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MINERAL COMMODITIES LTD Interim / Quarterly Report 2017

Oct 22, 2017

65371_rns_2017-10-22_36a0906b-b425-4336-ab2f-fc81660878f1.pdf

Interim / Quarterly Report

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Mineral Commodities Ltd ACN 008 478 653 ABN 39 008 478 653

Quarterly Activities Report

For the period ended 30 September 2017

40 Murray Road North, Welshpool WA 6106, Australia PO Box 235, Welshpool DC WA 6986, Australia Telephone: 61 8 6253 1100 Facsimile: 61 8 9258 3601 Email:[email protected] Web: www.mineralcommodities.com

Quarter ended Quarter ended
Quarter ended		 Year to Date Year to Date
Production Summary
30-Sept-17 30-Jun-17 30-Sept-16 30-Sept-17 30-Sept-16
Mining
Tonnes 514,910 511,114 370,745 1,527,367 1,270,174
Grade 28.35% 23.12% 45.34% 27.18% 50.07%
- Garnet 20.76% 17.15% 27.39% 19.86% 31.27%
- Ilmenite 5.61% 4.01% 14.39% 5.27% 14.62%
- Zircon 1.03% 0.91% 2.66% 1.07% 3.18%
- Rutile 0.49% 0.54% 0.57% 0.51% 0.65%
- Leucoxene 0.46% 0.51% 0.33% 0.47% 0.35%
GSP / SCP Production &
Processing
Tonnes processed 237,617 183,164 176,103 596,988 457,388
Tonnes produced
- Garnet concentrate 138,775 87,728 64,994 284,663 208,946
- Ilmenite concentrate 33,642 56,253 62,803 173,066 117,137
- Zircon/Rutile concentrate 5,496 5,462 7,450 17,170 26,096
zircon in concentrate 69.65% 70.20% 79.06% 70.87% 73.08%
rutile in concentrate 19.14% 17.49% 14.11% 17.67% 12.96%
Sales (wmt)
- Zircon/Rutile concentrate 5,264 6,468 7,980 18,308 28,832
- Ilmenite concentrate 55,000 112,987 0 227,097 2,002
- Garnet concentrate 81,226 81,368 50,000 162,762 50,000
Highlights Corporate and Cash
 Record quarter of throughput performance across all processing
metrics since commencement of operations.
 Binding Term Sheet for the acquisition of a 51% initial interest in
the advanced high grade Munglinup Graphite Project.
 Opening of an exploration office in Tehran, Iran to pursue the
acquisition, exploration, development and operation of Precious
and Base Metal projects within Iran.		 Securities:_405 million shares, 6 million options and
6.95 million performance rights.
Cash:_Cash as at 30 September 2017 of US$8.71
million, plus US$8.70 million in trade and other
receivables.
Debt: Borrowings as at 30 September 2017 of
US$4.6 million.

For enquiries regarding this report please contact: Mineral Commodities Ltd Email: [email protected] | Ph: +61 8 6253 1100

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SAFETY, ENVIRONMENT AND COMMUNITY

There were no Lost Time Injuries (“LTI”) during the quarter, with the Company continuing its exemplary performance in occupational health and safety, with one LTI incurred for in-excess of 2.2 million man hours worked since operations commenced in late 2013.

The Company previously disclosed the proposed changes to the Broad-Based Black Socio-Economic Empowerment Charter for the South African Mining and Minerals Industry, 2017 (“2017 Mining Charter”), as announced by the Department of Mineral Resources and the Minister for Mineral Resources, Mr Mosebenzi Zwane, on 15 June 2017.

South Africa’s Chamber of Mines had previously sought an urgent interdict to prevent the implementation of the 2017 Mining Charter, which was to be heard in the High Court on 14 and 15 September 2017. On 13 September 2017, it was announced that the hearing for the interdict was not to proceed as the Minister had agreed in writing that the 2017 Mining Charter would not be implemented until its review was heard, which is now scheduled for December 13 and 14 before a full panel of judges.

The Company maintained its strong commitment to social development during the quarter and continued with its various initiatives during the period.

These initiatives included the commencement of the Nuwerus project which provides for the construction and fitout of a new computer classroom at a cost of approximately Rand 600,000. The project will be completed in October 2017. In addition, a bursary student sponsored by the Company graduated during the quarter with a BA Science with Honours. The student is now employed full-time as an intern with the Company.

The Company, through its Small Medium Micro Enterprises (“SMME”) development program, sponsored the establishment of a community based enterprise and purchase of equipment for the embroidery of all the Company’s employee’s personal protective equipment. In addition, the Company also continues to sponsor full-time Mathematics and English teachers at various local primary and secondary schools.

TORMIN – OPERATIONAL PERFORMANCE

The above budget tonnage performance of the mining operations continued into the third quarter of 2017.

Run of Mine (“ROM”) production of 514,910 tonnes during the September 2017 quarter was achieved, versus budget of 438,827 tonnes and the previous quarter’s 511,114 tonnes. ROM ore grading 28.35% Valuable Heavy Minerals (“VHM”) was mined for the quarter, consisting of a garnet grade 20.76%, ilmenite grade 5.61%, zircon grade 1.03% and rutile grade 0.49%.

Mining cost per tonne of ore mined for quarter of US$1.43/t was well below budget and significantly improved on the March 2017 quarter’s US$2.25/t and the June 2017 quarter’s US$2.11/t, reflecting increased mobile fleet efficiencies.

The Company is pleased to be able to report the following key processing metrics, which are a record since commencement of operations:

  • Highest quarterly Primary Beach Concentrator (“PBC”) feed total – 514,672 tonnes, beating the prior record set in the June 2017 quarter.

  • Highest quarterly Heavy Mineral Concentrate (“HMC”) produced – 197,267 tonnes, beating the record set in the September 2016 quarter by 21.6%. This result reflects the significant improvements in

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Primary Beach Concentrator / Tailings Scavenger Plant (“PBC/TSP”) recoveries over and above increased throughput rate improvements.

  • PBC/TSP recovery rates of every mineral (zircon, rutile, garnet and ilmenite) had their highest quarterly performance in the quarter.

  • Highest quarterly Garnet Stripping Plant (“GSP”) feed total – 237,617 tonnes, beating the prior record set in the June 2017 quarter by 29.7%.

  • Highest quarterly gross final concentrate production – 178,936 tonnes, beating the prior record set in the June 2017 quarter by 18.9%, driven largely by garnet concentrate production.

  • Highest quarterly net final concentrate production – 123,548 tonnes, beating the prior record set in the June 2017 quarter by 36.9%, again driven largely by garnet concentrate production.

Quarterly processing of ROM production through the PBC circuit produced 197,267 tonnes of HMC, well above the budgeted 119,454 tonnes and the prior quarter’s 108,231 tonnes, due to record throughput and recoveries across all minerals in the quarter. Emphasis by management on PBC/TSP throughput rates, maintenance and other operating parameters has resulted in a significant improvement in VHM recoveries in the September quarter.

The GSP processed a record throughput of 237,617 tonnes in the September quarter, which was significantly above budget of 119,454 tonnes and the previous quarter’s processing of 183,164 tonnes.

Due to low zircon and rutile feed grades, non-magnetic zircon/rutile concentrate production for the quarter was 5,496 tonnes, verses a budget of 7,228 tonnes and a previous quarter of 5,462 tonnes. Contained zircon in the concentrate of 69.65% was above budget of 69.16%, whilst rutile was also above budget at 19.14% contained rutile in concentrate.

For the September quarter, gross ilmenite concentrate production was 33,642 tonnes versus a budget of 37,785 tonnes, and gross garnet production was 138,775 tonnes versus a budget of 40,366 tonnes.

During the quarter, the Company re-treated 53,297 tonnes of previously stockpiled garnet concentrate to extract excess zircon, to produce a medium grade ilmenite concentrate and to upgrade the garnet concentrate grade. The Company also re-treated 2,091 tonnes of previously stockpiled medium grade ilmenite to extract zircon and garnet, and to upgrade the final ilmenite product.

Further process improvement initiatives are in place to improve throughput and recoveries for the December 2017 quarter. A focus will now be placed by management on improving recoveries in the Garnet Stripping Plant / Secondary Concentrator Plant (“GSP/SCP”) plant.

The amphibious excavator was commissioned towards the latter part of the month of September with modifications to the suction of the pump cutter head to limit rock ingress. The machine worked for three continuous days dredging materials in the low-tide surf zone. The Company will now progress to mine previously inaccessible unmined high-grade resource zones.

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Tormin Costs

The following is a summary of unit costs and revenue:

SUMMARY OF UNIT COSTS Sept-17 Jun-17 Sept-16 Sept-17 Sept-16
& REVENUE Quarter
ended		 Quarter Quarter
ended		 Year to
Date		 Year to
ended Date
Unit production cash costs per tonne of
concentrate produced (US$/dmt)		 24.95 30.16 26.86 28.35 28.73
Unit cost of goods sold per tonne of
concentrate sold (US$/wmt)(1)		 66.21 71.17 85.76 72.97 144.99
Unit revenue per tonne of concentrate sold
(US$/wmt)		 104.66 117.23 114.66 113.19 226.20
Revenue to Cost of Goods Sold Ratio 1.58 1.65 1.34 1.55 1.56

Note 1:- Cost of goods sold includes production cash costs, product handling, transport and selling costs, royalties, stock movements, and depreciation and amortisation. Excludes corporate and financing costs.

Production cash costs per tonne of zircon/rutile, ilmenite and garnet concentrates produced for the quarter was US$24.95/t, compared to a budgeted US$46.50/t and prior quarter’s US$30.16/t, with the Tormin mine increasing overall gross concentrate production whilst only slightly increasing its cash production expenditures above budget estimates.

Irrespective that the Tormin mine experienced lower mined grades and slightly increased overall cash expenditures, the unit production cash cost was lower due to increased concentrate production arising from higher plant utilisation and recoveries than that budgeted or achieved in the prior quarter.

Cost of goods sold (incorporating production cash costs, product handling, transport and selling costs, royalties, stock movements, and depreciation and amortisation) per tonne of concentrate was US$66.21/t for the quarter, compared to a budget of US$73.97/t and prior quarter’s US$71.17/t.

The lower unit cost of goods sold over the prior period is a reflection of the lower production cash costs and higher plant utilisation, recoveries and final concentrates produced.

Tormin Sales and Marketing

The Company continued to experience strong demand for its ilmenite concentrate due to a combination of the prior tightening of the global ilmenite supply chain as well as previous curtailing of domestic sulphate ilmenite production within China due to environmental and economic cost of production factors. This was further complimented by demand from India arising from Indian regulatory issues restricting in-country feedstock availability. In addition, increased demand for all downstream finished titanium products continued into the September 2017 quarter.

The Company is also seeing incremental quarter on quarter increases in sales pricing for its high grade nonmagnetic zircon/rutile concentrate.

Sales revenue for the September quarter was US$14.8 million, above the budgeted US$13.9 million, driven by higher ilmenite concentrate pricing and final garnet concentrate sales from the stockpile following execution of the Amended Garnet Offtake Agreement with GMA Group (“GMA”). This was partially offset by a delay in shipment of ilmenite concentrate and lower zircon/rutile non-magnetic concentrate sales as a consequence of lower zircon and rutile mined grades.

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The September quarter’s revenue of US$14.8 million was lower than the prior June quarter’s revenue of US$23.5 million revenue, due to an additional 55,000 tonne ilmenite shipment in the prior quarter and additional garnet concentrate revenue generated upon execution of the Amended Garnet Offtake Agreement with GMA in the prior quarter.

Tormin shipments/sales for the September quarter were 5,264 wet metric tonnes of zircon/ rutile concentrate, 55,000 wet metric tonnes of bulk ilmenite concentrate, 80,000 dry metric tonnes of garnet concentrate stockpiled on GMA’s behalf and 52,500 dry metric tonnes of final garnet concentrate sales from the stockpile to GMA.

Revenue per tonne of concentrate sold was US$105/t for the quarter, above the budgeted US$85/t and slightly less than the prior quarter’s US$117/t.

The improvement in unit revenue above budget was due to final sales to GMA from the stockpile as a consequence of the amended off-take agreement, and higher actual unit prices for zircon/rutile and ilmenite concentrates in comparison to budget.

The September quarter’s unit revenue of US$105/t was below the prior quarter’s US$117/t, due to 125,195 tonnes of final garnet concentrate stockpile sales to GMA being generated upon execution of the GMA Agreement in the June quarter, against 52,500 tonnes of final garnet concentrate sales for the current quarter.

Tormin Resource and Offshore/Onshore Prospecting Activities

The Company submitted the Section 102 Extended Mining Rights Amendment Application to include both the northern beaches and inland strand to the Department of Mineral Resources (“DMR”) Western Cape Region on 26 April 2017. The Company’s Section 102 mine expansion application is now in the Environmental Impact Assessment (“EIA”) phase. The processing area under application has been increased from the current submission of approximately 6 hectares to 64 hectares.

The final Scoping Report for the Section 102 mine expansion application was submitted to the DMR on the 12 June 2017, however there is a delay at the DMR in processing the report which the Company is trying to resolve. The Company is exploring all avenues to ensure the DMR acts within its required authority and responsibilities in this matter.

