PRODIGY GOLD NL — Capital/Financing Update 2013

Feb 3, 2013

ASX ANNOUNCEMENT / MEDIA RELEASE ASX:ABU

4th February, 2013

Significant Resource Upgrade for Old Pirate sets ABM for Trial Mining

ABM Resources NL ("ABM" or "The Company") is pleased to announce a resource update on the Old Pirate Project in the Northern Territory, Australia.

Category	Tonnes	Gold Grade(g/t)	Gold Grade(g/t)	Ounces Gold	Ounces Gold
		(300g/t top-cut)	(uncut)	(300g/t top-cut)	(uncut)
Indicated	889,000	8.19	8.93	234,100	255,300
Inferred	993,000	11.80	14.67	376,900	468,500
Total	1,882,000	10.10	11.96	611,000	723,800

Table 1. Old Pirate Trend Overall High-Grade Mineral ResourceEstimationJanuary 2013
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Mineral Resources estimated at 1g/t cut-off except for the Central Zone estimated at a 3g/t cut-off. Totals may vary due to rounding. There is an additional 414,900 tonnes averaging 1.74g/t gold for 23,300 ounces of gold in low-grade Indicated Resource in the Central Zone (>1g/t, <3g/t cut-offs).

• Significant upgrades compared to the 2012 Resource Estimation (top cut 300g/t model) for Old Pirate:
  • 43% increase in ounces of gold in total resource.
  • 300% increase in ounces of gold in the Indicated Resource category.
  • 27% increase in overall grade.
  • 56% increase in Indicated Resource grade.
  • Mineralised system remains open to the north, south and at depth.
• Includes a maiden Indicated Resource at the Golden Hind Discovery of:
  • 113,000 tonnes averaging 16.45g/t gold (1g/t cut-off) for 59,100 ounces including a high-grade core extending from surface to 40 metres of:
    • 34,000 tonnes averaging 45.58g/t gold for 49,200 ounces of gold.
• Buccaneer Porphyry Gold Project (located 3km from Old Pirate) resource update (including re-optimised model of higher grade zones) pending release shortly.

Figure 1. 3D view (to north-east) of the Old Pirate Trend resource model.

Darren Holden, Managing Director of ABM said, "These upgrades put the Old Pirate Deposit as one of the best un-developed high-grade deposits at surface in Australia. In particular, our 2012 work identified new zones as well as completed important infill drilling to greatly increase confidence of the model. This mineralised system is now defined over multiple high-grade veins and zones, covering nearly a 2 kilometre strike length, and remains open in several directions. The Western Limb, for example, has potential to more than double in strike length, with high-grade gold at surface, a further 800m along strike from the edge of the resource model. With the ultra high-grade Golden Hind Zone also at surface, along with exceptional metallurgical properties for gravity recoverable gold, we look forward to continuing exploration and implementing our trial mining tests."

Old Pirate Trend 2013 Updated Mineral Resource Estimation

The Old Pirate Trend consists of a series of gold deposits over a 1.8 kilometre strike length consisting of 3 distinct vein clusters of mineralisation named Old Pirate, Old Glory and Golden Hind deposits. Gold mineralisation is hosted primarily within narrow quartz veins of between 20 centimetres and 6 metres in width. Mineralised zones are up to 40 metres in width and consist of multiple veins hosted primarily within sedimentary shale horizons which are part of a turbidite sequence (interbedded sandstone and shales). Structurally the turbidite sequence has been folded into a faulted anticline. The resource modelling is based on a total of 56,652 metres of drilling of which 12,236 metres were drilled prior to ABM and 44,416 metres were drilled by ABM. In addition, a further 3,355 surface longitudinal trench samples were used to aid with the definition of near surface geology and grade distribution.

Resource modelling consisted of both manually constructed 3 dimensional grade shells and automated grade shells generated from Leapfrog modelling software. All mineralised grade shells were constrained by a geological model constructed by ABM. The grade shells were populated with a block model with minimum block dimensions of 0.5m, 1m, 1m (X,Y,Z). Grade was interpolated based on multiple passes using inverse distance squared and cubed statistical interpolation. Further details are contained in Appendix 1.

Domaining and Resource Category

The Old Pirate Trend has been separated into several domains with differing levels of geological and grade confidence. The Indicated Resource areas consist of zones where geological understanding and sample spacing is considered reasonable as required under the definition in JORC Code (2004, 2012) and are noted in Table 2 below.

Table 2. Old Pirate Indicated Resource Domains.

