MINBOS RESOURCES LIMITED — Capital/Financing Update 2018

Mar 28, 2018

ASX Code: MNB PERTH OFFICE Level 1, 278 Stirling Hwy Claremont WA 6010 Australia T: +61 8 9476 4500 E: info@minbos.com W: www.minbos.com ABN: 93 141 175 493

29 March 2018

ASX ANNOUNCEMENT

MINBOS ENTERS OPTION TO PURCHASE RARE EARTHS PROJECT

Minbos Resources Limited ( Minbos ) advises that it has entered into an option with Tana Minerals Ltd ( Tana ) whereby Minbos can acquire 90% of the shares in MRE Mining (Mauritius) Limited ( MRE ). MRE’s sole asset is a wholly owned subsidiary in Madagascar which holds two exploration permits in central Madagascar covering 440 square kilometres.

Under the agreement Minbos has the exclusive right to acquire 90% of the shares in MRE.

Terms of the Exclusivity:

• $10k consideration for exclusivity;

• Minbos commits $250k to expenditure on drilling;

• $25k to extend the exclusivity post the drilling until completion of the transaction.

The transaction is conditional upon Minbos obtaining all the required regulatory and shareholder approvals, completing due diligence on the project and the renewal of the exploration permits.

As it stands, exploration permits are not currently being renewed by the relevant mining department in Madagascar. In light of this, completion of the transaction could take up to 12 months. As part of Minbos’ due diligence exercise, it intends to meet with the mining department in Madagascar to gain a better understanding of the likely timing and conditions that may attached to any renewal of the exploration permits.

In addition, during the exclusivity and due diligence period, Minbos will have the right to conduct exploration activities on the exploration permits. The project can therefore be advanced technically prior to completion occurring and also prior to the exploration permits being renewed.

Upon satisfaction or waiver of the conditions, Minbos may elect to proceed with the acquisition of a 90% interest in MRE in consideration for:

• 250 million shares issued upon the renewal of the permits;

• 250 million shares issued on the delineation of a JORC resource containing a minimum of 200,000t of contained Total Rare Earth Oxides (TREO) at a grade of not less than 3% (TREO), and

• 10% free carry to Definitive Feasibility Study at which point Tana must elect to contribute, dilute or sell its interest to Minbos at an agreed valuation.

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Due diligence activities have already commenced with a review and compilation of historical and site visit data in preparation for drill program planning confirming prospectivity for rare earths. Minbos expects that due diligence will take between 4 and 8 weeks.

Twenty-eight rockchip samples collected by Tana on the Ankazohambo prospect in 2010 returned TREO grades of between 0.14% and 40.8% with a median grade of 3.95% (Appendix 1). The results confirm earlier sampling conducted by the Kiev National University in 2008 and the German Federal Institute of Geology and Raw Materials (BGR) in the 1980’s.

“Rare Earth Elements are a necessary input for permanent magnets used in Electric Vehicles” said Minbos CEO Lindsay Reed. “It exciting to have the opportunity to acquire a project focussed on rare earths for clean cities” Mr Reed said.

Since terminating the merger of its Angolan phosphate interests with joint venture partner Petril Resources in October 2017, Minbos has been actively looking for other opportunities. Minbos continues to engage with Petril the Operator of the Cabinda Phosphate Project but advises that Petril has not yet appointed a manager or presented programs and budgets for approval.

Competent Person

The information in this announcement that relates to Exploration Results and Data Quality is based on, and fairly represents, information and supporting documentation prepared by Rebecca Morgan, who is a member of the Australian Institute of Geoscientists. Miss Morgan was previously a fulltime employee of Minbos (until February 2018) and is a consultant to Minbos. Miss Morgan has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity she 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’. Miss Morgan consents to the inclusion in this report of the matters based on her information in the form and context in which it appears.