CORPORATE AND BUSINESS DEVELOPMENT

Munglinup Graphite Project

The Company was pleased to announce during the quarter that it had executed a binding Term Sheet with Gold Terrace Pty Ltd (“Gold Terrace”) to farm into the Munglinup Graphite Project (“Munglinup” or “the Project”). Key details of the transaction were released on 11 September 2017 with highlights as follows:

  • The Company executed a binding term sheet with Gold Terrace to earn up to 100% of the high grade Munglinup Graphite Project, with an initial majority position of 51% for a total upfront consideration of A$3.2 million in cash and 10 million ordinary shares in MRC.

  • The Project is located in Western Australia, a Tier 1 Global mining jurisdiction, 105km from Esperance and close to excellent local and regional infrastructure.

  • The Munglinup graphite deposit’s grade is in the top quartile for global flake graphite resources, with a high grade Measured and Indicated JORC compliant Mineral Resource of 3.625Mt at 15.3% graphite for 554,000 tonnes of contained graphite, with the deposit open at strike and depth.

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  • The Project has a fully granted mining lease valid to August 2031 and an adjoining exploration licence. The tenements are located in a fully gazetted mining reserve, with no native title or private land ownership issues.

  • Significant studies have been undertaken, including a feasibility study completed by Gwalia Consolidated Ltd in 1991 and a recent due diligence study by Battery Limits, a recognised graphite industry engineering leader.

  • The studies have indicated that the Project could be in the lowest cost operating quartile and in the highest grade quartile, as compared against global flake graphite deposits.

  • The Project has excellent coarse flake distribution, supported by the Gwalia study and recent petrographic analysis, which have assessed the graphite flake size distribution at 67% greater than 150µm, including 35% jumbo flake size greater than 300µm and 24% large flake size greater than 180µm.

  • Testwork has been undertaken, supporting excellent expandability characteristics of the graphite.

  • The Company will be uniquely placed to proceed with the development of the Munglinup Graphite Project when the acquisition transaction and relevant feasibility studies are finalised.

The Company expects to complete all conditions precedent and execute final legal documentation by the end of October 2017, and to release a preliminary economic assessment on the Project in early November 2017.

Please see Appendix 7 for further details of the Munglinup Graphite Project.

Iran

In accordance with its commodity and jurisdictional diversification strategy, the Company is pleased to announce that it has opened a fully operational and staffed office in Iran including the incorporation of an operational subsidiary company. The Company’s Iran investment will be headed by Mr Bahman Rashidi – an Iranian national who has had over 20 years’ extensive experience as a geologist working in Iran for major Iranian state mining companies as well as international mining houses such as Rio Tinto and Normandy Mining.

In excess of 27 different precious, base metal and industrial mineral projects have been identified and inspected as part of the Iranian business development strategy. The Company is well-advanced in securing joint-venture arrangements in at least six projects which offer existing production in precious metals and access to exceptional exploration targets in a world-class geological setting.

Iran is located in Tethyan Metallogenic Belt, one of the major resource - rich regions in the world.

Iran has an area of 1.6 million square kilometres, and has a well-established long history of mining and is ranked the world’s 15[th] most mineral rich country. Aside from the energy sector where Iran ranks 1[st] in the world in natural gas and 4[th] in oil reserves, Iran holds 7% of the world’s total minerals and proven reserves of metallic and non-metallic deposits estimated at 55 billion tonnes. Iran holds the world’s largest zinc reserves, the 9th largest copper reserves and 10[th] largest iron ore reserves. However, Iran’s mineral potential remains largely undeveloped due to previously imposed sanctions.

Iran has a world class established functioning infrastructure including an excellent network of highways, rail networks, port facilities along the Persian Gulf, and well distributed energy throughout the country including electricity and gas reticulation. The high level of education and training in Iran presents for an excellent workforce opportunity. The low cost key operating base inputs such as labour, power and fuel offer an overall substantial reduction in the operating cost base compared to other mining jurisdiction countries internationally.

The Iranian Government has pro-actively engaged in supporting foreign investment in the mining industry by initiatives including an updated Mines Act, which allows for a 100% foreign ownership. The Company has

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applied for the granting of an investment license under Iran’s Foreign Investment Promotion and Protection Act (“FIPPA”), which provides for guarantees on the Company’s foreign investment, the full repatriation of net income generated and certain taxation exceptions, benefits and or tax-free holidays.

The Company now has a clear expansion project delivery pipeline through the pending acquisition of the Munglinup Graphite Project, which offers near term project development and exposure to the current evolution of electric car manufacturing and renewable battery energy and production storage. Further, the Iranian business development strategy offers access to undeveloped world class mineral resources in a jurisdiction which is highly supportive of foreign investment and growth of its mining industry.

Cash and Debt

At 30 September 2017 the Company had US$8.71 million in cash on hand, an increase from the 30 June 2017 cash balance of US$6.94 million.

Trade and other receivables at 30 September 2017 were US$8.7 million, an increase from the 30 June 2017 balance of US$6.9 million.

Borrowings as at 30 September 2017 were US$4.6 million, a reduction of US$1.1 million from the 30 June 2017 borrowings of US$5.5 million.

On 28 August 2017, the Company announced an interim dividend of one-half an Australian cent per share for the June 2017 half year. Payment of the interim dividend, totally AU$2.0 million, was made on 12 October 2017.

The Company expects to continue with strong positive cash flow generation in the forthcoming quarter as it continues to realise the value of ilmenite concentrate shipments, the recommencement of final garnet concentrate sales and improved pricing for all its concentrate products.

Outlook

Sales / shipment guidance for the forthcoming quarter is in the order of:

  • 4,000 to 7,000 tonnes of zircon/rutile concentrate;

  • expected 55,000 tonnes of ilmenite concentrate;

  • 80,000 tonnes of garnet concentrate delivered to stockpile; and

  • 50,000 tonnes of garnet concentrate shipped.

Operations will continue to focus on optimising the mining and processing value chain to deliver results in line with the September quarter’s record numbers.

Management will drive the completion of the formal Joint Venture Agreement for the Munglinup Graphite Project and expedite the requisite studies to fast track this project to development.

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Securities on Issue

During the quarter, 2,950,000 Performance Rights were issued to certain key staff and management personnel.

Issued securities at quarter-end comprise:

  • 404,941,571 fully paid ordinary shares listed on the ASX.

  • 5,000,000 fully vested Unlisted Options exercisable at AU$0.20 on or before 30 May 2018.

  • 1,000,000 fully vested Unlisted Options exercisable at AU$0.20 on or before 31 March 2018.

  • 4,000,000 Performance Rights exercisable on or before 30 May 2019 and vesting upon the closing share price reaching AU$0.20 and remaining at or above AU$0.20 for a period of 5 consecutive trading days.

  • 450,000 Performance Rights exercisable on or before 31 May 2021, vesting at a rate of 150,000 per annum on 31 May 2018 to 2020 inclusive, and the closing share price reaching AU$0.20 and remaining at or above AU$0.20 for a period of 5 consecutive trading days.

  • 2,000,000 exercisable on or before 31 May 2020, 1,500,000 vesting on issue and 500,000 on 12 months from date of issue, and the closing share price reaching AU$0.20 and remaining at or above AU$0.20 for a period of 5 consecutive trading days.

  • 500,000 exercisable on or before 31 May 2020, vesting on 31 May 2018, and the closing share price reaching AU$0.20 and remaining at or above AU$0.20 for a period of 5 consecutive trading days.

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Terms and Explanations

  • ABET Adult Basic Education and Training ASX Australian Securities Exchange BEE Black Economic Empowerment BID Background Information Document DEA Department of Environmental Affairs DMR Department of Mineral Resources DWA Department of Water Affairs EIA Environmental Impact Assessment EMP Environmental Management Programme FIPPA Foreign Investment Promotion and Protection Act GMA GMA Group GSP Garnet Stripping Plant HDSA Historically Disadvantaged South Africans HM Heavy Mineral HMC Heavy Mineral Concentrate HOA Heads of Agreement IEP Independent Environmental Practitioner JORC Joint Ore Reserves Committee LTI Lost Time Injury MOU Memorandum of Understanding MPRDA Mineral and Petroleum Resources Development Act MRA Mining Right Application MSP Mineral Separation Plant MSR Mineral Sands Resources (Pty) Ltd NEMA National Environmental Management Authority NUM National Union of Mine Workers PBC Primary Beach Concentrator PR Prospecting Right ROM Run of Mine SARS South African Revenue Service SCP Secondary Concentrator Plant SLP Social Labour Plan SMME Small Medium Micro Enterprises TRIFR Total Recordable Injury Frequency Rate TSP Tailings Scavenger Plant VAT Value Added Tax VHM Valuable Heavy Mineral WMT Wet Metric Tonnes

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APPENDIX 1 - RESOURCE STATEMENT

The Tormin and Xolobeni Mineral Resources based on mined material reconciliation as at 31 December 2016 for the Tormin Resource was as follows.

Resource Total Ilmenite Zircon Rutile Garnet
Heavy (% in (% in (% in (% in
PROJECT Category (Million
Mineral Heavy Heavy Heavy Heavy
Tonnes)
(%) Mineral) Mineral) Mineral) Mineral)
Tormin Inferred 1.8 28.08% 21.9% 5.9% 1.9% 67.6%
Xolobeni Measured 224 5.7% 54.5%
Indicated 104 4.1% 53.7%
Inferred 18 2.3% 69.6%
Total Xolobeni 346.0 5.0% 54.0%
Total MRC 348.7 5.3% 53.8%

Note: Individual minerals reported as a percentage of the total heavy mineral concentrates.

The Mineral Resource estimations previously reported under JORC 2004 for the Tormin Resource are represented with updated disclosure for JORC 2012.

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APPENDIX 2 – LISTING OF TENEMENTS

The following information is provided pursuant to ASX Listing Rules 5.3.3:

Country Location Number Type of Status Change Beneficial
Right since Interest
last
Quarter
South
Africa		 Tormin (WC)30/5/1/1/2/10261 PR Prospecting Under Application NA 100%
Tormin (WC) 30/5/1/1/2/10262 PR Prospecting Under Application NA 100%
Tormin (WC)30/5/1/2/2/163 MR Mining Approved N/A 100%
Tormin (WC) 30/5/1/1/2/10259 PR Prospecting Under Application N/A 100%
Tormin (WC)30/5/1/2/2/162 MR Mining Approved N/A 100%
Tormin (WC)30/5/1/1/2/10036 PR Prospecting Approved N/A 100%
Tormin (WC)30/5/1/1/2/10199 PR Prospecting Approved N/A 100%
Tormin (WC)30/5/1/1/2/10226 PR Prospecting Closed 100% 100%
Tormin (WC)30/5/1/1/2/10229 PR Prospecting Closed 100% 100%
Tormin (WC)30/5/1/1/2/10240 PR Prospecting Under Application 100% 100%
South
Africa		 Xolobeni EC30/5/1/1/2/6 PR Prospecting Closed –
Converting to
Mining Right		 N/A 100%
Xolobeni -
Kwanyana
block		 EC30/5/1/1/2/10025 PR Prospecting Subject to
moratorium -
Converting to
Mining Right		 N/A 100%
Xolobeni EC30/5/1/1/2/10025 MR Mining Subject to
moratorium -
Under Application		 100% 100%

The Company has no interests held in any farm-in or farm-out agreements.

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Competent Persons Statement

The information in this announcement which relates to Exploration Results, Mineral Resources or Ore Reserves for Xolobeni is based on information compiled by Mr Allen Maynard, who is a Member of the Australian Institute of Geosciences (“AIG”), a Corporate Member of the Australasian Institute of Mining & Metallurgy (“AusIMM”) and independent consultant to the Company. Mr Maynard is the Director and principal geologist of Al Maynard & Associates Pty Ltd and has over 35 years’ of exploration and mining experience in a variety of mineral deposit styles. Mr Maynard 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 2004 Edition of the “Australasian Code for reporting of Exploration Results, Exploration Targets, Mineral Resources and Ore Reserves” (JORC Code). This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported. Mr Maynard consents to inclusion in the report of the matters based on this information in the form and context in which it appears.

The information in this announcement which relates to Exploration Results, Mineral Resources or Ore Reserves for Tormin is based on information compiled by Mr Adriaan du Toit, who is a Member of the AusIMM and an independent consultant to the Company. Mr du Toit is the Director and principal geologist of AEMCO PTY LTD and has over 24 years’ of exploration and mining experience in a variety of mineral deposits and styles. Mr du Toit 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 JORC Code. The information from Mr du Toit was prepared under the JORC Code 2012 Edition. Mr du Toit consents to inclusion in the report of the matters based on this information.

