REACH RESOURCES LIMITED — Capital/Financing Update 2017

May 3, 2017

ASX ANNOUNCEMENT/MEDIA RELEASE

4 th May 2017

Paynes Find Gold Project Re-issue of Historical Exploration Results

As has been previously announced (13th April 2017) Cervantes Corporation Limited (ASX:CVS, "Cervantes") has completed due diligence related to its purchase of the Payne's Find Gold Project from European Lithium Limited (ASX:EUR).

Cervantes is therefore continuing to assess and interpret all technical data with a view to developing an exploration plan.

In accordance with best practice of corporate disclosure to which Cervantes subscribes**, Cervantes** wishes to keep the market informed of this progress and of the potential of the Payne's Find Project. However ASX listing rules dictate that Exploration Results that have been previously published under the JORC Code and signed off by Competent Persons of the day, may not be publicly used by subsequent owners of Mining Properties unless re-certified as being JORC compliant, even if those results have not changed.

The company that undertook much of this work, Payne's Find Gold Limited (ASX:PNE) has since undertaken a significant change in strategic direction and become European Lithium Limited (ASX:EUR) and has removed all announcements related to the Payne's Find Project from its website, although all historical announcements remain on the ASX platform.

As this historical work forms the underpinning of Cervantes investment in the region and its future work program, the company deems it essential that this information is in the public domain in a form that Cervantes can speak to in future announcements. Therefore in accordance with ASX listing guidance, Cervantes is pleased to re-issue Exploration Results from work carried out on the Payne's Find Gold Project, by Payne's Find Gold Limited (ASX:PNE, ASX:EUR), from 2011 through to 2013 and by previous companies but subsequently released by Payne's Find Gold during its ownership of the project.

Cervantes has sought and received sign off for these results from the Competent Person responsible for the previous exploration programs under PNE and who acted as JORC Competent Person for the initial publication of these results.

Previous Exploration Results – Payne's Find Gold Project

The Payne's Find Gold Project was actively explored by Payne's Find Gold from 2011 through 2013. During this period, two phases of drilling were undertaken in 2011 and 2012.

Phase 1

69 Reverse Circulation holes for a total of 3,800m

Phase 2

• 51 Reverse Circulation holes for a total of 5,326m.
• 6 Diamond Drill holes for a total of 1,540m.

Prior to these phases, several other firms had completed drill holes that fell within the area of the Phase 1 program and have been previously reported both by the operating companies and by Payne's Find Gold. These include:

• Hallmark Resources 2002
• Kirkwood Gold NL 1997
• Falcon Australia Limited 1987
• Forsayth Mineral Exploration 1987

Significant Intersections of gold from these various drill campaigns, that have been previously announced by Payne's Find Gold include *:

HPFRC019	20mat1.8g/tfrom20m
HPFRC021	13mat1.4g/tfrom60m
HPFRC025	9mat1.6g/tfrom24m
HPFRC027	11mat0.9g/tfrom83m
PFRC010	10mat1.8g/tfrom18m
PFRC059	6mat2.4g/tfrom39m
PFRC018	6mat1.9g/tfrom20m
PFRC005	6mat1.9g/tfrom28m
PFRC069	5mat1.6g/tfrom26m
PFRC115	7mat2.43g/tfrom115m
PFRC116	12mat6.61g/tfrom10m
PFRC134	3mat8.04g/tfrom45m
PFRC134	3mat5.21g/tfrom140m
PFRC135	3mat8.05g/tfrom77m
PFRC150	4mat6.28g.tfrom79m
PFRC150	6mat3.56g/tfrom120m
PFRC120	3mat92.1g/tfrom41m(incl1mat271g/t)
PFRC142	3mat3.21g/tfrom30m
PFRC133	4mat2.64g/tfrom99m
PFRC112	3mat4.94g/tfrom114m
PFRC135	2mat4.94g/tfrom82m

* Full Results in Appendix 1

Historical Estimates of Mineralization

Despite a long history of mining, no Mineral Resource Estimates compliant with the JORC 2012 code or previous iterations have ever been calculated or published within the Payne's Find Project area.

However, one Historical Estimate of Mineralization was published on the small Pansy Deposit, south of the main Payne's Find field (M59/1957), which was mined up until the mid-1980's.

