RAMELIUS RESOURCES LIMITED — Capital/Financing Update 2016

May 8, 2016

9 May 2016 For Immediate Release

Maiden 241,000oz Milky Way Resource - Mt Magnet, WA

Highlights

• Maiden Mineral Resource of 5.99 Mt @ 1.3 g/t Au for 241,000oz

• Potential for large tonnage open pit operation at Mt Magnet

• Further in-fill and step-out RC drilling underway

• Mining studies to commence immediately

Ramelius Resources Limited (ASX:RMS) is pleased to announce its maiden Mineral Resource estimate for the Milky Way gold deposit, 3.6km from the processing plant at Mt Magnet in Western Australia (refer Figures 1 & 2);

• Total Mineral Resource is estimated at 5.99 Mt @ 1.3 g/t Au for 241,000 contained ounces (using a 0.7g/t Au cut-off)

The new resource estimate was independently generated by Resource consultants, Optiro Pty Ltd, following recent drilling programmes conducted by Ramelius in late 2015 and early 2016. Mineral Resource details are shown in Table 1 below.

Initial scoping work suggests a viable open pit operation and more detailed evaluation will now commence, including pit optimisation, metallurgical test work and assessment of statutory approval requirements.

Ramelius Managing Director, Mark Zeptner today said:

“In what is a great credit to our exploration team, this maiden Milky Way resource has the potential to provide a significant base load ore source and deliver a quantum shift in our overall Mt Magnet life-of-mine plans. It provides further evidence that the potential of the porphyry based deposits at Mt Magnet is significant”.

“Further depth drill testing, evaluation, design and permitting work on the project together with aggressive forward exploration programs in the area will continue over the next Quarter. We aim to generate an Ore Reserve for Milky Way during this period and delivering additional exploration success in adjacent areas where we have already had some very encouraging drill intersections”.

For further information contact: Mark Zeptner Managing Director Ramelius Resources Ltd Ph: +61 8 9202 1127

Duncan Gordon Executive Director Adelaide Equity Partners Ph: +61 8 8232 8800

ABOUT RAMELIUS

==> picture [464 x 110] intentionally omitted <==

==> picture [464 x 110] intentionally omitted <==

==> picture [464 x 110] intentionally omitted <==

==> picture [464 x 110] intentionally omitted <==

Figure 1: Ramelius’ Operations & Development Project Locations

Ramelius owns 100% of the Mt Magnet gold mine and associated processing plant in Western Australia. The Company has commenced production from the high grade Vivien and Kathleen Valley gold mines near Leinster, also in Western Australia. The Burbanks Treatment Plant is located approximately 9 kilometres south of Coolgardie and is currently on care and maintenance.

2

Milky Way Gold Deposit

Milky Way is located 6km west of Mt Magnet, and 4.8km (by road) from the Company’s “Checker” Processing Plant.

==> picture [459 x 71] intentionally omitted <==

==> picture [459 x 71] intentionally omitted <==

==> picture [459 x 71] intentionally omitted <==

==> picture [459 x 71] intentionally omitted <==

==> picture [459 x 71] intentionally omitted <==

Figure 2: Milky Way Location

The deposit is located on the 100% owned Mining lease, M58/136. The existing 67m deep, Milky Way pit was mined in 1999 to 2000 by Mt Magnet Gold (WMC) and produced 626,723 t @ 1.64 g/t for 33,073 oz.

Gold mineralisation occurs as stockwork style of sericite-silica-pyrite veining and alteration within a thick altered felsic porphyry unit intruded into ultramafic flow sequences. Mineralisation forms high grade zones within a broader low grade stockwork. Higher grade gold mineralisation tends to occur along the eastern margin of the felsic (trending 015° to 030°), adjacent to the ultramafic contact along the trace of the vertical dipping Milky Way Fault, oblique to the overall dip of the porphyry at around 65° to 75°. Within the HW ultramafic a number of narrow felsic units are intercalated and are frequently mineralised.

Mineral Resource

The Mineral Resource was generated in April 2016 and is summarised below:

Table 1: Milky Way Mineral Resource (>0.7g/t)

Resource Category	Tonnes Grade Au (oz)
Indicated Inferred	4,096,000 1.3 165,000 1,898,000 1.2 76,000
Total	5,994,000 1.3 241,000

Note: Figures rounded to nearest 1,000 tonnes, 0.1g/t and 1,000 ounces. Rounding errors may occur.

