to
		Measures taken to maximise sample recovery and		sampling. Typical recoveries for RC were greater than
		ensure representative nature of the samples.		90%.
				Core recovery is noted during drilling and geological
				logging processes as a percentage recovered vs.
				expected drill length. Core was reconstructed into
				continuous runs on a length of angle iron to enable
				accurate geological logging and estimation of core
				recovery. Core recovery is typically 100 percent.
		Whether a relationship exists between sample recovery		No apparent relationships were noted in relation to
		and grade and whether sample bias may have occurred		sample recovery and grade.
		due topreferential loss/gain of fine/coarse material.
Logging		Whether core and chip samples have been geologically		All drill holes in the NS resource database have been
		and geotechnically logged to a level of detail to support		geologically logged.
		appropriate Mineral Resource estimation, mining studies		Both chip and core samples in recent Panoramic drill
		and metallurgical studies.		holes have been logged using geological legends at
		Whether logging is qualitative or quantitative in nature.		detail to support geological confidence in Mineral
		Core (or costean, channel, etc) photography.		Resource estimates.
				Loggingdetails lithology,weathering,oxidation,veining,

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Criteria		JORC Code explanation		Commentary
				mineralisation and structural features where noted in drill
				core.
		The total length and percentage of the relevant		All mineralised drill intersections and associated samples
		intersections logged.		have been logged in full.
Sub-sampling		If core, whether cut or sawn and whether quarter, half or		Both historical NQ and recent NQ2 core was typically
techniques and		all core taken.		sawn and half core sampled. Recent HQ geotechnical
sample				core was quarter core sampled where mineralized. Core
preparation				sample lengths typically varied between 0.2 and 1.0
				metre.
		If non-core, whether riffled, tube sampled, rotary split, etc		The standard RC sample length is 1 metre with samples
		and whether sampled wet or dry.		collected directly from the rig cyclone system. The
				individual 1m RC samples are then reduced to a 3-5kg
				assay sample by either automated on-board rig splitters
				or manually by riffle splitting.
		For all sample types, the nature, quality and		The sample preparation process for all samples
		appropriateness of the sample preparation technique.		submitted for analysis follow accepted industry
				standards, including oven drying sample for a minimum
				of 8 hours, crushing and pulverising to 85% passing 75
				microns.
		Quality control procedures adopted for all sub-sampling		Quality control procedures have included the insertion of
		stages to maximise representivity of samples.		standards, blanks and duplicates to monitor the sampling
		Measures taken to ensure that the sampling is		and analytical process.
		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 sample sizes used are industry standard sizes used
		the material being sampled.		extensively throughout the goldfields and are appropriate
				for the style of deposit.
Quality of assay		The nature, quality and appropriateness of the assaying		The standard analytical technique used is Fire Assay,
data and		and laboratory procedures used and whether the		mostly by AAS finish. Of the 12,332 RC & DD Au assays
laboratory tests		technique is considered partial or total.		in the NS resource database 1,430 historical assays
				(11.6%) do not have a recorded technique or are by
				technique other than Fire Assay. Where non gold
				analyses exist they are either by AAS or ICP OES
				determination.
		For geophysical tools, spectrometers, handheld XRF		No other geophysical or analytical tools have been used
		instruments, etc, the parameters used in determining the		to estimate grade.
		analysis including instrument make and model, reading
		times, calibrations factors applied and their derivation,
		etc.
		Nature of quality control procedures adopted (eg		QAQC has been completed routinely during all sampling
		standards, blanks, duplicates, external laboratory		throughout the life of the Project; though less so
		checks) and whether acceptable levels of accuracy (ie		historically than more recently. The QAQC results
		lack of bias) and precision have been established.		indicate that the RC and DD assays being used for
				resource estimation are a fair representation of the
				material that has been sampled.
Verification of		The verification of significant intersections by either		The North Scotia deposit is a classic “Norseman style
sampling and		independent or alternative company personnel.		quartz vein” type. Gold mineralisation is nuggetty within
assaying				the veins with coarse visible gold not uncommon.
		The use of twinned holes.		No recent twin holes were completed. In-fill verification
				holes were completed by Panoramic to test both
				geological and mineralisation continuity on selected
				sections. In most instances the expected geological and
				mineralogical interpretation was confirmed and no major
				discrepancies were identified.
		Documentation of primary data, data entry procedures,		Logging was completed in logging code protected MS
		data verification, data storage (physical and electronic)		Excel templates on laptops and then imported into the
		protocols.		Project SQL database for validation. Sections were then
				generated and visual validation completed to ensure
				integrity of the data.
		Discuss anyadjustment to assaydata.		No adjustments were made to assaydata.
Location of data		Accuracy and quality of surveys used to locate drill holes		All recent drill collars and where possible historical drill
points		(collar and down-hole surveys), trenches, mine workings		collars have been accurately located by differential GPS.
		and other locations used in Mineral Resource estimation.		A range of down-hole survey instruments, including
				single shot,electronic multi-shot andgyroscopic tools

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Criteria		JORC Code explanation		Commentary
				have been used. Gyroscopic surveys undertaken by
				Panoramic and previous companies demonstrate that
				holes do not deviate significantly from design.
		Specification of the grid system used.		The NS drill hole database subset contains local, AMG
				and MGA coordinates. The resource has been estimated
				in local grid which is rotated +1.079 degrees from
				MGA_GDA94 zone 51.
				Conversion from local grid to AMG AGD84 zone 51 is
				based on a two point transformation:
				5000E, 14000N = 385844.34E, 6421899.31N
				5000E, 6400N = 385701.32E, 6414302.52N
		Quality and adequacy of topographic control.		Fugro 2.5m topographic contour data was the primary
				topographical control. In places this was modified by
				differential GPS height data.
Data spacing		Data spacing for reporting of Exploration Results.		The drilling density is on a nominal 20m by 20m spacing
and distribution		Whether the data spacing and distribution is sufficient to		through the majority of the deposit. This spacing is
		establish the degree of geological and grade continuity		sufficient to provide strong geological and mineralogical
		appropriate for the Mineral Resource and Ore Reserve		confidence in the style of deposit being estimated.
		estimation procedure(s) and classifications applied.
		Whether sample compositing has been applied.		As a general rule sample compositing has not be used.
				Sample compositing of RC precollars outside the main
				mineralized zone was undertaken at times.
Orientation of		Whether the orientation of sampling achieves unbiased		Virtually all drilling has been completed perpendicular to
data in relation		sampling of possible structures and the extent to which		the main strike of the deposit geometry and angled to
to geological		this is known, considering the deposit type.		best intercept the west dipping mineralized vein system.
structure		If the relationship between the drilling orientation and the		No sampling bias is apparent from the direction of
		orientation of key mineralised structures is considered to		drilling.
		have introduced a sampling bias, this should be
		assessed and reported if material.
Sample security		The measures taken to ensure sample security.		Little is known about the sample security practices
				adopted by previous companies. Panoramic samples
				were freighted in sealed bulka-bags direct from site to the
				SGS Laboratoryin Perth.
Audits or		The results of any audits or reviews of sampling		No audits or review of the Panoramic sampling
reviews		techniques and data.		procedures andprotocols has been completed.
North Scotia Resource – Table 1, Section 3 - Estimation and Reporting of Mineral Resources
(Criteria listed in	section 1, and where relevant in section 2, also apply to this section.)

