NEOMETALS LTD — Capital/Financing Update 2014

Mar 24, 2014

ABN 89 099 116 631

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Level 1, 672 Murray St West Perth WA 6005 Locked Bag 8 West Perth WA 6872 Tel: +61 8 9322 1182 Fax: +61 8 9321 0556

ASX RELEASE

25 March 2014

Nickel Exploration Update – EM Conductors and diamond drilling program

HIGHLIGHTS

• Moving Loop EM survey identifies 2 conductors

• Petrography identifies disseminated nickel sulphides in 1970’s WMC drill hole

• Diamond drilling to test conductors to commence immediately

Reed Resources Ltd (“Reed”) advises that extensions to the surface geophysical surveys at Green Dam Prospect have identified two MLEM conductors. Reed has the option to acquire 100% of tenements E16/305 & E16/330 which adjoin its 100% owned Mt Finnerty Project.

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The Mt Finnerty Project (Figure 1) is located 150 km northeast of Southern Cross, WA .

The moving loop survey (MLEM) was completed by Newexco and subcontractors in early March 2014.

A southern extension to the previous MLEM survey was located south of the massive sulphide vein intersected in GDD005, drilled last year. The northern extension was centred approximately 600m north of the PGEenriched intersections of the 2012 - RC drilling and the strongly geochemically anomalous Western Mining percussion drill hole RFP21 – reported previously.

Recent petrographic identification of disseminated nickel sulphides, pentlandite and millerite in RFP21 further confirm the prospectivity of the ultramafic unit to host massive nickel sulphides.

Figure 1. Project Location Plan

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Conductor MFC02, the conceptually high priority target in this northern section is interpreted to be sourced by a steeply dipping bedrock conductor. MFC02 is on the western side of a high-magnesian ultramafic of the Green Dam Ultramafic Complex (GDUC), and is interpreted to be close to a basal contact. It may represent a near surface expression of remobilised nickel sulphides.

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Figure 2. Nickel Targets on Interpreted Geology Figure 3. Nickel Targets on RTP Magnetics

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Conceptual Geological Model

Conductor MFC01 is coincident with the strike extension of a strong linear aeromagnetic trend that is located east wards of the centre of the widest aeromagnetic expression of the Green Dam Ultramafic Complex (GDUC). Previous exploration had also identified a strong IP response southwards along this eastern trend line. Subsequent drilling in GDD003 & 4, had penetrated massive iron sulphides with stringer chalcopyrite mineralisation (best 7,000ppm Cu). The potential for strong hydrothermal remobilisation of base metal sulphides along structures identified at Green Dam has been proposed by several consultant geologists. Target MFC01 therefore justifies drill testing to test for remobilised nickel associated with the sulphidic sediment / ultramafic contact.

Petrography

The drill hole chip samples from WMC’s RFP21 had previously been geochemically interpreted by a consultant geologist, Martin Gole, as being fertile and containing fine nickel sulphides. The best intersection from this hole is from 100 to 111m (EOH) and contained 11m @ 0.45%Ni). The core from RFP21 extension (for 0.5m) has recently been examined by a consultant petrologist, Roger Townend. Disseminated magnetite is abundant but it also contains very fine grained disseminated pentlandite with incipient millerite alteration. Photomicrographs of the pentlandite-millerite grains are attached as Figure 5. The previous petrographic examination of historic hole RFP103, some 3km southwards of RFP21 had identified fine grained pentlandite in a similar serpentine rim-replacement of the olivine cumulate.

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Figure 5. Cross Section

Drilling Program

The MLEM conductors will be tested with westerly-angled diamond drill holes targeted at the conductor core and will also be extended westwards to test the stratigraphy, and the basal contact in the case of the north western hole. The drilling will be partially funded by a Government of Western Australia - Exploration Incentive Scheme grant.

Project Strategy

Reed is reviewing the structure of its wholly owned subsidiary Reed Exploration Pty Ltd (“REX”), responsible for nickel exploration and holder of the option to acquire tenements E16/305 and 330. Reed’s aim is to maximise value to its existing shareholders and for REX to be independently financed as it focusses on its Mt Marion Lithium and Barrambie Titanium projects.