The deposit was mined as a small pit, extending to a depth of between 4 and 8m, but no reliable production results are available.

Falcon Australia undertook a 22 hole RC drilling program for 795m in 1987 to test the depth extension of mineralization beneath the historical pit, with these data being assessed in a 1987 report that modelled a small Historical Estimate shown below in table 1.

The drill holes within this program were shallow – with the deepest reaching a down hole depth of only 63m. These holes intersected gold mineralization at a maximum depth of some 30m, but with mineralization remaining open at depth.

Report Title	Report Source	Classification	Tonnes	Grade g/t	Oz Au
Summary of the	Alan Peerless – KH	Indicated	18,568	4.28	2,875
Pansy Project,	Morgan and
Payne's Find, for	Associates, 1987.
Falcon Australia	Company Report,
	Open File WAMEX

Table 1. Historical Estimate

Categories of Mineralization

The Historical Estimate outlined in the above report was before the JORC code came into common use and as such the "Indicated" classification quoted is not considered to be reliably comparable to the current JORC 2012 categories. It is not known how this category was defined.

Relevance and Materiality

The Historical Estimate is both relevant and material to Cervantes as a demonstration of the continuation of potentially economic mineralization beneath a previously mined pit. As such, this work represents a high priority exploration target.

Reliability

The Historical Estimate detailed in the above table, was based upon drilling undertaken in 1987 for which no QA/QC records remain.

In addition, Cervantes feels that the Historical Estimate is based upon a geological interpretation that may require modification as a result of additional information that has become available from later drilling in the region.

As such, while the data behind this Historical Estimate is considered reliable, the Historical Estimate requires modification to take into account additional information.

Details of Previous Work Program

This Historical Estimate was based upon assay results from 22 percussion holes drilled in 1987 by Falcon Australia Ltd.

Paper geological logs of the drilling are available but no information is available relating to any QA/QC procedures and it is thus likely that none were undertaken.

Estimation was carried out on the basis of a rudimentary tabular geological interpretation that assumed one broad mineralized zone. It is felt by Cervantes that this interpretation requires modification to take into account later information.

Future Work Programs

Cervantes plans to undertake work programs that, if successful, may move this Historical Estimate into compliance with the JORC 2012 Code.

Subject to funding and regulatory approval, this work program will include:

• Ground magnetic surveys to better define small granitic intrusive bodies that are felt by Cervantes to control mineralization.
• Digitizing of drilling information and development of ore body models
• Additional drilling designed around new structural interpretations.
• Additional drilling at depth
• Implement appropriate QA/QC protocols in accordance with JORC 2012 guidance.

Timing of this work program is subject to regulatory approval of the program by the Western Australian Department of Minerals and Energy, however it is planned that such work may take place in Q3 2017.

The work program will be funded by Cervantes Corporation.

Cautionary Statement

The Historical Estimates are not reported in accordance with the JORC 2012 Code. A qualified person has not completed sufficient work to classify these Historical Estimates as Current Mineral Resources in compliance with the JORC 2012 code. Cervantes plans to carry out an exploration program on the tenement, but it is uncertain that such a program will allow reporting of a Current Resource at Pansy in compliance with the JORC 2012 Code.

Competent Persons Statements

Information contained in this report which relates to historical exploration results for the Payne's Find Project, is based on, and fairly represents, information and supporting documentation compiled by Mr Rodney Dale, a competent person who is a Fellow of the Australasian Institute of Mining and Metallurgy, by CSA Global and Mr Bradley George, on behalf of Mr Rodney Dale.

Mr Dale consults to Cervantes Corporation on a part time basis, and consulted to Payne's Find Gold Limited during its exploration programs from 2011 through 2013. Mr Dale has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken 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 Dale consents to the inclusion in the report of the matters based on this information in the form and context in which it is appears.

Information contained in this report that relates to the summarizing of Historical Estimates is based on information compiled by Mr. Bradley George, a competent person who is a member of the Australian Institute of Geoscientists. Mr. George is an employee of Total Earth Solutions Pty Ltd and consults to Cervantes Gold Limited on a part time basis. Mr. George has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity being undertaken 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. George attests that the information in this announcement related to Historical Estimates is an accurate representation of the available data and studies for the Pansy project. Mr.George consents to the inclusion in the report of the matters based on this information in the form and context in which it is appears.

