MATSA RESOURCES LIMITED — Capital/Financing Update 2018

Nov 4, 2018

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Matsa Resources Limited
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LIMITED ABN 48 106 732 487

ASX Announcement

5[th] November 2018

Matsa Expands Red Dog Gold Project

Highlights

CORPORATE SUMMARY

Executive Chairman

• Matsa’s Red Dog gold mine progressing well with first revenue expected this week

• Matsa has acquired additional ground adjacent to the Red Dog gold mine which it believes it is prospective for further mineralisation

Paul Poli

Director

Frank Sibbel

Director & Company Secretary

• Newly acquired area is hosted by syenite and volcanics with sporadic high grades in historical drilling including:

• 6m at 13.8 g/t Au from 20m

• 16m at 2.9 g/t Au from 55m

• Matsa will immediately proceed with further evaluation

• The acquisition further increases Matsa’s strategic footprint in the Lake Carey area and provides excellent growth opportunities

Andrew Chapman

Shares on Issue

176.93 million

Unlisted Options

13.70 million @ $0.25 - $0.30

Top 20 shareholders

Hold 53.42%

Share Price on 2[nd] November 2018

12.5 cents

Market Capitalisation

$22.12 million

Head Office: Suite 11, 139 Newcastle Street, Perth Western Australia 6000 Tel : +61 8 9230 3555 Fax: +61 8 9227 0370 Bangkok Office: Unit 1801, 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 (“Matsa” or “the Company” ASX: MAT) is pleased to advise that it has entered into an option to purchase agreement with a local prospector to acquire tenure immediately adjacent to Matsa’s Red Dog gold mine (Figure 1).

Details of the acquisition are as follows:

• MAT paid $25,000 to acquire a 12 month option (paid)

• MAT’s can exercise its option to acquire 100% of tenement M39/1111 for a cash consideration of $100,000

• Upon commencement of mining a royalty is to be paid to the vendors as follows:

• up to 10,000 oz gold - 2.25% gross smelter royalty;

• 10,000 oz to 50,000 oz gold - 1.5% gross smelter royalty;

• 50,000 oz gold - 1% gross smelter royalty; and

• 0.5% Net Smelter Royalty on all other minerals and elements other than gold.

The new ground at Red Dog provides Matsa with contiguous leases over a mapped syenite intrusion exposed at surface that is expressed as a moderate strength magnetic anomaly (Figures 1 and 2). Syenite is associated with AngloGold Ashanti Australia Limited’s (AAGA) Butcher Well gold deposit (Figure 3) as well as other deposits in the Laverton area.

Matsa’s Executive Chairman Mr Paul Poli said “The ongoing strategy of acquiring quality exploration and potential mining areas in the Lake Carey area remains a key focus for Matsa. This acquisition provides Matsa with an excellent platform to explore for high grade gold mineralisation associated with syenite as seen at AngloGold Ashanti’s Butcher Well project.”

Background

Red Dog is south and along strike of AAGA’s Butcher Well project where recent drill results included 29m at 12.9 g/t Au and 49m at 5.2g/t Au beneath syenite (refer ASX: AGG announcement 16 February 2018 with section of drilling provided as Figure 3) . The geology of the Red Dog area in M39/1111 to the west of Matsa’s currently operating Red Dog mine is dominated by syenite, a late stage intrusive, expressed as a low hill. The syenite stock and dyke system has intruded sheared andesite and andesitic volcaniclastics. The syenite stock is relatively undeformed and varies from fine to very coarse grained (up to 3 cms), with variable biotite and hornblende content. Silica, haematite and pyrite alteration is pervasive throughout.

