RAIDEN RESOURCES LIMITED — Capital/Financing Update 2018

Nov 7, 2018

STARA PLANINA EXPLORATION UPDATE

HIGHLIGHTS

• All five drill holes intercepted copper and gold mineralisation at Gradiste and Aldinac targets
• Drilling has confirmed the presence and orientation of copper and gold mineralisation
• Multiple styles of mineralisation encountered confirming intrusion related geological model
• Field activities currently underway to identify high-grade zones for follow up drilling campaign

Raiden Resources Limited (ASX: RDN) ('Raiden' or the 'Company') is pleased to announce the encouraging drill results from the maiden drill campaign at Stara Planina1 , in which all five drill holes intercepted anomalous copper and gold mineralisation.

Dusko Ljubojevic, Managing Director of Raiden commented: "Initial drilling at Aldinac and Gradiste within the Stara Planina project has been encouraging, having intercepted copper and gold mineralisation in all initial holes. The drilling has indicated the presence of controlling shears associated with higher grades and will be the focus of the Company's follow up drill program. The Company is in the process of conducting field activities to refine high-grade targets for future drilling."

Drilling results at Stara Planina

The Company received assay results from its maiden drill program, which consisted of five diamond drill holes totalling approximately 1,700m. Drilling targeted chargeability anomalies at depth, previously defined by an induced polarisation ("IP") program completed earlier this year by the Company at its Aldinac and Gradiste targets. The Company is encouraged by these initial results, intercepting anomalous copper and gold mineralisation.

The maiden drill program has provided the Company with a valuable insight into the nature of mineralisation, the distribution of sulphide mineralisation throughout the system and the structural frame work of the target areas. The initial drilling targeted coincident IP and multi-element geochemical anomalies, however the Company remain cognisant that historically the highest-grade mineralisation produced from outcrop samples were located on structures peripheral to the IP anomalies. The Company will refocus its exploration activities to concentrate on these identified high-grade structures present at both Aldinac and Gradiste, as well as continuing to test the IP anomalies along strike and at depth.

The Company has since commenced field activities to identify high-grade zones of mineralisation, prior to a follow up drill campaign.

1 The Company has the right to earn in and acquire 100% interest in the Stara Planina project.

Hole	Easting	RL	Northing	Azimuth	Dip	End ofHole (m)	Area	PQ interval(m)	HQ interval (m)
GRDD004	7610886	364	4820894	85	-50	200.4	Gradiste	0 to 83.4	83.4 to 200.4
GRDD008	7611808	603	4820626	236	-50	511.6	Gradiste	0 to 99.9	99.9 to 511.6
ALDD004	7618633	733	4820062	237	-50	395.7	Aldinac	0 to 92.6	92.6 to 395.7
ALDD008	7618802	752	4819903	237	-50	131.6	Aldinac	0 to 56.8	56.8 to 131.6
ALDD003	7618460	717	4820150	237	-50	440.6	Aldinac	0 to 77.6	77.6 to 440.6

Table 1 - Drill Holes Completed at Stara Planina

Notable Intercepts at the Aldinac target

Drilling at Aldinac was focused on a 1.2km coincident geochemical and IP anomaly which served to identify a number of zones of significant alteration and mineralisation. While only the southern 200m of the IP anomaly was tested copper and gold mineralisation was intercepted in all three holes completed, including:

BHID	Azimuth	Dip	EOH(m)	From(m)	To(m)	Length(m)	Gold(g/t Au.)	Copper(% Cu.)
ALDD003
ALDD003	237	-50	440.6	1	3	3		0.37
ALDD003	237	-50	440.6	30	31	1	1.14
ALDD003	237	-50	440.6	47.4	52.4	5		0.13
ALDD003	237	-50	440.6	104	115	11		0.21
ALDD003	237	-50	440.6	159	162	3		0.18
ALDD003	237	-50	440.6	266	268.3	2,3		0.29
ALDD003	237	-50	440.6	342	348	6		0.1
ALDD004
ALDD004	237	-50	395.7	23.5	27.5	4		0.12
ALDD004	237	-50	395.7	74	76	2	0.51
ALDD004	237	-50	395.7	256	258	2	0.59
ALDD004	237	-50	395.7	288.5		4,5	0.2	0.25

Table 2 – Notable intercepts at the Aldinac target

The host lithology is interpreted to be a subvertical gabbro, diabase volcanic package, that in some instances is intruded by late porphyritic dykes.

