Nova Minerals Ltd — Capital/Financing Update 2017

Nov 22, 2017

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QUANTUM RESOURCES LIMITED

(ASX: QUR)

ASX and Media Release

23 November 2017

ALASKA PROJECTS DUE DILIGENCE UPDATE

Highlights:

• Due diligence has been extensive and ongoing on the project portfolio

• Geological review confirms exploration and development potential on Chip-Loy Ni, Cu, Co sulphide project and the Estelle district scale Gold project

• Areas of mineralisation and targets have been identified on the projects

• Exploration Target[1] estimate for a small portion of the Estelle gold project

The directors of Quantum Resources Limited ( Quantum or Company ) (ASX: QUR) are pleased to provide an update on due diligence activities associated with reviewing historic data of its farm in JV of the Alaskan project portfolio (the Project).

Quantum has an exclusive and binding option agreement regarding the formation of a JV with AK Minerals Pty Ltd (“AKM”).

Quantum is in the process of conducting technical and legal due diligence, and to date is satisfied with the progress of the ongoing work. Project due diligence has been extensive, detailed, and has uncovered multiple targets from data reviewed.

Chip Loy/Roberts Technical discussion

The Chip-Loy deposit contains disseminated to massive sulfides, mainly pyrrhotite and chalcopyrite, with minor cubanite and sphalerite, and trace galena, bravoite, violarite, tetradymite (Bi2Te2S), and undetermined Co-Ni-Fe arsenides (Herreid, 1968; Gilbert and Solie, 1983; Bundtzen and others, 1985). This style of deposit has many features in common with various aspects of Canadian deposits such as Thompson, Raglan, Voisey’s Bay and most notably the Australian Fraser Range based Nova-Bollinger discovery by Sirius Resources in 2012.

http://www.igo.com.au/irm/content/nova-project.aspx?RID=503 https://mrdata.usgs.gov/ardf/show-ardf.php?ardf_num=MG032

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Quantum Resources Ltd. Level 17, 500 Collins Street, Melbourne, VIC, 3000. Phone: +61 3 9614 0600 Fax: + 61 3 9614 0550

Figure 1 below shows the magnetic anomaly imagery overlain with other geological and geophysical targets including Resistivity/IP and EM Conductors. The Chip-Loy prospect lies at the contact of a magnetic high and magnetic low zone adjacent to a southeast-northwest trending fault extending into the Roberts prospect. Chip-Loy is also located adjacent to a large highly conductive zone (R25) extending in excess of 4 km in a southwest-northeast trend within the project tenure. A similar high conductive zone (R24) is located north of the Roberts PGE prospect zone located within a magnetic high anomaly.

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Fig 1: magnetic anomaly imagery overlain with other geological targets including Resistivity/IP and EM Conductors (Source: http://dggs.alaska.gov/pubs/id/29349)

Quantum Resources Ltd. Level 17, 500 Collins Street, Melbourne, VIC, 3000. Phone: +61 3 9614 0600 Fax: + 61 3 9614 0550

Estelle Gold project (Oxide Target) Technical discussion

Quantum is pleased to advise an Exploration Target on a very small area of the Estelle gold project Oxide prospect of:

Lower end: 57.72 Mt using an average grade of 0.6 g/t Au provides an exploration target of 1.11 Moz Au

Higher end: 121.21 Mt using an average grade of 0.6 g/t Au provides an exploration target of 2.33 Moz Au

2Calculation referenced below

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Fig 2: Estelle Project - Oxide prospect exploration target area

2Conservatively it would appear that the dimensions would be in the order of 100m (true width) x 740m (strike) x 300m (depth down dip) making a volume of 22.2 Million Cubic Metres. Assuming a conservative SG of 2.6 based on the Whistler deposit nearby (source: http://www.goldmining.com/_resources/reports/Whistler-2016-Technical-Report.pdf), this may represent a minimum target size of 57.72 Mt using an average grade of 0.6 g/t Au (source: https://www.millrockresources.com/news/millrock-discovers-new-gold-zone-atestelle-project-alaska-2) provides an exploration target of 1.11 Moz Au .

