PRODIGY GOLD NL — Capital/Financing Update 2014

Feb 24, 2014

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ASX ANNOUNCEMENT / MEDIA RELEASE

ASX:ABU

25 February 2014

Trial Mining Update: Geological and Grade Control Data Analysis

ABM Resources NL (“ABM” or “The Company”) has compiled and assessed grade control data, geology, and reconciled tonnes and head-grade from trial mining at the Old Pirate high-grade gold deposit located in the Northern Territory.

Analysis of Trial Mining

Table 1. Breakdown of head-grade and tonnes processed per zone.

Mining Zone	Average depth / Maximum depth of trial pit (metres)	Tonnes excavated & processed (tonnes)	Head-grade (feed-grade) (g/t Au)*	Feed Ounces	Ounces at 87% in-plant recovery
OP Central	1.5 / 2.5	3470	18.4	2047	1781
OP Eastside	1.5 / 2.5	507	13.9	227	197
OP South	4 / 5	1205	21.7	842	732
OP Western Limb	3 / 4	2431	9.2	720	626
Golden Hind	4 / 5	2231	25.1	1798	1564
Total	3 / 5	9844	17.8	5634	4900

*Head-grade based on feed-conveyor sampling. Totals may vary due to rounding. Refer to December 2013 quarterly report for sampling technique for head-grade / tails grade and resulting calculations of in-plant recovery.

General update

• Geological observations made during the trial are continuing to generate additional targets that will be followed up as the 2014 field season ramps up.

• Mill clean-out to recover gold in circuit was delayed due to very high rainfall during January and early February. However, contractors and staff have now been mobilised to site to commence this work.

Reconciliation between grade control data, geology and head-grade

For Stage 1 trial mining, the Company mined 13 pits to depths between 1.5 metres and 5 metres in five representative domains throughout the 1.8 kilometre long Old Pirate mineralised system (Figure 8). Approximately half of the total footprint of known mineralisation was selected for trial work. The five representative pit groupings (Table 1), and the results of the pit mapping, grade control sampling and head-grade to the pilot plant for the five areas are described below. The geology of the mineralised zones was generally as expected, but some local variations were encountered, and these are also detailed below.

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Old Pirate Central

A total of 8 individual pits were extracted throughout the Old Pirate Central zone (Figures 1, 2 & 3). The Central zone consists of the previously interpreted main Old Pirate fold nose, the Eastern Limb of the Old Pirate anticline, the Heartland veins and the SE veins.

Drilling through the Old Pirate Central zone has previously generated wide intersections of mineralisation made up of multiple high-grade veins separated by lower grade sediments. Previously the area was interpreted as a relatively simple south plunging fold with the Eastern and Western Limbs converging in this area. On excavation the local scale geology was revealed to have more complexity than this simple fold model. The Eastern Limb is observed as a series of interlinking quartz veins, with individual veins up to 3 metres wide within zones up to 10 metres wide, all hosted within sheared sandstone and shale. The shear zone is striking NNW-SSE, and whilst some shallow plunging folded veins were mapped, the previously interpreted main fold closure was not apparent. The Eastern Limb veins (generally steeply east-dipping) continue along strike to the south beyond what was previously interpreted and are now projected to link to the Old Pirate South area, providing additional near-surface targets.

Grade control sampling to mineralised zone boundaries (weighted to sample width) averaged 23.9g/t gold with a maximum assay of 340g/t gold. A total of 3,470 tonnes of material was extracted and processed as part of the trial mining and achieved an overall head-grade of 18.4g/t gold.

The resource model for the Old Pirate Central area estimated an overall grade of 7.6g/t gold (refer release 04/02/2013). The higher head-grade (compared to resource estimate grade) was achieved partly by selectively mining quartz veins and thus limiting dilution. The Old Pirate Central Zone overall exceeded expectations with higher grade and more total ounces than expected and new potential extensions remain to be tested.

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Figure 1. Old Pirate Central (South) test pit geology map with last bench grade control data. Refer Figure 3 for legend / grid.

