QMINES LIMITED — Capital/Financing Update 2021

Jul 12, 2021

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ASX:QML
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QMINES LIMITED Queensland’s Next Copper & Gold Developer…

13 July 2021

HIGH-GRADE COPPER, GOLD AND SILVER RESULTS WITH BONANZA ZINC AND LEAD FROM MT CHALMERS DIAMOND DRILLING

HIGHLIGHTS

• Final four diamond holes cut with all assays now received from Mt Chalmers maiden 11-hole diamond drilling program;

• Outstanding high-grade copper, gold, silver, zinc and lead results returned with bonanza grades of up to 16.8% Zn, 8.3% Pb and 41g/t Ag from drillhole MCDD001;

• Significant intersections include:[ 1]

• 7.5m @ 0.75g/t Au, 23g/t Ag, 0.24% Cu, 3.5% Pb and 7.4% Zn from 70.5 metres;

  • Including 2.2m @ 0.85g/t Au, 41g/t Ag, 0.54% Cu, 8.3% Pb and 16.8% Zn from 72.5 metres.

• 8.7m @ 0.73g/t Au, 26g/t Ag, 0.34% Cu, 1.7% Pb and 4.4% Zn from 21.2 metres;

• 0.6m @ 3.31g/t Au, 87g/t Ag, 5.21% Cu and 1% Zn from 115 metres;

• 15.2m @ 2.36g/t Au, 0.67% Cu from 139 metres;

  • Including 2m @ 9.31g/t Au and 1.34% Cu from 154 metres; and

• 14.6m @ 1.01% Cu from 185 metres.

• First six RC holes from the planned thirty-hole drilling program at Mt Chalmers have been completed with RC drilling ongoing.

QMines Limited ( ASX:QML ) ( FSE:81V ) ( QMines or Company ) is pleased to provide the following results from the final four unassayed holes from the recent diamond drilling program at the flagship Mt Chalmers Copper Project, located 17km north-east of Rockhampton in Queensland (Figure 1).

The final four diamond holes from Mt Chalmers have delivered numerous high-grade precious and base metal intersections with outstanding polymetallic grades including. 2.2m @ 0.85g/t Au, 41g/t Ag, 0.54% Cu, 8.3% Pb and 16.8% Zn from drillhole MCDD001 drilled during this diamond program.

MANAGEMENT COMMENT

Commenting on the results, QMines Chairman Andrew Sparke, said:

“Final assays from the maiden diamond drilling program have returned some outstanding copper, gold and polymetallic results. The current resource model has not factored in zinc and lead so we will now work towards updating the resource model to factor in these results. The Company’s RC drilling program is progressing well with six holes drilled to date. We expect to deliver more results that will lead to a resource update in the near future.”

1 Silver results in this announcement have been rounded to the nearest whole number.

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All significant results from the Mt Chalmers diamond drilling program can now be seen in Table 1 in red text with previous results announced 19 May 2020 shown in Table 1 in black text. Drillhole collar locations from the recently completed diamond program can be seen in Figure 2.

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Figure 1: Location of the Mt Chalmers Copper Project, granted tenure, geology and related infrastructure.

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Figure 2: Diamond drill hole collar locations, Mt Chalmers copper project, drilled Feb-March 2021.

QMines has completed an eleven-hole diamond drilling program for 1,587 metres (Figure 2), which commenced in Q1-2021 at the Mt Chalmers Copper Project. DDH1 Drilling completed the drilling program in six weeks. Company staff completed all core cutting during the last swing on site with all diamond core assays now received from ALS and all results from the diamond program are shown in Table 1.

The diamond drilling program was undertaken to validate historical drilling data compiled and digitised by the Company over the previous six months since acquiring the project. All diamond drill holes have been drilled within the current resource shell envelope with collar locations seen draped over the resource shell wireframe on the plan view shown in Figure 3.

Long Section A-A’ (Figure 4) displays the Digital Terrain Model (DTM), the resource shell wireframe, drill collar locations and significant mineralised intersections assayed by the Company with the previously announced results from 19 May 2020 shown in grey and the new results shown in red.

Drill hole MCDDH004 was abandoned before reaching target depth due to the drill string intersecting a void with the rig losing water return. MCDDH004 was re-drilled twenty metres to the south as DDH005 and reached the planned target depth. Drill hole MCDDH009 ended in mineralisation at the end of hole (EOH), with the drill hole not reaching target depth due to intersecting a void and losing water return.

Cross Sections A-A, B-B’ and C-C’ (Figure 5-7) illustrate DDH001-DDH003, DDH008 and DDH0010 significant intersections from the new assayed results from the diamond drilling program and relevant historical drill holes also shown in cross section.

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Figure 3: Mt Chalmers resource shell wireframe with sections A-A’, B-B’ and C-C’ locations and drill collars.

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Figure 4: Mt Chalmers Long Section A-A showing all diamond drill hole collars, historical twinned collars, resource shell wireframe and significant intersections.

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Figure 5-7: Cross Sections A-A, B-B’ and C-C from the Mt Chalmers diamond drilling program showing new significant intersections detailed in red text with drill collars and current resource shell.

