ORA BANDA MINING LTD — Capital/Financing Update 2017

Jul 13, 2017

ASX ANNOUNCEMENT 14 JULY 2017

DAVYHURST MILL PROCESSING COMMENCED

HIGHLIGHTS

• Commissioning of the 1.2Mtpa Davyhurst Mill complete

• Continuous ore processing has commenced

• First gold pour scheduled for Wednesday 19 July 2017

• Approximately 71Kt mill feed on Davyhurst ROM

• Approximately 40Kt mill feed on Siberia ROM

• Development of the Golden Eagle underground mine decline has commenced

Eastern Goldfields Limited (ASX:EGS) (“Eastern Goldfields” or “the Company”) is pleased to announce that mechanical, electrical and water commissioning of the Davyhurst Mill, located approximately 120 kilometres north west of Kalgoorlie, within the Davyhurst Mining Hub, is now complete. All circuits are now operational and continuous ore processing has commenced. The first gold pour from the gravity circuit is scheduled for this coming Wednesday 19 July 2017 and the first leach circuit gold pour scheduled for Friday 21 July 2017.

Eastern Goldfields Chairman, Michael Fotios stated:

ISSUED CAPITAL

Shares: 559.7m Options: 58.9m Current Share Price: $0.205 Market Capitalisation: $114.7m Cash as at 31/03/2017: $551,000*

*Excluding total debt facilities of $35.0m, see ASX announcement 31 Jan 2017. Drawn to date $15.0m.

“We are delighted to report that wet commissioning of the Davyhurst processing facility is now complete. Mining operations have continued to progress well, building a substantial supply of low-to-medium grade ore ready to support the ramp-up in production. Our firm focus is on first gold pour which is expected imminently and will mark a significant milestone for the Company on its journey to become the newest Australian gold producer.”

Operations Status

Mill

Refurbishment of the 1.2Mtpa Davyhurst Mill commenced in October 2016 and commissioning activities (mechanical, electrical and water) have been ongoing for the past three weeks. The Company is pleased to confirm the following plant and equipment are now all fully operational:

• Crushing and Grinding circuits

• Gravity circuit, Knelson Concentrators and Acacia Reactor

• Leach and absorption circuits

• Gravity/Leach Elution circuits and gold room

• Tailings thickener, discharge and tailings storage facility

• New raw water dam and existing process water dam

• 5.5MW diesel power station and fuel farm

==> picture [462 x 260] intentionally omitted <==

Figure 1: Davyhurst processing plant and equipment now fully operational.

Stockpiles and Haulage

The following table summarises the current ore stockpiles at the Davyhurst ROM (including Skyway and fine ore stockpiles) available for processing, and at the Siberia ROM available for haulage to the Davyhurst ROM when required. The stockpiles have been arranged in a finger system for optimal blending of grade and ore types (oxide, transitional and sulphide).

	Current ROM Stocks	Current ROM Stocks
Location	Source	Tonnes	**Aug/t **	Ounces
Davyhurst ROM
A Finger	Sand KingLow Grade	18,252	1.1	645
A2 Finger	Great Ophir High Grade	581	2.0	37
B Finger	Great Ophir Transitional	6,244	1.0	201
C Finger	Siberia,clean upof Siberia ROM	9,801	0.9	290
D Finger	Waihi North Sands	2,813	1.0	90
E Finger	Waihi North Sands	13,085	1.6	673
Other	LadyGlady's oversize	20	15.6	10
Total		50,800	1.2	1950
Davyhurst Skyway
F Finger	Mulline Rose Stockpile	7,435	1.6	382
G Finger	Mulline Rose Stockpile	190	2.0	12
H Finger	Mulline Rose Stockpile	9,339	1.4	420
Oversize	Various	3,500	1.3	141
Total		20,500	1.5	960
Siberia ROM	(Awaitinghaulage to Davyhurst ROM)
Siberia RED2	Sand KingLow Grade	29,594	1.1	1047
Siberia Pink	Siberia Various	6,220	1.5	300
Siberia Yellow	Stockpile rehandle	3,988	1.5	192
Total		39,800	1.2	1540
	Total	111,100	1.3	4450