Map 1 - Aldinac target with locations of drill collars and new target zones

Notable Intercepts at the Gradiste target

The Company intercepted anomalous copper and gold mineralisation in the two drill holes testing the northern limits of the Gradiste target, including:

Table 3 - Notable intercepts at the Gradiste target

			EOH	From	To	Length	Gold	Copper
BHID	Azimuth	Dip	(m)	(m)	(m)	(m)	(g/t Au.)	(% Cu.)
GRDD004
GRDD004	85	-50	200.4	70	70.7	0.7	1.4
	85	-50	200.4	104	110.5	6.5	1.07
Including
				104	104.8	0.8	2.95	0.135
				107	107.8	0.8	2.79	0.1
				108.5	109.5	1	2.35	0.19

Gold mineralisation appears to be primarily associated with brittle faulting, however a number of mineralisation styles have been recognised with the highest-grade intercept associated with a zone of

intense brecciation and veining. As well as testing the southern extents of the IP target, the Company has identified several other anomalous areas to the North and South (Map 2).

Map 2 - Gradiste target with drill locations and new target zones

Next steps

Initial interpretations derived from recent drilling, historical trenching and outcrop sampling point to a secondary system, which may be associated with the underlying intrusive system and may prove to be the most attractive target for high-grade mineralisation. The Company's technical teams have commenced field activities to define the structural frame work of these target zones in detail.

The Company will utilise information produced from the field activities to refine targets prior to commencing a follow up drilling campaign.

FOR FURTHER INFORMATION PLEASE CONTACT:

DUSKO LJUBOJEVIC Managing Director Raiden Resources Limited dusko@raidenresources.com.au www.raidenresources.com.au

Competent Person's Statement

The information in this announcement that relates to exploration results is based on and fairly represents information and supporting documentation prepared by Mr Martin Pawlitschek, a competent person who is a member of the Australian Institute of Geoscientists (AIG). Mr Martin Pawlitschek employed by Raiden Resources Limited. Mr Martin Pawlitschek 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. Mr Martin Pawlitschek has provided his prior written consent as to the form and context in which the exploration results and the supporting information are presented in this announcement.

Disclaimer:

Forward-looking statements are statements that are not historical facts. Words such as "expect(s)", "feel(s)", "believe(s)", "will", "may", "anticipate(s)", "potential(s)"and similar expressions are intended to identify forward-looking statements. These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the Company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the Company's prospects, properties and business strategy. Our audience is cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forward-looking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.

About Raiden Resources

Raiden Resources Limited (ASX:RDN) is an ASX listed copper—gold focused exploration company focused on the emerging prolific Tethyan metallogenic belt in eastern Europe, focused in Serbia. The Company has signed an Earn-In and Joint Venture Agreement with Rio Tinto in respect to three of its six projects, whereby Rio Tinto can earn a 75% project-level position in the properties via a staged exploration commitment totalling USD$31.5 million in three stages at Rio Tinto's election.

Raiden also retains a 100% interest in the Bor and Pirot project applications and the Zupa property, which the company considers prospective for intrusion-related mineralisation styles including gold, copper and other base metals. The Directors believe that the Company is well positioned to unlock value from this exploration portfolio and be positioned as a fresh ASX listed gold-copper exploration company.

JORC Code, 2012 Edition Table 1.

This table applies to both exploration prospects at Stara Planina, namely Aldinac and Gradiste.

