PRODIGY GOLD NL — Capital/Financing Update 2017

Feb 19, 2017

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ASX ANNOUNCEMENT / MEDIA RELEASE

ASX:ABU

20 February 2017

SUPLEJACK: 53% INCREASE IN INDICATED AND INFERRED RESOURCES TO 309,900 OZ OF GOLD

ABM Resources NL (“ABM” or the “Company”) is pleased to announce an increased Mineral Resource estimate for the Suplejack Project

Highlights

• Suplejack Mineral Resource increases to 309,900 ounces, representing a 53% increase in ounces of gold

• JORC 2012 Code compliant Mineral Resource of 4.51 million tonnes at 2.1 g/t Au for 309,900 ounces of gold above a 0.8 g/t cut-off and within 180 metres of surface

• First declaration of Indicated Resource at Suplejack of 0.93 million tonnes at 2.34 g/t Au for 70,200 ounces of gold

• First Resources declared on the recently discovered Seuss Fault

• Resource now based 100% on reverse circulation and diamond drilling

• Grade estimation generated by independent specialists, Optiro Pty Ltd, under ABM’s guidance

• Drilling to recommence at Seuss as soon as the wet weather breaks

Managing Director Matt Briggs said “A high quality Resource estimate gives ABM confidence in the continued growth at Suplejack towards the company’s target for the project to be a standalone operation. I am excited to get the rigs back out to Seuss and the surrounding targets to continue growing the Resources at Suplejack. RC drilling will recommence at Suplejack as soon as the wet season breaks. Initial drilling will test strike extensions of Seuss and structures parallel to Hyperion-Tethys.”

Background

The Hyperion-Tethys Prospect is situated within the emerging camp-scale Suplejack Project on exploration license EL9250 (Figure 1). The area has historically received sporadic exploration with many prospective targets yet to be tested with bedrock drilling. Shallow drilling often ended in the depleted oxide zone testing the area ineffectively. Recent RC and diamond drilling in 2016 has delineated 4 shoots on the Hyperion-Tethys Structure over its 1.3km length and defined the first Resources at Seuss. As part of its focused exploration strategy ABM is growing Resources at Suplejack and progressing the discovery of new standalone projects.

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Resource update

The 2017 Resource declaration totals 4.51 million tonnes at 2.14 g/t for 309,900 ounces of gold. Resources are quoted above a 0.8g/t Au cut-off and above the 230mRL (160-180m vertically below surface) to limit the inventory reported to align with the future prospects of eventual economic open pit extraction.

Drilling completed during late 2016 led to the declaration of the first Resources at Seuss, Resource growth at Hyperion-Tethys and an updated geological interpretation on Hyperion South. Suplejack now has its first Indicated Resource of 0.93 million tonnes at 2.34 g/t for 70,200 ounces of gold. The statement also includes the first Resources declared on the recent Seuss discovery of 0.63 million tonnes at 2.85 g/t for 57,300 ounces of gold. Resource details of each structure and their classification are outlined in Table 1.

Suplejack Project - Mineral Resource Estimate - February 2017

Area	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces
	Million t	Aug/t	Oz	Million t	Aug/t	Oz	Million t	Aug/t	Oz
	Indicated			Inferred				Total
			Oxide
Hyperion-Tethys	0.04	1.70	2,300	0.21	3.01	20,500	0.25	2.79	22,800
Seuss				0.17	2.48	13,600	0.17	2.48	13,600
Hyperion South				0.03	1.19	1,300	0.03	1.19	1,300
Total	0.04	1.7	2,300	0.42	2.65	35,400	0.46	2.56	37,700
			Transitional
Hyperion-Tethys	0.30	1.69	16,400	0.78	2.16	54,200	1.08	2.03	70,600
Seuss				0.14	2.78	12,800	0.14	2.78	12,800
Hyperion South				0.09	1.31	3,800	0.09	1.31	3,800
Total	0.30	1.69	16,400	1.00	2.17	70,800	1.32	2.06	87,200
			Fresh
Hyperion-Tethys	0.59	2.72	51,600	1.59	1.69	86,100	2.18	1.97	137,600
Seuss				0.31	3.07	30,900	0.31	3.07	30,900
Hyperion South				0.25	2.07	16,400	0.25	2.07	16,400
Total	0.59	2.72	51,600	2.15	1.93	133,400	2.74	2.10	184,900
			Deposit Total
Hyperion-Tethys	0.93	2.34	70,200	2.58	1.94	160,800	3.51	2.04	231,000
Seuss				0.63	2.85	57,300	0.63	2.85	57,300
Hyperion South				0.37	1.80	21,500	0.37	1.80	21,500
Total	0.93	2.34	70,200	3.58	2.08	239,600	4.51	2.14	309,900

Table 1 – Suplejack Project Area reported above 0.8g/t cut-off and above the 230mRL. Resources may not sum to equal totals due to rounding

Data validation, geological interpretation and modelling were completed by ABM geologists. To ensure the highest standard of grade estimation, industry leading experts at Optiro Pty Ltd were commissioned to generate the grade estimate and Resource tabulation.

Resources added during the period exceed the difference between the 2017 and 2012 Resource models. The previous Resource declared in 2012 (ASX 12 April 2012) was interpreted using Leapfrog generated grade shells. The volumes predicted, in particular those based on single isolated drill holes at Hyperion and Hyperion South, were not supported by the drilling completed by ABM in 2016. The 2017 model honours the shoot controlled nature of mineralisation, the thicknesses intersected in drilling, and forms a robust platform to grow the deposit in the future.

Seuss is open in all directions (Figure 6b). A historic RAB hole drilled 600 metres to the north of the Seuss Resource intersected 3 metres at 0.55g/t gold from 24 metres. This is now interpreted to be the along

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strike continuation of the Seuss structure, providing encouragement that the structure continues to the North. Future drilling will confirm if this is Seuss or a structure analogous to Hyperion-Tethys.

Hyperion-Tethys is open along strike and at depth, although the structure is trending into areas of basalt cover. These extensions are a lower priority while ABM has shallower targets to test, such as those illustrated in Figures 1 and 2.

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Figure 1 – Southern Suplejack Project Area and structures being targeted in planned 2017 drilling

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Figure 2 – Hyperion-Tethys Prospect collar plan

Geology

Gold mineralisation at Suplejack has geological similarities to the nearby Groundrush Gold Deposit, which is located 19 kilometres to the south west of the Hyperion-Tethys Prospect. The mineralisation is principally hosted in structurally controlled quartz-carbonate-sulphide veins in shear zones hosted within dolerites and occasionally intruded by granitic dykes.

The mineralisation at the Hyperion and Tethys prospects and Hyperion South is associated with a structural break between regional North-South trending thrust faults. At the Hyperion Prospect, this is a shear zone hosted in differentiated dolerite, typically intruded by granitic dykes. These granitic intrusions are absent at Tethys. The shear zone generally trends at approximately 106 degrees (Figure 2) and dips towards the south at 60-80 degrees (Figure 3). The structure is typically between 4 to 13 metres thick with an average of approximately 6 metres true width.

