PRODIGY GOLD NL — Capital/Financing Update 2017

Oct 15, 2017

ASX ANNOUNCEMENT / MEDIA RELEASE ASX:ABU

16 October 2017

ABM and Thunderbird Metals sign North-Arunta Exploration Agreement

Highlights:

• Exploration Agreement signed with Thunderbird Metals on ABM Resources highly prospective North Arunta Project in the Northern Territory
• Thunderbird to sole fund $6.5M over 4.5 years to ultimately earn a 70% interest in the project
• ABM to be free-carried through to completion of a Bankable Feasibility Study on any of the tenements comprising the North Arunta Project
• Thunderbird to issue 5% of issued capital to ABM at IPO or during any other listing process
• Joint Venture increases the experience and technical depth being applied to the ongoing exploration of ABM's extensive tenement holding
• The Agreement is consistent with ABM's strategy to focus its resources and activities on its gold projects in the Tanami Region

ABM Resources NL ("ABM" or "Company) is pleased to announce that it has entered into an exploration agreement ("the Agreement") with Thunderbird Metals Pty Ltd ("Thunderbird") for the North Arunta Project ("Project") in the Northern Territory. The Earn-in Joint Venture (JV) covers ABM's tenements at North Arunta which include the Barrow Creek and Lander River Projects.

ABM is continuing its strategy of focussing on its Tanami tenements and aggressively exploring the highest ranked targets. Projects outside of the Tanami Region are being partnered or divested.

Matt Briggs, managing director of ABM said, "This agreement aims to bring forward the potential for a major discovery at North Arunta, while ABM focusses on its Tanami projects. ABM will maintain exposure to the ongoing exploration and development of the North Arunta Project without additional financial commitment, given that it will be free-carried through to the completion of a bankable feasibility study on any of the tenements".

Kris Butera, chairman of Thunderbird Metals said, "We are extremely pleased to be working with ABM and earning-in to the North Arunta Project, gearing towards creating value out of what we believe is significant potential for multiple large gold systems. Utilising our collective targeting strength and discovery experience, Thunderbird aims to efficiently and effectively test the existing several multikilometre scale targets and to generate a long-term pipeline of new discoveries and assets."

Agreement Terms

Option Period – Exclusive option for a 60 day period to complete the following conditions precedent:

• ABM obtaining consent from the Central Land Council to assign the relevant deeds with the traditional owners
• Thunderbird completing due diligence to their satisfaction
• Thunderbird obtaining shareholder approval and raising a minimum of $0.5 Million for the project
• Negotiation of a joint venture agreement between the parties

The Agreement will come to an end if the conditions precedent are not satisfied or waived.

Earn-in Period – Thunderbird earning a 51% interest in the Project under the following conditions:

• Thunderbird spending $2.5 Million on in-ground expenditure on the Project over a period of 2.5 years
• A minimum annual spend of $0.5 Million to be spent in the first two years and the tenements must be kept in good standing
• Thunderbird may withdraw after spending $0.5 Million
• Should Thunderbird become a public listed company, ABM will be issued the equivalent to 5% of the total issued shares in the listed entity

Joint Venture Commencement – Thunderbird earning a 70% interest in the Project

• Thunderbird to earn an additional 19% in the Project by spending an additional $4 Million on in-ground expenditure within two years from commencement of the Joint Venture.
• ABM retains a 30% free-carried interest to completion of a bankable feasibility study
• On completion of a bankable feasibility study ABM can elect to
  • o convert its 30% share to a 1.5% net profit royalty and Thunderbird will make a one off payment of $2.5 Million in cash within 12 months of commencement of production, or
  • o co-fund all future exploration and development

About the North-Arunta Project Area

The Project covers ~4,500 square kilometres of exploration licences 100% owned by ABM and is also known as ABM's Barrow Creek Project. Barrow Creek consists of a 200 kilometre long gravity trend with associated metamorphosed sedimentary rocks, dolerite intrusions and large granite intrusions. The region has several known mineral occurrences including gold, copper, nickel, zinc, tin and tantalum.