For further information, please contact

Lindsay Reed Nick Day Chief Executive Officer Company Secretary l.reed@minbos.com n.day@minbos.com +61 8 6270 4610 +61 8 6270 4610

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About Minbos

Minbos Resources Limited ( ASX: MNB ) is an ASX-listed exploration and development company with interests in phosphate ore within the Cabinda Province of Angola and Rare Earth Elements in Madagascar.

The Company’s strategy is to specifically target the exploration and development of low cost mineral projects. For more information, visit www.minbos.com.

Appendix 1: Rockchip/ trench laboratory assay results

Prospect	Organisation	Year	Sample Type	TREO (%)	Sample No.
Ankazohambo	MMI	2010	Rockchip	3.88	ANK002
Ankazohambo	MMI	2010	Rockchip	27.39	ANK003
Ankazohambo	MMI	2010	Rockchip	11.82	ANK006
Ankazohambo	MMI	2010	Rockchip	5.20	ANK007
Ankazohambo	MMI	2010	Rockchip	3.12	ANK008
Ankazohambo	MMI	2010	Rockchip	2.62	ANK009
Ankazohambo	MMI	2010	Rockchip	1.98	ANK010
Ankazohambo	MMI	2010	Rockchip	4.86	ANK011
Ankazohambo	MMI	2010	Rockchip	2.25	ANK012
Ankazohambo	MMI	2010	Rockchip	0.14	ANK014
Ankazohambo	MMI	2010	Rockchip	8.30	ANK017
Ankazohambo	MMI	2010	Rockchip	7.42	ANK018
Ankazohambo	MMI	2010	Rockchip	7.23	ANK019
Ankazohambo	MMI	2010	Rockchip	6.61	ANK020
Ankazohambo	MMI	2010	Rockchip	8.35	ANK021
Ankazohambo	MMI	2010	Rockchip	5.60	ANK022
Ankazohambo	MMI	2010	Rockchip	4.63	ANK023
Ankazohambo	MMI	2010	Rockchip	4.01	ANK024
Ankazohambo	MMI	2010	Rockchip	40.81	ANK025
Ankazohambo	MMI	2010	Trench	1.07	ANKNT-005
Ankazohambo	MMI	2010	Trench	3.11	ANKNT-011
Ankazohambo	MMI	2010	Trench	2.28	ANKST-001
Ankazohambo	MMI	2010	Trench	2.99	ANKST-003
Ankazohambo	MMI	2010	Trench	4.50	ANKST-008
Ankazohambo	MMI	2010	Trench	0.99	ANKST-011
Ankazohambo	MMI	2010	Trench	0.81	ANKST-014
Ankazohambo	MMI	2010	Trench	0.43	ANKST-021
Ankazohambo	MMI	2010	Trench	0.89	ANKST-032
Ankazohambo	Steemson	2008	Rockchip	7.13	ANKAZ-1
Ankazohambo	Steemson	2008	Rockchip	0.36	ANKAZ-2
Ankazohambo	BGR	1984-1986	Rockchip	8.64	1-north
Ankazohambo	BGR	1984-1986	Rockchip	6.41	2-north
Ankazohambo	BGR	1984-1986	Rockchip	4.05	1-south
Ankazohambo	BGR	1984-1986	Rockchip	5.90	2-south
Ankazohambo	BGR	1984-1986	Rockchip	6.90	3-south
Ankazohambo	BGR	1984-1986	Rockchip	8.51	4-south
Ankazohambo	BGR	1984-1986	Rockchip	5.98	5-south
Ankazohambo	BGR	1984-1986	Rockchip	4.29	6-south