ENDS

For further information please contact:

Chris Reed Managing Director Reed Resources Ltd T: +61 89322 1182

Competent Persons Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Gordon Kelly, a Member of the Australian Institute of Geoscientists. Mr Kelly is a full-time employee of Reed Resources Ltd. Mr Kelly has sufficient experience which is relevant to the styles of mineralisation and types of deposits under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Kelly consents to the inclusion in this report of the matters based on his information in the form and context in which it appears above.

About Reed Resources

Reed Resources Ltd (ASX: RDR, OTC: RDRUY) is a Western Australian resource developer.

Reed Resources’ American Depositary Receipts (ADR’s) trade under the code RDRUY (CUSIP Number: 758254106). Each Reed Resources ADR is equivalent to 10 ordinary shares of Reed Resources as traded on the ASX. The Bank of New York Mellon is the depository bank.

Website: www.reedresources.com

JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data

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

Criteria	JORC Code explanation	Commentary
Sampling	• Nature and quality of sampling (eg cut channels, random chips, or	•Moving in-loop ground EM survey carried out at 200m line spacing
techniques	specific specialised industry standard measurement tools appropriate	using a SMARTem24 system by ElectroMagnetic Imaging
	to the minerals under investigation, such as down hole gamma	Technology Pty Ltd.
	sondes, or handheld XRF instruments, etc). These examples should	•EMIT Fluxgate sensor recording 3 orthogonal components: Bz, Bx
	not be taken as limiting the broad meaning of sampling.	and By.
	• Include reference to measures taken to ensure sample	•Survey done at ground level.
	“representivity” and the appropriate calibration of any measurement	•SMARTEM standard window times used for a transmitter frequency
	tools or systems used.	of 2.0833 Hz.
	• Aspects of the determination of mineralisation that are Material to the Public Report.	•200m x 200m transmitter loop producing a loop dipole moment for ~1200000 Am2.
	• In cases where ‘industry standard’ work has been done this would be	•Location of stations was accomplished with Garmin handheld GPS
	relatively simple (eg ‘reverse circulation drilling was used to obtain 1	units with an accuracy of +/- 4m.
	m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	•The samples taken for petrographic examination also included in this release have been taken from approximately half a metre of diamond drill core extending from the base of open hole percussion hole RFP21, drilled in 1968 by WMC. •Sampling of the HQ core was completed by Roger Townend &
		Associates at his Malaga offices. The samples were not pulverised
		but were selected as 2cm slabs of core, taken for routine polished
		slab preparation and reflected light petrographic examination.
		•The selected slabs were taken to be representative of the sulphide
		mineralisation visible in the core. The slabs were not taken for
		subsequent analytical determination of trace elements at a
		commercial laboratory.
		•One further hole discussed in the release, MF103, had been drilled by
		Arimco Australia in 1995. The geological logging at that time resulted
		in submission of a single RC rock chip sample for petrographic
		examination. This has been reported 19 years ago in a WAMEX
		archived report.
Drilling	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air	•Drilling was not conducted as part of this release.
techniques	blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple
	or standard tube, depth of diamond tails, face-sampling bit or other

