REACH RESOURCES LIMITED — Capital/Financing Update 2018

Mar 27, 2018

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ASX ANNOUNCEMENT/MEDIA RELEASE

28 March 2018

Exploration Commences: New approach to an historic gold field

• Focus has swung to potentially large tonnage shear-related gold targets

• Untested gold geochemistry anomalism recognised

• Four untested shear-related gold targets to be confirmed with aircore drilling along the Primrose Shear

• Historically defined gold mineralisation at Pansy Prospect to be drilled for confirmation and expansion

• Tenders for the drilling have been invited

• Programmes of Work submitted to the DMIRS

• Regulatory approvals awaited

Cervantes Corporation Limited (ASX:CVS) (Cervantes) is pleased to inform the market it has undertaken a comprehensive review of the gold exploration potential of the Primrose Shear. This shear is related to high grade gold mineralisation that was mined historically (Figure 1). The review took in work done by previous explorers as well as records from historic gold producers in the Paynes Find Gold Field. In recognition of the significance of this mineralised shear, the area is referred to as the Primrose Project.

Cervantes controls in excess of 8km strike length of the Primrose Shear. The package of tenements includes mining leases which are the subject of an ongoing acquisition from European Lithium Ltd (CVS’ ASX release on 15 Nov., 2017) and a number

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Figure 1: Primrose Project location on regional geology; showing regional historical gold production

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of Cervantes owned tenements (Table 1, Figure 2).

The aim of the review was to identify opportunities not pursued by previous workers and, where appropriate, materially increase and validate the mineralisation previously defined.

A large body of drilling at the Carnation Prospect has been ear-marked for a detailed analysis.

Tenement	Name	Owner
M 59/02 Havela EUROPEAN LITHIUM LTD M 59/10 Marigold EUROPEAN LITHIUM LTD M 59/235 Sweet William EUROPEAN LITHIUM LTD M 59/244 Paynes Find EUROPEAN LITHIUM LTD M 59/396 Havea EUROPEAN LITHIUM LTD M 59/662 Pansy EUROPEAN LITHIUM LTD M 59/663 Blue Bell EUROPEAN LITHIUM LTD P 59/1957 Goodingnow East EUROPEAN LITHIUM LTD P 59/1941 Roadhouse EUROPEAN LITHIUM LTD P 59/1924 Sty EUROPEAN LITHIUM LTD P 59/1958 Southern Margin EUROPEAN LITHIUM LTD P 59/1942 Northern Margin EUROPEAN LITHIUM LTD P 59/1956 Daffodil EUROPEAN LITHIUM LTD P 59/2101 Western Granite EUROPEAN LITHIUM LTD P 59/1959 Airport EUROPEAN LITHIUM LTD P 59/2130 Battery CERVANTES GOLD PTY LTD P 59/2152 CERVANTES GOLD PTY LTD P 59/2151 CERVANTES GOLD PTY LTD P 59/2153 CERVANTES GOLD PTY LTD E 59/2242 Deep Well CERVANTES GOLD PTY LTD

Table 1: List of tenements controlled by Cervantes

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Figure 2: Primrose Project tenements. Over 8km of the auriferous Primrose Shear is covered

Regional opportunities

The historic workings in the project area were based on at surface, late stage, quartz-vein related gold mineralisation. This style of gold, while generally of a high grade, is discontinuous and size limited. Past explorers were distracted from pursuing the greater prize of a potentially much larger tonnage target by these historic occurrences.

The following references are made in respect to historic exploration data that are the subject of announcements to the ASX by Paynes Find Gold Ltd (ASX: PNE) on 14 June, 2011 and 19 November, 2012 and Cervantes Corporation Limited (ASX:CVS) on 4 May, 2017.

Consultants CSA Global undertook a field-wide study for the purpose of improving understanding of the structural and lithostratigraphic controls on mineralisation with implications for exploration targeting. The following critical conclusions were drawn:

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• Two major gold mineralising episodes are recognised:

• Shear related quartz veining with high-grade gold in boudinaged quartz veins hosted by gneiss. This was the main target for historic mining activities (Type 1 mineralisation).

• Lower grade, but consistent gold mineralisation along the sheared contact between mafic amphibolite and gneiss (Type 2).

• Extensive quartz veining containing gold mineralisation in the western mafic / ultramafic sequence (Type 3 mineralisation). This is an under explored gold target.

• The gneissic terrain that hosts the historic workings are a lower priority target because of the inconsistent gold mineralization.