Drilling has defined the Hyperion-Tethys mineralisation over a strike length of 1,300 metres. Mineralisation extends from surface to a depth of at least 250 metres below surface. In some areas mineralisation is leached in the upper parts of the system with mineralisation tenor increasing from 20 metres below surface.

Mineralisation is characterised by a visible shear texture, quartz veining, and pyrite. The shear is recognized by an increase of quartz veining and the intrusion of one or two parallel felsic dykes. Other identifiers are strong structural deformation in diamond core, and visible fabric development in RC chips, as well as typically elevated arsenic readings from handheld XRF data.

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Figure 3 – Hyperion Cross Section 613080 metres East
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Figure 4 -Tethys Cross Section 613430 metres East

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Observations from diamond core are correlated with RC logs to create a structural framework. Fault zones are modelled when they are continuous from hole to hole and section to section. This results in a consistent interpretation of the Hyperion-Tethys Fault, hangingwall structures, and less extensive footwall structures.

A similar, approximately parallel structure runs through the Hyperion South prospect, 300 metres to the South. Fine grained sediments are also encountered in addition to dolerites. The presence of sediments alternated with differentiated dolerite at the Hyperion South prospect results in a shorter strike extent of mineralisation at Hyperion South, and an en echelon style of vertically stacked zones of mineralisation (Figure 5).

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Figure 5 – Hyperion South: Vertically stacked mineralisation on section 613700 metres east

The Seuss structure is silica-sericite-pyrite altered dolerite with quartz-carbonate-pyrite veining and sulphide laminations. The structure strikes North-South and dips 65 degrees to the East. The mineralisation is typically 6-13 metres thick with an average of approximately 9 metres true width. Mineralisation is consistently identified in diamond drilling and extrapolated through ABM’s RC drilling where possible based on similar logged features.

Drilling

Drilling considered for the resource estimation work consists of a number of types and phases including

• RC and diamond drilling completed by Newmont up to 2006,

• RC and diamond drilling undertaken by ABM in 2010, 2011 and 2016, and

• Aircore drilling undertaken by ABM in 2015.

All RC drilling by ABM in 2010, 2011 and 2016 was 5 5/8” diameter. The 2016 diamond drilling was completed with 5 5/8” RC precollars with face sampling bits then extended with NQ3 diamond core. Core is oriented by Reflex Ace orientation tool.

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All ABM drill holes were surveyed every 30m with a Reflex EZ-Trac Single Shot Surveying camera with the exception of three holes at Hyperion South, where downhole surveying equipment was faulty.

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6a) 6b)
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Figure 6 – Seuss Breccia: a) Cross section 7836460 metres North and b) Longitudinal projection

Aircore and historic RAB drilling were used to guide the trend of mineralisation but did not directly influence volumes or grades estimated. Aircore and RAB drilling result in lower quality samples suitable for reconnaissance exploration and industry practice is to exclude these from grade estimation for Resource declaration when possible. Testing of the Resource model to the inclusion and exclusion of aircore drilling resulted in an immaterial change in the inventory estimated.

Sampling and drilling techniques

All RC samples were taken using a 12.5:1 Sandvik static cone splitter mounted under a rubber cyclone. Samples were split into 3 aliquots in 2010 and 2011, with one sample sent to the lab for assay, one stored and retained for QA/QC purposes, and one remaining at the drill site. The 2016 RC samples were split into two aliquots; one sent to the lab for assay and one remaining at the drill site. Sample size was monitored at the drill site by the responsible geologist to ensure adequate recovery.

Upon completion of orientating and geological logging, diamond core was cut lengthways, producing a nominal 2kg sample (minimum 0.3 metres, maximum 1.1 metres, generally 1 metre), with the remaining half core retained on site.

Assaying

All RC drill samples have been analysed for gold by ALS. All diamond core and pre-collar samples have been analysed for gold by Bureau Veritas. For low detection, ABM use a lead collection fire assay, read by ICP-AES, using a 40g sample charge (Bureau Veritas) or a 50g sample charge (ALS) with a lower detection limit of 0.001ppm Au and an upper limit of 1,000ppm Au. ABM routinely submits field duplicates,

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standards and blanks and additionally ALS and Bureau Veritas conducted internal lab checks using standards, blanks. All standards and blanks returned within acceptable limits, and field duplicates showed good correlation.

Estimation

Drilling data available as at 31 December 2016 was considered for Resource estimation. Statistical and geostatistical analysis was carried out by Optiro on the drill database validated by ABM. Only RC and diamond drilling was used in the estimation. Variography was completed on 1 m downhole composites to model the spatial continuity of the grades within mineralised domains. Estimation of gold was completed using ordinary kriging (OK) into 10 mN by 10mE by 5 mRL parent blocks. Top cuts of between 4 and 20 g/t gold were applied before estimation, based on a domain by domain evaluation. Up to three search passes were utilised; the first and second passes were set to the range of the domain variogram and used a minimum of 8 and 4 samples respectively. The final search pass was extended to five times that of the initial search in order to estimate all blocks. By volume, a total of 76% of the resource was estimated in the first and second search passes.

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Figure 7 – Long section illustrating the areas of Indicated and Inferred Resource and drill traces at Hyperion. All other areas reported are classified as Inferred Resource

Classification

The Mineral Resource was classified in accordance with JORC 2012, based on the confidence in geological continuity, drill hole spacing and geostatistical measures. The Resource classification was proposed by Optiro and reviewed by ABM geologists. Indicated Resources are classified where the maximum drill hole spacing is less than 50 m, combined with demonstrated continuity of thickness and gold grade within adjacent drill holes. Due to the consistency of the structure, alteration and veining throughout the deposit, all other mineralised areas drilled to a current spacing of 100 m or less have been classified as an Inferred Resource. This includes extrapolation to a maximum of half the section spacing beyond current drilling. (Figure 7). No Measured Resources have currently been defined.

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Mining method and cut-off grades

ABM believes the use of 0.8g/t gold as a reporting cut-off is appropriate for deposits which could potentially be eventually extracted through selective open pit mining. This reflects the current spot price of A$1600/ounce and potential future increases consistent with industry reporting practices. Resources have been quoted to a maximum depth of 180 metres below surface, the maximum likely depth of an open pit on this style of deposit. As the project is at an early stage no open pit optimisation or economic evaluation studies have been completed.

Comparison with the previous Resource estimate

ABM’s previous ASX Release related to the Suplejack Resource announced on 12 April 2012. The following tabulation represents key changes in the methods or parameters employed in the creation of the updated Resource model. The 2012 Resource was interpreted using Leapfrog generated grade shells. The volumes predicted, in particular those based on single isolated drill holes at Hyperion and Hyperion South, were not supported by the drilling completed by ABM in 2016.

