PRODIGY GOLD NL — Capital/Financing Update 2017

Jun 27, 2017

ASX ANNOUNCEMENT / MEDIA RELEASE ASX:ABU

28 June 2017

Commencement of Suplejack Reconnaissance Aircore Drilling

HIGHLIGHTS

• o Commencement of reconnaissance drilling in the southern Suplejack area
• o 6 target areas being tested with aircore/RAB drilling
• o 164 holes are planned

ABM Resources (ABM) is pleased to advise that aircore drilling has commenced on the company's 100% owned Suplejack Project in the Tanami Region of the Northern Territory.

ABM is focussed on exploration in the Tanami. This is a prospective terrain that has had limited previous work completed. The company is systematically working through its tenement holding pursuing the highest quality opportunities. RC drilling by ABM over the last twelve months has successfully intersected mineralisation under existing RAB anomalies. This targeted drilling has seen a 53% increase in Resources on the Suplejack Project (ASX 20 February 2017).

Exploration activities are now shifting towards the large areas that have no prior bedrock testing. The company is prioritising areas that contain large-scale anomalies or highly ranked conceptual targets and will be testing these with RAB or aircore drilling. Existing bedrock anomalies will be opportunistically tested where they have scale potential.

Aircore drilling has commenced at Suplejack testing 6 target areas. Once final EPA approvals are received for Capstan within the Bluebush Project, the rig will be moved to that area. The drilling of both programs is expected to be completed during the third quarter of 2017.

Suplejack

ABM's management and geologists have been working through the company's tenement portfolio and prioritising work programs. This has included capturing and validating large volumes of data previously missing from the company's datasets. The limited work previously completed in the area has already lead to the discovery of the Crusade, Tregony, and Groundrush deposits. ABM has more recently been successfully growing its Resources at Suplejack including Hyperion, Tethys and Seuss.

The goal of current and future exploration in the Suplejack area is to demonstrate that there are multiple structures within a mineralised system that can individually, or collectively, support a standalone mining operation.

Figure 1: South Suplejack simplified geology plan showing arsenic anomalism and 2017 target areas

Photo: Aircore drilling commencing on the Suplejack Project

Seuss North (37 holes)

RC drilling in April 2017 confirmed continuity of mineralisation over 320 metres at Seuss. The northern extension of the Seuss Fault appeared to be offset by the Tethys Structure. A historic RAB hole 460 metres to the north of the last RC program has an intersection of 3 metres at 0.55g/t gold immediately along strike of the Seuss Fault. Five lines of drilling (Figure 2) are planned, testing for the strike continuation of the Seuss Fault. If successful this program would increase the drill defined strike length to 1.2 kilometres.

Seuss South (43 holes)

The southern line of drilling in the last RC program into the Seuss Fault returned an intersection of 19 metres at 0.6g/t gold. The structure remains open to the south. Soil arsenic anomalism extends at least 800 metres to the south of this line of drilling. Soil arsenic anomalies are often an indication of the targeted mineralisation being present. Two lines of drilling (Figure 2) are planned to test the direct strike extension to increase the drill defined strike length by an additional 320 metres.

The structural corridor containing Seuss continues for 1.5km to the south. This area has previously been partially tested by 2 lines of broad spaced RAB drilling. Arsenic anomalism of 105ppm gold in RAB and soils over 50ppm gold suggest the system could continue to the south under transported cover. Three lines of drilling (Figure 2) are planned to test this area targeting east-west breaks in the highly magnetic dolerite similar to Hyperion and Seuss.

Suplejack EW (19 holes)

This target is a previously untested analogue of the east-west striking Hyperion-Tethys Structure. The target has a similar magnetic signature within the same rock type as the projects to the North. Two lines of drilling (Figure 2) are planned to test this target under shallow sand cover where surface samples are interpreted to have been ineffective.

Figure 3: Pandora and Brokenwood RTP 1VD magnetic data and simplified geology plan showing gold anomalism and planned drilling

Pandora (6 holes)

Initial RC drilling of Pandora intersected 9 metres at 6.3g/t gold from 57 metres (ASX 27 July 2016). Previous drilling along strike has tested the structure within a less magnetic rock. The less magnetic rocks at Hyperion are generally poorly mineralised. A single line of drilling (Figure 3) is planned to confirm the interpreted NNW strike of the structure and additionally intersect the structure at an eastwest magnetic break within the more magnetic part of the dolerite.

Brokenwood (16 holes)

Initial RC drilling of Brokenwood intersected 3 metres at 9.3g/t gold from 69 metres (ASX 27 July 2016). Similar to Pandora, previous drilling along strike intersected anomalous results however these tested the structure within the less magnetic rock. Two lines of drilling (Figure 3) are planned to test the structure over 500 metres of strike length.

Dry River (43 holes)

The planned reconnaissance program will test the intersection of faults with the thickest and most magnetic dolerite in the project area. At Dry River the dolerite extends for 5.8km on ABM's tenement with no previous bedrock testing. Six lines of drilling (Figure 4) are planned testing the intersection of the dolerite with cross cutting structures. The proposed drilling will test at least 6 targets within the Dry River prospect.

Figure 4: Dry River RTP 1VD magnetic data and simplified geology plan showing planned drilling

Figure 5. ABM Project Location Map

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
• Systematic evaluation of high potential early stage targets
• Assessment of existing resources and
• Exploring opportunities for joint ventures and divestment of early stage targets

Competent Person's Statement

The information in this announcement relating to exploration targets and exploration results are based on information reviewed and checked by Mr Matt Briggs who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Briggs 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 Briggs consents to the inclusion in the documents of the matters based on this information in the form and context in which it appears.

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.