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APPENDIX 3 – PRODUCTION SUMMARIES

Quarterly 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017
Garnet Concentrate (t) 73,353 70,599 64,994 61,856 58,160 87,728 138,775
Ilmenite Concentrate (t) 24,415 29,919 62,803 94,567 83,171 56,253 33,642
Zircon/ Rutile Concentrate (t) 10,170 8,476 7,450 9,717 6,212 5,462 5,496

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Quarterly Production Summaries
t
180,000
160,000
140,000
120,000
100,000
80,000
60,000
40,000
20,000
-
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
Garnet Concentrate Ilmenite Concentrate Zircon/ Rutile Concentrate
----- End of picture text -----

September Year-to-date 2014 2015 2016 2017
Garnet Concentrate (t) 182,539 204,601 208,946 284,663
Ilmenite Concentrate (t) 69,812 85,177 117,137 173,066
Zircon/ Rutile Concentrate (t) 31,104 33,262 26,096 17,170

Annual Production Summaries - September YTD

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t
500,000
400,000
300,000
200,000
100,000
-
2014 2015 2016 2017
Garnet Concentrate Ilmenite Concentrate Zircon/ Rutile Concentrate
----- End of picture text -----

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APPENDIX 4 – UNIT PRODUCTION CASH COSTS

Quarterly 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017
Unit production cash costs per
tonne of concentrate produced
(US$/t)		 27.12 32.55 25.70 24.49 30.76 30.37 24.95
Revenue: Costs of goods sold
ratio		 2.26 1.64 1.37 1.72 1.29 1.65 1.58

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----- Start of picture text -----

US$/t Unit Production Cash Costs - Quarterly
35.00 2.50
30.00
2.00
25.00
1.50
20.00
15.00
1.00
10.00
0.50
5.00
- -
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
Unit production cash costs per tonne of concentrate produced Revenue : Costs of goods sold ratio
----- End of picture text -----

September Year-to-date 2014 2015 2016 2017
Unit production cash costs per tonne of
concentrate produced (US$/t)		 57.58 39.82 28.26 28.52
Revenue: Costs of goods sold ratio 1.31 1.47 1.69 1.50

Unit Production Cash Costs - September YTD

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Unit Production Cash Costs - September YTD
US$/t
60.00 1.80
1.60
50.00
1.40
40.00 1.20
1.00
30.00
0.80
20.00 0.60
0.40
10.00
0.20
- -
2014 2015 2016 2017
Unit production cash costs per tonne of concentrate produced Revenue : Costs of goods sold ratio
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APPENDIX 5 – SALES SUMMARIES

Quarterly 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017
Garnet Concentrate (t) - - 50,000 80,308 168 81,368 81,226
Ilmenite Concentrate (t) - 2,002 - 2,068 59,111 112,987 55,000
Zircon/ Rutile Concentrate (t) 11,908 8,944 7,980 9,576 6,576 6,468 5,264

Quarterly Sales Summaries

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250,000
200,000
150,000
100,000
50,000
-
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
Garnet Concentrate Ilmenite Concentrate Zircon/ Rutile Concentrate
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September Year-to-date 2014 2015 2016 2017
Garnet Concentrate (t) 39,632 292,291 50,000 162,762
Ilmenite Concentrate (t) 1,098 0 2,002 227,097
Zircon/ Rutile Concentrate (t) 31,434 34,918 28,832 18,308

Annual Sales Summaries - September YTD

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500,000
400,000
300,000
200,000
100,000
0
2014 2015 2016 2017
Garnet Concentrate Ilmenite Concentrate Zircon/ Rutile Concentrate
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APPENDIX 6 – REVENUE

Quarterly 1Q 2016 2Q 2016 3Q 2016 4Q 2016 1Q 2017 2Q 2017 3Q 2017
Total Revenue (US$’000) 7,003 5,083 6,807 9,326 8,009 22,241 14,546
Revenue per tonne of
concentrate sold (US$/t)		 588.13 464.39 117.41 101.42 121.61 110.75 102.81

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US$'000 Revenue US$/t
25,000 600.00
500.00
20,000
400.00
15,000
300.00
10,000
200.00
5,000 100.00
- -
1Q16 2Q16 3Q16 4Q16 1Q17 2Q17 3Q17
Revenue Unit revenue per tonne of concentrate sold
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September Year-to-date 2014 2015 2016 2017
Total Revenue (US$’000) 22,569 36,872 18,894 44,797
Revenue per tonne of concentrate sold
(US$/t)		 312.74 112.69 233.74 109.75

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US$'000 Revenue: September YTD US$/t
45,000 350.00
40,000 300.00
35,000
250.00
30,000
25,000 200.00
20,000 150.00
15,000
100.00
10,000
50.00
5,000
- -
2014 2015 2016 2017
Revenue Unit revenue per tonne of concentrate sold
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APPENDIX 7 – MUNGLINUP GRAPHITE PROJECT – RESOURCE INFORMATION

Project Summary

The Munglinup Graphite Deposit lies within the Munglinup Mining Lease M74/245 and includes neighbouring Exploration License E74/505. The deposit is located 4km north of the town of Munglinup, 42km east of the Ravensthorpe Nickel Mine and 105km west of the township and port of Esperance, Western Australia.

The Munglinup area comprises Archean to Paleoproterozoic, metamorphosed granitic and other metamorphic rocks of the Albany–Fraser Orogen, typically hornblende (± garnet) gneiss and migmatite. Within the gneissic rock mass, rocks containing the Munglinup graphite deposits consist of a succession of tightly folded metasedimentary units with a consistent dip to the southeast. This succession, originally carbonaceous shales, comprises graphitic schists and gneisses together with jaspilite (also called ‘ironstone’), and clastic rocks that have been weathered to kaolinite, quartz, graphite, and goethite, with the graphitic horizons having been subjected to a high degree of weathering in comparison to the host rocks. Individual graphite horizons vary in thickness up to a maximum of circa 20m.

Graphite occurrences within the area of interest have been identified, studied and at various times mined over the last 100 years. It is recognised that considerable geological understanding of the area exists and historical data informing the quantum and tenor of the graphite occurrences is robust.

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The current resource database consists of 161 air core holes and 38 diamond holes representing 6612m of drilling and 2738 analysed drill samples. In 2016 re-logging and re-assay of 422 diamond core samples along with updated QA/QC work and historical data were used to derive an updated Mineral Resource model consisting of 5 separate deposits within the Munglinup area. In 2016 the Mineral Resource (JORC 2012 compliant) was updated by AEMCO and has since been peer reviewed which deemed the estimation methodology appropriate. The resource is classified into Indicated and Measured for a Total Resource of 3.625 million tonnes @ 15.3% Total Graphite Contained (“TGC”) using a lower cut-off grade of 10% or 1.6 million tonnes @ 18.7% TGC using a cut-off grade of 15%.

Tonnes (kt) Grade (TGC%) Contained
Graphite(kt)
Halberts Main Zone
Measured 1,710 14.1 241
Indicated 1,367 15.3 209
Other Areas
Indicated 548 19.1 104
Total 3,625 15.3 554

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Mining
Reserve
24714
M74/245
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Significant metallurgical work has been undertaken on the graphite mineralisation in the Munglinup deposit. Gwalia Consolidated completed expansive test work building on from historic work that was originally carried out in the 1950’s, 60’s and 70’s. The Gwalia test program for their 1991 feasibility study was conducted from 1988-1991. Six distinct ore types were identified and the ore was described as having low variability. The project was further reviewed by Graphite Australia with the aim to consider a lower cost, simplified flowsheet. In 2011, Graphite Australia undertook:

  • Metallurgical work to assess the quality of the graphite

  • Costeans opened and 6 tonne of sample material from various locations on the Munglinup project site supplied for testing Commissioned test work by Nagrom mineral processors using updated technology.

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The Nagrom test work was undertaken with an updated flowsheet resulting in an expected gravity graphite recovery of 87-90% and flotation average recoveries of 96%. Preliminary flotation of concentrates achieved grades in the range of 90-96% carbon with the revised flowsheet.

A due diligence review of the Project was undertaken by Battery Limits with modelling showing the project is economic under current and even lower graphite pricing conditions. The previous test work resulted in several flake size distributions and review of the historical test work by Battery Limits has found that the flow sheet has not yet been optimised. Battery Limits concluded that the Munglinup Project is a high-grade graphite project that provides the opportunity to establish a viable graphite operation. They did not identify any fatal flaws in the Project and also suggested that downstream processing such as producing spherical graphite of graphene could be considered to value add to the Project.

Graphite Market

The majority of current world demand for graphite (88%) is driven by industrial applications (steel making, refractories and lubricants) that are growing at around 3% pa. Within the industrial sector, new applications comprising expandable graphite, and specialist applications including micronized graphite and graphene, are leading to an increase in demand. Expandable graphite has multiple uses including flame retardant materials, graphite foil, graphite paper, and knitted tape (high temperature and fire resistance). The remaining usage comes from the high-tech sector of batteries that is experiencing very high growth rates and requires high purity product.

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It is estimated that the 2015 global natural flake graphite production was around 650kt with the majority of supply coming from Chinese domestic production. These operations, mainly located in the Shandong, Heilong and Jixi regions of China are usually small, of low grade and quality, and prone to poor environmental practices.

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According to Benchmark Minerals, global production is estimated to have decreased by 45% since 2013, mainly due to the supply of marginal, lower quality Chinese amorphous production coming under pressure from influences such as increasing government intervention (i.e. closure of mines), and plateauing of demand from Chinese steel production.

General market consensus is that in the longer-term, expectations are for the natural flake graphite market to increase in size to around 1.1Mt by 2020, and to +2Mt by 2025, representing a CAGR of 16% (Canaccord Genuity). Supply is expected to increase to around 1.4Mt by 2020 and 2Mt by 2025 resulting in a short period of oversupply assuming natural coarse flake graphite projects currently in the development pipeline are delivered on time.

Of the 21 graphite projects globally (ex-China) at various levels of development and project feasibility, 8 are located in Tanzania and Mozambique. The largest and most advanced of these is Syrah Resources’ 340ktpa Balama project in Mozambique, which is currently anticipated to achieve first production in 2017. Collectively these projects represent a potential +1.15Mtpa of natural graphite production, requiring more than US$2.6bn in capital (Canaccord Genuity).

Should a number of these projects not be brought into production as anticipated prior to the ongoing issues around mining regulation, it is likely the coarse flake graphite market will be in undersupply shortly, having a positive impact on graphite pricing.

Recent graphite pricing is already increasing with the Benchmark Flake Graphite Price Index up 16% in August off the back of China’s tightening of environmental regulation. This is the highest level since June 2015 and there is an acceptance across the market that sharp increases are likely to continue in the short-term (Benchmark Mineral Intelligence).

Given the above factors and uncertainties, investors should not make any investment decisions based solely on the information contained in this release.

Competent Persons Statement

The work in this report was prepared by Adriaan du Toit who is a member of the Australian Institute of Mining and Metallurgy (AusIMM) and who is an independent consultant to Gold Terrace. Mr du Toit is the Director and Principal Geologist of AEMCO Pty Ltd. He has over 25 years of exploration and mining experience in a variety of mineral deposits and styles. Mr du Toit has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined by the 2012 JORC Edition. The information from Mr du Toit was prepared under the JORC Code 2012 Edition. Mr du Toit consents to inclusion in the report of the matters based on this information in the form and context in which it appears.

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Estimation and Reporting of Mineral Resources

Munglinup (JORC Code, 2012 Edition – Table 1 report)

Section 1 Sampling Techniques and Data

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

Criteria JORC Code explanation Commentary Commentary
Sampling Nature and quality of sampling (eg cut channels, random chips, or specific The current resource database consists of 161 air core holes and 38
techniques specialised industry standard measurement tools appropriate to the diamond holes representing 6612m of drilling and 2738 analyzed drill
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.
Include reference to measures taken to ensure sample representivity and the
appropriate calibration of any measurement tools or systems used.
samples.
Air core (undertaken by Graphite Australia) ore zone intervals were
sampled every meter using a scoop spear and the material bagged and
numbered. Waste was not sampled except for a small buffer either
side of the mineralisation.
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		 Diamond drilling (undertaken by Graphite Australia) ore zone intervals
were sampled every meter except for ore boundaries where longer or
shorter interval was taken. Waste was not sampled except for a small
buffer either side of the mineralisation.
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 Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, Diamond drilling was done using HQ triple tube.
techniques auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard The mineralisation occurs from surface and drilling was done to a
tube, depth of diamond tails, face-sampling bit or other type, whether core maximum of 61.1m depth.
_is oriented and if so, by what method, etc). _
Drill sample Method of recording and assessing core and chip sample recoveries and No continuous data was recorded on core or chip recovery. Only poor
recovery results assessed. sample quality and recovery was recorded for air core.
Measures taken to maximise sample recovery and ensure representative Due to the style of the deposit it is considered that any material loss is
nature of the samples. not significant to the estimation of mineralisation.
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.
Logging Whether core and chip samples have been geologically and geotechnically The current resource database consists of 161 air core holes and 38
logged to a level of detail to support appropriate Mineral Resource diamond holes representing6604m of drillingthat were initially

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Criteria JORC Code explanation Commentary Commentary
estimation, mining studies and metallurgical studies. logged by onsite geologists. Diamond core was relogged and
resampled in 2016.
Whether logging is qualitative or quantitative in nature. Core (or costean, The data and results obtained from the 2012-2013 (Graphite Australia)
channel, etc) photography. drilling campaign were compared with the new logging and lab results
The total length and percentage of the relevant intersections logged. from 2016 (AEMCO) as well as the historical logging and grades from
the 1986 diamond holes by Sons of Gwalia. The two datasets were
correlated to an acceptable level.
A comprehensive logging system was developed and included
alteration (type, style and intensity), grain size, rock type / lithology,
colour, minerals, textures, fabric, parent rock (where fresh),
sedimentary setting and, graphite class and grade.
Geotechnical aspects in the form of RQD parameters were also
recorded for the diamond core as well as specific structures and
details in this regard e.g. alpha angles.
Sub-sampling If core, whether cut or sawn and whether quarter, half or all core taken. Air core was sampled using a scoop spear.
techniques If non-core, whether riffled, tube sampled, rotary split, etc and whether Diamond core was cut by a diamond impregnated blade core saw and
and sample sampled wet or dry. half core sampled. Re-sampling of the remaining core in 2016 for data
preparation For all sample types, the nature, quality and appropriateness of the sample
preparation technique.		 validation purposes (422 core samples including 26 duplicates and 19
repeat samples) used quarter core.
Quality control procedures adopted for all sub-sampling stages to maximise Duplicates (quarter core) were taken every 20 meters during the
representivity of samples. Graphite Australia drilling program.
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 Standards were inserted every 20 meters. No blanks were used in
assay data procedures used and whether the technique is considered partial or total. addition to normal laboratory QAQC protocols.
and For geophysical tools, spectrometers, handheld XRF instruments, etc, the Sample analysis was undertaken by Nagrom in Perth for the Graphite
laboratory
tests		 parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors applied and their derivation, etc.
Australia samples.
The graphite content is reported as Total Graphitic Carbon (TGC).
Nature of quality control procedures adopted (eg standards, blanks, Prepared samples were dissolved in HCl over heat until all carbonate
duplicates, external laboratory checks) and whether acceptable levels of material is removed. The residue is then heated to drive off organic
accuracy (ie lack of bias) and precision have been established. content. The final residue is combusted in oxygen with a Carbon-
Sulphur Analyser and analysed for Total Graphitic Carbon(TGC).