Criteria	JORC Code explanation	Commentary
	Nature and quality of sampling (e.g. cut channels,random chips, or specific specialised industry standardmeasurement tools appropriate to the minerals underinvestigation, such as down hole gamma sondes, orhandheld XRF instruments, etc). These examplesshould not be taken as limiting the broad meaning ofsampling.	The PQ and HQ diamond drill core is marked up at the Company's corehandling facility in Knazevac. The core is split in half utilizing a watercooled diamond core saw. Samples are systematically collected in 1.0mintervals down the holes. Where geological logging identifies specialintervals of interest, sampling maybe adjusted to 0.5m minerals toaccommodate sampling of distinct geological features. Samplestypically weigh between 4-10kg. Samples are then submitted to the ALSCHEMEX facility in Bor, Serbia for industry standard samplepreparation, where they are sent to an accredited ALS CHEMEX facilityin Ireland for analytical analysis.
Sampling techniques	Include reference to measures taken to ensure samplerepresentivity and the appropriate calibration of anymeasurement tools or systems used.	The half core and weight of the sample provides sufficientrepresentivity. No calibration of any equipment was required as allsamples were sent for assay by commercial laboratory.
	Aspects of the determination of mineralisation thatare Material to the Public Report. In cases where'industry standard' work has been done this would berelatively simple (e.g. 'reverse circulation drilling wasused to obtain 1 m samples from which 3 kg waspulverised to produce a 30 g charge for fire assay'). Inother cases, more explanation may be required, suchas where there is coarse gold that has inherentsampling problems. Unusual commodities ormineralisation types (e.g. submarine nodules) maywarrant disclosure of detailed information.	PQ and HQ diamond drilling methods are used to obtain 1m samplesfrom which 4-10kg of material is pulverised to produce a representativesample for fire assay and ICP-MS. At the geologist's discretion anddepending on the core geology, certain samples of 50cm were selectedfor sampling.

JORC Code, 2012 Edition Table 1.

This table applies to both exploration prospects at Stara Planina, namely Aldinac and Gradiste.

Criteria	JORC Code explanation	Commentary
Drilling techniques	Drill type (e.g. core, reverse circulation, open-holehammer, rotary air blast, auger, Bangka, sonic, etc)and details (e.g. core diameter, triple or standardtube, depth of diamond tails, face-sampling bit orother type, whether core is oriented and if so, by whatmethod, etc).	Drilling by the Company was completed with a professional drillingcontractor, Drillex International, utilizing a track mounted diamond corerig. All holes commenced with PQ core diameter in the top 40 to 70mand were completed with HQ (see Table 1 for details). All diamond drillcore was orientated where possible.
	Method of recording and assessing core and chipsample recoveries and results assessed.	Diamond core is recovered in 3m runs using a standard core barrel,either PQ or HQ size on a wireline. All core is then logged for geology
Drill sample recovery	Measures taken to maximise sample recovery andensure representative nature of the samples.	and structure. The Company generally achieved greater the 90%recovery in the mineralised and sampled zones. The PQ & HQ diametercore and sampling of half core ensures the representative nature of the
	Whether a relationship exists between samplerecovery and grade and whether sample bias mayhave occurred due to preferential loss/gain offine/coarse material.	samples. As no assays have been received or are being reported theCompany cannot comment on any observed relationship betweensample recovery and grade.
	Whether core and chip samples have been geologicallyand geotechnically logged to a level of detail tosupport appropriate Mineral Resource estimation,mining studies and metallurgical studies.	Drill core is transported to the Company's rented core handling facility,where all core is oriented, measured, logged for geology, alteration.geotechnical. All core is then photographed and sampled on 1.0m or0.5m intervals. All logging is qualitative. Geologic rock types, alteration
Logging	Whether logging is qualitative or quantitative in	and structure are recorded based on visual determination. Diamond
	nature. Core (or costean, channel, etc) photography.	core was photographed in a dry and wet state. Sufficient geological andgeotechnical logging of the core has been completed for exploration
	The total length and percentage of the relevantintersections logged.	purposes, no Mineral Resource estimate is being reported.

JORC Code, 2012 Edition Table 1.

This table applies to both exploration prospects at Stara Planina, namely Aldinac and Gradiste.