Domain	Dimensions	Geological description andwireframe	Samplepointsused todefine	IndicatedResourceTonnes	IndicatedResourcegold grade(g/t)(top cut300g/t)	IndicatedResourcegoldgrade(g/t)(uncut)	TotalOunces(topcut)	TotalOuncesuncut
Western Limb(1g/t cut-off)	600mstrike,width from 1m to10m.IndicatedResourcefromsurface to 150mdepth.	Series of parallel NNW-SSE quartz veinsdipping steeply to the west. Wireframemanually constructed based on 0.5g/t shellwithin geological model of a key marker shalehorizon known as Shale 8. Surface samplingshows veins from 0.2m to 4m width from asingle vein observed and drilling indicatestrue width of between 1m and 10m acrossmultiple veins. Mineralised zone widens atdepth on some sections.	926gradepoints.Drillspacing~25m.	562,000	7.12	7.6	128,600	137,200
Central Zone(3g/t cut-off)1	400m strike up to40mwidth.IndicatedResourcefromsurface to 80mdepth.	A zone of multiple veins (individual veins upto 5m width) withinwide zones ofmineralisation up to 40m width. Includes themain Old Pirate fold axes, the eastern limband the Heartland veins. With multiple tightlyspaced veins it is not possible to joinindividual intersections into distinct veinmodels and hence is modelled as a zone. A3g/t cut-off was used to reduce the influenceof the inter-burden between the high-gradeveins. It is anticipated upon visual exposurefrom mining that individual veins can beselectively mined thus minimising dilution andincreasing grade.Leapfrog generated wireframe constrained bygeology	1364gradepoints.Drillspacing~12.5m.	156,000	7.86	7.86	39,400	39,400
East Side Vein(1g/t cut-off)	300m by 1m to2m wide (plusOP South withup to 6m x 6mquartzpipe).Indicatedresource to 50mdepth.	Single high-grade vein 300m long. Samplingat surface shows short (~15m) very highgrade lengths (>50g/t) within lower gradebackground. Manual wireframe constrainedby geology. At the southern end the vein hasa bulge approximately 6m x 6m averaging70g/t which (due to target size) has not beenreliably intersected in drilling.	485gradepoints.Drillspacing~25m.	58,000	10.4	10.4	19,500	19,500
Golden Hind(1g/t cut-off)2	80mby10mzoneofveryhigh-gradedefinedatsurface to depthsof 60m.	Zone of multiple veins within shale. Allindicated resource.	399gradepoints.Drillspacing~12.5m.	113,000	12.89	16.35	46,100	59,100
Total Indicated Resource 3				889,000	8.19	8.93	234,100	255,300

1. Note – between 1g/t and 3g/t cut-off is a low-grade Indicated Resource in the Central Zone of 414,900 tonnes averaging 1.74g/t gold for 23,300 ounces of contained gold.

2. Note – at 10g/t cut-off Golden Hind Indicated Resource contains 34,000 tonnes averaging 45.58g/t for 49,200 ounces (uncut) or at an average grade of 34.03g/t (top cut-300g/t) for 36,700 ounces. 3. Totals may vary due to rounding.

The Inferred Resource category at Old Pirate also consists of multiple domains which are based on geological modelling. The Inferred Resource category is defined with the lowest level of confidence under JORC Code (2004) and whilst the various grade shells were domained based on geology there is insufficient sample spacing to apply confidence to achieve an Indicated Resource. As a result the Company considers the Inferred Resource as an overall resource which consists of a total of 663 sample points within an inverse distance weighted block model.

The Inferred Resource domains combined into the overall Inferred Resource include:

• 1. Western Limb below 150m depth utilising drill data only and focused on two drill sections of higher grade. Further work anticipates extending this along strike.
• 1. East Side vein below 50m depth utilising drill data only with high-grade at depth on two sections.
• 1. Down plunge extensions of Central Domain to the south utilising drill data only.
• 1. Old Glory veins utilising surface sampling and wide spaced drilling.
• 1. SE Veins (two veins to the south east of the Central Zone) defined with surface sampling only.
• 1. Heartland Deeps high-grade intersections at depth, north of the Central Zone and possibly downplunge of the Heartland veins within the Central Zone. Defined with drilling only but may link to the Central Zone Domain (Heartland veins) with further work.
• 1. Golden Hind low grade zone low grade (~1 to 5g/t) veins to the hanging wall of the main Golden Hind zone identified in drilling.
• 1. Additional veins a selection of several veins with short strike length (<20m) are defined by surface sampling and extended to 5 to 20 metres below surface.

The total Inferred Resource is noted in Table 3

	Table 3. Old Pirate Inferred Resource.
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Domain	Number ofsample pointsused to define	InferredResourceTonnes	Inferred Resourcegold grade (g/t)(top cut 300g/t)	Inferred Resource goldgrade (g/t)(uncut)	Total Ounces(top cut)	Total Ounces(uncut)
All InferredDomains	663	993,000	11.80	14.67	376,900	468,500

The Inferred Resource is to be utilised for a scoping study and broad economic analysis and will not be used for detailed mine planning until further work confirms continuity, tonnes and grade.

Comparison with 2012 Resource

In April 2012 the Company released a maiden resource for Old Pirate. This resource was based on wide spaced drill data and consisted of a small Indicated Resource and a larger Inferred Resource. The Inferred Resource was based on averaging gold grades within relatively small grade shells. With the increased geological confidence in the model the 2013 resource was able to upgrade a large portion of the Inferred Resource areas into the Indicated Resource category. It is important to note that the 2012 resource model used a 0.5g/t cut-off whereas the 2013 model uses 1g/t to 3g/t cut-offs. The conversion of high-grade Inferred Resources to Indicated Resources in 2012, along with the increased cut-off resulted in the overall increase in the Indicated Resource grade. A comparison between the 2012 and the 2013 resource estimations is provided in Table 4 below.