3

Mineral Resource Commentary

Interpretation and estimation was carried out using all available drilling data. Historic drilling included 409 surface exploration RC holes and 2,450 grade control RC holes. Three hundred and fifty two (352) RAB & Aircore holes were included in the dataset, however these are largely outside the immediate pit, above the mined pit surface or relatively shallow and generally do not influence the resource significantly. Eight historic diamond holes were included. The majority of this drilling was carried out by WMC in the mid to late 1990’s or during mining of the previous Milky Way pit in 1999-2000.

Ramelius drilled a further 61 RC holes (10,296m) and one diamond hole (202m) in late 2015 and early 2016. Drill spacing ranges from high density grade control (8m x 5m), within and immediately below the base of the mined pit, to nominal 25m by 25m in upper areas, to 50m by 50m spacing at depth. New holes were accompanied by appropriate QAQC measures and often form a check of earlier drilling data. All RC holes were logged and sampled on 1m intervals. RC samples were assayed by fire assay at a commercial Perth laboratory. Hole collars were surveyed by DGPS, with downhole surveys by gyro and magnetic tools.

Ramelius engaged recognised industry resource consultants, Optiro Pty Ltd, to assist with the geological modelling and grade estimation. Geological modelling was carried out using Leapfrog software to interpret the main felsic host unit and the complex hangingwall felsic/ultramafic interfingering. The grade domain was further subdivided by weathering. The resultant domains were composited to 1m intervals and topcut to 20 g/t Au. A 5m x 10m x 5m parent block size was used.

Resources are reported above a 0.7 g/t Au lower cut-off, which is near the current estimated economic cut-off for the minesite. Resources have been generated for evaluation by open-pit mining methods. Indicated resources are reported to a maximum depth of 150m and Inferred to 200m. Density values are based on established Mt Magnet values and measurements from the diamond drill core. Initial basic metallurgical tests (bottle rolls) have been conducted and return typical Mt Magnet recovery values. Grade–tonnage figures for various grade cut-offs are shown in Table 2 below;

Table 2: Grade – Tonnage Figures

lower cutoff	Indicated t g/t oz	Inferred t g/t oz	Total t g/t oz
>0.5g/t >0.7g/t >0.9g/t	5,897,000 1.1 200,000 4,096,000 1.3 165,000 2,636,000 1.5 128,000	2,830,000 1.0 94,000 1,898,000 1.2 76,000 1,277,000 1.5 60,000	8,727,000 1.0 294,000 5,994,000 1.3 241,000 3,913,000 1.5 188,000

Detailed Resource information is given in the JORC Table 1 attachment below.

4

==> picture [374 x 77] intentionally omitted <==

==> picture [374 x 76] intentionally omitted <==

==> picture [374 x 76] intentionally omitted <==

==> picture [374 x 77] intentionally omitted <==

Figure 3: Plan view showing new RMS drillholes & geology

==> picture [373 x 342] intentionally omitted <==

Figure 4: Oblique cross section 300° north pit – drilling & geology model. High grade gold mineralisation is shown to lie along the trace of the Milky Way Fault (vertical black line in Figures 4,5 and 6) and will the focus of deeper drilling over the next Quarter.

5

==> picture [374 x 316] intentionally omitted <==

Figure 5: Oblique cross section 300° mid pit – grade model & drilling (RMS holes labelled). Deeper drilling is required to extend the known high grade gold mineralisation down dip along the Milky Way Fault (vertical black line).

==> picture [376 x 332] intentionally omitted <==

Figure 6: Oblique cross section 300° south end of pit – grade model & drilling (RMS holes labelled)

6

==> picture [407 x 294] intentionally omitted <==

Figure 7: 3D sliced view to North – Resource model, Au > 0.8g/t

Competent Person

The information in this report that relates to Mineral Resources is based on information compiled by Rob Hutchison, a Member of the Australasian Institute of Mining and Metallurgy. Rob Hutchison has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking 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’. Rob Hutchison is a full‐time employee of the company and consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Forward Looking Statements