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Criteria JORC Code explanation Commentary Commentary
Sample analysis was undertaken by Analabs in Perth for the Gwalia
Minerals NL samples. Two methods were used.
Fixed carbon (>40%C) – C graphite is determined as an expression of
fixed carbon which is calculated by subtracting the sum of the
percentages of moisture in the sample, volatile matter and ash from
100 (BS1016 methodology)
Fixed carbon (<40%C) - the sample is washed with organic solvents,
filtered and washed with NaOH solution, the sample is then attacked
with hot 1:1 HCL to remove carbonates, washed and dried at 105oC,
the residue is analysed for carbon by converting the carbon to CO2 in
a Leco furnace and measuring by infra-red.
Eleven check samples (pulps) from Analabs were sent to Classic
Laboratories for cross checks. Classic Laboratories washed the
samples with dilute HCL to remove carbonates, ash at 450oC to
remove organic carbon and assay by Leco furnace for the remaining
fixed carbon / C graphite. Check assays >10% fixed carbon were all
within ±10% of the original Analabs assay. Analabs assays within the
range 5% -10% fixed carbon were approximately 15% lower than
Classics check assays.
Verification The verification of significant intersections by either independent or Four twin holes were drilled by Graphite Australia near (8-14m) the
of sampling alternative company personnel. historical diamond holes by Sons of Gwalia.
and assaying The use of twinned holes. The database containing drilling data and results was provided by
Documentation of primary data, data entry procedures, data verification, Graphite Australia. A review of the data was done by the project field
data storage (physical and electronic) protocols. geologist Mr Luke Forti and the accuracy of the data was discussed
Discuss any adjustment to assay data. with him during a number of meetings with AEMCO during 2015.
Confirmation on the integrity and accuracy of the data was provided.
A visual review of the diamond core was then done by AEMCO in 2016
to confirm the historical logging by Graphite Australia. Any
outstanding information was recovered from the diamond core and
updated geological logs were created.
Diamond core was relogged and resampled in 2016. 422 Core samples
were re-analyzed by Nagrom during April 2016, including 26 duplicate
and 19 repeat samples to confirmgrade results. GGC01,GGC08 &

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Criteria JORC Code explanation Commentary Commentary
GGC09 standards were used.
The data and results obtained from the 2012-2013 (Graphite Australia)
drilling campaign were compared with the new logging and lab results
from 2016 (AEMCO) as well as the historical logging and grades from
the 1986 diamond holes by Sons of Gwalia. Any discrepancies or
errors were either corrected or the results rejected.
Location of Accuracy and quality of surveys used to locate drill holes (collar and down- All exploration drillhole collars were re-surveyed to 0.05m accuracy by
data points hole surveys), trenches, mine workings and other locations used in Mineral Esperance Surveys in July 2016. In total 90% (179 holes) were re-
Resource estimation. surveyed to confirm location integrity. Average variation from the
Specification of the grid system used. original field survey in all directions was less than 2m.
Quality and adequacy of topographic control. Air core holes were down hole surveyed at the end of the hole only.
Diamond drill holes were surveyed at 30m depth and the end of hole.
Local grids were established at each of the prospects then later
converted to GDA94. Hole collars were originally surveyed by GPS
only.
Data spacing Data spacing for reporting of Exploration Results. Drill spacing:
and Whether the data spacing and distribution is sufficient to establish the o
Halberts Main Zone: (Drill Grid 50 x 20m).
distribution degree of geological and grade continuity appropriate for the Mineral o
Halbert South Zone: (Drill Grid 40 x 20 & 40 x 10 infill)
Resource and Ore Reserve estimation procedure(s) and classifications o
Harris Area: (Drill Grid 40 x 20m)
applied. o
McCarthy West Area: (Drill Grid 40 x 20)
Whether sample compositing has been applied. o
McCarthy East(Wright) Area: (Drill Grid 40 x 10)
Orientation of
Whether the orientation of sampling achieves unbiased sampling of possible
The deposits were drilled at approximately -60° to intersect the
data in structures and the extent to which this is known, considering the deposit mineralised zoned approximately orthogonal to the interpreted dip
relation to type. and strike of the geological units.
geological
structure		 If the relationship between the drilling orientation and the orientation of key
mineralised structures is considered to have introduced a sampling bias, this

The interpreted mineralised zones correlated extremely well with
historical interpretations done by Sons of Gwalia in the 1980’s and
should be assessed and reported if material. 1990’s and high degree of confidence in the orientation and zoning of
the graphite mineralisation is noted.
Sample The measures taken to ensure sample security. Graphite Australia followed a disciplined QA/QC process as is evident
security from their database and chain of command documents.
AEMCO followed the same procedure and personally took all
resampled material to Nagrom and recovered theprocessed sample

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Criteria JORC Code explanation Commentary Commentary
material for storage with the remaining core and air core samples at a
secured location in Welshpool, WA.
Audits or The results of any audits or reviews of sampling techniques and data. An audit was conducted by Coffey Mining Pty Ltd in 2011 prior to the
reviews additional drilling undertaken by Graphite Australia. The review
stated; “Resources and reserves are assessed to be non-JORC
compliant, given the age and the lack of available core. However,
given the level of documentation provided, and the extent to which an
auditable trail exists in relation to the modelled resources and
reserves, the metrics presented are credible and serve as basis for
project decision making.”
The 2012-2013 exploration work done by Graphite Australia during
was reviewed and completed by AEMCO in 2015 and 2016 and from
this review a maiden JORC 2012 resource was determined.

Section 2 Reporting of Exploration Results

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

Criteria JORC Code explanation Commentary Commentary
Mineral Type, reference name/number, location and ownership including The tenements (M74/75 & E74/505) are situated on the Ravensthorpe
tenement and
agreements or material issues with third parties such as joint ventures,		 SI 51-5 and North-Over 3031, 1:250,000 and 1:100,000 geological
land tenure partnerships, overriding royalties, native title interests, historical sites, sheets respectively.
status wilderness or national park and environmental settings. Mining Lease 74/245 was granted on the 26 August 2010 for a term of
The security of the tenure held at the time of reporting along with any 21 years. The Lease is 685 hectares in area.
known impediments to obtaining a licence to operate in the area. Exploration License 74/505 of 2 block size was granted on 23 October
2012 for a period of 5 years.
Gold Terrace Pty Ltd are the current registered owners of the
Munglinup Mining Lease (M74/245) and Exploration License E74/505.
There is a caveat on the tenements relating to a 2% gross royalty
liability with Adelaide Prospecting as the beneficiary.
The fully granted mining lease is valid to August 2031.
The tenements are located in a fully gazetted mining reserve, with no
native title or private land ownership issues.

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Criteria JORC Code explanation Commentary Commentary
Exploration Acknowledgment and appraisal of exploration by other parties. Metals Exploration NL – (1971-1972)
done by other Norseman Gold Mines – (1979-1980)
parties Pioneer Concrete – (1985-1986)
Gwalia Minerals NL – (1988 – 1989)
Sons of Gwalia – Gwalia Minerals: Feasibility Studies – (1989 to 1991)
Adelaide Prospecting – (2007-2010)
Graphite Australia (2010-2013)
Geology Deposit type, geological setting and style of mineralisation. The Munglinup area comprises Archean to Paleoproterozoic,
metamorphosed granitic and other metamorphic rocks of the Albany–
Fraser Orogen, typically hornblende (± garnet) gneiss and migmatite.
Within the gneissic rock mass, rocks containing the Munglinup
graphite deposits consist of a succession of tightly folded
metasedimentary rocks with a consistent dip to the southeast.
The classification scheme most widely accepted for graphite deposits
was introduced by Cameron (1960). It classifies known graphite
deposits into five categories reflecting the different types of graphite.
Using this classification scheme, it is most likely that the Munglinup
deposit can be characterized as a type 1, disseminated flake graphite
in silica-rich meta-sediments deposit.
Drill hole A summary of all information material to the understanding of the This information is included in the drill hole collar tables below.
Information exploration results including a tabulation of the following information for all
Material drill holes:
o easting and northing of the drill hole collar
o elevation or RL (Reduced Level – elevation above sea level in metres) of
the drill hole collar
o dip and azimuth of the hole
o down hole length and interception depth
o hole length.
If the exclusion of this information is justified on the basis that the
information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly explain
why this is the case.

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Criteria JORC Code explanation Commentary Commentary
Data In reporting Exploration Results, weighting averaging techniques, maximum No cut-off grades were applied to exploration data.
aggregation and/or minimum grade truncations (eg cutting of high grades) and cut-off See detail regarding resource assessment.
methods 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 Exploration
Inclined air core and diamond drilling (HQ3) was done to try and
between Results. intersect the different graphite zones as close to true width as
mineralisatio If the geometry of the mineralisation with respect to the drill hole angle is possible. Average dip angle was 60°.
n 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 Drill hole collar location plans and sections given below.
should be included for any significant discovery being reported These should
include, but not be limited to a plan view of drill hole collar locations and
appropriate sectional views.
Balanced Where comprehensive reporting of all Exploration Results is not practicable, See results from the Resource Assessment (section 3 of Table 1)
reporting representative reporting of both low and high grades and/or widths should
bepracticed to avoid misleading reporting of Exploration Results.
Other Other exploration data, if meaningful and material, should be reported See results from the Resource Assessment (section 3 of Table 1)
substantive including (but not limited to): geological observations; geophysical survey
exploration results; geochemical survey results; bulk samples – size and method of
data 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 To be announced to the market in the near future.
or depth extensions or large-scale step-out drilling).
Diagrams clearly highlighting the areas of possible extensions, including the
main geological interpretations and future drilling areas, provided this
information is not commercially sensitive.

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Criteria JORC Code explanation Commentary
Database Measures taken to ensure that data has not been corrupted by, for example,
 The database containing drilling data and results was provided by Graphite
integrity transcription or keying errors, between its initial collection and its use for Australia. A review of the data was done by the project field geologist Mr
Mineral Resource estimation purposes. Luke Forti and the accuracy of the data was discussed with him during a
Data validation procedures used. number of meetings with AEMCO during 2015. Confirmation on the
integrity and accuracy of the data was provided.
 A visual review of the diamond core was then done by AEMCO in 2016 to
confirm the historical logging by Graphite Australia. Any outstanding
information was recovered from the diamond core and updated geological
logs were created.
 Diamond core was relogged and resampled in 2016. 422 Core samples
were re-analyzed by Nagrom during April 2016, including 26 duplicate and
19 repeat samples to confirm grade results. GGC01, GGC08 & GGC09
standards were used.
 The data and results obtained from the 2012-2013 (Graphite Australia)
drilling campaign were compared with the new logging and lab results from
2016 (AEMCO) as well as the historical logging and grades from the 1986
diamond holes by Sons of Gwalia. Any discrepancies or errors were either
corrected or the results rejected.
 Four twin holes were drilled by Graphite Australia near (8-14m) the
historical diamond holes by Sons of Gwalia.
 The current resource database consists of 161 air core holes and 38
diamond holes representing 6612m of drilling and 2738 analyzed drill
samples.
 All exploration drillhole collars were re-surveyed to 0.05m accuracy by
Esperance Surveys in July 2016. In total 90% (179 holes) were re-surveyed
to confirm location integrity. Average variation from the original field
survey in all directions was less than 2m.
Site visits Comment on any site visits undertaken by the Competent Person and the  No site visit was undertaken as all drilling, survey work and site
outcome of those visits. rehabilitation had been completed before this resource assessment started.
If no site visits have been undertaken indicate why this is the case. All recent drill samples, core samples and bulk samples have been removed