Table 4. Comparison between 2012 and 2013 resource estimations.

Category	2012Tonnes	2013Tonnes	TonnesIncrease/Decrease	2012grade(g/t)(top cut300g/t)	2013grade(g/t)(top cut300g/t)	GradeIncrease/Decrease	TotalOunces2012	TotalOunces2013	OuncesIncrease
Indicated (20120.5g/t shell, 20131 to 3g/t cut-off)	346,578	889,000	157%	5.25	8.19	56%	58,523	234,100	300%
Inferred (2012 0.5g/tshell, 2013 1g/t cutoff)	1,326,653	993,000	-25%	8.65	11.8	36%	368,925	376,900	2%
Total (2012 0.5g/tshell, 2013 1 to3g/tcut-off)	1,673,231	1,882,000	13%	7.95	10.1	27%	427,449	611,000	43%

Coarse Gold and the Effect of Top Cutting

Old Pirate is a high-grade gold system with abundant coarse gold. Coarse visible gold grains up to 5mm across are commonly sighted at surface and in drilling. In general, a larger sample size has a higher probability of capturing a coarse gold particle and hence results in a higher overall grade. The Company regularly has duplicate samples varying 10s to 100s of grams per tonne. The coarse gold effect means that gold liberates easily from simple gravity methods with up to 97% recovery recorded in laboratory metallurgical test results. However, as a result of the coarse gold, some of the statistical parameters are difficult to quantify with certainty and individual block grades may vary from the modelled grades. The aim of top cutting in resource estimation is to avoid smearing of individual high-grade numbers that are not part of the true population distribution. In coarse gold systems (in absence of mining history) the overall population needs to be reviewed for natural breaks, or population changes need to be taken into account. In addition, there is an argument for very light or even no topcutting to account for the under-sampling of the coarse gold.

The surface longitudinal sampling work conducted by ABM showed zones up to 60m long with average grades in excess of 100g/t and zones over 15 to 25m length to average in excess of 300g/t gold. Individual and selective grab samples (not used in resource work) have shown grades in excess of 2000g/t gold. It is evident that known high-grade veins can be intersected with multiple holes but only return low grade results with the effect of undercalling the grade of the vein. As a further example of the impact of sample size on grade, the Company's gravity recovery test work involved two 100kg samples thought to be identical and grading approximately 20g/t. However, one sample returned a recovered grade in excess of 40g/t and the other in excess of 140g/t (refer release 05/09/2012). This is further evidence that increasing sample size may have a positive effect on overall grade and the Company expects positive overall reconciliation of grades.

Given the rigorous nature of the sampling and long runs of high-grade samples it is deemed that high-grades are part of the overall population. Based on the assessment of the statistical population, where breaks in population were observed at 240g/t and 364g/t, it is deemed appropriate to report a 300g/t top cut (between population breaks) grade, as well as an uncut grade. The full effect of top-cutting at a variety of grades between 100g/t to 500g/t is noted in Appendix 1. The top-cutting will be further assessed once a mining history is established, which will initially be with the proposed bulk sample / trial mining.

Internally Modelled Resource Work

The Resource Estimation in this report was completed by a combination of ABM staff and included an adherence to a geological model compiled by Dr Rodney Boucher of Linex Pty Ltd. The Company completed a detailed internal report documenting all procedures and parameters used. The Company believes, given the complex geology and coarse gold distribution, that the Company geologists (including the Managing Director as Competent Person) are best qualified to estimate resources within the bounds of the JORC Code 2004/2012. In addition, the resource report was reviewed by directors of ABM as well as 2 separate independent external consultants.

Next Steps – Trial Mining and Bulk Sampling

ABM has applied for permits to conduct a 10,000 tonne bulk sample / trial mining operation at Old Pirate. Permits have been granted by the Central Land Council and by the Titles Division at the Department of Resources (Northern Territory). The Mine Management Plan has been submitted, revised and re-submitted, and is awaiting final confirmation. The purpose of the trial mine is to reconcile tonnes, grade and recovery and forms an essential part of feasibility assessment. The trial mining involves installing a small scale gravity gold recovery plant which can subsequently be upgraded into a full scale plant. Further information on the trial mining details including budget and schedule will be released shortly.