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Prospect	Organisation	Year	Sample Type	TREO (%)	Sample No.
Ankazohambo	BGR	1984-1986	Rockchip	3.04	7-south
Ankazohambo	BGR	1984-1986	Rockchip	5.53	8-south
Ankazohambo	BGR	1984-1986	Rockchip	4.91	9-south
Ankazohambo	BGR	1984-1986	Rockchip	3.93	10-south
Ankazohambo	BGR	1984-1986	Rockchip	4.81	11-south
Ankazohambo	BGR	1984-1986	Rockchip	5.24	12-south
Ankazohambo	BGR	1984-1986	Rockchip	5.07	13-south
Ankazohambo	BGR	1984-1986	Rockchip	7.39	14-south
Ankazohambo	BGR	1984-1986	Rockchip	3.35	15-south
Ankazohambo	BGR	1984-1986	Rockchip	10.14	R-4
Ankazohambo	BGR	1984-1986	Rockchip	12.49	R-6
Ankazohambo	OMNIS-OZG	1990-1991	Rockchip	5.86	1
Ankazohambo	OMNIS-OZG	1990-1991	UK	8.43	2
Ankazohambo	OMNIS-OZG	1990-1991	Rockchip	12.55	3
Ankazohambo	OMNIS-OZG	1990-1991	Rockchip	4.83	4
Ankazohambo	OMNIS-OZG	1990-1991	Laterite	7.56	5
Ankazohambo	Kiev University	2008	Rockchip	2.28	9
Ankazohambo	Kiev University	2008	Rockchip	0.4	10
Ankazohambo	Kiev University	2008	Rockchip	8.16	11
Ankazohambo	Kiev University	2008	Laterite	1.16	12
Ankazohambo	Kiev University	2008	Laterite	1.24	13
Ankazohambo	Kiev University	2008	Laterite	0.2	14
Ankazohambo	Kiev University	2008	Laterite	1.02	15
Lesada	MMI	2010	Rockchip	11.42	LES-002
Marovoalavo	MMI	2010	Rockchip	0.34	MAR002
Marovoalavo	MMI	2010	Rockchip	3.01	MAR005
Marovoalavo	MMI	2010	Rockchip	0.52	MAR010
Marovoalavo	MMI	2010	Trench	0.25	MARO-007
Marovoalavo	MMI	2010	Trench	0.36	MARO-025
Marovoalavo	MMI	2010	Trench	0.71	MARO-037
Marovoalavo	MMI	2010	Trench	0.62	MARO-044
Marovoalavo	MMI	2010	Trench	0.41	MARO-056
Marovoalavo	MMI	2010	Trench	0.87	MARO-069
Marovoalavo	MMI	2010	Trench	0.53	MAR0065
Marovoalavo	MMI	2010	Trench	0.23	MAR0067
Marovoalavo	Steemson	2008	Rockchip	3.87	MAROV-1
Marovoalavo	Steemson	2008	Rockchip	0.09	MAROV-2
Marovoalavo	Steemson	2008	Rockchip	0.09	MAROV-2-01
Marovoalavo	Kiev University	2008	Rockchip	6.68	2
Marovoalavo	Kiev University	2008	Rockchip	0.93	3
Marovoalavo	Kiev University	2008	Sand	0.19	8
Marovoalavo	Kiev University	2008	Laterite	0.80	18
Marovoalavo	Kiev University	2008	Laterite	2.62	19
Unknown	Steemson	2008	Rockchip	0.02	GBW7411
Unknown	Steemson	2008	Rockchip	0.01	GBW7405
Vohiniariana	MMI	2010	Soil	0.25	VOH-002
Vohiniariana	MMI	2010	Rockchip	2.42	VOH-004
Vohiniariana	MMI	2010	Rockchip	0.22	VOH-008
Vohiniariana	MMI	2010	Rockchip	1.07	VOH-009

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Prospect	Organisation	Year	Sample Type	TREO (%)	Sample No.
Vohiniariana	MMI	2010	Rockchip	1.27	VOH-011
Vohiniariana	MMI	2010	Rockchip	0.26	VOH-013
Vohiniariana	OMNIS-OZG	1990-1991	Laterite	1.59	6
Vohiniariana	OMNIS-OZG	1990-1991	Laterite	1.35	7
Vohiniariana	OMNIS-OZG	1990-1991	Laterite	8.56	8
Vohiniariana	OMNIS-OZG	1990-1991	Laterite	2.84	9
Vohiniariana	Kiev University	2008	Laterite	0.28	5
Vohiniariana	Kiev University	2008	Laterite	4.56	17