Criteria		JORC Code explanation		Commentary
Database		Measures taken to ensure that data has not been		Logging was completed in logging code protected MS
integrity		corrupted by, for example, transcription or keying errors,		Excel templates and loaded into Panoramic‟s SQL
		between its initial collection and its use for Mineral		Server database, with a “Datashed” software frontend,
		Resource estimation purposes.		for validation and storage.
				All geological and assay information was printed on hard
				copy plans and visually validated against original logs
				and assay results to ensure the digital copy agrees with
				the original format.
		Data validation procedures used.		Data validation was completed internally in SQL Server
				by setting allowable and expected values. Automated
				queries are run as the data is imported to ensure it meets
				specified criteria.
				For resource estimation a subset of the SQL database,
				restricting the data to the North Scotia Resource area
				was exported into MS Access database. Additional data
				checks were run to ensure appropriate data robustness
				for the Resource Estimation.
Site visits		Comment on any site visits undertaken by the Competent		No site visits were completed by BMGS. Panoramic staff
		Person and the outcome of those visits.		managed the 2013 drilling program. The new
				interpretation was constructed by using the original Cube
				2009 wireframes and adjusting the shapes based on the
				new drill results.
		If no site visits have been undertaken indicate why this is		Site visits were not required as the documented
		the case.		procedures on the recent drilling were deemed
				appropriate for the style of deposit and the historical

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Criteria		JORC Code explanation		Commentary
				drilling had been previously covered in a report released
				under JORC 2004guidelines.
Geological		Confidence in (or conversely, the uncertainty of) the		There is moderate confidence in the deposit. The
interpretation		geological interpretation of the mineral deposit.		deposit is a structurally controlled auriferous quartz vein
				system. The deposit has a high grade nuggetty nature;
				the nuggetty gold mineralisation is disseminated
				throughout one to five metre wide laminated quartz veins
				that dip around 70° towards the west. Minor pyrite and
				galena is also present in the veins.
		Nature of the data used and of any assumptions made.		The data used for the resource estimate was from RC
				and diamond drilling. Raw assays were composited to
				2m to provide equal sample weights and reduce grade
				variance.
		The effect, if any, of alternative interpretations on Mineral		No alternative interpretations were considered.
		Resource estimation.
		The use of geology in guiding and controlling Mineral		The geological logging was used to generate the
		Resource estimation.		interpretation. Vein/mineralisation wireframes were
				allowed to pass through sub-mineralised drill hole zones
				where the Quartz veining was logged but returned little to
				barren grades. It is believed this method is acceptable,
				as long as the block data is reflective of the raw data on
				a localised scale.
		The factors affecting continuity both of grade and		The mineralisation is vein hosted, typically around 2 to
		geology.		5metre wide zones, continuity along strike appears to be
				reasonable and there appears to be some slight dilational
				jogs, which is observed within the geology of the
				historical Scotia pit (commentary provided by Panoramic
				Geologist).
Dimensions		The extent and variability of the Mineral Resource		The North Scotia mineralized domain is approximately
		expressed as length (along strike or otherwise), plan		450m long and has a down dip of extent of 110m and is
		width, and depth below surface to the upper and lower		open at depth. The deposit consists of multiple NNE
		limits of the Mineral Resource.		trending quartz lodes that vary between 1m and 5m in
				true thickness with numerous thinner parallel lodes at
				various stages alongthe length of the deposit.
Estimation and		The nature and appropriateness of the estimation		Grade estimation of North Scotia deposit was completed
modelling		technique(s) applied and key assumptions, including		using Ordinary Kriging (OK) in SurpacTMsoftware.
techniques		treatment of extreme grade values, domaining,		Variogram analysis and modelling was completed using
		interpolation parameters and maximum distance of		supervisor software. Two meter composites were
		extrapolation from data points. If a computer assisted		generated from the drill hole database and then tagged
		estimation method was chosen include a description of		according to mineralized wireframes generated at a
		computer software and parameters used.		0.8g/t gold grade. The wireframe modelling conditions
				included, a minimum downhole width of 2 meters of
				mineralisation, internal dilution of up to 2m downhole
				could be included if the entire intercept graded above 0.8
				g/t. If dilution was greater than 2m then separate lodes
				were generated.
				The coded composites were reviewed in Supervisor; top-
				cut analysis was completed using disintegration analysis
				and the use of coefficient of variation statistics. Top-cuts
				were applied on a domain basis with a maximum top-cut
				of 30g/t on FW1 lode and 7g/t & 4g/t on the HW1 and
				HW2 lodes respectively (remaining lodes were left un-
				cut). The cut dataset was then transformed by normal
				scores to review variograms and generate variogram
				models. The variogram models had high to low nuggets
				and varied for each domain, with a range of maximum
				continuity along the main axis varying for each domain
				between 20 to 40m.
		The availability of check estimates, previous estimates		A previous estimate of the North Scotia deposit was
		and/or mine production records and whether the Mineral		completed in 2009. This was used as a guide and
		Resource estimate takes appropriate account of such		comparative tools for validation purposes with the current
		data.		estimate.
		The assumptions made regarding recovery of by-		No assumptions have been made about gold grade
		products.		recovery or the recovery of related by products.
		Estimation of deleterious elements or other non-grade		Only gold was estimated;no other elements were

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Criteria		JORC Code explanation		Commentary
		variables of economic significance (eg sulphur for acid		estimated. Insufficient multi-element data was available
		mine drainage characterisation).		and was deemed to be of no relevance and to have a
				spatial distribution too sparse for adequate estimation.
		In the case of block model interpolation, the block size in		The block model was constructed with a parent cell size
		relation to the average sample spacing and the search		of 10m Y, 5m X, and 10m Z with subcelling to 2.5m Y,
		employed.		1.25m X, and 1.25m Z. All estimations were completed
				at the parent cell resolution. Data spacing is typically on
				20 x 20m spacings for the majority of the deposit. The
				size of the search ellipse was based on the variography
				with two estimation passes used to populate all cells.
				The first estimation pass used a minimum of 3, and
				maximum of 15 samples, with an ellipsoid based
				approach. Two separate estimation methods were
				employed, an Ordinary Kriged and Inverse Distance ^2
				(ID2) was also performed on the top-cut dataset.
		Any assumptions behind modelling of selective mining		The composites were generated at 2m downhole and the
		units.		ore wireframes were maintained at a minimum width of
				2m downhole to try and represent a minimum selectable
				size assuming open pit mining operations using 120
				tonne excavators.
		Any assumptions about correlation between variables.		No correlations between grade variables have been
				assumed.
		Description of how the geological interpretation was used		The geology of the deposit consists of Archaean mafics
		to control the resource estimates.		of the Woolyeenyer formation (predominately Mafic
				Basalt/Dolerite), with late stage cross-cutting pegmatite
				dykes and a very shallow weathering profile of
				Quaternary saprolite clays. There is no evidence of
				supergene mineralisation at North Scotia. All
				mineralisation is associated with the primary quartz vein
				system.
		Discussion of basis for using or not using grade cutting or		Top-cut analysis was completed using disintegration
		capping.		analysis and use of coefficient of variation statistics.
				Fourteen outlying grades were cut which differed on a
				domain basis (FW1- number of samples top-cut 3, top-
				cut applied 30g/t; HW1- number of samples top-cut and
				top-cut applied was 7; HW2- number of samples top-cut
				and top-cut applied was 4). Only cut estimates were
				provided.
		The process of validation, the checking process used,		Validation of the resource estimate was completed by
		the comparison of model data to drill hole data, and use		visual validation of block grades vs. drill hole assays in
		of reconciliation data if available.		sectional view on computer. Given the thin nature of the
				deposit a volume check was performed to ensure the
				block volume was reflective of the 3dm volume. With a
				volume variance less that 1%, the coding in the model
				was deemed acceptable. Validation comparisons were
				made by comparing the mean composite grades to the
				block estimate grades on a domain basis. This was to
				ensure the estimate was reflective of the data used to
				generate it.
Moisture		Whether the tonnages are estimated on a dry basis or		The tonnages are reported as dry tonnes. Sample
		with natural moisture, and the method of determination of		preparation process involved drying the samples for 8hrs
		the moisture content.		prior to analysis.
Cut-off		The basis of the adopted cut-off grade(s) or quality		The mineralisation wireframes were modelled on a gold
parameters		parameters applied.		grade cut-off of 0.8g/t. The cut-off selection was left
				unchanged from that used in the 2009 resource.
Mining factors or		Assumptions made regarding possible mining methods,		The North Scotia deposit has been modelled under the
assumptions		minimum mining dimensions and internal (or, if		assumption that it will be mined by conventional open pit
		applicable, external) mining dilution. It is always		mining methods, using excavators and trucks. This
		necessary as part of the process of determining		would typically entail 5m bench heights with 2.5m flitches
		reasonable prospects for eventual economic extraction to		and use of 120 tonne excavators with a bucket width of
		consider potential mining methods, but the assumptions		approximately 2m. Mineralisation wireframes were
		made regarding mining methods and parameters when		constructed based on minimum downhole intercept
		estimating Mineral Resources may not always be		thickness of 2m in order to replicate the smallest possible
		rigorous. Where this is the case, this should be reported		mining selectivity.
		with an explanation of the basis of the mining