Further targeting

There are several possible extensions, which are NOT included in the 2013 resource estimations, to the Old Pirate trend that warrant further work and could add additional ounces to the overall system. These include:

• 1. Western Limb along strike to the north: Quartz veins have been exposed in two outcrops approximately 500m and 800m directly along strike from the northern extents of the Western Limb and have returned assay grades up to 34.7g/t gold in surface samples and 32.1g/t in scout drilling. These provide the potential to more than double the strike length of the existing 2013 resource.
• 1. Eastern Limb along strike to the north: Veins have been exposed approximately 700m along strike from the northern extents of the Eastern Limb (part of the Central Domain model) with surface grades up to 69.2g/t gold.
• 1. Western Limb at depth: deep drilling on some sections of the Western Limb returned wide high-grade zones which have been included in the inferred resource. However, the lateral (along-strike) extents are yet to be adequately tested and further drilling is required to extend the resource in those areas.
• 1. Down plunge of Old Pirate fold: Some Inferred Resources are included in a modelled down-plunge extent of the Old Pirate anticline fold nose to the south and remain open down plunge.
• 1. Further Golden Hind look-a-likes: The Golden Hind Deposit has a very small footprint but contains highgrade gold and a significant number of ounces. Golden Hind was only discovered in mid-2012. The Company is planning to conduct further detailed geochemistry along the overall 6 kilometre Old Pirate trend with the aim of targeting further Golden Hind look-a-like systems.

Figure 2. Domain map for resource modelling of the Old Pirate Deposit. Old Glory and Golden Hind Deposits located to the south and not shown.

Figure 3. Western Limb Block Model long-section. View east.

Figure 4. East Side vein domain block model long section. View west.

Figure 5. Central Domain, Heartland Deeps and down-plunge continuity block model long section. View west.

Figure 6. Golden Hind block model. View east.

Drilling Results Subsequent to Resource Model

ABM recently received drill-results that were targeting extensions to the Golden Hind system. These included two down plunge diamond holes where assay results returned up to 6g/t gold and RC holes with assays up to 31g/t gold. Overall these results do not have a material effect on the resource and analysis to place these results into geological context is part of the on-going work.

About ABM Resources

ABM is an exploration company developing several gold discoveries in the Central Desert region of the Northern Territory of Australia. The Company has a multi-tiered approach to exploration and development with a combination of high-grade potentially short-term production scenarios such as Old Pirate and the Golden Hind, large scale discoveries such as Buccaneer, and regional exploration discoveries such as the Kroda Gold Project. In addition, ABM is committed to regional exploration programs throughout its extensive holdings.

ABM is well capitalised to achieve its milestones in 2013 with $14.1M in cash (as of quarterly report dated 31st December 2012).

Figure 7 - ABM Project Location Map Northern Territory.

Signed

Darren Holden – Managing Director

Competent Persons Statement

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Darren Holden who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Holden is a full time employee of ABM Resources NL 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 2004 Edition of the "Australasian Code for Reporting Exploration Results, Mineral Resources and Ore Reserves". Mr Holden consents to the inclusion in the documents of the matters based on this information in the form and context in which it appears.

For Further Information Please Contact

Jutta Zimmermann	Darren Holden	Berdine Mastaglia
CFO / Company Secretary	Managing Director	Investor Relations Manager
+61 8 9423 9777	+61 8 9423 9777	+61 8 9423 9777

Appendix 1. Details of 2013 Resource Estimation Work.

Note on JORC Code 2012.

In December 2012 a new JORC Code was released. This code does not come into effect until November 2013, however, companies are asked to voluntarily comply to the new 2012 code as well as the current 2004 JORC Code. As a result, the table below is based as a check list from the JORC Code 2012.