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Criteria JORC Code explanation Commentary
to an industrial site in Welshpool and this material was inspected and
reviewed by the CP.
Geological Confidence in (or conversely, the uncertainty of) the geological  The determined measured and indicated resource of 1.6 million tonnes @
interpretation interpretation of the mineral deposit. 18.7% TGC at the Halberts Main zone compares favourable with the
Nature of the data used and of any assumptions made. historical reported measured resource grade of 1.467 million tonnes @
18.2% and the produced product grade of 19%. The confidence in the
The effect, if any, of alternative interpretations on Mineral Resource current geological interpretation is therefore considered to be good.
estimation.  Assay data has been used to generate mineralization domains. Unsampled
The use of geology in guiding and controlling Mineral Resource estimation. intervals were classified as waste and any graphite mineralization less than
The factors affecting continuity both of grade and geology. 1m in thickness outside mineralized domains was ignored. Internal waste
material less than 1m was ignored.
 The geology, strike and dip of the deposit is well understood and is tabular
in geometry with sub parallel gneissic units.
 As graphite content is found within a highly weathered lithological zones
described as either a schist or gneiss and the host rock is within a para- and
orthogneiss, modeling of a lithological model were problematic as the
mineralized zone contact is not always distinct. It was therefore decided to
only model zones with proven graphite content – a mineral composite
grade model – not a lithological model. The mineralized domains were
though interpolated using the local strike and dip of their host lithologies.
These mineralized domains reflect their host schist lithologies to a very
large degree.
 The graphite rich zone were modeled according to 4 grade zone – Low (1 to
5% TGC); Medium (>5 and ≤10% TGC); Medium to High (>10 and ≤15% TGC)
and High grade zone (>15% TGC).
 Resource grade interpolations was limited to a search radius length equal to
at least the nearest fence drill line as follows:
 Halberts Main Zone: Measured Resource: 50m search radius, Indicated
Resource 100m search radius (SR) (Drill Grid 50 x 20m).
 Halbert South Zone: Indicated Resource 50m SR (Drill Grid 40 x 20 & 40 x
10 infill)

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Criteria JORC Code explanation Commentary
 Harris Area: Indicated Resource 50m SR (Drill Grid 40 x 20m)
 McCarthy West Area: Indicated Resource 50m SR (Drill Grid 40 x 20)
 McCarthy East Area: Indicated Resource 50m SR (Drill Grid 40 x 10)
 Total Graphite Content grade was modelled using Leapfrog Geo software.
Any TGC grade intersections less than 1m in thickness was ignored during
the resource calculations. Any intersections larger than 1m that did not
carry graphite was modeled outside the grade models.
 No composite grading was done and true intersections and reported grade
was used to create interpolants.
 The local strike and dip of the host formation in each area was used as
structural trend control on the grade interpolation model.
 The resulting mineralized zones were compared with historical maps and
sections to determine if the current model reflects the historical
interpretations. The model was found to closely reflect the historical
interpretations and were true to the geological strike and dips reported.
Dimensions The extent and variability of the Mineral Resource expressed as length  The mineralized zones consist of numerous thin (2-20m wide) steeply
(along strike or otherwise), plan width, and depth below surface to the dipping folded zones reflecting a cover nappe system with late stage granite
upper and lower limits of the Mineral Resource. and pegmatite intrusions.
 Halberts Main Zone:
Length: 730m
Width: 90-130m
Depth: surface to -90m
 Halbert South Zone:
Length: 560m
Width: 20-50m
Depth: surface to -60m
 Harris Area:

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Criteria JORC Code explanation Commentary
Length: 435m
Width: 30-70m
Depth: surface to -35m
 McCarthy West Area:
Length: 290m
Width: 100-110m
Depth: surface to -55m
 McCarthy East Area:
Length: 260m
Width: 12-20m
Depth: surface to -30m
Estimation and The nature and appropriateness of the estimation technique(s) applied and  A conservative approach was taken during the resource modeling.
modelling
techniques		 key assumptions, including treatment of extreme grade values, domaining,
interpolation parameters and maximum distance of extrapolation from data
 Leaprog Geo version 3.1 was used to model the resource.
points. If a computer assisted estimation method was chosen include a  A composite grade geological model was created for each deposit. The
description of computer software and parameters used. mean grade for each zone was then determined for each model.
The availability of check estimates, previous estimates and/or mine  The model parameter for each of the five deposit was based on site specific
production records and whether the Mineral Resource estimate takes aspects. The search radius for the grade model was limited to the nearest
appropriate account of such data. adjacent fence drill line as previously reported. No extrapolation of results
The assumptions made regarding recovery of by-products. were allowed outside the search radius. The search ellipse was weighted
and oriented according to the structural trend (dip and dip direction and
Estimation of deleterious elements or other non-grade variables of plunge) of the host lithological formation as follows:
economic significance (eg sulphur for acid mine drainage characterisation).  Halberts Main Zone:
In the case of block model interpolation, the block size in relation to the
average sample spacing and the search employed.		 Dip: 45°
Any assumptions behind modelling of selective mining units. Dip Azimuth: 77°
Pitch: 0.2°

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Criteria JORC Code explanation Commentary
Any assumptions about correlation between variables.  Halbert South Zone:
Description of how the geological interpretation was used to control the Dip: 38°
resource estimates. Dip Azimuth: 60°
Discussion of basis for using or not using grade cutting or capping. Pitch: 0.2°
The process of validation, the checking process used, the comparison of  Harris Area:
model data to drill hole data, and use of reconciliation data if available.
Dip: 37°
Dip Azimuth: 143°
Pitch: 0.1°
 McCarthy West Area:
Dip: 45°
Dip Azimuth: 160°
Pitch: 0°
 McCarthy East Area:
Dip: 45°
Dip Azimuth: 137°
Pitch: 0°
 The resource boundaries was limited to the search radius from the last
point of intersections and against the surface topography.
 3D Wireframes volumes/isosurfaces has been snapped precisely to drill
results.
 Validation of the statistical drill results data and historical reported grades
compared very favorably with the determine resource grade of 18.2% TGC
and historical mine production grades of 19% TGC.
 There appear to be a correlation between pegmatite intrusions and higher
grade graphite zones but the correlation cannot be proven.

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Criteria JORC Code explanation Commentary
 The current resource is declared at a cut-off grade of 10% as the industry
standard median grade for commercial graphite mine development is
considered to be approximately 9-10% TGC. This gives a total resource of
3.076 million tonnes @ 14.6 TGC.
 If a cut-off grade 1% is used the total resource increases to 5 million tonnes
@ 10.4% TGC.
Moisture Whether the tonnages are estimated on a dry basis or with natural  The resource tonnages are based on a dry basis at an SG of 1.91.
moisture, and the method of determination of the moisture content.
Cut-off The basis of the adopted cut-off grade(s) or quality parameters applied.  The current resource is declared at a cut-off grade of 10% as the industry
parameters standard median grade for commercial graphite mine development is
considered to be approximately 9-10% TGC.
Mining factors or Assumptions made regarding possible mining methods, minimum mining  Mining of the deposit will be by open pit surface mining methods involving
assumptions dimensions and internal (or, if applicable, external) mining dilution. It is standard truck and haul mining techniques.
always necessary as part of the process of determining reasonable
prospects for eventual economic extraction to consider potential mining		  No assumptions on mining methodology have been made.
methods, but the assumptions made regarding mining methods and
parameters when estimating Mineral Resources may not always be
rigorous. Where this is the case, this should be reported with an explanation
of the basis of the mining assumptions made.
Metallurgical The basis for assumptions or predictions regarding metallurgical  Extensive metallurgical testing has been done on the deposit which include
factors or amenability. It is always necessary as part of the process of determining the following studies:
assumptions reasonable prospects for eventual economic extraction to consider potential
metallurgical methods, but the assumptions regarding metallurgical		  Amdel (for Picon) – 1986
treatment processes and parameters made when reporting Mineral  Leach and Floration test work – Chemistry Centre – 1990
Resources may not always be rigorous. Where this is the case, this should be
reported with an explanation of the basis of the metallurgical assumptions
 Settling Tests – Chemistry Centre – 1991
made.  Flotation Tests – Chemistry Centre – 1991
 Screening Test – Chemistry Centre - 1992
 Coffey Mining 2011

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Criteria JORC Code explanation Commentary
 Metallurgical study – TF Brittliffe – 2011
 Nagrom tests 2011-2016 and Petrographical studies by Roger Townend and
Associates
 A summary of results include:
 90% Graphite concentrate will be achievable.
Furthermore this circuit will be comprised of gravity and flotation units only –
obviating the need for any chemical cleaning units.
Flake size distribution of 35% +300µ; 32 % -300 +150µ; 33% -150µ
Environmen-tal Assumptions made regarding possible waste and process residue disposal  No assumptions have been made and these will form part of a scoping
factors or options. It is always necessary as part of the process of determining study.
assumptions reasonable prospects for eventual economic extraction to consider the
potential environmental impacts of the mining and processing operation.
While at this stage the determination of potential environmental impacts,
particularly for a greenfields project, may not always be well advanced, the
status of early consideration of these potential environmental impacts
should be reported. Where these aspects have not been considered this
should be reported with an explanation of the environmental assumptions
made.
Bulk density Whether assumed or determined. If assumed, the basis for the assumptions.
 The bulk density is based on historical density calculation for the material at
If determined, the method used, whether wet or dry, the frequency of the 1.91 g/cm3
measurements, the nature, size and representativeness of the samples.  The host geology comprises weathered metamorphic material. Visual
The bulk density for bulk material must have been measured by methods inspection of core indicate little loss of material due to vugs or
that adequately account for void spaces (vugs, porosity, etc), moisture and discontinuities.
differences between rock and alteration zones within the deposit.  All material within the mineralization domains were assumed to be schist
Discuss assumptions for bulk density estimates used in the evaluation for the purpose of assigning density values.
process of the different materials.
Classification The basis for the classification of the Mineral Resources into varying  The original 1989 resource classification was an indicated and measured
confidence categories. resource based on 1989 JORC criteria including diamond drilling, trenching,
bulk sampling, exploration & mine shafts and bulk mining.

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Criteria JORC Code explanation Commentary
Whether appropriate account has been taken of all relevant factors (ie  Since that time an additional 161 air core holes and 22 new diamond holes
relative confidence in tonnage/grade estimations, reliability of input data, representing 5883m of drilling and 2615 analyzed drill samples were added
confidence in continuity of geology and metal values, quality, quantity and to the resource database.
distribution of the data).  The input data is comprehensive in its coverage of the known areas of
Whether the result appropriately reflects the Competent Person’s view of mineralization and mineralization remains open along strike and depth.
the deposit.
 A review of the drill data, lab results, continuity of the mineralization and
the drill spacing allowed the current resource to be classified as indicated
and measured.
 A conservative modelling approach was used to be able to classify part of
the Halberts Main zone into measured with an interpolation search radius
limited to 50m on a 50 x 20m drill grid. No extrapolation of the resource
were done past this distance. No mineralization with intersections less than
1m was used in the resource determination and all waste or unsampled
zones thicker than 1m was classified to be located outside the mineralized
zone.
 The model is not considered to favor or misrepresent in-situ mineralization
and reflects the current and historical interpretation of the ore body. The
Mineral Resource estimate appropriately reflects the view of the
Competent Person.
Audits or reviews The results of any audits or reviews of Mineral Resource estimates.  This is the maiden mineral resource estimate under JORC 2012.
Discussion of Where appropriate a statement of the relative accuracy and confidence  The Munglinup graphite deposit has been mapped, drilled, mined and
relative accuracy/
level in the Mineral Resource estimate using an approach or procedure		 investigated numerous times over the past 100 years. The high grade
confidence deemed appropriate by the Competent Person. For example, the application nature of the resource and its potential is well documented. The structural
of statistical or geostatistical procedures to quantify the relative accuracy of
complexity and difficulty in lithological identification within the weathered
the resource within stated confidence limits, or, if such an approach is not zone has always made modeling using a standard lithological model
deemed appropriate, a qualitative discussion of the factors that could affect difficult. Using implicit modeling methods as provided by Leapfrog software
the relative accuracy and confidence of the estimate. and the creation of a composite lithological grade model helped to
The statement should specify whether it relates to global or local estimates, overcome some of these difficulties.
and, if local, state the relevant tonnages, which should be relevant to  A statistical analyses of all the mineralized (carrying graphite) drill data
technical and economic evaluation. Documentation should include indicates the following:
assumptions made and the procedures used.

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Criteria JORC Code explanation Commentary
These statements of relative accuracy and confidence of the estimate should
27.45% of intersections is above 15% having a median grade of 19.57% TGC
be compared with production data, where available. 38.45% of intersections is above 10% having a median grade of 14.64% TGC
54.67% of intersections is above 5% having a median grade of 11.19%
 The statistical grade data correlates extremely well with the Halberts Main
zone modeled resource grade of 14.6% using a cut-off grade of 10%.
 The current data quality, drill hole spacing and the interpreted continuity of
grades and continuity at surface outcrop have allowed AEMCO to classify
the Halberts main zone resource into Measured and Indicated category and
all the other deposits into Indicated.
 The resource estimate compares favorably with historical production
grades of 19%.