For Further information please contact:

Collin Vost Executive Chairman (08) 6436 2300 cvost@cervantescorp.com.au

APPENDIX 1

MATERIAL DRILL RESULTS

Paynes Find Gold Project - 2011 Phase 1 Drill Program Signficant Results
Hole ID	North	East	RL.	Azi	Dip		Intersection		Grade (>0.5g/t cutoff)	Comments
	(MGA)	(MGA)	(m)			From	To	Width	Au $(g/t)$
PFRC003	6763979	566851	349	040	$-60$	24	25	1	0.56
						29	30	$\mathbf{1}$	2.38
						36	37	$1,$	0.59
						46	47	$\mathbf{1}$	0.51
PFRC004	6763956	566832	351	040	$-60$	26	27	$\mathbf{1}$	0.75
						33	45	12		$0.80$ incl 1m at 2.36 g/t from 42m
						63	64	1	0.85
						72	73	1	1.54
PFRC005	6763934	566812	351	040	$-60$	28	34	6		1.50 incl 1m at 4.81 g/t from 29m
						47	49	$\overline{c}$	0.60
						55	57	$\overline{2}$	2.90
						85	92	$\overline{7}$	1.10
PFRC006	6764030	566848	349	050	-60	16	18	$\overline{2}$	3.40
						24	29	5	1.00
						35	36	$\mathbf{1}$	1.00
						62	63	$\mathbf{1}$	1.92
PFRC007	6764013	566825	349	050	$-60$	15	16	$1,$	0.92
						23	28	5		1.50 incl 1m at 5.26 g/t from 27m
						36	37	$\mathbf{1}$	0.92
						56	57	$\mathbf{1}$	6.20
						68	70	$\overline{a}$	1.70
PFRC008	6763994	566800	351	050	$-60$	25	27	$\overline{2}$	1.10
						31	32	$1,$	15.20
						36	37	$\mathbf{1}$	0.59
						40	43	3		$0.80$ incl 1m at 1.32 g/t from 40m
						49	5022	$1,$$\overline{3}$	67.00
PFRC009	6764006	566850	348	038	$-60$	19				$1.80$ incl 1m at $4.57$ g/t from $21m$
						25	3416	9$\mathbf{1}$	0.86	1.10 incl 1m at 2.20 g/t from 26m
PFRC010	6764014	566855	348	038	$-60$	1518	28	10
						45	46	$,1$	3.93	1.80 incl 2m at 4.16 g/t from 18m
PFRC011	6763991	566838	349	038	$-60$	28	29	$\mathbf{1}$	0.84
						32	35	3	0.60
						41	42	$\mathbf{1}$	0.70
						45	56	11	0.50
PFRC012	6763970	566823	350	038	$-60$	$\overline{c}$	3	$\mathbf 1$	0.51
						29	31	$\overline{2}$	0.80
						34	35	$,1,$	1.01
						39	41	$\overline{2}$		19.00 incl 1m at 36.0 g/t from 39m
						50	51	$,1$	1.10
PFRC013	6763954	566811	351	038	$-60$	35	37	$\overline{c}$	0.70
						44	46	$\overline{2}$	2.40
						51	52	$,1$	1.19
PFRC014	6763963	566863	350	040	$-60$	38	38	$\mathbf{1}$	0.98
PFRC015	6763978	566876	350	040	$-60$	51	52	$,1,$	5.20
PFRC017	6763948	566850	350	040	$-60$	35	36	$,1$	1.68
						42	43	$\mathbf 1$	0.88
						57	58	$\mathbf 1$	0.65

Shop 11 (Southshore Piazza) 85 The Esplanade, South Perth WA 6151 . (PO Box 1196, South Perth WA 6951) . ABN 70 097 982 235 Telephone 61 8 6436 2300 · Fax 61 8 9367 2450 · Email: admin@cervantescorp.com.au · Web: www.cervantescorp.com.au