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Criteria		JORC Code explanation		Commentary
		assumptions made.
Metallurgical		The basis for assumptions or predictions regarding		No metallurgical assumptions have been made in respect
factors or		metallurgical amenability. It is always necessary as part		to the generation of the estimate.
assumptions		of the process of determining reasonable prospects for		The understanding is that the anticipated recovery from
		eventual economic extraction to consider potential		metallurgical test work completed by Panoramic as part
		metallurgical methods, but the assumptions regarding		of a broader Mt Henry Gold Project feasibility study is in
		metallurgical treatment processes and parameters made		the order of 95% recovery using a conventional CIL
		when reporting Mineral Resources may not always be		process.
		rigorous. Where this is the case, this should be reported
		with an explanation of the basis of the metallurgical
		assumptions made.
Environmental		Assumptions made regarding possible waste and		If mining were to commence appropriate measures would
factors or		process residue disposal options. It is always necessary		be implemented to ensure correct containment of waste
assumptions		as part of the process of determining reasonable		by-products.
		prospects for eventual economic extraction to consider
		the potential environmental impacts of the mining and
		processing operation. While at this stage the
		determination of potential environmental impacts,
		particularly for a greenfields project, may not always be
		well advanced, the status of early consideration of these
		potential environmental impacts should be reported.
		Where these aspects have not been considered this
		should be reported with an explanation of the
		environmental assumptions made.
Bulk density		Whether assumed or determined. If assumed, the basis		Bulk density (BD) determinations have been completed
		for the assumptions. If determined, the method used,		on 279 core samples by Archimedes water immersion
		whether wet or dry, the frequency of the measurements,		method to determine BD of insitu material. The
		the nature, size and representativeness of the samples.		measurements were performed on whole core samples
				by Panoramic from recently drilled diamond holes (SCO*
				series holes). A small number of historical pycnometer
				measurements (7SSC* series for 58 samples) also exist.
		The bulk density for bulk material must have been		Both the waste and host rock type for mineralisation is
		measured by methods that adequately account for void		typically non-porous and void space porosity is not
		spaces (vugs, porosity, etc), moisture and differences		considered to be of relevance to the measurements.
		between rock and alteration zones within the deposit.
		Discuss assumptions for bulk density estimates used in		Default densities were assigned to the model based on
		the evaluation process of the different materials.		the specific gravities used in the previous models. The
				default values were verified by the recent BD work. The
				densities applied were Alluvium 1.8 g/cm³, Qtz Reef 2.65
				g/cm³, Pegmatite 2.7g/cm³, Oxide Mafic 1.8 g/cm³,
				Transitional Mafic 2.1g/cm³ and Fresh Mafic 3g/cm³.
Classification		The basis for the classification of the Mineral Resources		The classification of the resource has been based on
		into varying confidence categories.		strong geological confidence with 20*20m spaced RC
		Whether appropriate account has been taken of all		and diamond drilling. The gold mineralisation is
		relevant factors (ie relative confidence in tonnage/grade		moderately continuous over a 450m strike length and is
		estimations, reliability of input data, confidence in		laminated vein hosted. The classification was applied to
		continuity of geology and metal values, quality, quantity		the model using the estimation pass and a string
		and distribution of the data).		constraint applied to limit the potential overcall in
		Whether the result appropriately reflects the Competent		classification down dip.
		Person‟s view of the deposit.		The mineral resource reflects the competent person‟s
				view of the deposit.
Audits or		The results of any audits or reviews of Mineral Resource		Apart from BMGS‟s own internal audit process no audits
reviews		estimates.		or reviews of the Mineral Resource estimate have been
				completed.
Discussion of		Where appropriate a statement of the relative accuracy		The resource classification is based on standard
relative		and confidence level in the Mineral Resource estimate		practices and guidelines as prescribed in the 2012 JORC
accuracy/		using an approach or procedure deemed appropriate by		Code.
confidence		the Competent Person. For example, the application of
		statistical or geostatistical procedures to quantify the
		relative accuracy of the resource within stated confidence
		limits, or, if such an approach is not deemed appropriate,
		a qualitative discussion of the factors that could affect the
		relative accuracy and confidence of the estimate.
		The statement should specify whether it relates to global
		or local estimates,and,if local,state the relevant		The resource estimate relates to aglobal estimate of

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Criteria		JORC Code explanation		Commentary
		tonnages, which should be relevant to technical and		tonnes and grade.
		economic evaluation. Documentation should include
		assumptions made and the procedures used.
		These statements of relative accuracy and confidence of
		the estimate should be compared with production data,		No mining data is available for comparison.
		where available.

Selene Resource

Selene Resource – Table 1, Section 1 - Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.)

Criteria		JORC Code explanation		Commentary
Sampling		Nature and quality of sampling (eg cut channels, random		The deposit has been extensively sampled using
techniques		chips, or specific specialised industry standard		Reverse Circulation (RC) and Diamond drilling (DD)
		measurement tools appropriate to the minerals under		techniques. The Selene (Mt Henry Project) resource
		investigation, such as down hole gamma sondes, or		database subset contains 284 RC & DD holes for a total
		handheld XRF instruments, etc). These examples		of 25,830m. Of this total 14 RC & DD holes totalling
		should not be taken as limiting the broad meaning of		2,005m were drill in 2013 by Panoramic as part of a
		sampling.		Project feasibility study. In addition the database
		Include reference to measures taken to ensure sample		contains 10 RAB & Aircore holes (totalling 133m) which
		representivity and the appropriate calibration of any		have not been used for resource estimation.
		measurement tools or systems used.		The drill grid spacing is typically 40m * 40m over the
		Aspects of the determination of mineralisation that are		extent of the mineralisation.
		Material to the Public Report.		RC holes were sampled by collecting 1m samples and
		In cases where „industry standard‟ work has been done		splitting these down using either on-board rig or manual
		this would be relatively simple (eg „reverse circulation		riffle splitters to produce an assay sample of ~3kg size.
		drilling was used to obtain 1 m samples from which 3 kg		Diamond holes were typically NQ2 (NQ for some
		was pulverised to produce a 30 g charge for fire assay‟).		historical holes) & occasionally HQ size and were
		In other cases more explanation may be required, such		sampled by cutting the core in half or quarter for the HQ
		as where there is coarse gold that has inherent sampling		core over geologically logged intervals between 20cm
		problems. Unusual commodities or mineralisation types		and 1m in length.
		(eg submarine nodules) may warrant disclosure of		All (847) recent Panoramic resource assay samples were
		detailed information.		submitted to SGS Laboratories in Perth for gold analysis
				by FA50 (Fire Assay) technique. Of the 15,528 historical
				RC & DD gold assays in the database, 457 (2.9%) have
				an un-recorded technique or are by a technique other
				than Fire Assay. In addition data on 1,059 (6.5%) QAQC
				samples are recorded in the database.
Drilling		Drill type (eg core, reverse circulation, open-hole		The drilling methods used on this deposit are
techniques		hammer, rotary air blast, auger, Bangka, sonic, etc) and		predominantly RC and DD drilling. The RC drilling was
		details (eg core diameter, triple or standard tube, depth		typically completed using 5 ¼ inch hammers and recently
		of diamond tails, face-sampling bit or other type, whether		5 ¼ inch face sampling hammers.
		core is oriented and if so, by what method, etc).		The DD drilling was typically NQ (47.6mm), and more
				recently NQ2 (50mm) and HQ (63.5mm) diameter core
				HQ size core was typically drilled as geotechnical holes
				from surface byPanoramic.
Drill sample		Method of recording and assessing core and chip sample		RC sample recoveries were monitored by Panoramic by
recovery		recoveries and results assessed.		recording visual estimates of the sample bags prior to
		Measures taken to maximise sample recovery and		sampling. Typical recoveries for RC were greater than
		ensure representative nature of the samples.		90%.
				Core recovery is noted during drilling process and
				geological logging process as a percentage recovered
				vs. expected drill length. Core was reconstructed into
				continuous runs on a length of angle iron to enable
				accurate geological logging and estimation of core
				recovery. Core recovery is typically 100 percent.
		Whether a relationship exists between sample recovery		No apparent relationships were noted in relation to
		and grade and whether sample bias may have occurred		sample recovery and grade.
		due topreferential loss/gain of fine/coarse material.
Logging		Whether core and chip samples have been geologically		All drill holes in the Selene resource database have been
		and geotechnically logged to a level of detail to support		geologically logged.
		appropriate Mineral Resource estimation, mining studies		Both chip and core samples in recent Panoramic drill
		and metallurgical studies.		holes have been logged using geological legends at
		Whether loggingisqualitative orquantitative in nature.		detail to supportgeological confidence in Mineral

