POLARX LIMITED — Capital/Financing Update 2016

Jul 27, 2016

MINERALISED TREND AT CARIBOU DOME EXTENDED BY A FURTHER 1,000m+

Highlights

• Recent IP surveying, drilling and mapping has extended the strike extent of mineralisation at the Caribou Dome Copper Deposit by >1,000 metres, along the “Menel IP Trend”:

• New, strong, undrilled IP anomalies now extend over an additional >1,000 metres of strike, contiguous with and immediately NE of the previously drilled 700m‐long corridor of known high‐grade copper mineralisation

• Copper‐rich massive sulphides have been intersected about 290m below surface in initial drilling at the SW end of the Menel IP Trend – proving this new >1,000m long trend is mineralised at depth

• Extensive copper mineralisation (bornite, malachite, and azurite) has been discovered at surface in outcrop at the NE end of the Menel IP Trend – increasing the strike extent of the known mineralisation by >1,000m

• Drilling, with two rigs on site, will now focus on determining the geometry and tenor of this newly discovered mineralisation

• IP surveying is now progressing to the W/SW of the Caribou Dome Deposit itself, over other strong soil geochemistry anomalies and outcropping copper mineralisation, in anticipation that additional drill targets will be delineated

Coventry Resources Limited (ASX:CYY; “Coventry” or “the Company”) is pleased to announce very encouraging results from ongoing exploration activities at the Company’s high‐grade Caribou Dome Copper Project in Alaska, USA (“Caribou Dome Project” or “Project”).

During the past two months the Company has been undertaking ground geophysics surveying (specifically induced polarisation (“IP”) surveying), drilling, mapping and soil sampling programs. To date, 5 drill holes have been completed as part of an 8,000m drilling program, for a total of 2,371m. Two diamond core rigs continue to drill at the Project.

The results of this ongoing work include the intersection of copper‐ rich massive sulphide mineralisation 290m below surface at the previously untested Menel Target – the size and significance of which has been greatly enhanced by this new discovery and by new IP data that show that this high‐priority target extends for >1,000 metres along strike (now the “Menel IP Trend”). Indeed recent reconnaissance resulted in the discovery of extensive copper mineralisation in outcrop at the other (NE) end of this corridor.

Coventry Resources Limited (ACN 161 615 783): Suite 9, 5 Centro Avenue, Subiaco Western Australia 6008 PO Box 457, West Perth Western Australia 6872 t: +61 8 9226 1356 f: +61 8 9226 2027 e: info@coventryres.com www.coventryres.com

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THE MENEL IP TREND

IP Surveying

During 2015 Coventry completed IP surveying over 1.5km of strike, centred on the Caribou Dome Deposit. A very strong IP anomaly was delineated over the Deposit itself. Subsequent exploration drilling at several adjacent strong untested IP anomalies led directly to the discovery of additional thick, high‐grade mineralisation, including at the previously undrilled Lense 2 and Lense 7/8 Targets (see Figure 1).

Because the 2015 IP survey was so successful, in June 2016 the Company commenced another, larger, pole‐ dipole IP survey to test for strike extensions of the mineralisation. The Company believes that delineation of strong IP anomalies in prospective stratigraphic positions, preferably with coincident geochemistry anomalies, will fast‐track the discovery of additional mineralisation at the Project.

More than 3km of strike have now been covered in the ongoing 2016 IP survey (initial coverage comprised an area immediately to the NE of the 2015 survey area). Preliminary data have been received for approximately half of this 3km area, with data processing of the remaining data still in progress (see Figure 1).

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Figure 1. 200m depth slice of inverted IP data acquired during 2016 at the Caribou Dome Project (image on the RHS) superimposed on 100m depth slice of inverted IP data acquired during 2015 (image on the LHS). There is a strong correlation between IP anomalism and known mineralisation.

Very encouragingly, a new 1,000m long corridor of strong IP anomalism, which is contiguous with the previously drilled mineralisation, has been delineated in recent surveying (see the “Menel Target” and the “New IP Targets on the Menel Trend” in Figure 1). These anomalies are located at the contact between the sediment and volcanic sequences, the same stratigraphic position that the Caribou Dome Deposit itself occupies, and the Company’s preferred stratigraphic position for new targets (see Figure 2). Strong copper in soil anomalies coincide with this

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new corridor of IP anomalies (see Figure 3), which provided further encouragement that the Menel IP Trend is associated with mineralisation.