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Figure 2 (left) Old Pirate Central North test pit geology map and last bench grade control data. Figure 3 (right). Old Pirate Central (all) with pit maps and underlain by drill hole information.

Old Pirate South

The Old Pirate South zone (Figure 4) represents a southerly continuation of the Eastside vein. A single pit approximately 60 metres long was extracted to an average depth of 4 metres and a maximum depth of 5 metres. Old Pirate South consists of a high-grade vein that is tightly folded at its southern end into a south-plunging anticline. The vein continues in the western wall of the pit and continues to the north-west. A second high-grade gold-bearing vein (not extracted but with coarse visible gold observed) occurs above the Old Pirate South fold nose and is observed in the southern pit

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wall and also continues to outcrop to the north-west. The fold nose is plunging south at approximately 18 degrees.

Grade control sampling to mineralised zone boundaries (87 samples) (weighted to sample width) averaged 69.4g/t gold with a maximum value of 1,490g/t gold. With dilution, a total of 1,205 tonnes of material at an average head-grade of 21.7g/t gold was extracted from Old Pirate South. The resource estimation work included Old Pirate South within the Eastside domain (resource estimation grade of 10.4g/t gold Eastside to OP South domain). Overall Old Pirate South exceeded expectation with more consistent high grades than anticipated. The shallow plunging fold nose generates additional near-surface drill targets and the link back to the Central area along a broad shear zone remains to be adequately evaluated.

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Figure 4. Old Pirate South test pit geology map with last bench grade control data. Refer Figure 3 for legend.

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Old Pirate Eastside

The Old Pirate Eastside vein consists of a single north-south striking vein with occasional local variations in width from 20 centimetres to 1 metre (Figure 5). A total of 4 pits were excavated to an average depth of 1.5 metres and in some areas an extra cut to 2.5 metres was taken. Grade control sampling to mineralised zone boundaries (32 samples) averaged 62.4g/t gold with a maximum value of 472g/t gold. A total of 507 tonnes of material was processed with an average head-grade of 13.9g/t (versus an overall resource estimation grade of 10.4g/t (refer release 04/02/2013)). The higher grade returned (compared to the resource estimation) was largely due to dilution management and the Eastside vein generally performed in line with expectations.

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Figure 5 Eastside vein test pit geology map and last bench grade control map. Refer Figure 3 for legend.

Old Pirate Western Limb

The Old Pirate Western Limb consists of a single vein hosted in a shale unit, striking NNW-SSE and steeply dipping to the west over a length of 600 metres. Approximately 300 metres of the Western Limb was taken in trial mining in a pit averaging 3 metres depth (Figure 6). The main vein width is generally 20 centimetres locally increasing to more than 1 metre.

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Previous drilling at the Western Limb revealed mineralised zones of 3 to 5 metres true width expanding to greater than 10 metres at depth, which is wider than the main vein observed at surface. At the base of the second bench (2.5 metres below surface) footwall splay quartz veins striking northsouth were observed and these may account for the wider mineralised zones observed in drilling, however, the overall impact of splay structures on total contained gold is yet to be established. Grade control sampling to mineralised zone boundaries (222 samples) from the Western Limb averaged 42.9g/t gold with a maximum assay of 613g/t gold. A total of 2,431 tonnes were processed from a mining width of between 0.6m and 1.0m (diluting the narrow vein but still limiting dilution to less than assumed in the resource estimation modelling) with a head-grade of 9.2g/t gold (versus a resource estimation grade of 7.12g/t gold). Overall the Western Limb performed in line with previous surface sampling and modelling for the main vein and the overall continuity and regularity of high grades was above expectations.

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Figure 6. Western Limb test pit geology map with final bench grade control data.

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Golden Hind

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Figure 7. Golden Hind test pit map and grade control on final bench. Refer Figure 3 for legend.

Golden Hind is located approximately 800 metres south of the main Old Pirate zone. Golden Hind is characterised by plentiful coarse and fine visible gold hosted in quartz veins and sheared sediments. On a regional scale Golden Hind is on the western limb of the regional Old Pirate anticline and overall dips to the west. However, several east-dipping gold-bearing veins / shears were also observed during mining.

