METALS AUSTRALIA LTD — Capital/Financing Update 2016

Nov 10, 2016

ASX Announcemen

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11 Nov e mber 2016

High Grade 7.86% Graphitic Carbon (‘Cg’) In Composite Sample From 10m x 10m Outcrop at Lac Rainy Nord Graphite Project

Highlights:

• A detailed review of a 1989 sampling program at the Lac Rainy Nord Graphite project has shown the 7.86% Cg result in sample 2306 was not a rock chip sample as previously believed but a composite sample taken from “all four corners” of a 10m x 10m outcrop of graphitic carbon

• The 1989 outcrop sampling program was significantly larger than previously understood and highlights the potential for the Lac Rainy Nord graphite project to be the source of mass high grade graphite mineralisation

• The 10m x 10m graphite rock outcrop from which the sample was taken is towards the northern end of the Lac Rainy Nord Graphite Project within a north-south trending geological lineament

• The geological lineament extends approximately 5km to the southern boundary of the tenement where it continues into the northern boundary of Focus Graphite’s Lac Knife Graphite property and is approximately on strike to the Lac Knife Graphite Deposit which is located approximately 2 km further south

• Focus Graphite’s Lac Knife Graphite Deposit is one of the highest grade flake graphite deposits in the world. It contains an NI 43-101 Measured and Indicated reserve of 9,576,000 million tonnes grading 14.27% Cg, and an Inferred resource of 3,102,000 tonnes grading 13.25% Cg

• The Lac Knife Graphite Deposit appears to sit on strike on the same geological lineament as the 10m x 10m graphitic outcrop from which composite sample 2306 was taken

• Significant potential exists to identify additional graphite mineralisation under the shallow unconsolidated overburden over the entire 5km distance between the graphite rich outcrop and Focus Graphite’s Lac Knife property

• MLS is planning an airborne geophysical survey to cover the entire north-south mineralised trend within the Lac Rainy Nord graphite project so as to provide targets for drilling

• MLS is continuing to evaluate further exploration opportunities in the Graphite and Lithium space

Diversified metals exploration company, Metals Australia Ltd (ASX: MLS ) is pleased to provide an update on the recently announced acquisition of Quebec Lithium Limited ( QLL ), the 100% owner of the Lac Rainy Nord graphite project and each of the Lac La Motte, Lac La Corne and Lacourciere-Darveau lithium projects located in Quebec, Canada.

Chairman of MLS, Mr Solomon Majteles commented on the results from the review of the historical exploration at Lac Rainy Nord graphite project, stating:

“A detailed review of the historical exploration at the Lac Rainy Nord Graphite Project has been carried out and the results are well beyond what we had envisaged at the project.

MLS intends to undertake an airborne combined electromagnetic and magnetic survey to further assess the mineralisation at the project which lies along strike of the Focus Graphite Lac Knife Graphite Deposit to provide targets for a drilling campaign to take place during 2017.

Lac Rainy Nord presents MLS with a great opportunity to take advantage of the burgeoning graphite market fuelled by the growth of the electric vehicle sector and the developing mass grid electricity storage sector.”

Historical Exploration at Lac Rainy Nord Graphite Project

The Company is pleased to announce that a recent in-depth review of the historical exploration information regarding the area now contained within the Company’s significant Lac Rainy Nord graphite project has provided some additional pertinent information.

It was previously announced that the single rock sample (sample #2306) taken in 1989 from the Lac Rainy-Nord graphitic occurrence graded 7.86% graphitic carbon (Cg). The Quebec database summary which describes the circumstances and location from which the sample was obtained specifically stated that the dimensions of the source outcrop was at the time unknown.

The database also provided no information on the particulars of the rock sample itself. Upon initial review, the Company presumed that the rock sample was a typical grab sample, which would therefore consist of one or more rock fragments collected from a single spot measuring not more than a few centimetres or tens of centimetres.

However, information now obtained from a French-language historical report (MERN GM-49448) written in 1989 for a previous owner, Societe Exploration Miniere Mazarin, states that the size of the outcrop is approximately 10 metres by 10 metres and, more significantly, that the rock grab sample consisted of rock fragments collected from the "four corners" of the outcrop.