Assuming a true width of 0.7 x hole depth (source: https://www.millrockresources.com /news/millrock-discovers-new-gold-zone-at-estelle-project-alaska-2) the exploration target could be 210m (true width) x 740m (strike) x 300m (down dip) x 2.6 (SG) making a target size of 121.21 Mt using an average grade of 0.6 g/t Au provides an exploration target of 2.33 Moz Au .

Additional source from which the target has been calculated: https://www.millrockresources.com/news/millrock-intersects-intrusion-related-gold-system-atestelle-project-alaska

The grade of mineralization, however, appears to increase to the southeast. Hole SE12004, the southeastern-most hole drilled, intersected gold mineralization throughout the majority of the hole with a highlight intercept of 41.45 meters grading 1.14 grams gold per tonne. An induced polarization survey conducted in 2012 revealed a chargeability high corresponding with the drilled mineralized trend. The highest chargeability occurs southeast of drill hole SE12-004 providing a vector to possible higher-grade mineralization to the southeast and is a priority drill target.

Quantum Resources Ltd. Level 17, 500 Collins Street, Melbourne, VIC, 3000. Phone: +61 3 9614 0600 Fax: + 61 3 9614 0550

Assay results for copper, silver, molybdenum and other minerals were never made public by previous explorers.

The potential quantity and grade is conceptual in nature. There has been insufficient exploration drilling to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource. The Exploration Target was estimated in order to provide the market with an assessment of the potential scale of the Estelle gold project using the historic Exploration Results.

The Exploration Target takes no account of geological complexity, possible mining method or metallurgical recovery factors. It is acknowledged that the currently available data is insufficient spatially in terms of the density of drill holes, and in quality, in terms of Quantums's final audit of procedures for down hole data, data acquisition and processing, for the results of this analysis to be classified as a Mineral Resource in accordance with the JORC Code. The analysis undertaken has been essentially statistical and geostatistical with minimal reference to geology, although it is clear that stratigraphy, lithology and structure have a major impact on the continuity and grade of gold mineralisation at the district scale Estelle gold project.

Following completion of the regional drilling on the Oxide prospect of the Estelle gold project, the next phase of drilling will comprise infill drilling between the existing lines that have identified the location of redox boundaries and/or gold mineralisation in order to test the validity of the Exploration Target. This further work will commence subject to successful due dilligence completion.

The Exploration Target is reported in accordance with Clause 17 of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (2012 Edition) (JORC Code).

QUR Managing Director, Mr. Avi Kimelman said:

“The initial exploration targets and geophysics reinforce the scale of the Estelle gold project and outlines the prospectivity of a major sulphide discovery. As noted, the assets complement our Thompson bros lithium project, while the Alaskan project portfolio farm-in diversifies and de-risks QUR from single commodity exposure. Subject to successful due dilligence our intent is to fast-track development of our project portfolio with our aim to build a credible and substantial multi commodity exploration, development and production company.

Quantum remains optimistic and committed to finalising the deal and delivering significant value for our shareholders.”

The Company will provide shareholders with further updates in due course.

About Quantum Resources Limited (ASX:QUR):

Quantum Resource Limited own the rights to earn up to 80% ownership interest of the Thompson Bros. Lithium Project from Ashburton Ventures Inc. by financing their commitments relating to their Option Agreement with Strider Resources Ltd.

Quantum Resources Ltd. Level 17, 500 Collins Street, Melbourne, VIC, 3000. Phone: +61 3 9614 0600 Fax: + 61 3 9614 0550

The Thompson Bros. Lithium Project, located in Manitoba, Canada contains a historical (NON-JORC COMPLIANT) resource estimate of 4,305,000 tonnes of 1.3% Li2O, open at depth and along strike. These estimates are historical estimates and are not reported in accordance with the JORC Code. A competent person has not done sufficient work to classify the historical estimates as mineral resources and/or reserves in accordance with the JORC Code. It is uncertain that following evaluation and/or further exploration work that the historical estimates will be able to be reported as mineral resources or ore reserves in accordance with the JORC Code.