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Appendix 2: Ambato Figures

Figure 1: Location map of the various prospects of the Ambato Project and exploration permit outlines

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Figure 2: Overview of rock-chip sample and trench locations at the various prospect areas (clockwise from top left Ankazohambo, Marovoalavo, Vohiniariana and Lesada)

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Marovoalavo
Ankazohambo
North Ifasina
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Appendix 3: JORC Code, 2012 Edition – Table 1

AMBATO RARE EARTH PROJECT

Section 1 Sampling Techniques and Data

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Criteria JORC Code explanation Commentary
Sampling  Nature and quality of sampling (eg Sampling at Ambato includes cut-channels from
techniques trenches, samples from pits, stream sediment
cut channels, random chips, or
specific specialised industry sampling, and rock-chip sampling from outcrop.
standard measurement tools
No detailed information is known regarding the
appropriate to the minerals under
sampling techniques of the historical sampling
investigation, such as down hole
gamma sondes, or handheld XRF data.
instruments, etc). These examples
MMI Sampling
should not be taken as limiting the
broad meaning of sampling. Historical trenches were cleaned to remove
vegetation and reveal fresher material. Each
 Include reference to measures taken
trench was then marked out in two-metre
to ensure sample representivity and
intervals and sub-horizontal channel samples
the appropriate calibration of any
were collected from the northern walls. Each
measurement tools or systems used.
sample weighed approximately 2 to 3 kg.
 Aspects of the determination of
Rockchip samples were collected from outcrops
mineralisation that are Material to
believed to contain rare earth mineralisation
the Public Report. In cases where
(based on field observations).
‘industry standard’ work has been
done this would be relatively simple
All samples were analysed using a handheld
(eg ‘reverse circulation drilling was
XRF (Innov-X X-50 portable XRF unit).
used to obtain 1 m samples from
which 3 kg was pulverised to Samples were hand-crushed into a powder and
produce a 30 g charge for fire placed into a small plastic container with the
assay’). In other cases more
bottom cut out and sealed with a thin layer of
explanation may be required, such
low-density polyethylene (LDPE) food wrap to
as where there is coarse gold that
allow uncontaminated contact with the XRF
has inherent sampling problems.
Unusual commodities or detector.
mineralisation types (eg submarine
The handheld XRF was from CSA global,
nodules) may warrant disclosure of
detailed information. calibrated in Perth, and calibrated in the field
using standards.
Drilling  Drill type (eg core, reverse Not applicable – no drilling has been completed
techniques circulation, open-hole hammer, at Amabato at this stage.
rotary air blast, auger, Bangka,
sonic, etc) and details (eg core
diameter, triple or standard tube,
depth of diamond tails, face-
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Criteria	JORC Code explanation	Commentary
	sampling bit or other type, whether core is oriented and if so, by what method, etc).
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results 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 to preferential loss/gain of fine/coarse material.	Not applicable.
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged.	Not applicable.
Sub-sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-samplingstages to	No sub-sampling was carried out.

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Criteria JORC Code explanation Commentary
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.
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Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary
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 assay data and laboratory tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. 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.		Information regarding the assaying methodology and laboratory procedures of the historical sampling data has not been sighted at this stage. Kiev University 2008 Sampling Examination of the selected 14 samples was carried out in the Central Laboratory of «Kievgeologiya» Public Utility (Kiev-city), accredited by the Ministry for Environmental Conservation of Ukraine (Certificate № 060/2006 dated 25.12.2006), with application of both a spectral method that ensured semiquantitative determination of 47 elements (including scandium, cerium, and lanthanum), and a chemical method that provided quantitative determination of the content (sum) of rare-earth elements. MMI Sampling All of the samples were analysed by portable XRF and selected samples were then submitted to ALS Minerals in Perth (ALS), Australia for ICP-MS and ICP-MES analysis. Samples submitted to ALS Minerals in Perth, Australia were weighed (ALS code WEI-21), crushed to > 70 % minus 6 mm (ALS code CRU- 21) and pulverised (ALS code PUL-21) prior to analysis. Analysis involved a combination of fusion / Induced Coupled Plasma - Mass Spectrometry (ICP-MS) (ALS code ME-MS81h)