This indicates that the mineralised zone is significantly wider than initially understood by both the Company and QLL. The full length of the north-south trending mineralised zone within which the outcrop sits remains unknown as it is covered by shallow unconsolidated sediments and loose overburden to the north and south.

The Company is evaluating commencement of an airborne combined electromagnetic and magnetic survey over the winter in order to determine the possible extent of the buried portions of the graphitic carbon mineralised zone.

The outcrop from which graphite-rich sample 2306 was taken is near the northern end of the Lac Rainy Nord Graphite Project, with the project’s southern border being located approximately 5,000 metres to the south of the outcrop. There is little or no exposed bedrock over this distance, the southern end of which is marked by the northern boundary of Focus Graphite's Lac Knife Graphite Deposit licence boundary.

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The ma p below (Fi g ure 1) illust r ates the contiguous n a ture of the Lac Rainy Nord Graphite Project licence b oundaries with the lic e nce bound a ries of the Lac Knife Graphite De p osit which i s owned by Foc u s Graphit e . The str u cturally i m portant n o rth-south geological lineament is also highlig h ted in the map. This is consider e d to be an important source of m ineralisati o n and is expecte d to define the extensi o ns of min e ralisation along the north-south z o ne of the L ac Rainy Nord G r aphite Proj e ct.

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QLL: Lac Rainy Nord
7.86% Cg
(Sample 2306;
Report GM‐49448)
Focus Graphite: Lac
Knife Graphite Deposit
9.6Mt Measured and
Indicated @ 14.77% Cg
and 3.1Mt Inferred @
13.25% Cg
----- End of picture text -----

Figure 1: Geology of the Lac Rainy Nord graphite project and contiguous nature licence boundaries of Focus Graphite Lac Knife Deposit and Lac Rainy Nord graphite project. Focus Graphite licence boundaries shown in red. North-South geological lineament shown in yellow

Lac Knife is one of t he highest - grade flak e graphite d e posits in t h e world, gr a ding appr o ximately 15% gr a phitic car b on. An up d ated NI 4 3 -101 reso u rce calculation releas e d in Janu a ry 2014 reporte d Measured and Indic a ted resour c es totallin g 9,576,000 million ton n es gradin g 14.77% graphiti c carbon, w i th Inferred r esources o f 3,102,000 t onnes grading 13.25% c arbon.

Source: http://ww w. focusgrap h ite.com/lac - knife/

The co n tinuity in t h e geology between the Focus Gr a phite Lac K nife Depos i t and the L ac Rainy Nord g r aphite pro j ect suppor t s the und e rstanding that further graphite m ineralisatio n can be identifi e d at the La c Rainy Nor d graphite p roject with i n the north-south stru c tural zone. The well underst o od geolo g ical enviro n ment and the identifi e d geologi c al similariti e s between the Lac

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Knife Deposit and the Lac Rainy Nord Graphite Project highlight the potential extensions of the graphite mineralisation across the entire project area.

This dominant and geologically important structural lineament that runs in an approximate northsouth direction highlights this continuity of geology and provides the basis for the geological view that additional graphite mineralisation can be sourced at the Lac Rainy Nord graphite project.

There is significant potential to identify additional graphite mineralisation under the shallow unconsolidated overburden over the entire 5-kilometre distance between the graphite-rich outcrop and Focus Graphite's Lac Knife project. The airborne geophysical survey will be designed to cover this ground and can be carried out over the winter, with the results available for groundbased follow-up in the spring or for drilling that can begin regardless of season.

Mazarin’s 1989 technical report (MERN GM-49448) is the most recent in the Quebec government files describing the area covered by the Lac Rainy Nord Graphite Project. Mazarin’s report is titled (translated from French) “Report on the 1989 Exploration Program, Fermont Project, Exploration Permits 861, 862, 863, 864, 865, 866, 870, 871 and 872 and the Groups of Claims of Lac Carheil and Lac du Croche”. Permit 861 originally covered the area of the current Lac Rainy Nord Graphite Project.