1

Criteria	JORC Code explanation	Commentary
	_type, whether core is oriented and if so, by what method, etc). _
Drill sample	• Method of recording and assessing core and chip sample recoveries	•No samples of drilling chips or core were taken and no recording was
recovery	and results assessed.	required.
	• Measures taken to maximise sample recovery and ensure	•No drilling was completed and no recording of sample recovery or
	representative nature of the samples.	representative status of the samples was required.
	• Whether a relationship exists between sample recovery and grade	•No drilling was completed and no relationship between recovery,
	and whether sample bias may have occurred due to preferential	grade, bias and loss of material during sampling is required.
	loss/gain of fine/coarse material.
Logging	• Whether core and chip samples have been geologically and	•No drilling was completed as and no discussion of the level of
	geotechnically logged to a level of detail to support appropriate	geological and geotechnical reporting on drilling is required.
	Mineral Resource estimation, mining studies and metallurgical	•The sample description by Roger Townend & Associates is of the
	studies.	highest professional standards. His report has been issued as a
	• Whether logging is qualitative or quantitative in nature. Core (or	document with embedded imagery. Selected close-up images of the
	costean, channel, etc) photography.	nickel sulphides have been copied from this report and inserted into
	• The total length and percentage of the relevant intersections logged.	this release, with the permission of Roger Townend & Associates.
		•The imagery is presented as qualitative in nature and establishes the
		presence of high grade nickel sulphides.
		•Because of its qualitative nature, the images and petrographic report
		do not present as definitive estimates of the percentages of nickel
		sulphides in the drill core.
		•There is no direct statement that the reported nickel sulphides
		represent the open hole percussion samples nor analyses from the
		WMC era work. The strongly anomalous base metal analyses from
		this historic sampling however imply that disseminated nickel
		sulphides would extend back up the hole, to at least the 11m as
		indicated in the intersection.
Sub-sampling	• If core, whether cut or sawn and whether quarter, half or all core	•Core samples from the end of RFP21 and RFP20 were submitted to
techniques	taken.	consultant petrographer, Roger Townend – Perth. The core was
and sample	• If non-core, whether riffled, tube sampled, rotary split, etc and	selectively diamond-saw cut to expose the better mineralised
preparation	whether sampled wet or dry.	portions. Core from RFP20 was identified as a sample of
	• For all sample types, the nature, quality and appropriateness of the	metamorphosed dolerite, although percussion chip geochemistry had
	sample preparation technique.	indicated that ultramafic lithologies existed higher up the hole. RFP21
	• Quality control procedures adopted for all sub-sampling stages to	penetrated low magnesian and carbonated lithologies further up the
	maximise representative nature to the samples.	hole but ended at 111.25m in weakly nickel sulphide mineralised
	• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field	high-magnesian serpentinite. The half-metre extension continued penetration into the mineralised serpentinite.
	duplicate/second-half sampling.	•Sample size of the core selected for petrographic work was
	• Whether sample sizes are appropriate to thegrain size of the material	approximately 2cm in size. Opaque minerals embedded in

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Criteria	JORC Code explanation	Commentary
	being sampled.	serpentinised olivine adcumulate included 100-200 micron sized
		magnetite plus ~1% nickel sulphides, less than 50 microns in size.
		The very fine grain size of the sulphides indicates adequately
		representative sample size to estimate the proportion of sulphides in
		the rock.
		•Nickel sulphides identified consisted of irregular blebs of pentlandite
		plus incipient millerite replacement, intimately associated with
		magnetite and serpentinite. Sulphides are absent from areas with
		relict magmatic olivine, indicating that hypogene fluids are involved in
		their genesis.
Quality of	• The nature, quality and appropriateness of the assaying and	•Data acquired using SMARTem24 receiver system.
assay data	laboratory procedures used and whether the technique is considered	•Data were delivered by GEM Geophysical Surveys Pty Ltd who
and	partial or total.	performed QA/QC on a daily basis.
laboratory	• For geophysical tools, spectrometers, handheld XRF instruments, etc,	•Data were again subject to QA/QC by consultants Newexco Services
tests	the parameters used in determining the analysis including instrument	Pty Ltd on a daily basis. QA/QC was achieved using Maxwell
	make and model, reading times, calibrations factors applied and their	software by ElectroMagnetic Imaging Technology Pty Ltd.
	derivation, etc.	•Petrographic work does not have standards and blanks relevant to its
	• Nature of quality control procedures adopted (eg standards, blanks,	investigation. Quality control is based on the decades of experience
	duplicates, external laboratory checks) and whether acceptable levels	that the petrographer possesses and is a bench mark against which
	of accuracy (ie lack of bias) and precision have been established.	other petrographic work is measured.
Verification of	• The verification of significant intersections by either independent or	•Data were check and validated on a daily basis using Maxwell
sampling and	alternative company personnel.	software by Electro Magnetic Imaging Technology Pty Ltd.
assaying	• The use of twinned holes.	•Sampling of the HQ core at the end of RFP21 did not require twinned
	• Documentation of primary data, data entry procedures, data	holes as it was a greenfields exploration hole and was not designed
	verification, data storage (physical and electronic) protocols.	for ore reserve estimation purposes.
	• Discuss any adjustment to assay data.	•Primary data collection of the original percussion hole was by WMC
		company geologists in 1968. Core samples from 2010 were logged
		geologically by Reed and Newexco geologists, prior to submission to
		Roger Townend & Associates.
		•All geological and location data has been stored in Reed Resources
		.xlsx database files. Data entry has been by manual input and
		validation of the small amount of data was done by checking input on
		screen prior to saving.
		•The data from WMC is not subject to verification or any resampling
		due to loss of original material. Original analytical data has been
		recorded in Reed database files and has not been edited or adjusted
		in any fashion.
		•No analytical data exists for the small length of core taken as it was