The area has been extensively worked by prospectors with many historical surface workings evident. Previous explorers include Billiton, Newcrest, Sons of Gwalia, Wilson and Saracen. Compilation of historical data is underway with better results of work to date including:

• 6m at 13.8 g/t Au from 20m (RTFD069)

• 16m at 2.9 g/t Au from 55m (TDRC111)

• 9.7m at 3.4 g/t Au from 54m (TDD002)

• 7m at 2.9 g/t Au from 47m (TDRC112)

• 18m at 1.1 g/t Au from 2m (PTD12)

• 8m at 1.8 g/t Au from 22m (TDRC108)

• 10.48m at 1.3 g/t Au from 98.82m (TDD005)

• 10m at 1.1 g/t Au from 36m (PTD07)

• 7m at 1.49 g/t Au from 105m (TDD006)

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Figure 1: Red Dog Tenements on Magnetic Image

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Figure 2: Significant Historical Drill Results and Geology of New Tenement M39/1111

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Figure 3: Section of Anglogold Ashanti’s Butcher Well drilling

(ASX: AGG announcement dated 15[th] February 2018)

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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Competent Person

The information in this report that relates to Exploration results is based on information compiled by Mark Csar, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Mark Csar is a full time employee of Matsa Resources Limited. Mark Csar has sufficient experience which is relevant to the style of mineralisation and the type of ore deposit under consideration and the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mark Csar consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

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Appendix 1 – Historical Drill Data Summary and assay intervals greater than 1g/t Au

HoleID	**Holetype **	E_MGA	N_MGA	RL	Depth	Dip	Azimag	From(m)	To(m)	Thick(m)	Au(ppm)
PTD04	RC	438340	6748815	392	46.0	-60	75
PTD05	RC	438317	6748808	393	46.0	-60	75
PTD06	RC	438293	6748802	394	46.0	-60	75
PTD07	RC	438269	6748796	397	46.0	-60	75	36.0	46.0	10.0	1.06
PTD08	RC	438245	6748790	396	46.0	-60	75
PTD09	RC	438226	6748785	399	46.0	-60	75
PTD10	RC	438202	6748779	396	46.0	-60	75
PTD11	RC	438178	6748773	397	46.0	-60	75
PTD12	RC	438154	6748766	395	46.0	-60	75	2.0	20.0	18.0	1.12
PTD13	RC	438130	6748760	396	46.0	-60	75
PTD14	RC	438107	6748754	395	46.0	-60	75
PTD15	RC	438083	6748748	396	46.0	-60	75
PTD19	RC	438059	6748742	394	62.0	-60	75
PTD20	RC	438035	6748736	394	60.0	-60	75	0.0	1.0	1.0	1.40
PTD21	RC	438011	6748729	393	50.0	-60	75	14.0	15.0	1.0	1.55
PTD22	RC	437987	6748723	393	45.0	-60	75
PTD23	RC	437963	6748717	392	52.0	-60	75
PTD24	RC	437940	6748711	392	49.0	-60	75
PTD25	RC	437916	6748705	391	49.0	-60	75
PTD26	RC	437897	6748700	391	44.0	-60	75
PTD27	RC	437873	6748694	391	49.0	-60	75
PTD28	RC	437844	6748686	390	49.0	-60	75
PTD29	RC	437825	6748681	390	48.0	-60	75
PTD30	RC	437801	6748675	390	46.0	-60	75
PTD31	RC	437777	6748669	389	46.0	-60	75
PTD32	RC	437753	6748663	389	46.0	-60	75
PTD33	RC	438000	6748930	392	52.0	-60	75	14.0	16.0	2.0	1.57
								20.0	22.0	2.0	1.20
PTD34	RC	437976	6748924	392	40.0	-60	75	18.0	20.0	2.0	2.60
PTD35	RC	437952	6748918	392	40.0	-60	75
PTD36	RC	437928	6748912	392	40.0	-60	75
PTD37	RC	437905	6748905	392	40.0	-60	75
PTD38	RC	437881	6748899	391	40.0	-60	75
PTD39	RC	437857	6748893	390	40.0	-60	75
PTD40	RC	437833	6748887	391	40.0	-60	75
PTD52	RC	438095	6748955	393	52.0	-60	75
PTD53	RC	438072	6748949	393	55.0	-60	75
PTD54	RC	438048	6748942	393	58.0	-60	75	4.0	6.0	2.0	1.09
PTD55	RC	438024	6748936	394	46.0	-60	75
RTDF067	RAB	438332	6749220	388	30.0	-60	75
RTDF068	RAB	438351	6749225	388	24.0	-60	75
RTDF069	RAB	438366	6749228	388	30.0	-60	75	10.0	12.0	2.0	1.53
								14.0	16.0	2.0	1.09
								20.0	26.0	6.0	13.80
RTDF070	RAB	438380	6749232	388	25.0	-60	75
RTDF071	RAB	438393	6749236	388	23.0	-60	75
RTDF072	RAB	438409	6749239	388	24.0	-60	75
RTDF073	RAB	438423	6749243	388	27.0	-60	75
RTDF074	RAB	438442	6749248	389	32.0	-60	75
RTDF075	RAB	438461	6749253	389	33.0	-60	75
RTDF076	RAB	438480	6749258	389	45.0	-60	75
RTDF184	RAB	438291	6749260	388	32.0	-60	75
RTDF185	RAB	438320	6749267	388	22.0	-60	75
RTDF186	RAB	438334	6749271	389	10.0	-60	75
RTDF187	RAB	438344	6749274	389	9.0	-60	75
RTDF188	RAB	438353	6749276	388	12.0	-60	75	8.0	10.0	2.0	1.75
RTDF189	RAB	438363	6749279	388	22.0	-60	75
RTDF190	RAB	438377	6749282	389	20.0	-60	75
RTDF191	RAB	438392	6749286	389	36.0	-60	75
RTDF192	RAB	438415	6749292	389	24.0	-60	75
RTDF193	RAB	438435	6749297	389	18.0	-60	75
RTDF194	RAB	438444	6749300	389	20.0	-60	75
RTDF195	RAB	438383	6749182	388	38.0	-60	75