GEOLOGY

The geology of the Mt Chalmers area is relatively well-known with the Mt Chalmers mineralisation being identified as a well-preserved, volcanic-hosted massive-sulphide (“VHMS”) mineralised system containing copper, gold, zinc, lead and silver. Mineral deposits of this type are deemed syngenetic and formed contemporaneously on, or in close proximity to, the sea floor during the deposition of the host-rock units. The mineralisation is believed to have been deposited from hydrothermal fumaroles, or direct chemical sediments or sub-seafloor massive sulphide replacement zones and layers, together with footwall disseminated and stringer zones within the host volcanic and sedimentary rocks.

The mineralisation system at Mt Chalmers displays some similarities to Australian VHMS deposits of Cambro-Ordovician and Silurian age, however closer comparison can be made with the Kuroko-style of VHMS of Tertiary age in Japan (Taube 1990).

The Mt Chalmers mineralisation is situated in the early Permian Berserker Beds, which occur in the fault-bounded Berserker Graben, a structure 120km long and up to 15km wide. The graben is juxtaposed along its eastern margin with the Tungamull Fault and in the west with the Parkhurst Fault (Figure 1). The Berserker Beds lithologies consist mainly of acid to intermediate volcanics, tuffaceous sandstone and mudstone (Kirkegaard and Murray 1970). The strata are generally flat lying, but locally

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folded. Most common lithotypes are rhyolitic and andesitic lavas, ignimbrites or ash flow tuffs with numerous breccia zones.

Rocks of the Berserker Beds are weakly metamorphosed and, for the most part, have not been subjected to major tectonic disturbance, except for normal faults and localised high strain zones that are interpreted to have developed during and after basin formation.

Recent geological work by the Queensland Department of Natural Resources and Mines places volcanic and sedimentary units of the prospective Chalmers Formation, the host unit to the Mt Chalmers copper-gold mineralisation, at the base of the Berserker Beds. The Ellrott Rhyolite and the Sleipner Member andesite were emplaced synchronously with the deposition of the Chalmers Formation.

Late Permian to early Triassic gabbroic and dioritic intrusions occur parallel to the Parkhurst Fault. Smaller dolerite sills and dykes are common throughout the region and in the Berserker Beds.

DISCUSSION

Kuroko style of mineralisation usually occurs as clusters of mineralised zones, which appears to be the case for Mt Chalmers, which may be only one of several deposits. In addition, the interpreted structural dislocation for the mine area may have caused the break-up of larger mineral bodies structurally dispersing lenses within the general Mt Chalmers area such as the Woods Shaft and Botos exploration targets which at this early stage display geochemical and lithological similarities to Mt Chalmers.

Previous companies’, including the primary explorer Geopeko, did not consistently assay full suite base metals with a significant number of historical drill holes not assayed for zinc and lead. The Company will continue to assay a full base metal suite and monitor the polymetallic results with the view to remodel the resource incorporating zinc and lead credits into the model.

QMines will expand exploration activity within the tenement package at Mt Chalmers applying systematic exploration methods designed to locate further undiscovered VHMS mineralisation.

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Figure 8: DDH001 laminated semi-massive suplhides including galena, sphalerite in talc chloritic alteration.

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ONGOING EXPLORATION ACTIVITY

• Exploration drilling at Mt Chalmers has now commenced with six of a planned thirty-hole, 3,000 metre, RC program completed and drilling is ongoing. RC drilling will be ongoing for several weeks with all drilling designed to further validate historical drillhole data and as infill drilling to be used to expand and upgrade the current resource*.

• The Company has engaged Planetary Geophysics to manage and deliver an extensive 1,800line kilometre REP-TEM airborne EM survey over the Mt Chalmers area extending both to the north-west and south-east of the Mt Chalmers mine covering an extensive area of the Berserker Beds. This survey is scheduled to commence in Q3-2021 and will be used in conjunction with all current data sets to define future potential VHMS drill targets.

• Soil testing will continue and be expanded over much larger areas with extensive soil grids utilising Niton portable handheld PAS XRF which delivers real time base metal suite analysis.

• The Company has applied for further exploration permits around Mt Chalmers extending the ground position to cover the Berserker Beds.

*The current resource for the Mt Chalmers Copper Project is located on the QMines website. It can be found in the recent QMines Prospectus in ANNEXURE A – Independent Geologists Report.

• https://qmines.com.au/prospectus 2/

COMPETENT PERSON’S STATEMENT

The information in this announcement that relates to exploration results is based on information compiled by Hamish Grant a competent person who is a member of the Australian Institute of Geoscientists (AIG). Hamish Grant is employed by QMines Limited as Project Geologist. Hamish has sufficient experience that is relevant to the style of mineralisation and type of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 edition of the JORC Code. Hamish Grant consents to the inclusion in this announcement of the matters based on his work in the form and context in which it appears.

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Table 1: Significant intercepts Mt Chalmers diamond core program March 2021 with new results shown in red text and previously release results 19 May 2021 in black text*

*Note MGA 94_56

• In reported exploration results, length weighted averages are used for any non-uniform intersection sample lengths. Length weighted average is (sum product of interval x corresponding interval assay grade), divided by sum of interval lengths and rounded to two decimal points.

• No top cuts have been considered in reporting of grade results, nor was it deemed necessary for the reporting of significant intersections.

• No metal equivalent values have been reported.

