ORE RESOURCES LIMITED — Capital/Financing Update 2014

Mar 16, 2014

17 March 2014

Market Announcements Platform ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000

Near Term Production Strategy Update

Manica Gold Project

Highlights

• Scoping study confirms robust economics of a centralised standalone 30Ktpm nonrefractory[1] gold plant to provide early cash flow ( Stage 1 ).

• 165,500oz Au non-refractory resource ( Table 1 ) in Measured and Indicated categories (with further upside of 92,800oz Au in Inferred) forms the base of the Manica Gold Project’s Stage 1 Definitive Feasibility Study ( Stage 1 DFS ).

• Stage 1 is the key to unlocking the larger Stage 2 expansion as it exposes the deeper refractory ores found at Fair Bride below c60m. The Stage 2 DFS will consist of a 120Ktpm open pit and underground mining operation producing +90Kozs of Au per annum.

• Stage 1 is designed to be expanded to 60Ktpm ( Stage 3 ) based on the outcome of further exploration drilling within our current Mining Concession and consolidated areas.

• Stage 1 DFS engineering design to commence.

Mozambique-focused gold explorer Auroch Minerals NL (ASX:AOU) ( Auroch or the Company ) is pleased to provide shareholders with an update on its near term route to production for the development of the non-refractory resources at the Fair Bride, Dot’s Luck, Guy Fawkes and Boa Esperança deposits.

A key objective of the Stage 1 development strategy has been to ensure a robust IRR, a positive NPV and an economically sustainable standalone project, while critically creating a pathway to unlock the value of the total resource of 2,820,100 oz Au ( Table 2 ) through Stages 2 and 3 in the future. This is achieved despite the Stage 1 development carrying directly and indirectly US$24.2 million of costs that will directly benefit Stages 2 and 3, with lower operating costs and capital expenditures.

1 Refer to Annexure 2 for a full definition of non-refractory and refractory material.

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Over the past 8 months all of the work programs identified in the original scoping study (refer announcement 3 July 2013) have been completed, these include:

• Submission and approval of DTI non-dilutionary grant funding of approximately A$870 000[2] ;

• Submission of the Environmental Impact Assessment and the Rights of Land Use and Benefit Direito de Uso e Aproveitamento da Terra (DUAT) to the Mozambique Ministry of Coordination of Environmental Affairs (MICOA) in accordance with the terms of the mining concession;

• In-fill drilling at Dot’s Luck and Guy Fawkes totalling 8,249m of diamond drilling and 1,010m of RC drilling with 1,867m of trenching specifically at Guy Fawkes;

• Verification and validation of the Dot’s Luck and Guy Fawkes geological structures together with the updated resource model prepared by CSA Global Consultants resulted in an updated mineral resource estimate ( MRE ) (refer announcement 4 March 2014);

• A detailed internal due diligence and data analysis of the Fair Bride structure;

• Tailings disposal and geotechnical consultants issued reports for the placement and preliminary design of the gold plant and tailing disposal facility;

• Metallurgical test work to confirm preliminary recovery factors (see report dated 15 November 2013). Preliminary results confirm the historical Pan African test work and estimates used in the scoping study;

• This metallurgical test work has been extended (refer report date 14 March 2014) to include a series of flotation and subsequent ultra-fine grinding ( UFG ) tests on the ores at Fair Bride. The results of these UFG test show Au recoveries of 88% on non-refractory transitional ores;

• Preliminary open pit designs by RHDHV Mining Consultants and initial infrastructure capital estimates from Basil Read Matomo were completed;

• The gold plant process design has been updated, mass balances re-calculated and key equipment lists including mining equipment have been re-priced; and

• Prefeasibility Studies estimation accuracy of the capital requirements over the life of mine of Stage 1.

Independent advisers JP Mining Consulting (Pty) Limited ( JPMC ) have updated the initial scoping study to include the work completed above, including the MRE for Stage 1 ( Updated Scoping Study ). The Updated Scoping Study includes the following assumptions:

• All non-refractory resources, including Inferred resources have been used with appropriate conversion and modifying factors applicable for the style of mineralisation and mining method.