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Criteria		JORC Code explanation		Commentary
		Core (or costean, channel, etc) photography.		Resource estimates.
				Logging details lithology, weathering, oxidation, veining,
				mineralisation and structural features where noted in drill
				core.
		The total length and percentage of the relevant		All mineralised drill intersections and associated samples
		intersections logged.		have been logged in full.
Sub-sampling		If core, whether cut or sawn and whether quarter, half or		Both historical NQ and recent NQ2 core was typically
techniques and		all core taken.		sawn in half and half core sampled. Recent HQ
sample				geotechnical core was quarter core sampled where
preparation				mineralised. Core sample lengths typically varied
				between 0.2 and 1.0 metre.
		If non-core, whether riffled, tube sampled, rotary split, etc		The standard RC sample length is 1 metre with samples
		and whether sampled wet or dry.		collected directly from the rig cyclone system. The
				individual 1m RC samples are then reduced to a 3-5kg
				assay sample by either automated on-board rig splitters
				or manually by riffle splitting.
		For all sample types, the nature, quality and		The sample preparation process for all samples
		appropriateness of the sample preparation technique.		submitted for analysis follow accepted industry
				standards, including oven drying sample for a minimum
				of 8 hours, crushing and pulverising to 85% passing 75
				microns.
		Quality control procedures adopted for all sub-sampling		Quality control procedures have included the insertion of
		stages to maximise representivity of samples.		standards, blanks and duplicates to monitor the sampling
		Measures taken to ensure that the sampling is		and analytical process.
		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 sample sizes used are accepted industry standard
		the material being sampled.		sizes used extensively throughout the goldfields and are
				appropriate for the style of deposit.
Quality of assay		The nature, quality and appropriateness of the assaying		The standard analytical technique used is Fire Assay,
data and		and laboratory procedures used and whether the		mostly by AAS finished. Of the 16,886 RC & DD Au
laboratory tests		technique is considered partial or total.		assays in the Selene resource database, 457 historical
				assays (2.7%) do not have a recorded technique or are
				by technique other than Fire Assay. Where non gold
				analyses exist they are either by AAS or ICP OES
				determination.
		For geophysical tools, spectrometers, handheld XRF		No other geophysical or analytical tools have been used
		instruments, etc, the parameters used in determining the		to estimate grade.
		analysis including instrument make and model, reading
		times, calibrations factors applied and their derivation,
		etc.
		Nature of quality control procedures adopted (eg		QAQC has been completed routinely during the life of the
		standards, blanks, duplicates, external laboratory		Project; though less so historically than more recently.
		checks) and whether acceptable levels of accuracy (ie		The QAQC results indicate that the RC and DD assays
		lack of bias) and precision have been established.		being used for resource estimation are an accurate
				representation of the sampled material.
Verification of		The verification of significant intersections by either		The deposit is very continuous in terms of mineralisation
sampling and		independent or alternative company personnel.		and grade intercepts. The continuity and consistency of
assaying				the grade intercepts in section and along strike provides
				strong confidence in the verification of the grade and
				style of deposit. The similarity and consistency of
				intersections reported by past Project owners over many
				years is further verification of the reliability of the data.
		The use of twinned holes.		No recent twin holes were completed. Historical twin
				holes verified mineralisation continuity. In-fill verification
				holes were completed by Panoramic to test both
				geological and mineralisation continuity on selected
				sections. In each instance the expected geological and
				mineralogical interpretation was confirmed and no major
				discrepancies were identified.
		Documentation of primary data, data entry procedures,		Logging was completed in logging code protected excel
		data verification, data storage (physical and electronic)		templates on laptops and then imported into the Project
		protocols.		SQL database for validation. Sections were then
				generated and visual validation completed to ensure

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Criteria		JORC Code explanation		Commentary
				integrity of the data.
		Discuss anyadjustment to assaydata.		No adjustments were made to assaydata.
Location of data		Accuracy and quality of surveys used to locate drill holes		All recent drill collars and where possible historical drill
points		(collar and down-hole surveys), trenches, mine workings		collars have been accurately located by differential GPS.
		and other locations used in Mineral Resource estimation.		A range of down-hole survey instruments, including
				single shot, electronic multi-shot and gyroscopic tools
				have been used. Gyroscopic surveys undertaken by
				Panoramic and previous companies demonstrate that
				holes do not deviate significantly from design.
		Specification of the grid system used.		The Selene drill hole database contains local, AMG and
				MGA coordinates. The resource has been estimated in
				local grid which is rotated +1.25 degrees from MGA
				GDA94 zone 51.
				Conversion from local grid to AMG AGD84 zone 51 is
				based on a two point transformation:
				4400E, 6000N = 385096.84E, 6413919.03N
				4400E, 2000N = 385009.80E, 6409920.95N
		Quality and adequacy of topographic control.		Fugro 2.5m topographic contour data was the primary
				topographical control. In places this was modified by
				differential GPS height data.
Data spacing		Data spacing for reporting of Exploration Results.		The drilling density is on a nominal 40m by 40m spacing
and distribution		Whether the data spacing and distribution is sufficient to		through the majority of the deposit. This spacing is
		establish the degree of geological and grade continuity		sufficient to provide strong geological and mineralogical
		appropriate for the Mineral Resource and Ore Reserve		confidence in the style of deposit being estimated.
		estimation procedure(s) and classifications applied.
		Whether sample compositing has been applied.		As a general rule sample compositing has not be used.
				Sample compositing of RC precollars outside the main
				mineralised zone was undertaken at times.
Orientation of		Whether the orientation of sampling achieves unbiased		Virtually all drilling has been completed perpendicular to
data in relation		sampling of possible structures and the extent to which		the main strike of the deposit geometry and angled to
to geological		this is known, considering the deposit type.		best intercept the west dipping mineralisation.
structure		If the relationship between the drilling orientation and the		No sampling bias is apparent from the direction of
		orientation of key mineralised structures is considered to		drilling.
		have introduced a sampling bias, this should be
		assessed and reported if material.
Sample security		The measures taken to ensure sample security.		Little is known about the sample security practices
				adopted by previous companies. Panoramic samples
				were freighted in sealed bulka-bags direct from site to the
				SGS Laboratoryin Perth.
Audits or		The results of any audits or reviews of sampling		No audits or review of the Panoramic sampling
reviews		techniques and data.		procedures andprotocols has been completed.