Paynes Find Gold Project - 2011 Phase 1 Drill Program Signficant Results
							Grade (>0.5
Hole ID	North(MGA)	East(MGA)	RL(m)	Azi	Dip		Intersection		g/t cutoff)	Comments
						From	To	Width	Au (g/t)
PFRC018	6763932	566836	351	040	-60	20	26	6		1.90 incl 2m at 2.78 g/t from 22m
						30	33	3	1.90
						36	37	1	0.67
PFRC019	6763917	566824	352	040	-60	28	30	2	0.70
						35	38	3	0.50
						42	45	3	1.00
PFRC021	6763967	566893	349	040	-60	31	32	1	1.14
						50	51	1	0.79
PFRC023	6763938	566868	350	040	-60	37	38	1	0.92
						40	41	1	0.83
PFRC024	6763972	566924	349	020	-60	15	16	1	0.57
						17	18	1	1.53
PFRC026	6763937	566906	350	030	-60	40	41	1	0.72
						41	42	1	1.06
						51	52	1	0.95
PFRC027	6763919	566896	350	030	-60	22	23	1	0.56
						26	27	1	0.76
						30	31	1	0.53
PFRC028	6763901	566885	350	030	-60	40	42	2	0.60
PFRC031	6763953	566944	349	040	-60	31	32	1	0.70
PFRC033PFRC034	67639216763908	566920566909	349350	040040	-60-60	3117	3220	13	0.87	1.30 incl 1m at 2.73 g/t from 19m
						26	27	1	0.53
						29	30	1	1.03
PFRC037	6763945	566960	349	040	-60	25	27	2		1.30 incl 1m at 1.80 g/t from 25m
						32	33	1	3.41
						37	38	1	2.14
PFRC038	6763926	566946	350	040	-60	38	41	3	7.00
PFRC039	6763911	566932	350	040	-60	23	24	1	0.83
						50	53	3		8.60 incl 2m at 12.56 g/t from 25m
PFRC040	6763895	566922	350	040	-60	19	27	8	0.90
PFRC041	6763879	566908	350	040	-60	28	29	1	0.68
PFRC042	6763896	566949	350	045	-60	23	26	3	0.90
						43	44	1	0.72
PFRC043	6763886	566937	350	045	-60	46	49	3	1.10
PFRC045	6763855	566908	350	045	-60	57	58	1	0.86
PFRC046	6763881	567042	350	050	-60	22	24	2	2.40
PFRC047	6763868	567025	350	050	-60	40	41	1	6.99
						50	51	1	1.52
PFRC048	6763854	567010	350	050	-60	37	38	1	0.66
PFRC049	6763841	566997	350	050	-60	5	6	1	0.53
						22	24	2		50.50 incl 1m at >100 g/t from 22m
						46	47	1	0.78
PFRC050	6763829	566978	350	050	-60	18	20	2	0.60
PFRC051	6763879	566961	350	045	-60	52	53	1	1.11
PFRC052	6763866	566948	350	045	-60	14	15	1	0.59
						39	40	1	1.70
PFRC053	6763851	566933	350	045	-60	55	56	1	4.41
PFRC055	6763871	566983	350	045	-60	33	34	1	0.56
PFRC056	6763856	566968	350	045	-60	13	16	3	2.60