Table 1

Notes 1. Approximately 4Kt of fine ore bin stocks not included in this table

1. Totals have been rounded

The Company recently undertook an evaluation of 35 stockpiles from four Project areas: Callion, Davyhurst, Mulline, and Siberia. The table below (Table 2) details the viable low grade surface stockpiles that have been evaluated by the Company to date and will initially be utilised in the ore commissioning of the processing plant.

Individual stockpiles comprise either laterite, leach vat material, low grade ore dumps, or battery sands. Stockpiles were sampled by a combination of 1m RC drill samples, or unbiased grab samples. Samples were analysed by Nagrom Laboratory in Perth using 50gm fire assay.

Subsequent to the ore commissioning phase, these stocks will then form a source of incremental mill feed (0.4 mtpa), which in addition to the ore sourced from open pit and underground operations (0.8mtpa), will push the plant immediately to its 1.2mtpa nameplate throughput capacity.

Estimates of stockpile tonnage were calculated using volume/grade calculations and applying an assumed density based on material type (with a void factor applied to account for the fact that the material is not in-situ). Stockpile volumes were determined by a combination of DGPS survey of toe and crests, and high resolution digital contour imagery. 3Dm’s of the stockpiles were created using Micromine software. Various top-cuts were applied based on statistical analysis of samples from each stockpile. No cut-off grades were applied as the entire stockpile material has been estimated .

GRADE SUMMARY	Tonnage	Cut Grade	Uncut Grade	Contained Ounces	Average Haul Distance
Project Area	(t)	(g/t)	(g/t)	(Oz)	(km)
Stockpiles - +1.2g/t	104,914	1.4	1.9	4,863	17
Stockpiles - 1.0 to 1.2g/t	386,181	1.1	1.5	13,429	23
Stockpiles - 0.8 to 1.0g/t	272,825	0.9	1.0	8,229	18
TOTAL	764,000	1.1	1.4	27,000

AREA SUMMARY	Tonnage	Cut Grade	Uncut Grade	Cut Ounces	Max Haul Distance
Project Area	(t)	(g/t)	(g/t)	(Oz)	(km)
Callion	1,464	1.2	1.2	54	14
Davyhurst	245,214	1.0	1.1	8,111	6
Mulline	290,478	1.1	1.8	10,559	32
Siberia	226,764	1.1	1.1	7,797	39
TOTAL	764,000	1.1	1.4	27,000

Table 2: Davyhurst Mining Hub – Viable Low and Medium Grade Stockpiles sorted by Grade and by Area

The Mineral Resource was classified as Inferred Mineral Resource on the basis of data quality, and the nature of the grade/tonnage estimation method.

Mining Activities

Underground

Development of the Golden Eagle decline has commenced, with portal access works currently being undertaken. It is estimated that these works will be completed during July 2017 and ore mining development will commence during August 2017. Once consistent ore production is achieved at Golden Eagle it is planned, during September 2017, to commence reopening of the existing Lights of Israel (“LOI”) decline.

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Figure 2: Golden Eagle portal access works underway.

Open Pit

Mining activities at Siberia have focused on mining of the existing historic low grade stockpile created by Western Mining Corporation during the 1980s and preparation for mining of the southern cutback at the Sand King open pit. First ore is expected to be mined from the southern cutback at Sand King during August 2017.

Sand King open pit grade control is currently underway with approximately 780 metres of RC grade control drilling completed to date. Initial open pit mining at Siberia will focus on development at Sand King followed by development of the Missouri open pit later in the year.

Finance and Corporate

The Company currently has available cash and undrawn credit lines of approximately $20m and is expecting GST and diesel fuel rebate refunds in the order of $3m during the September quarter.