Competent Person Statement

The information in this announcement that relates to Exploration Results is based on information compiled by Mr Denis F Walsh. Mr Walsh is a Professional Geoscientist" (B.Sc., P. Geo,) and is registered with the Professional Engineers and Geoscientists of Newfoundland and Labrador (PEGNL) (#3280). He has sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are 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 (the “JORC Code”) and in accordance with National Instrument 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators ("NI 43-101").

1Disclaimer: An Exploration Target is a statement or estimate of the exploration potential of a mineral deposit in a defined geological setting where the statement or estimate, quoted as a range of tonnes and a range of grade (or quality), relates to mineralisation for which there has been insufficient exploration to estimate a Mineral Resource.

Quantum Resources Ltd. Level 17, 500 Collins Street, Melbourne, VIC, 3000. Phone: +61 3 9614 0600 Fax: + 61 3 9614 0550

Appendix 1

JORC Code, 2012 Edition – Table 1

The following tables are provided to ensure compliance with the JORC Code (2012) requirements for the reporting of Exploration Results for the Estelle Project

Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sampling	•	Nature and quality of sampling (eg	•	It is believed by the nature of the data presented
techniques		cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken		in the historic reports that the soil sampling, rock chip sampling and diamond drill core sampling have been taken using industry standard practices, however details of the methodology have largely not been documented in the majority of historic reports.
		as limiting the broad meaning of sampling.	•	Where referenced, soil and rock chip samples taken by Millrock Resources appear to have
	• •	Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple		each been collected and placed in sealed bags up to 2.5 kg and delivered to ALS Chemex in Fairbanks or Anchorage, Alaska for analysis. Gold was analyzed by atomic absorption with a gravimetric finish. The samples were also analyzed for a suite of 41 elements by the ICP- MS method. A sample quality control/quality assurance program was conducted. The
		(eg ‘reverse circulation drilling was		Company randomly inserted blank samples and
		used to obtain 1 m samples from		standard samples with known gold content
		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	•	within the submitted chip samples and verified the results obtained. Where referenced, diamond drill core samples taken by Millrock Resources was reported to be
		has inherent sampling problems.		split lengthwise at one metre lengths and half of
		Unusual commodities or		the core was collected as a sample and placed
		mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.		in a sealed bag. All drill core samples were securely shipped to ALS Chemex Labs in Anchorage or Fairbanks, Alaska for preparation,
				with fire assay and multi-element ICP analyses
				done at ALS Chemex Labs facility in Reno,
				Nevada.
			•	ALS Chemex is an ISO 9001:2000 certified lab,
				and as such, has its own stringent quality
				control/quality assurance program.
Drilling techniques	•	Drill type (eg core, reverse	•	Drilling technique used was diamond core. The
		circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple		diameter of the core (such as BQ ,NQ, or other) is unknown.
		or standard tube, depth of diamond
		tails, face-sampling bit or other type,
		whether core is oriented and if so, by
		what method, etc).
Drill sample	•	Whether core and chip samples have	•	Drill core sample recoveries were in one metre
recovery		been geologically and geotechnically		intervals.
		logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	•	Where referenced by Millrock Resources, the core was split lengthwise with half the core being assayed.
	•	Whether logging is qualitative or	•	No relationship has been determined between
	•	quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged.	•	sample recoveries and grade. Other methodologies have not largely been documented in the historic reports.

