PAINCHEK LTD — Capital/Financing Update 2015

May 31, 2015

MinQuest To Complete Scoping Study on Marg Project following Transfer of Land Use Approval

Highlights

1 June 2015

• A Class 3 Mining Land Use approval has been transferred to MinQuest Limited for the Marg Project, located in the Yukon Territory, Canada;

• In July 2015, MinQuest is planning to conduct a drilling program to obtain samples for metallurgical test work and geotechnical testing;

• Drilling will also be undertaken with the objective of significantly increasing the defined Marg Mineral Resource which currently contains 11.74Mt at 1.27% Cu, 3.23% Zn, 1.55% Pb, 0.61g/t Au and 39.78g/t Ag utilising a 0.5% Cu cut-off, and has been classified under the JORC Code (2012);

• Approximately 8Mt of the Marg Mineral Resource is thicker than 3.5m true thickness at grades greater than 2%CuEq, factors which are positive for the potential development of the Project;

• Following upgrading of the existing Marg Mineral Resource and completion of initial metallurgical test work, the Scoping Study for the Marg Project will be updated before the end of 2015;

• Following updating of the Marg Project Scoping Study a decision will be made regarding the commencement of a Feasibility Study on the Project in 2016;

• Between the Marg and Fyre Lake projects, MinQuest’s project portfolio now contains 700,000t (approx.) of contained Cu Equivalent metal at a grade of 3% CuEq.

DIRECTORS

David Deloub Chairman

Jeremy Read Managing Director Paul Niardone Non-Executive Director

Adam Davey Non-Executive Director Kim Clark Company Secretary

SHARE INFORMATION ASX Code: MNQ Issued Capital: 130,125,008 Fully Paid Shares 61,589,766 Unlisted Options

CONTACT INFORMATION Registered Office: 96 Stephens Road South Brisbane, QLD 4101 T: +61 7 3844 0372 F: +61 7 3844 0154 www.minquest.com.au

MinQuest Limited ACN: 146 035 127

INTRODUCTION

MinQuest Limited (“MinQuest” or “The Company” ) (ASX:MNQ) is pleased to announce that the transfer of a Class 3 Mining Land Use Approval has been completed from MinQuest’s joint venture partner, Golden Predator Corp, for the Marg Project in the Central Yukon Territory, Canada. ( Figure 1 ). The transfer of the Mining Land Use Approval now enables MinQuest to proceed with exploration activities on the Marg Project, including drilling, geochemical sampling and trenching

MinQuest’s Managing Director Mr Jeremy Read said, “With the transfer of the Mining Land Use Permit for the Marg Project, MinQuest can now proceed with its planned exploration and drilling program over the northern hemisphere summer.”

“Our plan is to complete drilling to obtain new samples for metallurgical testing, to allow us to update our Scoping Study economic model for the Marg Project and then decide if MinQuest will proceed with a Feasibility Study on the Marg Project in 2016”

“The high grade nature of the copper Mineral Resource at the Marg, its proximity to local infrastructure, including grid power, makes the Marg a project worthy of detailed attention”, said Mr Read.

MARG PROSPECT

The Marg Project is located in the central Yukon, approximately 40km east of Keno City (Figure 1). The project consists of 402 quartz mining claims covering 84km[2] adjacent to the Category A land of the Na-cho Nyak Dun First Nation.

The Marg project consists of the main Marg deposit, a volcanogenic hosted massive sulphide (VMS) deposit hosted in the metasedimentary and metavolcanic rocks of the Devono-Mississipian Earn Group. The project also contains an additional 15km long belt of the same felsic metavolcanic and metasedimentary rocks that host the Marg Deposit. Within this belt, soil geochemical sampling has outlined several very promising anomalies that have yet to be properly drill tested.

The Marg deposit has been explored by nine diamond drill exploration programs from 1988 to 2008. At total of 33,876 metres of diamond drilling in 117 holes has been completed on the project. This drilling has defined mineralisation over 1400 metres strike distance, a down-dip distance of 700 metres and across a stratigraphic thickness of approximately 100 metres.