Selene Resource – Table 1, Section 3 - Estimation and Reporting of Mineral Resources (Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

Criteria		JORC Code explanation		Commentary
Database		Measures taken to ensure that data has not been		Logging was completed in logging code protected MS
integrity		corrupted by, for example, transcription or keying errors,		Excel templates and loaded into Panoramic‟s SQL
		between its initial collection and its use for Mineral		Server database, with a “Datashed” software frontend,
		Resource estimation purposes.		for validation and storage.
				Geological and assay information was printed on hard
				copy plans and visually validated against original logs
				and assay results to ensure the digital copy agrees with
				the original format.
		Data validation procedures used.		Data validation was completed internally in SQL Server
				by setting allowable and expected values. Automated
				queries are run as the data is imported to ensure it meets
				specified criteria.
				For resource estimation a subset of the SQL database,
				restricting the data to the Selene Resource area was
				exported into an MS Access database. Additional data
				checks were run to ensure appropriate data robustness
				for the Resource Estimation.

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Criteria		JORC Code explanation		Commentary
Site visits		Comment on any site visits undertaken by the Competent		No site visits were completed by BMGS. Panoramic staff
		Person and the outcome of those visits.		managed the 2013 drilling program and were integral in
				the development of the geological and mineralisation
				models.
		If no site visits have been undertaken indicate why this is		Site visits were not required as the documented
		the case.		procedures on the recent drilling were deemed
				appropriate for the style of deposit and the historical
				drilling had been previously covered in a report released
				under JORC 2004guidelines.
Geological		Confidence in (or conversely, the uncertainty of) the		There is high confidence in the geological understanding
interpretation		geological interpretation of the mineral deposit.		of the deposit. There is a strong relationship between
				grade and a particular stratigraphical unit. The gold
				mineralisation is of a consistent grade and 2m
				composites generated of the mineralised zone showed
				an extremely good coefficient of variation (< 1.1), such
				coefficients are rarely encountered with gold deposits.
		Nature of the data used and of any assumptions made.		The data used for the resource estimate was from RC
				and diamond drilling. Raw assays, typically representing
				a 1m sample length, were composited to 2m to provide
				equal sample weights and reduce grade variance.
		The effect, if any, of alternative interpretations on Mineral		Three separate mineralised envelopes were considered;
		Resource estimation.		grade shells at 0.4, 0.6 and 1.0g/t Au were developed
				and respective estimates run for each grade shell. It was
				established through validation of the models that the
				0.4g/t Au model was the most representative of grade
				expected in the mining environment.
		The use of geology in guiding and controlling Mineral		There is a strong geological control to the mineralisation
		Resource estimation.		interpretation. The deposit is essentially strata hosted
				within a sheared Banded Iron Formation. There is some
				interpreted supergene mineralisation in the northern
				extents of the deposit that is controlled by weathering
				horizons and typically cross cuts stratigraphy at shallow
				levels.
		The factors affecting continuity both of grade and		The geological and grade continuity is strata controlled,
		geology.		with a series of late pegmatites that cross cut
				mineralisation and lithology. These pegmatites are
				generally unmineralised and have been modelled into the
				resource as background 0.1g/tgoldgrade.
Dimensions		The extent and variability of the Mineral Resource		The Selene mineralised domain is approximately 1.3km
		expressed as length (along strike or otherwise), plan		long, has a down dip of extent of up to 440m and is open
		width, and depth below surface to the upper and lower		at depth. The deposit consists of a main lode that varies
		limits of the Mineral Resource.		between 3m and 25m thick with numerous parallel lodes
				at various stages alongthe length of the deposit.
Estimation and		The nature and appropriateness of the estimation		Grade estimation of Selene deposit was completed using
modelling		technique(s) applied and key assumptions, including		Ordinary Kriging (OK) in SurpacTMsoftware. Variogram
techniques		treatment of extreme grade values, domaining,		analysis and modelling was completed using Supervisor
		interpolation parameters and maximum distance of		software. Two metre composites were generated from
		extrapolation from data points. If a computer assisted		the drill hole database and then tagged according to
		estimation method was chosen include a description of		mineralised wireframes generated at a 0.4g/t lower Au
		computer software and parameters used.		grade. The wireframe modelling conditions included a
				minimum downhole mineralisation width of 2m; an
				internal dilution of up to 3m could be included if the entire
				intercept graded above 0.4 g/t. If dilution was greater
				than 3m then separate lodes were generated if
				geological/grade continuity was supported by nearby
				drilling. The coded composites were reviewed in
				Supervisor, top cut analysis was completed using
				disintegration analysis and the impact cuts made to the
				coefficient of variation. Seven outlying grades ranging
				from 11.79 to 21.56g/t were cut to 11g/t. The cut dataset
				was then transformed by normal scores to review
				variograms and generate variomodels. Variomodels
				generated confirmed geological stratigraphy as the key
				controlling factor on mineralisation. The variomodels had
				moderate to low nuggets with a range of maximum

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Criteria		JORC Code explanation		Commentary
				continuity along the main axis of 70m.
		The availability of check estimates, previous estimates		A previous estimate of the Selene deposit was completed
		and/or mine production records and whether the Mineral		in 2008. This was used as a guide and comparative
		Resource estimate takes appropriate account of such		tools for validation purposes with the current estimate.
		data.
		The assumptions made regarding recovery of by-		No assumptions have been made about gold grade
		products.		recovery or the recovery of related by products.
		Estimation of deleterious elements or other non-grade		It was established that there was insufficient multiple
		variables of economic significance (eg sulphur for acid		element data to enable adequate estimation of
		mine drainage characterisation).		deleterious elements or other non-grading variables.
		In the case of block model interpolation, the block size in		The block model was constructed with a parent cell size
		relation to the average sample spacing and the search		of 20m Y, 10m X, and 10m Z, with subcelling to 5m Y,
		employed.		2.5m X, and 2.5m Z. All estimations were completed at
				the parent cell resolution. A very regular pattern of holes
				cover the Selene Deposit. Drill data is typically on
				sections 40m apart on northings, with holes as little as
				10m apart on eastings. The size of the search ellipse
				was based on the variography with five estimation
				passes used to populate cells. The first estimation pass
				used a minimum of 12, and maximum of 32 samples,
				with no octant constraints of the ellipse requiring data to
				allow estimation.
		Any assumptions behind modelling of selective mining		The composites were generated at 2m downhole and the
		units.		ore wireframes were maintained at a minimum width of
				2m downhole in order to represent a likely minimum
				mining width, assuming an open pit mining operations
				using 120 tonne excavators.
		Any assumptions about correlation between variables.		No correlations between grade variables have been
				assumed.
		Description of how the geological interpretation was used		The Selene Deposit is similar in many respects to the
		to control the resource estimates.		nearby Mt Henry Deposit. Mineralisation is confined to a
				series of shears within the silicate facies, Banded Iron
				Formation (Noganyer Formation). The footwall to the BIF
				is a metamorphic sedimentary schist unit and the
				hanging wall is defined by mafic flows and dykes of the
				Woolyeener Formation. The mineralisation interpretation
				is consistent with the shape and continuity of the BIF
				unit.
		Discussion of basis for using or not using grade cutting or
		capping.
		The process of validation, the checking process used,		Validation of the resource estimate was completed by
		the comparison of model data to drill hole data, and use		visual validation of block grades vs. drill hole assays in
		of reconciliation data if available.		sectional view on computer. Line graphs were also
				generated to show comparison between composite input
				grades and block output grades over 80m intervals –
				Northings, and 40m internals –Eastings, throughout the
				entire deposit to ensure the composite data was being
				accurately reflected in the model. The model was also
				compared with historical estimate to ensure report figures
				were sensible.
Moisture		Whether the tonnages are estimated on a dry basis or		The tonnages are reported as dry tonnes. Sample
		with natural moisture, and the method of determination of		preparation process involved drying the samples for 8hrs
		the moisture content.		prior to analysis.
Cut-off		The basis of the adopted cut-off grade(s) or quality		The mineralisation wireframes were modelled on a gold
parameters		parameters applied.		lower grade cut-off of 0.4g/t. This value was determined
				by visual assessment of grade continuity in SurpacTM.
				Models were also generated at 0.6 g/t and 1.0g/t Au cut-
				offgrades for comparison.
Mining factors or		Assumptions made regarding possible mining methods,		The Selene deposit has been modelled under the
assumptions		minimum mining dimensions and internal (or, if		assumption that it will be mined by conventional open pit
		applicable, external) mining dilution. It is always		mining methods, utilising excavators and trucks. This
		necessary as part of the process of determining		would typically entail 5m bench heights with 2.5m flitches
		reasonable prospects for eventual economic extraction to		and use of 120 tonne excavators with a bucket width of
		considerpotential miningmethods,but the assumptions		approximately2m. Mineralisation wireframes were