Area	2012 Resource	2017 Resource
Drilling methods	Aircore, RC and diamond drilling used	Exclusively RC and diamond drilling
Geological domaining	Leapfrog grade shells visually compared to geological data	Sectional interpretation and wireframing based on intervals selected considering structural textures, veining, alteration, and gold and arsenic assay values
Composite top cuts	50g/t	Between 4 g/t and 20 g/t Au (based on domain)
Minimum samples required for estimation	2 samples	8 samples
Estimation Method	Inverse distance squared	Ordinary kriging
Specific Gravity (fresh)	2.55-2.65	2.87
Constraint applied to reflect potential eventual mining method	Cut-off grade of 0.8 g/t	Cut-off grade of 0.8 g/t and reported above the 230mRL

Table 2 – Differences between the 2012 and 2017 Resource Reports

Details of the changes between the 2012 and 2017 model are outlined in Appendix 2.

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Matt Briggs Managing Director

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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 new 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 km[2] Tanami Project area and includes:

• Drilling of advanced prospects in 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 Persons Statement

The information in this announcement and Appendix that relate to data and geological modelling included in Mineral Resource estimates is based on information reviewed by Mr Alwin van Roij who is a Member of The Australasian Institute of Mining and Metallurgy. Mr van Roij 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 they are 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 van Roij 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 and Appendix that relates to grade estimation and Mineral Resource estimates is based on information reviewed by Mr Ian Glacken, who is a Fellow of The Australasian Institute of Mining and Metallurgy. Mr Glacken is a full time employee of Optiro Pty Ltd 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 Glacken consents to the inclusion in the documents of the matters based on this information in the form and context in which it appears.

This release may include aspirational targets. These targets are based on management’s expectations and beliefs concerning future events as of the time of the release of this document. Targets are necessarily subject to risks, uncertainties and other factors, some of which are outside the control of ABM Resources NL, that could cause actual results to differ materially from such statements. ABM Resources NL makes no undertaking to subsequently update or revise the forward-looking statements made in this release to reflect events or circumstances after the date of this release.

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Appendix 1: 2017 Mineral Resource Statement for Suplejack

Suplejack Project - Mineral Resource Estimate - February 2017

Area	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces
	Million t	Aug/t	Oz	Million t	Aug/t	Oz	Million t	Aug/t	Oz
	Indicated			Inferred				Total
			Oxide
Hyperion-Tethys	0.04	1.70	2,300	0.21	3.01	20,500	0.25	2.79	22,800
Seuss				0.17	2.48	13,600	0.17	2.48	13,600
Hyperion South				0.03	1.19	1,300	0.03	1.19	1,300
Total	0.04	1.7	2,300	0.42	2.65	35,400	0.46	2.56	37,700
			Transitional
Hyperion-Tethys	0.30	1.69	16,400	0.78	2.16	54,200	1.08	2.03	70,600
Seuss				0.14	2.78	12,800	0.14	2.78	12,800
Hyperion South				0.09	1.31	3,800	0.09	1.31	3,800
Total	0.30	1.69	16,400	1.00	2.17	70,800	1.32	2.06	87,200
			Fresh
Hyperion-Tethys	0.59	2.72	51,600	1.59	1.69	86,100	2.18	1.97	137,600
Seuss				0.31	3.07	30,900	0.31	3.07	30,900
Hyperion South				0.25	2.07	16,400	0.25	2.07	16,400
Total	0.59	2.72	51,600	2.15	1.93	133,400	2.74	2.10	184,900
			Deposit Total
Hyperion-Tethys	0.93	2.34	70,200	2.58	1.94	160,800	3.51	2.04	231,000
Seuss				0.63	2.85	57,300	0.63	2.85	57,300
Hyperion South				0.37	1.80	21,500	0.37	1.80	21,500
Total	0.93	2.34	70,200	3.58	2.08	239,600	4.51	2.14	309,900

Table 1 – Suplejack Project Area reported above 0.8g/t cut-off and above the 230mRL. Resources may not sum to equal totals due to rounding

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Appendix 2: Resource Comparison Table

	Suplejack Project - Mineral Resource Estimate	Suplejack Project - Mineral Resource Estimate	Suplejack Project - Mineral Resource Estimate	Suplejack Project - Mineral Resource Estimate	Suplejack Project - Mineral Resource Estimate	Suplejack Project - Mineral Resource Estimate				2017-2012 Comparison	2017-2012 Comparison	2017-2012 Comparison	2017-2012 Comparison	2017-2012 Comparison	2017-2012 Comparison
	February 2017									2012			Change in Total Resource
	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces	Tonnes	Grade	Ounces
Deposit	Mt	**Aug/t **	Oz	Mt	**Aug/t **	Oz	Mt	**Aug/t **	Oz	Mt	**Aug/t **	Oz	%	%	%
	Indicated			Inferred			Total			Inferred			Indicated and Inferred
Hyperion-Tethys Seuss Hyperion South Total	0.93 2.34 70,200 0.93 2.34 70,200			2.58 1.94 160,800 0.63 2.85 57,300 0.37 1.80 21,500 3.58 2.08 239,600			3.51 2.04 231,000 0.63 2.85 57,300 0.37 1.80 21,500 4.51 2.14 309,900			2.209 2.06 146,600 0.768 2.25 55,500 2.977 2.11 202,200			59% -1% 58% -52% -20% -61% 52% 1% 53%

Mt = million tonnes; Both Mineral Resources are reported above a 0.8g/t cut-off. Totals may vary due to rounding.

Appendix 3: Previous and Relevant Suplejack ASX Announcements

Date of Announcement	Announcement Title	Significance
7/12/2016	Exploration Update – Suplejack DrillingResults	Exploration Results
11/10/2016	ABM StrategyUpdate and Suplejack Diamond DrillingUnderway	Exploration Results
25/08/2016	Exploration Update – Suplejack and Lake Mackay	Exploration Results
27/07/2016	Exploration Update – Suplejack and Lake Mackay	Exploration Results
26/08/2015	New Discoveryat Hyperion East	Exploration Results
16/04/2012	3.3 Million Ounces Gold in Resources	Previous Resource Report

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Appendix 4 SUPLEJACK JORC TABLE 1 DECLARATION