Previous drilling had indicated high-grade mineralised widths to greater than 10 metres. For the first two benches the Company prioritised dilution management with extraction of the quartz veins. After the first two benches, the level of oxidation in the shear zone decreased and the shear zone itself

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became much more apparent. It was readily observed, during excavation on the third and fourth benches (>2.5 metres), that the sheared shale material either side of the quartz also contained plentiful visible gold, strongly supported by assay results, and the ability to mine to the mineralised contacts improved. At surface and as previously defined by drilling the high-grade gold-bearing material covers a strike length of >80 metres, however, on mining the mineralised strike length observed is 50 to 60 metres. The north-western end of the trial pit generally had low-grade shown in grade control sampling, however, ~10 metres beneath this north-western end is the Company’s highest grade intersection to date from drilling (15m averaging 118g/t gold (refer release 02/10/2012)). Several shallow south-dipping shears and numerous narrow, shallow dipping veins in the walls of the Golden Hind pit, as well as the steep veins and shears seen elsewhere were also observed. These observations, along with other geological features seen in the trial mining pit, indicate Golden Hind will continue to increase in strike as Stage 2 mining progresses and there is a possibility of multiple plunging shoots or stacked zones.

Grade control sampling to mineralised zone boundaries (234 samples) averaged 29.9g/t gold with a peak value of 518g/t gold. A total of 2,231 tonnes of material was processed from Golden Hind and achieved an average head-grade of 25.1g/t gold. This grade is higher than the resource estimation grade (16.35g/t gold (refer release 04/02/2013)). The tonnage extracted was overall less than anticipated due to both not recognising, through oxidation, the sheared material as being gold-bearing until part way through trial mining, and the slightly shorter length of the overall system compared to drilling. The presence of gold in shear zones splaying off to both the east and west, east-dipping structures (along with west-dipping structures) and potential repeats of mineralised zones at depth provide extensional targets at Golden Hind.

General comments

ABM has run preliminary model checks involving the variations to the observed geology and distribution of mineralisation in the top 3 to 5 metres. Overall the global resource estimation (1.88Mt averaging 10.1g/t gold (top cut)) issued in 2012 remains a valid global resource estimation, and the local variations are within the bounds expected for a structurally controlled quartz vein and coarse gold system. This check work and analysis is on-going and the Company may not issue an updated resource estimation until further work, including possible progression to Stage 2 mining is carried out.

As a key part of the trial mining test, the Company was able to minimise dilution and mine to geological boundaries and hence anticipates that it will be able to mine at higher grade and lower tonnes than indicated by the resource model. Due to 1 metre compositing and evenly spaced sampling, the existing resource model has up to 2 metres inherent dilution (e.g >900% on a 20cm vein) built in around narrow high-grade veins. A summary of grade control data and effective mine dilution calculation is shown in Appendix 1. In addition the Company is currently planning shallow follow up drilling on extensional and infill target areas to be carried out in conjunction with sterilisation drilling planned for Stage 2 infrastructure areas.

Mill Clean-Out Update

The area around the Old Pirate project received over 500mm of rain from mid-January to midFebruary which made access roads impassable. Conditions have improved considerably in recent days and as a result the Company has mobilised the contractors and staff to site to commence this work. Further updates will be made as information is compiled.

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Figure 8. Old Pirate Trend. Left – trial pit locations; Right – grade control data, surface sampling and previous drilling.

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 the Old Pirate High-Grade Gold Project, large scale discoveries such as Buccaneer, and regional exploration discoveries such as the Hyperion Gold Project.

In addition, ABM is committed to regional exploration programs throughout its extensive holdings including the alliance with Independence Group NL at the regional Lake Mackay Project, and the recently announced and proposed divestment of the North Arunta Projects to Clancy Exploration Ltd.

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Figure 9. ABM Project Location Map in Northern Territory.

Signed

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Darren Holden – Managing Director

Competent Persons Statement

The information in this announcement relating to previous drill results and mineral resource estimations (announced previously and before 1st December 2013) 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.

