RAGNAR METALS LIMITED — Capital/Financing Update 2014

May 20, 2014

ASX Announcement 21 May2014

Program Reveals Abundant Gold – Seimana, Guinea

• Continuing field programs successfully reveal abundant gold of good grade across a remarkable 17 'Priority A' clusters
• Final batch of surface rock gold assays up to 5.0 g/t Au – previous assays up to 70.8g/t
• Preliminary soil sampling outlined strong and extensive gold-in-soil anomalies
• Drill program planned and approved, pending funding

Drake's initial field programs on recently granted Exploration Permits on its Seimana Project in Guinea has now concluded and latest results continue to reveal an emerging and significant gold discovery (fig 1). Key observations from this first programme of mapping and sampling include:

• The abundance of ancient and modern artisanal gold mine workings: Thousands of individual pits have been mapped, occurring in some 55 clusters. Of these, 42 artisanal mine clusters have clearly mined quartz veins, the remainder being alluvial (streams) or eluvial (soils). (Refer Figure 2)
• The extent of many of the artisanal sites: Seventeen of the clusters have been classified as Priority A sites (having workings over a strike length of at least 100 metres and width of 10 metres) with a further 19 clusters rated Priority B (having many shafts but less extensive than Priority A)
• The strength and extent of gold values in soils: Four sites were selected for preliminary soil sampling to test its effectiveness in defining mineralisation. At the largest site, Fouwa almost 20% of the area returned +0.1 g/t gold – unusually high for soil values. (See Figure 6)
• No prior exploration: There is no evidence of prior exploration and certainly no previous drilling, within the permit area
• Potential for more discovery: The area is one of very poor outcrop suggesting that other occurrences remain undetected
• Exceptional multi-million ounce gold belt: including the Siguiri and Tri-K deposits (fig 4).

Field Program Vein Sampling

Field mapping activities during 2014 were aimed principally at accurately defining known artisanal gold workings, both old and current, and in sampling quartz veining in and around the artisanal workings. The vein sampling returned many high grade values, with values of +5 g/t gold being returned in 12 separate mineralised clusters. Previously announced1 grab samples collected produced a considerable amount of individually spectacular gold assays including –

70.8g/t	42.9g/t	29.4g/t	26.7g/t	15.8g/t	15.1g/t
15.1g/t	13.1g/t	10.9g/t	9.9g/t	9.2g/t	7.9g/t

Drake's CEO Jason Stirbinskis said "It is most unusual that a short 3, month programme of mapping and sampling can identify so many gold occurrences, many of them with very high gold grades in quartz veining. Several of the significant priority targets are over 500m long as defined by current and historic workings and these are spread across the 18km width of the new tenements. The extensive areas of high gold in soil values suggest potential for additional large areas of near surface low grade gold that may be amenable to heap leaching, as has recently been announced by Avocet Mining at their 3Moz Tri-K deposit2 7 kilometres to the south.

Drake's original Seimana tenements which adjoin to the north and west also have gold anomalous zones defined by termite and soil sampling that extends the length of the gold mineralised belt within Drake's licences to over 20 km. This area has the potential to be a significant world class gold discovery".

Next Steps

Drake has planned and approved a 2000m RC drilling program to commence immediately, subject to funding.

About Seimana

The region in and around modern day Guinea has for at least several hundreds of years been a significant producer of gold (to the extent that during the 1600s England even named its currency unit after it.).The Seimana project is a very exciting, highly prospective gold prospect with the following attributes

• Multiple mineralised sites with strong gold values suggests a very favourable geological setting.
• Many individual mineralised sites are over 500 metres long, as defined by former and current artisanal mine workings. Given that the area is one of very poor outcrop, there is excellent potential for the discovery of additional mineralised zones.
• Field programs carried out by Drake on the original Seimana parcel and recently acquired Seimana extension have identified numerous strongly gold anomalous zones
• Regional geological analysis by Drake in January 2014 consolidated the geological interpretation that mineralisation is associated with NW trending geological structures and with intersecting regional scale Birrimian structures, in common with other known gold deposits within this strongly mineralised belt (Fig 4). Located within 150 kilometres of Drake's project are the major deposits of Siguiri (AngloGold) and Lero. Other substantial (+1 million ounce) deposits within 100 kilometres are Koulekoun, Kouroussa, Kiniero, Mansounia, Kodieran, Yanfolia, and Kalana.