JORC Code, 2012 Edition

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	•	Reverse Circulation (RC) drilling techniques are used to obtain
techniques		cut channels, random chips, or		1m samples when mineralisation is anticipated. Pre-collars for
		specific specialised industry standard		diamond tails are speared into 3m composites and do not fall
		measurement tools appropriate to		within the grade wireframes. Aircore drilling samples were
		the minerals under investigation, such		speared into 1m or 3m composites depending on whether
		as down hole gamma sondes, or		mineralisation was expected.
		handheld XRF instruments, etc). These	•	Diamond core at NQ3 diameter was collected through
		examples should not be taken as		interpreted target zones.
		limiting the broad meaning of	•	RC samples were split into calico bags using a cone splitter at
		sampling.		1m intervals to produce nominal 2.5kg samples. The 2.5kg
	•	Include reference to measures taken		samples were pulverised by the lab to produce a 40g or 50g
		to ensure sample representivity and		charge for fire assay, with the remainder left on site for
		the appropriate calibration of any		logging purposes by ABM geologists.
		measurement tools or systems used.	•	The RC cyclone was cleaned out at 6m intervals and
	•	Aspects of the determination of		thoroughly at the end of each hole to ensure appropriate
		mineralisation that are Material to		sample representivity.
		the Public Report.	•	Upon completion of orientating and geological logging;
	•	In cases where ‘industry standard’		diamond core was cut lengthways, producing a nominal 2kg
		work has been done this would be		sample, with the remaining half retained on site.
		relatively simple (eg ‘reverse	•	Speared RC-precollar and Aircore samples produced a
		circulation drilling was used to obtain		nominal 2.5kg sample with remaining sample piles retained
		1 m samples from which 3 kg was		on site.
		pulverised to produce a 30 g charge	•	Speared samples are not used in resource estimation.
		for fire assay’). In other cases more	•	Samples were pulverised by the lab to produce a 40g or 50g
		explanation may be required, such as		charge for fire assay.
		where there is coarse gold that has	•	Bag sequence is checked regularly by field staff and
		inherent sampling problems. Unusual		supervising geologists.
		commodities or mineralisation types
		(eg submarine nodules) may warrant
		disclosure of detailed information.
Drilling	•	Drill type (eg core, reverse circulation,	•	RC drilling was undertaken with a Schramm 685. This rig has
techniques		open-hole hammer, rotary air blast,		a depth capability of approximately 600m, using a 1000psi,
		auger, Bangka, sonic, etc) and details		1350cfm Sullair compressor and auxiliary booster. Holes were
		(eg core diameter, triple or standard		drilled with 5 5/8” diameter bit.
		tube, depth of diamond tails, face-	•	Historic drilling was RAB, RC, or diamond. Specifics of drilling
		sampling bit or other type, whether		techniques are unknown, except diamond drilling was NQ.
		core is oriented and if so, by what	•	ABM diamond drilling, including pre-collar was undertaken
		method, etc).		with a Sandvik DE840. This rig has a depth capability of
				approximately 500m (RC) or 2,000m (NQ3), using a 500psi,
				900cfm Sullair compressor and auxiliary booster. RC precollars
				were drilled with 5 5/8” diameter bit and diamond core with
				NQ3.
			•	Core is oriented by Reflex Ace orientation tool. Core runs are
				reduced in broken ground to increase the number orientation
				marks.
			•	Aircore holes were drilled with a Schramm drill rig that has a
				depth capacity (in favourable conditions) of 120 metres, using
				250psi, 740cfm air capacity.
			•	Aircore hole diameters vary, depending on the bit used. The

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Criteria		JORC Code explanation		Commentary
				aircore blade bit has a diameter of 90mm. In addition to the
				aircore blade, two percussion hammers have been used, in
				areas where the blade bit is unable to penetrate; a Sandvik
				RE35 hammer with an 89.5mm diameter bit and a Sandvik
				RE540 hammer with a 111mm diameter bit. Both hammers
				allow the use of through-the-bit sampling.
Drill sample	•	Method of recording and assessing	•	All ABM RC samples were taken using a 12.5:1 Sandvik static
recovery		core and chip sample recoveries and		cone splitter mounted under a polyurethane cyclone. Samples
		results assessed.		were split into calico bags and sent to the lab for assay; the
	•	Measures taken to maximise sample		remainder sample material remaining on site. Size of the
		recovery and ensure representative		sample was monitored at the drill site by the responsible
		nature of the samples.		geologist to ensure adequate recovery. No relationship
	•	Whether a relationship exists		between sample recovery and grade is apparent.
		between sample recovery and grade	•	With good recoveries sample bias is unlikely due to
		and whether sample bias may have		preferential loss/gain of fine/coarse material occurring.
		occurred due to preferential loss/gain	•	Core recoveries were good, with only minor intervals missing
		of fine/coarse material.		due to core loss in broken ground.
			•	Aircore drill cuttings were collected from the rig mounted
				cyclone and placed on the ground for further sampling. Size of
				the sample was monitored at the drill site by the responsible
				geologist to ensure adequate recovery. No relationship
				between sample recovery and grade is apparent.
			•	Speared samples from Aircore and RC pre-collars are not
				included in resource estimation
Logging	•	Whether core and chip samples have	•	ABM drilling samples were geologically logged at the drill rig
		been geologically and geotechnically		or in the core yard by a geologist using a laptop with Maxwell
		logged to a level of detail to support		Logchief data capture system. Data on lithology, weathering,
		appropriate Mineral Resource		alteration, magnetic susceptibility, ore mineral content and
		estimation, mining studies and		style of mineralisation, and quartz content and style of quartz
		metallurgical studies.		were collected.
	•	Whether logging is qualitative or	•	Diamond core is also logged for structure, geotech and
		quantitative in nature. Core (or		specific gravity
		costean, channel, etc) photography.	•	Data on lithology, weathering, alteration, ore mineral content
	•	The total length and percentage of		and style, style of mineralisation and quartz content has also
		the relevant intersections logged.		been captured for historic drill holes.
			•	Logging is both qualitative and quantitative. Lithological
				factors, such as the degree of weathering and strength of
				alteration are logged in a qualitative fashion. The presence of
				quartz veining, specific gravity, and minerals of economic
				importance are logged in a quantitative manner.
Sub-sampling	•	If core, whether cut or sawn and	•	RC samples were split with a 12.5:1 Sandvik static cone splitter
techniques		whether quarter, half or all core		mounted under a polyurethane cyclone. Pre-collar samples
and sample		taken.		were speared as 3m composites using a PVC tube. One pre-
preparation	•	If non-core, whether riffled, tube		collar was speared as 1m intervals in an area of possible
		sampled, rotary split, etc and whether		mineralisation.
		sampled wet or dry.	•	All intervals were sampled dry.
	•	For all sample types, the nature,	•	Diamond core was cut by Almonte core saw. Half core was
		quality and appropriateness of the		taken for analysis, and the remaining half retained on site.
		sample preparation technique.	•	Aircore samples have been recovered using the ‘hand
	•	Quality control procedures adopted		spearing’ technique. Drill spoils are collected from the drill rig
		for all sub-sampling stages to		by the drill offsider, and are placed on the ground. ABM staff
		maximise representivity of samples.		use a ‘spear’; a length of 50mm (diameter) PVC pipe to cut
	•	Measures taken to ensure that the		through the drill spoil, collecting a representative sample by
		sampling is representative of the in		cutting through the drill spoil several times, in varied

