RAND MINING LIMITED — Interim / Quarterly Report 2016

Jan 28, 2016

EKJV Exploration Report

ASX ANNOUNCEMENT

29 January 2016

Australian Securities Exchange Code: RND

December 2015 Quarter

Rand Mining Ltd (ASX code: RND) has pleasure in providing the Quarterly EKJV Exploration Report dated 28 January 2016.

For further information please contact:

Board of Directors:

Mr Otakar Demis Chairman and Joint Company Secretary

Roland Berzins

E: rberzins@gcpcapital.com.au

Ph: +61 8 9474 2113

Mr Anton Billis Managing Director

Mr Gordon Sklenka Non-Executive Director

Mr Roland Berzins Joint Company Secretary

==> picture [170 x 281] intentionally omitted <==

----- Start of picture text -----

Suite G1, 49 Melville Parade
South Perth WA 6151
T: +61 8 9474 2113
F: +61 8 9367 9386
E: info@randmining.com.au
W: www.randmining.com.au
ABN: 41 004 669 658
----- End of picture text -----

==> picture [188 x 62] intentionally omitted <==

EAST KUNDANA JOINT VENTURE

==> picture [468 x 312] intentionally omitted <==

DECEMBER 2015 QUARTERLY EKJV EXPLORATION REPORT

For distribution to JV Partners:

• Northern Star Resources Limited

• Tribune Resources Limited

• Rand Mining Limited

==> picture [122 x 40] intentionally omitted <==

1 SUMMARY

A total of 920.8m was drilled during December quarter with one diamond rig at the Lunar Duck and Falcon Prospects. In all, 5,247 samples were taken, the majority of which was drilled in the previous quarter.

			RC Drill	No.	DD Drill	No.
Project	Prospect	Tenement					Comments
			Metres	Samples	Metres	Samples
EKJV	Pegasus	M16/309	-	-	-	1,081
EKJV	Raleigh Corridor	M16/309	-	-	-	97
EKJV	Falcon	M16/309	-	-	366	2,446
EKJV	Lunar Duck	M16/309	-	-	554.8	476
EKJV	Ambition	M16/181	-	-	-	1,147
	Total		-	-	920.8m	5,247

Table 1 - EKJV Drilling Summary for the Quarter.

1.1 Pegasus Prospect Locations

The prospect locations as referred to in this report are presented in Figure 1.

==> picture [446 x 223] intentionally omitted <==

Figure 1 - Long Section of the Pegasus Deposit showing the Local Prospect Names.

1.2 Schematic Kundana Cross Section

A schematic cross section of the Kundana field is presented in Figure 2 with the conceptual positions of mineralisation shown in red (Pegasus K2), orange (Falcon) and pink (Strzelecki structure). References throughout this report are made to these mineralisation locations; namely K2, K2E, K2B, Pode, K2A and Falcon.

EKJV Quarterly Report – December 2015

Page 2

==> picture [122 x 40] intentionally omitted <==

==> picture [440 x 244] intentionally omitted <==

Figure 2 - Schematic Cross Section of the Kundana EKJV Deposits showing Mineralisation Positions (Red and Orange).

2 DRILLING

2.1 October

A total of 83.8m was drilled during October with one diamond rig at the Lunar Duck prospect ( Table 2 ). Drilling consisted of one diamond tail on an RC hole (abandoned early due to difficult ground conditions), part of a drill testing program initially drilled in August at Lunar Duck.

2.1.1 Lunar Duck

The initial Lunar Duck drill testing program, completed in August, consisted of seven RC holes targeting the K2B and K2 structures between 200m and 300m depth along a 300m strike length. A secondary aim was to test for possible extensions of the Pode structure to the north of Drake.

One hole, LDRC15006 ( Figure 3 ), was abandoned early at 186.2m due to ground conditions and did not intersect the K2 structure. A diamond tail, drilled in mid-October to a depth of 270m, intersected a two metre zone consisting of several thin laminated quartz veins, shale and strong, silicified fine grained sediments. The quartz veining contained strong sphalerite and minor arsenopyrite mineralisation.

2.2 November

No drilling occurred at any of the EKJV projects in November.

2.3 December

A total of 837m was drilled at EKJV prospects during December with 471m drilled at Lunar Duck and 366m drilled at Falcon.

2.3.1 Lunar Duck

Two diamond holes were drilled at Lunar Duck for a total of 471m (Table 2, Figure 3.). The two holes followed up on the initial September drill program, a seven hole program, that tested an area of the K2 structure between the Drake and Moonbeam prospects that had no previous drilling. The initial seven holes intersected weak to moderate mineralisation but failed to find any economic zones.