Drake recently completed a rights Issue3 . Expressions of interest in participating in the shortfall4 , from the Rights Issue can be directed to Jacek Szymenderski at Drake Resources. jacek@drakeresources.com.au

1: See announcement 29/4/14 "Further Spectacular Gold Assays Seimana Project" http://drk.live.irmau.com/IRM/Company/ShowPage.aspx/PDFs/1430-63890073/FurtherSpectacularGoldAssaysSeimanaProject

2: Source - Avocet website http://www.avocet.co.uk/guinea.html

3: See announcement 13/5/14 "Non Renouceable Rights Offer Closure Notice of Shortfall" http://drk.live.irmau.com/IRM/Company/ShowPage.aspx/PDFs/1438- 12969430/NonRenounceableRightsOfferClosureNoticeofShortfall

4: The Shortfall shall be placed at the discretion of the Company. The Company reserves the right to allot to an Applicant a lesser number of Shortfall Securities than the number for which the Applicant applies or to reject an application. Please refer to the prospectus for further detail

Figure 1: Significant gold assay results (>2.5g/t Au) from recent rock chip sampling - includes previously announced results

Figure 2: Artisanal gold mines.

Photo: The Fouwa target at Seimana is one of the Category A targets planned to be drilled.

Figure 3: Drake's Seimana permits contain numerous artisanal workings many of which align with North-West trending structures regionally associated with gold occurrences

Figure 4: Regional Setting: Seimana lies within the prolifically mineralised West African gold province that has yielded a steady stream of gold discoveries over the past decade

Figure 5: Drake's West African assets are the Seimana Project in Guinea and the Tasiast South project in Mauritania.

Figure 6: Fouwa Prospect Gold in Soil. Note extensive areas of +0.1 g/t (+100 ppb). Fouwa is just one of the category A targets identified within Drake's Seimana Prospects

	Table 1: SEIMANA PROJECT ROCK CHIP SAMPLES
					ASSAY REULTS –			to MAY 2014
SampleId	Auppm	EastingWGS84Z29N	NorthingWGS84Z29N		SampleId	Auppm	EastingWGS84Z29N	NorthingWGS84Z29N	SampleId	Auppm	EastingWGS84Z29N	NorthingWGS84Z29N
SM1064	70.9	499764	1201870		SM2134	0.4	509689	1202968	SM2082	0.1	514587	1201632
SM1140	42.9	512033	1205073		SM1214	0.4	512407	1205085	SM2093	0.1	513695	1198728
SM1059	29.4	501383	1205724		SM2087	0.4	513863	1198852	SM2160	0.1	510445	1203206
SM1081	26.7	513749	1203867		SM1190	0.4	510350	1202679	SM1124	0.1	510511	1205359
SM1082	15.8	513740	1203892		SM1110	0.4	513018	1204000	SM1219	0.1	509922	1209690
SM1063	15.1	499776	1201869		SM1184	0.3	510241	1202880	SM2074	0.1	513852	1202564
SM2096	15.1	513539	1199633		SM1004	0.3	511145	1202491	SM1198	0.1	511608	1202444
SM2047	13.1	498634	1198811		SM1006	0.3	511083	1202596	SM1220	0.1	510014	1209660
SM2085	10.9	513969	1198800		SM1012	0.3	511002	1202249	SM1130	0.1	498614	1198780
SM1178	9.9	509682	1202969		SM1013	0.3	510995	1202241	SM1226	0.1	509961	1209724
SM1107	9.2	513029	1203935		SM1031	0.3	510497	1203015	SM2216	0.1	511204	1202217
SM2083	7.9	514634	1201672		SM2023	0.3	513655	1206683	SM1215	0.1	512433	1205067
SM1156	7.3	514056	1198812		SM2051	0.3	511188	1208848	SM2107	0.1	510497	1205392
SM1057	6.4	501294	1205543		SM2058	0.3	511154	1208906	SM1128	0.1	498475	1198819
SM1008	5.7	511232	1202555		SM2061	0.3	504858	1207225	SM1152	0.1	513521	1200453
SM2044	5.1	498508	1198810		SM2071	0.3	504346	1204108	SM2144	0.1	510507	1202978
SM1205	5.0	509583	1204727		SM2182	0.3	511206	1202460	SM1101	0.1	513665	1206663
SM1227	4.8	510005	1209775		SM1174	0.3	514714	1201648	SM2196	0.1	510941	1202183
SM1052	4.7	504416	1206171		SM2092	0.3	513787	1198838	SM1104	0.1	513686	1206611
SM2190	3.8	511020	1202276		SM1126	0.3	510562	1204941	SM1162	0.1	513703	1198820
SM1046	3.8	510408	1209107		SM2168	0.3	511201	1203935	SM2223	0.1	508587	1199548
SM1051	3.8	504436	1206073		SM2195	0.3	510954	1202177	SM1129	0.1	498508	1198906
SM2035	3.8	513752	1203869		SM2205	0.3	511021	1202191	SM1135	0.1	498678	1198822
SM2172	3.8	509540	1204760		SM2122	0.3	508078	1202514	SM1224	0.1	510009	1209715
SM1099	3.7	513563	1206625		SM1091	0.3	513435	1205815	SM1151	0.1	513574	1200424
SM2015	3.6	513659	1206548		SM2211	0.3	510902	1202214	SM2197	0.1	510927	1202186
SM1206	3.6	511415	1203880		SM1083	0.3	513717	1203902	SM2201	0.1	511015	1202134
SM1161	3.5	513705	1198846		SM1160	0.3	513773	1198844	SM2112	0.0	510578	1205340
SM2084	3.4	514706	1201602		SM1150	0.3	506056	1208033	SM1088	0.0	513513	1203793
SM2005	3.3	510566	1204932		SM2149	0.2	510447	1203435	SM2161	0.0	510485	1203192
SM2046	3.3	498634	1198843		SM1117	0.2	510600	1205265	SM2164	0.0	511386	1203874
SM2081	3.3	513971	1202475		SM2194	0.2	510970	1202182	SM1095	0.0	513656	1206550
SM2006	3.2	510576	1209123		SM2169	0.2	511191	1203949	SM2135	0.0	510352	1202682
SM1171	3.1	514029	1202431		SM1187	0.2	510434	1202933	SM2154	0.0	510416	1203375
SM1200	3.0	509537	1204761		SM2193	0.2	510989	1202239	SM1166	0.0	513836	1202585
SM2191	2.9	511007	1202274		SM2079	0.2	513958	1202541	SM1100	0.0	513584	1206546
SM2052	2.9	511200	1208857		SM1204	0.2	509463	1204785	SM1210	0.0	511148	1203910
SM1203	2.9	509517	1204786		SM2094	0.2	513675	1198751	SM2127	0.0	508670	1202491
SM1201	2.8	509526	1204786		SM1010	0.2	511187	1202443	SM2158	0.0	510370	1203250