• The sheared and intensely altered contact between the mafic unit and the gneiss should be the prime focus. This target is likely to exhibit consistent and significant thicknesses and may be open to depth and along strike.

The two styles of gold mineralisation are shown schematically in Figure 3. Type 1 gold mineralisation was extensively pursued in the past. Intercepts such as 3m at 92.1g/t gold (Au) in drill hole PFRC120 represent this type, while intercepts such as 12m at 6.61g/t Au in hole PFRC116 (PNE announcement 21 Nov., 2012) are interpreted to represent Type 2 gold mineralisation. While lower grade, this type has the ability to be present in much higher tonnages and total contained gold.

The Primrose Shear related gold target has not been fully pursued by previous explorers, yet presents as the greatest opportunity in this historic gold field. Of the approximately 8km of strike Cervantes controls on this shear and its offshoots, only 0.55km has been drill tested.

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Figure 3: Primrose Shear hosted conceptual gold target

An initial three pronged exploration programme has been designed to begin the process of systematic, target focused, model driven testing of this highly auriferous area.

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Regional sampling programme

The regional review has identified seven prospects for follow-up with four being chosen for testing with aircore (AC) drilling during the current phase of exploration, namely Blue Bell, Princess Mary, Goodingnow, and Pansy. (Figure 4). All lie on flexures in the Primrose Shear and have associated with them elevated surface geochemistry gold signatures. The aim of this work is to identify parts of the Primrose Shear that are auriferous as a pathfinder for deeper RC drill testing. Seventy holes are planned.

Pansy Pit

The Pansy Pit (Figure 4 and 5) was mined in 1912-13 and produced at an average grade of 17.4g/t Au. It represents the currently known southernmost extension of known gold mineralisation along the Primrose Shear.

Cervantes has reviewed all previous work, including drilling undertaken by Falcon Australia Limited in 1987 (“Summary of Pansy Prospect, Paynes Find for Falcon Australia”, A.Peerless, K.H.Morgan & Assoc., 1987, DMIRS report A21516). Field inspections were

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Figure 4: Proposed shallow aircore drilling on flexures in the Primrose Shear exhibiting gold anomalism (large dots). Smaller dots show existing drill holes.

also done. On the basis of structural and lithological geometries present, extents indicated by historic drilling, possible strike and down dip extensions recognised by Cervantes, and gold grades intercepted that drilling, a notional exploration target of 10,000t to 35,000t at a grade of 2.0g/t to

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Figure 5: Proposed Pansy Pit drilling (shown as stars) in relation to existing drill holes (black dots). The Pansy Pit is 5 to 8m deep

4.5g/t gold has been estimated. This is based upon 21 RC holes (Figure 5, Appendices 1 and 2) in conjunction with aeromagnetic data interpretation as well as field mapping both regionally and within the existing pit. The potential quantity and grade of this target is conceptual in nature, there has been insufficient exploration to estimate a Mineral Resource and it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Sixteen RC holes for 550m to test down-dip, up-dip and along strike of the historic holes are planned

.

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(Figure 5). Drilling is pending Programme of Work assessment by Department of Mines Industry Regulations and Safety (WA) and are expected to be completed by July, 2018. This data will be used to confirm and extend the known mineralisation as a prelude to possible resource definition drilling.

Carnation Prospect

The previous explorer, Paynes Find Gold (PNE), focused its extensive drilling campaigns on the footwall side of the Primrose Shear within the Paynes Find Gneiss. This gneiss, bounded by the Primrose Shear to the west and the Daffodil Shear to the east, forms a rigid brittle body that hosts the vein swarms that host the historically mined high grade, low tonnage, late stage veined gold. Insufficient continuous mineralisation was defined by PNE to estimate an economic resource.

Drill holes that were collared in the hanging wall amphibolites to the west tended to indicate the potential for thicker intersections of more continuous gold mineralisation.

A more in-depth review of this particular prospect is planned. This will include assaying of drill hole sections not yet sampled, mapping of alteration to determine if there exists an alteration signature to the gold, and a synthesis of litho-structural controls on gold mineralisation.

About Cervantes Corporation Limited

Cervantes is an emerging gold explorer and aspiring gold miner. It has built up a portfolio of gold properties in well-known and historically producing gold districts with a strategy to apply novel exploration and development thinking. Cervantes has identified opportunities in those districts that were overlooked by previous explorers. The company is committed to maximizing shareholder value through the development of those opportunities.