EKJV Quarterly Report – December 2015

Page 3

==> picture [122 x 40] intentionally omitted <==

The two new holes, LDDD15008 and LDDD15009, targeted down dip of the best intercepts from the initial program to ensure no narrow, high grade had been missed. LDDD15008 intersected several zones of interesting alteration and shearing with a thin 5cm laminated quartz vein on the K2 structure which was accompanied by three metres of strong silica alteration and fine sulphides. LDDD15009 intersected many planar quartz veins throughout the Victorious Basalt and irregular quartz veining on the K2 structure.

2.3.2 Falcon

One diamond hole was drilled at the northern Falcon prospect for a total of 366m (Table 2, Figure 3). The hole was the final in a drill testing program targeting gold mineralisation along strike of the economic intercepts discovered in southern Falcon in early 2015. The drill program consisted of seven RC holes drilled in August, with the final diamond hole drilled to gain textural and structural data.

FLDD15010 targeted the intermediate volcanoclastic unit and the upper portion of the Bent Tree Basalt but failed to intersect any significant structures or gold mineralisation.

Hole ID	Tenement	Start Date	End Date	Depth	East Local)	North (Local)	RL (Local)	Hole Type	Dip	Azimuth (Local)
LDRC15006	M16/309	12Oct 15	13 Oct 15	270m(83.8m tail)	9598	18571	6347	DD	-58	85
LDDD15008	M16/309	7 Dec 15	11 Dec 15	279	9613	18499	6346	DD	-60	85
LDDD15009	M16/309	9 Dec 15	11 Dec 15	192	9676	18576	6346	DD	-60	86
FLDD15010	M16/309	12 Dec15	17Dec15	366	9472	18252	6343	DD	-63	82

Table 2 - Lunar Duck, Falcon and Pegasus drilling details for the quarter. Local grid is the K10 mine grid.

3 RESULTS

3.1 October

3.1.1 Pegasus

Results were returned for three Pegasus holes in October (Table 3, Figure 3). All three holes were a part of a resource definition program infilling the Polaris zone in northern Pegasus. Complete results were returned for PGDD15021, PGDD15022 and partial results were returned for PGDD15030. Results are still pending for the remainder of PGDD15030 (the K2 structure).

PGDD15021 intersected a wide, well mineralised zone that encompassed significant gold mineralisation in the Victorious Basalt, K2E and K2 structures. The veining in the Victorious Basalt was especially well mineralised with strong arsenopyrite and visible gold mineralisation throughout an eight metre wide zone approaching the hangingwall contact of the Centenary Shale (K2E). The hole returned a result of 8.0m @ 7.0g/t Au (down hole width from 471.0m) with a wide, low grade Pode also intersected.

PGDD15022 intersected sub economic gold mineralisation on the K2 structure with 7.1m @ 2.5g/t (down hole width from 466.0m). The PGDD15022 intersection is located on the upper edge of the Polaris mineralisation and has further defined the sharp, north plunging edge from high grade to low grade mineralisation in the area. PGDD15021 also returned several thin, high grade intercepts in the Bent Tree Basalt and Victorious Basalt.

EKJV Quarterly Report – December 2015

Page 4

==> picture [122 x 40] intentionally omitted <==

==> picture [440 x 595] intentionally omitted <==

Figure 3 – EKJV drilling location in December quarter (pink) and significant assays received in quarter (yellow). A-B is the schematic cross-section in Figure 2.

EKJV Quarterly Report – December 2015

Page 5

==> picture [122 x 40] intentionally omitted <==

Hole ID	East (Local)	North (Local)	RL (Local)	Dip	Azi (Local)	Hole Depth	From (m)	To (m)	Width (m)	Grade (g/t)	Zone
PGDD15020	9517	17309	6347	-64	89	42.0	22.0	26.2	4.2	1.38	IVT(Falcon?)
							34.4	35.1	0.7	9.72	IVT(Falcon?)
PGDD15021	9609	17235	6343	-64	86	492.0	223.0	228.0	5.0	1.80	Pode
							408.7	409.8	1.1	10.2	MBP veins
							471.0	491.0	20.0	4.30	K2E and K2
PGDD15022	9577	17334	6349	-62	92	`531.0	247.7	249.0	1.3	7.60	Pode
							412.2	412.5	0.4	30.9	Veining in MB
							447.5	447.7	0.2	15.2	Veining in MBP
							450.2	450.3	0.2	34.2	Veining in MBP
							466.0	473.1	7.1	2.52	K2
PGDD15023	9658	17305	6340	-65	91	421.0	191.6	193.4	1.8	3.58	Pode
							395.0	395.5	0.5	4.78	K2E
PGDD15026	9492	171332	6344	-71	87	294.0	61.9	65.7	3.8	2.00	Sediments with strong alteration and aspy.
							279.7	280.2	0.5	20.9	Strong shear zone with veiningin MB
PGDD15028	9407	17175	6343	-64	87	462.0 Incl.	188.7	198.0	9.3	26.2	Falcon quartz veins
							188.7	192.3	3.6	62.9	Falcon qtz veins
PGDD15029	9368	17229	6343	-65	91	951.0	308.0	308.7	0.7	10.8	Falcon qtz veins
							462.4	463.6	1.2	2.27	Pode
							589.9	597.2	7.2	2.92	Pode
PGDD15030	9518	17309	6348	-64	89	611.6 Incl.	250.0	251.0	1.0	18.3	Veining in MB
							294.0	295.0	1.0	11.0	MB veining
							466.0	473.1	7.1	2.52	K2
							538.0	554.0	16.0	4.54	MBP veining
							566.0	594.4	28.4	5.51	MBP veins/K2
							585.0	592.5	7.5	11.5	K2