This report contains forward looking statements. The forward looking statements are based on current expectations, estimates, assumptions, forecasts and projections and the industry in which it operates as well as other factors that management believes to be relevant and reasonable in the circumstances at the date such statements are made, but which may prove to be incorrect. The forward looking statements relate to future matters and are subject to various inherent risks and uncertainties. Many known and unknown factors could cause actual events or results to differ materially from the estimated or anticipated events or results expressed or implied by any forward looking statements. Such factors include, among others, changes in market conditions, future prices of gold and exchange rate movements, the actual results of production, development and/or exploration activities, variations in grade or recovery rates, plant and/or equipment failure and the possibility of cost overruns. Neither Ramelius, its related bodies corporate nor any of their directors, officers, employees, agents or contractors makes any representation or warranty (either express or implied) as to the accuracy, correctness, completeness, adequacy, reliability or likelihood of fulfilment of any forward looking statement, or any events or results expressed or implied in any forward looking statement, except to the extent required by law.

7

Appendix A – JORC Table 1 Criteria Milky Way Gold Deposit

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation	JORC Code explanation	JORC Code explanation	Commentary
Sampling	•		Nature and quality of sampling (e.g.	•Sampled by RC drilling with samples collected
techniques			cut channels, random chips, or	as 1m samples and sub-sampled using a riffle or
			specific specialised industry standard	cone splitter to produce≈3kg sub-samples.
			measurement tools appropriate to the	Drillhole locations were designed to cover the
			minerals under investigation, such as	spatial extents of the interpreted mineralisation.
			down hole gamma sondes, or	•Drill hole locations were designed to allow for
			handheld XRF instruments, etc).	spatial spread across the interpreted mineralised
			These examples should not be taken	zone.
			as limiting the broad meaning of	•Standard fire assaying was employed using a
			sampling.	50gm charge with an AAS finish. Trace element
	•		Include reference to measures taken	determination was undertaken using a multi (4)
			to ensure sample representivity and	acid digest and ICP- AES finish.
			the appropriate calibration of any	•A significant proportion of sampling data comes
			measurement tools or systems used.	from historical information generated by Mt
	•		Aspects of the determination of	Magnet Gold (a WMC subsidiary) in the late
			mineralisation that are Material to the	1990’s, prior to open pit mining of the existing
			Public Report.	Milky Way pit. Detailed methodology and QAQC
6 January 2015 • In cases where ‘industry standard’ work has been done this would be				information is generally lacking for this data, however it appears to meet industry standards
			relatively simple (e.g. ‘reverse	of the period and new drilling in 2014/15 by
			circulation drilling was used to obtain	Ramelius (RMS) comprising of 61 RC holes for
			1 m samples from which 3 kg was	10,296m shows good agreement with previous
ISSUED CAPITAL			pulverised to produce a 30 g charge	information.
			for fire assay’). In other cases more
Ordinary Shares:		468M explanation may be required, such as
			where there is coarse gold that has
			inherent sampling problems. Unusual
			commodities or mineralisation types
DIRECTORS			(e.g. submarine nodules) may warrant
			disclosure of detailed information.
CHAIRMAN: Robert Kennedy NON-EXECUTIVEDIRECTORS: Drilling techniques • Drill type (e.g. core, reverse circulation, open-hole hammer, rotary				•RC Drilling was completed using best practice 5 ¾” face sampling RC drilling hammers for all drill
Kevin Lines Michael Bohm CHIEFEXECUTIVE Mark Zeptner	OFFICER: 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,			programmes. •Historical RAB & Aircore drilling was completed within the upper laterite and saprolite zones. •A small number of Diamond Core drillholes were
			whether core is oriented and if so, by	completed. One new NQ hole was completed by
			_what method, etc). _	Ramelius(RMS)in 2016.
Drill sample	•		Method of recording and assessing	•Bulk RC drill holes samples were visually
recovery			core and chip sample recoveries and	inspected by the supervising geologist to ensure
			results assessed.	adequate clean sample recoveries were
	•		Measures taken to maximise sample	achieved. Any wet, contaminated or poor
			recovery and ensure representative	sample returns are flagged and recorded in the
			nature of the samples.	database to ensure no sampling bias is
	•		Whether a relationship exists between	introduced.
			sample recovery and grade and	•Zones of poor sample return are recorded in the
			whether sample bias may have	database and cross checked once assay results
			occurred due to preferential loss/gain	are received from the laboratory to ensure no
			of fine/coarse material.	misrepresentation of sampling intervals has
				occurred. Excellent RC drill recovery is reported
				from all RC holes.
				•No indication of sample bias is evident or has
				beenestablished
Logging	•		Whether core and chip samples have	•All RC drill samples are geologically logged on
			beengeologically andgeotechnically	site byRMSgeologists. Details on the host