SM2080	2.8	513941	1202481	SM1033	0.2	510267	1209424	SM2206	0.0	510945	1202242
SM1183	2.7	510275	1202897	SM1034	0.2	510234	1209480	SM2173	0.0	513621	1199974
SM2038	2.7	513483	1203892	SM1035	0.2	510182	1209465	SM2202	0.0	510973	1202145
SM2132	2.7	509682	1202829	SM1042	0.2	511163	1208828	SM2203	0.0	511051	1202167
SM2165	2.7	511415	1203884	SM1044	0.2	511154	1208854	SM1153	0.0	513492	1200466
SM1024	2.6	510419	1203420	SM1061	0.2	501589	1203708	SM1222	0.0	510052	1209722
SM1055	2.6	501319	1205593	SM1067	0.2	499783	1202331	SM2170	0.0	509334	1205019
SM2140	2.6	510275	1202894	SM1212	0.2	511197	1203971	SM1176	0.0	514679	1201421
SM1157	2.5	514077	1198764	SM2003	0.2	511758	1202460	SM2200	0.0	511024	1202126
SM2036	2.5	513441	1203912	SM2016	0.2	513651	1206562	SM2072	0.0	504364	1204104
SM1179	2.5	509687	1202975	SM2017	0.2	513633	1206589	SM2217	0.0	511202	1202199
SM2192	2.4	511000	1202256	SM2020	0.2	513698	1206600	SM1149	0.0	506085	1208007
SM1138	2.4	512020	1205070	SM2021	0.2	513700	1206661	SM1092	0.0	513749	1205964
SM2077	2.4	513949	1202563	SM2032	0.2	513657	1203917	SM1120	0.0	510446	1205206
SM2068	2.3	511230	1207456	SM2069	0.2	511233	1207525	SM1193	0.0	511621	1202513
SM1123	2.3	510546	1205408	SM2123	0.2	508084	1202525	SM1122	0.0	510494	1205397
SM2088	2.2	513853	1198868	SM2166	0.2	511389	1203860	SM2174	0.0	513626	1199996
SM1048	2.2	510571	1209126	SM2090	0.2	513876	1198813	SM2222	0.0	511174	1202241
SM1056	2.2	501308	1205558	SM1185	0.2	510278	1202906	SM1142	0.0	512141	1204589
SM2133	2.2	509683	1202966	SM2108	0.2	510511	1205405	SM2215	0.0	511209	1202202
SM1155	2.1	513977	1198809	SM1188	0.2	510464	1202841	SM1125	0.0	510566	1204935
SM1175	2.1	514794	1201408	SM1213	0.2	512331	1205035	SM1189	0.0	510484	1202821
SM2033	2.0	513695	1203907	SM1182	0.2	510272	1202884	SM1192	0.0	511604	1202512
SM2057	2.0	511257	1208857	SM1103	0.2	513700	1206655	SM2102	0.0	513525	1200450
SM1172	1.9	514608	1201644	SM1165	0.2	513861	1202573	SM2204	0.0	511041	1202180
SM1020	1.9	510974	1202181	SM1211	0.2	511207	1203937	SM2139	0.0	510237	1202881
SM1058	1.9	501318	1205589	SM1218	0.2	509913	1209794	SM2176	0.0	510934	1203058
SM1084	1.8	513708	1203901	SM2101	0.2	513540	1200435	SM1096	0.0	513645	1206569
SM2086	1.7	513976	1198792	SM1139	0.2	512026	1205072	SM1137	0.0	498656	1198847
SM1011	1.7	511287	1202349	SM2091	0.2	513837	1198813	SM1207	0.0	511386	1203877
SM2078	1.6	513963	1202567	SM2103	0.2	513521	1200452	SM2214	0.0	511212	1202190
SM2146	1.6	510499	1203012	SM2189	0.2	511144	1202492	SM1086	0.0	513648	1203869
SM2106	1.6	510536	1205399	SM2138	0.2	510260	1202854	SM2167	0.0	511374	1203809
SM2008	1.5	510423	1209125	SM2104	0.2	510541	1205421	SM2180	0.0	511150	1202444
SM2150	1.5	510430	1203422	SM2188	0.2	511142	1202474	SM1097	0.0	513642	1206561
SM1136	1.5	498662	1198842	SM2208	0.1	510911	1202261	SM1121	0.0	510434	1205195
SM1001	1.4	511137	1202445	SM1163	0.1	513697	1198728	SM1191	0.0	510299	1202836
SM2185	1.3	511182	1202487	SM2143	0.1	510468	1202964	SM1146	0.0	506094	1207923
SM1216	1.3	512451	1205087	SM2209	0.1	510903	1202243	SM1094	0.0	513668	1206536
SM2184	1.2	511193	1202487	SM2147	0.1	510483	1203012	SM1197	0.0	511681	1202553
SM1105	1.2	513189	1203857	SM2151	0.1	510416	1203419	SM1196	0.0	511686	1202559
SM1202	1.2	509528	1204780	SM1141	0.1	511964	1204798	SM2095	0.0	513579	1199981
SM2183	1.2	511204	1202483	SM1147	0.1	506078	1208002	SM2125	0.0	508671	1202529
SM1074	1.2	504862	1207227	SM2198	0.1	510920	1202177	SM2220	0.0	511180	1202221