14

Criteria		JORC Code explanation		Commentary
		situ material collected, including for		orientations and locations through the spoil.
		instance results for field	•	RC and Aircore field duplicates were taken every 50 samples.
		duplicate/second-half sampling.		RC, Aircore and diamond samples have a blank or standard
	•	Whether sample sizes are appropriate		inserted every 50 samples. Blank material was sourced from a
		to the grain size of the material being		quarry in Alice Springs – this material matches that previously
		sampled.		used as a flush material by ALS in Alice Springs. Three certified
				standards acquired from GeoStats Pty. Ltd., with different
				gold grade and lithology, were also used.
			•	Upon receipt by the laboratory samples were logged,
				weighed, and dried if wet. Samples were then crushed to 2mm
				(70% pass), then split using a riffle splitter, with 250g crushed
				to 75 µm (85% pass). 40g or 50g charges were then fire
				assayed.
Quality of	•	The nature, quality and	•	All RC and Aircore drill samples have been analysed for gold
assay data		appropriateness of the assaying and		by ALS. All diamond core and pre-collar samples have been
and		laboratory procedures used and		analysed for gold by Bureau Veritas.
laboratory		whether the technique is considered	•	For low detection, ABM use a lead collection fire assay, read
tests		partial or total.		by ICP-AES, which is an inductively coupled plasma atomic
	•	For geophysical tools, spectrometers,		emission spectroscopy technique, using a 40g sample charge
		handheld XRF instruments, etc, the		(Bureau Veritas) or a 50g sample charge (ALS) with a lower
		parameters used in determining the		detection limit of 0.001ppm Au and an upper limit of
		analysis including instrument make		1,000ppm Au.
		and model, reading times,	•	In addition to standards and blanks previously discussed, ALS
		calibrations factors applied and their		and Bureau Veritas conducted internal lab checks using
		derivation, etc.		standards, blanks. Standards and blanks returned within
	•	Nature of quality control procedures		acceptable limits, and field duplicates showed good
		adopted (eg standards, blanks,		correlation.
		duplicates, external laboratory
		checks) and whether acceptable levels
		of accuracy (ie lack of bias) and
		precision have been established.
Verification	•	The verification of significant	•	Significant intersections were calculated independently by the
of sampling		intersections by either independent or		database administrator and senior exploration geologist.
and assaying		alternative company personnel.	•	The drilling being reported is exploratory in nature. As such,
	•	The use of twinned holes.		none of the holes have been twinned in the current program.
	•	Documentation of primary data, data		Where results warrant, follow-up drilling will be completed.
		entry procedures, data verification,	•	For drilling data, ABM uses the Maxwell Data Schema (MDS)
		data storage (physical and electronic)		version 4.5.1. The interface to the MDS used is DataShed
		protocols.		version 4.5 and SQL 2008 R2 (the MDS is compatible with SQL
	•	Discuss any adjustment to assay data.		2008-2012 – most recent industry versions used). This
				interface integrates with LogChief and QAQCReporter 2.2, as
				the 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 of the data and increasing the value
				through integration with GIS systems. Security is set through
				both SQL and the DataShed configuration software. ABM has
				a full time Database Administrator and an external contractor
				with expertise in programming and SQL database
				administration. Access to the database by the geoscience staff
				is controlled through security groups where they can export
				and import data with the interface providing full audit trails.
				Assay data is provided in MaxGEO format from the
				laboratories and imported by the Database Administrator.

15

Criteria		JORC Code explanation		Commentary
				The database assay management system records all
				metadata within the MDS and this interface provides full audit
				trails to meet industry best practice.
Location of	•	Accuracy and quality of surveys used	•	Hole collars were laid out with Handheld GPS, providing
data points		to locate drill holes (collar and down-		accuracy of ± 3m. Drilled hole locations vary from ‘design’ by
		hole surveys), trenches, mine		as much as 5m (locally) due to constraints on access clearing.
		workings and other locations used in		This degree of variation is deemed acceptable for exploration
		Mineral Resource estimation.		drilling.
	•	Specification of the grid system used.	•	Final hole locations will be determined at the completion of
	•	Quality and adequacy of topographic		the program. Collar locations were collected with a handheld
		control.		GPS using waypoint averaging for greater accuracy than
				conventional GPS points.
			•	The projection used is GDA94, using MGA coordinates in Zone
				52.
			•	Down hole surveys that recorded dip and azimuth have been
				completed in all drill holes using a Reflex EZ-Trac single-shot
				camera tool. Surveys are taken every 30m and at the end of
				hole position.
Data spacing	•	Data spacing for reporting of	•	Existing drilling spacing is predominantly at 25 - 50m spaced
and		Exploration Results.		lines with 20 – 40m spaced holes. Diamond drill holes were
distribution	•	Whether the data spacing and		designed to extend down dip or down plunge by 40 – 80m
		distribution is sufficient to establish		distances.
		the degree of geological and grade	•	Sample spacing is sufficient to provide geological and grade
		continuity appropriate for the Mineral		continuity.
		Resource and Ore Reserve estimation	•	No sample compositing was applied – with the exception of
		procedure(s) and classifications		RC pre-collars not designed to intersect mineralisation. No 3m
		applied.		composite pre-collar samples fall within grade wireframes. No
	•	Whether sample compositing has		compositing has been applied to mineralised intersections.
		been applied.
Orientation	•	Whether the orientation of sampling	•	Hyperion, Tethys and Hyperion South are hosted in a shear
of data in		achieves unbiased sampling of		zone with strong adjacent alteration. The structural zone and
relation to		possible structures and the extent to		associated mineralisation trends ESE – WNW and dips to the
geological		which this is known, considering the		south at ~75º. The drilling intersection to the north therefore
structure		deposit type.		eliminates potential bias and intersects mineralisation at
	•	If the relationship between the drilling		across the zone and not down the zone.
		orientation and the orientation of key	•	The Seuss structure trends roughly N-S and dips to the east at
		mineralised structures is considered		~75º. Drilling to the west therefore eliminates potential bias
		to have introduced a sampling bias,		and intersects mineralisation at roughly true widths. The
		this should be assessed and reported		initial ‘discovery drill line’ on Seuss comprises 5 RC holes
		if material.		drilled to the north and therefore do not intersect
				mineralisation at an optimal angle.
			•	RC holes previously reported (ASX 26 Jul 2016) now
				reinterpreted to be the Suess structure are re-reported (ASX
				02 Dec 2016) as true width intersections.
Sample	•	The measures taken to ensure sample	•	Samples were transported daily by ABM personnel from the
security		security.		drill locations to the Central Tanami mine site, where twice
				weekly they were loaded onto a courier truck, and taken to
				the secure preparation facility in Adelaide, via Alice Springs.
				The preparation facilities use the laboratory’s standard chain
				of custody procedure.
Audits or	•	The results of any audits or reviews of	•	ABM has conducted several lab visits to the Perth laboratory
reviews		sampling techniques and data.		facilities and found no faults.
			•	QA/QC review of laboratory results is ongoing as results are
				finalized with no standards or blanks performing poorly to

16

Criteria	JORC Code explanation	Commentary
		date. ABM has also conducted annual reviews at the end of
		every calendar year, and found no significant statistical
		outliers.