8

	logged to a level of detail to support	lithologies, deformation, dominant minerals
	appropriate Mineral Resource	including sulphide species and alteration
	estimation, mining studies and	minerals plus veining are recorded relationally
	metallurgical studies.	(separately).
	• Whether logging is qualitative or	•Drillhole logging of RC chips is qualitative on
	quantitative in nature. Core (or	visual recordings of rock forming minerals and
	costean, channel, etc) photography.	estimates of mineral abundance.
	• The total length and percentage of the	•The entire length of drillholes are geologically
	relevant intersections logged.	logged
Sub-	• If core, whether cut or sawn and	•Duplicate samples are collected every 25th
sampling	whether quarter, half or all core taken.	sample from the RC chips.
techniques	• If non-core, whether riffled, tube	•Dry RC 1m samples are riffle split to 3-4kg as
and sample	sampled, rotary split, etc and whether	drilled and dispatched to the laboratory. Any
preparation	sampled wet or dry.	wet samples are recorded in the database as
	• For all sample types, the nature,	such and allowed to dry before splitting and
	quality and appropriateness of the	dispatching to the laboratory.
	sample preparation technique.	•All samples are pulverised prior to splitting in the
	• Quality control procedures adopted for	laboratory to ensure homogenous samples with
	all sub-sampling stages to maximise	85% passing 75um. 200gm is extracted by
	representivity of samples.	spatula that is used for the 50gm charge on
	• Measures taken to ensure that the	standard fire assays.
	sampling is representative of the in	•RC samples submitted to the laboratory are
	situ material collected, including for	sorted and reconciled against the submission
	instance results for field	documents. In addition to duplicates a high
	duplicate/second-half sampling.	grade or low grade standard is included every
	• Whether sample sizes are appropriate	25thsample, a controlled blank is inserted every
	to the grain size of the material being	100thsample. The laboratory uses their own
	sampled.	internal standards and duplicates to ensure
		quality control is maintained.
		•The sample size is considered appropriate for
		the type, style, thickness and consistency of
		mineralisation.
Quality of assay data	• The nature, quality and appropriateness of the assaying and	•The fire assay method is designed to measure the total gold in the sample. The technique
and	laboratory procedures used and	involves standard fire assays using a 50gm
laboratory	whether the technique is considered	sample charge with a lead flux (decomposed in
tests	partial or total.	the furnace). The prill is totally digested by HCl
	• For geophysical tools, spectrometers, handheld XRF instruments, etc, the	and HNO3acids before measurement of the gold content by AAS.
	parameters used in determining the	•No field analyses of gold grades are completed.
	analysis including instrument make	Quantitative analysis of the gold content and
	and model, reading times, calibrations	trace elements is undertaken in a controlled
	factors applied and their derivation,	laboratory environment.
	etc.	•Industry best practice is employed with the
	• Nature of quality control procedures	inclusion of duplicates and standards as
	adopted (e.g. standards, blanks,	discussed above, and used by Ramelius as well
	duplicates, external laboratory checks)	as the laboratory. All Ramelius standards and
	and whether acceptable levels of	blanks are interrogated to ensure they lie within
	accuracy (i.e. lack of bias) and	acceptable tolerances. Additionally, sample
	precision have been established.	size, grind size and field duplicates are
		examined to ensure no bias to gold grades
		exists.
Verification	• The verification of significant	•Alternative Ramelius personnel have inspected
of sampling	intersections by either independent or	the RC chips in the field to verify the correlation
and	alternative company personnel.	of mineralised zones between assay results and
assaying	• The use of twinned holes.	lithology, alteration and mineralisation.
	• Documentation of primary data, data	•All holes are digitally logged in the field and all
	entry procedures, data verification,	primary data is forwarded to Ramelius’
	data storage (physical and electronic)	Database Administrator (DBA) in Perth where it
	protocols.	is imported into Datashed. Assay data is
	• Discuss any adjustment to assay data.	electronicallymerged when received from the