Table 3 - Significant intercepts for Pegasus and Falcon returned during the quarter. Local grid is the K10 mine grid. MBP = Victorious basalt; MB = Bent tree basalt; aspy = Arsenopyrite.

3.1.2 Falcon

Assay results were returned for one Falcon hole in October (Table 3, Figure 3). PGDD15026 is the first of a five hole drill testing program in central Falcon targeting potential quartz veining and shear zones in the hangingwall volcanoclastics and the K2A structure approximately 300m west of the Pegasus prospect.

PGDD15026 intersected andesitic lavas, intercalated mudstones and fine grained sandstones and volcanoclastics rocks (all part of the Spargoville Formation) before ending in the Bent Tree Basalt with several zones of low grade gold mineralisation throughout the hole. All mineralisation intersected was within the mudstone/sandstone units and was accompanied by strong biotite-sericite alteration and arsenopyrite mineralisation. Trace visible gold was observed in quartz-carbonate veins on two occasions, but failed to return economic results. Despite no economic intercepts, the results provide valuable information into the potential hosts of mineralisation, allowing for more targeted follow up drill programs.

Thin, but high grade mineralisation, was also intercepted in a strongly altered shear zone accompanied by laminated quartz veining in the Bent Tree Basalt.

3.2 November

In November, assay results were returned for five holes from Pegasus, Ambition, Raleigh Corridor and Lunar Duck prospects.

EKJV Quarterly Report – December 2015

Page 6

==> picture [122 x 40] intentionally omitted <==

3.2.1 Pegasus

Results were received for two holes, PGDD15023, and PGDD15030, in November (Table 3, Figure 3.). Both holes targeted the Pode and K2 structures in the Polaris zone with the aim of infilling the area to improve confidence within the Indicated Resource. Assays are pending for one more hole, PGDD15020, in the Polaris zone that was abandoned due to excessive deviation but intersected significant veining in the saprolite zone.

PGDD15023 intersected the K2 structure on the boundary between the upper Polaris and lower Arcas zones. This area has a sudden decrease in grade on the K2 structure up dip from the well mineralised Polaris area to the poorly mineralised Arcas area (though Arcas is well mineralised on the Pode structure). PGDD15023 did not intersect any significant mineralisation on the K2 structure, helping to further define the sudden change in grade at the boundary, but did intersect sub-economic grades on the K2E and Pode structures.

PGDD15030 targeted the central Polaris zone and returned extremely strong results. Two thin zones of high grade, narrow quartz veining were intersected in the Bent Tree Basalt associated with strong biotite alteration and weak shearing. Two wide zones of sheared, bucky quartz veining with strong biotite/sericite alteration and shearing were intersected within the Victorious Basalt with the second zone merging with a thin, but very high grade, K2 structure (K2 quartz vein 0.5m @ 42.3g/t). The two zones of 16.0m and 28.4m were mineralised throughout with higher grade zones within them. The Centenary Shale was absent with the K2 laminated vein on the contact of the Victorious Basalt and the footwall volcanoclastics (Figure 4).

==> picture [439 x 180] intentionally omitted <==

==> picture [440 x 180] intentionally omitted <==

Figure 4 - PGDD15030 K2 laminated quartz vein on the sheared contact of the Victorious basalt and volcanoclastics.

3.2.2 Raleigh Corridor

Assays were returned for the final hole, RRDD15012, from the Raleigh corridor drill testing program. No significant results were returned.

EKJV Quarterly Report – December 2015

Page 7

==> picture [122 x 40] intentionally omitted <==

3.2.3 Lunar Duck

Partial results were returned for the diamond tail of the final hole, LDCD15006, in November (Table 4). The diamond tail was drilled as the original RC hole was abandoned early due to excessive channel sands bogging the rods. Screen fire assay results were returned for the K2 structure however the fire assay results for the remaining samples surrounding the K2 structure are still pending. These will be reported when all results have been received.

3.2.4 Ambition

Results were returned for one Ambition hole in November, AMDD15039 (Table 5).