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Criteria	JORC Code explanation	Commentary
		for Ce, Dy, Er, Eu, Gd, Hf, Ho, La, Lu, Nb, Nd, Pr, Rb, Sm, Sn, Ta, Tb, Th, Tm, U, W, Y, Yb and Zr (24 elements) and four acid / Induced Coupled Plasma - Atomic Emission Spectroscopy (ICP-AES) (ALS code ME-ICP61) for Sc. Handheld XRF units can only detect four rare earth elements (La, Ce, Pr and Nd) and it is not possible to determine the total REE content (TREO). However, considering La, Ce, Pr and Nd typically make up the largest proportion of TREO grades, handheld XRF results are suitable for giving indicative results to determine the presence of REE mineralisation. No standards, blanks, duplicates, or external laboratory checks were submitted.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data.	The presence of rare earth mineralisation (as reported by earlier work) was confirmed by follow up work carried out by other groups in 2008 and between 2010 to 2013. Both the 2008 and 2010 to 2013 programs included the resampling of historical trenches. Whilst the 2008 and 2010 to 2013 results can not be directly compared to the historical results due to the lack of co-ordinates of the historical samples and the large number of trenches at each project area (i.e. it is not possible to know which trench results to compare with which), the results do confirm the presence and tenor of rare earth mineralisation. No twin holes have been drilled. Historical data has been sourced from tabulated results within various reports. Assay results for the 2008 samples collected by Steemson and submitted for laboratory analysis have been provided to Minbos in the laboratory generated Excel Spreadsheet. Results from the MMI samplinghas beenprovided to Minbos in

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Criteria	JORC Code explanation	Commentary
		both excel spreadsheet format and laboratory certificates in PDF format. Laboratory assay results were converted from ppm into oxides using the following oxide conversion factors: Oxide Conversion Factor La2O3 1.1728 CeO2 1.2284 Pr6O11 1.2082 Nd2O3 1.1664 Sm2O3 1.1596 Eu2O3 1.1579 Gd2O3 1.1526 Tb4O7 1.1762 Dy2O3 1.1477 Ho2O3 1.1455 Er2O3 1.1435 Tm2O3 1.1421 Yb2O3 1.1387 Lu2O3 1.1371 Y2O3 1.2699
Location of data points	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control.	The co-ordinates of historical samples are not known. The approximate location of historical sample locations has been digitised (where possible) from figures sourced from various reports. Historical trenches can easily be seen in Google Earth and the location of trenches and shafts at Marovoalavo and Ankazohambo have been confirmed by the competent person during a site visit. MMI 2010- to 2013 sample locations were recorded in UTM grid Zone 38 South using a handheld Garmin GPS. No topography dtm’s have been generated/obtained at this stage.