SM2152	1.2	510411	1203416	SM1143	0.1	506053	1207965	SM1145	0.0	506131	1207929
SM1127	1.1	510575	1204936	SM2117	0.1	510779	1207825	SM2156	0.0	510430	1203287
SM2076	1.0	513926	1202555	SM1109	0.1	513040	1203939	SM2218	0.0	511196	1202203
SM2113	1.0	510565	1205296	SM1223	0.1	510032	1209744	SM1195	0.0	511639	1202522
SM1180	1.0	509687	1202841	SM2163	0.1	510472	1203219	SM1131	0.0	498598	1198795
SM2179	1.0	511137	1202446	SM1186	0.1	510299	1202943	SM2178	0.0	510915	1203057
SM1115	1.0	510575	1205283	SM1114	0.1	510559	1205300	SM1194	0.0	511632	1202524
SM2111	1.0	510550	1205352	SM1090	0.1	513525	1203933	SM1144	0.0	506161	1207898
SM1164	1.0	513832	1202565	SM1106	0.1	513108	1203789	SM2155	0.0	510436	1203302
SM2105	0.9	510537	1205406	SM1116	0.1	510558	1205282	SM1133	0.0	498626	1198751
SM1087	0.9	513518	1203796	SM1148	0.1	506066	1208004	SM2130	0.0	508662	1202449
SM2115	0.8	510913	1207924	SM2148	0.1	510468	1202832	SM2137	0.0	510456	1202725
SM2141	0.8	510283	1202905	SM2136	0.1	510333	1202705	SM1098	0.0	513612	1206607
SM2171	0.8	509514	1204787	SM2213	0.1	510910	1202079	SM2159	0.0	510477	1203207
SM1002	0.8	511126	1202443	SM2162	0.1	510478	1203202	SM2126	0.0	508669	1202506
SM2110	0.8	510528	1205350	SM2100	0.1	513568	1200425	SM1132	0.0	498626	1198761
SM2186	0.8	511167	1202484	SM2177	0.1	510927	1203057	SM2128	0.0	508673	1202480
SM1154	0.8	513971	1198793	SM1005	0.1	511144	1202490	SM2219	0.0	511189	1202212
SM1229	0.8	510014	1209564	SM1019	0.1	510946	1202190	SM2129	0.0	508669	1202462
SM2118	0.8	510784	1207807	SM1022	0.1	510923	1202181	SM2175	0.0	513633	1200025
SM1089	0.7	513448	1203909	SM1027	0.1	510481	1203207	SM1199	0.0	511576	1202422
SM1112	0.7	513041	1204069	SM1029	0.1	510500	1203141	SM1003	-	511146	1202469
SM2121	0.7	510998	1207312	SM1032	0.1	510531	1202997	SM1007	-	511160	1202558
SM1085	0.7	513668	1203915	SM1036	0.1	510178	1209416	SM1016	-	510909	1202261
SM2119	0.7	510993	1207920	SM1041	0.1	511232	1208889	SM1017	-	510928	1202270
SM1119	0.7	510489	1205281	SM1043	0.1	511192	1208853	SM1018	-	510932	1202233
SM2153	0.7	510412	1203394	SM1072	0.1	504997	1207269	SM1021	-	510975	1202144
SM1009	0.7	511206	1202478	SM1073	0.1	504865	1207236	SM1023	-	510412	1203362
SM1050	0.7	504361	1206050	SM1075	0.1	511947	1206087	SM1025	-	510434	1203304
SM1053	0.7	504364	1206315	SM1076	0.1	511957	1206043	SM1026	-	510434	1203308
SM1066	0.7	499700	1201786	SM1077	0.1	511060	1207433	SM1028	-	510465	1203207
SM2099	0.7	513579	1200419	SM1078	0.1	511232	1207422	SM1030	-	510513	1203086
SM1158	0.7	513876	1198815	SM1079	0.1	512504	1205134	SM1037	-	509997	1209379
SM2131	0.7	509686	1202840	SM2001	0.1	506131	1207927	SM1038	-	510030	1209523
SM2187	0.7	511149	1202480	SM2002	0.1	506133	1207930	SM1039	-	510410	1208104
SM1221	0.7	510036	1209682	SM2004	0.1	511762	1202439	SM1040	-	510457	1208145
SM1111	0.6	513032	1203998	SM2007	0.1	510411	1209108	SM1045	-	510417	1209098
SM1168	0.6	513961	1202569	SM2011	0.1	508361	1210125	SM1047	-	510528	1209135
SM1159	0.6	513807	1198828	SM2013	0.1	513570	1206552	SM1060	-	501586	1203835
SM2114	0.6	510878	1207920	SM2019	0.1	513686	1206589	SM1062	-	501765	1203715
SM1065	0.6	499717	1201818	SM2022	0.1	513665	1206668	SM1068	-	499752	1202355
SM2034	0.6	513730	1203901	SM2029	0.1	513724	1205992	SM1069	-	497143	1207720
SM2040	0.6	513522	1203935	SM2037	0.1	513437	1203920	SM1070	-	497140	1207741
SM2045	0.6	498556	1198804	SM2041	0.1	513492	1203898	SM1071	-	497256	1206906