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HOLE ID ZONE FROM (m) TO (m) INTERVAL
(m)		 AVERAGE GRADE
TGC(%)
GAMA015 Halbert Main 38 45 7.0 34.91
GAMD013 Halbert Main 38.45 42 3.6 34.90
GAMD016 Halbert Main 24.94 34.94 10.0 34.25
GAMA008 Halbert Main 32 39 7.0 32.89
GAMA006 Halbert Main 25 37 12.0 32.37
GAMA090 Wright 10 17 7.0 30.13
GAMA148 McCarthy 41 42 1.0 30.00
GAMD013 Halbert Main 49.16 57.27 8.1 29.04
GAMA015 Halbert Main 29 45 16.0 28.59
GAMA009 Halbert Main 51 61 10.0 28.18
GAMD010 Halbert Main 29.55 37.8 8.3 27.69
GAMA149 McCarthy 45 51 6.0 27.23
GAMA092 Wright 16 23 7.0 26.66
GAMD014 Halbert Main 52.49 58.7 6.2 26.13
GAMA003 Halbert Main 13 30 17.0 24.32
GAMA005 Halbert Main 10 19 9.0 23.18
GAMA061 Halbert South 33 40 7.0 21.74

Selected High Grade Intercepts from various areas

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Drill Collar Locations for Halberts South Deposit

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Drill Collar Locations for Halberts Main Deposit

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Drill Collar Locations for Harris Deposit

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Drill Collar Locations for McCarthy West Deposit

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Drill Collar Locations for McCarthy East/Wright Deposit

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Sectional View of Halberts South Deposit

Section perpendicular to mineralisation strike, looking towards 334 degrees. Green shapes define low Graphite Mineralisation (TGC between 1% and 5%), Brown shapes define mid Graphite Mineralisation (TGC between 5% and 10%), and Grey shapes define mid to high Graphite Mineralisation (TGC between 10% and 15%).

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Sectional View of Halberts South Deposit

Section perpendicular to mineralisation strike, looking towards 334 degrees. Green shapes define low Graphite Mineralisation (TGC between 1% and 5%), Brown shapes define mid Graphite Mineralisation (TGC between 5% and 10%), Light Grey shapes define mid to high Graphite Mineralisation (TGC between 10% and 15%), and Dark Grey shapes define high Graphite Mineralisation (TGC >15%).

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List of Air Core holes drilled at Munglinup

Project Prospect Hole_ID NAT_GRID_ID NAT_EAST **NAT_NORTH ** Elevation Survey
Method		 **Azimuth ** MAG_Azimuth Dip Max_Depth Company Drill_Date
Munglinup Halberts Main Zone GAMA001 GDA94 - MGA Zone 51 301627 6272591 85 GPS 256 255.857 -60 38.0 Graphite Australia 12/03/2013
Munglinup Halberts Main Zone GAMA002 GDA94 - MGA Zone 51 301647 6272596 83 GPS 255 254.857 -60 26.0 Graphite Australia 13/03/2013
Munglinup Halberts Main Zone GAMA003 GDA94 - MGA Zone 51 301668 6272603 83 GPS 256 255.857 -60 31.0 Graphite Australia 13/03/2013
Munglinup Halberts Main Zone GAMA004 GDA94 - MGA Zone 51 301683 6272606 81 GPS 265 264.857 -60 31.0 Graphite Australia 13/03/2013
Munglinup Halberts Main Zone GAMA005 GDA94 - MGA Zone 51 301632 6272633 87 GPS 258 257.857 -60 27.0 Graphite Australia 13/03/2013
Munglinup Halberts Main Zone GAMA006 GDA94 - MGA Zone 51 301652 6272636 84 GPS 258 257.857 -60 43.0 Graphite Australia 13/03/2013
Munglinup Halberts Main Zone GAMA007 GDA94 - MGA Zone 51 301595 6272710 90 GPS 256 255.857 -60 39.0 Graphite Australia 13/03/2013
Munglinup Halberts Main Zone GAMA008 GDA94 - MGA Zone 51 301614 6272714 90 GPS 256 255.857 -60 45.0 Graphite Australia 14/03/2013
Munglinup Halberts Main Zone GAMA009 GDA94 - MGA Zone 51 301633 6272718 88 GPS 258 257.857 -60 61.0 Graphite Australia 14/03/2013
Munglinup Halberts Main Zone GAMA010 GDA94 - MGA Zone 51 301501 6272769 91 GPS 254 253.857 -60 36.0 Graphite Australia 14/03/2013
Munglinup Halberts Main Zone GAMA011 GDA94 - MGA Zone 51 301523 6272772 93 GPS 255 254.857 -60 45.0 Graphite Australia 14/03/2013
Munglinup Halberts Main Zone GAMA012 GDA94 - MGA Zone 51 301541 6272775 94 GPS 257 256.857 -60 30.0 Graphite Australia 14/03/2013
Munglinup Halberts Main Zone GAMA013 GDA94 - MGA Zone 51 301561 6272780 93 GPS 256 255.857 -60 32.0 Graphite Australia 14/03/2013
Munglinup Halberts Main Zone GAMA014 GDA94 - MGA Zone 51 301580 6272785 92 GPS 258 257.857 -60 2.0 Graphite Australia 14/03/2013
Munglinup Halberts Main Zone GAMA015 GDA94 - MGA Zone 51 301599 6272791 91 GPS 259 258.857 -60 48.0 Graphite Australia 14/03/2013
Munglinup Halberts Main Zone GAMA016 GDA94 - MGA Zone 51 301614 6272793 92 GPS 256 255.857 -60 59.0 Graphite Australia 19/03/2013
Munglinup Halberts Main Zone GAMA017 GDA94 - MGA Zone 51 301540 6272860 94 GPS 257 256.857 -60 19.4 Graphite Australia 19/03/2013
Munglinup Halberts Main Zone GAMA018 GDA94 - MGA Zone 51 301556 6272863 94 GPS 257 256.857 -60 11.0 Graphite Australia 19/03/2013
Munglinup Halberts Main Zone GAMA019 GDA94 - MGA Zone 51 301577 6272871 93 GPS 253 252.857 -60 16.4 Graphite Australia 19/03/2013
Munglinup Halberts Main Zone GAMA020 GDA94 - MGA Zone 51 301515 6272938 94 GPS 258 257.857 -60 34.0 Graphite Australia 19/03/2013
Munglinup Halberts Main Zone GAMA021 GDA94 - MGA Zone 51 301534 6272941 97 GPS 251 250.857 -60 31.0 Graphite Australia 19/03/2013
Munglinup Halberts Main Zone GAMA022 GDA94 - MGA Zone 51 301551 6272946 96 GPS 250 249.857 -60 23.0 Graphite Australia 19/03/2013
Munglinup Halberts Main Zone GAMA023 GDA94 - MGA Zone 51 301492 6273023 98 GPS 265 264.857 -60 23.0 Graphite Australia 19/03/2013
Munglinup Halberts Main Zone GAMA024 GDA94 - MGA Zone 51 301511 6273022 99 GPS 256 255.857 -60 8.0 Graphite Australia 19/03/2013
Munglinup Halberts Main Zone GAMA025 GDA94 - MGA Zone 51 301531 6273023 98 GPS 256 255.857 -60 48.0 Graphite Australia 19/03/2013
Munglinup Halberts Main Zone GAMA026 GDA94 - MGA Zone 51 301469 6273177 93 GPS 256 255.857 -60 17.0 Graphite Australia 20/03/2013
Munglinup Halberts Main Zone GAMA027 GDA94 - MGA Zone 51 301491 6273181 92 GPS 259 258.857 -60 42.0 Graphite Australia 20/03/2013
Munglinup Halberts Main Zone GAMA028 GDA94 - MGA Zone 51 301510 6273181 94 GPS 262 261.857 -60 23.0 Graphite Australia 20/03/2013
Munglinup Harris GAMA029 GDA94 - MGA Zone 51 301837 6273152 96 GPS 305 304.857 -60 60.0 Graphite Australia 20/03/2013
Munglinup Harris GAMA030 GDA94 - MGA Zone 51 301852 6273143 97 GPS 306 305.857 -60 25.0 Graphite Australia 20/03/2013
Munglinup Harris GAMA031 GDA94 - MGA Zone 51 301819 6273224 98 GPS 307 306.857 -60 35.0 Graphite Australia 20/03/2013
Munglinup Harris GAMA032 GDA94 - MGA Zone 51 301833 6273214 98 GPS 309 308.857 -60 48.0 Graphite Australia 20/03/2013
Munglinup Harris GAMA033 GDA94 - MGA Zone 51 301850 6273201 98 GPS 301 300.857 -60 45.0 Graphite Australia 20/03/2013
Munglinup Harris GAMA034 GDA94 - MGA Zone 51 301864 6273187 96 GPS 307 306.857 -60 51.0 Graphite Australia 21/03/2013
Munglinup Harris GAMA035 GDA94 - MGA Zone 51 301876 6273173 95 GPS 308 307.857 -60 49.0 Graphite Australia 21/03/2013
Munglinup Harris GAMA036 GDA94 - MGA Zone 51 301893 6273162 95 GPS 308 307.857 -60 47.0 Graphite Australia 21/03/2013
Munglinup Harris GAMA037 GDA94 - MGA Zone 51 301867 6273287 103 GPS 308 307.857 -60 27.0 Graphite Australia 21/03/2013

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Project Prospect Hole_ID NAT_GRID_ID NAT_EAST **NAT_NORTH ** Elevation Survey
Method		 **Azimuth ** MAG_Azimuth Dip Max_Depth Company Drill_Date
Munglinup Halberts South GAMA038 GDA94 - MGA Zone 51 301747 6271584 73 GPS 240 239.857 -60 21.0 Graphite Australia 23/03/2013
Munglinup Halberts South GAMA039 GDA94 - MGA Zone 51 301764 6271594 74 GPS 239 238.857 -60 13.0 Graphite Australia 23/03/2013
Munglinup Halberts South GAMA040 GDA94 - MGA Zone 51 301781 6271605 76 GPS 241 240.857 -60 31.0 Graphite Australia 23/03/2013
Munglinup Halberts South GAMA041 GDA94 - MGA Zone 51 301768 6271551 75 GPS 245 244.857 -60 9.0 Graphite Australia 23/03/2013
Munglinup Halberts South GAMA042 GDA94 - MGA Zone 51 301757 6271546 74 GPS 245 244.857 -60 22.0 Graphite Australia 23/03/2013
Munglinup Halberts South GAMA043 GDA94 - MGA Zone 51 301785 6271561 77 GPS 242 241.857 -60 26.0 Graphite Australia 23/03/2013
Munglinup Halberts South GAMA044 GDA94 - MGA Zone 51 301804 6271569 77 GPS 247 246.857 -60 38.0 Graphite Australia 23/03/2013
Munglinup Halberts South GAMA045 GDA94 - MGA Zone 51 301787 6271517 78 GPS 243 242.857 -60 31.0 Graphite Australia 24/03/2013
Munglinup Halberts South GAMA046 GDA94 - MGA Zone 51 301802 6271527 78 GPS 241 240.857 -60 20.0 Graphite Australia 24/03/2013
Munglinup Halberts South GAMA047 GDA94 - MGA Zone 51 301822 6271536 78 GPS 244 243.857 -60 18.0 Graphite Australia 24/03/2013
Munglinup Halberts South GAMA048 GDA94 - MGA Zone 51 301813 6271532 79 GPS 245 244.857 -60 28.0 Graphite Australia 24/03/2013
Munglinup Halberts South GAMA049 GDA94 - MGA Zone 51 301810 6271474 79 GPS 235 234.857 -60 36.0 Graphite Australia 24/03/2013
Munglinup Halberts South GAMA050 GDA94 - MGA Zone 51 301825 6271483 79 GPS 239 238.857 -60 20.0 Graphite Australia 24/03/2013
Munglinup Halberts South GAMA051 GDA94 - MGA Zone 51 301843 6271493 80 GPS 244 243.857 -60 3.0 Graphite Australia 24/03/2013
Munglinup Halberts South GAMA052 GDA94 - MGA Zone 51 301817 6271437 78 GPS 242 241.857 -60 27.0 Graphite Australia 24/03/2013
Munglinup Halberts South GAMA053 GDA94 - MGA Zone 51 301826 6271442 78 GPS 242 241.857 -60 2.0 Graphite Australia 24/03/2013
Munglinup Halberts South GAMA054 GDA94 - MGA Zone 51 301821 6271405 78 GPS 245 244.857 -60 22.0 Graphite Australia 24/03/2013
Munglinup Halberts South GAMA055 GDA94 - MGA Zone 51 301831 6271411 78 GPS 242 241.857 -60 33.0 Graphite Australia 24/03/2013
Munglinup Halberts South GAMA056 GDA94 - MGA Zone 51 301850 6271420 79 GPS 243 242.857 -60 4.0 Graphite Australia 24/03/2013
Munglinup Halberts South GAMA057 GDA94 - MGA Zone 51 301857 6271424 81 GPS 242 241.857 -60 12.0 Graphite Australia 24/03/2013
Munglinup Halberts South GAMA058 GDA94 - MGA Zone 51 301866 6271426 80 GPS 242 241.857 -60 3.0 Graphite Australia 24/03/2013
Munglinup Halberts South GAMA059 GDA94 - MGA Zone 51 301847 6271364 81 GPS 243 242.857 -60 25.0 Graphite Australia 24/03/2013
Munglinup Halberts South GAMA060 GDA94 - MGA Zone 51 301857 6271368 81 GPS 241 240.857 -60 9.0 Graphite Australia 24/03/2013
Munglinup Halberts South GAMA061 GDA94 - MGA Zone 51 301864 6271373 81 GPS 242 241.857 -60 48.0 Graphite Australia 25/03/2013
Munglinup Halberts South GAMA062 GDA94 - MGA Zone 51 301872 6271377 82 GPS 242 241.857 -60 40.2 Graphite Australia 25/03/2013
Munglinup Halberts South GAMA063 GDA94 - MGA Zone 51 301881 6271378 83 GPS 239 238.857 -60 46.0 Graphite Australia 25/03/2013
Munglinup Halberts South GAMA064 GDA94 - MGA Zone 51 301866 6271335 79 GPS 242 241.857 -60 25.0 Graphite Australia 25/03/2013
Munglinup Halberts South GAMA065 GDA94 - MGA Zone 51 301875 6271338 81 GPS 243 242.857 -60 42.0 Graphite Australia 25/03/2013
Munglinup Halberts South GAMA066 GDA94 - MGA Zone 51 301884 6271343 80 GPS 238 237.857 -60 23.2 Graphite Australia 25/03/2013
Munglinup Halberts South GAMA067 GDA94 - MGA Zone 51 301892 6271348 81 GPS 243 242.857 -60 61.0 Graphite Australia 25/03/2013
Munglinup Halberts South GAMA068 GDA94 - MGA Zone 51 301890 6271294 81 GPS 239 238.857 -60 32.0 Graphite Australia 25/03/2013
Munglinup Halberts South GAMA069 GDA94 - MGA Zone 51 301898 6271300 81 GPS 238 237.857 -60 35.0 Graphite Australia 25/03/2013
Munglinup Halberts South GAMA070 GDA94 - MGA Zone 51 301907 6271306 82 GPS 238 237.857 -60 13.2 Graphite Australia 25/03/2013
Munglinup Halberts South GAMA071 GDA94 - MGA Zone 51 301916 6271310 82 GPS 241 240.857 -60 35.0 Graphite Australia 25/03/2013
Munglinup Halberts South GAMA072 GDA94 - MGA Zone 51 301916 6271276 83 GPS 243 242.857 -60 36.0 Graphite Australia 26/03/2013
Munglinup Halberts South GAMA073 GDA94 - MGA Zone 51 301926 6271279 81 GPS 242 241.857 -60 43.0 Graphite Australia 27/03/2013
Munglinup Halberts South GAMA074 GDA94 - MGA Zone 51 301932 6271284 83 GPS 242 241.857 -60 54.0 Graphite Australia 27/03/2013
Munglinup Halberts South GAMA075 GDA94 - MGA Zone 51 301930 6271231 79 GPS 239 238.857 -60 38.0 Graphite Australia 28/03/2013
Munglinup Halberts South GAMA076 GDA94 - MGA Zone 51 301941 6271232 81 GPS 236 235.857 -60 31.0 Graphite Australia 29/03/2013
Munglinup Halberts South GAMA077 GDA94 - MGA Zone 51 301949 6271238 81 GPS 241 240.857 -60 45.5 Graphite Australia 30/03/2013
Munglinup Halberts South GAMA078 GDA94 - MGA Zone 51 301952 6271242 82 GPS 241 240.857 -60 21.0 Graphite Australia 31/03/2013
Min ~~l C~~
Munglinup		 ~~ii Ld l~~
Halberts South		 ~~Aiii~~
GAMA079		 ~~f h id~~
GDA94 - MGA Zone 51		 ~~dd 30 S~~
301949		 ~~b 2017~~
6271200
77		 GPS ~~P 4~~
241
240.857		 -60 61.0 Graphite Australia 28/03/2013
~~era ommo~~
Munglinup		 ~~tes t Quarter~~
Halberts South		 ~~y ctvtes~~
GAMA080		 ~~eport or te pero e~~
GDA94 - MGA Zone 51		 ~~ne ep~~
301956		 ~~emer~~
6271204
78		 GPS ~~age~~
244		 ~~ ~~
243.857		 -60 25.0