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,	•	Suplejack prospects are located on EL 9250 in the Northern
tenement		location and ownership including		Territory. The tenement is wholly owned by ABM, and subject
and land		agreements or material issues with		to the ‘Granites’ agreement between ABM and the Traditional
tenure status		third parties such as joint ventures,		Owners via Central Land Council (CLC). The Exploration Lease
		partnerships, overriding royalties,		transferred to ABM in December 2009.
		native title interests, historical sites,
		wilderness or national park and
		environmental settings.
	•	The security of the tenure held at the
		time of reporting along with any
		known impediments to obtaining a
		licence to operate in the area.
Exploration	•	Acknowledgment and appraisal of	•	The target area was first recognised in this district by surface
done by		exploration by other parties.		geochemistry and shallow lines of RAB drilling in the late
other parties				1990s by Otter Gold NL. North Flinders, Normandy NFM and
				Newmont Asia Pacific subsequently all conducted exploratory
				work on the project with the last recorded drilling (prior to
				ABM) completed in 2005. Previous exploration work provided
				the foundation on which ABM based its exploration strategy.
Geology	•	Deposit type, geological setting and	•	Geology at Suplejack consists of a mafic stratigraphic package
		style of mineralisation.		and occasional steeply dipping sedimentary rocks (sandstone
				and shale); in places intruded by granite dykes.
			•	Mineralisation is disseminated and coarse gold within a shear
				zone in the proximity of a larger granite intrusion into a
				sequence of N-S trending mafic units.
Drill hole	•	A summary of all information	•	Summaries of all material drill holes are available within the
Information		material to the understanding of the		Company’s ASX releases.
		exploration results including a
		tabulation of the following
		information for 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
		understanding of the report, the

17

Criteria		JORC Code explanation		Commentary
		Competent Person should clearly
		explain why this is the case.
Data	•	In reporting Exploration Results,	•	Grade averages calculated on diamond core sampled at
aggregation		weighting averaging techniques,		varying intervals are weighted by the sample length.
methods		maximum and/or minimum grade	•	ABM does not use grade truncations for reporting of
		truncations (eg cutting of high		exploration results.
		grades) and cut-off grades are usually	•	ABM reports significant intercept values at 0.5g/t Au. The
		Material and should be stated.		0.5g/t Au is an average of all continuous values which
	•	Where aggregate intercepts		collectively average greater than 0.5g/t Au, with no more
		incorporate short lengths of high		than 3 continuous metres below this cut-off.
		grade results and longer lengths of	•	The initial ‘discovery drill line’ on Seuss comprises 5 RC holes
		low grade results, the procedure used		drilled to the north and therefore do not intersect
		for such aggregation should be stated		mineralisation at an optimal angle.
		and some typical examples of such	•	These RC holes previously reported (ASX 26 Jul 2016) now
		aggregations should be shown in		reinterpreted to be the Suess structure are re-reported (ASX
		detail.		02 Dec 2016) as true width intersections.
	•	The assumptions used for any
		reporting of metal equivalent values
		should be clearly stated.
Relationship	•	These relationships are particularly	•	Host lithologies and mineralisation are most commonly
between		important in the reporting of		steeply dipping (between 60 and 80 degrees). Drill holes are
mineralisatio		Exploration Results.		angled so as to drill as close to perpendicular to mineralisation
n widths and	•	If the geometry of the mineralisation		as possible.
intercept		with respect to the drill hole angle is	•	Intercepts reported are down hole length, which is considered
lengths		known, its nature should be reported.		equivalent to the true width of mineralisation. Any previous
	•	If it is not known and only the down		drilling intersecting mineralisation at less optimal angles are
		hole lengths are reported, there		re-calculated and reported as true widths (ASX 02 Dec 2016).
		should be a clear statement to this
		effect (eg ‘down hole length, true
		width not known’).
Diagrams	•	Appropriate maps and sections (with	•	Maps and tables are located within the report or associated
		scales) and tabulations of intercepts		appendices, and released with all exploration results.
		should be included for any significant
		discovery being reported These 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	•	The Company reports all assays as they are finalised by the
reporting		Exploration Results is not practicable,		laboratory and compiled into geological context.
		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	•	The Company reports all other relevant exploration results.
substantive		and material, should be reported
exploration		including (but not limited to):
data		geological observations; geophysical
		survey results; geochemical survey
		results; bulk samples – size and
		method of treatment; metallurgical
		test results; bulk density,
		groundwater, geotechnical and rock
		characteristics; potential deleterious
		or contaminating substances.

18

Criteria		JORC Code explanation		Commentary
Further work	•	The nature and scale of planned	•	The consistency, grade, and shallow depth of the intersections
		further work (eg tests for lateral		at Seuss to date warrants further drilling to extend the
		extensions or depth extensions or		structure along strike to the north and south in the 2017
		large-scale step-out drilling).		drilling season.
	•	Diagrams clearly highlighting the	•	Seuss drilling, extensional drilling at Hyperion, Tethys and
		areas of possible extensions, including		Hyperion South, and drill testing of additional target
		the main geological interpretations		structures will be designed upon completion of the 3D
		and future drilling areas, provided		geological interpretation
		this information is not commercially
		sensitive.

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

Criteria		JORC Code explanation		Commentary
Database	•	Measures taken to ensure that data	•	ABM uses the Maxwell Data Schema (MDS) version 4.5.1. The
integrity		has not been corrupted by, for		interface to the MDS used is DataShed version 4.5 and SQL
		example, transcription or keying		2008 R2 (the MDS is compatible with SQL 2008-2012). This
		errors, between its initial collection		interface integrates with LogChief and QAQCReporter 2.2, as
		and its use for Mineral Resource		the primary choice of data capture and assay quality control
		estimation purposes.		software. DataShed is a system that captures data and
	•	Data validation procedures used.		metadata from various sources, storing the information to
				preserve the value of the data and increasing the value
				through integration with GIS systems. Security is set through
				both SQL and the DataShed configuration software.
			•	ABM has a full time Database Administrator and external
				contractors with expertise in programming and SQL database
				administration. Access to the database by the geoscience
				staff is controlled through security groups where they can
				export and import data with the interface providing full audit
				trails.
			•	Assay data is provided in MaxGEO format from the
				laboratories and imported by the Database Administrator.
				The database assay management system records all
				metadata within the MDS and this interface provides full
				audit trails to meet industry best practice.
			•	Drilling and surface sampling data is collected and recorded
				by geologists in the field using Toughbook computers with
				Maxwells Logchief data entry software. Logchief includes full
				sets of data validation rules and library codes as part of the
				integration with Datashed and the underlying SQL Server
				database. The data is exported as xls spreadsheets from
				Logchief and emailed directly to the Database Manager.
				Original copies of the data entry spreadsheets and laboratory
				assay data files (both PDF and .csv format files) are stored in
				a folder on the ABM Server, and these can only be accessed
				by the Database Administrator
			•	The data was provided to Optiro in the form of a series of
				spreadsheets which were imported into a Mineral Resource
				Access Database. All data was validated during import into
				Datamine Studio 3.
Site visits	•	Comment on any site visits	•	No site visit has been undertaken by the Competent Person
		undertaken by the Competent Person		Mr Ian Glacken of Optiro Pty Ltd. ABM believes that there is