Investor Enquiries

Michael Fotios Jon Snowball Executive Chairman FTI Consulting T: +61 8 6241 1866 T: +61 477 946 068 E : admin@easterngoldfields.com.au E: jon.snowball@fticonsulting.com

Forward Looking Statements

Eastern Goldfields Limited has prepared this announcement based on information available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this announcement. To the maximum extent permitted by law, none of Eastern Goldfields Limited, its directors, employees or agents, advisers, nor any other person accepts any liability, including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this announcement or its contents or otherwise arising in connection with it. This announcement is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any security, and neither this announcement nor anything in it shall form the basis of any contract or commitment whatsoever. This announcement may contain forward looking statements that are subject to risk factors associated with gold exploration, mining and production businesses. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to price fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimations, loss of market, industry competition, environmental risks, physical risks, legislative, fiscal and regulatory changes, economic and financial market conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates.

Competent Persons Statement

The information in this report that relates to Mineral resources is based on information compiled under the supervision of Mr Andrew Czerw, an employee of Eastern Goldfields Limited, who is Member of the Australian Institute of Mining and Metallurgy (AusIMM). Mr Czerw has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Andrew Czerw consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

JORC CODE, 2012 EDITION – TABLE 1 REPORT TEMPLATE

Section 1 Sampling Techniques and Data

Sections 1 and 2 describe the work undertaken by Eastern Goldfields Limited and only refer to historical information where appropriate and/or available.

(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 cut channels,	•	All drilling and stockpile sampling programs were planned on a pre-planned grid pattern, except for samples of individual “truck dump
techniques		random chips, or specific specialised industry		piles”, where one sample was taken for each truck dump pile.
		standard measurement tools appropriate to the	•	Drilling - RC samples were routinely collected at 1m intervals and cone split, producing an approximately 3kg sample.
		minerals under investigation, such as down hole	•	For sampling of individual “truck dumps”, a single sample was taken (composited) from 5 different locations on each dump.
		gamma sondes, or handheld XRF instruments, etc).	•	Sampling on stockpiles of rocky or oversize material followed a procedure of making a visual percentage estimate of the different
		These examples should not be taken as limiting the		material types over a 1-2m radius around each sample point. 2-3kg of representative material is then collected, based on the initial
		broad meaning of sampling.		visual estimate.
	•	Include reference to measures taken to ensure sample	•	Sampling of softer oxide stockpiles, battery sands dumps or old tails dumps was conducted on a pre-planned grid pattern with
		representivity and the appropriate calibration of any		samples collected from a 20-30cm hole dug at each sample site.
		measurement tools or systems used.	•	All samples were sent to Nagrom Laboratories in Perth for a 50g fire assay analysis.
	•	Aspects of the determination of mineralisation that	•	Samples taken from battery sands stockpiles were analysed for Hg by aqua regia.
		are Material to the Public Report.	•	Samples taken from Callion low grade stockpiles were also analysed for Cu by aqua regia.
	•	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	•	Drill type (eg core, reverse circulation, open-hole	•	RC drilling used 5.25 and 5.5 inch face sampling hammer for the Sand King and Mulline Rose low grade stockpiles. The Mulline and
techniques		hammer, rotary air blast, auger, Bangka, sonic, etc)		Riverina battery sands were drilled using a 4 inch aircore blade bit to improve recoveries due to the fine, light material being drilled.
		and details (eg core diameter, triple or standard tube,
		depth of diamond tails, face-sampling bit or other
		type, whether core is oriented and if so, by what
		_method, etc). _
Drill sample	•	Method of recording and assessing core and chip	•	RC recoveries were recorded on the sampling table as either poor, moderate or good depending on the size of the sample recovered
recovery		sample recoveries and results assessed.		versus the expected sample size based on the drill bit diameter.
	•	Measures taken to maximise sample recovery and	•	There is no known relationship between sample recovery and grade.
		ensure representative nature of the samples.
	•	Whether a relationship exists between sample
		recovery and grade and whether sample bias may
		have occurred due to preferential loss/gain of
		fine/coarse material.
Logging	•	Whether core and chip samples have been	•	Given the nature of the drilling undertaken, chip samples were not routinely geologically logged. The interface between the base of
		geologically and geotechnically logged to a level of		the stockpile and the natural surface was identified by the geologist in order to ensure each hole was drilled deep enough to
		detail to support appropriate Mineral Resource		penetrate the bottom of the stockpile.
		estimation, mining studies and metallurgical studies.