Criteria	Explanation
Sampling and subsamplingTechniques	All ABM RC samples were taken using a 12.5:1 Sandvik static cone splitter mounted under a polyurethane cyclone. Sampleswere split into 3 aliquots, with one sent to the lab for assay, one stored and retained for QA/QC purposes, and one remainingat the drill site.
	Diamond drill samples were split in half either at the Company's Wilson's camp with a masonry saw, or shipped to TanamiGold's Central Tanami operation and split in half with an Almonte core saw.
	Trench sample sites were first exposed by using a backhoe to remove any surface soil or vegetation. The backhoe dug atrench up to 60cm deep. The veins were marked and mapped in 1m intervals, and measured for width with representativesamples taken from the vein. Veins less than 20cm are difficult to accurately measure width near surface due tointermingling with the oxide and soil profile. However, the Company is aware of several veins intersected in shallow drillingwhich project to surface but have not yet been exposed which may result in a wider surface zones than modelled. All trenchsamples were normalised to 1 metre width before applying to resource modelling.
Drilling Techniques	To date the Company has drilled 257 RC holes totalling 40,285m, and 16 diamond drill holes totalling 4,131m at the OldPirate and Golden Hind Deposits. RC Holes drilled in 2010 were completed by Gorey and Cole Drillers Pty Ltd of AliceSprings using a Schramm 685 and Atlas Copco RC rig. Both rigs had a depth capability of approximately 600m, using a1000psi, 1350cfm Sullair compressor and auxiliary booster. All holes drilled in 2011 and 2012 were drilled by TopDrill Pty.Ltd. of Kalgoorlie, using a Schramm 685 RC rig, with an approximate 600m depth capability, using a 1000psi, 1350cfmSullair compressor and auxiliary booster. All RC holes were 5 5/8" diameter.
	All ABM diamond drilling to date has been completed by Boart-Longyear. The 4 diamond drill holes completed in 2011 weredrilled using a dual-purpose KL-1500 diamond/RC drill rig with 6m barrel. The 8 diamond drill holes completed in 2012 weredrilled using a late-model, top drive IDR Diamond coring rig, mounted on a MAN 8x8 truck. To eliminate potential problemswith recovery, core runs were limited to 3m in length. Recovery near surface was increased by drilling HQ (hole diameter96mm, core diameter 63.5mm), with all remaining core drilled with NQ2 (hole diameter 75.7mm, core diameter50.6mm).Core was oriented at the drill by the driller using an Ace ori tool, with subsequent alignment and confirmation by thelogging geologist.
Drill samplerecovery	During 2011 and 2012 the Company regularly monitored and reviewed recovery of RC samples. Overall at Old Pirate a>90% recovery of sample is achieved.
Logging	Qualitative code logging for lithology, quartz content, ore minerals content and style, alteration styles, weathering, oxidation,and mineralogy was conducted on RC drilling in 1m intervals. Diamond drill hole logging captured the same data;additionally, structural measurements were taken on quartz veins, sedimentary structures, and brittle and ductile deformationstructures. Diamond drill hole logging was conducted over geologic intervals ranging from centimetres to several metres.Drill logging conducted by previous explorers has been validated by the Company and included.
Quality of assaydata and laboratorytests	Table A5 provides a summary of the QAQC results from the Old Pirate and Golden Hind deposits. The majority of the QAQCmeasures passed within 80-99% of two standard deviations and are satisfactory. Blanks, Lab mill flushes and Lab blanksperformed well within minimal contamination and the majority of the analyses falling at or below detection level of themethods, as required by the QAQC protocols. Lab pulp checks and field duplicates for both the trenching and drillingshowed a high level of variation attributable to the nugget effect of the Old Pirate prospect. The standards performedconsistently, with more variation than the blanks, although the standard GLG302-4 is inappropriate for the Old Pirate grades.
	The Company trialled various laboratory techniques for coarse gold. This included screen fires and re-assaying of samples.All samples from 2012 onwards that were >1g/t were re-assayed 5 times with an average being taken and used in resourceestimation. The Company recognises the inherent uncertainty in assaying samples containing coarse gold and is intendingto conduct further sample analysis and research into this. The Company intends to retain a Consultant who specialises incoarse gold systems to review and audit procedures and make further recommendation.
	The Company recognises the need for a higher grade set of standards for the Old Pirate deposit to match the high-gradenature of the deposit. In 2013 the Company will be implementing a new set of higher grade standards to reflect the deposit.The Company also recognises that more standards are required in the surface trenching, at least one in every 35 samples,and they need to be grade appropriate.

Criteria	Explanation
Verification ofsampling andassaying	After receiving initial drilling sampling data, ABM concluded that, because of coarse gold effect, single assays might not beproviding an accurate representation of grade in the system. In conjunction with ALS Minerals, ABM devised a methodwhereby all samples returning an initial assay above 1ppm Au would have 5 additional fire assays performed, with theresults averaged for an overall grade. The Company reviewed existing data and re-assayed all relevant past results usingthis method, obtaining a more accurate representation of grade within the system.
	Additionally, a selection of samples were submitted to both ALS Minerals and Intertek Laboratories. No substantial variationwas found in the results received from the two labs.
Location of data	All drill collars survey with differential GPS to sub 5cm accuracy.
points	All surface trench samples surveyed with differential GPS to sub 5cm accuracy.
	Down hole surveys completed with a combination of EZ-Trac single shot camera and keeper rate north finding gyro downhole surveying. Some magnetic camera shots showed variations beyond what was expected due to magnetic interference ofthe surrounding rocks.
Data spacing anddistribution	During the 2012 season, the Company ensured a 25m spaced (as minimum) RC drill coverage over the entire area of theIndicated resource. Surface trenching was only undertaken where quartz veining was discovered, with veins sampled in 1mintervals along strike.
Orientation of datain relation togeological structure	A 3D geological model was constructed based on detailed surface mapping and lithostratigraphic logging. Old Pirate hasstructural complexities and hence the orientation of data in relation to structure can never be accurately determined.However, the resource model only used domains that fitted the overall geological model.
Sample security	All samples were stored in secure locations at the Company's Wilson's camp, or Tanami Gold's Central Tanami Operationprior to being shipped via Toll IPEC to either ALS or Intertek's Alice Springs preparatory facilities. All sample bags weresealed with cable ties to ensure no tampering during shipment.
Database Integrity	ABM uses the Maxwell Data Schema (MDS) version 4.5.1. The interface to the MDS used is DataShed version 4.5 and SQL2008 R2 (the MDS is compatible with SQL 2008-2012 – most recent industry versions used). This interface integrates withLogChief and QAQCReporter 2.2, our primary choice of data capture and Assay quality control software.
	DataShed is a system that captures data and metadata from various sources, storing the information to preserve the value ofthe data and increasing the value through integration with GIS systems. Security is set through both SQL and the DataShedconfiguration software. ABM has one sole Database Administrator and an external contractor with expertise in programmingand SQL database administration. Access to the database by the geoscience staff is controlled through security groupswhere they can export and import data with the interface providing full audit trails. Assay data is provided in MaxGEO formatfrom the laboratories and imported by the Database Administrator. The database assay management system records allmetadata within the MDS and this interface provides full audit trails to meet industry best practice.
	Exploration field data is primarily captured via LogChief. Multiple data capture configurations are built for specific tasks suchas sample dispatch to gather data across many mining and exploration activities with the referential integrity essential forsynchronisation with the master database. This allows for improved accuracy of data capture and decreased datamanagement time. QAQCReporter monitors and reports on assay quality control, this management of assay QAQCincreases confidence in the data and provides control of the assay process and reduces overall business risk.
	The three ABM databases are backed up on a daily schedule with the current day's backup being copied across to thenightly server backup tapes. Standard practice is that there is always a current backup tape held off site and an end ofmonth tape kept permanently off site. Copies of the original laboratory files are kept on the server's windows directory andare available via a web service.
Site Visits	The Competent Person has made a total of 12 site visits in the past 3 years and is familiar with the geology andmineralisation of the region. The Competent Person has directly supervised drilling, and surface sampling as well as helpingto develop the overall database integrity.
GeologicalInterpretation	The resource model is based on a detailed interpretation conducted by Dr Rodney Boucher with a broad description given inthe body of this document.
Dimensions	The Old Pirate Trend Resource is a south-plunging anticline, and covers an area of approximately 2km in North-South strikelength, and its mineralised zone is approximately 600m wide. The Resource has been defined to a maximum depth of 350mbelow surface but is also open along strike in several directions. Indicated Resource Is defined to a maximum depth of150m.