• Cut off grades used in the calculations for the significant intercepts are 0.1g/t Au, 1g/t Ag, 0.2% Cu, 0.5% Pb and 0.5% Zn.

*Downhole intersections contained in this announcement in the vertical drill holes reported, represent true widths of the assayed mineralised intersections contained in Table 1.

*Downhole intersections contained in the announcement in drill holes at 60-degree dip represent approximately 87% true width of the assayed mineralised intersections contained in Table 1.

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ABOUT QMINES

QMines Limited ( ASX: QML ) ( FSE:81V ) is a Queensland based copper and gold exploration and development company. QMines is seeking to become Australia’s first zero carbon copper and gold developer. The Company owns 100% of four advanced projects with a total area of 978km². The Company’s flagship project, Mt Chalmers, is located 17km North East of Rockhampton. The Project is a high-grade historic mine that produced 1.2Mt @ 3.6g/t Au, 2.0% Cu and 19g/t Ag between 1898-1982. Mt Chalmers has an Inferred Resource (JORC 2012) of 3.9Mt @ 1.15% Cu, 0.81g/t Au and 8.4g/t Ag.[1,2 ]

QMines’ objective is to grow its resource base, consolidate assets in the region and assess commercialisation options. The Company has commenced an aggressive exploration program (+30,000m) providing shareholders with significant leverage to a growing resource and exploration success.

DIRECTORS

ANDREW SPARKE Executive Chairman

DANIEL LANSKEY Managing Director

ELISSA HANSEN

Non-Executive Director & Company Secretary

QMINES LIMITED ACN 643 212 104

SHARES ON ISSUE

110,706,082

UNLISTED OPTIONS

4,200,000 ($0.375 strike, 3 year term)

ASX CODE

FSE CODE

QML 81V

This announcement has been approved and authorised by the Board of QMines Limited.

QMINES LIMITED

Registered Address: Suite J, 34 Suakin Drive, Mosman NSW 2088, Australia Website: www.qmines.com.au

Telephone (AUS): +61 (2) 8915 6241 Telefon (DE): +49 (0)831 930 652 43 Daniel Lanskey , Managing Director Email: dan@qmines.com.au Peter Nesvada , Investor Relations Australia Email: peter@qmines.com.au Investor Relations , Deutschland Email: investoren@qmines.com.au

Notes:

¹ Refer to the Independent Geologist Report commencing on page 84 of the Prospectus dated 16 March 2021 available at - https://qmines.com.au/prospectus 2/

2 The Company confirms that it is not aware of any new information or data that materially affects the information included in the Prospectus dated 16 March 2021 and that all material assumptions and technical parameters underpinning the resources estimates in the Prospectus dated 16 March 2021 continue to apply and have not materially changed.

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JORC Code, 2012 Edition – Table 1 Mt Chalmers Mineral Resources

Section 1 Sampling Techniques and Data

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

Criteria	JORC Code explanation	Commentary	Commentary
Sampling	• Nature and quality of sampling (e.g. cut channels, random	•	The Mt Chalmers deposit has been drilled with a combination of percussion
techniques	chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments,		drilling (“PDH” or reverse circulation drilling (“RC”)) and diamond core holes (“DD”) amounting to 382 drill holes for 15,818 metres.
	etc). These examples should not be taken as limiting the
	broad meaning of sampling.
	• Include reference to measures taken to ensure sample
	representivity and the appropriate calibration of any
	measurement tools or systems used.
	• Aspects of the determination of mineralisation that are
	Material to the Public Report.
	• In cases where ‘industry standard’ work has been done this
	would be relatively simple (e.g. ‘reverse circulation drilling
	was used to obtain 1 m samples from which 3 kg was
	pulverised to produce a 30 g charge for fire assay’). In other
	cases, more explanation may be required, such as where		• Percussion drill hole metres exclude diamond drill hole precollars.
	there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.	•	• Federation drilling included 5 abandoned precollars totalling 98.0m • Federation used RC precollars Sampling consists of either 1m intervals of chip material sub-sampled to 2kg
			for RC samples or 1m sawn or split half core samples yielding approximately
			a 3-5kg sample.
		•	Samples are then crushed and pulverized to give a 200g sample from which a
			sub-sample of 1-5g is taken for base metal analysis and a 50g charge for gold.
		•	There is no documentation concerning the analytical method used by Peko, but
			the work was completed at the Mt Morgan (“MML”) minesite laboratory and
			presumably the analysis was to industry standard for the time. The Federation
			sample prep and analysis was completed by a commercial laboratory using a
			mixture of ICP and 50g charge fire assay with atomic absorption spectroscopy
			(“AAS”) for base metals and gold, respectively.
		•	The mineralisation is considered a classic example of a Kuroko-style