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RTDF196	RAB	438402	6749187	388	24.0	-60	75
RTDF197	RAB	438421	6749192	388	24.0	-60	75
RTDF198	RAB	438435	6749195	388	18.0	-60	75
RTDF199	RAB	438445	6749198	388	48.0	-60	75
RTDF233	RAB	438395	6749134	388	36.0	-60	75
RTDF234	RAB	438414	6749139	388	39.0	-60	75
RTDF235	RAB	438433	6749144	388	26.0	-60	75
RTDF236	RAB	438443	6749146	388	25.0	-60	75
RTDF237	RAB	438457	6749150	388	30.0	-60	75
RTDF238	RAB	438472	6749154	388	28.0	-60	75
RTDF239	RAB	438481	6749156	388	32.0	-60	75
SFRC01	RC	438409	6749239	388	80.0	-60	255
SFRC02	RC	438351	6749225	388	80.0	-60	75	33.0	34.0	1.0	1.53
TDD001	Diamond	438155	6748919	396	155.0	-90	360
TDD002	Diamond	438300	6748753	395	159.2	-90	360	0.0	2.0	2.0	1.50
								24.4	25.6	1.2	2.20
								44.0	45.0	1.0	1.75
								48.0	49.0	1.0	1.75
								54.0	63.7	9.7	3.37
								106.0	107.0	1.0	1.20
								113.0	114.0	1.0	1.04
								150.0	156.1	6.1	1.59
TDD003	Diamond	438037	6748787	392	150.0	-90	360	3.9	5.4	1.5	2.54
								69.0	70.3	1.3	1.92
								73.0	74.0	1.0	2.35
TDD004	Diamond	438182	6748621	393	150.0	-90	360	13.0	14.7	1.7	1.93
								22.0	23.2	1.2	8.26
								26.4	28.4	2.0	1.32
								59.0	60.0	1.0	7.50
								143.0	144.0	1.0	2.55
TDD005	Diamond	437894	6748750	391	150.0	-90	360	16.0	17.0	1.0	1.08
								30.0	31.1	1.1	2.25
								37.7	39.0	1.3	1.30
								42.0	43.0	1.0	1.08
								51.9	53.1	1.1	1.97
								85.0	86.0	1.0	1.12
								94.7	97.0	2.3	1.44
								98.8	109.3	10.5	1.30
TDD006	Diamond	438239	6748890	396	150.0	-90	360	4.0	5.0	1.0	2.18
								6.0	7.0	1.0	1.37
								56.0	57.0	1.0	1.30
								71.0	72.0	1.0	1.03
								105.0	112.0	7.0	1.49
								114.0	115.0	1.0	1.10
								120.0	121.0	1.0	1.87
								125.0	127.0	2.0	1.13
								130.0	131.0	1.0	1.12
TDD008	Diamond	438350	6748607	389	335.8	-90	360
TDRC106	RC	438349	6748738	387	77.0	-59	120	3.0	4.0	1.0	1.49
								6.0	8.0	2.0	4.92
								21.0	22.0	1.0	1.43
								37.0	38.0	1.0	1.20
								53.0	54.0	1.0	2.80
								57.0	58.0	1.0	2.84
								60.0	61.0	1.0	1.47
TDRC107	RC	438331	6748749	388	128.0	-60	118	0.0	1.0	1.0	1.21
								10.0	13.0	3.0	1.46
								49.0	51.0	2.0	1.53
								68.0	69.0	1.0	1.13
								78.0	79.0	1.0	1.44
TDRC108	RC	438312	6748760	389	163.0	-60	120	22.0	30.0	8.0	1.80
								55.0	56.0	1.0	1.30
								80.0	82.0	2.0	1.76
								153.0	154.0	1.0	4.87
								159.0	160.0	1.0	1.70
TDRC109	RC	438328	6748703	387	78.0	-60	120	4.0	5.0	1.0	2.18
								35.0	36.0	1.0	2.48