AMDD15039 intersected a 1.5m thick, well mineralised, laminated quartz vein with common fine disseminated visible gold and strong galena and sphalerite mineralisation. The marginally economic intercept of 1.5m @ 12.7g/t (DHW) was less than expected and umpire assays are being considered.

3.3 December

Assay results were returned for six holes in December from the Pegasus, Ambition, Falcon, and Lunar Duck prospects.

3.3.1 Pegasus

Results were returned for one short Pegasus hole, PGDD15020, in December (Table 3, Figure 3). PGDD15020 targeted the Polaris zone on the K2 structure but was abandoned at 42m due to excessive deviation and subsequently redrilled as PGDD15030. However, it intersected significant veining in the saprolite/saprock zone returning a wide, low grade intercept (4.2m @ 1.38g/t from 22m) and one narrow, high grade intercept (0.7m @ 9.72g/t from 34.4m). Both intercepts were hosted in weathered intermediate volcanoclastic rocks.

Results are pending for the end of PGDD15029 targeting the Falcon structures ~300m west of the Pegasus prospect. The hole was extended past the Falcon target to intersect the K2 structure due to its favourable location (the hole intersected the K2 structure down dip of the Polaris mineralisation in an area with no previous drilling).

3.3.2 Falcon

Assay results were returned for two Falcon holes, PGDD15028 and PGDD15029 (Table 3, Figure 3). Both holes targeted sheared quartz veining in the intermediate volcanoclastic rocks west of the K2A structure (the lithological contact between the volcanoclastics and the Bent Tree Basalt to the east) approximately 300m west of Pegasus.

PGDD15028 intersected a wide zone of quartz veining hosted in strongly sheared and tightly folded volcanoclastics with strong mineralisation and alteration which returned a total result of 9.3m @ 26.2g/t. Visible gold was observed over a three metre wide section with one 40cm zone containing intense visible gold. This high grade core returned 3.6m @ 62.9g/t with the thin zone with intense visible gold returning 0.4m @ 515g/t. This intercept is approximately 100m above, and slightly north, of the high grade intercept of 0.4m @ 528g/t from PGDD15018 from early 2015.

PGDD15029, located ~70m southwest of PGDD15028 intersected several small zones of quartz veining in the volcanoclastics, but no wide zones of significant mineralisation with the 0.7m @ 10.8g/t from 308m the highlight.

3.3.3 Lunar Duck

Results were returned for the diamond tail of the final hole, LDCD15006, in December (Table 4, Figure 3). The diamond tail was drilled as the original RC hole was abandoned early due to excessive channel sands bogging the rods. Assay results were returned for the K2 structure in November, however the fire assays results for the remaining samples surrounding the K2 structure were returned in December. The fire assay results were low grade (<1g/t) and did not change the final result, a thin, but moderately mineralised K2 structure.

EKJV Quarterly Report – December 2015

Page 8

==> picture [122 x 40] intentionally omitted <==

Hole ID	East (Local)	North (Local)	RL (Local)	Dip	Azi (Local)	Hole Depth	From	To	Width	Grade g/t Au	Zone
LDCD15006	9598	18571	6347	-58	85	270.0	253.8	254.4	0.6	4.66	K2

Table 4 - Significant intercepts for Lunar Duck returned in December. Local grid is the K10 mine grid.

3.3.4 Ambition

Results were returned for two Ambition holes, AMDD15038 and AMCD15046, in December ( Table 5 ).

AMDD15038 targeted the K2 structure down dip from previous significant intersections, but intersected only weak gold mineralisation on the K2 structure.

AMCD15046 targeted Cochrane stock-work prospect (directly to the west of Ambition) intersecting significant zone of stock-work quartz veining however, assay results indicated only very weak gold mineralisation.

Hole ID	East (Local)	North (Local)	RL (Local)	Dip	Azi (Local)	Hole Depth	From	To	Width	Grade g/t Au	Zone
AMDD15038	9044	25411	6369	-70	99	390.0	317.0	318.0	1.0	2.03	K2
AMDD15039	9022	25107	6367	-60	89	321	294.7	296.2	1.5	12.7	K2
AMCD15046	9044	25411	6369	-60	247	396.0	346.0	348.5	2.5	1.02	Cochrane stock work
							358.0	359.0	1.0	1.01	Cochrane stock work

Table 5 - Significant intercepts for Ambition returned in December Quarter. Local grid is the K10 mine grid.

Competency Statement

The information in this report relating to Exploration Results is based on information compiled by Mr Glenn Grayson who is a Member of the Australian Institute of Mining and Metallurgy and has sufficient exploration experience which is relevant to the style of mineralisation 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’. Mr Grayson is a full time employee of Northern Star Resource Limited and consents to the inclusion in the report of the matters based on this information in the form and context in which it appears (Figures 1 to 4, Tables 1 to 5, JORC Table 1).