The following phrases have been translated from Mazarin’s technical report:

Page 2: “Numerous showings and mineralized boulders were discovered on the Permit, the principal ones being located north of Lac Rainy and in the southeast part of the property. Supplementary work is required to establish the shape, the dimensions and the grades of the showings, and to discover others possibly more important by using the results of a heliborne geophysical survey.”

Page 22: “The graphite showing at the north end of Lac Rainy…reveals the presence of graphitic horizons of important dimensions. Furthermore, it is stratigraphically located approximately on strike with the Lac Knife deposit.”

More recently, in 2014, Focus Graphite Inc. published a 269-page report prepared by Met-Chem, titled: “NI 43-101 Technical Report on the Lac Knife Graphite Feasibility Study, Quebec, Canada”.

http://www.focusgraphite.com/wp-content/uploads/largeReport/Lac-Knife-Feasibility-StudyTechnical-Report-August-2014.pdf

A significant proportion of the Met-Chem report is directly relevant to the Lac Rainy Nord Graphite Project as the two properties are contiguous and share similar geology.

Aside from less-immediate matters such as the proposed mining, ore and waste processing methods, Met-Chem’s report also provides valuable information on physiography and accessibility, local resources and infrastructure, land tenure, regional and local geology, mineralisation and deposit types, exploration history, permits and the environment, the local indigenous community and social impact, and other matters.

This current and valuable information should provide cost savings to MLS at the Lac Rainy Nord Graphite Project as exploration and development is initiated and advanced.

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Lac Rainy Nord Graphite Project

The Lac Rainy Nor d graphite p r oject is loc a ted in the most domi n ant graphit e geological regions of Que b ec, approx i mately 22k m southwe s t of the hi s toric mining town of F ermont an d 260km north-n o rth-east o f city of Sep t -Iles. The L a c Rainy No r d graphite project is located appr o ximately 15km e a st of Route 389, a pav e d highway w hich exten d s north to Fermont.

Access t o the Lac R ainy Nord G raphite Pr o ject is facilitated by a system of s mall off-ro a d tracks which c o nnect to R o ute 389.

The Lac Rainy Nor d Graphite P roject con s ists of a c o ntiguous landholding o f 32 mineral claims 2 coverin g an area of approxima t ely 16.74 k m .

Figure 2 illustrates t he location of the Lac Rainy Nord graphite project and it s location r e lative to other d e veloped gr a phite occu r rences and deposits in the region.

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QLL: Lac Rainy Nord
7.86% Cg
(Sample 2306;
Report GM‐49448)
Focus Graphite: Lac
Knife Graphite Deposit
9.6Mt Measured and
Indicated @ 14.77% Cg
and 3.1Mt Inferred @
13.25% Cg
Figure 2: Location of the Lac Rainy Nord graphite project
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The Lac Rainy Nor d Graphite Project, including surro u nding land s , was previ o usly owne d by Soc. Expl. Min. Mazarin Inc. ( Mazarin Inc. ).

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Historical exploration conducted by Mazarin Inc. at the Lac Rainy Nord graphite project and surrounding lands comprised geophysics (MAG - VLF EM), ground and helicopter prospecting, stripping, trenching, geological surveys and sampling. This exploration has identified several primary mineralised targets.

The Lac Rainy Nord graphite project is located in a well understood geological setting which is host to numerous graphite occurrences and deposits owned by major operators. The favourable location and access to the project facilitates exploration and development in a low cost environment.

The Lac Rainy Nord graphite project is located within 5 km of the following known and explored graphite projects:

• Fermont – Site 7 and 9 : 15.06% Cg over 1.5 m (sample RX- 5324; Site 7); 11.83% Cg over 1.5 m (sample spline RX- 5328; Site 9); 9.96% Cg over 2.0 m (sample RX- 5332; Site 9); 25.37% Cg (grab samples RX- 5351; Site 9) and 24.69% Cg (grab samples RX- 5353; Site 9).

• Fermont – Site 11 : 21.58% Cg over 1.5 m (RX- 5339); 11.39% Cg over 1.5 m (sample RX5341); 5.57% Cg over 1.5 m (sample RX- 5338); 13.90% Cg (sample RX- 5352). The size of graphite flakes is from 1 to 5 mm.