Paynes Find Gold Project - 2011 Phase 1 Drill Program Signficant Results
Hole ID	North(MGA)	East(MGA)	RL(m)	Azi	Dip		Intersection		Grade (>0.5g/t cutoff)	Comments
						From	To	Width	Au $(g/t)$
PFRC057	6763842	566952	350	045	$-60$	53	54	1	0.94
PFRC058	6763830	567053	350	055	$-60$	38	41	3	0.60
						58	61	3	4.20
PFRC059	6763798	567037	350	060	$-60$	9	12	3	1.00
						33	34	1	0.67
						39	45	6		2.40 incl 2m at 5.84 $g/t$ from 39m
PFRC060	6763819	567039	350	050	$-60$	28	30	$\overline{2}$	0.80
PFRC061	6763811	567019	350	055	$-60$	$\overline{2}$	3	$\mathbf{1}$	7.52
						46	48	$\overline{\mathbf{c}}$	0.70
PFRC062	6763814	567068	350	060	$-60$	$\overline{\mathbf{c}}$	3	$\mathbf{1}$	1.22
						15	16	$\mathbf{1}$	2.05
						25	26	$\mathbf{1}$	3.12
						30	31	$\mathbf{1}$	0.97
PFRC063	6763806	567051	350	060	$-60$	3	4	$\mathbf{1}$	0.53
						18	20	$\overline{2}$	2.00
						34	35	$\mathbf{1}$	0.79
PFRC064	6763859	567053	350	050	$-60$	10	13	3	0.70
PFRC065	6763846	567038	350	050	$-60$	17	18	$\mathbf{1}$	0.71
						32	35	3		16.00 incl 1m at 46.4 g/t from 32m
PFRC066	6763829	567017	350	050	$-60$	25	27	$\overline{2}$	1.60
						34	36	$\overline{2}$	2.60
PFRC068	6763899	567030	350	070	$-60$	31	32	$\mathbf{1}$	2.67
						43	46	3	0.70
PFRC069	6763912	567025	350	070	$-60$	26	31	5		1.60 incl 1m at $4.9$ g/t from 26m
PFRC070	6763908	566996	350	060	$-60$	0	1	1	0.69
						5	8	3	1.60

Paynes Find Gold Project - Hallmark Resources 2002, Significant Intersections within Phase 1
Hole ID	North	East	RL	Azi	Dip		Intersection		Grade (>0.5g/t cutoff)	Comments
	(MGA)	(MGA)	(m)			From	To	Width	Au (g/t)
HPFRC7	6763828	566957	347	050	$-60$	23	24	1	0.71
						30	31	$\mathbf{1}$	1.69
						148	149	$\mathbf{1}$	1.78
						203	204	$\mathbf{1}$	0.79
HPFRC15	6763906	567009	348	045	-60	32	33	$\mathbf{1}$	0.66
						56	57	$\mathbf{1}$	0.58
						60	62	$\overline{a}$	2.20
HPFRC16	6763847	567037	347	050	-60	60	61	$\mathbf{1}$	0.93
HPFRC17	6763832	567025	346	050	$-60$	46	53	7		4.30 incl 1m at 23.9 g/t from 48m
						76	78	$\overline{a}$	0.80
						83	85	$\overline{2}$	0.90
HPFRC19	6764000	566852	348	040	$-60$	20	40	20		1.80 incl 4m at $8.5$ g/t from 20m
						55	56	$\mathbf{1}$	0.73
						106	107	$\mathbf 1$	0.71
HPFRC20	6764006	566849	348	040	$-60$	20	21	$\mathbf 1$	0.51
						23	24	$\mathbf 1$	0.72
						27	35	8		1.20 incl 1m at 4.32 g/t from 29m
HPFRC21	6763981	566826	350	040	-6	33	35	$\overline{a}$		3.00 incl 1m at 5.23 g/t from 33m
						38	39	$\mathbf{1}$	0.96
						60	73	13		1.40 incl 1m at 4.66 g/t from 70m
						110	112	$\overline{2}$	1.00
						131	132	$\mathbf{1}$	1.02
HPFRC22	6763928	566784	352	040	$-60$	88	89	$\mathbf{1}$	2.37
						91	92	$\mathbf{1}$	0.54
						103	104	$\mathbf{1}$	2.86
						112	113	$\mathbf 1$	8.86
						140	141	$\mathbf{1}$	4.82
HPFRC25	6763900	566845	351	090	$-60$	24	33	$\overline{9}$		1.60 incl 1m at 7.87 g/t from 24m
						81	82	$\mathbf 1$	1.22
						93	94	$\mathbf{1}$	1.11
HPFRC26	6763901	566825	351	090	$-60$	42	46	4		$0.60$ incl 1m at 1.12 g/t from 42m
						49	54	$\overline{5}$		$0.70$ incl 1m at 1.39 g/t froom 51m
HPFRC27	6763901	566805	352	090	$-60$	30	31	$\mathbf{1}$	0.57
						46	49	3		2.00 incl 1m at 3.19 g/t from 47m
						54	55	$\mathbf 1$	1.06
						78	79	$\mathbf{1}$	0.78
						83	94	11		$0.90$ incl 1m at 1.95 g/t from 39m
						126	127	1	1.12
HPFRC28	6763900	566785	352	090	$-60$	72	73	$\mathbf 1$	2.23
						77	85	$\bf 8$		$0.50$ incl 1m at $0.8$ g/t from 83m
						91	95	4		1.00 incl 1m at 2.18 g/t from 94m
						141	142	$\mathbf 1$	0.55
HPFRC29	6763920	566877	350	040	$-60$	37	39	$\overline{a}$	1.90
HPFRC30	6763980	566850	350	090	$-60$	41	45	$\overline{\mathbf{4}}$	0.60