EKJV Quarterly Report – December 2015

Page 9

==> picture [122 x 40] intentionally omitted <==

APPENDIX 1

JORC Code, 2012 Edition – Table 1 Pegasus, Drake, Falcon, Raleigh Corridor and Ambition.

Section 1 Sampling Techniques and Data

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

Criteria	JORC Code Explanation	Commentary
Sampling techniques	 Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling.  Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.  Aspects of the determination of mineralisation that are Material to the Public Report.  In cases where ‘industry standard’ work has been done this would be relatively simple (e.g. ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information.	 Sampling was completed using a combination of Reverse Circulation (RC) and Diamond Drilling (DD). RC drilling was used to drill pre-collars were for many of the Resource definition holes with diamond tails. Diamond drilling constitutes the rest of the drilling  Diamond core was transferred to core trays for logging and sampling. Half core samples were nominated by the geologist from both NQ and HQ diamond core, with a minimum sample width of either 20cm (HQ) or 30cm (NQ).  RC samples were split using a rig-mounted cone splitter on 1m intervals to obtain a sample for assay. 4m Composite spear samples were collected for most of each hole, with 1m samples submitted for areas of known mineralization or anomalism.  Samples were taken to Genalysis Kalgoorlie for preparation by drying, crushing to <3mm, and pulverizing the entire sample to <75μm. 300g Pulps splits were then dispatched to Genalysis Perth for 50g Fire assay charge and AAS analysis.
Drilling techniques	 Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc.) and details (e.g. core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and ifso, by what method, etc.).	 Diamond drilling was used from surface. HQ (63.5mm) diameter core was drilled for all resource definition holes, elsewhere both HQ and NQ (50.5mm) diameter core was drilled.  Core was orientated using the Reflex ACT Core orientation system.
Drill sample recovery	 Method of recording and assessing core and chip sample recoveries and results assessed.  Measures taken to maximise sample recovery and ensure representative nature of the samples.  Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	 RC drilling contractors adjust their drilling approach to specific conditions to maximize sample recovery. Moisture content and sample recovery is recorded for each RC sample. No recovery issues were identified during 2013 RC drilling. Recovery was poor at the very beginning of each hole, as is normal for this type of drilling in overburden.  For diamond drilling the contractors adjust their rate of drilling and method if recovery issues arise. All recovery is recorded by the drillers on core blocks. This is checked and compared to the measurements of the core by the geological team. Any issues are communicated back to the drilling contractor.  Recovery was excellent for diamond core and no relationship between grade and recovery was observed. For RC drilling, pre-collars were ended before known zones of mineralization and recovery was very good through any anomalous zones, so no issues occurred.  For RaleighCorridor,the drillingintersectingthe StrzeleckiShear was drilled

EKJV Monthly Report – December 2015

Page 10

==> picture [122 x 40] intentionally omitted <==

Criteria	JORC Code Explanation	Commentary
		HQ3, to retain any possible fault gauge that is commonly present on this structure and can contain significant amounts of gold mineralisation. Normal HQ2 drilling has the possibility of poor recovery of the fault gauge.
Logging	 Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.  Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography.  The total length and percentage of the relevant intersections logged.	 All diamond core is logged for Regolith, Lithology, veining, alteration, mineralisation and structure. Structural measurements of specific features are also taken through oriented zones. All logging is quantities where possible and qualitative elsewhere. A photograph is taken of every core tray.  RC sample chips are logged in 1m intervals. For the entire length of each hole. Regolith, lithology, alteration, veining and mineralisation are all recorded.
Sub-sampling techniques and sample preparation	 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 whether sampled wet or dry.  For all sample types, the nature, quality and appropriateness of the sample preparation technique.  Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.  Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second- half sampling.  Whether sample sizes are appropriate to the grain size of the material being sampled.	 All Diamond core is sawn and half core taken. Almonté core saws are used with core boats ensuring that core is sawn strictly in half for consistent quality of sample. HQ2 sized diamond core is the most appropriate sample for the nature of the mineralisation. The remaining half core is stored for later use.  All RC samples are split using a rig-mounted cone splitter to collect a 1m sample 3-4kg in size. The cone splitters are level ensuring sample quality is consistent and representative of the whole 1m sample. These samples were submitted to the lab from any zones approaching known mineralized zones and from any areas identified as having anomalous gold. Outside of mineralized zones, spear samples were then taken to give a 4m composite sample.  Field duplicates were taken for RC samples at a rate of 1 in 20.  Sample preparation was conducted at Genalysis Kalgoorlie, commencing with sorting, checking and drying at less than 110°C to prevent sulphide breakdown. Samples are jaw crushed to a nominal -6mm particle size. If the sample is greater than 3kg a Boyd crusher with rotary splitter is used to reduce the sample size to less than 3kg (typically 1.5kg) at a nominal <3mm particle size. The entire crushed sample (if less than 3kg) or sub-sample is then pulverized to 90% passing 75μm, using a Labtechnics LM5 bowl pulveriser. 300g Pulp subsamples are then taken with an aluminium scoop and stored in labelled pulp packets.  Grind checks are performed at both the crushing stage (3mm) and pulverising stage (75μm), requiring 90% of material to pass through the relevant size to ensure consistent sample preparation.
Quality of assay data and laboratory tests	 The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.  For geophysical tools, spectrometers, handheld XRF instruments, etc., the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.  Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established.	 A 50g fire assay charge is used with a lead flux, dissolved in the furnace. The prill is totally digested in HCl and HNO3acids before Atomic Absorption Spectroscopy (AAS) determination for gold analysis. This method ensures total gold is reported appropriately.  No geophysical tools were used to determine any element concentrations  Certified Reference Materials (CRMs) are inserted into the sample sequence randomly at a rate of 1 per 20 samples to ensure correct calibration. Any values outside of 3 standard deviations are re-assayed with a new CRM.  Blanks are inserted into the sample sequence at a rate of 1 per 20 samples. Thisisrandom, except wherehighgrademineralisation is expected.Here, a