SM2089	0.6	513844	1198907	SM2042	0.1	513038	1204039	SM1080	-	512438	1205040
SM2212	0.5	510945	1202115	SM2043	0.1	513011	1204057	SM2009	-	510589	1209139
SM1170	0.5	514029	1202431	SM2048	0.1	498710	1198867	SM2010	-	508385	1210169
SM2120	0.5	510965	1207915	SM2049	0.1	511169	1208831	SM2012	-	513586	1206547
SM1113	0.5	513015	1204063	SM2053	0.1	511213	1208863	SM2014	-	513568	1206536
SM1225	0.5	509996	1209700	SM2055	0.1	511244	1208898	SM2018	-	513615	1206607
SM1177	0.5	509675	1202964	SM2059	0.1	504998	1207290	SM2024	-	513746	1205968
SM1228	0.5	509987	1209529	SM2060	0.1	504861	1207290	SM2025	-	513745	1205966
SM1015	0.5	510933	1202317	SM2098	0.1	513615	1199643	SM2026	-	513743	1205966
SM1049	0.5	504352	1206046	SM2157	0.1	510395	1203276	SM2027	-	513738	1205977
SM1054	0.5	504356	1206259	SM1102	0.1	513611	1206756	SM2028	-	513677	1205992
SM2116	0.5	510847	1207905	SM2073	0.1	513863	1202569	SM2030	-	513139	1206303
SM1209	0.5	511322	1203900	SM1181	0.1	510265	1202840	SM2031	-	513151	1203868
SM1134	0.5	498731	1198715	SM1093	0.1	513716	1206006	SM2039	-	513505	1203940
SM2221	0.4	511167	1202225	SM1108	0.1	513013	1203936	SM2050	-	511179	1208834
SM1217	0.4	509909	1209829	SM1118	0.1	510571	1205068	SM2054	-	511233	1208885
SM1167	0.4	513936	1202558	SM1173	0.1	514597	1201670	SM2062	-	511292	1213895
SM2109	0.4	510516	1205357	SM2207	0.1	510929	1202230	SM2063	-	511306	1213877
SM2097	0.4	513523	1199622	SM1208	0.1	511386	1203859	SM2064	-	511314	1213848
SM2181	0.4	511185	1202442	SM2075	0.1	513834	1202561	SM2065	-	511329	1213826
SM1169	0.4	513990	1202545	SM2210	0.1	510902	1202235	SM2066	-	511335	1213810
SM1014	0.4	511007	1202265	SM2124	0.1	508056	1202529	SM2067	-	511320	1213877
SM2056	0.4	511249	1208911	SM2199	0.1	510922	1202189	SM2070	-	511062	1207436
SM2145	0.4	510502	1203018	SM2142	0.1	510300	1202835