9

		laboratory. The responsible project geologist
		reviews the data in the database to ensure that it
		is correct and has merged properly and that all
		the drill data collected in the field has been
		captured and entered into the database
		correctly.
		•The responsible geologist makes the DBA
		aware of any errors and/or omissions to the
		database and the corrections (if required) are
		applied in the database immediately.
		•No adjustments or calibrations are made to any
		of the assaydata recorded in the database.
Location of data points	• Accuracy and quality of surveys used to locate drill holes (collar and down-	•Hole collars are picked up using accurate DGPS survey control. All downhole surveys are
	hole surveys), trenches, mine	collected using downhole Gyro or digital
	workings and other locations used in	magnetic surveying techniques provided by the
	Mineral Resource estimation.	drilling contractors.
	• Specification of the grid system used.	•All holes are picked up in MGA94 – Zone 50 grid
	• Quality and adequacy of topographic	coordinates.
	control.	•Topographic control is of high quality and
		adequate accuracy.
Data spacing	• Data spacing for reporting of	•Drillholes were planned on a nominal 25 - 50m
and	Exploration Results.	x 50m spacing to adequately cover the core
distribution	• Whether the data spacing and	mineralised zones. Drill locations however are
	distribution is sufficient to establish the	partly restricted by the existing pit. Locations
	degree of geological and grade	and drill orientations vary considerably to
	continuity appropriate for the Mineral	optimise coverage.
	Resource and Ore Reserve estimation	•This spacing is considered adequate to define
	procedure(s) and classifications	the geological and grade continuity of
	applied.	mineralisation although actual spacings do vary
	• Whether sample compositing has	•No sampling compositing has been applied
	been applied.	within keymineralised intervals.
Orientation	• Whether the orientation of sampling	•The drilling is generally drilled orthogonal to the
of data in	achieves unbiased sampling of	interpreted strike of the target horizon. However
relation to	possible structures and the extent to	a number of holes have varied directions.
geological structure	which this is known, considering the deposit type.	•No drilling orientation and/or sampling bias is evident
	• 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 reported if
	material.
Sample	• The measures taken to ensure sample	•All bagged RC samples are delivered from the
security	security.	field to the assay laboratory in Perth, whereupon
		the laboratory checks the physically received
		samples against Ramelius’ sample
		submission/dispatch notes and confirmations
		sent
Audits or	• The results of any audits or reviews of	•Sampling techniques and procedures are
reviews	sampling techniques and data.	reviewed prior to the commencement of new
		work programmes to ensure adequate
		procedures are in place to maximise the sample
		collection and sample quality on new projects.
		No external audits have been completed to date.

10

Section 2 Reporting of Exploration Results

Criteria	JORC Code explanation	Commentary
Mineral	• Type, reference name/number,	•The results presented in this report are on
tenement	location and ownership including	granted Mining Lease (ML) 58/136 (Mount
and land	agreements or material issues with	Magnet – Milky Way) owned 100% by Ramelius
tenure status	third parties such as joint ventures,	Resources Limited. The tenement is located on
	partnerships, overriding royalties,	pastoral/grazing leases.
	native title interests, historical sites,	•At this time all the tenements are in good
	wilderness or national park and	standing. There are no known impediments to
	environmental settings.	obtaining a licence to operate in the area.
	• The security of the tenure held at the
	time of reporting along with any known
	impediments to obtaining a licence to
	operate in the area.
Exploration	• Acknowledgment and appraisal of	•Exploration by other parties has been reviewed
done by	exploration by other parties.	and is used as a guide to Ramelius’ exploration
other parties		activities. Previous parties have completed
		shallow RAB, Aircore, RC drilling and shallow
		open pit mining at Milky Way plus geophysical
		data collectionandinterpretation.
Geology	• Deposit type, geological setting and	•The mineralisation at Milky Way is typical of
	style of mineralisation.	porphyry hosted orogenic structurally controlled
		Archaean gold lode systems. The mineralisation
		is controlled by anastomosing shear zones
		passing through competent rock units, brittle
		fracture and stockwork mineralisation is
		common in the competent porphyry rock. The
		bedrock Milky Way mineralisation currently
		extends over several hundred metre strike
		length and dips steeply eastwards along the
		eastern flank of the NE striking Milky Way
		Porphyry. The plunge of the system is yet to be
		determined.
Drill hole	• A summary of all information material	•All the drill holes reported in recent releases
Information	to the understanding of the	have been included the following information.
	exploration results including a tabulation of the following information	•All drillholes reported, including those with no significant results.
	for all Material drill holes: o easting and northing of the drill	•Easting and northing in MGA94 coordinates •RL is AHD
	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	•Dip is the inclination of the hole from the horizontal. Azimuth is reported in magnetic degrees as the direction the hole is drilled. MGA94 and magnetic degrees vary by≈1°in the project area •Down hole length is the distance measured along the drill hole trace. Intersection length is the thickness of an anomalous gold intersection measured along the drill hole trace. •Hole length is the measured distance along the drill hole trace.
	exclusion does not detract from the understanding of the report, the	•No information is excluded
	Competent Person should clearly
	explain why this is the case.