EKJV Monthly Report – December 2015

Page 11

==> picture [122 x 40] intentionally omitted <==

Criteria	JORC Code Explanation	Commentary
		Blank is inserted after the high grade sample to test for contamination. Failures above 0.2g/t are followed up, and re-assayed. New pulps are prepared if failures remain.  Field Duplicates are taken for all RC samples (1 in 20 sample). No Field duplicates are submitted for diamond core.  All sample QAQC results are assessed by geologists to ensure the appropriate level of accuracy and precision when the results have been returned from the laboratory.
Verification of sampling and assaying	 The verification of significant intersections by either independent or alternative company personnel.  The use of twinned holes.  Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.  Discuss any adjustment to assay data.	 All significant intersections a verified by another geologist during the drill hole validation process, and later by a Competent person to be signed off  No Twinned holes were drilled for this data set  Geological logging was captured using Acquire database software. Both a hardcopy and electronic copy of these are stored. Assay files are received in csv format and loaded directly into the database by the supervising geologist who then checks that the results have inserted correctly. Hardcopy and electronic copies of these are also kept. No adjustments are made to this assay data.
Location of data points	 Accuracy and quality of surveys used to locate drill holes (collar and down- hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.  Specification of the grid system used.  Quality and adequacy of topographic control.	 A planned hole is pegged using a Differential GPS by the field assistants  During drilling single-shot surveys are every 30m to ensure the hole remains close to design. This is performed using the Reflex Ez-Trac system. Upon hole completion, a gyroscopic survey is conducted by ABIMS or Gyro Australia, taking readings every 5m for improved accuracy. This is done in true north.  The final collar is picked up after drill hole completion by Differential GPS in the MGA 94_51 grid.  Good quality topographic control has been achieved through Lidar data and survey pickups of holes over the last 15 years.
Data spacing and distribution	 Data spacing for reporting of Exploration Results.  Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.  Whether sample compositing has been applied.	 Drill hole spacing across the area varies. For the resource definition drilling within Pegasus, spacing is typically 50m x 50m allowing the resource to be graded as an Indicated Resource. For the Pode, drilling spacing was approximately 40m x 40m. The HRPD drilling is more wide spaced, as this is largely unclassified for resource reporting purposes. Spacing is wider than 160m in some areas.  These drill spacings are considered appropriate for the Mineral Resource classifications identified.  No compositing has been applied to these exploration results, although composite intersections are reported.
Orientation of data in relation to geological structure	 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.  If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	 The majority of the structures in the Kundana camp dip steeply (80°) to WSW. The Pode structure has a much shallower dip in a similar direction, approximately 45°. To target these orientations the drill hole dips of 60-70° towards ~060° achieve high angle intersections on all structures.  No sampling bias is considered to have been introduced by the drilling orientation
Sample security	 The measures taken to ensure sample security.	 Prior to laboratory submission samples are stored by Barrick Kanowna in a