Criteria	Explanation
Estimation andModellingtechniques	The vein model for Old Pirate was initially constructed using Leapfrog Mining software using Dr Boucher's geological modelas a guide. Drilling and surface trenching data were loaded into Leapfrog. Grade shells were generated at 0.5g/t and 1g/tcut-offs using a radial basis function with kriged search parameters. The grade shells were governed with a search basedentirely on the geological model.
	To avoid Leapfrog's discontinuities or unrealistic extensions of grade shells, some of the best defined and continuousmineralised veins were re-modelled manually using MicroMine software. Manual wireframes were constructed for the EastSide, Golden Hind, Old Glory and the Heartland Deeps vein at depth. Leapfrog shells are deemed more appropriate for thedensely drilled Central Old Pirate zone, as well as mineralised sections of shorter strike length between the East Zone andWest Limb.
	Block model and interpolation parameters are shown in Tables A2 and A3 below.
Cut-off parameters	The nominal cut-off grade of 1g/t (or 3g/.t in the case of the Central Zone) was determined as being an estimate of1. Economic cut off grades and2. Being the best representation of the presence of a high-grade mineralised vein.
Metallurgicalfactors	The Company has conducted metallurgical tests which have shown high recoveries (>90%) for gravity techniques and >99%for gravity + cyanide gold techniques.
EnvironmentalFactor	Phase 1 Environmental surveys complete. No major issues identified.
Ownership	Project located 100% on tenement EL28322. Mineral Lease applied for. License on Aboriginal Land governed by theAboriginal Land Rights Act (1976). Access agreements negotiated through the Central Land Council. The Companycontinues to receive support from the Traditional Owners and the Central Land Council.
Prospect ofdeveloping a mine	Metallurgical properties are excellent with tests showing >90% gold can be recovered with gravity. Mineralised zones extendto surface with low initial stripping required. The grade of the project is very high compared to most open pits in Australia andhence has a clear prospect of being developed into a mine. .
Bulk Density	A total of 13 density samples have been taken over the project with analysis using the weight in air and weight in water ofdry samples. The mineralised zones are principally quartz veins and density results show an even range between 2.31g/cm3and 2.78g/cm3 and an average of 2.64g/cm3 The known density of quartz of 2.65g/cm3 was taken as a reliablerepresentation of density.
Classification	As noted in the body of this document.
Audits or Reviews	Two independent consultants reviewed the resource reports and made recommendations for further work. All ABM directorsreviewed the resource reports.
Discussion ofrelative accuracy /confidence	Indicated Resource areas are based on detailed sampling and drilling as well as strong understanding of geologicalconstraints. Inferred Resource is based on extrapolation of geological modelling with coarse spaced sampling and hence alower level of confidence. The coarse gold effect entails that detailed sampling and drilling is required to assess the overallgrade. Inherent uncertainties exist with estimating total gold content and, based on work conducted by ABM drilling, ingeneral, under-calls the high-grade zones.
Moisture	The mineral resource estimate is based upon dry tonnages. Moisture content has not been included.