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Criteria		JORC Code explanation		Commentary
		made regarding mining methods and parameters when		constructed based on minimum thickness of 2m
		estimating Mineral Resources may not always be		downhole in order to replicate the smallest possible
		rigorous. Where this is the case, this should be reported		mining selectivity.
		with an explanation of the basis of the mining
		assumptions made.
Metallurgical		The basis for assumptions or predictions regarding		No metallurgical assumptions have been made in respect
factors or		metallurgical amenability. It is always necessary as part		to the generation of the estimate however recent
assumptions		of the process of determining reasonable prospects for		metallurgical test work had been performed as part of a
		eventual economic extraction to consider potential		feasibility study of the greater Mt Henry gold project
		metallurgical methods, but the assumptions regarding		being undertaken by Panoramic. This work has shown
		metallurgical treatment processes and parameters made		that recoveries greater than 90% Au can be achieved
		when reporting Mineral Resources may not always be		using conventional CIL extraction methods.
		rigorous. Where this is the case, this should be reported
		with an explanation of the basis of the metallurgical
		assumptions made.
Environmental		Assumptions made regarding possible waste and		The current data available doesn‟t suggest there are any
factors or		process residue disposal options. It is always necessary		high-level environmental risks with mined waste by-
assumptions		as part of the process of determining reasonable		products. If mining were to commence all statutory
		prospects for eventual economic extraction to consider		requirements would be implemented to comply with
		the potential environmental impacts of the mining and		waste by-product management.
		processing operation. While at this stage the
		determination of potential environmental impacts,
		particularly for a greenfields project, may not always be
		well advanced, the status of early consideration of these
		potential environmental impacts should be reported.
		Where these aspects have not been considered this
		should be reported with an explanation of the
		environmental assumptions made.
Bulk density		Whether assumed or determined. If assumed, the basis		A total of 1087 bulk density (BD) determinations are
		for the assumptions. If determined, the method used,		recorded in the Selene resource database subset.
		whether wet or dry, the frequency of the measurements,		Panoramic completed most of these with measurements
		the nature, size and representativeness of the samples.		on 727 core samples by Archimedes water immersion
				method. There are a number of historical measurements
				by pycnometer (7SEL* series for 181 samples) and down
				hole geophysical tool (NLC151D & NLC158 for 179 one
				metre intervals).
		The bulk density for bulk material must have been		The host rock type for mineralisation and surrounding
		measured by methods that adequately account for void		mafic material is non-porous and void space porosity is
		spaces (vugs, porosity, etc), moisture and differences		not considered to be of relevance to the measurements.
		between rock and alteration zones within the deposit.
		Discuss assumptions for bulk density estimates used in		The estimate of BD through the resource was generated
		the evaluation process of the different materials.		by grouping the 1087recorded measurements by rock
				type to provide an average SG for each of the main
				lithological rock types. The assay table in the database
				was tagged with the actual BD or an average value
				based on rock type grouped averages. The density
				value was then extracted with the gold grade in the 2m
				composite file. The BD was then estimated using the
				same Variogram models and search parameters for the
				various domains.
Classification		The basis for the classification of the Mineral Resources		The classification of the resource has been based on the
		into varying confidence categories.		Competent Person‟s strong confidence in the geological
		Whether appropriate account has been taken of all		model; derived largely from the high density of drilling
		relevant factors (ie relative confidence in tonnage/grade		(40*10m spaced RC and selective diamond drilling in the
		estimations, reliability of input data, confidence in		central extent of the deposit); and the demonstrable
		continuity of geology and metal values, quality, quantity		consistency and continuity of the mineralisation (gold
		and distribution of the data).		mineralisation is highly continuous over a 1.3km strike
				length and is strata bound).
				A large weighting of the classification related to the
				estimation pass, string constraints were also used to
				override the estimation pass allocation and reflect the
				competent person‟s view where necessary.
		Whether the result appropriately reflects the Competent		The mineral resource reflects the competent person‟s
		Person‟s view of the deposit.		view of the deposit.

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Criteria		JORC Code explanation		Commentary
Audits or		The results of any audits or reviews of Mineral Resource		Apart from BMGS‟s own internal audit process, no audits
reviews		estimates.		or reviews of the Mineral Resource estimate have been
				completed.
Discussion of		Where appropriate a statement of the relative accuracy		The resource classification is based on standard
relative		and confidence level in the Mineral Resource estimate		practices and guidelines as prescribed in the 2012 JORC
accuracy/		using an approach or procedure deemed appropriate by		Code.
confidence		the Competent Person. For example, the application of
		statistical or geostatistical procedures to quantify the
		relative accuracy of the resource within stated confidence
		limits, or, if such an approach is not deemed appropriate,
		a qualitative discussion of the factors that could affect the
		relative accuracy and confidence of the estimate.
		The statement should specify whether it relates to global
		or local estimates, and, if local, state the relevant		The resource estimate relates to a global estimate of
		tonnages, which should be relevant to technical and		tonnes and grade.
		economic evaluation. Documentation should include
		assumptions made and the procedures used.
		These statements of relative accuracy and confidence of
		the estimate should be compared with production data,		No mining currently exists at Selene therefore there is no
		where available.		production data available for comparison.

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- Appendix 3 2012 JORC Reserve Disclosures

The following Reserve disclosures for the Mt Henry Gold Project are provided.

Section 4 Estimation and Reporting of Ore Reserves

(Criteria listed in section 1, and where relevant in sections 2 and 3, also apply to this section.)