About the Primrose Project

The Primrose Project covers in excess of 8km of the highly gold mineralised Primrose Shear in the Murchison District of the Eastern Goldfields, Western Australia. Over 37 gold mines, of various sizes, operated in this field from 1911 till 1982. Some 63,000 ounces of gold was mined at an average grade of 25g/t during this period. It is generally accepted that significantly more gold than this was won from alluvial and unreported production.

Cervantes now controls 20 mining leases, prospecting licences, and an exploration licence that cover the majority of this historic gold field. A large database of drilling, surface geochemistry, geological, and geophysical data has been assembled to allow the field to be better understood than at any time in its history.

Competent Person’s Statement

The details contained in this report that pertain to exploration results and exploration targets are based upon information compiled by Mr Marcus Flis and fairly represent information and supporting documentation prepared by Mr Flis. Mr Flis is a Director of Cervantes Corporation Limited and is a Fellow of the Australasian Institute of Mining and Metallurgy (AusIMM) and has sufficient experience in the activity which he is undertaking to qualify as a Competent Person as defined in the December 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (JORC Code). Mr Flis consents to the inclusion in the report of the matters based upon his information in the form and context in which it appears.

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Forward Looking Statement

This report contains forward looking statements concerning the projects owned by Cervantes Corporation Limited. Statements concerning mining reserves and resources may also be deemed to be forward looking statements in that they involve estimates based on specific assumptions. Forward-looking statements are not statements of historical fact and actual events and results may differ materially from those described in the forward looking statements as a result of a variety of risks, uncertainties and other factors. Forward looking statements are based on management’s beliefs, opinions and estimates as of the dates the forward looking statements are made and no obligation is assumed to update forward looking statements if these beliefs, opinions and estimates should change or to reflect other future developments.

For Further information please contact:

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

END

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Appendix 1 Summary of drill holes – Pansy Pit RC drilling

Historical drilling collar information that formed the basis for the exploration target cited. Drilling datum MGA94 zone 50 – sampling at single metre intervals

Hole_ID	Hole_Type	Max_Depth	Orig_East	Orig_North	Orig_RL	Azi	Dip
P01	RC	45	567486.4	6762110	337.84	44	-60
P02	RC	40	567505.1	6762097	337.83	36	-60
P03	RC	40	567517.1	6762086	337.82	31	-60
P04	RC	40	567529.7	6762071	337.82	31	-60
P05	RC	35	567552.0	6762053	337.82	18	-60
P06	RC	39	567566.2	6762039	337.82	42	-60
P07	RC	39	567559.0	6762046	337.81	39	-60
P08	RC	39	567544.1	6762059	337.83	45	-60
P09	RC	39	567536.7	6762065	337.79	46	-60
P10	RC	39	567526.6	6762074	337.83	13	-60
P11	RC	38	567509.9	6762089	337.81	43	-60
P12	RC	39	567494.8	6762103	337.85	51	-60
P13	RC	58	567484.3	6762092	338.07	40	-60
P14	RC	63	567499.8	6762077	338.00	40	-60
P15	RC	60	567512.5	6762066	338.06	36	-60
P16	RC	57	567526.1	6762054	338.04	37	-60
P17	RC	63	567541.0	6762041	338.05	38	-60
P18	RC	43	567581.9	6762029	337.89	41	-60
P19	RC	43	567471.6	6762121	338.25	41	-60
P20	RC	57	567469.8	6762105	338.31	39	-60
P21	RC	60	567557.6	6762027	338.23	39	-60

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Appendix 2 Summary of historic gold assays – Pansy Pit RC drilling

Historic assay results from the Pansy Pit drilling are taken from hand written geological logs obtained from DMIRS report A21516. Only intervals with identifiable quartz veining were assayed. Illegible assays are represented as a dash (-). Below detection are represented as -0.001. The method of assaying is unknown. Intercepts used historically to assess this mineralisation are highlighted. The drilling was by RC. True widths are unknown. It should be noted that:

• These results were reported before the existence of the JORC code; they have not been reported in compliance to the JORC Code (2012).

• It is possible that following further evaluation and/or exploration work that the confidence in these exploration results may be reduced when reported under the JORC Code 2012.

• Nothing has come to the attention of Cervantes that causes it to question the accuracy or reliability of these exploration results; but Cervantes has not independently validated the historic exploration results and therefore is not to be regarded as reporting, adopting or endorsing those results.