Table 1: Non-Refractory Resources to be used in the Stage 1 DFS	Table 1: Non-Refractory Resources to be used in the Stage 1 DFS	Table 1: Non-Refractory Resources to be used in the Stage 1 DFS	Table 1: Non-Refractory Resources to be used in the Stage 1 DFS
Classification	Tonnes	Aug/t	Ounces
Measured	1,996,000	1.73	111,000

2 Based on a Rand/Australian dollar of 9.20.

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Indicated	929,000	1.83	54,500
Inferred	941,000	3.07	92,800
Total	3,866,000	2.08	258,300

Cut Offs: Measured 0.50g/t; Indicated 0.50g/t <300m and 1.00g/t >300m; Inferred 0.50g/t

• The Stage 1 plant is centrally located on the Mining Concession ( Figure 1 ) and the production profile is show in Figure 2 ;

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Figure 1: Showing the position of the centralised plant relative to the mining deposits

• The tailings disposal has expansion capacity built into it and has been designed to receive up to 60Ktpm;

• Estimated total production of 172,752 oz Au over an operating life of mine (LOM) of 8 years;

• An average head grade of 2.20 g/t Au ( Figure 2 ) is fed into the Stage 1 plant to produce an average +22,000 oz pa ( Figure 3 );

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Figure 2: Tonnage (oxide, sulphide and transitional ores) (Kt) and Grade Profile (g/t) over the life of the Stage 1 Project

• A long term gold price of US$1,336/oz[3] ;

• Included in the Stage 1 Project scope is a flotation and an Ultra-Fine Grinding (UFG) circuit for the treatment of non-refractory transitional ores (mined at Fair Bride and Dot’s Luck within the first 18 months) and a refractory pilot plant for further test work. The benefits of including the UFG process are twofold:

• To treat and maintain the recoveries of the transitional ore well above 80% during Stage 1; and

• To provide data on the most effective treatment of refractory ore.

The inclusion of the Pilot Plant, as recommended in the preliminary Biox laboratory report, is to confirm the historical laboratory tests on these refractory ores which indicated recoveries of ±88%. Test work to replicate these recoveries on a production scale through the use of the Pilot Plant will determine the efficacy of Stage 2 (120Ktpm refractory plant). However, the results of recent UFG metallurgical test show Au recoveries of 88% on non-refractory transitional ores that may translate into the delay or complete elimination of an oxidation process (e.g. Biox) for the future treatment of the deeper refractory ores at Fair Bride.

3 Gold price estimate from Bloomberg Analysts (Sept 2013):

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Figure 3: Recovered Au Metal (Kozs) and Recovery (%) over the life of the Stage 1 Project

• Average total operating cost (steady state) of US$51.8/t milled or US$777/oz (excludes capex and is before tax, depreciation) ( Figure 4 ). The inclusion of a flotation, UFG circuit and Pilot Plant has added 5% to the average total operating costs in US$/ton, subject to confirmation by the Stage 1 DFS. This approach is the key to unlocking the 2.5Moz ( Annexure 1 ) refractory resource that includes 1 million ounces at an average grade of 4.13 g/t Au (based on a cut-off grade of 3g/t Au) at Fair Bride; and

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Figure 4: Steady State Total Operating Costs (US$/oz) (excludes capex and is before tax, depreciation)

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• Preliminary mine designs have been completed including:

• Simple conceptual open pits for the Fair Bride ( Figure 5 ), Dot’s Luck ( Figure 6 ) and Boa Esperança deposits, to a maximum depth of approximately c60m; and

• Shallow depth underground semi-mechanised open stoping at the Guy Fawkes deposit.

These preliminary designs have provided the production schedules for sizing of the Stage 1 plant.

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Figure 5: Fair Bride conceptual pit design

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Figure 6: Dot’s Luck conceptual pit design.

• Stage 1 capital expenditure has been scoped at US$39m in January 2014 constant money and includes items that have direct benefits and savings attributable to the expansion (Stage 2 and 3) as follows:

• a. The cost of relocating all families associated to the mining areas and plant are incorporated in the scope. The preliminary capital cost of the relocation plan is US$2.7m and this has a direct benefit on Stage 2.

• b. Mining and overburden stripping of the Stage 1 resource at Fair Bride exposes the Stage 2 refractory ores. Approximately 2 million cubic metres of overburden is stripped (at a ratio of 2.54:1) during Stage 1 at a cost of US$15m. This is reflected as an indirect benefit to the Stage 2 project as it is paid for from Stage 1.

• c. Infrastructure (roads, services, workshops, conveyors, etc.) will be utilised by the expansion and has an attributable value estimated at US$2.8m.

• d. Capital cost of UFG circuit and Pilot Plant of US$3.8m for processing and test work on refractory ores.