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Criteria JORC Code explanation Commentary
The location of data points using a handheld
GPS is considered adequate for this stage of
work.
Data spacing  Data spacing for reporting of Rock chip samples have been collected from
and Exploration Results. outcrops, which occur at irregular spacings.
distribution
 Whether the data spacing and Trench samples have been collected from
distribution is sufficient to establish trenches located at irregular intervals excavated
the degree of geological and grade across strike to the interpreted deposit
continuity appropriate for the Mineral geometry.
Resource and Ore Reserve
estimation procedure(s) and No Mineral Resources or Ore Reserves are
classifications applied. being declared.
 Whether sample compositing has No sample compositing has been applied.
been applied.
Orientation of  Whether the orientation of sampling Rockchip samples were collected from outcrops
data in relation achieves unbiased sampling of containing rare earth mineralisation (based on
to geological possible structures and the extent to field observations) and is therefore biased
structure which this is known, considering the sampling.
deposit type.
Trenches were generally excavated
 If the relationship between the perpendicular to the interpreted strike of REE
drilling orientation and the mineralisation and therefore provides unbiased
orientation of key mineralised
sampling across the width of the interpreted
structures is considered to have
deposit extents.
introduced a sampling bias, this
should be assessed and reported if No drilling has taken place.
material.
Sample  The measures taken to ensure Details regarding sample security during the
security sample security. historical exploration programs is not known.
Samples were secured in a local garage
warehouse and delivered by vehicle to the ALS
preparation lab in Antananarivo and shipped to
ALS in Perth for Assay.
Audits or  The results of any audits or reviews A desktop study review & site visit of Ambato
reviews of sampling techniques and data. Project was completed by Greg Steemson in
2008, which involved a site visit and the
collection of a small number of rock-chip
samples. Steemson confirmed the presence of
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Criteria JORC Code explanation Commentary
rare earth mineralisation at Ambato and that
further exploration work was warranted.
An independent geologist report was completed
by Vato Consulting in 2015, which involved a
site visit and a review of all available data. In
Vato’s opinion, the Ambato Project has technical
merit, is very prospective and has the potential
to host one or more significant grade and
tonnage REE deposits, subject to the completion
of systematic and successful exploration
activities.
The competent person for this announcement
undertook a site visit in December 2016 followed
by a review of all available data. The competent
person has verified the presence of rare earth
mineralisation at Amabato and is satisfied that
following a review of all available historical data
that there is sufficient data to warrant additional
work at Ambato.
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Section 2 Reporting of Exploration Results

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Criteria JORC Code explanation Commentary
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Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary
Mineral tenement and land tenure status	Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	The Ambato Project area is covered by 2 exploration permits (10868 and 12013). There is currently a moratorium over all permit approvals/ renewals in Madagascar, and as such the PR’s held by MMI have expired and are awaiting renewal. There are no joint ventures, royalties, national parks, or any known native title interests, historical sites or environmental concerns associated with the tenements or tenement areas. It is understood that the Bureau de Cadastre Minier de Madagascar (BCMM) will not grant any permit renewals prior to the 2018 Madagascar election, which is scheduled to be held in October or November 2018.

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Criteria JORC Code explanation Commentary
Exploration  Acknowledgment and appraisal of The Ambato project area has been subject to a
done by other exploration by other parties. number of studies by various groups (see
parties Appendix 4 for a summary of known exploration
activities undertaken across the Ambato area).
Exploration undertaken includes geological
observations, geological mapping, stream
sediment sampling, trenching, pitting, channel
sampling, and radiometric surveying.
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Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary	Criteria JORC Code explanation Commentary
Exploration done by other parties Acknowledgment and appraisal of exploration by other parties. The Ambato project area has been subject to a number of studies by various groups (see Appendix 4 for a summary of known exploration activities undertaken across the Ambato area). Exploration undertaken includes geological observations, geological mapping, stream sediment sampling, trenching, pitting, channel sampling, and radiometric surveying.
Geology	Deposit type, geological setting and style of mineralisation.	The Ambato Project is located within the Proterozoic Itremo Group which consists of quartzites, dolomitic marbles, and micaceous schists intruded by rocks of the Neoproterocoiz Imorona-Itsindro and Ambalavao Suites including; calc-alkaline granites (+microcline+oligoclase), syenites, gabbros, norites, and alkaline granites (+microcline). Deformation in the Itremo Group sediments is interpreted to consist of two phases - an early phase of nappe-forming layer-parallel deformation resulted in the development of regional scale layer-parallel folds, and a second phase that produced the dominant north trending structural grain observed in the Itremo Group. Granite and syenite intrusions of the Neoproterocoiz Imorona-Itsindro and Ambalavao Suites were emplaced between 570 and 520 MA, and are generally controlled by NNW-SSE trending faults. Rare earth element mineralisation is associated with the emplacement of the granite and syenite intrusions. REE mineralisation occurs as bastnaesite, ± monazite, and ± chevkinite, found in structures, quartz ± carbonate veins, ubiquitous distribution within altered syenites, and possibly as stockwork mineralisation. Some interpretations have proposed that REE mineralisation at Ambato is part of a larger carbonatite system even though carbonatites have not been previously identified at Ambato.