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Criteria	JORC Code explanation	Commentary	Commentary
			volcanogenic massive sulphide deposit. The stratabound Cu and Au (Pb, Zn,
			Ag) mineralisation is strongly related to a combination of pyrite-rich host
			lithologies and spatial positioning relative to a central rhyolite dome.
		•	The deposit was mined in three phases: 1890 – 1912; during World War 2 and
			1979-1981 by MML
		•	In Feb 2021 QMINEScommenced drilling operations at Mt Chalmers
			Drilling 11 diamond core holes for 1575 metres
			• The company drilled PQ triple tube with diamond core sampling
			consisting of between 300mm and 1.5metre intervals of core.
			• Samples were cut with a Sandvik wet core saw yielding 1-5kg core
			samples into calico sampling bags. 4 individual calicos are placed in
			polyweave bags and sealed for delivery to the assay lab.
			• Samples are sent by road to ALS Laboratories in Brisabane, crushed,
			pulverised and riffle split delivering 200gm pulp for base metal and
			precious metal assay.
Drilling	• Drill type (e.g. core, reverse circulation, open-hole hammer,	•	Percussion drilling was with a Mayhew 1000 or a Mayhew 1500 rig with 4.5
techniques	rotary air blast, auger, Bangka, sonic, etc) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	• •	inch down hole hammer bit. For the Peko diamond drilling core sizes ranged from NQ to BQ whereas for Federation diamond drilling was mostly HQ size with some NQ where needed. Many holes were initially drilled using a percussion or RC drilling method and
			tailed with a DD hole.
		•	The vast majority of drillholes were vertical.
		•	No core orientation data is available.
		•	QMINES Feb 2021drilling was undertaken using a multi-purpose UDR 650
			track mounted rig.
		•	Coring was HQ triple tube with the core sample being oriented by DDH1
			Drilling using REFLECX ACT111 core orientation tool
Drill sample	• Method of recording and assessing core and chip sample	•	No sample recovery data is available for either the DD or the RC drilling.
recovery	recoveries and results assessed. • Measures taken to maximise sample recovery and ensure		Historical reports indicate 90% recovery from the Peko drilling except for weathered and oxide zones(these zones have been mined out).

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Criteria	JORC Code explanation	Commentary	Commentary
	representative nature of the samples.	•	No documentation of RC sampling procedures is available
	• 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.	•	Peko investigated the risk of sample bias due to loss of fines. Only a small number of samples were collected, too few for anything conclusive, but there were indications of a small preferential concentration of sulphides in the
			samples of retained drill cuttings with an associated increase in Cu, Ag and
			possibly Au grade (results for Au were reported as erratic).
		•	The drilling methods are considered to be of industry standard at the time of
			drilling and would normally have been expected to give reliable results
			suitable for resource estimation.
		•	With a lack of recovery data it is not possible to establish if there is a
			relationship between sample recovery and metal grade.
		•	QMINES Feb 2021diamond drilling core recovery was excellent with 95% of
			all core recovered.
		•	Drilling method is consistent with current industry standards with no sample
			bias and is representative in nature.
Logging	• Whether core and chip samples have been geologically and	•	All drilling was competently logged with the production of hardcopy logs and
	geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. • Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.	•	cross sections. All hardcopies had appropriate levels of information for a resource estimate to be completed. McDonald Speijers Pty Ltd (“MS”), consultant resource geologists, built the current digital database in 1995 from sighting the original drill logs and kept
	• The total length and percentage of the relevant intersections		records. John Macdonald, Principal Geologist with MS, transcribed and
	logged.		compiled some of the hardcopy data including visual verification into digital
			data.
		•	Logging consisted of a series of codes that were a mixture of quantitative and
			qualitative data.
		•	Geological information originally consisted of lithology descriptions,
			alteration, mineralisation and oxidation levels. Not all of this data is available
			in a digital format.
		•	QMINES Feb 2021diamond drilling program was competently logged by
			Company geologists with all logging data digitised electronically into
			Panansonic Toughbook.
		•	Logging codes were established prior to commencement of drilling operations
			by H & S Consultants and were a mixture of quantitative and qualitative data.

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Criteria	Criteria	JORC Code explanation	Commentary	Commentary
			•	Geological information originally consisted of lithology descriptions,
				alteration, mineralisation and oxidation levels. All data is available in a digital
				format.
			•	All core trays have been digitally photographed and store in the Company
				NAS drive.
Sub-sampling		• If core, whether cut or sawn and whether quarter, half or all	•	Peko diamond core was sampled under geological control, but generally
techniques and sample preparation		core taken. • If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. • For all sample types, the nature, quality and appropriateness of the sample preparation technique. • Quality control procedures adopted for all sub-sampling		averaged about 1m in sample length. Most of it was sampled using a mechanical core splitter with 50% taken for sample prep and assay. Some mineralised intervals were cut with a diamond saw with 50% of the interval sent to the MML laboratory at the Mt Morgan mine site for preparation and assay. No information is available about sample prep procedures used for this
		stages to maximise representivity of samples.		work.
		• Measures taken to ensure that the sampling is representative	•	Peko percussion drilling involved dry cuttings being collected via cyclones and
		of the in-situ material collected, including for instance results for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled.		riffled to give a sample of about 2 kg for submission to the laboratory. The RC samples were submitted to the MML laboratory at the Mt Morgan mine site for preparation and assay. No information is available about sample prep procedures used for this work.
			•	Wet samples were collected in 2 ways. In the West Lode area samples were
				collected in a fine gauze catcher and mixed on a groundsheet before being
				coned and quartered. Sample intervals ranged from 1-2m. This sample
				collection method would have led to large losses of fines. In the Main Lode area
				wet samples were collected in half 44-gallon drums and transferred to hessian
				bags. When dry they were riffle split. This was a better method, but fines would
				still have been lost when water flows were high and the collecting drum
				overflowed.
			•	The larger core from the 1995 Federation diamond holes was logged and
				mineralised intervals were selected on the basis of visual assessment. Quarter
				core samples (HQ core size) were collected using a diamond saw with the
				samples sent for sample prep and assay.
			•	The Federation core samples were submitted to Australian Laboratory Services
				P/L for preparation at their Rockhampton facility and assay at their Townsville
				laboratory. The samplepreparation scheme involvedjaw crushingto an