RC Hole From (m) To (m) Width (m)	Gold (ppm) Significant intercepts	Gold (ppm) Significant intercepts
P01 13 14 1 P01 14 15 1 P01 15 16 1 P01 16 17 1 P01 17 18 1 P01 25 26 1 P01 26 27 1 P01 27 28 1 P01 28 29 1 P01 29 30 1 P01 30 31 1 P01 31 32 1 P01 32 33 1 P01 33 34 1	0.030 0.070 1.230 0.520 0.525 0.060 0.783 0.283 0.060 0.050 0.210 0.090 2.820 0.090
P02 10 11 1 P02 11 12 1 P02 12 13 1 P02 13 14 1 P02 14 15 1 P02 15 16 1 P02 16 17 1 P02 17 18 1 P02 18 19 1 P02 19 20 1 P02 20 21 1 P02 21 22 1 P02 22 23 1	1.160 0.258 0.050 0.080 0.400 0.267 0.438
	1.920
		3m @ 3.08g/t
	2.830
	4.500
	0.283 0.267 0.050

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P02 23 24 1 P02 24 25 1 P02 25 26 1 P02 26 27 1 P02 33 34 1 P02 34 35 1 P02 35 36 1 P02 37 38 1 P02 38 39 1 P02 39 40 1	0.032 0.067 0.517 0.111 0.010 -0.001 -0.001 0.030 0.135 -0.001
P03 5 6 1 P03 6 7 1 P03 7 8 1 P03 8 9 1 P03 9 10 1 P03 14 15 1 P03 15 16 1 P03 16 17 1 P03 17 18 1 P03 18 19 1 P03 19 20 1 P03 20 21 1 P03 21 22 1 P03 22 23 1 P03 23 24 1 P03 24 25 1 P03 25 26 1 P03 26 27 1 P03 27 28 1 P03 31 32 1 P03 32 33 1 P03 33 34 1 P03 34 35 1	0.017 0.025 0.050 0.170 0.017 0.075 0.040 0.300 1.260 0.230 0.100 0.056 0.069 0.200 0.617
	12.000	2m @ **8.75g/t **
	5.500
	0.267 0.425 0.030 0.024 0.063 0.044
P04 3 4 1 P04 4 5 1 P04 6 7 1 P04 7 8 1 P04 10 11 1 P04 11 12 1 P04 12 13 1 P04 13 14 1 P04 14 15 1 P04 15 16 1 P04 16 17 1	0.034 0.050 0.042 0.059 0.067 0.040 0.017 0.050 0.117 0.017 0.217

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P04 17 18 1 P04 18 19 1 P04 19 20 1 P04 21 22 1 P04 22 23 1 P04 23 24 1 P04 24 25 1 P04 25 26 1 P04 26 27 1 P04 27 28 1 P04 28 29 1 P04 29 30 1 P04 30 31 1	0.495 0.750 0.260
	9.620
	2.050
	0.060	6m @ 2.66g/t
	0.442
	1.100
	2.670
	0.100 0.213 0.900 1.420
P05 5 6 1 P05 6 7 1 P05 7 8 1 P05 8 9 1 P05 9 10 1 P05 10 11 1 P05 11 12 1 P05 12 13 1 P05 13 14 1 P05 14 15 1 P05 15 16 1 P05 16 17 1 P05 17 18 1 P05 18 19 1 P05 19 20 1 P05 20 21 1 P05 21 22 1 P05 22 23 1 P05 29 30 1	0.140 0.670 0.410 0.300 0.110 0.050 0.100 0.150 0.125 0.242 0.158 0.007
	1.110	2m @ **1.32g/t **
	1.530
	0.417 0.275 0.150 0.125 0.040
P06 9 10 1 P06 21 22 1 P06 23 24 1 P06 24 25 1 P06 25 26 1 P06 29 30 1 P06 30 31 1 P06 31 32 1 P06 32 33 1 P06 33 34 1 P06 34 35 1 P06 36 37 1	0.067 0.060 0.020 0.032 0.020 0.025 0.040 -0.001 0.030 1.040 1.018 1.070