For further information, please contact:

Mr Jason Stirbinskis Mr Jay Stephenson +61 (0)8 6141 3585 +61 (0)8 6141 3585

CEO, Drake Resources Company Secretary, Drake Resources info@drakeresources.com.au info@drakeresources.com.au

Competent Persons Statement

The information in this report that relates to exploration results is based on, and fairly represents, information and supporting documentation compiled by Dr Bob Beeson. Dr Beeson is a member of the Australasian Institute of Geoscientists, and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves" (JORC Code). Dr Beeson consents to the inclusion in this report of the matters based on his information in the form and context in which they appear.

Caution Regarding Forward Looking Information.

This document contains forward looking statements concerning Drake. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward-looking statements are inherently subject to business, economic, competitive, political and social uncertainties and contingencies. Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, metal prices, exploration, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Forward looking statements in this document are based on Drake's beliefs, opinions and estimates of Drake as of the dates the forward looking statements are made, and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments

APPENDIX 1 - JORC Code, 2012 Edition – Table 1 report template

Seimana Project (Guinea): mapping & sampling programme – 2014

Section 1 Sampling Techniques and Data

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

Criteria	JORC Code explanation	Commentary
Samplingtechniques	Nature and quality of sampling (egcut channels, random chips, orspecific specialised industry standard measurement tools appropriate tothe minerals under investigation, such as down hole gamma sondes, orhandheld XRF instruments, etc). These examples should not be takenas limiting the broad meaning of sampling.Include reference to measures taken to ensure sample representivityand the appropriate calibration of any measurement tools or systemsused.Aspects of the determination of mineralisation that are Material to thePublic Report.In cases where 'industry standard' work has been done this would berelatively simple (eg 'reverse circulation drilling was used to obtain 1 msamples from which 3 kg was pulverised to produce a 30 g charge forfire assay'). In other cases more explanationmay be required, such aswhere there is coarse gold that has inherent sampling problems.Unusual commodities or mineralisation types (eg submarine nodules)may warrant disclosure of detailed information.	Random rock chip samples of quartz vein material insurfaceoutcrop or in shallow artisanal mine workings carried out as partof a geological mapping exercise on artisanal gold mines. Eachsample is approximately 2 kg in weight composed of 10 to 20random fragments. Soil samples were taken at an average depthof 90 cm.Samples were all collected by qualified geologists or undergeological supervision. The sampling was part of an early stageexploration programme aimed at locating gold mineralisation andno claim is made as to representivity of each sample.Location of each sample was recorded by hand held GPS withpositional accuracy of approx +/-5 metres.
Drillingtechniques	Drill type (eg core, reverse circulation, open-hole hammer, rotary airblast, auger, Bangka, sonic, etc) and details (egcore diameter, triple orstandard tube, depth of diamond tails, face-sampling bit or other type,whether core is oriented and if so, by what method, etc).	No drilling was undertaken
Drill samplerecovery	Method of recording and assessing core and chip sample recoveriesand results assessed.Measures taken to maximise sample recovery and ensurerepresentative nature of the samples.Whether a relationship exists between sample recovery and grade and	No drilling was undertaken