19

Criteria		JORC Code explanation		Commentary
		and the outcome of those visits.		little information to be gained by a site visit.
	•	If no site visits have been undertaken
		indicate why this is the case.
Geological	•	Confidence in (or conversely, the	•	Mineralisation is hosted primarily in a mafic host rock,
interpretation		uncertainty of) the geological		interspersed with variable granite intrusions.
		interpretation of the mineral deposit.	•	A series of 3D wireframes delineating mineralisation was
	•	Nature of the data used and of any		generated by ABM geologists using a nominal 0.5 g/t Au
		assumptions made.		threshold. A maximum of 3 m internal waste was allowed, as
	•	The effect, if any, of alternative		long as the combined grade exceeded 0.5 g/t. Narrow
		interpretations on Mineral Resource		intervals of less than 0.5 g/t gold were occasionally included
		estimation.		when geological and/or structural continuity was
	•	The use of geology in guiding and		demonstrated. All available data (excluding RAB drillholes)
		controlling Mineral Resource		was used in the interpretation. Extrapolation of
		estimation.		mineralisation was limited to approximately half the drill
	•	The factors affecting continuity both		spacing.
		of grade and geology.	•	One historical hole, HYRC0026, is thought to be incorrectly
				located some 18.5 m to the south of the current
				interpretation. For the purpose of this estimation, this hole
				has been shifted 18.5 m north to match the current
				interpretation, maintaining the intersection width. A check
				survey will be attempted on this hole in the next field session.
				The area of the resource affected by this hole has been
				classified as Inferred only.
			•	Overall the Hyperion-Tethys mineralisation trend is
				consistent in strike and dip between sections. The Hyperion
				South mineralisation is less consistent, and of lower grade.
				The Seuss structure has been successfully mapped on surface
				to a total strike distance of over 300 m. Overall there is strong
				geological confidence in the interpretation.
			•	Currently, no alternative interpretations have been
				considered.
			•	The Hyperion-Tethys trend consists of a central structure (of
				higher grade) with adjacent hangingwall and footwall zones
				(lower grade).
			•	Structures were grouped for domain analysis according to
				orientation, geology and grade.
			•	The Competent Person has confidence in the interpretation of
				geology and mineralisation at the deposit.
Dimensions	•	The extent and variability of the	•	The main mineralised lode at Hyperion has a strike length of
		Mineral Resource expressed as length		550 m and is defined to an average depth of 175 m below
		(along strike or otherwise), plan		surface. The average width of mineralisation is 10 m. Less
		width, and depth below surface to		continuous and narrow footwall mineralisation is identified
		the upper and lower limits of the		within the same strike length and within 100 m from surface.
		Mineral Resource.		A number of minor, flat lying footwall lodes extend to the
				north.
			•	Tethys mineralisation extends along strike from the Hyperion
				trend. Currently it is defined along strike to a total of 900 m.
				The western hangingwall is the most consistent structure,
				accounting for approximately 600m of strike extent, with two
				parallel lodes present in the footwall position. Two additional
				lodes continue to the east along the Tethys structure with
				approximately 300 m of strike extent. All lodes are defined to
				a depth of 150 m. The average lode width is 3 m, with a
				maximum of 15 m.

20

Criteria		JORC Code explanation		Commentary
			•	Hyperion South wireframes represent a stacked set of en
				echelon style mineralisation trends. Each lode averages 200
				m along strike and 100 m depth extent. Their width is typically
				3 m, with a maximum of 13 m.
			•	Mineralisation at Seuss trends north-south and is currently
				defined along a 230 m strike length, down to a depth of 215
				m below surface. The Seuss structure outcrops at surface and
				has an average width of 10 m.
Estimation	•	The nature and appropriateness of	•	Estimation of Au (ppm) was completed in Datamine Studio 3
and modelling		the estimation technique(s) applied		using ordinary kriging (OK) into parent blocks of 10 mE by 10
techniques		and key assumptions, including		mN by 5 mRL. Sub-celling down to 0.5 mE by 0.5 mN by 0.25
		treatment of extreme grade values,		mRL was employed at domain boundaries to ensure
		domaining, interpolation parameters		adequate volume resolution. The Competent Person believes
		and maximum distance of		that the OK approach reflects standard industry practice and
		extrapolation from data points. If a		is entirely appropriate for the nature and characteristics of
		computer assisted estimation method		the mineralisation being evaluated.
		was chosen include a description of	•	Only RC and Diamond drill hole data was used in the
		computer software and parameters		estimation. All samples were composited to 1 m downhole
		used.		intervals.
	•	The availability of check estimates,	•	A total of 17 lodes were estimated utilising hard estimation
		previous estimates and/or mine		boundaries. Individual lodes were grouped into six domains
		production records and whether the		based on geology, orientation and mean grades for
		Mineral Resource estimate takes		variography and top cut analysis.
		appropriate account of such data.	•	Top cuts were applied to each domain, reducing the effect of
	•	The assumptions made regarding		outlier values on the estimation. Top cut selection was based
		recovery of by-products.		on the results of a population disintegration analysis and
	•	Estimation of deleterious elements or		review of the domain statistics. For each domain, no more
		other non-grade variables of		than the top 2.5% of the data was top cut. Top cut values
		economic significance (eg sulphur for		range from 4 to 20 g/t Au.
		acid mine drainage characterisation).	•	Variogram analysis was completed using Supervisor
	•	In the case of block model		software. Normal scores transformation were used with the
		interpolation, the block size in		results back-transformed before use. The directions of grade
		relation to the average sample		continuity confirmed the interpreted geological continuity.
		spacing and the search employed.		Ranges varied from 53 m to 110 m in the Major direction, 36
	•	Any assumptions behind modelling of		m to 53 m in the Semi-major direction and 4 m to 7.8 m in the
		selective mining units.		Minor direction. Minor domains utilised borrowed
	•	Any assumptions about correlation		variography from geologically similar domains, orientated
		between variables.		appropriately.
	•	Description of how the geological	•	Domain boundary analysis was completed on the main
		interpretation was used to control		Hyperion-Tethys domain to assess the effects of the oxidation
		the resource estimates.		profile on grade behaviour. For lodes with greater than 50
	•	Discussion of basis for using or not		samples, a hard estimation boundary between the oxide
		using grade cutting or capping.		(+transitional) and fresh profiles was used. All other lodes
	•	The process of validation, the		utilised a soft boundary approach.
		checking process used, the	•	Kriging neighbourhood analysis was performed to determine
		comparison of model data to drill		the block size, sample numbers, discretisation and search
		hole data, and use of reconciliation		ellipse sensitivity.
		data if available.	•	A total of three search passes were used, with the search
				ellipse preferentially oriented for each lode. The first search
				pass set to the range of the variogram for each domain using
				a range of 8 to 24 samples. The minimum sample number
				was reduced to 4 samples in the second pass. The third
				search pass was expanded to 5 times the range of the
				variogram utilising 4 to 24 samples. A maximum of 4 samples