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Criteria	JORC Code explanation	Commentary
		designed for petrographic examination originally.
Location of	• Accuracy and quality of surveys used to locate drill holes (collar and	•Locations were planned using a combination of GIS software
data points	down-hole surveys), trenches, mine workings and other locations	packages.
	used in Mineral Resource estimation.	•Location of stations was accomplished with Garmin handheld GPS
	• Specification of the grid system used.	units with an accuracy of +/- 4m.
	• Quality and adequacy of topographic control.	•All data points were located using the Geocentric Datum of Australia
		1994 and the Map Grid of Australia zone 51 projection.
		•Topographic control was not required to be determined for this
		release.
Data spacing	• Data spacing for reporting of Exploration Results.	•At least 3 readings were recorded per station.
and	• Whether the data spacing and distribution is sufficient to establish the	•Stations were spaced 100m along line.
distribution	degree of geological and grade continuity appropriate for the Mineral	•Line spacing was 200m
	Resource and Ore Reserve estimation procedure(s) and	•There was no drilling completed for this release and no ore reserve
	classifications applied.	nor resource estimation was therefore determined.
	• Whether sample compositing has been applied.	•No drilling and sample generation precludes any sample compositing.
Orientation of	• Whether the orientation of sampling achieves unbiased sampling of	•Survey was oriented with E-W lines perpendicular to the main
data in	possible structures and the extent to which this is known, considering	geological trend.
relation to	the deposit type.	•The geophysical survey was oriented along AMG grid lines at even
geological	• If the relationship between the drilling orientation and the orientation	coordinate station sites. The resultant data has been transformed to
structure	of key mineralised structures is considered to have introduced a	MGA coordinates for presentation.
	sampling bias, this should be assessed and reported if material.	•The original WMC drill hole was drilled on a local imperial grid as was
		the sample intervals, down-hole (5ft). The collar was picked-up by
		handheld GPS instrument and the direct MGA coordinates
		determined.
		•RFP21 was drilled vertically as an isolated drill hole and there is no
		known relationship between any mineralised structures or ore-
		controlling surfaces. The mineralisation identified is fine grained and
		very disseminated in nature.
		•There is therefore no sampling bias induced by the vertical drill hole
		RFP21.
Sample	• The measures taken to ensure sample security.	•Data were acquired by GEM Geophysical Surveys Pty Ltd and
security		reported to the company director.
		•Data were forwarded from GEM Geophysical Surveys Pty Ltd to
		consultants Newexco Services Pty Ltd.
		•Samples of drill core were archived in Reed Resources offices, West
		Perth;for security. Theyare currentlyon loan to Roger Townend &

4

Criteria	JORC Code explanation	Commentary
		Associates, and will eventually be returned to Reed Resources.
Audits or	• The results of any audits or reviews of sampling techniques and data.	•The geophysical data has internal auditing maintained by Newexco.
reviews		The sample of drill core taken for petrographic purposes does not
		require auditing of sampling techniques nor professional examination
		by the consultant.