Criteria	JORC Code explanation	Commentary
	If core, whether cut or sawn and whether quarter, halfor all core taken.	The PQ and HQ diameter core is cut in half utilizing a water-cooleddiamond core saw.
	If non-core, whether riffled, tube sampled, rotary split,etc and whether sampled wet or dry.	The sampled material is PQ or HQ half core.
Sub-sampling techniques	For all sample types, the nature, quality andappropriateness of the sample preparation technique.	Samples of around 4-10kg of half core material will be crushed to 70%less than 2mm on a jaw crusher, rotary split off 250gr, pulverize split tobetter than 85% passing 75 micron serving to provide an appropriateand representative sample for analysis. Sample preparation isundertaken at the ALS CHEMEX laboratory in Bor, to industry bestpractice.
and sample preparation	Quality control procedures adopted for all subsampling stages to maximise representivity ofsamples.	Industry best practice are adopted by ALS CHEMEX for laboratory subsampling and the avoidance of any cross contamination.
	Measures taken to ensure that the sampling isrepresentative of the in-situ material collected,including for instance results for fieldduplicate/second-half sampling.	The half core sampling is considered a reasonable representation of thein-situ material. No duplicate material was collected although aCertified Reference Material was inserted every 20 samples or less.
	Whether sample sizes are appropriate to the grain sizeof the material being sampled.	Sample size of around 4-10kg is considered to be appropriate toreasonably represent the material being tested.
Quality of assay data andlaboratory tests	The nature, quality and appropriateness of theassaying and laboratory procedures used and whetherthe technique is considered partial or total.	No assays are reported here. Sample preparation will be undertaken atthe accredited laboratory of ALS CHEMEX in Bor, Serbia which has fullindustry certification and will be sent to an accredited ALS CHEMEX

JORC Code, 2012 Edition Table 1.

This table applies to both exploration prospects at Stara Planina, namely Aldinac and Gradiste.

Criteria	JORC Code explanation	Commentary
		facility in Ireland for sample analysis. Multi elements will be assayed byan ICP-MS technique following an aqua regia digest. Gold will bedetermined using a fire assay on a nominal 30g charge with an ICP-AESfinish. Raiden's Competent Person (CP) is confident that these analyticaland assay techniques and QA/QC protocols selected by the Companyare appropriate and adequate for the purposes of explorationevaluation of the drill targets. These sample media and techniques andassays were not part of a resource estimate
	For geophysical tools, spectrometers, handheld XRFinstruments, etc, the parameters used in determiningthe analysis including instrument make and model,reading times, calibrations factors applied and theirderivation, etc.	There was no reliance on determination of analysis by geophysicaltools.
	Nature of quality control procedures adopted (e.g.standards, blanks, duplicates, external laboratorychecks) and whether acceptable levels of accuracy (i.e.lack of bias) and precision have been established.	Certified Reference Material (CRM) appropriate for the elements beinganalysed will be added at a rate better than 1 in 20. Any resultsreported by ALS CHEMEX on the CRMs will need to be within 1 standarddeviation (1SD), which is considered an acceptable level of accuracy.
Verification of samplingand assaying	The verification of significant intersections by eitherindependent or alternative company personnel.	There has been no independent logging of the mineralised intervalhowever, it has been logged by several company geologists and verifiedby senior geological staff
	The use of twinned holes.	No assaying reported. All holes reported are not twin holes.

JORC Code, 2012 Edition Table 1.

This table applies to both exploration prospects at Stara Planina, namely Aldinac and Gradiste.

Criteria	JORC Code explanation	Commentary
	Documentation of primary data, data entryprocedures, data verification, data storage (physicaland electronic) protocols.	Field collected data was entered into the Company's database andverified at point of entry. Data is stored on the Virtual Cloud and isregularly backed-up locally. Drill collars and down-hole surveys arerecorded by the drill contractor and entered into a spreadsheet andthen loaded into the database. Assays from the laboratory are receivedand loaded electronically. Laboratory certificates are available
	Discuss any adjustment to assay data.	No assaying reported here.
	Accuracy and quality of surveys used to locate drillholes (collar and down-hole surveys), trenches, mine	Not applicable as there is no Mineral Resource
	workings and other locations used in Mineral Resourceestimation.	Drill hole collar locations were surveyed using hand GPS with 3measurement and averaging the location between the 3 measurementpoints.
Location of data points	Specification of the grid system used.	Down-hole surveys of core holes were performed by the drillingcontractor using a Reflex- EZ Trac tool. But because of high magneticinterference of magnetic mineralization the company experiencedproblems with some measurement points. In event where this wasencountered, the Company used an average measurement value fromprevious reading. As these results are not related to a mineral resource,the CP does not feel this is relevant at this point.
		Soil samples: Grid System: Projected coordinate system MGI 1901 /Balkans zone 7 EPSG number 3909. Soil sampling locations weredetermined by a hand-held GPS. Topographic accuracy is estimated tobe within 30-50 meters. Topographic control is not considered relevant,as it does not relate to Mineral Resources

JORC Code, 2012 Edition Table 1.