• e. EIA costs have already been incurred for the expansion to Stage 3 and include the refractory foot print (Stage 2).

Based on the JPMC Updated Scoping Study, the Auroch Board has authorised the Company to proceed with a Stage 1 DFS for the engineering design.

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Balance of Work to Complete Stage 1 DFS

Approximately 35% of the Stage 1 DFS has been completed to date and the balance of the scope of work to be completed by the 4[th] quarter 2014 is as follows:

• Underground sampling and additional drilling at Dot’s Luck, Guy Fawkes and Boa Esperança;

• Mining and Process engineering design and capital estimation;

• Provision of utilities (power and water contracts); and

• Completion of the relocation and social responsibility programs.

Future Expansion Projects

Stage 1 is the key to unlocking the Stage 2 expansion ( Figure 7 ) as it exposes the deeper refractory ores found at Fair Bride below c60m. The Stage 2 DFS will consist of a 120Ktpm open pit and underground mining operation producing +90Kozs of Au per annum.

The Auroch management team is comfortable that its current understanding of the geology, mineralogy and metallurgy of the Fair Bride refractory ore does not represent an unrealistic economic target or technical risk. The metallurgical test programme completed in March 2014 together with the planned Pilot Plant following the first six months of production will confirm and resolve any outstanding engineering design questions and trigger a Stage 2 DFS using either UFG and/or an oxidation process.

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Figure 7: Stage 1 is the key to unlocking Stage 2 and 3.

Stage 1 has the potential to be expanded to 60 Ktpm (Stage 3), subject to further exploration drilling within our current Mining Concession and consolidated areas (collectively, Exploration ). Two expansion options exist, in the event that either:

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1. Sufficient additional non-refractory Au ounces from Exploration are accumulated to extend the production profile of the Stage 1 plant for a further 10 to 12 years; and/or

2. An additional +350,000 oz Au resources from Exploration is accumulated which would trigger a decision point on the expansion from Stage 1 to Stage 3.

Managing Director Dean Cunningham commented “Pulling together all of the technical work over the past 8 months has produced a very robust project development strategy that both minimises capital and provides maximum upside flexibility to exploit the non-refractory resources as well as unlocking the potentially lucrative deeper Fair Bride refractory resources in the first instance.

We are in a confirmed gold camp and our exploration program within our mining concession and adjacent properties should result in additional resources that could justify the expansion of the Stage 1 project to 60Ktpm, from the 30Ktpm envisioned.

Importantly, the development and construction of a Stage 1 centralised plant will give the Company first mover advantage with the potential of further acquisitions or tolling arrangements through our processing facilities, giving Auroch greater flexibility in its operating process.”

For further information please visit www.aurochminerals.com or contact:

Dean Cunningham Managing Director T: +27 824906429 E: dcunningham@aurochminerals.com

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Competent Person Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Gordon Koll who is a registered Professional Natural Scientist (Pr.Sci.Nat.) under the South African Council for Natural Scientific Professions (SACNASP) and a Fellow of the Geological Society of South Africa, which is recognised as a ROPO by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code). Mr Koll is a full‐time employee of the Company. Mr Koll has sufficient experience which is 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 JORC Code. Mr Koll consents to the inclusion in this presentation of the matters based on the information in the form and context in which it appears.

The information in this report that relates to Mineral Resources is based on information reviewed by Dr W.D. Northrop who is a consultant to ExplorMine and is appointed as Independent Geologist to Auroch Minerals NL project team. He is registered by the South African Council for Natural Scientific Professions as a Professional Natural Scientist in the field of practice of Geological Science, Registration Number 400164/87, and as such is considered to be a Competent Person. Dr Northrop 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". Dr Northrop consents to the inclusion in this presentation of the matters based on his information in the form and context in which it appears.

The information in this Report that relates to in-situ Mineral Resources at Dot’s Luck and at Guy Fawkes is based on information compiled by David Williams of CSA Global Pty Ltd. David Williams takes responsibility for those parts of the report. He is a Member of the Australasian Institute of Mining and Metallurgy, and a Member of the Australian Institute of Geoscientists and has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration, and to the activity he is undertaking, to qualify as a Competent Person in terms of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves’ (JORC Code 2012 Edition). David Williams consents to the inclusion of such information in this Report in the form and context in which it appears.