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Criteria	JORC Code explanation	Commentary
		The Ambato Project consists of seven (7) prospects; Marovoalavo, Ankazohambo, Andoharano, Sahafa, Lesada, Vohiniariana, and Sambalahy.
Drill hole Information	A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: oeasting and northing of the drill hole collar oelevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar odip and azimuth of the hole odown hole length and interception depth ohole 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.	Not applicable.
Data aggregation methods	In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. 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.	No averaging techniques have been applied to the reporting of exploration results. Metal equivalents have not been used. Rare earth grades have been reported in this announcement as TREO% (Total Rare Earth Oxides). TREO is defined as La2O3+ CeO2+ Pr6O11+ Nd2O3+ Sm2O3+ Eu2O3+ Gd2O3+ Tb4O7+ Dy2O3+ Ho2O3+ Er2O3+ Tm2O3+ Yb2O3+ Lu2O3+ Y2O3.

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Criteria	JORC Code explanation	Commentary
	The assumptions used for any reporting of metal equivalent values should be clearly stated.
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. 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’).	Rockchip sample results represent point values only (i.e. no widths are being reported or assumed). Trench samples were collected at 2m intervals across the width of the trench. Trench samples results have been reported to demonstrate the presence of rare earth mineralisation only. Until further work is undertaken, the width of mineralisation is not known.
Diagrams	Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.	Please refer Appendix 2 for relevant diagrams.
Balanced reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	All known analytical assay results have been reported in Appendix 1.
Other substantive exploration data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious	All known exploration activities have been summarised in Appendix 4. All available rockchip/trench analytical sample results are reported in Appendix 1. Not all historical exploration work can be located. For example, results of thin sections, mineralogical samples, and bulk metallurgical samplingknown to have been collected by

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Criteria	JORC Code explanation	Commentary
	or contaminating substances.	OMNIS-OZG has not been sourced at this stage. Radiometric measurements collected by Kiev University and RTI delineated a broad elongated positive radiometric anomaly 900 to 1,200 m long and 200 to 300 m wide at Marovoalavo. At Ankazohambo, results of the 1991 radiometric survey suggest the presence of two (2) sub- vertical pipes rather than a continuous mineralisation zone between the Northern and Southern Trenches. Radiometric survey results collected by RTI in 2010 confirm the presence of radiometric highs and/ or anomalies at all the prospects visited, but the data distribution and data density are insufficient to contour with accuracy. Thorium is often associated with REE deposits and can be potentially deleterious. Results sighted to date do not indicate the presence of elevated thorium levels at Amabto. Thorium levels will be assessed as part of future exploration works. A representative rockchip sample collected by the competent person has been sent to ANSTO Minerals Laboratory in Sydney for analysis. Results will be reported by Minbos once finalised and reviewed.
Further work	The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	Minbos plans to undertake the following exploration work:  Maiden drilling program of 600 to 1,000 m of diamond drilling at Ankazohambo.  Rock-chip sampling and mapping at the other prospect areas.  Metallurgical testwork.