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Figure 2. Location of IP anomalies and all drilling completed to date on image of the 1[st] vertical derivative of aeromagnetic data at the Caribou Dome Project. The recently delineated Menel Trend IP anomalies are at the same stratigraphic position as the Caribou Dome Deposit itself – at the contact between the volcanic and sediment sequences. Outcropping copper mineralisation has recently been discovered to coincide with these anomalies, which are yet to be drill‐tested.

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Figure 3. Location of IP anomalies and all drilling completed to date on image of copper soil geochemistry. The recently delineated Menel Trend IP anomalies coincide with strong copper‐in‐soil anomalies. Outcropping copper mineralisation has recently been discovered to coincide with these anomalies, which are yet to be drill‐tested.

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Drilling

To date the Company has completed three holes (1,527m) in its initial evaluation of the Menel IP Trend.

While two of these holes are now interpreted to have been too shallow to intersect the source of the IP anomaly, the second hole drilled in this area, CD16‐005, intersected 46 metres of mineralised sediments at the target depth. Variable quantities of chalcopyrite (copper sulphide) were evident throughout these sediments, including a 0.5m thick interval of chalcopyrite‐rich massive sulphides at the base of the sediments (see Photo 1 and Figure 1). These massive sulphides are about 290 vertical metres below surface. Although assay results are pending (expected in late August) the visual results confirm that the SW end of the >1,000m long Menel IP Trend is mineralised, and indeed that high‐grade copper mineralisation extends to significant depths.

The mineralisation intersected in CD16‐005 is located more than 120 metres along strike from the nearest previous drill hole, CD11‐01, which itself was a short hole that intersected shallow, very high‐ grade mineralisation (0.6m @ 16.4% Cu from 40.2m). It is highly likely that additional, thicker mineralisation will be present in the area between CD11‐01 and CD16‐005, and indeed further along strike and both up‐ and down‐dip of these two drill holes. Accordingly the Menel IP Trend continues to be a very high‐priority area for further drilling.

A fourth relatively deep hole, CD16‐007, is currently being drilled mid‐way between CD11‐01 and CD16‐005. It is expected that this hole will be completed within the next week. It is planned to then immediately drill up to 6 shallower holes at the SW end of the Menel IP Trend to test for shallower extensions of mineralisation in this area. These holes should be completed by mid‐August.

Mapping

Photo 1: Chalcopyrite‐rich massive sulphides in CD16‐005 ‐ the second hole drilled to test the Menel IP anomaly

During recent initial field reconnaissance at the NE end of the Menel IP Trend, geologists discovered extensive outcrops of copper mineralisation (bornite, malachite and azurite) that coincide with the NE end of the Menel Trend IP anomaly (see Figure 1 and Photos 2 and 3). This mineralisation is evident over an area that measures approximately 100m x 60m. Extensive mineralised float is also evident down‐slope of these outcrops.

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Photos 2 and 3: Bornite (copper sulphide), malachite and azurite (copper carbonates) in outcrop at the NE end of the >1,000m long Menel IP Trend.

A new access track and drill pads are currently being installed so that first‐pass drill testing can be undertaken at the NE end of the Menel Trend IP anomaly in the coming weeks.

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ONGOING SITE ACTIVITIES

Drilling

The Company has had two drilling rigs at the Project since late June. Unfortunately one of these rigs (the first that arrived in early June) has repeatedly broken down. While the drilling contractor is confident that the mechanical issues are now resolved, to date only two holes (for 844m) have been completed with this rig. These holes have both been drilled in reasonably close proximity to previous drilling, with intent to enhance the design of a potential starter open pit. Modest visual mineralisation was intersected in both holes. Assay results are expected during August.

Over the coming weeks it is planned to utilise both drilling rigs on a series of shallower holes (see Figure 4). These will comprise:

• (i) Targeting the SW end of the Menel IP Trend, in the 120m long corridor between the copper‐rich massive sulphides intersected at depth recently in CD16‐005 and the shallow high‐grade mineralisation intersected to the SW in CD11‐01 (3‐6 holes);

• (ii) Drilling single fences of holes, approximately 50m along strike in both directions, from the deeper mineralisation intersected in Lense 6 at the Caribou Dome Deposit itself (4‐6 holes); and

• (iii) First‐pass drilling at the NE end of the recently delineated Menel IP Trend, where extensive copper mineralisation has now been discovered directly above the strong Menel Trend IP anomaly (4‐6 holes).

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Figure 4. Location of drilling planned to be completed over the coming weeks, on IP anomalies.

IP Surveying

IP surveying coverage has now been extended, beyond the limits of the 2015 IP survey, by more than 3km of strike to the NE.