Criteria JORC Code explanation	Commentary	Commentary
Mineral Resource estimate for conversion to Ore Reserves  Description of the Mineral Resource estimate used as a basis for the conversion to an Ore Reserve.  Clear statement as to whether the Mineral Resources are reported additional to, or inclusive of, the Ore Reserves.	 Mineral Resources are inclusive of Ore r The Mineral Resources are;		eserves. Model type Surpac/Ordinary kriged Surpac/Ordinary kriged Surpac/Ordinary kriged
	Deposit Name	Geological model name	Model type
	Mt Henry	mh_06_ok_20130 625.mdl (BMGS 2013)	Surpac/Ordinary kriged
	Selene	selene_06gt_cut_2 0130619.mdl (BMGS 2013)	Surpac/Ordinary kriged
	North Scotia	north_scotia1306. mdl (BMGS 2013)	Surpac/Ordinary kriged
Site visits  Comment on any site visits undertaken by the Competent Person and the outcome of those visits.  If no site visits have been undertaken indicate why this is the case.	 The Mt Henry project is a greenfields site. Mr Williams has visited the site on six occasions to inspect topography, determine site layout, inspect drill core, consider environmental impacts of the project being developed, consultation with local stakeholders.
Study status  The type and level of study undertaken to enable Mineral Resources to be converted to Ore Reserves.  The Code requires that a study to at least Pre- Feasibility Study level has been undertaken to convert Mineral Resources to Ore Reserves. Such studies will have been carried out and will have determined a mine plan that is technically achievable and economically viable, and that material Modifying Factors have been considered.	 A feasibility level study has been completed on the three deposits demonstrating that the project is technically viable.  The level of studies has considered detailed designs and schedules, estimation of capital and operating costs based on quotes and schedules of service supply.  Modifying factors (described below) have been applied.  Discounted cash flow analysis has been used to demonstrate that the project is financially viable at an assumed gold price of A$1,500/oz
Cut-off parameters  The basis of the cut-off grade(s) or quality parameters applied.	 Cut-off grades applied to the Ore Reserves reflect the marginal breakeven cost of ore production based on the planned throughput rate and processing cost and recovery parameters determined by the Feasibility Study. A value of 0.7g/t was used for Mt Henryand Selene and 0.6g/t for North Scotia.
Mining factors or assumptions  The method and assumptions used as reported in the Pre-Feasibility or Feasibility Study to convert the Mineral Resource to an Ore Reserve (i.e. either by application of appropriate factors by optimisation or by preliminary or detailed design).  The choice, nature and appropriateness of the selected mining method(s) and other mining parameters including associated design issues such as pre-strip, access, etc.  The assumptions made regarding geotechnical parameters (eg pit slopes, stope sizes, etc), grade control and pre-production drilling.  The major assumptions made and Mineral Resource model used for pit and stope optimisation (if appropriate).  The mining dilution factors used.  The mining recovery factors used.  Any minimum mining widths used.  The manner in which Inferred Mineral Resources are utilised in mining studies and the sensitivity of the outcome to their inclusion.	 The deposits all outcrop and will be mined as open pits.  Open pits have been optimized using Whittle 4X software. All cost inputs, metallurgical and mining parameters were based on detailed studies.  The mining method is conventional and reflects the large scale, shallow nature of the deposits.  Excavation by conventional dump truck and hydraulic excavator is planned. Bench heights will vary from 5 to 10m with mining by 2.5m flitches.  Detailed pit and dump designs were generated with geotechnical parameters determined by independent consultants and based on analysis of an extensive local data set. Overall pit slopes vary from 45 -55 degrees. Ramps are 12-22m wide, berms are mainly 8m wide with some larger 15m wide berms, batter angles are mostly 75 degrees but have been flattened to 65 degrees in the upper parts of Mt Henry east wall. Most of the pit wall exposures are in fresh, competent rock. An allowance has been made to install rock catch fences and install mesh drapes over batters if required.  Grade control drilling will be required and has been included as an operational cost.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		The infrastructure requirements of the selected mining		At Selene and Mt Henry mining dilution of 5% at a diluent
		methods.		grade of 0.5g/t has been included. No mining loss has been
				assumed. At North Scotia 10% dilution at zero grade has been
				applied with no ore loss.
				Inferred Mineral Resource was included in pit optimization and
				is reported in the Mining Inventory (4.4% of total) but is
				excluded from the Ore Reserve estimate.
				A significant portion of the inferred inventory at Selene is
				mined late in the mining schedule and therefore has very little
				financial impact. The base of all the pit designs are in indicated
				resource.
				The open pits will be developed from natural surface and no
				infrastructure is required other than easily developed haulage
				roads. The site is readilyaccessible from existingroads.
Metallurgical		The metallurgical process proposed and the		A standard Carbon in Leach (“CIL”) flowsheet for gold
factors or		appropriateness of that process to the style of		extraction is proposed to treat the ores from the three deposits.
assumptions		mineralisation.		The flowsheet will consist of three stage crushing followed by
		Whether the metallurgical process is well-tested		whole ore grind to a target size of p80=38 µm. The circuit will
		technology or novel in nature.		also contain a gravity circuit.
		The nature, amount and representativeness of		The process is well tested and extensively used throughout the
		metallurgical test work undertaken, the nature of the		industry.
		metallurgical domaining applied and the corresponding		Metallurgical testwork was completed on representative
		metallurgical recovery factors applied.		samples from the three deposits. The samples came from the
		Any assumptions or allowances made for deleterious		2013 drilling programme and consisted mainly of drill core. The
		elements.		samples were from a range of locations across the deposits
		The existence of any bulk sample or pilot scale test		(upper, lower, north, south, transitional and primary).
		work and the degree to which such samples are		Metallurgical testwork consisted of determining a range of
		considered representative of the orebody as a whole.		standard comminution factors such as UCS, abrasion index,
		For minerals that are defined by a specification, has		Bond Rod mill work index and Bond Ball mill work index.
		the ore reserve estimation been based on the		A variety of tests was undertaken to examine gold recovery
		appropriate mineralogy to meet the specifications?		and reagent consumption at various grind sizes. This included
				extractive testwork in a representative sample of site water.
				Mineralogy studies and diagnostic leach tests also supported
				the overall work to determine the optimum conditions for gold
				extraction.
				Recovery (gravity plus leaching) varies slightly across the
				three deposits ranging from 90-93%. An average recovery of
				90% has been adopted as the majority of the ore is primary
				from Mt Henry and Selene.
				There are no deleterious minerals.
				No bulk samples have been tested.
				The ore reserve does not relyon specification of a mineral.
Environmental		The status of studies of potential environmental		A range of baseline studies have been conducted to ascertain
		impacts of the mining and processing operation.		the potential impacts of the project to flora and fauna
		Details of waste rock characterisation and the		(terrestrial, invertebrate and aquatic)
		consideration of potential sites, status of design		A program of waste rock characterisation has been carried out
		options considered and, where applicable, the status of		to investigate the potential impacts of the PAF rocks that form
		approvals for process residue storage and waste		the footwall of the Mt Henry and the Selene deposits in terms
		dumps should be reported.		of acid rock drainage.
				Waste dump and TSF design has been carried out to ensure
				that all PAF material is fully encapsulated and all landforms
				remain stable and non-polluting.
				The effect on groundwater by excavation of the open pits has
				also been assessed and shown to have no detrimental effects.
				Conceptual closure planning for the TSF is well advanced. A
				study of materials balance demonstrates that the TSF facility
				can be closed with a NAF waste rock cover and growth
				medium.
Infrastructure		The existence of appropriate infrastructure: availability		The project is located 2.5km from a sealed highway between
		of land for plant development, power, water,		the regional towns of Norseman and Esperance in Western
		transportation (particularly for bulk commodities),		Australia and readily accessible to skilled labour and various
		labour, accommodation; or the ease with which the		mining service companies.
		infrastructure can be provided, or accessed.		There is adequate flat land on which to construct the
				processing plant and other infrastructure that is required.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				The Kambalda to Esperance Gas pipeline is located adjacent
				to the highway with an existing take-off point on the pipeline
				from which it is proposed to build a high pressure pipeline to
				supply gas to a power station. The power station will supply all
				of the power for the project. Consultation with the pipeline
				manager has confirmed that sufficient gas will be available to
				meet the needs of the project.
				A large paleo-channel has been defined which will be the basis