										Paynes Find Gold Project - Falcon Australla 1987, Significant Intersections within Phase 1
	North	East	RL				Intersection		Grade (>0.5
Hole ID	(MGA)	(MGA)	(m)	Azi	Dip				g/t cutoff)	Comments
						From	To	Width	Au $(g/t)$
CO 3	6764006	566801		035	$-60$	23	24	$\mathbf{1}$	0.71
C27	6764014	566832		080	$-60$	15	16	$\mathbf{1}$	1.40
						38	39	1	0.89
C 28	6763992	566838		085	$-60$	31	32	$\mathbf{1}$	10.50
C30	6763971	566840	350	084	$-60$	30	32	$\overline{2}$	3.50
C 32	6763991	566801	351	060	$-60$	41	42	1	9.30
C 33	6763971	566813	351	055	$-60$	31	32	1	39.32
										Paynes Find Gold Project -Kirkwood Gold 1997, Significant Intersections within Phase 1
									Grade (>0.5
Hole ID	North	East	RL	Azi	Dip		Intersection		g/t cutoff)	Comments
	(MGA)	(MGA)	(m)			From	To	Width	Au $(g/t)$
PFRCDD1	6763938	566801		036	$-6$	74.54	74.82	0.28	12.26
						84.02	94.42	0.4	2.78
						134.6	135.1	0.44	83.67
										Paynes Find Gold Project -Forsayth Minerals 1987, Significant Intersections within Phase 1
									Grade (>0.5
Hole ID	North	East	RL	Azi	Dip		Intersection		g/t cutoff)	Comments
	(MGA)	(MGA)	(m)			From	To	Width	Au $(g/t)$
PF33	6763950	567020		090	$-50$	32	33	$\mathbf{1}$	0.91
PF36	6763950	566930		090	$-50$	44	45	$\mathbf{1}$	4.21
PF38	6763950	566870		090	$-50$	28	38	10		1.10 incl 3m at $2.1$ g/t from 34m
PF40	6763950	566810		090	$-50$	28	30	$\overline{2}$	0.70
						34	48	14		$0.60$ incl 34m at 1.1 g/t from 38m
PF41	6763950	566780		090	$-50$	31	42	11		$0.60$ incl 3m at 1.2 g/t from 39m
PF50	6763850	566875		090	$-60$	24	36	12		1.00 incl 2m at $2.8$ g/t from 34m
PF51	6763850	566840		098	$-50$	14	41	24		0.60 incl 4m at $1.4$ g/t from 17m
PF52	6763850	566815		090	$-50$	24	27	3	1.50
						36	38	$\overline{2}$	0.60