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Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	Commentary
Mineral	• Type, reference name/number, location and ownership including	• Tenements E16/305 & E16/330 are owned by Barranco
tenement and	agreements or material issues with third parties such as joint	Resources N.L. (15 blocks and 12 blocks respectively) and are
land tenure	ventures, partnerships, overriding royalties, native title interests,	located as a contiguous block within the Coolgardie Mineral
status	historical sites, wilderness or national park and environmental	Field. The centre of the block is located approximately 100km
	settings.	NE of Southern Cross or 200km WNW of Kalgoorlie. The
	• The security of the tenure held at the time of reporting along with any	tenements overlay Vacant Crown Land, which also contains the
	known impediments to obtaining a licence to operate in the area.	Proposed ex-Jaurdi Conservation Park - Proposed Reserve
		P5H/34, managed by DPaW. All exploration activities are
		managed by the DMP and the 2 entities may collaborate on
		environmental management protocols that exploration activities
		justify.
		• Tenements E16/305 & E16/330 are held by Barranco and are in
		good standing with the DMP.
		• Reed Resources Ltd through its wholly owned subsidiary Reed
		Exploration Pty Ltd holds an option to acquire 100% of the
		tenements E16/305 and E16/330.
Exploration	• Acknowledgment and appraisal of exploration by other parties.	•The tenement block has received most exploration within the current
done by other		E16/305. The first modern exploration dates from 1967-1972, when
parties		WMC held the entire greenstone belt. Surface exploration included
		soils, short hole and deeper open hole percussion testing of IP
		anomalies. This data is valid and very useful in today’s exploration of
		nickel sulphide environments and includes hole RP21, which
		intersected highly anomalous geochemistry from 100m to 111m (base
		of hole); that was due to the presence disseminated nickel sulphides.
		Gold explorers predominated the next 25 years until Arimco
		completed a short RAB line plus one RC follow-up hole in 1995 in the
		southern part of the tenement. Trace pentlandite was identified in
		fresh serpentinite RC chip, intimately associated with magnetite and
		serpentine minerals.
		•A short pause in nickel exploration was broken by the
		Barranco/Breakaway Resources JV in 2005-6, who completed some
		geophysical work and selected auger soil sampling. The soils
		indicated a strong PGE anomaly coincident with the base metal
		signatures, coincident with the northeastern side of the Green Dam
		Ultramafic Complex(GDUC). No follow-upRC drillingwas completed

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Criteria	JORC Code explanation	Commentary
		before the agreement was aborted.
		•Barranco then formed a JV with Reed Resources in 2009 and a major
		reassessment of the earlier work ensued. Reed also pursued its own,
		and other JV exploration, elsewhere along the greenstone belt from
		2005, before concentrating exploration within E16/305. Reed
		extended the strongly anomalous WMC holes RFP20 & RFP21 with
		approximately 0.5m of HQ core.
		•No GSWA mapping has been completed in recent times over the
		GDUC and the only recent governmental exploration was re-flying of
		high resolution ‘photo imagery in 2012.
		•Geophysical surveys completed under Breakaway management have
		been extended by Reed work since 2010. They included some
		regional EM and IP surveys at Green Dam. Strongly anomalous
		responses were drilled in 2012 with intersection of disseminated iron
		sulphides. The re-interpreted IP surveys in 2012 and the anomaly
		centres moved 200m SW. One DDH was drilled in early 2013 and
		disseminated nickel sulphides plus a 9cm vein of massive nickel-
		copper sulphides was intersected.
		•This report refers to the petrographic examination results of the
		sulphides intersected in 2013 and of the core extension to RFP21.
Geology	• Deposit type, geological setting and style of mineralisation.	•The Green Dam project is located within the Watt Hills greenstone
		belt, a SE extension to the Mt. Dimer greenstone belt and the Hunt
		Range greenstone belt to the NE. All greenstone belts are tentatively
		dated at 2.9 Ga and are located west of the terrane-bounding Ida
		Fault. The Watt Hills greenstone belt stratigraphy and structure is
		incompletely understood from greenfields explorers but faces
		eastwards from a high-magnesian ultramafic komatiite flow sequence
		on the western contact with granite, a central mafic volcanic-sediment
		sequence and an eastern BIF-iron ore dominated sequence. Drilling
		of the BIF has identified isoclinal folding and ore pod repetitions but
		no unambiguous evidence of folding can be recognised on the
		western side of the belt.
		•Stratigraphy within E16/305 is dominated by a large aeromagnetic
		bulge that is due to a lateritised high magnesian vent facies
		adcumulate olivine unit. Analogies with Mt. Keith have been. The
		Green Dam Ultramafic Complex contains no internal sedimentary
		units but can be traced along strike to the south over 40km as a
		semicontinuous overbank facies olivine orthocumulate. Minor trough
		embayments have been defined byhistoric drillingbyJVpartners