The information in this announcement relating to recent Exploration Results (grade control) is based on information reviewed and 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 2012 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.

The information that refers to Exploration Results & Mineral Resources in this announcement that was prepared and first disclosed under the JORC Code 2004 has not been updated since to comply with the JORC Code 2012 on the basis that the information has not materially changed since last reported.

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APPENDIX 1.

Grade Control Data summary.

Area	Samples collected from geologically defined mineralised zones (>0.5g/t)	Average weight	Average width of sample	Weighted (to width) average grade control assay (mineralised zones >0.5g/t)	Maximum assay from grade control data (Au g/t)	Head-grade (Au g/t)	Implied Mining Dilution Factor (head-grade versus grade controlgrade)
Golden Hind	234	2.33	0.73	29.86	518.00	25.1	19%
Old Pirate Central	131	2.53	0.57	23.92	340.00	18.4	30%
Old Pirate Eastside	32	3.03	0.49	62.37	472.00	13.9	349%
Old Pirate South	87	2.90	0.57	69.39	1490.00	21.7	220%
Old Pirate Western Limb	222	2.74	0.28	42.88	613.00	9.2	366%

Grade control data is a combination of channel sampling (costeans) and longitudinal sampling. Note: Old Pirate Central (Heartland area) included an assay of 1840g/t Au maximum which was a duplicate sample with the original grading 242g/t and the 1840g/t result was discarded in these calculations. Weighted average grade control assays are weighted to sample width so that, for example, a 0.2m wide vein with 100g/t result has the same weighting as a 1m wide vein with a 20g/t result. Head-grades are based on assaying from crushed material from the feed-conveyor. Refer to December 2013 Quarterly report issued 23 January, 2014 for JORC 2012 explanation of head-grade sampling techniques. JORC 2012 statement for grade control data noted below.

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JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Sampling	• Nature and quality of sampling (eg cut channels, random chips, or	• The project is a 9,844 tonne bulk sample spanning the Old Pirate/Golden
techniques	specific specialised industry standard measurement tools appropriate to	Hind gold deposits. Benches were exposed with an excavator. Channel /
	the minerals under investigation, such as down hole gamma sondes, or	Costean Samples were taken across the width of the bench at intervals
	handheld XRF instruments, etc). These examples should not be taken as	between 2.5 and 10m, depending on the complexity of local geology with
	limiting the broad meaning of sampling.	sampling to geological boundaries. Samples were taken of individual
	• Include reference to measures taken to ensure sample representivity and	lithological units, with width varying depending on lithology. Minimum
	the appropriate calibration of any measurement tools or systems used.	sample width was 10cm, maximum 5.9m. Samples were collected across
	• Aspects of the determination of mineralisation that are Material to the	the entire width of the lithological unit to ensure representativeness. All
	Public Report.	quartz veins were additionally sampled longitudinally at 2.5m intervals,
	• In cases where ‘industry standard’ work has been done this would be	with samples collected across the entire width and length of the interval.
	relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m	• Samples averaged 3.5kg, and were sent to ALS Global sampling
	samples from which 3 kg was pulverised to produce a 30 g charge for fire	preparation facility in Alice Springs where they were crushed and
	assay’). In other cases more explanation may be required, such as where	homogenised. A master pulp of approximately 100g was then sent to ALS
	there is coarse gold that has inherent sampling problems. Unusual	Global in Perth, where a 50g charge was fire assayed. One in twenty
	commodities or mineralisation types (eg submarine nodules) may warrant	samples with an assay over 1.0g/t was re-assayed with LeachWell.
	disclosure of detailed information.
Drilling	• Drill type (eg core, reverse circulation, open-hole hammer, rotary air	• No drilling was undertaken during the bulk sample; this section is not
techniques	blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or	relevant.
	standard tube, depth of diamond tails, face-sampling bit or other type,
	_whether core is oriented and ifso, by what method, etc). _
Drill sample	• Method of recording and assessing core and chip sample recoveries and	• No drilling was undertaken during the bulk sample; this section is not
recovery	results assessed.	relevant.
	• Measures taken to maximise sample recovery and ensure representative
	nature of the samples.
	• Whether a relationship exists between sample recovery and grade and
	whether sample bias may have occurred due to preferential loss/gain of
	fine/coarse material.
Logging	• Whether core and chip samples have been geologically and	• Exposed benches were mapped across the width of the pit, logged, and
	geotechnically logged to a level of detail to support appropriate Mineral	surveyed by geologists with differential GPS to cm-scale. Maps were
	Resource estimation, mining studies and metallurgical studies.	done across pits at intervals of between 2.5 and 10m, depending on the
	• Whether logging is qualitative or quantitative in nature. Core (or costean,	complexity of local geology. Width, rock unit, weathering, grain size,
	channel, etc) photography.	colour, alteration, and mineralogy were recorded.
	• The total length and percentage of the relevant intersections logged.	• All quartz veins were also mapped, sampled, and surveyed longitudinally
		using the same methods.