										Paynes Find Gold Project - 2012 Phase 2 Drill Program Signficant Results
	North	East	RL				Intersection		Grade (>0.5	Comments
Hole ID	(MGA)	(MGA)	(m)	Azi	Dip				g/t cutoff)
						From	To	Width	Au $(g/t)$
PFRC102	6764080	566800		090	$-60$	16	19	3	0.84
PFRC110	6764160	566760		090	$-60$	96	98	$\overline{\mathbf{c}}$	3.82
PFRC112	6764148	566672		090	$-60$	13	15	$\overline{\mathbf{c}}$	0.63
						57	59	$\overline{\mathbf{c}}$	0.71
						114	117	3	4.94
						170	172	$\overline{c}$	1.11
PFRC115	566608	6764206		090	$-60$	16	20	4	1.91
						26	33	7	2.43
						44	47	3	0.60
						71	73	$\overline{2}$	1.85
PFRC116	6764196	566643		090	-6	10	22	12	6.61
PFRC117	6764181	566596		090	$-60$	49	51	$\overline{\mathbf{c}}$	0.60
						92	95	3	2.07
PFRC118	6764133	566640		090	$-60$	40	45	5	1.24
						49	51	$\overline{c}$	1.45
PFRC120	6764185	566587		090	$-60$	41	44	3	92.08
						58	61	3	0.80
						69	71	$\overline{c}$	2.56
						82	85	3	1.45
PFRC121	6764205	566565		090	-60	9	12	3	0.63
						40	43	3	1.20
						53	56	3	1.82
						91	96	5	1.24
PFRC123-1	6764231	566686		090	$-60$	8	10	$\overline{c}$	2.56
PFRC124	6764233	566651		090	$-60$	7	9	$\overline{\mathbf{c}}$	1.11
PFRC127	6764265	566745		090	$-60$	6	8	$\overline{\mathbf{c}}$	0.88
						59	61	$\overline{c}$	2.45
PFRC128	6764194	566788		090	$-60$	67	69	$\overline{c}$	1.85
						90	93	3	1.27
PFRC131	6764126	566830		090	-60	69	71	$\overline{\mathbf{c}}$	1.45
						122	124	$\overline{\mathbf{c}}$	1.02
PFRC133	6764123	566764		090	$-60$	50	52	$\overline{c}$	1.61
						99	103	4	2.64
PFRC134	6764121	566733		090	$-60$	45	48	3	8.04
						140	143	3	5.21
PFRC135	6764002	566740		090	-60	25	28	3	0.69
						48	50	$\overline{c}$	3.59
						77	84	7	4.83
						93	97	4	0.89
PFRC136	6764103	566787		090	-60	23	27	4	1.13
						42	47	5	1.66
PFRC137	6764080	566759		090	-60	60	62	$\overline{\mathbf{c}}$	1.43
PFRC140	6764050	566827		090	$-60$	15	18	3	0.87
						22	24	$\overline{\mathbf{c}}$	1.15
PFRC142	6764047	566763		090	$-60$	30	33	3	3.21
PFRC143	6764045	566730		090	$-60$	91	93	$\overline{\mathbf{c}}$	0.94
						155	157	$\overline{c}$	2.29

Paynes Find Gold Project - 2012 Phase 2 Drill Program Signficant Results
Hole ID	North(MGA)	East(MGA)	RL(m)	Azi	Dip		Intersection		Grade (>0.5g/t cutoff)	Comments
						From	To	Width	Au $(g/t)$
PFRC145	6763983	566797		090	$-60$	44	46	2	3.33
						50	56	6	1.37
						60	62	$\overline{\mathbf{c}}$	0.60
						82	85	3	0.67
PFRC146	6763984	566820		090	$-60$	29	34	5	0.99
PFRC147	6763982	566772		090	$-60$	22	24	2	0.95
						27	31	4	1.16
						76	79	3	3.15
PFRC148	6763742	566978		090	$-60$	128	130	2	3.94
PFRC149	6764025	566832		090	$-60$	41	44	3	4.64
						46	50	4	1.21
PRCR150	6764015	566768		090	$-60$	51	56	5	0.99
						79	83	4	6.28
						109	111	$\overline{c}$	0.81
						120	126	6	3.56
PFGDD01	6764024	566640		060	$-60$	294	297	3	0.50
PFGDD02	6764100	566777		058	$-62$	36	37	1	3.95
PFGDD03	6763974	566784		080	$-62$	80	92	14	1.33
						219	221	2	0.88
PFGDD06	6763993	566625		070	$-70$	214	216	$\overline{\mathbf{c}}$	2.07
						222	225	3	1.28

JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

Criteria	JORC Code explanation
Samplingtechniques	RC chips were sampled at 1m composites with all samples beingassayedDiamond core was half cut with only selected intervals that weredeemed of interest being assayed.Intersections were calculated using minimum criteria of 2m at 0.5 g/tAu with a minimum waste interval of 1m
Drillingtechniques	All holes prefixed as RC were Reverse Circulation Percussion with 5½ inch bit.Diamond holes were NQ diameter.
Drill samplerecovery	Recoveries for both drilling methods were stated as being adequatebut no specific numbers were recorded or quoted.No exceptional methods to enhance recovery were necessary.
Logging	RC holes were field logged at 1m intervals by various geologists.Diamond core was partially logged by various field geologists –focusing on areas of interest and zones to be assayed.
Subsamplingtechniquesand samplepreparation	Diamond core was half cut, with half cut core over 1m sections ofinterest sent for assay.RC chips samples over 1m composites were split on site with a rifflesplitter.Field standards and duplicates where sent to the lab and combinedwith laboratory duplicates.Sample analysis drilling during 2011 and 2012 was undertaken atNagrom laboratory, in Perth40g of sample was digested in aqua regia and the solution analyzedby ICP. Ag and Au are analyzed by ICP-MS and Cu by ICP-OES.
Quality ofassay dataandlaboratorytests	Results of QA/QC were analyzed and found to be within specification.Extreme high grade results from RC drilling were verified by repeatsampling of the original bulk reject RC chips.
Verificationof samplingandassaying	Sampling, logging and assay results verified and confirmed bycompetent person.High grade assays re-assayed for check of validity.
Location ofdata points	Holes located by differential GPSAll locations using MGA94, Zone 50
Dataspacinganddistribution	The drilling programs were designed for grass roots exploration andas such were not spaced on a regular pattern, but located in a wayand at an orientation to best intersect geological and structuraltargets.Drilling was not designed for resource estimation and as such drillspacing and layout is not sufficient for Resource Estimation.
Orientation	The orientation of geological structures were not known with certainty

Criteria	JORC Code explanation
of data inrelation togeologicalstructure	at the time of drilling and as such drilling direction varied so as toattempt to better define the primary structural direction.Insufficient work has been carried out with the data to accuratelydetermine the primary structures.
Sample	
security	Industry standard chain of custody protocols were followed.
Audits or	
reviews	No reviews or audits were undertaken.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation
Mineraltenementand landtenurestatus	Exploration results relate to work carried out over a package of leasescurrently held by European Lithium Ltd (ASX:EUR).Exploration Results quoted are from M59/244, P59/1908 andM59/235.All of the lease are currently under option to Cervantes Corporation(ASX:CVS). CVS is in the process of purchasing all of the leases100% with no third parties or Joint VenturesAll leases are currently in good standing with the WA Department ofMines and Petroleum with no know impediments.
Explorationdone byotherparties	All Exploration Results quoted stem from work undertaken byprevious holder of leases. These include Payne's Fine Gold, FalconAustralia, Forsayth Minerals, and Kirkwood Gold.
Geology	The regional geology of the Payne's Find region comprises a thickseries of Archaean-aged folded mafic volcanic rocks that areseparated by large granitoid intrusions although outcrop is largelyconcealed by an extensive cover of alluvium and laterite. The rocktypes consist of interlayered, basaltic and dacitic, meta-volcanics,subordinate banded iron formations and ultramafic schists.The mineralization within the Payne's Find area is structurallycontrolled and associated with late tectonic ductile to brittlestructures. The Primrose Fault Zone which bifurcates to the south, isan east verging, sinistral transpressional thrust fault zone whichjuxtaposes a hanging wall amphibolite with the Paynes Find gneiss
Drill holeInformation	See appendix 1
Dataaggregation methods	Intersections were calculated using minimum criteria of 2m at 0.5 g/tAu with a minimum waste interval of 1m.No top cutting was applied.
Relationship betweenmineralization widthsand	Dip of drilling varied, but most were close to -60 degrees roughlytoward the east.Because of the structural complexity of the target, exact dip ofmineralization is not known and varies from hole to hole. Howeversome work suggest a general drip of approximately 70 degrees to theWest.

Criteria	JORC Code explanation
interceptlengths	This combination of drilling and dip would suggest that true thicknessmay be between 70-80% of intersected thickness.
Diagrams	The Payne's Find project is not yet deemed to be a "significant"discovery". Plans and sections will be provided when additional workhas been done but have been previously reported by Paynes FindGold (ASX:PNE)
Balancedreporting	Reporting is balanced.
Othersubstantiveexplorationdata	No further exploration data is available.
Furtherwork	Future exploration plans are being developed but not yet finalized.These may include:Magnetic surveying$\circ$Re-assay of core$\Omega$Geochemical surveys$\Omega$Additional drilling.$\circ$