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Criteria	JORC Code explanation	Commentary
		Western Areas. Geochemical anomalism along the western (basal)
		contact has not been completely explored but is considered of lower
		priority in comparison with the anomalism and presence of nickel
		sulphides within the Green Dam Ultramafic Complex.
		•Exploration at Green Dam is targeting a variety of conceptual nickel
		sulphide targets, including; basal contact massive sulphides (Type 1),
		structurally remobilised massive nickel sulphides (Rocky’s Reward),
		hydrothermally remobilised massive nickel sulphide (High grade New
		Guinea massive sulphide veins in serpentinite).
Drill hole	• A summary of all information material to the understanding of the	•No drilling was completed for this release, however the location data
Information	exploration results including a tabulation of the following information	for RFP21 is: 6609559mN 218205mE, MGA coordinates taken with
	for all Material drill holes:	hand held GPS over 300 plus readings. The location is within Zone
	o easting and northing of the drill hole collar	51. The drill hole is vertical. The intersection commenced at 100.25m
	o elevation or RL (Reduced Level – elevation above sea level in	down hole (converted to metric) and ended at 111.25m down hole at
	metres) of the drill hole collar	end of hole. The core extended the hole by approximately 0.5m.
	o dip and azimuth of the hole
	o down hole length and interception depth
	o hole length.
	• If the exclusion of this information is justified on the basis that the
	information is not Material and this exclusion does not detract from
	the understanding of the report, the Competent Person should clearly
	explain why this is the case.
Data	• In reporting Exploration Results, weighting averaging techniques,	•The drill hole intersection is composed of historic analytical data that
aggregation	maximum and/or minimum grade truncations (eg cutting of high	does not justify any data manipulations, including averaging,
methods	grades) and cut-off grades are usually Material and should be stated.	truncation, or concatenation of analyses.
	• 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	•The historic analytical data does not qualify further dissection due to
between	Exploration Results.	the unknown relationship of historic analyses and modern analyses
mineralisation	• If the geometry of the mineralisation with respect to the drill hole	on the same drill chip samples.
widths and	angle is known, its nature should be reported.	•Resampling of the drill chips will not be possible in future.
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’). _

8

Criteria	JORC Code explanation	Commentary
Diagrams	• Appropriate maps and sections (with scales) and tabulations of	•The attached figures to this release contain all relevant sample
	intercepts should be included for any significant discovery being	intervals, intercepts and estimated geological comments based on
	reported These should include, but not be limited to a plan view of	historic geological logging.
	drill hole collar locations and appropriate sectional views.
Balanced	• Where comprehensive reporting of all Exploration Results is not	•The release is the total of information available and the intersection
reporting	practicable, representative reporting of both low and high grades	contains the only significant compilation of nickel assays that are
	and/or widths should be practiced to avoid misleading reporting of	related to fresh rock samples.
	Exploration Results.
Other	• Other exploration data, if meaningful and material, should be reported	• Survey designed and managed by Newexco Services Pty Ltd.
substantive exploration data	including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	• Moving in-loop Transient Electromagnetic surveying was completed by GEM Geophysical Surveys Pty Ltd. • Geophysical surveying employed a SMARTem24 receiver system, an EMIT Fluxgate magnetic field sensor, Zonge ZT-30
		transmitter and 200m x 200m transmitter loops. Survey stations
		were spaced 100m along line and lines were spaced 200m.
		• Interpretation of the Electromagnetic data was undertaken by
		Newexco Services Pty Ltd.
Further work	• The nature and scale of planned further work (eg tests for lateral	•Diamond drilling of conductors MFC01 and 02 planned to commence
	extensions or depth extensions or large-scale step-out drilling).	in the near future.
	• Diagrams clearly highlighting the areas of possible extensions,	•The figures included in this release indicate where the geophysical
	including the main geological interpretations and future drilling areas,	conductors are located and the drilling will therefore be designed to
	provided this information is not commercially sensitive.	intersect those conductors at depth below the base of weathering,
		where fresh nickeliferous sulphide would exist.
		•Initially one deep angled diamond drill hole would be completed into
		each conductor.
		•Successful intersection of nickeliferous sulphides would then require
		evaluation of the project aims and may result in other diamond drill
		holes into the target areas.

9