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
	•	Whether logging is qualitative or quantitative in	•	Surface sampling geological information was not routinely captured.
		nature. Core (or costean, channel, etc) photography.
	•	The total length and percentage of the relevant
		intersections logged.
Sub- sampling techniques and sample preparation	• • •	If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and	• •	RC samples were routinely collected at 1m intervals from a cone splitter and submitted for analysis. Samples were crushed, pulverised and a 50gm charge taken for fire assay analysis. Field duplicates, blanks and standards were submitted for QAQC analysis. All non-drilling samples were collected as 2-3kg samples and submitted for analysis. Samples were jaw crushed, pulverised and a 50gm fire assay analysis undertaken.
		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	•	The nature, quality and appropriateness of the	•	All samples were sent to Nagrom Assay Laboratories to be analysed for gold by 50gm fire assay. Certified reference material standards
assay data		assaying and laboratory procedures used and		were employed for a gold range of 0.32 to 48.55ppm. Blanks were also employed. Satisfactory results were obtained for both. Field
and		whether the technique is considered partial or total.		duplicates were routinely taken from RC sampling. Nagrom Laboratories conducted routine lab checks.
laboratory tests	•	For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining	• •	Samples taken from battery sands stockpiles were analysed for Hg by aqua regia digest. Samples taken from stockpiles within the Callion deposit area were analysed for Cu by aqua regia digest.
		the analysis including instrument make and model,	•	Certified reference material and blanks were submitted with all surface sampling laboratory jobs.
		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) andprecision have been established.
Verification	•	The verification of significant intersections by either	•	EGL; Drilling data (metadata, sampling) is logged directly into field computer. Surface sampling data was captured on hardcopy
of sampling		independent or alternative company personnel.		sampling sheets in the field and data entered into MS Excel spreadsheets. Data is transferred to Perth via Dropbox or email and
and assaying	•	The use of twinned holes.		imported into SQL database by the database administrator (DBA). Assay files are received in .csv format and loaded directly into the
	•	Documentation of primary data, data entry		database by the DBA. Hardcopy and/or digital copies of data are kept for reference if necessary.
		procedures, data verification, data storage (physical	•	No twin holes were drilled.
		and electronic) protocols.	•	No adjustments have been made to assay data.
	•	Discuss any adjustment to assay data.
Location of	•	Accuracy and quality of surveys used to locate drill	•	All drillhole collar locations were surveyed by DGPS. No downhole surveys were undertaken due to the shallow nature of the drilling.
data points		holes (collar and down-hole surveys), trenches, mine	•	Surface sample locations were recorded by DGPS or hand held GPS.
		workings and other locations used in Mineral	•	The grid system used is GDA1994 MGA Zone 51.
		Resource estimation.	•	At close of mining in 2008, Monarch Gold surveyed all remaining stockpiles at the Walhalla and Federal Flag deposit areas, as well as
	•	Specification of the grid system used.		stockpiles on the Davyhurst ROM pad. These volumes are considered adequate for resource estimation.
	•	Quality and adequacy of topographic control.	•	Stockpile volumes estimated by EGS were determined in a few of different ways. In most cases, the volume was calculated using air
				photo area estimates (using Micromine or GIS software) combined with estimated stockpile heights using visual field estimates or
				DTM data gathered from a high resolution aerial photography survey flown in 2016 by Aerometrex. The crest and toe of some
				stockpiles were surveyed usinga DGPS,creatingstringfiles in which 3D wireframes were constructed in Micromine 2016. Where