• Fermont – Site 3, 5 and 6 : 16.87% Cg (sample RX- 5347); 6.78% Cg (sample RX- 5349 - Site 5); 6.25% Cg (sample RX- 5317 - Site 3); 5.49% Cg to 1.5 m (sample RX – 5323 - Site 6). The size of graphite flakes is from 2 to 8 mm.

• Permit 861 : 22.27% Cg and 16.68% Cg (sample 2215 and 2214). In this stratigraphic horizon, the content ranges from 5% to 20% graphitic carbon and fine flake.

• Lac Knife : 13.19% Cg (sample RX4560); 9.55% Cg over 2.5 m (sample RX4559). Graphite is very coarse flakes.

The Lac Rainy Nord graphite project was first discovered in 1989 and has been subject to some exploration over that time. However, previous exploration was focused mainly on the iron potential of the region which has meant that the true mineralisation and potential of the Lac Rainy Nord graphite project has not been fully established.

The Lac Rainy Nord graphite project is contiguous with the tenements containing the Lac Knife Graphite Deposit which is owned by Focus Graphite. (Measured and Indicated resource totalling 9,576,000 million tonnes grading 14.77% graphitic carbon together with Inferred resources of 3,102,000 tonnes grading 13.25% graphitic carbon).

The Feasibility Study completed by Met-Chem Canada Inc. (released on 8 August 2014) on the Lac Knife Graphite Deposit indicates that the Lac Knife Graphite Deposit has the potential to become one of the lowest-cost, highest-margin producers of graphite in the world.

Refer to http://www.focusgraphite.com/wp-content/uploads/largeReport/Lac-Knife-FeasibilityStudy-Technical-Report-August-2014.pdf for further information in relation to the Feasibility Study at the Lac Knife graphite project.

Graphite mineralisation is set in migmatized biotite-bearing quartz-feldspar gneiss belonging to the Nault Formation of the lower Proterozoic Gagnon Group.

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The Qu é bec Minist r y of Natur a l Resource s has state d that, where this gneissic unit is sheared, brecciated and silicified, coars e graphite flakes and a s sociated sulphide min e rals make u p 5% to 10% of t he rock, wi t h up to 20 % or more i n the more b recciated z o nes.

Fuchsit e and other iron-rich m icas acco m pany the graphite an d sulphide m ineralisati o n in the more silicified horizons.

Figure 3 below illus t rates the g e ological se t ting releva n t to the La c Rainy Nor d graphite project.

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QLL: Lac Rainy Nord
7.86% Cg
(Sample 2306;
Report GM‐49448)
Focus Graphite: Lac
Knife Graphite Deposit
9.6Mt Measured and
Indicated @ 14.77% Cg
and 3.1Mt Inferred @
13.25% Cg
----- End of picture text -----

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Figure 3: Geology of the Lac Rainy Nord graphite project

MLS is continuing to evaluate further exploration project opportunities in the lithium and graphite sectors.

For more information, please contact:

Mr. N Grafton James Mos e s Compa n y Secretary Media and I nvestor Rel a tions Metals A ustralia Lt d Mandate C o rporate Phone: + 61 8 9481 7833 M: +61 420 991 574 E: james@ m andatecor p orate.com. a u

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Competent Person Statement

Mr Glenn S Griesbach, PGeo, a qualified person under NI 43-101, has reviewed and verified the technical information provided in this announcement. Any information in this announcement that relates to historical resources, resource estimates or exploration results, is based on information compiled by Mr Glenn S Griesbach, PGeo, who is a Member of the Association of Professional Engineers and Geoscientists of Saskatchewan (a Recognised Overseas Professional Organisation (‘ROPO’) included in a list promulgated by the ASX from time to time). Mr Griesbach is a Consultant Geologist to and a shareholder of Quebec Lithium Limited. Mr Griesbach has sufficient experience, which 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 ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Griesbach consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