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Criteria		JORC Code explanation	Commentary	Commentary
				unknown size followed	by pulverisation of the total sample in a Labtechnics
				LM5 mill to a nominal 90% passing -75um.
			•	A barren quartz flush was used after each set of sulphide-rich samples at an
			unknown insertion ratio.
			• QMINES Feb 2021 recovereddiamond core was cut using a Sandvik core
			cutting wet saw.
			• Core was cut in half for submission with duplicates cut in quarters
			•	ALS Laboratories dry core, crush and grind to 200gm pulp sample to a nominal
				90% passing 75um.
			•	Theground sample is riffle split to			an appropriate representative sample size.
Quality	of	• The nature, quality and appropriateness of the assaying and	•	Peko samples were submitted		to the MML laboratory at the Mt Morgan mine
assay data and laboratory tests		laboratory procedures used and whether the technique is considered partial or total. • For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times,	•	site for analysis. No technical details have been located regarding sample preparation procedures or assaying methods. The Mt Morgan operation has since shut down and the laboratory no longer operates. Federationinitially used an ICP method (1C587) for Cu, Pb, Zn, S, Ag, As, Ba,
		calibrations factors applied and their derivation, etc.		Fe and Mn. After about the first 3-4 batches of samples the laboratory
		• Nature of quality control procedures adopted (e.g. standards,		introduced an AAS method (A101) to check Cu, Pb, Zn and Ag assays for
		blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	•	higher grade samples. Fire assaying of a 50g charge with an AAS finish (PM209) was used for gold. Peko submitted 352 samples for check assaying to Australian Laboratory
				Services (ALS) in Brisbane on a regular basis during their drilling programmes,
				although results for Au, Ag and Pb in particular were not always available. The
				drill logs recorded the	results for these "duplicates" and MS were able to
				compile and analyse. They concluded there was no significant bias for Cu, Au,
				Ag and Zn. However,	there	was	a significant positive bias with the check
				laboratory for Pb but this was not significant for the resource as Pb is not
				treated as an economic commodity. The MML silver results were adjudged to
				have poor precision but for relatively low silver values.
			•	Federation undertook check		assaying at an independent laboratory but the
				results are not available.
			•	There are no reports from any of			the drilling campaigns of any standards
				being used to assess the accuracy of the analysis.

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Criteria	Criteria	JORC Code explanation	Commentary	Commentary	Commentary
			•	Despite the lack of documentation describing the analytical methods and the
				lack of QAQC it is reasonable to assume that the analysis was to an industry
				standard for the time and that the results would			be reasonable, especially for
				the level of classification of the resource estimate.
			•	QMINES Feb 2021samples for assay were submitted to ALS Laboratories in
				Brisbane.
			•	ALS base metal suite MEICP 61 four acid digest assay method for Ag, As, Ba,
				Cu, Pb, S and Zn was used with AA25 fire assay method with a 30gm				pulp for
				Au with the sample prep and base metal suites being undertaken in Brisbane
				and Fire Assay being shipped to ALS in Townsville.
			•	The Company submits batches to ALS from drill programs as they				come to
				hand
			•	There is no significant bias in assayed results from duplicates assayed
			•	Standards and blanks are inserted at regular intervals with suitable standards
				being supplied by GEOSTATS, duplicates are			cut at acceptable industry
				standard establishing suitable levels of accuracy.
			•	QAQC reports are delivered by ALS with certification of assay method used
				and certified assay results. These results are delivered to the project Geologist,
				Drill	hole data base manager and the Company.
Verification		• The verification of significant intersections by either	•	No drillhole intersections have been viewed by QMines or H&SC.
of and	sampling assaying	independent or alternative company personnel. • The use of twinned holes. • Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. • Discuss any adjustment to assay data.	• •	QMines has cross checked selected data, while building a new geological database, based on scanned open files held by the Queensland Dept of Mines, all drillhole collars were checked and random drill logs checked. No issues were noted. No twin holes have been drilled
			•	QMines state that all available data was compiled and verified				by John
				Macdonald, Principal Geologist with McDonald Speijers Pty Ltd and
				documented in “MOUNT CHALMERS DEPOSIT UPDATED MINERAL
				RESOURCE ESTIMATE & REVIEW OF ASSOCIATED DATA COLLECTION
				PROCEDURES”
			•	John	Macdonald used a complete set of original		drill logs, plus mine records
				which at the time were available at the MML mine site offices.
			•	There is no documentation of anyadjustment		to the data that has included