==> picture [63 x 39] intentionally omitted <==

==> picture [729 x 350] intentionally omitted <==

----- Start of picture text -----

Survey
Project Prospect Hole_ID NAT_GRID_ID NAT_EAST NAT_NORTH Elevation Azimuth MAG_Azimuth Dip Max_Depth Company Drill_Date
Method
Munglinup Halberts South GAMA081 GDA94 - MGA Zone 51 301965 6271208 78 GPS 244 243.857 -60 28.0 Graphite Australia 28/03/2013
Munglinup Halberts South GAMA082 GDA94 - MGA Zone 51 301973 6271209 79 GPS 242 241.857 -60 38.0 Graphite Australia 28/03/2013
Munglinup Halberts South GAMA083 GDA94 - MGA Zone 51 301977 6271166 76 GPS 244 243.857 -60 29.0 Graphite Australia 28/03/2013
Munglinup Halberts South GAMA084 GDA94 - MGA Zone 51 301988 6271171 75 GPS 242 241.857 -60 30.0 Graphite Australia 28/03/2013
Munglinup Halberts South GAMA085 GDA94 - MGA Zone 51 301995 6271174 76 GPS 242 241.857 -60 17.0 Graphite Australia 28/03/2013
Munglinup Halberts South GAMA086 GDA94 - MGA Zone 51 301994 6271135 73 GPS 242 241.857 -60 14.0 Graphite Australia 29/03/2013
Munglinup Halberts South GAMA087 GDA94 - MGA Zone 51 302002 6271138 74 GPS 243 242.857 -60 23.0 Graphite Australia 29/03/2013
Munglinup Halberts Main Zone GAMA088 GDA94 - MGA Zone 51 301656 6272601 84 GPS 257 256.857 -60 34.0 Graphite Australia 29/03/2013
Munglinup Halberts Main Zone GAMA089 GDA94 - MGA Zone 51 301623 6272633 87 GPS 257 256.857 -60 26.0 Graphite Australia 29/03/2013
Munglinup Wright GAMA090 GDA94 - MGA Zone 51 301913 6273561 107 GPS 315 314.857 -60 23.0 Graphite Australia 29/03/2013
Munglinup Wright GAMA091 GDA94 - MGA Zone 51 301925 6273551 108 GPS 310 309.857 -60 11.0 Graphite Australia 29/03/2013
Munglinup Wright GAMA092 GDA94 - MGA Zone 51 301918 6273556 107 GPS 310 309.857 -60 25.0 Graphite Australia 29/03/2013
Munglinup Wright GAMA093 GDA94 - MGA Zone 51 301936 6273602 110 GPS 318 317.857 -60 16.0 Graphite Australia 29/03/2013
Munglinup Wright GAMA094 GDA94 - MGA Zone 51 301943 6273594 109 GPS 320 319.857 -60 18.0 Graphite Australia 29/03/2013
Munglinup Wright GAMA095 GDA94 - MGA Zone 51 301953 6273627 111 GPS 308 307.857 -60 13.0 Graphite Australia 29/03/2013
Munglinup Wright GAMA096 GDA94 - MGA Zone 51 301958 6273621 110 GPS 310 309.857 -60 17.0 Graphite Australia 29/03/2013
Munglinup Wright GAMA097 GDA94 - MGA Zone 51 301966 6273616 111 GPS 310 309.857 -60 21.0 Graphite Australia 29/03/2013
Munglinup Wright GAMA098 GDA94 - MGA Zone 51 301994 6273655 113 GPS 318 317.857 -60 12.0 Graphite Australia 29/03/2013
Munglinup Wright GAMA099 GDA94 - MGA Zone 51 302000 6273648 113 GPS 310 309.857 -60 17.0 Graphite Australia 29/03/2013
Munglinup Wright GAMA100 GDA94 - MGA Zone 51 302031 6273674 117 GPS 311 310.857 -60 17.0 Graphite Australia 30/03/2013
Munglinup Wright GAMA101 GDA94 - MGA Zone 51 302041 6273666 115 GPS 312 311.857 -60 21.0 Graphite Australia 30/03/2013
Munglinup Wright GAMA102 GDA94 - MGA Zone 51 302048 6273660 113 GPS 314 313.857 -60 27.0 Graphite Australia 30/03/2013
Munglinup Wright GAMA103 GDA94 - MGA Zone 51 302057 6273653 113 GPS 313 312.857 -60 22.0 Graphite Australia 30/03/2013
Munglinup Wright GAMA104 GDA94 - MGA Zone 51 302063 6273647 113 GPS 307 306.857 -60 10.0 Graphite Australia 30/03/2013
Munglinup Wright GAMA105 GDA94 - MGA Zone 51 302059 6273702 116 GPS 315 314.857 -60 17.0 Graphite Australia 30/03/2013
Munglinup Wright GAMA106 GDA94 - MGA Zone 51 302068 6273697 116 GPS 315 314.857 -60 21.0 Graphite Australia 30/03/2013
Munglinup Wright GAMA107 GDA94 - MGA Zone 51 302073 6273689 116 GPS 305 304.857 -60 6.0 Graphite Australia 30/03/2013
Munglinup Wright GAMA108 GDA94 - MGA Zone 51 301800 6273435 100 GPS 314 313.857 -60 14.0 Graphite Australia 30/03/2013
Munglinup Wright GAMA109 GDA94 - MGA Zone 51 301821 6273420 100 GPS 314 313.857 -60 22.0 Graphite Australia 30/03/2013
Munglinup Wright GAMA110 GDA94 - MGA Zone 51 301833 6273404 99 GPS 310 309.857 -60 31.0 Graphite Australia 30/03/2013
----- End of picture text -----

Mineral Commodities Ltd | Quarterly Activities Report for the period ended 30 September 2017

Page 47 |

==> picture [63 x 39] intentionally omitted <==

Project Prospect Hole_ID NAT_GRID_ID NAT_EAST **NAT_NORTH ** Elevation Survey
Method		 **Azimuth ** MAG_Azimuth Dip Max_Depth Company Drill_Date
Munglinup Harris GAMA111 GDA94 - MGA Zone 51 301819 6273171 97 GPS 308 307.857 -60 49.0 Graphite Australia 30/03/2013
Munglinup Harris GAMA112 GDA94 - MGA Zone 51 301808 6273182 97 GPS 313 312.857 -60 45.0 Graphite Australia 30/03/2013
Munglinup Harris GAMA113 GDA94 - MGA Zone 51 301785 6273148 93 GPS 308 307.857 -60 53.0 Graphite Australia 31/03/2013
Munglinup Harris GAMA114 GDA94 - MGA Zone 51 301800 6273138 93 GPS 312 311.857 -60 49.0 Graphite Australia 31/03/2013
Munglinup Harris GAMA115 GDA94 - MGA Zone 51 301816 6273123 93 GPS 310 309.857 -60 31.0 Graphite Australia 31/03/2013
Munglinup Harris GAMA116 GDA94 - MGA Zone 51 301881 6273275 103 GPS 310 309.857 -60 22.0 Graphite Australia 31/03/2013
Munglinup Harris GAMA117 GDA94 - MGA Zone 51 301897 6273265 99 GPS 306 305.857 -60 24.2 Graphite Australia 31/03/2013
Munglinup Harris GAMA118 GDA94 - MGA Zone 51 301912 6273253 103 GPS 308 307.857 -60 45.0 Graphite Australia 31/03/2013
Munglinup Harris GAMA119 GDA94 - MGA Zone 51 301984 6273350 107 GPS 311 310.857 -60 24.0 Graphite Australia 1/04/2013
Munglinup Harris GAMA120 GDA94 - MGA Zone 51 302001 6273336 105 GPS 313 312.857 -60 33.0 Graphite Australia 1/04/2013
Munglinup Harris GAMA121 GDA94 - MGA Zone 51 302016 6273321 105 GPS 311 310.857 -60 17.0 Graphite Australia 1/04/2013
Munglinup Harris GAMA122 GDA94 - MGA Zone 51 302029 6273309 102 GPS 312 311.857 -60 31.0 Graphite Australia 1/04/2013
Munglinup Harris GAMA123 GDA94 - MGA Zone 51 302044 6273298 102 GPS 305 304.857 -60 40.0 Graphite Australia 1/04/2013
Munglinup Harris GAMA124 GDA94 - MGA Zone 51 302006 6273383 105 GPS 305 304.857 -60 34.0 Graphite Australia 1/04/2013
Munglinup Harris GAMA125 GDA94 - MGA Zone 51 302020 6273372 103 GPS 310 309.857 -60 45.0 Graphite Australia 1/04/2013
Munglinup Harris GAMA126 GDA94 - MGA Zone 51 302036 6273359 104 GPS 312 311.857 -60 57.0 Graphite Australia 1/04/2013
Munglinup Harris GAMA127 GDA94 - MGA Zone 51 302048 6273346 103 GPS 305 304.857 -60 31.0 Graphite Australia 1/04/2013
Munglinup Harris GAMA128 GDA94 - MGA Zone 51 302043 6273400 105 GPS 312 311.857 -60 31.0 Graphite Australia 1/04/2013
Munglinup Harris GAMA129 GDA94 - MGA Zone 51 302061 6273387 105 GPS 309 308.857 -60 23.0 Graphite Australia 1/04/2013
Munglinup McCarthy GAMA130 GDA94 - MGA Zone 51 301539 6273763 102 GPS 310 309.857 -60 9.0 Graphite Australia 2/04/2013
Munglinup McCarthy GAMA131 GDA94 - MGA Zone 51 301556 6273749 103 GPS 310 309.857 -60 12.0 Graphite Australia 2/04/2013
Munglinup McCarthy GAMA132 GDA94 - MGA Zone 51 301588 6273716 103 GPS 301 300.857 -60 18.0 Graphite Australia 2/04/2013
Munglinup McCarthy GAMA133 GDA94 - MGA Zone 51 301607 6273702 102 GPS 305 304.857 -60 29.0 Graphite Australia 2/04/2013
Munglinup McCarthy GAMA134 GDA94 - MGA Zone 51 301552 6273803 102 GPS 305 304.857 -60 6.0 Graphite Australia 2/04/2013
Munglinup McCarthy GAMA135 GDA94 - MGA Zone 51 301569 6273794 103 GPS 304 303.857 -60 17.0 Graphite Australia 2/04/2013
Munglinup McCarthy GAMA136 GDA94 - MGA Zone 51 301583 6273784 103 GPS 306 305.857 -60 5.0 Graphite Australia 2/04/2013
Munglinup McCarthy GAMA137 GDA94 - MGA Zone 51 301604 6273764 104 GPS 314 313.857 -60 1.0 Graphite Australia 2/04/2013
Munglinup McCarthy GAMA138 GDA94 - MGA Zone 51 301620 6273748 104 GPS 316 315.857 -60 21.0 Graphite Australia 2/04/2013
Munglinup McCarthy GAMA139 GDA94 - MGA Zone 51 301636 6273733 105 GPS 319 318.857 -60 9.0 Graphite Australia 2/04/2013
Munglinup McCarthy GAMA140 GDA94 - MGA Zone 51 301611 6273757 105 GPS 314 313.857 -60 17.0 Graphite Australia 2/04/2013
Munglinup McCarthy GAMA141 GDA94 - MGA Zone 51 301599 6273831 106 GPS 295 294.857 -60 17.5 Graphite Australia 2/04/2013
Munglinup McCarthy GAMA142 GDA94 - MGA Zone 51 301617 6273818 106 GPS 318 317.857 -60 33.0 Graphite Australia 2/04/2013
Munglinup McCarthy GAMA143 GDA94 - MGA Zone 51 301626 6273803 106 GPS 319 318.857 -60 8.0 Graphite Australia 2/04/2013
Munglinup McCarthy GAMA144 GDA94 - MGA Zone 51 301641 6273786 104 GPS 312 311.857 -60 11.0 Graphite Australia 2/04/2013
Munglinup McCarthy GAMA145 GDA94 - MGA Zone 51 301655 6273775 104 GPS 305 304.857 -60 19.3 Graphite Australia 2/04/2013
Munglinup McCarthy GAMA146 GDA94 - MGA Zone 51 301605 6273862 108 GPS 307 306.857 -60 25.0 Graphite Australia 2/04/2013
Munglinup McCarthy GAMA147 GDA94 - MGA Zone 51 301618 6273850 109 GPS 313 312.857 -60 31.0 Graphite Australia 3/04/2013
Munglinup McCarthy GAMA148 GDA94 - MGA Zone 51 301635 6273837 109 GPS 310 309.857 -60 43.0 Graphite Australia 3/04/2013
Munglinup McCarthy GAMA149 GDA94 - MGA Zone 51 301648 6273821 108 GPS 305 304.857 -60 53.0 Graphite Australia 3/04/2013
Munglinup McCarthy GAMA150 GDA94 - MGA Zone 51 301664 6273806 107 GPS 303 302.857 -60 46.0 Graphite Australia 3/04/2013
Munglinup McCarthy GAMA151 GDA94 - MGA Zone 51 301681 6273796 107 GPS 308 307.857 -60 2.0 Graphite Australia 3/04/2013
Min ~~eral Commo~~
Munglinup		 ~~dities Ltd Quarterl~~
McCarthy		 ~~Activities~~
GAMA152		 ~~eort for the eriod e~~
GDA94 - MGA Zone 51		 ~~nded 30 Se~~
301673		 ~~ember 2017~~
6273802		 108 GPS ~~Pae 4~~
310		 ~~ ~~
309.857		 -60 11.0