This table applies to both exploration prospects at Stara Planina, namely Aldinac and Gradiste.

Criteria	JORC Code explanation	Commentary
	Quality and adequacy of topographic control.	Induced Polarisation (IP): Grid System: Projected coordinate systemMGI 1901 / Balkans zone 7 EPSG number 3909. Location of IPmeasuring stations were determined using a Trimble differential GPS.The location accuracy is estimated to be within a couple of meters.The elevation used for modelling were taken from a digital elevationmodel (SRTM) downloaded from Geosoft Public DAB server.Topographic accuracy is estimated to be within 30-50 meters.Topographic control is not considered relevant, as it does not relate toMineral Resources
Data spacing anddistribution	Data spacing for reporting of Exploration Results.	No assays are being reported. All samples are collected at 0.5m or 1mintervals down hole.The first pass drilling of the targets at Gradiste and Aldinac has beencompleted. The drilling was designed to gain a better understanding ofthe local geology and nature of the mineralisation and as such holes arespaced 200-800m apart. The drilling is very wide spaced for the size ofthe targets and can not be considered as an exhaustive test. Drill sitelocations in this program were a compromise between geologicalobjectives, accessible surface land titles, access roads and topography.The objective was primarily to test the IP anomalies with coincidentcopper and gold anomalism, and to establish the style of mineralization.The drilling, even after receiving the assay results will be insufficient to

JORC Code, 2012 Edition Table 1.

This table applies to both exploration prospects at Stara Planina, namely Aldinac and Gradiste.

Criteria	JORC Code explanation	Commentary
		determine the presence of a mineral resource. Further drilling will berequired for this.
	Whether the data spacing and distribution is sufficientto establish the degree of geological and gradecontinuity appropriate for the Mineral Resource andOre Reserve estimation procedure(s) andclassifications applied.	No Mineral Resource or Ore Reserve is being reported.
	Whether sample compositing has been applied.	No assays, Mineral Resource or Ore Reserves is being reported.
Orientation of data inrelation to geologicalstructure	Whether the orientation of sampling achievesunbiased sampling of possible structures and theextent to which this is known, considering the deposittype.If the relationship between the drilling orientation andthe orientation of key mineralised structures isconsidered to have introduced a sampling bias, thisshould be assessed and reported if material.	The drilling has been oriented to drill across the main NW trends andstructures indicated from the available data. It is more difficult toascertain the dip and dip azimuth of the mineralized zonesencountered. Additional down dip drilling on sections will be requiredfor this. In some cases where the structures in the core run sub parallelto the core axis, additional drilling with opposing azimuths mayberequired before the dip can be defined with some certainty.

JORC Code, 2012 Edition Table 1.

This table applies to both exploration prospects at Stara Planina, namely Aldinac and Gradiste.

Criteria	JORC Code explanation	Commentary
Sample security	The measures taken to ensure sample security.	The drill core is in the custody of Company personnel from the drill siteto the core handling facility. The facility is locked when not in use. Coresamples are transported in sealed bags to the laboratory. Thelaboratory checks the sample batches and signs for the receipt.
Audits or reviews	The results of any audits or reviews of samplingtechniques and data.	No audits have yet been undertaken