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								41.0	42.0	1.0	4.31
TDRC110	RC	438310	6748714	388	118.0	-60	120	25.0	26.0	1.0	1.56
								28.0	29.0	1.0	1.70
								31.0	32.0	1.0	1.45
								44.0	45.0	1.0	1.07
								52.0	53.0	1.0	1.14
								56.0	57.0	1.0	1.26
								59.0	60.0	1.0	1.21
TDRC111	RC	438292	6748724	390	168.0	-60	120	11.0	13.0	2.0	1.86
								27.0	28.0	1.0	2.38
								31.0	32.0	1.0	1.13
								41.0	42.0	1.0	1.08
								48.0	49.0	1.0	1.50
								55.0	71.0	16.0	2.93
								75.0	77.0	2.0	1.05
								130.0	131.0	1.0	1.15
								162.0	163.0	1.0	1.56
								165.0	166.0	1.0	1.93
								167.0	168.0	1.0	1.14
TDRC112	RC	438324	6748663	386	59.0	-60	120	7.0	8.0	1.0	1.16
								14.0	15.0	1.0	1.31
								26.0	27.0	1.0	1.17
								47.0	54.0	7.0	2.89
TDRC113	RC	438310	6748673	387	79.0	-60	120	11.0	13.0	2.0	1.75
								15.0	16.0	1.0	1.09
								24.0	25.0	1.0	1.10
								31.0	32.0	1.0	2.21
								57.0	58.0	1.0	3.23
								72.0	74.0	2.0	1.95
TID122	Diamond	438242	6748649	393	334.0	-60	120