				for the project water supply for ore processing and dust
				suppression.
				Consultation with the Water Authority has confirmed access to
				a potable water supply in the town of Norseman (20km‟s away)
				sufficient to supply the project for accommodation and use in
				theprocessplant.
Costs		The derivation of, or assumptions made, regarding		The majority of the Capital costs for the project (57%) are
		projected capital costs in the study		associated with construction of the processing plant. These
				costs have been estimated by an engineering and project
				design company experienced with construction of similar
				plants. Other costs regarding project infrastructure (19%) have
				been estimated by Panoramic Resources staff based on
				quotes, first principle cost buildup and detailed break-down of
				tasks & quantities. Closure and sustaining costs (12%) are
				based on a detailed task breakdown of closure activities with
				industry average unit rates. Sustaining costs are a nominal
				amount per year. Mining pre-production costs (establishment &
				excavation until processing commences) (7%) are based on a
				quote from a mining contractor and the associated schedule
				developed from the mine plan. Owner‟s costs (5%) are costs
				incurred by the company whilst the process plant and
				infrastructure is constructed.
		The methodology used to estimate operating costs.		Operating costs consist of a manning schedule by functional
		The basis for forecasting or source of treatment and		area (mining, process, administration) with a budgeted number
		refining charges, penalties for failure to meet		of employees at various salary allocations. This includes salary
		specification, etc.		on-costs. The cost of power is derived from an analysis of the
				gas market in Western Australia and a quote from a power
				station operator. Process plant reagent consumption and
				maintenance cost have been estimated by the engineering
				design company. A detailed quote from an experienced WA
				based mining contractor has been used to estimate unit costs
				by bench level within each deposit.
				Other operating costs such as flights, potable water, and grade
				control are based on quotes and experience of the Panoramic
				project team.
		Allowances made for the content of deleterious		No deleterious elements are anticipated.
		elements.		All cost assumptions are presented in Australian dollars.
		Derivation of transportation charges.		Transportation charges are not considered as gold is not a
				bulk commodity.
		The allowances made for royalties payable, both Government and private.		Allowance has been made to pay the WA State Government royalty on gold at 2.5%. There also exists a private royalty to
				the Ngadju People who are Traditional Owners of the area
				where the project is located. This royalty has been allowed for
				at the agreed rate.
Revenue		The derivation of, or assumptions made regarding		Head grade is determined by the mining sequence and reflects
factors		revenue factors including head grade, metal or		the spatial variation within and between the three deposits.
		commodity price(s) exchange rates, transportation and		Costs are based on current quotations, designs and proposals
		treatment charges, penalties, net smelter returns, etc.		and have been assumed to be constant for the life of mine.
		The derivation of assumptions made of metal or		The gold price of A$1,500/oz reflects the prevailing US$ gold
		commodity price(s), for the principal metals, minerals		price and A$:US$ FX rate and has been assumed to remain
		and co-products.		constant for the life of mine.
Market		The demand, supply and stock situation for the		Demand for gold remains strong as a hedge against inflation
assessment		particular commodity, consumption trends and factors		and a safe haven investment.
		likely to affect supply and demand into the future.
		A customer and competitor analysis along with the		Gold markets are de-regulated.
		identification of likelymarket windows for theproduct.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		Price and volume forecasts and the basis for these		US$ Gold price forecasts and A$:US exchange rates have
		forecasts.		been derived by reference to a pool of banker and broker
				forecasts.
		For industrial minerals the customer specification,		Gold is not an industrial mineral.
		testing and acceptance requirements prior to a supply
		contract.
Economic		The inputs to the economic analysis to produce the net		An 8% discount rate (real) is applied to cash flow forecasts to
		present value (NPV) in the study, the source and		generate a Net Present Value (NPV) of the project.
		confidence of these economic inputs including		A range of parameters have been analysed for NPV sensitivity.
		estimated inflation, discount rate, etc.		The project is most sensitive to gold price, head grade mill
		NPV ranges and sensitivity to variations in the		recovery and operating costs.
		significant assumptions and inputs.
Social		The status of agreements with key stakeholders and		The Mt Henry project has not yet commenced and requires
		matters leading to social licence to operate.		various approvals from the Western Australian Government
				including Mining Proposal (Department of Mines and
				Petroleum), Works approval (Department of Environmental
				Regulation) and Groundwater abstraction license (5c) from
				Department of Water.
				An adjacent tenement is being obtained to allow for waste
				dumping. The process is nearing completion.
				Various miscellaneous license and general purpose leases to
				support project infrastructure have been applied for but they
				are not yet granted.
				A native title agreement has been negotiated with the
				Traditional Owners (Nadju People) which includes provision for
				a miningoperation at the Mt Henry project.
Other	To the extent relevant, the impact of the following on the
	project and/or on the estimation and classification of the
	Ore Reserves:
		Any identified material naturally occurring risks.		There are no naturally occurring material risks identified.
		The status of material legal agreements and marketing		There are no known legal matters which constitute a material
		arrangements.		risk.
		The status of governmental agreements and approvals		The Resources are all on granted mining leases. The leases
		critical to the viability of the project, such as mineral		are due for renewal in 2028. All the other associated
		tenement status, and government and statutory		tenements are in good standing.
		approvals. There must be reasonable grounds to		It is reasonable to assume that based on consultation to date
		expect that all necessary Government approvals will be		with various government departments that approval to
		received within the timeframes anticipated in the Pre-		commence mining will be granted within standard timeframes.
		Feasibility or Feasibility study. Highlight and discuss
		the materiality of any unresolved matter that is
		dependent on a third party on which extraction of the
		reserve is contingent.
Classification		The basis for the classification of the Ore Reserves		The Probable Ore Reserve is based entirely on the Indicated
		into varying confidence categories.		Mineral Resource lying within the pit designs with appropriate
				modifying factors applied.
		The proportion of Probable Ore Reserves that have		A small amount of Inferred Mineral Resource (4.4%) is
		been derived from Measured Mineral Resources (if		included in the Mining Inventory
		any).		No Measured Mineral resource has been defined at the
				project.
		Whether the result appropriately reflects the		The result appropriately reflects the Competent Person‟s view
		Competent Person‟s view of the deposit.		of the deposits.
Audits or		The results of any audits or reviews of Ore Reserve		Much of the input data to the Ore Reserves is prepared by
reviews		estimates.		independent consultants which use internal review and audit
				processes. In addition, the Panoramic project team reviews all
				work and results on a routine basis. There is no regular
				external reviewprocess inplace.
Discussion of		Where appropriate a statement of the relative accuracy		The accuracy of the Ore Reserve is largely governed by the
relative		and confidence level in the Ore Reserve estimate		confidence in the underlying Indicated Mineral Resource. By
accuracy/		using an approach or procedure deemed appropriate		definition, this has a degree of uncertainty at both local and
confidence		by the Competent Person. For example, the application		global scale due to assumptions about grade and geological
		of statistical or geostatistical procedures to quantify the		continuity which are documented in the Mineral Resource
		relative accuracy of the reserve within stated		reports.
		confidence limits, or, if such an approach is not		Modifying factors are considered to have a high degree of
		deemed appropriate,aqualitative discussion of the		confidence due to the simple mining procedureplanned at

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Criteria	JORC Code explanation	JORC Code explanation	Commentary
		factors which could affect the relative accuracy and	each deposit.
		confidence of the estimate.
		The statement should specify whether it relates to
		global or local estimates, and, if local, state the
		relevant tonnages, which should be relevant to
		technical and economic evaluation. Documentation
		should include assumptions made and the procedures
		used.
		Accuracy and confidence discussions should extend to
		specific discussions of any applied Modifying Factors
		that may have a material impact on Ore Reserve
		viability, or for which there are remaining areas of
		uncertainty at the current study stage.
		It is recognised that this may not be possible or
		appropriate in all circumstances. These statements of
		relative accuracy and confidence of the estimate
		should be compared with production data, where
		available.

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