Table A1 – Drill data summary

OP Project (Old Pirate Trend)516,000mE – 517,500mE and 7,766,500mN – 7,769,250mN
Company	DH type	Prefix	Number ofholes	Metresdrilled	AverageDepth (m)
Pre-ABM	Costean	OPC	12	1,585	132
Pre-ABM	Vac	OPV	384	1,335	4
Pre-ABM	RAB	OPRB	86	4,087	48
Pre-ABM	RC	OPRC	72	4,400	61
Pre-ABM	RC/DD	OPRCE	2	514	257
Pre-ABM	DD	OPD	2	315	157
TOTAL				12,236
ABM	RC	OPRC	204	33,854	166
ABM	DD	OPDD	12	3,841	320
ABM	RC	GHRC	53	6431	121
ABM	DD	GHDD	4	290	72
TOTAL				44,416
GRANDTOTAL				56,652

Table A2 - Trench sampling and drilling weight summary for Old Pirate

Method	Approximateaverage sampleweight (includingduplicates)	Total number ofsamples inmineralised zones(>0.5g/t)	Approximate massof total samples	Mean(weighted tosample width)
Surface Sampling – OldPirate (OP)	7.24 kg	2,947	21,336.28 kg	22.20g/t
Surface Sampling –Golden Hind (GH)	4.92 kg	149	733.08 kg	87.42g/t
Surface Sampling – OldGlory (OG)	4.7 kg	259	1217.30 kg	8.53g/t
Drilling	1.85 kg	1152	2131.2 kg	9.89g/t

Table A3 – Block Model parameters (all mineralised grade shells populated with the minimum block size)

	Origin block centre		End block centre				Parent block size		Sub blocks
X	Y	Z	X	Y	Z	X	Y	Z	X	Y	Z
516200	7766600	100	517000	7768600	500	5	10	10	10	10	10
Origin block corner			End block corner	Minimum block size			Number of parent blocks
X	Y	Z	X	Y	Z	X	Y	Z	X	Y	Z
516197.5	7766595	95	517002.5	7768605	505	0.5	1	1	161	201	41

Table A4 – Interpolation parameters

	ellipsoid parameters		search anisotropy:		search parameters
Old Pirate domain	Run	min	max	sectors	azi	dip	plunge(S)	Axis1	Axis2	Axis3	radiusfactor	inversepower	Comment
Western Limb	1	3	2	8	165	82	20	20	60	0.25	1	3	Narrow search with trenchsamples and drill holes
Western Limb	2	3	1	4	165	82	20	25	20	15	2	3	Applied filter populating thetop 8m, include trenchdummy samples as zero butnot using trench samples
Western Limb	3	0	4	4	165	82	20	25	20	15	6	3	Populating remaining blockswith drill hole data only
East Side -subdomain 1	1	2	2	8	004	68	20	20	50	0.5	1	2	Narrow search with trenchsubsamples and drill holes, indomain north of 7767870mN
East Side -subdomain 2	1	2	2	8	004	75	20	20	50	0.5	1	2	Narrow search with trenchsamples and drill holes, insubdomain between7767750mN and 7767870mN
East Side -subdomain 3	1	3	2	8	004	59	20	20	50	0.5	1	2	Narrow search with trenchsamples and drill holes, insubdomain between7767710mN and 7767750mN
East Side -subdomain 4	1	3	2	8	004	20	20	20	50	0.5	1	2	Narrow search with trenchsamples and drill holes, insubdomain south of7767710mN
East Side – allsubdomains	2	3	1	4	004	65	20	25	20	15	2	2	Applied filter populating thetop 8m, include trenchdummy samples as zero butnot using trench samples
East Side – allsubdomains	3	0	4	4	004	65	20	25	20	15	4	2	populate remaining blockswith drill hole data & trenchsamples
Heartland Deeps	1	7	4	4	165	79	15	25	20	6	1	3	Drill hole data only
Heartland Deeps	2	4	4	4	165	79	15	25	20	6	2	3	Drill hole data only
Heartland Deeps	3	0	4	4	165	79	15	25	20	6	4	3	Drill hole data only
Golden Hind	1	7	4	4	160	80	0	20	20	8	1	3	Drill hole data and trenchsamples
Golden Hind	2	4	4	4	160	80	0	20	20	8	2	3	Drill hole data and trenchsamples
Golden Hind	3	0	4	4	160	80	0	20	20	8	4	3	Drill hole data and trenchsamples
Central Zone	1	3	2	8	172	85	20	20	50	0.5	1	2	Narrow search with drill holedata and trench samples
Central Zone	2	3	1	4	172	85	20	25	20	15	2	2	Applied filter populating thetop 8m, include trenchdummy samples as zero butnot using trench samples
Central Zone	3	0	4	4	172	85	20	25	20	15	4	2	Populate remaining blockswith drill hole data & trenchsamples

	ellipsoid parameters				search anisotropy:		search parameters
Old Pirate domain	Run	min	max	sectors	azi	dip	plunge(S)	Axis1	Axis2	Axis3	radiusfactor	inversepower	Comment
Old Glory	1	7	4	4	165	80	20	25	20	15	1	3	Drill hole and trench samples
Old Glory	2	4	4	4	165	80	20	25	20	15	2	3	Drill hole and trench samples
Old Glory	3	0	4	4	165	80	20	25	20	15	4	3	Populateremainingblockswith drill hole data & trenchsamples
Additional veins	1	7	4	4	165	80	20	25	20	15	1	3	Drill hole data only
Additional veins	2	4	4	4	165	80	20	25	20	15	2	3	Drill hole data only
Additional veins	3	0	4	4	165	80	20	25	20	15	4	3	Drill hole data only