Quantum Resources Ltd. Level 17, 500 Collins Street, Melbourne, VIC, 3000. Phone: +61 3 9614 0600 Fax: + 61 3 9614 0550

Logging	•	Whether core and chip samples have	•	Drill sample recoveries were in one metre
		been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and	•	intervals but there is no reference to any data pertaining to the hole being geologically logged. No core photography has been located.
		metallurgical studies.
	•	Whether logging is qualitative or
		quantitative in nature. Core (or
		costean, channel, etc) photography.
	•	The total length and percentage of
		the relevant intersections logged.
Sub-sampling	•	If core, whether cut or sawn and	•	It is believed that industry standard practices
techniques and sample preparation		whether quarter, half or all core taken.		have been used; however details of the methodology have largely not been documented
	• •	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the		in the historic reports. Where referenced, Millrock Resources split the drill core lengthwise at one metre intervals whereby half the sample was assayed.
		sample preparation technique.
	•	Quality control procedures adopted
		for all sub-sampling stages to
		maximise representivity of samples.
	•	Measures taken to ensure that the
		sampling is representative of the in
		situ material collected, including for
		instance results for field
		duplicate/second-half sampling.
	•	Whether sample sizes are
		appropriate to the grain size of the
		material being sampled.
Quality of assay	•	The nature, quality and	•	Where reported, Millrock Resources employed
data and laboratory tests	•	appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and		ALS Chemex for assays; gold was analyzed by atomic absorption with a gravimetric finish. The samples were also analyzed for a suite of 41 elements by the ICP-MS method. A sample quality control/quality assurance program was conducted. The Company randomly inserted blank samples and standard samples with known gold content within the submitted chip
		model, reading times, calibrations		samples and verified the results obtained.
		factors applied and their derivation,		These assay methods are considered
		etc.		appropriate for the metals being investigated.
	•	Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory	•	The other historic explorers did not document details any additional QC procedures.
		checks) and whether acceptable
		levels of accuracy (ie lack of bias)
		and precision have been established.
Verification of	•	The verification of significant	•	Significant drill intersections reported have been
sampling and assaying		intersections by either independent or alternative company personnel.		sourced from company public announcements and historical reports.
	• •	The use of twinned holes. Documentation of primary data, data entry procedures, data verification,	•	It is assumed that no adjustments were made to the reported assay data.
		data storage (physical and
		electronic) protocols.
	•	Discuss any adjustment to assay
		data.
Location of data	•	Accuracy and quality of surveys used	•	There is limited reference to the location of drill
points		to locate drill holes (collar and down- hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	•	collars in the historical reports. The general location of drilling from photos has been identified utilising available software such
	•	Specification of the grid system used.		as Google Earth.
	•	Quality and adequacy of topographic	•	There is no reference to the grid system used.
		control.	•	The quality and adequacy of topographic control
				is not known.

Quantum Resources Ltd. Level 17, 500 Collins Street, Melbourne, VIC, 3000. Phone: +61 3 9614 0600 Fax: + 61 3 9614 0550