The drilling has defined a total Mineral Resource at the Marg Deposit of 11.74Mt at 1.27% Cu, 3.23% Zn, 1.55% Pb, 0.61g/t Au and 39.78g/t Ag utilising a 0.5% Cu cut-off, which has been classified under the JORC Code (2012) as set out below.

Table 1 – Marg Mineral Resource

Classification	Tonnes (Mt)	Cu %	Pb (%)	Zn (%)	Ag (g/t)	Au (g/t)
Indicated	3.96	1.57	1.92	3.90	49.40	0.79
Inferred	7.78	1.12	1.36	2.89	34.88	0.52
Total	11.74	1.27	1.55	3.23	39.78	0.61

The Marg Mineral Resource is reported in accordance with the guidelines of the 2012 edition of the Australia Code for reporting Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Full details on the resource can be found in the announcements made by MinQuest to the ASX on 17 March, 2015 and 7 May, 2015.

The mineralisation at the Marg Deposit remains open down-dip at depth, to the west along strike and to the east along strike at depth. The last drill program was completed in 2008 and further drilling has not yet been conducted to define the full extents of mineralisation.

A simple evaluation of the Marg deposit in terms of the mining potential shows that the higher grade resource is associated with the thicker mineralised zones and tends to be clustered in the central area of the deposit, plunging to the east. Of the 11.7Mt Mineral Resource (at a 0.5% Cu cut-off), approximately 8.0Mt are thicker than 3.5m true thickness at grades greater than 2.0% CuEq. The Marg deposit also dips from 45 degree to 70 degrees. These factors present a very positive scenario for the development of mining activities in the future.

MinQuest aims to explore the Marg project by drilling at depth and along strike with the intention to increase the size of the JORC compliant Mineral Resources at the Marg deposit. Significant exploration potential remains along the 15km strike length of favourable stratigraphy held within the extent of the projects tenements. The Jane Zone in particular represents a very attractive geochemical anomaly with mapping indicating the Marg VMS bearing horizons exists in the area.

MinQuest will also initiate studies for the purpose of updating the Marg Project Scoping Study. The metallurgical information on the project is limited and work is required to confirm the potential recovery of the various economic elements. MinQuest will select a reputable metallurgical testing company and complete this work from drilling conducted over the northern hemisphere summer months, commencing in July. With this information, MinQuest will be able to update the Scoping Study and determine if a full Feasibility Study on the project is warranted. If the Feasibility Study proceeds it will commence and be completed in 2016.

The Marg Mineral Resource is estimated to contain a total of 423,814t of copper equivalent metal. MinQuest’s Fyre Lake project, situated in the south-east Yukon contains the Kona Mineral Resource of 12.57Mt @ 1.56% Cu, 0.09% Co and 0.63g/t Au,

which is 2.22% CuEq (see announcement to the ASX on 23 January, 2015). The Kona Mineral Resource is estimated to contain a total of 279,054t of copper equivalent metal. Therefore, MinQuest’s combined metal inventory for the Marg and Fyre Lake projects is 702,868t of copper equivalent metal at a overall grade of 3% CuEq.

The Class 3 Mining Land Use permit was transferred from MinQuest’s joint venture partner Golden Predator and allows MinQuest to perform drilling, sampling, trenching and other exploration activities within the Marg project area. The permit contains industry standard protocols for environmental best practice and is valid until October 2016.

MinQuest has developed a positive relationship and continues consultation activities with the Na-cho Nyak Dun First Nations (NNDFN). MinQuest and the NNDFN have agreed on the principles that will form a Memorandum of Understanding for Exploration.

Competent Person Statement

This Mineral Resource estimate and technical information related to the estimate in this news release on the Marg Mineral Resources is based on information compiled by Mr. A.A. Burgoyne (P.Eng), who is a member of the Association of Professional Engineers and Geoscientists of British Columbia (APEGBC) and Mr. G.H. Giroux (P.Eng), who is a member of the Association of Professional Engineers and Geoscientists of British Columbia (APEGBC). Mr. Burgoyne and Mr. Giroux provided information to MinQuest Ltd. as paid consulting work in their capacity as Competent Persons and the results or conclusions reported were not contingent on payments. They are professionally and financially independent of MinQuest and of the Marg Project. They have sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, to qualify as Competent Persons as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code) and “Qualified Person” as this term is defined in Canadian National Instrument 43-101 (“NI 43-101”). Mr. Burgoyne and Mr. Giroux consent to the inclusion in this news release the information in the form and context in which it appears. The technical report can be found under Redtail Metals Corp. on SEDAR (www.sedar.com).