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Criteria		JORC Code explanation	Commentary	Commentary
				inserting half lower detection limit values into the database, insertions of blank
				values where no sample recorded etc.
			•	QMINES Feb 2021significant intersections have been validated by the
				Company’s project geologist.
			•	A number of historical holes have been twinned as part of the validation
				process of historical data.
			•	Documentation and digitisation of historical data has been undertaken by Lisa
				Orr of Orr and Associates the Company geological data base manager with all
				historical data verified. Drill hole data base is stored in an Access database and
				housed independently in an external NAS drive and backed up in a cloud
				storage system.
Location	of	• Accuracy and quality of surveys used to locate drill holes	•	The earliest grid shown on plans was an exploration grid established by CEC
data points		(collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. • Specification of the grid system used. • Quality and adequacy of topographic control.	•	which originated at the North Shaft, which was assigned coordinates of zero for both easting and northing. Peko subsequently established a mine grid, again using the North Shaft as the origin, which was assigned coordinates of 5000mE & 5000mN. A network of
				local control stations was set out by MML staff surveyors.
			•	All previous data (such as drill collar locations) were converted by Peko to
				mine grid which appears to have been used consistently for both exploration
				and production work.
			•	Control points for the Peko mine grid survive and this grid was also used for
				all Federation and MS work. A Rockhampton based surveyor (R E Harris) who
				previously worked as a mine surveyor on the project with MML conducted all
				surface surveys for Federation.
			•	Local mine control survey points are still in existence, and these have been re-
				surveyed by QMines using a Differential Global Positioning System.
			•	QMines has converted the Local Grid to GDA94 zone 56 grid using ArcGIS
				software, using a combination of local mine control survey points and
				landmarks.
			•	The current topography was defined using a photogrammetric survey
				conducted by Capricorn Survey Consultants Pty Ltd on behalf of Federation in
				May-June 1995. This was based on photography flown in November 1992 and

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Criteria	JORC Code explanation	Commentary	Commentary
			used ground controls established by MML in the 1970's to provide a tie in
			between AMG and mine grid coordinates.
		•	Pre-open pit topography was available as photogrammetric contour plans
			dated November 1978, generated by Geo-Spectrum (Aust) for MML. These
			were presented at 1:500 and 1:1000 scale over the mine area with contour
			intervals of 1m and 2m, respectively. They were apparently based on
			photography flown in 1973.
		•	MS digitised the 1:1000 scale plan over the area of the resource model to allow
			volumes to be estimated for the Peko pit and for subsequent excavations at the
			south end of the pit, pit backfill and surface dumps
		•	Percussion holes, which make up 73% of the total number of holes available,
			were not surveyed downhole. However, it should be noted that virtually all of
			them were vertical and are considered by QMines to have had very limited
			deviation.
		•	For pre-Federation diamond drill holes, logs and sections only showed
			evidence of down hole surveying for 1 hole but the survey details are not
			recorded in the log. The remainder of the diamond drill holes are assumed not
			to have been surveyed downhole.
		•	Federation drill holes were surveyed at intervals of approximately 50m using
			an Eastman single shot borehole survey camera supplied by the drilling
			contractors.
		•	QMines have assumed that all pre-1995 holes were straight, simply using the
			recorded collar bearings and dips for downhole surveys. This will no doubt
			result in some errors in the 3D location of samples, but since hole depths are
			typically about 50-150m and most holes are vertical into flat-dipping rocks,
			serious hole deviations are not expected to have been common.
		•	QMINES Feb 2021have implemented a complete conversion of all historical
			drill collar surveys and local gridding utilised be previous explorers with local
			mine surveyors undertaking the conversion with the local work being
			validated by MINECOMP Surveying.
		•	Conversion from local grid to GIS MGA 94 Zone 56.
		•	All drill hole collars are picked up by and validated the site surveyors.
		•	The Company has flown a new Digital Terrain Model (DTM) using drone

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Criteria	Criteria		JORC Code explanation	Commentary	Commentary
					survey technology to deliver the survey.
				•	The quality and accuracy of the DTM has been validated and processed
					independentlyof the data capture byMINECOP Surveying.
Data spacing			• Data spacing for reporting of Exploration Results.	•	The Peko drilling was initially on a nominal pattern of 40m x 40m which was
and distribution			• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied.	•	subsequently infilled to a nominal 20m x 20m over most of the deposit, but with considerable local variation in hole spacings. Federation locally infilled or extended the 40m x 40m pattern, but on an irregular basis because of the access difficulties presented by the water-filled
					open pit.
				•	At the northern end of the stringer zone where the mineralisation becomes
					deeper the pattern ranges from about 40m x 40m to 40m x 80m.
				•	Downhole sampling was at 1m intervals.
				•	The data point spacing is appropriate for the use in generating Mineral
					Resources at the appropriate levels of confidence.
				•	No sample compositing has been undertaken.
				•	QMINES Feb 2021maiden diamond drill program is designed to validate
					historical drill hole data.
				•	Line and drill hole spacing is not applicable
				•	No composite samplinghas been applied
Orientation			• Whether the orientation of sampling achieves unbiased	•	The deposit is generally flat-lying and virtually all drillholes are vertical thus
of data relation geological structure		in to	sampling of possible structures and the extent to which this is known, considering the deposit type. • If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and	•	giving a good intersection angle with the mineralisation. There is no obvious sampling bias with the drilling orientation.
			reported if material.
Sample			• The measures taken to ensure sample security.	•	There is no documentation describing the process of securing samples at site
security					and their transportation to the laboratory.
				•	QMINES Feb 2021samples are cut onsite by Company workers, inserted into
					individual numbered calico sample bags then 4 calico bags are inserted into
					polyweave bags. Polyweave bags are numbered in sequence.
				•	Samples are then delivered by Company staff to Centurion Freight
					Rockhampton, loaded into bulka bags and shipped directly to ALS Laboratory
					Brisbane overnight.