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
				dumps comprised individual truck piles, volume determination of each pile was estimated by the sampler in the field using the height
				and diameter of the pile as a guide.
Data spacing	•	Data spacing for reporting of Exploration Results.	•	Drill hole spacing varied from 8m x 7m to 20m x 20m.
and	•	Whether the data spacing and distribution is	•	Grid pattern surface sampling spacing ranged from 5m x 5m up to 15m x 15m.
distribution		sufficient to establish the degree of geological and	•	Samples are not composited for reporting.
		grade continuity appropriate for the Mineral	•	Samples are composited for resource calculations.
		Resource and Ore Reserve estimation procedure(s)
		and classifications applied.
	•	Whether sample compositing has been applied.
Orientation	•	Whether the orientation of sampling achieves	•	Not applicable given all drilling and sampling was conducted on stockpiles.
of data in		unbiased sampling of possible structures and the
relation to		extent to which this is known, considering the deposit
geological structure	•	type. 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	•	The measures taken to ensure sample security.	•	EGL – Samples are bagged, tied and in a secure yard on site. Once submitted to the laboratories they are stored in cages within a
security				secure fenced compound. Samples are tracked through the laboratoryvia their LIMS.
Audits or	•	The results of any audits or reviews of sampling	•	Digital data from the SQL database has been reviewed by EGL and is consistent with hard copy and digital WAMEX data.
reviews		techniques and data.

Section 2 Reporting of Exploration Results

Section 2 Reporting of Exploration Results
(Criterialistedinthe preceding sectionalso apply to this section.)
Criteria **JORC Code explanation **	Commentary
Mineral tenement and land tenure status • Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. • The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	• The stockpiles mentioned in this report are located on the tenements listed below. Tenement Holder M30/0255 Carnegie Gold PTY LTD M30/0256 Carnegie Gold PTY LTD M30/0103 Carnegie Gold PTY LTD M30/0960 Siberia MiningCorporation PTY LTD • No stockpiles located on these tenements are subject to any royalty or joint venture agreements. • There are no heritage issues. • There are no known impediments to operatingin the area.
Exploration done by other parties • Acknowledgment and appraisal of exploration by other parties.	• Drilling on the tenements was completed by numerous operators, but the majority of work was completed by WMC, Gilt Edged Mining, Siberia Mining Corporation, Monarch Gold and Swan Gold. All work by these companies was to industry standards of the time.
Geology • Deposit type, geological setting and style of	• The main mineralisation style in the Davyhurst region is orogenic lode style deposits hosted bymafic rocks, predominantlybasalt.

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		mineralisation.	•	The stockpiles mentioned in this report are primarily low grade dumps of this type of material. Battery sands piles are remnant from early
				1900’s mining activities and primarily consist of fine quartz fragments and clay.
Drill hole	•	A summary of all information material to the	•	No drill assays are being released
Information		understanding of the 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.
Data	•	In reporting Exploration Results, weighting	•	No drill assays are being released
aggregation		averaging techniques, maximum and/or
methods		minimum grade truncations (eg cutting of high
		grades) and cut-off grades are usually Material
		and should be stated.
	•	Where aggregate intercepts incorporate short
		lengths of high grade results and longer lengths
		of low grade results, the procedure used for
		such aggregation should be stated and some
		typical examples of such aggregations should
		be shown in detail.
	•	The assumptions used for any reporting of
		metal equivalent values should be clearly
		stated.
Relationship	•	These relationships are particularly important	•	All drillholes were vertical and were taken to a depth just beyond the base of the stockpile.
between		in the reporting of Exploration Results.
mineralisation widths and intercept lengths	• •	If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole
		lengths are reported, there should be a clear
		statement to this effect (eg ‘down hole length,
		_true width not known’). _
Diagrams	•	Appropriate maps and sections (with scales)	•	No plans are being released.
		and tabulations of intercepts should be
		included for any significant discovery being
		reported These should include, but not be
		limited to a plan view of drill hole collar
		locations and appropriate sectional views.