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JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	JORC Code explanation	Commentary
Sampling		Nature and quality of sampling (eg cut channels, random chips, or specific specialised	No drilling completed to date.
techniques		industry standard measurement tools appropriate to the minerals under investigation,
		such as down hole gamma sondes, or handheld XRF instruments, etc). These	Rock samples comprise multiple chips considered to be representative of the horizon
		examples should not be taken as limiting the broad meaning of sampling.	or outcrop being sampled.
		Include reference to measures taken to ensure sample representivity and the
		appropriate calibration of any measurement tools or systems used.	Samples submitted for assay typically weigh 2-3 kg.
	 	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	Continuous channel sampling of trenching ensures the samples are representative. Entire 2-3 kg sample is submitted for sample preparation.
		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		Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger,	No drilling completed.
techniques		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). _
Drill sample		Method of recording and assessing core and chip sample recoveries and results	Not applicable.
recovery		assessed.
		Measures taken to maximise sample recovery and ensure representative nature of the
		samples.
		Whether a relationship exists between sample recovery and grade and whether sample
		bias may have occurred due topreferential loss/gain of fine/coarse material.
Logging		Whether core and chip samples have been geologically and geotechnically logged to a	All trenches sampled are logged continuously from start to finish with key geological
		level of detail to support appropriate Mineral Resource estimation, mining studies and	observations recorded.
		metallurgical studies.
		Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc)	Logging is quantitative, based on visual field estimates.
		photography.
		The total length andpercentage of the relevant intersections logged.
Sub-sampling		If core, whether cut or sawn and whether quarter, half or all core taken.	Sample preparation follows industry best practice standards and is conducted by
techniques and		If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or	internationally recognised laboratories, either SGS Laboratories in Lakefield, Ontario or
sample		dry.	Activation Laboratories Ltd in Val d’Or, Quebec.
preparation		For all sample types, the nature, quality and appropriateness of the sample preparation technique.	Oven drying, jaw crushing and pulverising so that 85% passes 75 microns.
	 	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	Blanks have been submitted every 50 samples to ensure there is no cross contamination from sample preparation.
		collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to thegrain size of the material being sampled.	Measures taken include (a) systematic sampling across whole pegmatite zone; (b)

Criteria	JORC Code explanation	JORC Code explanation	Commentary
			comparison of actual assays for blanks with theoretical values.
			Sample size (2-3 kg) accepted as general industry standard.
Quality of assay		The nature, quality and appropriateness of the assaying and laboratory procedures	Assay and laboratory procedures have been selected following a review of techniques
data and		used and whether the technique is considered partial or total.	provided by internationally certified laboratories. In addition, the sample preparation
laboratory tests		For geophysical tools, spectrometres, handheld XRF instruments, etc, the parametres	laboratory in Quebec and Ontario is regularly visited to ensure high standards are
		used in determining the analysis including instrument make and model, reading times,	being maintained.
		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) and precision have been established.	Samples are submitted for multi-element analysis by Activation Laboratories and SGS Laboratories. Where results exceeded upper detection limits for Li and/or Ta, samples are re-assayed.
			The final techniques used are total.
			None used.
			Barren granitic material is submitted every 50 samples as a control.
			Comparison of results indicates good levels of accuracy and precision. No external
			laboratory checks have been used.
Verification of		The verification of significant intersections by either independent or alternative	None undertaken.
sampling and		company personnel.
assaying		The use of twinned holes.	Not applicable.
		Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	All field data is manually collected, entered into excel spreadsheets, validated and
		Discuss any adjustment to assay data.	loaded into an Access database.
			Electronic data is stored in Quebec. Data is exported from Access for processing by a
			number of different software packages.
			All electronic data is routinely backed up.
			No hard copy data is retained.
			None required.
Location of data		Accuracy and quality of surveys used to locate drill holes (collar and down-hole	All trench start points and geochemical samples are located using a hand held GPS.
points		surveys), trenches, mine workings and other locations used in Mineral Resource
		estimation.	Trenches are surveyed using hand held compass and clinometer.
		Specification of the grid system used.
		Quality and adequacy of topographic control.	The grid system used is UTM. However, for reporting purposes and to maintain confidentiality, local coordinates are used for reporting.
			Nominal RL’s based on topographic datasets are used initially, however, these will be
			updated if DGPS coordinates are collected.