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Criteria		JORC Code explanation	Commentary	Commentary
Audits	or	• The results of any audits or reviews of sampling techniques	•	MS essentially completed an audit of the sampling techniques with the 2005
reviews		and data.		Mineral Resources. The audit concluded that “After extensive validation and
				editing MS are satisfied that the drill hole database files	used for resource
				estimation are reasonably complete and free of serious	errors, within the
				practical limitations imposed by the age of some of the data”.
			•	QMINES Feb 2021sampling techniques have been established by the
				Company Project Geologist. Results are reviewed and	validated by the
				Company database geology manager.
			•	Exploration results are not audited independently

Section 2 Reporting of Exploration Results

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

Criteria		JORC Code explanation	Commentary	Commentary
Mineral		• Type, reference name/number, location and ownership	•	QMines Pty Ltd has two 100% owned subsidiaries, Dynasty Gold Pty Ltd and
tenement	and	including agreements or material issues with third parties		Rocky Copper Pty Ltd, through which the Company has a 100% beneficial
land status	tenure	such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.		interest in the Mt Chalmers Project. The Mt Chalmers Project is held in EPM 25935 and EPM 27428 located 25 kilometres east of the City of Rockhampton in coastal central Queensland, Australia. The project covers an area of historic gold
		• The security of the tenure held at the time of reporting along		and copper mining, which comprises an area of 198 km2.
		with any known impediments to obtaining a licence to	•	The Project is free and unencumbered by either joint ventures or any other
		operate in the area.		equity participation of the tenement.
			•	QMines has yet to negotiate any landowner provisions or Government royalties
				or yet to commence environmental studies within the project area. Currently the
				Queensland Department of Natural Resources & Mines is conducting
				remediation works on minor acid mine waste draining from a mineralised
				mullock dump.
			•	All the tenements are for “all minerals” excepting coal.
			•	Note that the granted tenements allow QMines to carry out many of their
				planned drilling programs under relevant access procedures applying to each
				tenement.

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Criteria	JORC Code explanation	Commentary	Commentary
		•	All the EPMs are subject to the Native Title Protection Conditions with respect
			to Native Title.
		•	Declared Irrigation Areas, Declared Catchment Areas, Declared Drainage
			Areas, Fossicking areas and State Forest, are all land classifications that restrict
			exploration activity. These are not affecting QMines’ main prospects but may
			have impact on regional programs in places.
		•	All annual rents and expenditure conditions have beenpaid and fullycompliant
Exploration	• Acknowledgment and appraisal of exploration by other	•	CEC and Peko are generally recognised as competent companies using
done by other parties	parties.	•	appropriate techniques for the time. Written logs and hardcopy sections are considered good. Federation was a small explorer that was entirely focussed on defining the Mt
			Chalmers resource. They used a very competent geologist, Alex Taube, for the
			drilling programme. Alex Taube is widely respected for his knowledge about
			VHMS deposits in NorthQueensland.
Geology	• Deposit type, geological setting and style of mineralisation.	•	The Mt Chalmers mineralisation is situated in the early Permian Berserker Beds,
			which occur in the fault-bounded Berserker Graben, a structure 120km long and
			up to 15km wide. The graben is juxtaposed along its eastern margin with the
			Tungamull Fault and in the west, with the Parkhurst Fault.
		•	The Berserker Beds lithology consists mainly of acid to intermediate volcanics,
			tuffaceous sandstone and mudstone, (Kirkegaard and Murray 1970). The strata
			are generally flat lying, but locally folded. Most common are rhyolitic and
			andesitic lavas, ignimbrites or ash flow tuffs with numerous breccia zones.
			Rocks of the Berserker Beds are weakly metamorphosed and, for the most part,
			have not been subjected to major tectonic disturbance, except for normal faults
			that are interpreted to have developed during and after basin formation.
		•	Late Permian to early Triassic gabbroic and dioritic intrusions occur parallel to
			the Parkhurst Fault. Smaller dolerite sills and dykes are common throughout
			the region and the Berserker Beds.
		•	Researchers have shown that the Mt Chalmers mineralisation is a well-
			preserved, volcanic-hosted massive-sulphide (“VHMS – Kuroko style”)
			mineralised system containing zinc, copper, lead, gold and silver. Mineral
			deposits of this type are syngenetic and formed contemporaneouslyon, or in