21

Criteria		JORC Code explanation		Commentary
				per drillhole was employed. Discretisation was set to 5 (E) by
				5 (N) by 2 (RL).
			•	A total of 54% and 22% of the total resource was estimated
				in the first and second passes (the range of the variogram).
				The remaining 24% was estimated in the third pass.
				Unestimated blocks (<0.01%) were set to the domain
				average.
			•	The estimated block model grades were visually validated
				against the input drillhole data and comparisons were carried
				out against the drillhole data and by northing and easting
				slices. Global comparison between the declusterd input data
				and the block grades for the main lodes is considered
				acceptable (±10%).
			•	The previous estimate of the Suplejack project (Hyperion and
				Hyperion South mineralisation) was completed by SRK in
				2012. The interpretation was based on a series of 3D grade
				shells generated in Leapfrog with grade estimated using ID
				estimation techniques. Since 2012 an additional 64 RC/RCD
				holes (for 7494 m) have been drilled and used in the 2017
				resource estimate. The current 2017 resource is based upon
				sectional interpretation of discrete lodes rather than the
				large grade shells of the 2012 resource. Due to the additional
				drilling and changes in the interpretation the 2012 and 2017
				Mineral Resources cannot be directly compared.
Moisture	•	Whether the tonnages are estimated	•	Tonnages have been estimated in situ, on a dry basis. The
		on a dry basis or with natural		moisture content has been assumed based upon similar
		moisture, and the method of		deposits.
		determination of the moisture
		content.
Cut-off	•	The basis of the adopted cut-off	•	The Mineral Resource has been reported using a 0.8 g/t Au
parameters		grade(s) or quality parameters		cut-off and above 230 mRL. This is assumed to be the
		applied.		economic parameters of an open pit operation and is based
				upon reasonably-assumed economic parameters and similar
				deposits.
Mining factors	•	Assumptions made regarding	•	The Mineral Resource has been reported using a 0.8 g/t Au
or		possible mining methods, minimum		cut-off and above 230 mRL. This is assumed to be the
assumptions		mining dimensions and internal (or, if		economic parameters of an open pit operation. No
		applicable, external) mining dilution.		optimisation for resource constraint purposes has been
		It is always necessary as part of the		attempted.
		process of determining reasonable
		prospects for eventual economic
		extraction to consider potential
		mining methods, but the assumptions
		made regarding mining methods and
		parameters when estimating Mineral
		Resources may not always be
		rigorous. Where this is the case, this
		should be reported with an
		explanation of the basis of the mining
		assumptions made.
Metallurgical	•	The basis for assumptions or	•	No detailed metallurgical testwork has yet been completed at
factors or		predictions regarding metallurgical		the Suplejack Project; however, all nearby Tanami pits have
assumptions		amenability. It is always necessary as		been successfully mined up to the depth of oxide, with some
		part of the process of determining		ores being more refractory than others. The best analogue

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Criteria		JORC Code explanation		Commentary
		reasonable prospects for eventual		closest to Suplejack is the Groundrush deposit, which has
		economic extraction to consider		been mined to depths of up to 150 m below surface.
		potential metallurgical methods, but		Occasional elevated arsenopyrite has been recognised, but is
		the assumptions regarding		not expected to materially affect metallurgical amenability
		metallurgical treatment processes		within weathered material.
		and parameters made when
		reporting Mineral Resources may not
		always be rigorous. Where this is the
		case, this should be reported with an
		explanation of the basis of the
		metallurgical assumptions made.
Environmental	•	Assumptions made regarding	•	Ore is likely to be processed at an existing processing plant
factors or		possible waste and process residue		with process residue disposal infrastructure in place. Waste
assumptions		disposal options. It is always		material will likely be stored adjacent to excavation works.
		necessary as part of the process of		Levels of arsenic and other elements in waste material are
		determining reasonable prospects for		generally low and are not expected to complicate waste
		eventual economic extraction to		handling processes.
		consider the potential environmental
		impacts of the mining and processing
		operation. While at this stage the
		determination of potential
		environmental impacts, particularly
		for a greenfields project, may not
		always be well advanced, the status
		of early consideration of these
		potential environmental impacts
		should be reported. Where these
		aspects have not been considered
		this should be reported with an
		explanation of the environmental
		assumptions made.
Bulk density	•	Whether assumed or determined. If	•	A total of 230 density measurements were collected from
		assumed, the basis for the		diamond core at the Suplejack project. Weathering and
		assumptions. If determined, the		lithology were recorded, and specific gravity was calculated
		method used, whether wet or dry, the		from dry and wet core weights. A wax was used to cover pores
		frequency of the measurements, the		when taking wet core weights, to account for void spaces.
		nature, size and representativeness	•	Densities have been assigned based on rock and/or material
		of the samples.		type and are averages for each domain from the
	•	The bulk density for bulk material		measurements taken.
		must have been measured by	•	Assigned values compare with values quoted from nearby
		methods that adequately account for		projects (Tregony and Groundrush).
		void spaces (vugs, porosity, etc),
		moisture and differences between		Domain Rock Type SG
		rock and alteration zones within the		Transported 2.0
		deposit.		Oxide 2.2
	•	Discuss assumptions for bulk density		Transition 2.5
		estimates used in the evaluation		Granite _2.7 _
		process of the different materials.		Fresh Sediments 2.8 Mafics _2.92 _
				Mineralisation 2.87
Classification	•	The basis for the classification of the	•	A combination of drill spacing, confidence in the geological
		Mineral Resources into varying		interpretation and estimation quality measures were used to
		confidence categories.		classify the resource.
	•	Whether appropriate account has	•	No Measured category has been defined.
		been taken of all relevant factors (ie	•	Approximately 18% of the resource (total resource, at 0 g/t

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Criteria		JORC Code explanation		Commentary
		relative confidence in tonnage/grade		cut-off) has been classified as Indicated. Areas where the drill
		estimations, reliability of input data,		spacing was closer than 50 m by 50 m, strong confidence in
		confidence in continuity of geology		the geological continuity of the mineralisation and where the
		and metal values, quality, quantity		kriging efficiencies were better than 30% were classified as
		and distribution of the data).		Indicated. 98% of the total Indicated resource has been
	•	Whether the result appropriately		estimated in the first pass.
		reflects the Competent Person’s view	•	The remaining 82% of the total resource, at 0 g/t) was
		of the deposit.		classified as Inferred.
			•	The classification reflects the Competent Person’s view of the
				deposit.
Audits or	•	The results of any audits or reviews of	•	The Mineral Resource has been audited internally as part of
reviews		Mineral Resource estimates.		normal validation processes by Optiro.
			•	There has been no external review of the Mineral Resource
				estimate.
Discussion of	•	Where appropriate a statement of	•	A total of 98% of the Indicated Resource was estimated in the
relative		the relative accuracy and confidence		first search pass and is considered to have a high level of
accuracy/		level in the Mineral Resource		confidence. The Inferred portion of the resource has lower
confidence		estimate using an approach or		confidence due to the limited drill information. In
		procedure deemed appropriate by		consideration of the block size, drill spacing and good
		the Competent Person. For example,		geological and grade continuity, the model is believed to be
		the application of statistical or		suitable for local (annual to quarterly) grade estimates.
		geostatistical procedures to quantify		There has been no production for calibration of the
		the relative accuracy of the resource		classification.
		within stated confidence limits, or, if
		such an approach is not deemed
		appropriate, a qualitative discussion
		of the factors that could affect the
		relative accuracy and confidence of
		the estimate.
	•	The statement should specify
		whether it relates to global or local
		estimates, and, if local, state the
		relevant tonnages, which should be
		relevant to technical and economic
		evaluation. Documentation should
		include assumptions made and the
		procedures used.
	•	These statements of relative accuracy
		and confidence of the estimate
		should be compared with production
		data, where available.

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