The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled by Mr Gordon Koll who is a registered professional natural scientist (Pr.Sci.Nat.) under the South African Council for Natural Scientific Professions (SACNASP) and is a Fellow of the Geological Society of South Africa, which is a recognised professional organisation by the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code). Mr Koll is a full‐time employee of the Company. Mr Koll has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of The JORC Code. Mr Koll consents to the inclusion in this presentation of the matters based on the information in the form and context in which it appears.

The information in this report that relates to the Scoping Study is based on information reviewed by Professor Jim Porter who is a Fellow of the Southern African Institute of Mining and Metallurgy, visiting Professor to the Faculty of Engineering at the University of the Witwatersrand and has wide experience in gold deposits and mining methods as envisaged in the Scoping Study; accordingly he is a Competent Person in terms of the JORC code. In terms of the Scoping Study he is responsible for the Mineral Reserve Estimate and has reviewed and approved the Scoping Study section of this press release.

The information in this report that relates to the Metallurgical Test Work Program being conducted by SGS (Johannesburg) and is based on information received to date. It was compiled by Mr Graeme Farr, who is a Fellow of the South African Institute of Mining and Metallurgy. Mr Farr is contracted by the Company to oversee all issues relating to the design of the beneficiation process. Mr Farr has sufficient experience which is relevant to the type of beneficiation plant under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2012 Edition of The JORC Code. Mr Farr consents to the inclusion in this presentation of the matters based on the information in the form and context in which it appears.

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About Auroch Minerals NL

Auroch Minerals NL (ASX: AOU) is developing the multi-million ounce Manica Gold Project, Mozambique. Auroch owns 100% of the Mining Concession which has a granted 25 year Mining Right and is the largest JORC (2012) Code compliant gold resource in Mozambique.

Manica Gold Project Sectors

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	Table 2: Manica Gold Project MRE, February 2014	Table 2: Manica Gold Project MRE, February 2014	Table 2: Manica Gold Project MRE, February 2014	Table 2: Manica Gold Project MRE, February 2014
		Cut-off Au (g/t)		Grade Au (g/t)
Category	Project Sector		Tons (000’)		Total Au (oz)
Measured	Fair Bride*	0.50	11,561	1.73	642,000
Total Measured Resources			11,561	1.73	642,000
Indicated	Fair Bride*	0.50 < 300 m	10,795	1.64	570,000
		1.00 > 300 m
	GuyFawkes	1.25	420	1.92	25,600
	Dot’s Luck	0.50	425	1.87	25,500
Total Indicated Resources			11,640	1.66	621,100
Inferred	Fair Bride*	0.50	24,598	1.83	1,449,000
	GuyFawkes	1.25	380	3.90	48,000
	Dot’s Luck	0.50	455	2.06	30,000
	Boa Esperança*	1.25	330	2.94	30,000
Total Inferred Resources			25,763	1.88	1,557,000
Total Manica Gold Project Resource			48,964	1.79	2,820,1001

1 Inclusive of the 1,025,904oz at 4.13g/t Au using a 3.0g/t cut-off of refractory material *This information was prepared and first disclosed under the JORC Code 2004. It has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

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Annexure 1 – Fair Bride Refractory MRE

	Fair Bride Refractory MRE, February 2014	Fair Bride Refractory MRE, February 2014
Classification	Tonnes	Aug/t	Ounces
Measured	9,565,000	1.73	531,000
Indicated	10,567,000	1.64	558,000
Inferred	24,530,000	1.83	1,445,000
Total	44,662,000	1.76	2,534,0001

Cut Offs: Measured 0.50g/t; Indicated 0.50g/t <300m and 1.00g/t >300m; Inferred 0.50g/t 1 Inclusive of the 1,025,904oz at 4.13g/t Au using a 3.0g/t cut-off of refractory material

Annexure 2 - Definition of Non-Refractory and Refractory Resources

Exploration and test work completed to date on the Manica Gold Project indicates that there are several mineralisation types occurring over the Mining Concession (3990C) with the type of gold carrier defining the class of gold occurrence.

• Non-refractory ores can be defined as those ores where 90% or more of the contained gold is recoverable by conventional process routes such as gravity concentration, milling, and direct cyanide leaching. Where sulphides are the carrier additional selective grinding may be required dependent on the particle size.

• Refractory ores are defined as those that give gold recoveries of less than 90% when subjected to direct cyanidation or only give acceptable gold recoveries with the use of more complex precyanidation techniques. Techniques commonly associated with recovering gold from refractory material are Bio-oxidation (BIOX), Pressure Oxidation (POX) or Roasting.

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