EKJV Monthly Report – December 2015

Page 12

==> picture [122 x 40] intentionally omitted <==

Criteria	JORC Code Explanation	Commentary
		secure yard. Once submitted to the laboratories they are stored in a secure fenced compound, and tracked through their chain of custody via audit trails
Audits or reviews	 The results of any audits or reviews of sampling techniques and data.	 No audits or reviews have recently been conducted on sampling techniques.
Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.)
Criteria	JORC Code Explanation	Commentary
Mineral tenement and land tenure status	 Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.  The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	 All holes mentioned in this report are located within the M16/309 and M16/326 Mining leases held by The East Kundana Joint Venture (EKJV). The EKJV is majority owned and managed by Northern Star Resources Ltd (51%). The minority holding in the EKJV is held by Tribune Resources Ltd (36.75%) and Rand Mining Ltd (12.25%).  The tenement on which the Pegasus deposit is hosted (M16/309) is subject to two royalty agreements; however neither of these is applicable to the Pegasus deposit. The agreements that are on M16/309 but not relevant to the Pegasus project are the Kundana‐Hornet Central Royalty and the Kundana Pope John Agreement No. 2602‐13.  No known impediments exist and the tenements are in good standing
Exploration done by other parties	 Acknowledgment and appraisal of exploration by other parties.	HORNET-RUBICON-PEGASUS-DRAKE (HRPD)  The first reference to the mineralization style encountered at the Pegasus project was the mines department report on the area produced by Dr. I. Martin (1987). He reviewed work completed in 1983 – 1984 by a company called Southern Resources, who identified two geochemical anomalies, creatively named Kundana #1 and Kundana #2. The Kundana #2 prospect was subdivided into a further two prospects, dubbed K2 and K2A.  Between 1987 and 1997, limited work was completed.  Between 1997 and 2006 Tern Resources (subsequently Rand and Tribune Resources), and Gilt-edged mining focused on shallow open pit potential which was not considered viable.  In 2011, Pegasus was highlighted by an operational review team and follow-up drilling was planned through 2012.  This report is concerned solely with 2015 drilling that led on from this period. AMBITION  The Ambition target was originally defined by Goldfields Limited in 2001 from magnetic ‘anomalies’ as “a continuation of the Arctic Structure mined in the Arctic Pit to the south” and “The second target area, a further kilometrenorth,ismade up of medium to coarse grained gabbro

EKJV Monthly Report – December 2015

Page 13

==> picture [122 x 40] intentionally omitted <==

Criteria	JORC Code Explanation	Commentary
		consistent with Units 4 to 6 of the Powder Sill, and a conglomeratic sequence to the east”  Late in 2001, a total of 32 RC holes were drilled for 2332m (ARC293- ARC324). ARC296 returned 2m @ 2.67g/t from 56m in carbonaceous shale. Set depth drilling with ARC315 also intersected 2m @ 0.49g/t at the end-of-hole near where the contact is visible in outcrop.  A magnetic high identified from the 1997 aeromagnetic data was named JH1 and modelled in late 2002. The magnetic lineament including this anomaly was drilled with RC holes JHRC001 to JHRC004 in early 2003, but despite the diligent modelling, the targeted structure is offset to the west of the centre of the lineament and these holes therefore missed the targeted contact, drilling only the footwall stratigraphy. RALEIGH CORRIDOR  The Raleigh Corridor prospect includes the Golden Hind, Sir Walter and Wicked Witch targets worked by Tribune Resources, Placer Dome and Barrick Gold in the past. All targets are either the Strzelecki Structure where it juxtaposes volcanogenic wacke against intermediate volcanoclastic rocks or the sub parallel gabbro-wacke intrusive contact.  The original diamond drilling of Golden Hind was by Tribune Resources in the late 1990s, work which was progressed with more diamond drilling by Barrick Gold in 2005 and 2007-8 totalling 15 diamond drill holes  Placer Dome progressed the Sir Walter zone with four diamond holes in 2004-5  Barrick Gold progressed the Wicked Witch part of the prospect with three diamond holes in 2006  The Raleigh Corridor target in its current form was consolidated from multiple small prospects by Barrick Gold geologists in 2012 and advanced with ten diamond drill holes and seven RC holes. These holes returned several high grade intercepts up to around 1000 grammetres leading to the current attention given to the target. FALCON*  The Falcon prospect defines a new exploration project formed in early 2015 and located in the Kundana camp between the Zuleika (K2A) and Strzelecki shear zones.  In 1999 Goldfields Limited conducted a drill testing programme in the northern extent of the prospect, the Juliet prospect, consisting of 21 RC holes and 2 diamond holes, which targeted the K2A structure only, the current eastern border of the Falcon prospect.  Previous exploration in the prospect was minimal, consisting of regional exploration in the form of wide spaced RAB and air core drilling in 2000 and2002by GoldfieldsLimited, and awide100mspacedRC programme