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Appendix 4: Summary of Historical Exploration

Year	Work Undertaken	Company/Group
1912 to 1922	Study of bastnaesite derived from the Ambato property	Mr. A. Lacroix
1950 to 1953	Explored the Ambatofinandrahana region and reportedly developed	CEA
	the Andakatany mine, located approximately 17 km east of the
	Ambato property
1955 to 1959	Operated the Andakatany and Ifasina Nord mines, the latter of	CGM
	which occurs within the Ambato property
1958 to 1960	Discovered the Ankazohambo prospect (historically known as	BUMIFOM
	Begabona)
1962 to 1968	Geological mapping of the Ambatofinandrahana region at a scale of	Service Géologique
	1:100,000
1966	Service Géologique reported that 30 t of bastnaesite had been	Unknown
	exploited from the Ambatofinandrahana region
1966 to 1971	Exploited 575 t of bastnaesite from the Ambatofinandrahana region	Le Quartz Company CGM
1967 to 1968	Exploration of the Ambatofinandrahana region including geological	BRGM
	observations, geological mapping, stream sediment sampling,
	trenching, pitting, channel sampling, and radiometric surveying
	including 6 trenches at Ankazohambo.
1977 to 1978	Exploration of the Ambatofinandrahana region and reportedly	OMNIS
	attempted a drillhole at an unknown location which was abandoned
	at a depth of 18 m due to engineering problems.
1984 to 1986	Geochemical sampling and ground magnetic surveys at	OMNIS
	Ankazohambo and Marovoalavo.
		BGR
1990 to 1991	Geochemical sampling and ground radiometric surveying at	OMNIS
	Ankazohambo, Marovoalavo, Vohiniariana, and Andoharano. Five
	(5) samples collected at Ankazohambo, 5 at Marovoalavo, and 4 at	OZG
	Vohiniariana. Three (3) trenches and numerous pits were excavated
	at Marovoalavo.
2008	Evaluation of REE mineralisation of Ambatofinandrahana region	Kiev National University
	including a review of historical work, limited laboratory research and	Department of Geology
	a short field visit, which entailed geological observations,	of Mineral Deposits
	radiometric surveying and the collection of rock samples. Seven (7)

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Year	Work Undertaken	Company/Group
	samples were collected at Ankazohambo, 5 at Marovoalavo, and 2
	at Vohiniariana.
2008	Study on the geochemical control of monazite and bastnaesite	Geological Survey,
	deposits in the Ambatofindrahana area. Work included 700 ICP-AES	Ministry of Energy and
	whole rock analyses, 600 ICP-MS whole rock analyses, and 20 thin	Mines, Madagascar
	sections.
2008	Desktop study review & site visit of Ambato Project	Greg Steemson
2009	PhD thesis on the mineralisation in rare earth related syenites and	Vololonirina Rasoamalala
	granites of Ambatofinandrahana
2010	A radar imagery interpretation of radar data collected in 2004. A site	Radar Technologies
	visit in 2010 included geological observations and radiometric	International
	measurements using a Radiation Solutions RS-125 hand-held
	spectrometer;
2010 to 2013	Geological mapping, rock-chip sampling, re-sampling of some of the	MMI
	historical trenches, and the collection of metallurgical samples.
	Twenty-six (26) rock-chip samples collected at Ankazohambo, 10 at
	Marovoalavo, 13 at Vohiniariana, and 3 at Lesada.
2014	Paper published “Geology of bastnaesite and monazite	Madagascar Geol Surv
	mineralisation in the Ambatofinandrahana area, central part of	University of Toulouse,
	Madagascar: An overview”	University of Lorraine

BGRM: Bureau of Geological Research Ministry (BGRM), CEA: French Commissariat d'Energie Atomique CGM:Compagnie Générale des Mines de Madagascar BUMIFOM: Bureau Minier de la France d'Outre-Mer OZG: Soviet company Obidinenie Zarubezh Geologia BGR: German Bundesanstalt Geowissenchaften und Rohstoffe OMNIS:Office des Mines Nationales et des Industries Stratégiques