Data spacing and	•	Data spacing for reporting of	•	The nominal drill spacing is determined at the
distribution		Exploration Results.		prospect level and drill hole coordinates have
	•	Whether the data spacing and		not been published in historical reports – except
		distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve	•	for general location of holes from aerial and ground photographs. Drill hole assay data is representative for
		estimation procedure(s) and		continuity of mineralisation and grade to justify
		classifications applied.		future exploration drilling programs to define
	•	Whether sample compositing has		mineral resource(s).
		been applied.	•	There is no evidence of sample compositing
				within the historical data.
Orientation of data	•	Whether the orientation of sampling	•	The data presented in the historic reports
in relation to geological structure		achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.		appears to have been taken using industry standard practices, which aims to produce unbiased sampling.
	•	If the relationship between the drilling
		orientation and the orientation of key
		mineralised structures is considered
		to have introduced a sampling bias,
		this should be assessed and
		reported if material.
Sample security	•	The measures taken to ensure	•	Not documented in historic reporting.
		sample security.		Assumption is that sample security measures
				were completed to acceptable industry
				standards.
Audits or reviews	•	The results of any audits or reviews	•	Audits were not documented in historic
		of sampling techniques and data.		reporting.
Section 2 Reporting	of	Exploration Results
Criteria	JORC Code explanation		Commentary
Mineral tenement	•	Type, reference name/number,	•	The Estelle Project is comprised of one hundred
and land tenure status		location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites,	•	and seventy-three (173) mining claims each comprising of 160 acres for approximately 27,680 acres. The mining claims are held in a wholly owned
		wilderness or national park and		subsidiary of AK Minerals Pty Ltd, AK Custom
		environmental settings.		Mining LLC – an Alaskan incorporated Limited
	•	The security of the tenure held at the		Liability Company.
		time of reporting along with any known impediments to obtaining a licence to operate in the area.	•	Apart from details contained in this document, there are no joint ventures or other agreements or liens over the Estelle project or its mining
				claims.
			•	There are no Native Title interests in any of the
				Estelle claims and they are not located within
				any environmentally sensitive areas including
				National Parks, Conservation Reserves.
			•	The Company is not aware of any other
				impediments that would prevent an exploration
				or mining activity.
Exploration done by	•	Acknowledgment and appraisal of	•	The Estelle Project has had previous
other parties		exploration by other parties.		exploration activities by Government agencies
				including the US Bureau of Mines, the State of
				Alaska, Cominco American Incorporated, Teck
				America Inc, International Tower Hill Mines,
				Hidefield Gold Plc and Millrock Resources Inc.
				The vast majority of the exploration was
				completed by Millrock Resources which
				included soil and rock chip assays and diamond
				core drilling.
Geology	•	Deposit type, geological setting and	•	The primary exploration target at the Estelle

Quantum Resources Ltd. Level 17, 500 Collins Street, Melbourne, VIC, 3000. Phone: +61 3 9614 0600 Fax: + 61 3 9614 0550

		style of mineralisation.		Project is gold, silver and copper.
			•	There are numerous styles of mineralisation
				which is included in this document.
Drill hole	•	A summary of all information material	•	Drillhole information and downhole reporting
Information		to the understanding of the exploration results including a		has not been published in historical reports.
		tabulation of the following information
		for all Material drill holes:
		o easting and northing of the drill
		hole collar
		o elevation or RL (Reduced Level –
		elevation above sea level in
		metres) of the drill hole collar
		o dip and azimuth of the hole
		o down hole length and
		interception depth
		o hole length.
	•	If the exclusion of this information is
		justified on the basis that the
		information is not Material and this
		exclusion does not detract from the
		understanding of the report, the
		Competent Person should clearly
		explain why this is the case.
Data aggregation	•	In reporting Exploration Results,	•	Weighted averaging or cutting of grades has not
methods		weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are	•	been used in the reporting of the drilling results; All drill core samples are assumed to be assayed at 1m intervals.
		usually Material and should be stated.	•	No metal equivalents have been used.
	•	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	•	All drillhole intercepts are measured in
between		important in the reporting of		downhole metres.
mineralisation widths and intercept length	• •	Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this	•	While the drilling is believed to have intersected the mineralisation at an optimum angle, the exact relationship between true widths and downhole widths is not known and any bias is yet to be determined. Further exploration drilling will be required.
		effect (eg ‘down hole length, true
		width not known’).
Diagrams	•	Appropriate maps and sections (with	•	Maps and appropriate plans, where available
		scales) and tabulations of intercepts		are included in the document.
		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 reporting	•	Where comprehensive reporting of	•	Comprehensive reporting of all historic
		all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration	•	Exploration Results is not practicable due to the large amount of data present. Exhaustive analysis of all the data will occur as part of due diligence.
		Results.
Other substantive	•	Other exploration data, if meaningful	•	Substantive historical data is available in
exploration data		and material, should be reported		historical reports and will be reviewed, compiled

Quantum Resources Ltd. Level 17, 500 Collins Street, Melbourne, VIC, 3000. Phone: +61 3 9614 0600 Fax: + 61 3 9614 0550

		including (but not limited to):		and reported as part of due diligence.
		geological observations; geophysical
		survey results; geochemical survey
		results; bulk samples – size and
		method of treatment; metallurgical
		test results; bulk density,
		groundwater, geotechnical and rock
		characteristics; potential deleterious
		or contaminating substances.
Further work	•	The nature and scale of planned	•	As discussed in the document. Further
		further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).		exploration may be subject to successful completion of due diligence.
	•	Diagrams clearly highlighting the
		areas of possible extensions,
		including the main geological
		interpretations and future drilling
		areas, provided this information is
		not commercially sensitive.