Criteria	JORC Code explanation	JORC Code explanation	Commentary	Commentary
Balanced	•	Where comprehensive reporting of all	•	No drill intercepts are being reported.
reporting		Exploration Results is not practicable,
		representative reporting of both low and high
		grades and/or widths should be practiced to
		avoid misleading reporting of Exploration
		Results.
Other	•	Other exploration data, if meaningful and	•	Additional metallurgical work has been or is in the process of being completed for these stockpiles.
substantive		material, should be reported including (but not
exploration data		limited to): geological observations;
		geophysical survey results; geochemical survey
		results; bulk samples – size and method of
		treatment; metallurgical test results; bulk
		density, groundwater, geotechnical and rock
		characteristics; potential deleterious or
		contaminating substances.
Further work	•	The nature and scale of planned further work	•	Additional sampling/assaying is planned as this material is processed.
		(eg tests for lateral extensions or depth
		extensions or large-scale step-out drilling).
	•	Diagrams clearly highlighting the areas of
		possible extensions, including the main
		geological interpretations and future drilling
		areas, provided this information is not
		commercially sensitive.

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

Criteria	JORC Code explanation	Commentary
Database integrity • Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes. • Data validation procedures used. • Data from EGL drilling and grab sampling sent directly from the Laboratory and imported into Eastern Goldfields SQL database via DBMS. Validation checks in SQL database ensure data integrity is not compromised. • Data for use in resource estimation derived directly from SQL via queries (views). • The Database is centrally managed by a Database Manager, with access to the database regulated by specific user permissions. The Manager is responsible for data entry, validation and QAQC via SQL queries. Data that fails these tests is checked and corrected prior to reloading.
Site visits • Comment on any site visits undertaken by the Competent Person and the outcome of those visits. • If no site visits have been undertaken indicate why this is the case. • Numerous site visits were completed by the Competent Person during 2016 and 2017 to inspect stockpiles and review drilling and sampling practices.
Geological interpretation • Confidence in (or conversely, the uncertainty of ) the geological interpretation of the mineral deposit. • Nature of the data used and of any assumptions made. • Confidence in the ‘geological’ interpretation is high as stockpiles comprise either laterite leach vats, low grade ore dumps, or battery sands. • RC drill chips and unbiased grab samples were used in the estimates. • The stockpiles are clearly defined and cannot be represented by an alternate interpretations. • The stockpile boundaries are used as hard boundaries duringthe estimation.

Criteria	JORC Code explanation	Commentary
• The effect, if any, of alternative interpretations on Mineral Resource estimation. • The use of geology in guiding and controlling Mineral Resource estimation. • The factors affecting continuity both of grade andgeology. • Grade and geology defined by stockpile limits.
Dimensions • The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource. • A total of 35 stockpiles were tested from four project areas; Callion, Davyhurst, Mulline, and Siberia. Stockpiles volumes varied from an estimated volume of 1 tonne to 181, 000 tonnes.
Estimation and modelling techniques • The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used. • The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data. • The assumptions made regarding recovery of by-products. • Estimation of deleterious elements or other non-grade variables of economic significance (eg sulphur for acid mine drainage characterisation). • In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed. • Any assumptions behind modelling of selective mining units. • Any assumptions about correlation between variables. • Description of how the geological interpretation was used to control the resource estimates. • Discussion of basis for using or not using grade cutting or capping. • The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available. • Estimates of the stockpiles were based on volume/grade calculations and the application of an average estimated bulk density dependant on material type. • Stockpile volumes were calculated using digital contoured imagery and/or direct DGPS survey of crest and toe. • Densities were estimated based on material type with a void factor applied to account for the material not being in-situ. • An average stockpile grade was determined from RC samples and/or grab samples. • No check estimates or previous estimates of the stockpiles were available. • No assumptions have been made regarding recovery of by-products. • Samples from the battery sands stockpiles were analysed for mercury. All other stockpiles were only estimated for gold grade. • No block models were created to estimate the stockpiles. • No assumptions were made regarding selective mining units. The stockpile material comprises previously mined material. • Only gold was estimated so no correlation between variables was carried out. • The Stockpiles were modelled as 3D wireframes using Micromine software and used as hard boundaries in the grade estimation. • Top cuts were applied based on statistical analysis of grade distribution within each stockpile. • No validation or reconciliation has been completed.
Moisture • Whether the tonnages are estimated on a dry basis or with natural moisture, and the method • Tonnages and grades were estimated on a dry in situ basis. No moisture values were reviewed.