The pole‐dipole configuration used in this years’ IP survey has deliberately been designed to detect deeper sources than the configuration employed in 2015 (100m dipoles in 2016 vs. 50m dipoles in 2015). Accordingly the area that was surveyed last year is being resurveyed again this year, as deeper targets may be defined. Re‐

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surveying of this area is nearing completion. The geophysics crew will then systematically continue to extend the IP survey to the W/SW, over several more kilometres of strike, including coverage over numerous strong soil geochemistry anomalies (see Figure 3).

The Company will continue to integrate, immediately it comes to hand, all new technical information it receives into its forward planning to ensure it refines priorities and targets for further drilling.

With drill targets now even better refined, two rigs operating again, and with plans to drill shallower holes over the coming weeks, more frequent news flow is expected in the near term.

Mike Haynes Managing Director/CEO

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COVENTRY RESOURCES LIMITED ‐ BACKGROUND

Coventry Resources Ltd is an ASX‐listed copper explorer. Coventry’s primary asset is its right to acquire an 80% interest in the highly prospective, high‐grade Caribou Dome Copper Project in Alaska, USA.

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The Caribou Dome Project is located 250km north‐east of Anchorage, Alaska’s main port. There is road access all the way to the Project. Rail and high voltage power are both accessible 100km west of the Project, at Cantwell.

Alaska is a stable, pro‐mining jurisdiction. Approximately 80% of the state’s GDP comes from mining and resources, with six large‐scale mines currently in production. Alaska’s largest alluvial gold field, Valdez Creek, is ~15km from the Caribou Dome Project.

Mineralisation was discovered at the Project in 1963. From 1963‐1970 nine lenses of sediment‐hosted copper mineralisation were delineated over approximately 700 metres of strike. 95 diamond core holes were drilled during this period, from surface and underground. This drilling was concentrated primarily on just 250 metres of strike, at Lenses 4, 5 and 6.

Very limited exploration had been undertaken since 1970, until Coventry secured the rights to explore and develop the Project in February 2015.

In 2015 Coventry compiled all historic technical information, prioritised targets arising, completed a ground geophysics (induced polarisation) survey, and completed 4,300 metres of diamond core drilling. Confirmatory drilling validated previous work and the Company’s initial results from work undertaken to further expand the resources at the Project have been very promising. All drilling (prior to 2016) is within a 700m long corridor, with mineralisation remaining open in both directions along strike and at depth. Significant intersections in drilling include:

• 51.1m* at 5.3% Cu from 4.4m

• • 18.1m at 9.3% Cu from 22.7m • 14.1m at 9.9% Cu from 134.6m • 18.4m at 6.3% Cu from 31.4m

• 15.4m at 7.0% Cu (U/G drill hole)

• • 10.4m at 7.9% Cu from 14.0m

• 12.8m at 5.8% Cu (U/G drill hole)

• 13.0m at 4.9% Cu (U/G drill hole)

• • 10.1m at 7.1% Cu from 39.0m • 9.1m at 7.0% Cu from 28.7m • 10.2m at 6.2% Cu from 46.6m • 12.2m at 5.0% Cu from 27.1m

• True width estimated to be approximately 25m

Multiple high‐priority targets remain undrilled. With >18km of the stratigraphic horizon that hosts the mineralisation evident within the Company’s project area, there is considerable potential to discover additional high‐grade mineralisation and to continue to expand the resource base at the Project. The Company commenced a second, substantial program of field work at the Project in May 2016.

Qualified and Competent Person

The information in this announcement that relates to exploration results for the Project is based on information compiled by Mr Ben Vallerine, who is a consultant to the Company and holds an indirect shareholding in the Company. Mr Vallerine is a Member of the Australian Institute of Geoscientists. Mr Vallerine has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and 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 (JORC Code). Mr Vallerine is also a Qualified Person as defined by Canadian National Instrument 43‐101 Standards of Disclosure for Mineral Projects. Mr Vallerine consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

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Forward Looking Statements

This news release may contain "forward‐looking statements" and/or "forward‐looking information" within the meaning of applicable securities regulations in Canada and the United States (collectively, “forward‐looking information"). Any forward‐looking information contained in this news release is made as of the date of this news release. Except as required under applicable securities legislation, Coventry does not intend, and does not assume any obligation, to update this forward‐looking information.

Any forward‐looking information contained in this news release is based on numerous assumptions and is subject to all of the risks and uncertainties inherent in the Company’s business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward‐looking information. Readers are cautioned not to place undue reliance on forward‐looking information due to the inherent uncertainty thereof.”

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