The Kroda gold prospect, which is the most advanced prospect in the Project area, is located on EL29896 18 kilometres west of the Stuart Highway, 30 kilometres north of the town of Barrow Creek and 200 kilometres south of Tennant Creek (Figure 1). Kroda consists of 4 individual prospects (Kroda 1 to 4) with a combined anomalous strike length of 14 kilometres. Kroda is well serviced with infrastructure and is located on pastoral land close to the Stuart Highway, the Ghan Rail Line and the Northern Territory Gas Pipeline.

At Kroda 3, high-grade gold is hosted by breccia pipes that are near surface, steeply plunging and are confirmed by drilling to extend beyond 200 metres depth (Figure 3). Significant drill intercepts from Kroda 3 include 57m @ 3.8gt gold and 29m @ 6.4g/t gold (ASX 27 September 2011).

Figure 1. North Arunta Exploration Agreement tenements

About Thunderbird

Thunderbird is a privately owned discovery focused gold explorer owning projects in the Pine Creek Orogen area of the Northern Territory. Thunderbird has a highly skilled technical team with significant mineral exploration and geoscience experience, including Dr Oliver Kreuzer, Dr Andy Wilde and Dr Kris Butera. Thunderbird's team has developed an award-winning approach to project generation and drill targeting, and is adopting cutting-edge geophysical and prospectivity mapping technologies. The team members have deep knowledge of gold, uranium, base- and strategic-metals mineral systems worldwide.

Signed

Matt Briggs Managing Director

About ABM Resources

ABM is an established gold exploration company with a successful track record of discovery in one of Australia's premier gold mining districts. The Company owns gold resources and extensive prospective land holdings in the Central Desert Region of the Northern Territory. The Company leadership is implementing a strategy of aggressive cost management initiatives and is developing a disciplined, tightly focused exploration strategy. Activities are currently focused on the Company's under-explored 36,000 km2 Tanami Project area and includes:

• Drilling of advanced prospects on the Suplejack Project
• Drilling of early stage targets in the Bluebush Project area
• Systematic evaluation of high potential early stage targets
• Exploring opportunities for joint ventures of early stage targets

ABM Resource NL confirms that it is not aware of any new information or data that materially affects the information included in the market announcement and that all material assumptions and technical parameters underpinning the estimates included in referenced previous market announcements continue to apply and have not materially changed.

Project Name	Tenement Number	Tenement Holder	Status
Barrow Creek	EL26825	ABM	Granted
Barrow Creek	EL28515	ABM	Granted
Barrow Creek	EL28727	ABM	Granted
Barrow Creek	EL28748	ABM	Granted
Barrow Creek	EL29723	ABM	Granted
Barrow Creek	EL29724	ABM	Granted
Barrow Creek	EL29725	ABM	Granted
Barrow Creek	EL29896	ABM	Granted
Barrow Creek	EL30422	ABM	Application
Barrow Creek	EL30470	ABM	Granted
Barrow Creek	EL30507	ABM	Granted
Barrow Creek	EL30637	ABM	Granted
Lander River	EL23880	ABM	Granted
Lander River	EL23883	ABM	Granted
Lander River	EL23884	ABM	Granted
Lander River	EL23885	ABM	Granted
Lander River	EL23886	ABM	Granted
Lander River	EL25030	ABM	Vetoed
Lander River	EL25031	ABM	Granted
Lander River	EL25033	ABM	Granted
Lander River	EL25034	ABM	Granted
Lander River	EL25035	ABM	Granted
Lander River	EL25036	ABM	Vetoed
Lander River	EL25041	ABM	Granted
Lander River	EL25042	ABM	Granted
Lander River	EL25044	ABM	Granted
Lander River	EL29819	ABM	Vetoed
Lander River	EL29820	ABM	Vetoed
Lander River	EL8766	ABM	Granted

Appendix 1 - Agreement Tenement Schedule

Appendix 2 Previous Announcement Illustrations

Figure 2. Kroda 3 Prospect. ABM drill results and schematic contour of grade at 0.2g/t, 0.5g/t and 1.0g/t gold cutoff. Only ABM results labelled, refer to previous releases for historic results. (ASX 27 September 2011)

Figure 3. Kroda 3 Prospect. ABM drill results and schematic contour of grade at 0.2g/t, 0.5g/t and 1.0g/t gold cutoff. Only ABM results labelled, refer to previous releases for historic results. (ASX 27 September 2011)