Criteria	JORC Code explanation	Commentary
	whether sample bias may have occurred due to preferential loss/gain offine/coarse material.
Logging	Whether core and chip samples have been geologically andgeotechnically logged to a level of detail to support appropriate MineralResource estimation, mining studies and metallurgical studies.Whether logging is qualitative or quantitative in nature. Core (or costean,channel, etc) photography.The total length and percentage of the relevant intersections logged.	Each sample was briefly described geologically by the geologistinvolved, and the description entered into Drake Resources'sample template spreadsheet for entry into Drake's sampledatabase managed by Reflex Hub.The sample results are to be regarded as semi-quantitative
Sub-samplingtechniquesand samplepreparation	If core, whether cut or sawn and whether quarter, half or all core taken.If non-core, whether riffled, tube sampled, rotary split, etc and whethersampled wet or dry.For all sample types, the nature, quality and appropriateness of thesample preparation technique.Quality control procedures adopted for all sub-sampling stages tomaximise representivity of samples.Measures taken to ensure that the sampling is representative of the insitu material collected, including for instance results for fieldduplicate/second-half sampling.Whether sample sizes are appropriate to the grain size of the materialbeing sampled.	Samples as collected were transported by road to SGSLaboratories in Bamako (Mali).Samples were prepared by SGS by their standard techniquePRP89 which involves:The field sample is oven dried and thencrushed to 75% passing 2 mm by Boyd Crusher. A 1.5 kgsample split by rotary splitter ispulverized to 85% passing 75μmin a ring and puck pulveriser. An Approx. 200 gram sub-sampleis taken forassay.Every 50th sample is screened to confirm % passing 2mm and 75μm. Crusher and pulverisers cleaned withbarren material at the start of every batch and after every50th sample. % dust loss determined once per week
Quality ofassay dataandlaboratorytests	The nature, quality and appropriateness of the assaying and laboratoryprocedures used and whether the technique is considered partial ortotal.For geophysical tools, spectrometers, handheld XRF instruments, etc,the parameters used in determining the analysis including instrumentmake and model, reading times, calibrations factors applied and theirderivation, etc.Nature of quality control procedures adopted (eg standards, blanks,duplicates, external laboratory checks) and whether acceptable levels ofaccuracy (ie lack of bias) and precision have been established.	All samples were assayed by SGS technique FAE505 for gold.FAE505 involves fusion of a 50 g sample with a litharge basedflux, cupel, dissolve prill in aqua regia, extracted in DIBK andgold determined by flame AAS. Detection Limit 0.002ppm. Thisis considered a total extraction technique for gold.Quality control procedures employed by SGS are:1 Reagent Blank in 841 Preparation Blank (prep process blank) in 842 Weighed replicates in 842 Preparation Duplicate (re split) in 844 SRM's(Standard Reference Material)in 8420% of samples reportedhere were re-analysed from the samepulp and in all but one casereported values within 20% of eachsample's average.