The following tables are provided to ensure compliance with the JORC Code (2012) requirements for the reporting of Exploration Results for the Farewell Projects

Section 1 Sampling Techniques and Data

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

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Sampling	•	Nature and quality of sampling (eg	•	Rock chip sampling was carried out at the
techniques		cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes,		geologist discretion. Sampling reported may have been taken to test particular geological features therefore may not be representative of mineralisation at the particular project.
		or handheld XRF instruments, etc).	•	The only historic drilling appears to have been
		These examples should not be taken		done on the Roberts prospect using DD drilling.
	•	as limiting the broad meaning of sampling. Include reference to measures taken	•	Historic reports have not documented lab preparation and sub sampling techniques.
		to ensure sample representivity and
		the appropriate calibration of any
		measurement tools or systems used.
	•	Aspects of the determination of
		mineralisation that are Material to the
		Public Report. In cases where
		‘industry standard’ work has been
		done this would be relatively simple
		(eg ‘reverse circulation drilling was
		used to obtain 1 m samples from
		which 3 kg was pulverised to
		produce a 30 g charge for fire
		assay’). In other cases more
		explanation may be required, such
		as where there is coarse gold that
		has inherent sampling problems.
		Unusual commodities or
		mineralisation types (eg submarine
		nodules) may warrant disclosure of
		detailed information.
Drilling techniques	•	Drill type (eg core, reverse	•	The only historic drilling appears to have been
		circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc)		done on the Roberts prospect using DD drilling.
		and details (eg core diameter, triple
		or standard tube, depth of diamond
		tails, face-sampling bit or other type,
		whether core is oriented and if so, by
		what method, etc).

Quantum Resources Ltd. Level 17, 500 Collins Street, Melbourne, VIC, 3000. Phone: +61 3 9614 0600 Fax: + 61 3 9614 0550

Drill sample	•	Whether core and chip samples have	•	On the Roberts prospect, the method of
recovery	•	been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or		recording and assessing core and chip sample recoveries have not been documented in the historical reports; no relationship has been determined between sample recoveries and grade; and other methodologies have not largely been documented in the historic reports.
		costean, channel, etc) photography.	•	Other prospects have not been drilled.
	•	The total length and percentage of
		the relevant intersections logged.
Logging	•	Whether core and chip samples have	•	On the Roberts prospect, there is no reference
		been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.	•	in historical reports pertaining to the hole being geologically logged nor is there any core photography. Other prospects have not been drilled.
	•	Whether logging is qualitative or
		quantitative in nature. Core (or
		costean, channel, etc) photography.
	•	The total length and percentage of
		the relevant intersections logged.
Sub-sampling	•	If core, whether cut or sawn and	•	On the Roberts prospect, it is believed that
techniques and sample preparation		whether quarter, half or all core taken.		industry standard practices have been used; however details of the methodology or any other
	• •	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature,	•	procedures have not been documented in the historic reports. Other prospects have not been drilled.
		quality and appropriateness of the
		sample preparation technique.
	•	Quality control procedures adopted
		for all sub-sampling stages to
		maximise representivity of samples.
	•	Measures taken to ensure that the
		sampling is representative of the in
		situ material collected, including for
		instance results for field
		duplicate/second-half sampling.
	•	Whether sample sizes are
		appropriate to the grain size of the
		material being sampled.
Quality of assay	•	The nature, quality and	•	On the Roberts prospect, there is no reference
data and laboratory tests	•	appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools,	•	in the historic reports pertaining to the assaying and laboratory procedures, nor any QA procedures. Other prospects have not been drilled.
		spectrometers, handheld XRF
		instruments, etc, the parameters
		used in determining the analysis
		including instrument make and
		model, reading times, calibrations
		factors applied and their derivation,
		etc.
	•	Nature of quality control procedures
		adopted (eg standards, blanks,
		duplicates, external laboratory
		checks) and whether acceptable
		levels of accuracy (ie lack of bias)
		and precision have been established.
Verification of	•	The verification of significant	•	At the Roberts prospect, DD drill interceptions
sampling and assaying	• •	intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification,	• •	have been sourced from historical reports. It is assumed that no adjustments were made to the reported assay data. Other prospects have not been drilled.
		data storage (physical and
		electronic) protocols.