11

Criteria	JORC Code explanation	Commentary
Data	• In reporting Exploration Results,	•Weighted average techniques are applied to
aggregation	weighting averaging techniques,	determine the grade of the anomalous interval
methods	maximum and/or minimum grade	when geological intervals less than 1m have
	truncations (e.g. cutting of high	been sampled.
	grades) and cut-off grades are usually	•Gold intersections are nominally reported above
	Material and should be stated.	0.5g/t, but may include up to 4m of internal 0.1 -
	• Where aggregate intercepts	0.5g/t dilution which is still considered
	incorporate short lengths of high	significant within the broader mineralised felsic
	grade results and longer lengths of	porphyry
	low grade results, the procedure used	•No metal equivalent reporting is used or
	for such aggregation should be stated	required.
	and some typical examples of such
	aggregations should be shown in
	detail.
	• The assumptions used for any
	reporting of metal equivalent values
	should be clearly stated.
Relationship between	• These relationships are particularly important in the reporting of	•The intersection length is measured down the length of the hole and is not usually the true
mineralisatio	Exploration Results.	width
n widths and intercept	• If the geometry of the mineralisation with respect to the drill hole angle is	•True widths are variable given the varied drill angles. For the majority of intercepts true widths
lengths	known, its nature should be reported.	are around 60-80% of reported intervals.
	• If it is not known and only the down
	hole lengths are reported, there
	should be a clear statement to this
	effect (e.g. ‘down hole length, true
	_width not known’). _
Diagrams	• Appropriate maps and sections (with	•Representative maps and sections are shown
	scales) and tabulations of intercepts	attached
	should be included for any significant
	discovery being reported These
	should include, but not be limited to a
	plan view of drill hole collar locations
	and appropriate sectional views.
Balanced reporting	• Where comprehensive reporting of all Exploration Results is not practicable,	•All drillhole intercepts completed by RMS were reported in previous ASX releases in 2015 and
	representative reporting of both low	2016
	and high grades and/or widths should
	be practiced to avoid misleading
	reporting of Exploration Results.
Other	• Other exploration data, if meaningful	•No other exploration data that has been
substantive	and material, should be reported	collected is considered meaningful and material
exploration	including (but not limited to):	to this report
data	geological observations; geophysical
	survey results; geochemical survey
	results; bulk samples – size and
	method of treatment; metallurgical test
	results; bulk density, groundwater,
	geotechnical and rock characteristics;
	potential deleterious or contaminating
	substances.
Further work	• The nature and scale of planned	•Future exploration includes further step out
	further work (e.g. tests for lateral	drilling below and along strike of the reported
	extensions or depth extensions or	intersections at Milky Way to better define the
	large-scale step-out drilling).	extent of the mineralisation discovered to date
	• Diagrams clearly highlighting the
	areas of possible extensions,
	including the main geological
	interpretations and future drilling