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Appendix 2 – JORC table

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation Commentary
Sampling techniques	 Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Historical: RAB and RC drilling sampled with drill chips. RAB sampled with 2 to 5m composites with 1m splits in areas of elevated results. RC drilling sampled at 1-2m intervals. Where noted, samples were sub-split for assay by Aqua Regia or Fire assay. Diamond drilling sampling either to 1m intervals or geological contacts.  Measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.  Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.
Drilling techniques	 Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). Historical: Details of pre 2011 (Billiton/Newmont/SOG) drilling by RAB, RC and Diamond methods unknown. Saracen (TDRC series) used RC with auxiliary booster.
Drill sample recovery	 Method of recording and assessing core and chip sample recoveries and results assessed. Historical: No records of recovery noted. Shallow drilling is expected to have high recovery based on nearby drilling experience.
	 Measures taken to maximise sample recovery and ensure representative nature of the samples. Historical: No record noted.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary
		Whether a relationship exists between sample recovery and grade and	Historical: Not determined
		whether sample bias may have occurred due to preferential loss/gain of
		fine/coarse material.
Logging		Whether core and chip samples have been geologically and geotechnically	Historical: A limited number of holes have qualitative geological logging. A
		logged to a level of detail to support appropriate Mineral Resource	selected number of samples have been petrographically described in detail.
		estimation, mining studies and metallurgical studies.
		Whether logging is qualitative or quantitative in nature. Core (or costean,
		channel, etc) photography.
		The total length and percentage of the relevant intersections logged.
Sub-sampling		If core, whether cut or sawn and whether quarter, half or all core taken.	Historical: Data on subsampling methodology of holes drilled prior to 2011 is
techniques and			absent. Some early historical drill programs report selective sampling, assumedly
sample preparation		If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	on visual veins. This may limit validity of some intersections. Saracen (TDRC series) cone split on 1m basis.
		For all sample types, the nature, quality and appropriateness of the sample
		preparation technique.
		Quality control procedures adopted for all sub-sampling stages to maximise
		representivity of samples
		Measures taken to ensure that the sampling is representative of the in situ
		material collected, including for instance results for field duplicate/second-
		half sampling
		Whether sample sizes are appropriate to the grain size of the material being
		sampled.
Quality of		The nature, quality and appropriateness of the assaying and laboratory	Historical: Data generally absent. Assay accuracy determined by laboratory
assay data and		procedures used and whether the technique is considered partial or total.	QACQ processes where noted. Lab reports show standard industry QA QC
			procedures in place. Drilling QAQC not recorded.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary
laboratory		For geophysical tools, spectrometers, handheld XRF instruments, etc, the
tests		parameters used in determining the analysis including instrument make and
		model, reading times, calibrations factors applied and their derivation, etc.
		Nature of quality control procedures adopted (eg standards, blanks,
		duplicates, external laboratory checks) and whether acceptable levels of
		accuracy (ie lack of bias) andprecision have been established.
Verification of		The verification of significant intersections by either independent or	Historical: Composites validated by individual 1m splits. No twinned holes
sampling and		alternative company personnel.	carried out. Historical data transferred from publically available Wamex reports.
assaying		The use of twinned holes.	No amendments to assay data have been made.
		Documentation of primary data, data entry procedures, data verification,
		data storage (physical and electronic) protocols.
		Discuss any adjustment to assay data.
Location of		Accuracy and quality of surveys used to locate drill holes (collar and down-	Historical. Pre 2011 no data but based on Red Dog project assumed to be tape
data points		hole surveys), trenches, mine workings and other locations used in Mineral	and compass. Positioning of collars based on hard copy Wamex reports. Saracen
		Resource estimation.	(TDRC series) drilling positioning by DGPS.
		Specification of the grid system used.
		Quality and adequacy of topographic control.
Data spacing		Data spacing for reporting of Exploration Results.	Historical: Regional exploration lines with some closer spaced drilling in syenite
and			or quartz veined areas. Samples have been composited over the mineralised
distribution			interval for reporting results.
		Whether the data spacing and distribution is sufficient to establish the
		degree of geological and grade continuity appropriate for the Mineral
		Resource and Ore Reserve estimation procedure(s) and classifications
		applied.
		Whether sample compositing has been applied.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary
Orientation of		Whether the orientation of sampling achieves unbiased sampling of possible	Historical: Drilling largely at 60oto the west or vertical to test an interpreted
data in relation		structures and the extent to which this is known, considering the deposit	relatively flat lying syenite unit. The minimum RC and RAB 1m sampling interval
to geological		type.	may have diluted parts of the syenite to this minimum sampling width in parts
structure			and on edges of the unit. No significant bias, apart from that mentioned, is
			thought to have occurred due to orientation of drilling direction.
		If the relationship between the drilling orientation and the orientation of key
		mineralised structures is considered to have introduced a sampling bias, this
		should be assessed and reported if material.
Sample		The measures taken to ensure sample security.	Historical: Unknown.
security
Audits or		The results of any audits or reviews of sampling techniques and data.	No audit carried out.
reviews