Quantum Resources Ltd. Level 17, 500 Collins Street, Melbourne, VIC, 3000. Phone: +61 3 9614 0600 Fax: + 61 3 9614 0550

•	Discuss any adjustment to assay
	data.

	•	Discuss any adjustment to assay data.
Location of data	•	Accuracy and quality of surveys used	•	At the Roberts prospect, there is no reference to
points		to locate drill holes (collar and down-		the location of drill collars in the historical
		hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	•	reports. The general location of drilling from photos has
	• •	Specification of the grid system used. Quality and adequacy of topographic control.	•	been identified utilising available software such as Google Earth. There is no reference to the grid system used.
			•	The quality and adequacy of topographic control
				is not known.
			•	Other prospects have not been drilled.
Data spacing and	•	Data spacing for reporting of	•	At the Roberts prospect, the nominal drill
distribution		Exploration Results.		spacing appears to be been determined at the
	•	Whether the data spacing and		prospect level and drill hole coordinates have
		distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve	•	not been published in historical reports – except for general location of holes from photographs. Drill hole assay data available in the historic
		estimation procedure(s) and		reports is representative of mineralisation and
		classifications applied.		grade to justify future exploration drilling
	•	Whether sample compositing has		programs to define mineral resource(s).
		been applied.	•	There is no evidence of sample compositing
				within the historical data.
			•	Other prospects have not been drilled.
Orientation of data	•	Whether the orientation of sampling	•	At the Roberts prospect, it is assumed from the
in relation to geological structure	•	achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key	•	data presented in the historic reports appears to have been taken using industry standard practices, which aims to produce unbiased sampling. Other prospects have not been drilled.
		mineralised structures is considered
		to have introduced a sampling bias,
		this should be assessed and
		reported if material.
Sample security	•	The measures taken to ensure	•	Sample security measures have not been
		sample security.		documented. Assumption is that sample
				security measures were completed to
				acceptable industry standards.
Audits or reviews	•	The results of any audits or reviews	•	Audits were not documented in historic
		of sampling techniques and data.		reporting.
Section 2 Reporting	of	Exploration Results
Criteria	JORC Code explanation		Commentary
Mineral tenement	•	Type, reference name/number,	•	The Farewell Projects are comprised (in total) of
and land tenure status		location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites,		one hundred and twenty-four (124) mining claims each comprising of 160 acres for approximately 19,840 acres. Sizes of individual projects are reported in this document.
		wilderness or national park and	•	The mining claims are held in a wholly owned
		environmental settings.		subsidiary of AK Minerals Pty Ltd, AK Custom
	•	The security of the tenure held at the		Mining LLC – an Alaskan incorporated Limited
		time of reporting along with any		Liability Company.
		known impediments to obtaining a licence to operate in the area.	•	Apart from details contained in this document, there are no joint ventures or other agreements
				or liens over the Farewell projects or its mining
				claims.
			•	There are no Native Title interests in any of the
				Farewell claims and they are not located within
				any environmentally sensitive areas including
				National Parks, Conservation Reserves.