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Criteria	JORC Code explanation	JORC Code explanation	Commentary
Data spacing and		Data spacing for reporting of Exploration Results.	Only reconnaissance trenching and sampling completed – spacing variable and based
distribution		Whether the data spacing and distribution is sufficient to establish the degree of	on outcrop location and degree of exposure.
		geological and grade continuity appropriate for the Mineral Resource and Ore Reserve
		estimation procedure(s) and classifications applied.	Not applicable.
		Whether sample compositing has been applied.	None undertaken.
Orientation of		Whether the orientation of sampling achieves unbiased sampling of possible structures	Sampling completed at right angles to interpreted trend of pegmatite units.
data in relation to		and the extent to which this is known, considering the deposit type.
geological		If the relationship between the drilling orientation and the orientation of key mineralised	None observed.
structure		structures is considered to have introduced a sampling bias, this should be assessed
		and reported if material.
Sample security		The measures taken to ensure sample security.	Geological team supervises all sampling and subsequent storage in the field. The same
			geological team delivers the samples to Activation Laboratories or SGS Laboratories
			and receives an official receipt of delivery.
Audits or reviews		The results of any audits or reviews of sampling techniques and data.	None completed.

Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation	JORC Code explanation	Commentary
Mineral tenement		Type, reference name/number, location and ownership including agreements or	Metals Australia Limited, via its acquisition of Quebec Lithium Limited, is the 100%
and land tenure		material issues with third parties such as joint ventures, partnerships, overriding	owner of the Lac Rainy Nord Graphite Project, the Lac La Motte Lithium Project, the
status		royalties, native title interests, historical sites, wilderness or national park and	Lac La Corne Lithium Project and the Lacourciere-Darveau Lithium Project pursuant to
		environmental settings.	four separate binding acquisition agreements.
		The security of the tenure held at the time of reporting along with any known
		impediments to obtaining a licence to operate in the area.	There are no other material issues affecting the tenements.
			Quebec Lithium Limited, a wholly owned subsidiary of Metals Australia, is the 100% of
			the abovementioned graphite and lithium projects and ownership of the individual CDC
			claims is currently being transferred to Quebec Lithium Limited.
			All tenements are in good standing and have been legally validated by a Quebec
			lawyer specialising in the field.
Exploration done		Acknowledgment and appraisal of exploration by other parties.	No modern exploration has been conducted.
by other parties
			Government mapping records multiple lithium bearing pegmatites within the project
			areas but no other data is available.
Geology		Deposit type, geological setting and style of mineralisation.	Lacourciere-Darveau Lithium Project
			The Propertyarea isprimarilyunderlain byrocks of the Late Archean Pontiac

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Criteria	JORC Code explanation	Commentary
		Subprovince. Underlying the majority of the Property is the Decelles Reservoir
		Batholith, which comprises granite, pegmatite, tonalite, and granodiorite. The
		northwestern edge region of the Property is underlain by monzodiorites of the Lac
		Fréchette pluton. Both of these units intrude into wacke, mudrock and schists of the
		Pontiac group, which strike approximately 255° and dip at 40°. The Pontiac group also
		locally exhibits basalts and ultramafic rocks, namely in the northeastern portion of the
		claim block. Amphibolite dikes and ultramafic intrusions have been identified
		throughout the Lac Fréchette pluton and the rocks of the Pontiac group. (GM 14918)
		The pegmatite dike at the Wells-Lacourciere occurrence outcrops in a large hill of
		granite on the west side of the road passing by the occurrence. It strikes 310° and dips
		steeply to the north. It is traceable along surface for a distance of about 600 metres,
		while its width varies from 8 to 15 metres.
		The distribution of the beryl and lithium deposits indicates mineralisation is the result of
		intrusive LCT pegmatite dykes, where spodumene crystals can reach up to 30cm in
		length and up to 15cm in diameter.
		Economic analysis of the lithium and beryllium potential has not yet been undertaken,
		despite the fact that the Ile du Refuge, Lac Simard and Wells-Lacourciere high-grade
		lithium deposits are located nearby.
		The lithium potential of this beryl occurrence and the associated LCT pegmatite outcrop
		is yet to be determined. The pegmatite has been mapped in a NNE trend and remains
		open along strike. Tantalum and niobium have been identified in the LCT pegmatite
		outcrop.
		Lac Rainy Nord Graphite Project
		The Lac Rainy Nord graphite project is located within 5 km of the following known and
		explored graphite projects:
		 Fermont – Site 7 and 9: 15.06% Cg over 1.5 m (sample RX- 5324; Site 7);
		11.83% Cg over 1.5 m (sample spline RX- 5328; Site 9); 9.96% Cg over 2.0 m
		(sample RX- 5332; Site 9); 25.37% Cg (grab samples RX- 5351; Site 9) and
		24.69% Cg (grab samples RX- 5353; Site 9).
		 Fermont – Site 11: 21.58% Cg over 1.5 m (RX- 5339); 11.39% Cg over 1.5 m
		(sample RX- 5341); 5.57% Cg over 1.5 m (sample RX- 5338); 13.90% Cg
		(sample RX- 5352). The size of graphite flakes is from 1 to 5 mm.
		 Fermont – Site 3, 5 and 6: 16.87% Cg (sample RX- 5347); 6.78% Cg (sample
		RX- 5349 - Site 5); 6.25% Cg (sample RX- 5317 - Site 3); 5.49% Cg to 1.5 m
		(sample RX – 5323 - Site 6). The size of graphite flakes is from 2 to 8 mm.
		 Permit 861: 22.27% Cg and 16.68% Cg (sample 2215 and 2214). In this
		stratigraphic horizon, the content ranges from 5% to 20% graphitic carbon and
		fine flake.