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Criteria	JORC Code explanation	Commentary
Sub-sampling	• If core, whether cut or sawn and whether quarter, half or all core taken.	• Field duplicates were taken on average every 20 samples. A blank or
techniques	• If non-core, whether riffled, tube sampled, rotary split, etc and whether	standard was inserted approximately every 25 samples. Blank material
and sample	sampled wet or dry.	was river sand sourced in Alice Springs with an average Au assay of less
preparation	• For all sample types, the nature, quality and appropriateness of the	than 0.01g/t. Fifteen certified standards acquired from GeoStats Pty Ltd.,
	sample preparation technique.	with different gold grade and lithology.
	• Quality control procedures adopted for all sub-sampling stages to	• Upon receipt by the lab samples were logged, weighed, and dried if wet.
	maximise representivity of samples.	Samples were then crushed to 2mm (70% pass), then split using a riffle
	• Measures taken to ensure that the sampling is representative of the in	splitter, with 250g crushed to 75 µm (85% pass). 50g charges were then
	situ material collected, including for instance results for field	fire assayed.
	duplicate/second-half sampling.	• Samples were collected across the entire width of the sample area, and
	• Whether sample sizes are appropriate to the grain size of the material	length in the case of longitudinal samples, to ensure representativeness.
	_being sampled. _
Quality of	• The nature, quality and appropriateness of the assaying and laboratory	• Fire assay with detection limit of 0.01g/t Au was used on all samples. 1 in
assay data	procedures used and whether the technique is considered partial or total.	20 samples over 1.00g/t was re-assayed using LeachWell. Samples
and laboratory	• For geophysical tools, spectrometers, handheld XRF instruments, etc, the	returning over 10.0g/t were re-assayed using ALS Fire Assay/AA25 ore-
tests	parameters used in determining the analysis including instrument make	grade method. Samples over 100g/t were re-assayed using AA25 over
	and model, reading times, calibrations factors applied and their	limit dilution method.
	derivation, etc.	• In addition to standards and blanks previously discussed, ALS conducted
	• Nature of quality control procedures adopted (eg standards, blanks,	internal lab checks using standards, blanks. Standards and blanks
	duplicates, external laboratory checks) and whether acceptable levels of	returned within acceptable limits, and field duplicates showed good
	accuracy (ie lack of bias) and precision have been established.	correlation.
		• LeachWell assay techniques were used in an effort to both quantify the
		nugget effect of the system, and as a check on Fire Assaying. On
		average data shows that LeachWell returns 121% of Fire Assay for
		_samples over 100g/t. _
Verification of	• The verification of significant intersections by either independent or	• Width of samples, as well as length of longitudinal samples were
sampling and	alternative company personnel.	recorded to cm-accuracy with a differential GPS. Samples data are
assaying	• The use of twinned holes.	entered into an excel spreadsheet, which is both reviewed by a project
	• Documentation of primary data, data entry procedures, data verification,	manager, and checked by an automated program before being imported
	data storage (physical and electronic) protocols.	into the database.
	• _Discuss any adjustment to assay data. _	• No adjustments or calibrations have been made to the assay data.
Location of	• Accuracy and quality of surveys used to locate drill holes (collar and	• Sample start and end points are recorded with a differential GPS with cm-
data points	down-hole surveys), trenches, mine workings and other locations used in	level accuracy for X, Y, and Z coordinates.
	Mineral Resource estimation.	• The grid system used is MGA_GDA94, Zone 52.
	• Specification of the grid system used.
	• Quality and adequacy of topographic control.