Criteria	JORC Code explanation	Commentary
Mineraltenement andland tenurestatus	Type, reference name/number, locationandownership including agreements or materialissues with third parties such as jointventures, partnerships, overriding royalties,native title interests, historical sites,wilderness or national park andenvironmental settings.	Skarnore Resources DOO, a 100% owned subsidiary of Raiden Resources Limited, has an interestin the Stara Planina Licence (#2168), which is located in eastern Serbia, under an earn-in and jointventure agreement with the registered holder of the Stara Planina Licence, Geo Consulting Studiodoo ('GeoConsulting Joint Venture Agreement'). Under the GeoConsulting Joint VentureAgreement Skarnore has a right to earn in up to a 90% interest, and an option to acquire a 100%interest in respect of the Stara Planina Licence. The license is partially located in the Stara PlaninaNature Park. The segments of the license which are located in the Nature park are in a zonewhich is subject to the lowest rank with regard to environmental protection. The zone withinwhich the licenses is located in the park, permits mineral exploration and exploitation, as definedby the Serbian Mining Law.
	The security of the tenure held at the timeof reporting along with any knownimpediments to obtaining a licence tooperate in the area.	On the 1st of November 2018, the Company's JV partner and holder of the Stara Planinaexploration license GeoConsulting Studio DOO ("GCS"), received written confirmation from theSerbian Ministry of Mining and Energy that the exploration license has been extended for afurther 3 years.
		To date Skarnore Resources DOO has not earned into the license.
		The full terms of the Stara Planina earn-in can be found on page 65 of the Company's listingprospectus dated 13 December 2017.
Explorationdone by otherparties	Acknowledgment and appraisal ofexploration by other parties.	The project area has been explored by a number of parties in the past. Prior to the small miningduring World War II, what exploration or mineral exploitation activities are unknown. After WorldWar II and the termination of mining activities, the Stara Planina area was reportedly explored foruranium by former-Yugoslav state agencies which undertook limited exploration.

Criteria	JORC Code explanation	Commentary
		In the period 2003-2004 Rio Tinto performed minor copper exploration in the area. Althoughlimited, this exploration activity was the first to document porphyry, or intrusion related stylepotential of the area, specifically on the Gradiste anomaly. Rio Tinto's work included soil and rocksampling which defined a multi-element Cu/Mo/As +- Au in soil anomaly on the Gradisteprospect.
		Further work was also performed by Reservoir Capital Corp ('Reservoir"). Raiden has purchasedthe data sets of the work executed by Reservoir, and the data which is relevant to the targetareas, as defined by Raiden are presented in this release.
		The key aspects of the work undertaken by Reservoir included; geological mapping, streamsediment sampling throughout the permit area; A 200x200m spaced soil sampling survey wascompleted, and detailed orientation lines were undertaken, across known mineralizationoccurrences (Gradiste and Aldinac), which were also defined through the stream sedimentsampling program. The results confirm persistent Cu and Mo anomalism covering an area ofabout 2.5 x 0.75km along a NNW structural trend on Gradiste and a Cu/Mo anomaly covering asimilar area on the Aldinac anomaly. Within both of the anomalies, gold is inconsistent butanomalous. The geochemically anomalous area is characterised by alteration (silicification,carbonate), mineralization (quartz veining with sulphides), and ductile deformation. Stockworkquartz veining with malachite staining has been discovered within the granodiorite outcropswhich are present within both of the anomalies.
		Furthermore, Reservoir collected surface grab samples throughout the 2 anomalies andconducted road cut-continuous chip sampling, as well as, trenching and sampling on the Gradisteanomaly.
		Reservoir also executed a small induced polarisation (IP) program over the norther extent of thehistorical Alin Do mine, which is located on the North Eastern periphery of the Gradiste anomaly.The program was followed up by a short (ca 786m), drill program whose objective was to definethe extensions of the mineralisation within the Alin Do mine. The drilling program failed to defineany significant mineralised zones.

Criteria	JORC Code explanation	Commentary
		For further details regarding the historical data sets refer to the Company's press release on the5th of June 2018.
Geology	Deposit type, geological setting and style ofmineralisation.	At this time the CP is not certain of the genetic model which is related to the mineralisation andon the Gradiste and Aldinac anomalies. One of the objectives of the initial drilling program is togather further information in order to aid in definition of the genesis of the mineralisation. Fromthe data available at this time, the CP believes that the mineralisation is related to an 'IntrusionRelated Gold +- Au Deposit' model. This hypothesis is supported by the presence of granodioriticintrusions which are located within the anomalous zones. Distinct geochemical footprints alsoprovide further evidence to support the Intrusion Related Mineralisation model, but furtherinvestigation and analysis is required to determine this with more confidence.'
Drill holeInformation	A summary of all information material tothe understanding of the exploration resultsincluding a tabulation of the followinginformation for all Material drill holes:easting and northing of the drill holeocollarelevation or RL (Reduced Level –oelevation above sea level in metres)of the drill hole collardip and azimuth of the holeodown hole length and interceptionodepthhole length.oIf the exclusion of this information isjustified on the basis that theinformation is not Material and this	The details of the drill holes material to the exploration results reported in the announcement areincluded in this announcement, refer Table 2 and table 3.RL was not recorded as the results do not relate to a Mineral Resources Estimate.