12

	Criteria	JORC Code explanation	Commentary
		areas, provided this information is not
		commercially sensitive.
	ection 3 Estimation and Reporting of Mineral Resources
	Criteria	JORC Code explanation	Commentary
	Database	• Measures taken to ensure that data	•Data has been sourced from the RMS Drillhole
	integrity	has not been corrupted by, for	Database using the Datashed system
		example, transcription or keying	•Validation checks were conducted for
		errors, between its initial collection	overlapping intervals, duplicate assays, EOH
		and its use for Mineral Resource	depth and negative or zero assay values
		estimation purposes.
		• Data validation procedures used.
	Site visits	• Comment on any site visits	•The Competent Person has visited the site and
		undertaken by the Competent Person and the outcome of those visits.	confirmed observations available in drill cuttings and surface features.
		• If no site visits have been undertaken
		indicate why this is the case.
	Geological	• Confidence in (or conversely, the	•Confidence in the geological interpretation is
	interpretation	uncertainty of) the geological	high. The geometry and nature of
		interpretation of the mineral deposit.	mineralisation is similar to neighbouring
		• Nature of the data used and of any	deposits in the region
		assumptions made.	•Data used includes drilling assays & logging
		• The effect, if any, of alternative	from broader spaced exploration/resource
		interpretations on Mineral Resource	drilling and high density grade control drilling
		estimation.	•No alternate interpretation envisaged
		• The use of geology in guiding and	•Geology forms a significant component in the
		controlling Mineral Resource	Mineral Resource modelling & estimation
		estimation.	•Continuity is affected by the location and
		• The factors affecting continuity both	geometry of the felsic porphyry host units and
		of grade and geology.	drilling density
	Dimensions	• The extent and variability of the	•The main Milky Way felsic unit extends for
		Mineral Resource expressed as	around 450m in strike (trend 015°- 030°), is
		length (along strike or otherwise),	around 150m wide in the core and narrower
		plan width, and depth below surface	toward strike ends. The unit dips SE at around
		to the upper and lower limits of the	65-75°.
		Mineral Resource.	•The felsic unit is variably mineralised with most
			economic material occurring in 5-50m wide,
			east dipping zones, adjacent to the eastern
			margin of the unit.
	Estimation	• The nature and appropriateness of	•A categorical +0.2 g/t indicator was kriged
	and modelling	the estimation technique(s) applied	within felsic units to generate a mineralised
	techniques	and key assumptions, including	grade domain
		treatment of extreme grade values,	•Grade within the domain was then estimated by
		domaining, interpolation parameters	geological software using ordinary kriging
		and maximum distance of	methods within hard bounded oxidation
		extrapolation from data points. If a	domains.
		computer assisted estimation method	•Grade tonnage figures exist for previous
		was chosen include a description of	models. These are difficult to compare except
		computer software and parameters	on a global basis.
		used.	•Only gold is estimated
		• The availability of check estimates, previous estimates and/or mine	•No deleterious elements present •Parent cell of 10mN x 5mE x 5mRL with sub-
		production records and whether the	cells to minimum of 2.5mN x 2.5mE x 2.5mRL
		Mineral Resource estimate takes	ratio. Parent cell estimation only.

Section 3 Estimation and Reporting of Mineral Resources

13

	appropriate account of such data.	•The parent cell is assumed to match a selective
	• The assumptions made regarding	mining unit.
	recovery of by-products.	•Domains were geostatistically analysed and
	• Estimation of deleterious elements or	assigned appropriate search directions, top-
	other non-grade variables of	cuts and estimation parameters. Note: higher
	economic significance (e.g. sulphur	grade indicators do not show good continuity
	for acid mine drainage	and parameters have been adopted from the
	characterisation).	global mineralised population.
	• In the case of block model	•Separate grade interpretation for flat lying
	interpolation, the block size in relation	transported and oxidised domains
	to the average sample spacing and	•Samples were composited within ore domains
	the search employed.	to 1m lengths
	• Any assumptions behind modelling of	•Top cuts were applied to domains after review
	selective mining units.	of grade population characteristics. A cut of
	• Any assumptions about correlation	20g/t was applied to the main felsic fresh
	between variables.	domain
	• Description of how the geological	•Validation included visual comparison against
	interpretation was used to control the	drillhole grades
	resource estimates.
	• Discussion of basis for using or not
	using grade cutting or capping.
	• The process of validation, the
	checking process used, the
	comparison of model data to drill hole
	data, and use of reconciliation data if
	available.
Moisture	• Whether t e tonnages are estimated	•Tonnages are estimated on a dry basis
	on a dry basis or with natural
	moisture, and the method of
	determination of the moisture content.
Cut-off	• The basis of the adopted cut-off	•A 0.7 g/t grade cut-off has been used for
parameters	grade(s) or quality parameters	resource reporting
	applied.
Mining factors	• Assumptions made regarding	•Resources are reported on the assumption of
or	possible mining methods, minimum	mining by conventional open pit grade control
assumptions	mining dimensions and internal (or, if	and mining methods. Block size and estimation
	applicable, external) mining dilution. It is always necessary as part of the	methodology were selected to generate a model appropriate for current open pit mining
	process of determining reasonable	practices at Mt Magnet.
	prospects for eventual economic
	extraction to consider potential mining
	methods, but the assumptions made
	regarding mining methods and
	parameters when estimating Mineral
	Resources may not always be
	rigorous. Where this is the case, this
	should be reported with an
	explanation of the basis of the mining
	assumptions made.
Metallurgical	• The basis for assumptions or	•A number of RC ore samples were composited
factors or	predictions regarding metallurgical	and tested in bottle roll leach tests. Results are
assumptions	amenability. It is always necessary as	similar to other Mt Magnet deposits with a
	part of the process of determining	recovery of 92% used for all material.
	reasonable prospects for eventual	•Further external testwork is underway
	economic extraction to consider
	potential metallurgical methods, but
	the assumptions regarding
	metallurgical treatment processes
	andparameters made when reporting