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Criteria	JORC Code explanation	Commentary	Commentary
			close proximity to, the sea floor during the deposition of the host-rock units
			deposited from hydrothermal fumaroles, direct chemical sediments or
			replacements (massive sulphides), together with disseminated and stringer
			zones within these host rocks.
		•	The oldest rocks in the area, the 'footwall sequence' of pyritic tuffs, are seen only
			in the Mt Chalmers open pit and in drill holes away from the mine. The rock is
			usually a light coloured eutaxitic tuff with coarse fragments, mainly of chert,
			porphyritic volcanics and chloritic fiamme (fiamme are aligned, “flame-like”
			lenses found in welded ignimbrite and other pyroclastic rocks and indicate
			subaerial deposition. Eutaxitic texture, the layered or banded texture in this
			unit, is commonly caused by the compaction and flattening of glass shards and
			pumice fragments around undeformed crystals). The alteration (silicification,
			sericitisation and pyritisation) of this basal unit becomes more intense close to
			mineralisation.
		•	The 'mineralised sequence' overlying the 'footwall sequence' consists mainly of
			tuffs, siltstones and shales and contains stratiform massive sulphide
			mineralisation and associated exhalites: thin barite beds, chert and occasionally
			jasper, hematitic shale and thin layers of bedded disseminated sulphides.
			Dolomite has been recorded in the mineralised sequence close to massive
			sulphides. This sequence represents a hiatus in volcanic activity and a period of
			water-lain deposition.
		•	The 'hanging wall sequence' is a complex bedded series of unaltered crystal and
			lithic rhyolitic tuffs and sediments with breccia zones and occasional chert and
			jasper.
		•	A mainly conformable body of andesite, ranging from 10m to 250m thick,
			intrudes the sequence; it usually occurs just above the ‘mineralised sequence’.
			A quartz-feldspar porphyry body intrudes the volcanic sequence and in places
			intrudes the andesite.
		•	The rocks in the mine area are gently dipping, about 20oto the north in the Main
			Lode mine area and similarly dipping south at the West Lode: the predominant
			structure is a broad syncline trendingnorth-north-west. Slatycleavage is

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Criteria		JORC Code explanation	Commentary	Commentary
				strongly developed in some of the rocks, notably in sediments and along fold
				axes. Such cleavage is prominent in areas close to the mineralisation.
			•	Doming of the rocks close to the mineralisation has been interpreted by detailed
				work in the open cut to be largely due to localised horst block-faulting (Taube
				1990), but the doming might also be a primary feature in part. Steep dips are
				localised and usually the result of block faulting. The Main Lode outcrop and
				West Lode outcrop are variably silicified rocks which, by one interpretation,
				may have been pushed up through overlying rocks in the manner of a Mont
				Pelée spine (Taube 1990), but in any case, form a dome of rhyolite / high level
				intrusions of the Ellrott Rhyolite. The surrounding mineralised horizon is
				draped upon the flanks of domal structures.
Drill	hole	• A summary of all information material to the understanding	•	Exploration Results are reported in the body of the relevant announcements in
Information		of the exploration results including a tabulation of the following information for all Material drill holes:		Table 1
		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 Competent
		Person should clearly explain why this is the case.
Data		• In reporting Exploration Results, weighting averaging		• QMINES Feb 2021
aggregation methods		techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.		• In reported exploration results, length weighted averages are used for any non-uniform intersection sample lengths. Length weighted average is (sum product of interval x corresponding interval assay grade), divided by sum
		• Where aggregate intercepts incorporate short lengths of high		of interval lengths and rounded to two decimal points.
		grade results and longer lengths of low grade results, the		• No top cuts have been considered in reporting of grade results, nor was it
		procedure used for such aggregation should be stated and		deemed necessary for the reporting of significant intersections.
		some typical examples of such aggregations should be		• No metal equivalent values have been reported.

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Criteria		JORC Code explanation	Commentary
		shown in detail.	• Mt Chalmers VHMS is a polymetallic base and precious metal mineral
		• The assumptions used for any reporting of metal equivalent	system, cut off grades used by the Company in calculating mineralized
		values should be clearly stated.	intersections are 3000ppm Cu, 0.1ppm Au and 1ppm Ag.
Relationship		• These relationships are particularly important in the reporting	• QMINES Feb 2021
between		of Exploration Results.	• At Mt Chalmers, the drilling has generally intersected the mineralisation at high
mineralisation widths and		• If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported,	angles. • The majority of holes drilled at Mt Chalmers Copper Project are vertical in nature.
intercept		there should be a clear statement to this effect (e.g. ‘down	• Holes drilled on 60 degree dip are reported in the Significant intercept table.
lengths		hole length, true width not known’).	True widths in 60 degree dip are not reported. True Width is approximately 87%
			of the down hole intersection.
Diagrams		• Appropriate maps and sections (with scales) and tabulations	• Maps, sections, mineralised intersections, plans and drill collar locations are
		of intercepts should be included for any significant discovery	included in the body of the relevant announcement.
		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 Exploration Results is	• Table 1 in the body of the announcement
reporting		not 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	• CEC and Peko completed some brownfields exploration to assist with defining
substantive		reported including (but not limited to): geological	the resource including Induced Polarisation surveys and Sirotem
exploration	data	observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment;	(electromagnetic method) surveys. • Federation concentrated on defining the resource estimates.
		metallurgical test results; bulk density, groundwater,	• No other exploration data is considered meaningful at this stage.
		geotechnical and rock characteristics; potential deleterious
		or contaminating substances.
Further work		• The nature and scale of planned further work (e.g. tests for	• Infill and resource expansion drilling is planned to upgrade and potentially
		lateral extensions or depth extensions or large-scale step-	expand the resource estimates.
		out drilling).
		• Diagrams clearly highlighting the areas of possible
		extensions, including the maingeological interpretations and

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Criteria	JORC Code explanation	Commentary
	future drilling areas, provided this information is not
	commercially sensitive.

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Notes:

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