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Criteria	JORC Code explanation	Commentary
Data spacing	• Data spacing for reporting of Exploration Results.	• Spacing of the bulk sample data varied depending on the complexity of
and	• Whether the data spacing and distribution is sufficient to establish the	local geology. Longitudinal samples were taken every 2.5m along quartz
distribution	degree of geological and grade continuity appropriate for the Mineral	(ore) veins. Samples were taken across the width of exposed benches at
	Resource and Ore Reserve estimation procedure(s) and classifications	spacing of between 2.5 and 10m. Sample length varied based on
	applied.	lithology, with individual lithological units being sampled wherever
	• Whether sample compositing has been applied.	practicable, and varied between 10cm and 5.9m.
		• Sample spacing is sufficient to provide geologic and grade continuity.
		• No sample compositing has been applied.
Orientation of	• Whether the orientation of sampling achieves unbiased sampling of	• As all lithologies were sampled, as well as all exposed ore veins, bias
data in relation	possible structures and the extent to which this is known, considering the	should have been eliminated.
to geological	deposit type.	• No drilling was undertaken during the bulk sample, so orientation of
structure	• If the relationship between the drilling orientation and the orientation of	drilling relative to mineralised structures is not relevant.
	key mineralised structures is considered to have introduced a sampling
	bias, this should be assessed and reported if material.
Sample	• The measures taken to ensure sample security.	• Samples were transported from the field camp to the Granites mine by
security		ABM personnel, where they were loaded onto a Toll Express transport,
		and taken to a secure prep facility in Alice Springs using the laboratory’s
		_standard chainof custody procedure. _
Audits or	• The results of any audits or reviews of sampling techniques and data.	• ABM conducted an audit of ALS’s Perth lab facility and found everything
reviews		to be in order.
		• QAQC review of lab results showed no significant statistical outliers.

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Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral	• Type, reference name/number, location and ownership including	• The Old Pirate/Golden Hind gold deposit sits on EL28322 in the Northern
tenement and	agreements or material issues with third parties such as joint ventures,	Territory. The tenement is in good standing and no known impediments
land tenure	partnerships, overriding royalties, native title interests, historical sites,	exist. ABM has applied for a Mineral Lease covering the deposit.
status	wilderness or national park and environmental settings.	• The tenement is covered by an access agreement with the Central Land
	• The security of the tenure held at the time of reporting along with any	Council.
	_known impediments to obtaining a licence to operate inthe area. _
Exploration	• Acknowledgment and appraisal of exploration by other parties.	• North Flinders, Normandy NFM, and Newmont Asia Pacific conducted
done by other		exploration on the property from the early 1990s through 2006, including
parties		surface sampling, ground and airborne geophysics, as well as RAB, Air
		Core, Vacuum, RC, and Diamond drilling. Data collected in this period is
		reliable and consistent with ABM’s data, fits the overall geologic model,
		and is used with equal confidence.
Geology	• Deposit type, geological setting and style of mineralisation.	• The Old Pirate deposit consists of a series of gold-bearing quartz veins
		ranging from cm to metre-scale. It is a coarse gold system hosted within
		bedding-parallel quartz veins, and cross-cutting shear veins located in
		two regional-scale, south-plunging anticlines.
		• The Golden Hind deposit, previously thought to be similar to Old Pirate,
		has now been recognised as shear-hosted. Fine-grained gold occurs
		within a unit designated as “black shale”; an interbedded sequence of
		iron-rich sheared sand and siltstones with quartz stringers. Competent,
		coarse-grained sandstone beds constrain the limits of the shear zone,
		with shearing occurring in rheologically ‘flexible’ shales and thinner sand
		beds. Gold is found within the shale lenses, closely associated with thin
		(0.5 – 2cm) stringers of sheared, boudinaged quartz. Coarse gold is also
		evident within larger veins that are predominantly located in the hanging
		walls and foot walls of the system.
Drill hole	• A summary of all information material to the understanding of the	• No drilling was undertaken during the bulk sample, this section is not
Information	exploration results including a tabulation of the following information for	relevant.
	all Material drill holes:
	o easting and northing of the drill hole collar
	o elevation or RL (Reduced Level – elevation above sea level in metres)
	of the drill hole collar
	o dip and azimuth of the hole
	o down hole length and interception depth
	o hole length.
	• If the exclusion of this information is justified on the basis that the
	information is not Material and this exclusion does not detract from the