Criteria	JORC Code explanation	Commentary
of determination of the moisture content.
Cut-off parameters • The basis of the adopted cut-off grade(s) or quality parameters applied. • The stockpile grade and tonnage estimates have not been reported at a particular cut-off. The estimation was primarily completed to determine stockpile tonnage and expected grade, to determine which could be economically used as throughput for the Davyhurst Plant.
Mining factors or assumptions • Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining 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. • The stockpiles represent previously mined material. • No mining parameters or modifying factors have been applied to the stockpile estimates.
Metallurgical factors or assumptions • The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral 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 made. • EGS commissioned a consulting Metallurgist (Nathan Stoitis from Extreme Metallurgy) to review the proposed treatment of the low grade stocks and provide recommendations. An initial test program has subsequently commenced. Test parameters include a p80 75um grind with gravity step and monitoring reagent and gold leaching over time with inclusion of assays for copper and mercury. The test program utilised ALS laboratory and was overseen by Extreme Metallurgy.
Environmental factors or assumptions • Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining 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. • The previous mining operations included the development of waste dumps at the site. These dumps will be expanded to accommodate additional waste disposal. • The area is not located in an environmentally sensitive area so there is no reason to believe that environmental approvals would restrict mining of the stockpiles.
Bulk density • Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples. • Bulk density determinations were assumed values based on type of stockpile material. A void factor (generally of 20%) was applied to account for the fact that the material is not in-situ. • Bulk density values used in the estimates ranged from 1.7t/m3to 2.5t/m3and are considered representative of the types of material contained within the stockpiles.

Criteria	JORC Code explanation	Commentary
• The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit. • Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.
Classification • The basis for the classification of the Mineral Resources into varying confidence categories. • Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data). • Whether the result appropriately reflects the Competent Person’s view of the deposit. • Mineral Resources were classified in accordance with the Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC, 2012). The Mineral Resource was classified as Inferred Mineral Resource on the basis of data quality, and the nature of the grade/tonnage estimation method. • The results appropriately reflect the Competent Persons view of the stockpiles.
Audits or reviews • The results of any audits or reviews of Mineral Resource estimates. • The estimate was internally reviewed by suitably qualified EGL personnel.
Discussion of relative accuracy/ confidence • Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate. • The statement should specify whether it relates to global or local estimates, and, if local, state the relevant tonnages, which should be relevant to technical and economic evaluation. Documentation should include assumptions made and the procedures used. • These statements of relative accuracy and confidence of the estimate should be compared withproduction data, where available. • The stockpile estimates are considered to be reported with a reasonable degree of confidence. • The stockpile estimate relates to global estimates of tonnes and grade. Confidence in the estimate allows reasonable quantification of global metal content. However at a local scale there are risks associated with the estimation, largely due to the stockpiles consisting of previously mined material, so voids and local grade variations may occur. • No production data specific to these stockpiles was available.