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral	 Type, reference name/number, location and ownership including	Tenement M39/1111 is live and held by Mr S Wilson. The tenement is operated
tenement and	agreements or material issues with third parties such as joint ventures,	by Matsa Resources under an option to purchase agreement with the tenement
land tenure	partnerships, overriding royalties, native title interests, historical sites,	holder. There are no known impediments to operating in the area.
status	wilderness or national park and environmental settings.
	 The security of the tenure held at the time of reporting along with any
	known impediments to obtaining a license to operate in the area.
Exploration done	 Acknowledgment and appraisal of exploration by other parties.	Previous explorers include CSR, Pennzoil-Vam JV, Shell Company Australia,
by other parties		Billiton Australia, Goldfields Kalgoorlie, Sons of Gwalia, Wilson and Saracen.
Geology	 Deposit type, geological setting and style of mineralisation.	The deposit type being sought is orogenic syntectonic gold mineralisation. Gold
		is interpreted to be associated with shear zones and associated syenite
		intrusions.

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Criteria	JORC Code explanation	Commentary
Drill hole	 A summary of all information material to the understanding of the	See Appendix 1 for listing of historical drill holes. Further work may note
Information	exploration results including a tabulation of the following information for	additional drilling.
	all material drill holes:
	o easting and northing of the drill hole collar
	o elevation or RL (Reduced Level – elevation above sea level in metres) of
	the drill hole collar
	o dip and azimuth of the hole
	o down hole length and interception depth
	o hole length.
	 If the exclusion of this information is justified on the basis that the
	information is not material and this exclusion does not detract from the
	understanding of the report, the Competent Person should clearly explain
	why this is the case.
Data	 In reporting Exploration Results, weighting averaging techniques,	Intercepts are weight averaged over mineralised intervals with a lower cut of
aggregation	maximum and/or minimum grade truncations (eg cutting of high grades)	1gt/Au and no upper cut.
methods	and cut-off grades are usually material and should be stated.
	 Where aggregate intercepts incorporate short lengths of high grade
	results and longer lengths of low grade results, the procedure used for such
	aggregation should be stated and some typical examples of such
	aggregations should be shown in detail.
	 The assumptions used for any reporting of metal equivalent values should
	be clearly stated.
Relationship	 These relationships are particularly important in the reporting of	All intercepts quoted relate to downhole depth. The syenite units are
between	Exploration Results.	interpreted to be flay lying. Intercepts in are expressed in downhole metres.
mineralisation	 If the geometry of the mineralisation with respect to the drill hole angle is
widths and	known, its nature should be reported.
intercept lengths	 If it is not known and only the down hole lengths are reported, there should
	be a clear statement to this effect (eg ‘down hole length, true width not
	_known’). _
Diagrams	 Appropriate maps and sections (with scales) and tabulations of intercepts	Diagrams have been included in the text.
	should be included for any significant discovery being reported These
	should include, but not be limited to a plan view of drill hole collar locations
	and appropriate sectional views.

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Criteria	JORC Code explanation	Commentary
Balanced	 Where comprehensive reporting of all Exploration Results is not	Assay grades vary from below detection to a maximum of 34.1g/t Au. Results
reporting	practicable, representative reporting of both low and high grades and/or	reported at 1g/t Au lower cut with no upper cut.
	widths should be practiced to avoid misleading reporting of Exploration
	Results.
Other	 Other exploration data, if meaningful and material, should be reported	Surface geology interpretation and geophysics exists over the area of interest.
substantive	including (but not limited to): geological observations; geophysical survey	Preliminary recovery work on the nearby Red Dog project indicates a gold
exploration data	results; geochemical survey results; bulk samples – size and method of	recovery of approximately 90 - 95%.
	treatment; metallurgical test results; bulk density, groundwater,
	geotechnical and rock characteristics; potential deleterious or
	contaminating substances.
Further work	 The nature and scale of planned further work (eg tests for lateral	Sourcing and compilation of other historical data. Validation and further
	extensions or depth extensions or large-scale step-out drilling).	exploration works are planned.
	 Diagrams clearly highlighting the areas of possible extensions, including
	the main geological interpretations and future drilling areas, provided this
	information is not commercially sensitive.

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