Munglinup
McCarthy		 ~~y~~
GAMA153		 ~~p p~~
GDA94 - MGA Zone 51		 ~~p~~
301633
6273873		 111 GPS ~~g~~
323
322.857		 -60 18.0 Graphite Australia 3/04/2013
Munglinup McCarthy GAMA154 GDA94 - MGA Zone 51 301646 6273862 112 GPS 311 310.857 -60 27.0 Graphite Australia 3/04/2013
Munglinup McCarthy GAMA155 GDA94 - MGA Zone 51 301661 6273850 112 GPS 308 307.857 -60 38.0 Graphite Australia 3/04/2013

==> picture [63 x 39] intentionally omitted <==

Project Prospect Hole_ID NAT_GRID_ID NAT_EAST **NAT_NORTH ** Elevation Survey
Method
 **Azimuth ** MAG_Azimuth Dip Max_Depth Company Drill_Date
Munglinup McCarthy GAMA156 GDA94 - MGA Zone 51 301680 6273840 109 GPS 298 297.857 -60 30.0 Graphite Australia 3/04/2013
Munglinup McCarthy GAMA157 GDA94 - MGA Zone 51 301690 6273833 110 GPS 301 300.857 -60 41.0 Graphite Australia 3/04/2013
Munglinup McCarthy GAMA158 GDA94 - MGA Zone 51 301674 6273898 114 GPS 305 304.857 -60 14.0 Graphite Australia 4/04/2013
Munglinup McCarthy GAMA159 GDA94 - MGA Zone 51 301691 6273886 112 GPS 314 313.857 -60 23.0 Graphite Australia 4/04/2013
Munglinup McCarthy GAMA160 GDA94 - MGA Zone 51 301707 6273872 111 GPS 315 314.857 -60 10.0 Graphite Australia 4/04/2013
Munglinup McCarthy GAMA161 GDA94 - MGA Zone 51 301714 6273865 110 GPS 315 314.857 -60 25.0 Graphite Australia 4/04/2013

List of Diamond drill holes drilled at Munglinup

Project Prospect Hole_ID NAT_GRID_ID NAT_EAST NAT_NORTH Elevation Survey
Method		 **Azimuth ** MAG_Azimuth Dip Max_Depth Drill_Date Company
Munglinup Halbert's Main Zone GAMD005 GDA94 - MGA Zone 51 301531 6273145 99 GPS 260 259.857 -60 67.0 28/04/2013 Graphite Australia
Munglinup Halbert's Main Zone GAMD004 GDA94 - MGA Zone 51 301487 6273133 98 GPS 258 257.857 -60 52.0 27/04/2013 Graphite Australia
Munglinup Halbert's Main Zone GAMD002 GDA94 - MGA Zone 51 301515 6273105 98 GPS 258 257.857 -60 55.0 24/04/2013 Graphite Australia
Munglinup Halbert's Main Zone GAMD003 GDA94 - MGA Zone 51 301494 6273100 100 GPS 258 257.857 -60 33.8 26/04/2013 Graphite Australia
Munglinup Halbert's Main Zone GAMD001 GDA94 - MGA Zone 51 301538 6273105 100 GPS 258 257.857 -60 79.0 23/04/2013 Graphite Australia
Munglinup Halbert's Main Zone GAMD006 GDA94 - MGA Zone 51 301545 6273069 103 GPS 258 257.857 -60 66.8 29/04/2013 Graphite Australia
Munglinup Halbert's Main Zone GAMD008 GDA94 - MGA Zone 51 301513 6273025 96 GPS 258 257.857 -60 57.1 2/05/2013 Graphite Australia
Munglinup Halbert's Main Zone GAMD007 GDA94 - MGA Zone 51 301543 6273030 96 GPS 258 257.857 -60 78.2 1/05/2013 Graphite Australia
Munglinup Halbert's Main Zone GAMD009 GDA94 - MGA Zone 51 301489 6272982 87 GPS 258 257.857 -60 48.9 3/05/2013 Graphite Australia
Munglinup Halbert's Main Zone GAMD010 GDA94 - MGA Zone 51 301533 6272981 98 GPS 258 257.857 -60 91.0 4/05/2013 Graphite Australia
Munglinup Halbert's Main Zone GAMD011 GDA94 - MGA Zone 51 301571 6272994 100 GPS 258 257.857 -60 77.0 5/05/2013 Graphite Australia
Munglinup Halbert's Main Zone GAMD012 GDA94 - MGA Zone 51 301559 6272945 101 GPS 258 257.857 -60 54.3 6/05/2013 Graphite Australia
Munglinup Halbert's Main Zone GAMD013 GDA94 - MGA Zone 51 301575 6272949 99 GPS 258 257.857 -60 71.8 7/05/2013 Graphite Australia
Munglinup Halbert's Main Zone GAMD020 GDA94 - MGA Zone 51 301517 6272898 98 GPS 258 257.857 -60 40.0 13/05/2013 Graphite Australia
Munglinup Halbert's Main Zone GAMD014 GDA94 - MGA Zone 51 301600 6272913 101 GPS 258 257.857 -60 70.0 8/05/2013 Graphite Australia
Munglinup Halbert's Main Zone GAMD015 GDA94 - MGA Zone 51 301544 6272863 95 GPS 258 257.857 -60 37.0 9/05/2013 Graphite Australia
Munglinup Halbert's Main Zone GAMD016 GDA94 - MGA Zone 51 301580 6272870 97 GPS 258 257.857 -60 69.7 10/05/2013 Graphite Australia
Munglinup Halbert's Main Zone GAMD017 GDA94 - MGA Zone 51 301602 6272877 98 GPS 258 257.857 -60 73.6 11/05/2013 Graphite Australia
Munglinup Halbert's Main Zone GAMD018 GDA94 - MGA Zone 51 301625 6272840 96 GPS 258 257.857 -60 87.90 12/05/2013 Graphite Australia
Munglinup Halbert's Main Zone GAMD019 GDA94 - MGA Zone 51 301599 6272833 99 GPS 258 257.857 -60 66.10 13/05/2013 Graphite Australia
Munglinup Halbert's Main Zone GAMD022 GDA94 - MGA Zone 51 301580 6272788 100 GPS 258 257.857 -60 57.90 16/05/2013 Graphite Australia
Munglinup Halbert's Main Zone GAMD021 GDA94 - MGA Zone 51 301628 6272798 98 GPS 258 257.857 -60 91.00 15/05/2013 Graphite Australia

Mineral Commodities Ltd | Quarterly Activities Report for the period ended 30 September 2017

Page 49 |

==> picture [63 x 39] intentionally omitted <==

Project Prospect Hole_ID NAT_GRID_ID NAT_EAST NAT_NORTH Elevation Survey
Method		 **Azimuth ** MAG_Azimuth Dip Max_Depth Drill_Date Company
Munglinup Halbert's Main Zone MD1 GDA94 - MGA Zone 51 301460 6273053 100 260 259.857 -60 35.0 2/02/1986 Gwalia Minerals NL
Munglinup Halbert's Main Zone MD2 GDA94 - MGA Zone 51 301486 6273059 101 260 259.357 -60 52.0 7/02/1986 Gwalia Minerals NL
Munglinup Halbert's Main Zone MD3 GDA94 - MGA Zone 51 301509 6273065 102 260 259.857 -60 56.5 4/02/1986 Gwalia Minerals NL
Munglinup Halbert's Main Zone MD4 GDA94 - MGA Zone 51 301543 6272827 99 260 259.857 -60 33.0 12/02/1986 Gwalia Minerals NL
Munglinup Halbert's Main Zone MD5 GDA94 - MGA Zone 51 301567 6272833 99 260 259.857 -60 45.0 9/02/1986 Gwalia Minerals NL
Munglinup Halbert's Main Zone MD6 GDA94 - MGA Zone 51 301591 6272839 100 260 259.857 -60 36.0 13/02/1986 Gwalia Minerals NL
Munglinup Halbert's Main Zone MD7 GDA94 - MGA Zone 51 301486 6273141 101 257 256.857 -60 52.0 27/?/1988 Gwalia Minerals NL
Munglinup Halbert's Main Zone MD8 GDA94 - MGA Zone 51 301444 6273122 99 257 256.857 -60 37.5 2/07/1988 Gwalia Minerals NL
Munglinup Halbert's Main Zone MD9 GDA94 - MGA Zone 51 301489 6272977 101 257 256.857 -60 34.6 5/07/1988 Gwalia Minerals NL
Munglinup Halbert's Main Zone MD10 GDA94 - MGA Zone 51 301536 6272990 103 257 256.857 -60 61.1 8/07/1988 Gwalia Minerals NL
Munglinup Halbert's Main Zone MD11 GDA94 - MGA Zone 51 301561 6272914 103 256 255.857 -60 56.5 11/07/1988 Gwalia Minerals NL
Munglinup Halbert's Main Zone MD12 GDA94 - MGA Zone 51 301536 6272907 102 257 256.357 -60 54.5 14/07/1988 Gwalia Minerals NL
Munglinup Halbert's Main Zone MD13 GDA94 - MGA Zone 51 301570 6272751 98 257 256.857 -60 33.8 18/07/1988 Gwalia Minerals NL
Munglinup Halbert's Main Zone MD14 GDA94 - MGA Zone 51 301594 6272758 98 257 256.857 -60 50.0 20/07/1988 Gwalia Minerals NL
Munglinup Halbert's Main Zone MD15 GDA94 - MGA Zone 51 301614 6272677 96 257 256.857 -60 40.5 22/07/1988 Gwalia Minerals NL
Munglinup Halbert's Main Zone MD16 GDA94 - MGA Zone 51 301637 6272684 95 257 256.857 -60 51.0 25/07/1988 Gwalia Minerals NL

Mineral Commodities Ltd | Quarterly Activities Report for the period ended 30 September 2017

Page 50 |

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