Axis 1 is the axis along the plunge of ellipsoid; Axis 2 is the axis at 90º to axis 1 within the plane of the ellipsoid; Axis 3 is orthogonal to axis 1 and 2 (orthogonal to strike).

	Table A6 – Standards in QA/QC
--	-------------------------------	--

StandardID	#Assayed	Expected	DataMean	SD	Comments
G306-1	51	0.41	0.39	0.002	Negative bias, data mean 0.39, certified value 0.41
G397-2	88	4.49	4.2	1	Negative bias, data mean is 4.2ppm, certified value is4.49ppm.
G909-8	117	4.82	4.7	0.8	Negative bias, data mean is 4.7ppm, certified value is4.82ppm.
G996-7	91	5.99	5.76	0.98	Negative bias, data mean is 5.76, certified value is5.99ppm.
GLG302-3	126	0.03	0.1	0.58	Most data within 2SD, 21 outside 2SD.
GLG302-4	93	0.003	0.02	0.09	86 data outside 2SD, majority below detection.

Table A7 Risk Factors

All resource modelling has a number of risk factors and uncertainties based on grade distribution, statistical factors and geology. This table discusses the risk factors and produces considerations for further work.

Risk Factor	Discussion	Downside	Upside	Mitigation
Sampling andassaying techniques	ABM has trialled various techniques andall sampling in 2012 involved every assay>1g/t being re-assayed 5 times to developan average. Repeatability due to coarsegold effects produces uncertainty andgenerally under-calls gold content. Recentcommunication with external consultantrecommends not splitting pulps prior totransport as coarse gold particles may notbe duly represented.	Inaccurate assayingof samplescontaining coarsegold anduncertainty in themodel.	Coarse gold islikely to be undercalled insampling. Thiswas evident inthe metallurgicaltest work.	Consider leach-wellanalysis >1kg toextract all gold in unsplit pulped samples.
Overall Coarse Goldeffect	Coarse gold and its distribution in the veinresults in uncertainties applied to themodel. Resources are only classified asIndicated where geological control ANDsampling density is sufficient.	Uncertainty	Upon mining andbulk sampling ahigher grade islikely to beachieved.	Bulk sampling, andcheck tail sampling toassess recovery andoverall grade. Reviewback to block modelgrade forreconciliation.
Estimating vein width	Veins are known to pinch and swell from>6m width to several centimetres overshort distances. Some wide zones (such as6m x 6m blow out at OPS / East Side)average 70g/t (from 20+ samples) but thiszone, due to small foot print and targetsize, has not been intersected in drilling.Estimating vein width <20cm near surfaceis uncertain due to intermingling.However, on drilling mineralised zonesare generally wider than the veinsexposed at surface.	Where width of veinis over-estimatedthe model mayover-estimatetonnes.	Blow outs in veinsoccur resulting inhigher tonnes andmay not beintersected indrilling thusunder-callingoverall tonnes.	Careful miningprocesses ensuringthat the veins aremined to vein widthwith close geologicalmonitoring.
Statistical analysis	ABM uses relatively simple ID2 and ID3techniques. More complex multipleindicator kriging estimation techniquescan help the analysis in coarse goldsystems.	Kriging may producea different statisticalmodel and reviseestimates	Kriging mayproduce adifferentstatistical modeland reviseestimates.	Future resource workto consider othermethods of analysis.
Geological Risk	Surface geology and distribution of veinsis generally well understood due to goodoutcrop. However, the effect of faultingand the geological model may changewith further work.	Geologicaluncertainty mayimpact on resourceestimation withparticular effect atdepth.	Geologicaluncertainty mayimpact resourceestimation withparticular effectat depth.	On-going geologicalassessment and morediamond drilling.
Top Cutting	ABM has reported a variety of top-cutsfrom 100 to 500g/t to uncut. Fromstatistical analysis and review of thespatial distribution of high-grade results,reporting a 300g/t and an uncut grade isdeemed appropriate.	Top cutting at alower grade willreduce the resourceestimate. It ishowever noted thatthe sensitivity ofapplying anaggressive top cut at100g/t results in anoverall grade of>7.77g/t which isstill well within acomparableeconomic mininggrade.	Reconciliation ofthis coarse goldsystem (wherethe highestgrades are likelyunder-called atlab) may result inoverall gradebeing similar tothe uncut grades	Bulk sampling anddeveloping a mininghistory will allow forreconciliation and aback calculation ofthe top cut. Futureresource work toconsider top cuttingper domain.