Criteria	JORC Code explanation	Commentary
Verification ofsampling andassaying	The verification of significant intersections by either independent oralternative 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.	Of samples averaging +5 ppm gold, all but i returned replicatevalues within 20% of the sample average. The 1 exception wassample SM1140 which returned 27.5, 49.9, 51.2 ppmgold inreplicate analyses.Assay results for samples were received electronically from SGSLaboratories and uploaded into Drake's database managed byReflex Hub database.No adjustment of assay data (other than averaging of replicatesample assays) wasundertaken.
Location ofdata points	Accuracy and quality of surveys used to locate drill holes (collar anddown-hole surveys), trenches, mine workings and other locations usedin Mineral Resource estimation.Specification of the grid system used.Quality and adequacy of topographic control.	Sample locations were recorded at the time of sampling by handheld Garmin GPS, with horizontal accuracy of approx. 5 metresPositional data was recorded in projection WGS84 Zone 29N.The accuracy provided by hand held GPS is adequate for thenature of the survey.
Data spacinganddistribution	Data spacing for reporting of Exploration Results.Whether the data spacing and distribution is sufficient to establish thedegree of geological and grade continuity appropriate for the MineralResource and Ore Reserve estimation procedure(s) and classificationsapplied.Whether sample compositing has been applied.	The survey objective was to locate, map and sample artisanalmine workings and data was not collected on a regular spacing.
Orientation ofdata inrelation togeologicalstructure	Whether the orientation of sampling achieves unbiased sampling ofpossible structures and the extent to which this is known, consideringthe deposit type.If the relationship between the drilling orientation and the orientation ofkey mineralised structures is considered to have introduced a samplingbias, this should be assessed and reported if material.	Each rock chip sample is composed of 10 to 20 randomlyselected fragments. However the sampling may not be unbiased.Each soil sample was taken from a single hole. A significantproportion was taken in disturbed ground in and around artisanalworkings and may reflect some contamination.
Samplesecurity	The measures taken to ensure sample security.	Samples were taken by vehicle on the day of collection toDrake's enclosed & guarded field camp and were collected atthe end of the field programme by SGS Laboratories fortransport to Bamako. No other measures were taken to ensuresamplesecurity
Audits orreviews	The results of any audits or reviews of sampling techniques and data.	No reviews or audits of sampling techniques were conducted.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	Commentary
Mineraltenement andland tenurestatus	Type, reference name/number, location and ownership includingagreements or material issues with third parties such as jointventures, partnerships, overriding royalties, native title interests,historical sites, wilderness or national park and environmentalsettings.The security of the tenure held at the time of reporting along with anyknown impediments to obtaining a licence to operate in the area.	The programme was conducted on 3 granted ExplorationPermits held 100% by SociétéMinièrede Mandiana SARL(SMM). Drake Resources has an executed agreement with theshareholders of SMM giving Drake the right, but not theobligation, to acquire 100% of the shares in SMM.The 3 Exploration Permits were granted by the Minister forMines for a period of 3 years from December 30, 2013renewable for up to 4 further years. Acquisition by Drake will besubject to approval by the Minister for Mines.
Explorationdone by otherparties	Acknowledgment and appraisal of exploration by other parties.	Drake is not aware of any exploration or evaluation of the permitareas by any other company.
Geology	Deposit type, geological setting and style of mineralisation.	Gold mineralisation is of orogenic type within the Birrimian Age(Lower Proterozoic) Siguiri Basin -West African Gold Province.
Drill holeInformation	A summary of all information material to the understanding of theexploration results including a tabulation of the following informationfor all Material drill holes:oeasting and northing of the drill hole collaroelevation or RL (Reduced Level –elevation above sea level inmetres) of the drill hole collarodip and azimuth of the holeodown hole length and interception depthohole length.If the exclusion of this information is justified on the basis that theinformation is not Material and this exclusion does not detract fromthe understanding of the report, the Competent Person should clearlyexplain why this is the case.	No drilling undertaken
Dataaggregationmethods	In reporting Exploration Results, weighting averaging techniques,maximum and/or minimum grade truncations (eg cutting of highgrades) and cut-off grades are usually Material and should be stated.	No weighting, grade truncation or high grade cutting techniqueshave been applied to the data reported.Where replicate assays have been carried out the value reported

Criteria	JORC Code explanation	Commentary
	Where aggregate intercepts incorporate short lengths of high graderesults and longer lengths of low grade results, the procedure usedfor such aggregation should be stated and some typical examples ofsuch aggregations should be shown in detail.The assumptions used for any reporting of metal equivalent valuesshould be clearly stated.	is the arithmetic average of replicated assays.No metal equivalents have been reported
Relationshipbetweenmineralisationwidths andinterceptlengths	These relationships are particularly important in the reporting ofExploration Results.If the geometry of the mineralisation with respect to the drill holeangle is known, its nature should be reported.If it is not known and only the down hole lengths are reported, thereshould be a clear statement to this effect (eg 'down hole length, truewidth notknown').	Not applicable as no drilling was undertaken
Diagrams	Appropriate maps and sections (with scales) and tabulations ofintercepts should be included for any significant discovery beingreported These should include, but not be limited to a plan view ofdrill hole collar locations and appropriate sectional views.	Maps are provided in the main text.
Balancedreporting	Where comprehensive reporting of all Exploration Results is notpracticable, representative reporting of both low and high gradesand/or widths should be practiced to avoid misleading reporting ofExploration Results.	Map records all sample locations and indicates assay intervalforevery sampleTable 1 includes all assay results from the field programme.
Othersubstantiveexplorationdata	Other exploration data, if meaningful and material, should be reportedincluding (but not limited to): geological observations; geophysicalsurvey results; geochemical survey results; bulk samples –size andmethod of treatment; metallurgical test results; bulk density,groundwater, geotechnical and rock characteristics; potentialdeleterious or contaminating substances.	All material results are reported
Further work	The nature and scale of planned further work (eg tests for lateralextensions or depth extensions or large-scale step-out drilling).Diagrams clearly highlighting the areas of possible extensions,including the main geological interpretations and future drilling areas,provided this information is not commercially sensitive.	A programme of approx.2000 metres of inclined RC drilling isplanned. Precise hole locations will be determined after furtherfield inspection.