The information in this report that relates to exploration results is based upon information reviewed by Mr Chris Doornbos BSc (Hons) who is a Member of the Australasian Institute of Mining and Metallurgy and a Professional Member of the Association of Professional Engineers and Geoscientists of Alberta. Mr Doornbos is a full time employee of MinQuest Limited and 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 Doornbos consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Mr Doornbos is the Exploration Manager of MinQuest and currently owns 1,278,788 Fully Paid Ordinary Shares and has the entitlement to a further 606,060 deferred consideration shares subject to relevant milestone events being achieved.

Forward Looking Statements

This announcement contains “forward-looking statements”. Such forward-looking statements include, without limitation: estimates of future earnings, the sensitivity of earnings to commodity prices and foreign exchange rate movements; estimates of future production and sales; estimates of future cash flows, the sensitivity of cash flows to commodity prices and foreign exchange rate movements; statements regarding future debt repayments; estimates of future capital expenditures; estimates of resources and statements regarding future exploration results; and where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward looking statements are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such forward-looking statements. Such risks include, but are not limited to commodity price volatility, currency fluctuations, increased production costs and variances in resource or reserve rates from those assumed in the company’s plans, as well as political and operational risks in the countries and states in which we operate or sell product to, and governmental regulation and judicial outcomes. For a more detailed discussion of such risks and other factors, see the Company’s Annual Reports, as well as the Company’s other filings. The Company does not undertake any obligation to release publicly any revisions to any “forward looking statement” to reflect events or circumstances after the date of this release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.

Copper Equivalence Notes

The Copper Equivalent (CuEq) values are calculated based on the metrics in Table 2, such that CuEq = Cu Grade + ((Zn Grade x Zn Recovery x Zn Price) + (Pb Grade x Pb Recovery x Pb Price) + (Ag Grade x Ag Recovery x Ag Price) + (Au Grade x Au Recovery x Au Price)) / (Cu Recovery x Cu Price)

Table 2 – Values used to calculate copper equivalence (USD)

**Type **	Value	Unit
Cuprice	$2.60	$/lb
Znprice	$0.93	$/lb
Pbprice	$0.81	$/lb
Auprice	$1200	$/troyoz
Ag price	16.30	$/troyoz
Cu recovery	70	%
Zn recovery	75	%
Pb recovery	50	%
Au recovery	70	%
Agrecovery	70	%

It is the company’s opinion that the metals used to calculate the copper equivalent grade have a reasonable chance of being recovered and sold.

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70�N
Inuvuk
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(Alaska)
Nome Fairbanks YUKON MARG McQuestenLake
PROJECT
Anchorage Whitehorse
60�N D A V I D S O N
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1,000 km R A N G E P A T T E R S O N
Prince Rupert Edmonton R A N G E
7100000 LOCALITY MAP Calgary 7100000
50�N 160�W 140�W Vancouver 120�W
5.165 Mt @ 302 g/t Ag, 1.4% Pb, MARG
3.8% Zn, 50.213 Moz Ag (indicated)
0.836 Mt @ 350 g/t Ag, 2.0% Pb, 11.74 Mt @ 1.27% Cu, 3.23% Zn,
4.9% Zn, 9.403 Moz Ag (inferred) 1.55% Pb, 0.61 g/t Au, 39.78 g/t Ag
Bellekeno
Silver Mine
Elsa
Keno
Tiny Island
7080000 Lake 7080000
Mayo Lake
Edwards
Lake
Janet
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Mayo
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MARG PROJECT - YUKON, CANADA
Town or settlement Highway
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River or creek Minor road 0 5 10 15 20 km
Lake Winter road Drawn: RRM Date: 24.02.2015 Revision:
UTM Projection. Zone 8. NAD83 Datum. Checked: C. Doornbos Drawing No.: MARG-001.mxd Figure 1
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Dawson City 225 km
Whitehorse 400 km
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