14

	Mineral Resources may not always
	be rigorous. Where this is the case,
	this should be reported with an
	explanation of the basis of the
	metallurgical assumptions made.
Environmental factors or	• Assumptions made regarding possible waste and process residue	•The existing pit is located in the current Mt Magnet mining field where mining disturbance
assumptions	disposal options. It is always	is significant.
	necessary as part of the process of determining reasonable prospects for	•Specific Mining Approvals are yet to be sought. •No significant environmental impacts or delays
	eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the	are anticipated •Treatment and tailings generation would occur at the Mt Magnet Checker mill.
	determination of potential
	environmental impacts, particularly
	for a greenfields project, may not
	always be well advanced, the status
	of early consideration of these
	potential environmental impacts
	should be reported. Where these
	aspects have not been considered
	this should be reported with an
	explanation of the environmental
	assumptions made.
Bulk density	• Whether assumed or determined. If	•Densities used are assumed based on those
	assumed, the basis for the	used in Mt Magnet deposits 30km to the south
	assumptions. If determined, the	and are assigned by weathering and material
	method used, whether wet or dry, the	type
	frequency of the measurements, the	•Density measurements are planned to be
	nature, size and representativeness	completed when diamond core holes are drilled
	of the samples.
	• The bulk density for bulk material
	must have been measured by
	methods that adequately account for
	void spaces (vugs, porosity, etc),
	moisture and differences between
	rock and alteration zones within the
	deposit.
	• Discuss assumptions for bulk density
	estimates used in the evaluation
	process of the different materials.
Classification	• The basis for the classification of the	•The resource has been classified as Indicated
	Mineral Resources into varying	or Inferred category’s based on geological
	confidence categories.	continuity, drillhole spacing, search pass and
	• Whether appropriate account has	kriging variance.
	been taken of all relevant factors (ie	•The resource classification accounts for all
	relative confidence in tonnage/grade	relevant factors
	estimations, reliability of input data,	•The classification reflects the Competent
	confidence in continuity of geology	Person’s view
	and metal values, quality, quantity
	and distribution of the data).
	• Whether the result appropriately
	reflects the Competent Person’s view
	of the deposit.
Audits or	• The results of any audits or reviews	•An external review of the Resource has not
reviews	of Mineral Resource estimates.	been undertaken

15

Discussion of	•	Where appropriate a statement of the	•Confidence in the relative accuracy of the
relative		relative accuracy and confidence	estimates is reflected by the classifications
accuracy/		level in the Mineral Resource	assigned
confidence		estimate using an approach or	•The estimate is a global estimate
		procedure deemed appropriate by the Competent Person. For example, the	•Some comparison to historic grade control data and global production figures was made. The
		application of statistical or	existing Milky Way pit mined in 1999/2000 is
		geostatistical procedures to quantify	recorded as producing 626,723 t @ 1.64 g/t for
		the relative accuracy of the resource	33,073 oz.
		within stated confidence limits, or, if
		such an approach is not deemed
		appropriate, a qualitative discussion
		of the factors that could affect the
		relative accuracy and confidence of
		the estimate.
	•	The statement should specify
		whether it relates to global or local
		estimates, and, if local, state the
		relevant tonnages, which should be
		relevant to technical and economic
		evaluation. Documentation should
		include assumptions made and the
		procedures used.
	•	These statements of relative
		accuracy and confidence of the
		estimate should be compared with
		production data, where available.

16