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Criteria	JORC Code explanation	Commentary
		 Lac Knife: 13.19% Cg (sample RX4560); 9.55% Cg over 2.5 m (sample
		RX4559). Graphite is very coarse flakes.
		The Lac Rainy Nord graphite project was first discovered in 1989 and has been subject
		to some exploration over that time, however previous exploration was not conducted in
		a systematic manner and was focused more on the iron potential of the region which
		has meant that the true mineralisation and potential of the Lac Rainy Nord graphite
		project has not been fully established.
		The Lac Rainy Nord graphite project is contiguous with the Lac Knife Graphite Deposit
		which is owned by Focus Graphite.
		The Lac Knife Graphite Deposit hosts a reported Measured and Indicated resource
		totalling 9,576,000 million tonnes grading 14.77% graphitic carbon together with
		Inferred resources of 3,102,000 tonnes grading 13.25% graphitic carbon.
		(Note: Inferred Resources are considered too geologically speculative to have mining
		and economic considerations applied to them and to be categorized as Mineral
		Reserves)
		The Feasibility Study completed by Met-Chem Canada Inc. (released on 8 August
		2014) on the Lac Knife Graphite Deposit indicates that the Lac Knife Graphite Deposit
		has the potential to become one of the lowest-cost, highest-margin producers of
		graphite in the world.
		Refer to http://www.focusgraphite.com/wp-content/uploads/largeReport/Lac-Knife-
		Feasibility-Study-Technical-Report-August-2014.pdf for further information in relation to
		the Feasibility Study at the Lac Knife graphite project.
		Graphite mineralisation is set in migmatized biotite-bearing quartz-feldspar gneiss
		belonging to the Nault Formation of the lower Proterozoic Gagnon Group.
		According to the Québec Ministry of Natural Resources, where this gneissic unit is
		sheared, brecciated and silicified, coarse graphite flakes and associated sulphide
		minerals make up 5% to 10% of the rock, with up to 20% or more in the more
		brecciated zones.
		Fuchsite and other iron-rich micas accompany the graphite and sulphide mineralisation
		in the more silicified horizons.
		Lac La Motte and Lac La Corne Lithium Projects
		The La Corne lithium project consists of two geographically separate but nearby
		properties referred to as the Lac La Motte and the Lac La Corne properties.
		Theproperties are located in the spodumene-rich Preissac-Lacorneplutonic complex -