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Criteria	JORC Code explanation	Commentary
	understanding of the report, the Competent Person should clearly explain
	_why this is the case. _
Data	• In reporting Exploration Results, weighting averaging techniques,	• For reporting of exploration results, no averaging, truncation, or top-
aggregation	maximum and/or minimum grade truncations (eg cutting of high grades)	cutting is used.
methods	and cut-off grades are usually Material and should be stated.	• LeachWell assaying has a maximum detection limit of 300g/t. Assays
	• Where aggregate intercepts incorporate short lengths of high grade	above this limit are reported as >300g/t.
	results and longer lengths of low grade results, the procedure used for
	such aggregation should be stated and some typical examples of such
	aggregations should be shown in detail.
	• The assumptions used for any reporting of metal equivalent values
	_should be clearly stated. _
Relationship	• These relationships are particularly important in the reporting of	• Samples were taken of horizontal exposed faces of veins which were
between	Exploration Results.	typically steeply-dipping (between 70 and 90 degrees). Width of samples
mineralisation	• If the geometry of the mineralisation with respect to the drill hole angle is	are considered to be close to the true width of mineralisation in these
widths and	known, its nature should be reported.	cases.
intercept	• If it is not known and only the down hole lengths are reported, there	• In the Old Pirate South pit, veins dipped at approximately 20 degrees to
lengths	should be a clear statement to this effect (eg ‘down hole length, true	the south in the nose of the anticline. Samples were again taken across
	_width not known’). _	the horizontally exposed face of the vein.
Diagrams	• Appropriate maps and sections (with scales) and tabulations of intercepts	• Maps and sections are included with release of exploration results where
	should be included for any significant discovery being reported These	appropriate.
	should include, but not be limited to a plan view of drill hole collar
	_locations and appropriate sectional views. _
Balanced	• Where comprehensive reporting of all Exploration Results is not	• Exploration results are released comprehensively whenever possible.
reporting	practicable, representative reporting of both low and high grades and/or
	widths should be practiced to avoid misleading reporting of Exploration
	_Results. _
Other	• Other exploration data, if meaningful and material, should be reported	• All substantive exploration data is released when certified complete.
substantive	including (but not limited to): geological observations; geophysical survey
exploration	results; geochemical survey results; bulk samples – size and method of
data	treatment; metallurgical test results; bulk density, groundwater,
	geotechnical and rock characteristics; potential deleterious or
	_contaminating substances. _
Further work	• The nature and scale of planned further work (eg tests for lateral	• Extensional targets remain at the Old Pirate and Golden Hind deposits
	extensions or depth extensions or large-scale step-out drilling).	and will be followed up with drilling and trenching. The bulk sample has
	• Diagrams clearly highlighting the areas of possible extensions, including	shown there is substantial gold contained within the system; a Mineral
	the main geological interpretations and future drilling areas, provided this	Lease application has been made, and plans for future mining are
	information is not commercially sensitive.	progressing.

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APPENDIX 2. Old Pirate Resource Estimation

Old Pirate Trend Overall High-Grade Mineral Resource Estimation February 2013

Category	Tonnes	Gold Grade (g/t) (300g/t top-cut)	Gold Grade (g/t) (uncut)	Ounces Gold (300g/t top-cut)	Ounces Gold (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

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).

For further information refer to ASX release dated 04/02/2013.

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