EKJV Monthly Report – December 2015

Page 14

==> picture [122 x 40] intentionally omitted <==

Criteria	JORC Code Explanation	Commentary
		conducted by Barrick Gold in 2012, all focussed on targeting the Strzelecki and Zuleika structures.  All previous exploration failed to identify the mineralisation potential in the intermediate volcanoclastic unit, which was first discovered in several diamond drill holes drilled in early 2015 to target the western extents of the Pegasusprospect.
Geology	 Deposit type, geological setting and style of mineralisation.	 The Kundana camp is situated within the Norseman-Wiluna Greenstone Belt, in an area dominated by the Zuleika shear zone, which separates the Coolgardie domain from the Ora Banda domain. The Zuleika Shear Zone in the Kundana area comprises multiple anastomosing shears the most important of which are the K2, the K2A and Strzelecki shears.  Strzelecki mineralisation (Raleigh Corridor) consists of very narrow, very high grade mineralisation on a laminated vein hosted in the camp-scale Strzelecki Shear which abuts a differentiated mafic intrusive, the Powder Sill Gabbro against intermediate volcanoclastic rocks (Spargoville Formation). A thin ‘skin’ of volcanogenic lithic siltstone-sandstone lies between the gabbro and the Strzelecki shear. Being bound by an intrusive contact on one side and a sheared contact on the other, the thickness of the sedimentary package is highly variable from absent to about forty metres true width.  K2-style mineralisation (Pegasus, Rubicon, Hornet, Drake, and Ambition) consists of narrow vein deposits hosted by shear zones located along steeply- dipping overturned lithological contacts.  At the HRPD deposits, the K2 structure is present along the contact between a black shale unit (Centenary shale) and intermediate volcanoclastic (Spargoville formation).  At Ambition, the K2 structure has the same footwall stratigraphy as the rest of the structure but in the hangingwall is the Powder Sill Gabbro and Volcanogenic siltstone-sandstone.  Minor mineralization, termed K2B, also occurs between the Strzelecki and K2 shears, on the contact between the victorious basalt and Bent Tree Basalt (both part of the regional upper Basalt Sequence).  A 50° W dipping fault offsets this contact and exists as a zone of vein-filled brecciated material hosting the Pode-style mineralisation.
Drill hole Information	 A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length.  If the exclusion of this information is justified on the basis that the information is	 See Tables 2 to 5. Drilling for the December Quarter is listed in Table 2. Significant results returned during the quarter are listed in Tables 3 to 5.  All other information that is material to the EKJV has been reported in previous EKJV reports.

EKJV Monthly Report – December 2015

Page 15

==> picture [122 x 40] intentionally omitted <==

Criteria	JORC Code Explanation	Commentary
	not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case.
Data aggregation methods	 In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.  Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated 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.	 All reported assay results have been length weighted to provide an intersection width. A maximum of 2m of barren material between mineralized samples has been permitted in the calculation of these widths.  No assay results have been top-cut for the purpose of this report. A lower cut- off of 1g/t has been used to identify significant results, although lower results are included where a known ore zone has been intercepted, and the entire intercept is low grade.  No metal equivalent values have been used for the reporting of these exploration results
Relationship between mineralisation widths and intercept lengths	 These relationships are particularly important in the reporting of Exploration Results.  If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.  If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down hole length, true width not known’).	 True widths have been calculated for intersections of the known ore zones, based on existing knowledge of the nature of these structures.  Both the downhole width and true width have been clearly specified when used.
Diagrams	 Appropriate maps and sections (with scales) and tabulations of intercepts 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.	 Appropriate plans and section have been included in the body of this report.
Balanced reporting	 Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	 Both high and low grades have been reported accurately, clearly identified with the drill hole attributes and ‘From’ and ‘To’ depths.
Other substantive exploration data	 Other exploration data, if meaningful and material, should be reported including (but not limited to): 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.	 Metallurgical test work was conducted on 9 Pegasus samples. The results are summarized as follows: o All Pegasus recoveries were above 91% for the leach tests o Gravity gold recovery estimated at 55% o Cyanide consumption 0.62 kg/t; o Lime 2.29 kg/t o Oxygen Consumption 60 g/t per hour o Bond Ball mill work index average 18.1 kWh/t o Bond Abrasion Index average 0.1522
Further work	 The nature and scale of planned further work (e.g. tests for lateral extensions 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.	 Further work in 2015-16 will plan to extend the indicated resource deeper by infill drilling around Drake, Pegasus, Rubicon and Hornet. Advanced exploration work will also attempt to upgrade an area at depth spanning 1km of strike to an inferred resource. The continuation of the K2 trend will continue to be drill tested at depth (Figures 1 and 2 below) below Polaris and along strike of Arcas and the Link Zone.  Further work at Raleigh Corridor is not planned at this stage.  Work at Falcon is continuing, with understanding the stratigraphic sequence andmodelling.Furtherdrillingis plannedfor 2016.

EKJV Monthly Report – December 2015

Page 16

==> picture [122 x 40] intentionally omitted <==

==> picture [731 x 288] intentionally omitted <==

----- Start of picture text -----

Criteria JORC Code Explanation Commentary
 Further work at Ambition will consist of targeting shoot controls on current
mineralisation.
Figure 1. Drill hole Plan Figure 2. Long Section
Drake Drake Pegasus Link Rubicon
Pegasus
Rubicon
Inferred Resource 500m
Development
Hornet
----- End of picture text -----

EKJV Monthly Report – December 2015

Page 17