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Criteria	JORC Code explanation	JORC Code explanation	Commentary
			the complex forming one of the best prospective areas for lithium mineralisation of the
			Abitibi Greenstone Belt - near Val d’Or, Quebec.
			The Quebec Lithium mine, and several other lithium deposits (see set of maps), are
			located within the Preissac-Lacorne plutonic complex. The Quebec Lithium mine,
			located in the northeast part of the region, contains reported measured and indicated
			resources of 29.3 Mt grading 1.19% Li2O and 20.9 Mt of inferred resources grading
			1.15% Li2O, respectively, according to a technical report by Canada Lithium filed on
			Sedar.com on June 8, 2011.
			The Lac La Motte property lies 25 kilometres northwest of Val d’Or and consists of one
			block of 100 mineral claims (application and pending application status) totaling
			approximately 57 km2. The Lac La Corne property lies 20 km north of Val d’Or and
			consists of one block of 90 claims (application status) covering approximately 52 km2.
			The region is dominated by quartz monzodiorite and metasomatized quartz diorite
			(tonalite) of the La Corne plutonic complex. A swarm of spodumene-rich granitic
			pegmatite dykes intrude fractures and small faults within the plutonic rocks. The
			pegmatite dykes are as much as 6 m thick and are generally crudely zoned, some
			having quartz cores and border zones of aplite. The granitic pegmatites are composed
			of quartz, albite and/or cleavelandite, K-feldspar, muscovite, with up to 5 to 25%
			spodumene.
Drill hole		A summary of all information material to the understanding of the exploration results	See tables and / or appendices attached to this report.
Information		including a tabulation of the following information for all Material drill holes:
		o easting and northing of the drill hole collar
		o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill
		hole collar
		o dip and azimuth of the hole
		o down hole length and interception depth
		o hole length.
		If the exclusion of this information is justified on the basis that the information is not
		Material and this exclusion does not detract from the understanding of the report, the
		Competent Person should clearly explain why this is the case.
Data aggregation		In reporting Exploration Results, weighting averaging techniques, maximum and/or	Intercepts are calculated on a per sample basis according to the results from the
methods		minimum grade truncations (eg cutting of high grades) and cut-off grades are usually	laboratory with no bottom cut-off grade and no top cut-off grades.
		Material and should be stated.
		Where aggregate intercepts incorporate short lengths of high grade results and longer	Short intervals of high grade that have a material impact on overall intersection are
		lengths of low grade results, the procedure used for such aggregation should be stated	highlighted separately.
		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	None reported.
		stated.
Relationship		These relationships are particularly important in the reporting of Exploration Results.	The relationship between true widths and the width of mineralised zones intersected in
between		If the geometry of the mineralisation with respect to the drill hole angle is known, its	trenching has not yet been determined due to lack of structural data (i.e. dip).
mineralisation		nature should be reported.
widths and		If it is not known and only the down hole lengths are reported, there should be a clear

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Criteria	JORC Code explanation	JORC Code explanation	Commentary
intercept lengths		statement to this effect (eg ‘down hole length, true width not known’).
Diagrams		Appropriate maps and sections (with scales) and tabulations of intercepts should be	None included.
		included for any significant discovery being reported These should include, but not be
		limited to aplan view of drill hole collar locations and appropriate sectional views.
Balanced		Where comprehensive reporting of all Exploration Results is not practicable,	Results for all sampling completed are listed in Appendix A attached to the body of this
reporting		representative reporting of both low and high grades and/or widths should be practiced	report.
		to avoid misleading reporting of Exploration Results.
Other substantive		Other exploration data, if meaningful and material, should be reported including (but not	All meaningful and material data is reported.
exploration data		limited to): geological observations; geophysical survey results; geochemical survey
		results; bulk samples – size and method of treatment; metallurgical test results; bulk
		density, groundwater, geotechnical and rock characteristics; potential deleterious or
		contaminating substances.
Further work		The nature and scale of planned further work (eg tests for lateral extensions or depth	Detailed geochemistry and geology mapping to determine trends of known mineralised
		extensions or large-scale step-out drilling).	zones and to delineate other Li and Ta anomalies.
		Diagrams clearly highlighting the areas of possible extensions, including the main
		geological interpretations and future drilling areas, provided this information is not	Further trenching to determine structural orientation of pegmatites.
		commercially sensitive.
			Drilling.

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