Quantum Resources Ltd. Level 17, 500 Collins Street, Melbourne, VIC, 3000. Phone: +61 3 9614 0600 Fax: + 61 3 9614 0550

			•	The Company is not aware of any other
				impediments that would prevent an exploration
				or mining activity.
Exploration done by	•	Acknowledgment and appraisal of	•	The Farewell Projects has had previous
other parties		exploration by other parties.		exploration activities by Government agencies
				including the US Bureau of Mines and the State
				of Alaska, Nycon Resources, Homestake Mining
				Co, International Tower Hill Mines Ltd and
				Anaconda Mining Company.
Geology	•	Deposit type, geological setting and	•	There are multiple exploration targets at the
		style of mineralisation.		Farewell Project that includes gold, silver,
				copper, cobalt, nickel, zinc, lead, PGE’s and
				REE’s.
			•	There are numerous styles of mineralisation
				mentioned in this document.
Drill hole	•	A summary of all information material	•	At the Roberts prospect, drillhole information
Information		to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:	•	and downhole reporting has not been published in historical reports. Other prospects have not been drilled.
		o easting and northing of the drill
		hole collar
		o elevation or RL (Reduced Level –
		elevation above sea level in
		metres) of the drill hole collar
		o dip and azimuth of the hole
		o down hole length and
		interception depth
		o hole length.
	•	If the exclusion of this information is
		justified on the basis that the
		information is not Material and this
		exclusion does not detract from the
		understanding of the report, the
		Competent Person should clearly
		explain why this is the case.
Data aggregation	•	In reporting Exploration Results,	•	At the Roberts prospect, weighted averaging,
methods		weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are	•	nor any other procedures and methods have not been documented in historical reports. No metal equivalents have been used.
		usually Material and should be stated.	•	Other prospects have not been drilled.
	•	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	•	At the Roberts prospect, drilling is believed to
between		important in the reporting of		have intersected the mineralisation at an
mineralisation		Exploration Results.		optimum angle, the exact relationship between
widths and intercept	•	If the geometry of the mineralisation		true widths and downhole widths is not known
length	•	with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there	•	and any bias is yet to be determined. Further exploration drilling will be required. Other prospects have not been drilled.
		should be a clear statement to this
		effect (eg ‘down hole length, true
		width not known’).
Diagrams	•	Appropriate maps and sections (with	•	Maps and appropriate plans, where available
		scales) and tabulations of intercepts		are included in the document.
		should be included for any significant

Quantum Resources Ltd. Level 17, 500 Collins Street, Melbourne, VIC, 3000. Phone: +61 3 9614 0600 Fax: + 61 3 9614 0550

		discovery being reported These
		should include, but not be limited to a
		plan view of drill hole collar locations
		and appropriate sectional views.
Balanced reporting	•	Where comprehensive reporting of	•	Comprehensive reporting of all historic
		all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid	•	Exploration Results is not practicable due to the large amount of data present. Analysis of the data will occur as part of due
		misleading reporting of Exploration		diligence.
		Results.
Other substantive	•	Other exploration data, if meaningful	•	Substantive historical data is available in
exploration data		and material, should be reported including (but not limited to): geological observations; geophysical		historical reports at Appendix 1 which will be reviewed as part of the due diligence.
		survey results; geochemical survey
		results; bulk samples – size and
		method of treatment; metallurgical
		test results; bulk density,
		groundwater, geotechnical and rock
		characteristics; potential deleterious
		or contaminating substances.
Further work	•	The nature and scale of planned	•	As discussed in the document. Further
		further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling).		exploration may be subject to successful completion of due diligence.
	•	Diagrams clearly highlighting the
		areas of possible extensions,
		including the main geological
		interpretations and future drilling
		areas, provided this information is
		not commercially sensitive.

Quantum Resources Ltd. Level 17, 500 Collins Street, Melbourne, VIC, 3000. Phone: +61 3 9614 0600 Fax: + 61 3 9614 0550