Criteria	JORC Code explanation	Commentary
	exclusion does not detract from theunderstanding of the report, theCompetent Person should clearlyexplain why this is the case.
Dataaggregationmethods	In reporting Exploration Results,weighting averaging techniques,maximum and/or minimum gradetruncations (e.g. cutting of high grades)and cut-off grades are usually Materialand should be stated.	-Any grade and width information reported in this release is considered useful, qualitativeinformation by the CP. The data is suitable for planning of additional work that will lead to adrill decision. The data available is insufficient to be included in a mineral resource.
	Where aggregate intercepts incorporateshort lengths of high-grade results andlonger lengths of low grade results, theprocedure used for such aggregationshould be stated and some typicalexamples of such aggregations should beshown in detail.	-To calculate interval intercept-grade calculations, the Company used the following criteria; ao,5m minimum intercept width; maximum of 2m meters of internal dilution; no externaldilution was applied.
	The assumptions used for any reporting ofmetal equivalent values should be clearlystated.	-No metal equivalent formulas were used in reporting of any historical intercepts, or results
Relationshipbetweenmineralisationwidths andinterceptlengths	These relationships are particularlyimportant in the reporting of ExplorationResults.If the geometry of the mineralisationwith respect to the drill hole angle isknown, its nature should be reported.If it is not known and only the down holelengths are reported, there should be a clear	Mineralisation widths and grades reported here are only indicative and are not incorporatedinto a resource.Mineralisation geometry at this stage is unknown, width reported from the current drillingprogram can therefore not be considered true widths.Drill hole orientations have been oriented to intersect the NW trending structural trends.At this time the relationship between true widths and reported intercepts is not understoodand will require further drill testing to determine.

Criteria	JORC Code explanation	Commentary
	statement to this effect (e.g.'down holelength, true width not known').
Diagrams	Appropriate maps and sections (with scales)and tabulations of intercepts should beincluded for any significant discovery beingreported These should include, but not belimited to a plan view of drill hole collarlocations and appropriate sectional views.	Maps 1 and 2 showing the location of the drill holes are included in the text.
Balancedreporting	Where comprehensive reporting of allExploration Results is not practicable,representative reporting of both low andhigh grades and/or widths should bepracticed to avoid misleading reporting ofExploration Results.	The reporting here covers the area of the company's current focus. Further data analysis andinterpretation may result in the definition of new target areas, including in the vicinity of the drillingactivities reported in this release.
Othersubstantiveexplorationdata	Other exploration data, if meaningful andmaterial, should be reported including (butnot limited to): geological observations;geophysical survey results; geochemicalsurvey results; bulk samples – size andmethod of treatment; metallurgical testresults;bulkdensity,groundwater,geotechnicalandrockcharacteristics;potential deleterious or contaminatingsubstances.	•No information is available on metallurgy, ground water, bulk density or rock stability.•Traces of Arsenic are present in the soil samples and rock chip samples.•Logging and sampling of the Company's drill core will continue until completed•Integration and interpretation of the various data sets are on-going

Criteria	JORC Code explanation	Commentary
Further work	The nature and scale of planned furtherwork (e.g. tests for lateral extensions ordepth extensions or large-scale step-outdrilling).Diagrams clearly highlighting the areas ofpossible extensions, including the main	•The Company has completed an Induced Polarisation program and a drilling program over itstwo key target areas at Aldinac and Gradiste. The Company has also commenced with amapping project to define the structural and geological controls on the mineralisation withinthe target areas. Further geochemical sampling will be undertaken to further constrainmineralisation envelopes.Further work may include trenching in the target areas.
	geological interpretations and future drillingareas, provided this information is notcommercially sensitive.	•The Company is still developing the geological model and defining the potential extensions oftarget trends