ORE RESOURCES LIMITED — Interim / Quarterly Report 2017

Oct 30, 2016

ASX Code: AOU

Securities on Issue as at 31 October 2016:

76,810,865 fully paid ordinary shares (quoted)

300,000 options exercisable at $0.10 expiring 17/03/2018

1,000,000 options exercisable at $0.10 expiring 23/10/2018

20,394,650 options exercisable at $0.20 on or before 23 October 2018 5,295,402 options exercisable at $0.08 expiring 31/12/2018

Directors

Glenn Whiddon (Executive Chairman)

Ryan Gaffney (Non-executive Director) Matthew Foy (Non-executive Director)

Company Secretary

Matthew Foy

Contact

Office J, Level 2 1139 Hay Street West Perth WA 6005

Quarterly Activities Report as at 30 September 2016

Auroch Minerals Limited (ASX:AOU) ( Auroch or the Company ) is pleased to provide shareholders with the following summary of its activities during the September quarter.

OPERATIONS

Norseman Gold Projects, Western Australia

During the quarter the Company provided an update on its Norseman Gold Projects, Western Australia. Further to the Company’s announcement of 28 July 2016, reconnaissance mapping, rock chip sampling, and soil sampling programs were completed at the Beete Gold Project (P63/1646) and Peninsula Gold Project (P63/1694) early in September 2016. A total of 25 Hectares was mapped with 44 soil samples, and 22 rock chip samples collected.

The Beete Gold Project ( Figure 1 ) is located approximately 55 kilometres south of Norseman, with the Peninsula Gold Project ( Figure 2 ) located approximately 27 kilometres north of Norseman. A program of mapping and infill surface sampling is aimed at assessing the potential of known gold mineralisation within a narrow quartz vein, and the adjacent hanging and/or footwall shear. Recorded production post 1974 was 2,816 tonnes of ore at an average grade of 24.8g/t Au [2,300 ounces].

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P63/1646 - Beete
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Figure 1: P63/1646 - Beete Gold Project location map.

At the Peninsula Gold Project, a preliminary review of current data shows possible extensions of mineralised north-south trending quartz veins both along strike and at depth. A major quartz reef with five (5) historic mine shafts extends for the length of the tenement and was worked in the late 1800s and intermittently throughout the 1900s. Small scale open cut and underground mining occurred with a trial open pit mining operation yielding 424t of ore at 2.14 g/t Au, and a decline producing 495t of ore at 1.62 g/t Au. A program of surface mapping,rock chip sampling, and sol sampling was completed in September 2016 to assess the strike potential.

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Figure 2: P63/1694 - Peninsula Gold Project location map

Reconnaissance mapping

An area of 25 Hectares was mapped during the field program. East-West traverses were conducted across the tenements recording any outcropping lithology, alteration, and mineralisation.

The historic workings on the Beete Gold Project (P63/1646) were visited and hand specimens collected for assay. Gold mineralisation is hosted within a narrow quartz vein, and sometimes in the adjacent hanging and/or footwall shear. The vein conforms closely to the attitude of the host lithology quartzrich arenites and quartz-feldspar-amphibole schists.

At the Peninsula Gold Project (P63/1694), mineralisation was observed to be associated with northsouth trending quartz veins which dip at angles of 60-80 degrees to the east. A major quartz reef extends for the length of the tenement. At the north end of the tenement the main reef appears to have been faulted, and the geology is complicated by drag folding associated with faulting.

Soil sampling

A total of 44 soil samples were collected and analysed by portable XRF (Niton XL3t Analyzer) from the Beete and Peninsula Gold Projects. Samples were taken on a 150m x 50m grid across the tenements. Holes were excavated to 30 cm depth with the top 10 cm discarded. The sample was then sieved and the fine fraction (<2.80mm) collected. Finally, the fine fraction was analysed using "Test All Geo" mode which is suitable for rapid analysis of major, minor, and trace elements in geologic samples.

The samples were analysed for 45 elements and data is currently being plotted and interpreted with results expected in October 2016.

Rock chips

A total of 22 rock chip samples were collected from the Beete and Peninsula Gold Projects and submitted to ALS Laboratories in Kalgoorlie (WA) for gold determination by 50g Fire Assay. Additionally, the samples were analysed by portable XRF (Niton XL3t Analyzer). Rock chips were selected by identifying generally quartz rich and/or altered material from around old shafts/workings The sample was analysed using "Test All Geo" mode which is suitable for rapid analysis of major, minor, and trace elements in geologic samples.

The samples were analysed for 45 elements and data is currently being interpreted. Gold assays by 50g Fire Assay are awaited from ALS Laboratories in Kalgoorlie (WA).

Portfolio Growth

The Company has been seeking to expand its portfolio of projects to provide geological and commodity diversity.

Project opportunities from Africa, North and South America and Europe over the last quarter have been evaluated in detail.

Auroch CEO Dr. Andrew Tunks summed up Auroch’s recent evaluation work “The senior management within the Company believe Auroch is a premier vehicle and as such we are being quite selective on the portfolio growth opportunities we will commit to. Good opportunities do exist and we are honing our sights onto projects that offer immediate drilling targets on resource or pre-resource opportunities. We are also strongly focussed on targets in low geological risk environments where world class ore bodies exist in similar geological terrains.”

CORPORATE

Deed of Settlement with Xtract Resources Plc

During the quarter the Company advised it had entered into a deed of settlement with Xtract Resources Plc ( Xtract ) with respect to the US$2.5 million deferred consideration payable by Xtract to the Company ( Settlement Deed ).

Pursuant to the Sale Agreement (refer ASX Announcement 2 March 2016), three months following Completion Xtract was obliged to pay the Company Deferred Consideration totalling US$2.5 million comprising US$1.3 million cash and the remaining US$1.2 million payable in cash or XTR Shares at the Company’s election. The Company elected to receive the Deferred Consideration in cash.

Settlement Deed Terms

Subject to the Xtract’s compliance with the Settlement Deed, the Company has agreed to refrain from taking legal action against Xtract to enforce its obligation under the Sale Agreement to pay the Deferred Consideration on the following conditions:

• Xtract to make a first instalment payment of US$750,000 by 19 July 2016 (this has been paid); and

• Xtract to make a second and final payment of US$1,785,671.86 by 12 August 2016 ( Second Instalment ), which includes interest over the period 1 June 2016 to 19 July 2016, and interest on the Second Instalment over the period 20 July 2016 to 12 August 2016.

During the quarter the Company advised it had received US$100,000 of the Second Instalment and was in discussions with Xtract with respect to final settlement of the remaining US$1,685,671.86.

Expiry of Options

On 19 July 2016 the Company advised that 3,785,000 unlisted options exercisable at $0.15 on or before 18 July 2016 lapsed unexercised.

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

Auroch Minerals Limited

Glenn Whiddon Chairman T: +61 8 9486 4036

Interest in Mining Tenements

Western Australia

Tenement	Tenement ID	Status	Interest at beginning of quarter	Interest acquired or disposed	Interest at end of quarter
Beete	P63/1646	Granted	100%	-	100%
Peninsula	P63/1694	Granted	100%	-	100%