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P06 38 39 1	0.140
P07 13 14 1 P07 15 16 1 P07 17 18 1	0.110 0.192 0.040
P08 17 18 1 P08 18 19 1 P08 21 22 1 P08 22 23 1 P08 23 24 1 P08 24 25 1 P08 25 26 1 P08 26 27 1 P08 29 30 1 P08 30 31 1 P08 31 32 1 P08 32 33 1 P08 34 35 1 P08 35 36 1 P08 36 37 1 P08 37 38 1	0.300 0.530
	1.580
	12.950
	13.830	6m @ 6.96g/t
	10.320
	1.520
	1.530
	0.320 0.420 0.580 0.900 - - - -
P09 16 17 1 P09 17 18 1 P09 18 19 1 P09 19 20 1 P09 20 21 1 P09 21 22 1 P09 22 23 1 P09 23 24 1 P09 24 25 1 P09 25 26 1 P09 26 27 1 P09 27 28 1 P09 28 29 1 P09 30 31 1 P09 31 32 1 P09 32 33 1 P09 33 34 1 P09 34 35 1 P09 35 36 1 P09 36 37 1 P09 37 38 1	0.380 0.540 0.240 0.200 0.300 0.906 0.233 0.558
	1.040
		3m @ 2.06g/t
	3.670
	1.480
	0.190 0.220 2.080 0.792 1.520 0.100 0.300 0.600 0.320 0.320
P10 2 3 1 P10 3 4 1 P10 4 5 1	0.010 0.010 0.030

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P10 5 6 1 P10 6 7 1 P10 7 8 1 P10 9 10 1 P10 10 11 1 P10 11 12 1 P10 12 13 1 P10 13 14 1 P10 14 15 1 P10 15 16 1 P10 16 17 1 P10 17 18 1 P10 18 19 1 P10 19 20 1 P10 20 21 1 P10 21 22 1 P10 22 23 1 P10 23 24 1 P10 24 25 1 P10 25 26 1 P10 26 27 1 P10 27 28 1 P10 28 29 1 P10 29 30 1 P10 30 31 1 P10 31 32 1 P10 35 36 1	0.040 0.030 0.040 0.100 0.130 0.360 0.100 0.100 0.110 0.180 0.150 0.100 0.100 0.010 0.010 0.010 0.010 0.140 0.392 0.010 0.430 0.710
	1.310	2m @ **1.27g/t **
	1.240
	0.030 0.080 0.200
P11 4 5 1 P11 6 7 1 P11 7 8 1 P11 8 9 1 P11 10 11 1 P11 11 12 1 P11 12 13 1 P11 13 14 1 P11 17 18 1 P11 18 19 1 P11 19 20 1 P11 20 21 1 P11 21 22 1 P11 22 23 1 P11 23 24 1 P11 24 25 1 P11 25 26 1	0.060 0.250 0.542 0.167 0.240 0.030 0.010 0.040 0.150 0.200 0.100 0.100 0.350
	3.830
		3m @ 4.03g/t
	0.740
	7.525
	0.667

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P11 26 27 1 0.050 P11 35 36 1 0.170 P11 36 37 1 0.283 P11 37 38 1 0.025
P12 2 3 1 0.030 P12 3 4 1 0.050 P12 9 10 1 0.400 P12 10 11 1 0.108 P12 11 12 1 0.217 P12 12 13 1 0.375 P12 13 14 1 0.475 P12 15 16 1 0.375 P12 16 17 1 0.070 P12 18 19 1 0.290 P12 19 20 1 0.242 P12 20 21 1 0.283 P12 21 22 1 0.060 P12 29 30 1 0.030 P12 33 34 1 -0.001
P13 2 3 1 -0.001 P13 3 4 1 -0.001 P13 4 5 1 -0.001 P13 5 6 1 -0.001 P13 6 7 1 -0.001 P13 17 18 1 -0.001 P13 19 20 1 0.030 P13 20 21 1 0.040 P13 24 25 1 0.010 P13 25 26 1 0.010 P13 26 27 1 0.300 P13 27 28 1 - P13 28 29 1 - P13 45 46 1 0.117 P13 46 47 1 0.100 P13 47 48 1 0.008
P14 3 4 1 - P14 4 5 1 - P14 5 6 1 - P14 6 7 1 - P14 7 8 1 - P14 8 9 1 - P14 10 11 1 - P14 13 14 1 0.440 P14 14 15 1 0.460

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P14 15 16 1 P14 16 17 1 P14 18 19 1 P14 19 20 1 P14 20 21 1 P14 21 22 1 P14 24 25 1 P14 25 26 1 P14 26 27 1 P14 32 33 1 P14 33 34 1 P14 34 35 1 P14 35 36 1 P14 36 37 1 P14 37 38 1 P14 38 39 1 P14 39 40 1 P14 40 41 1 P14 41 42 1 P14 49 50 1 P14 50 51 1 P14 51 52 1 P14 55 56 1 P14 59 60 1	0.490 0.424 - - 0.350 1.060 0.660 - - - - 0.108 0.032
	2.820
		3m @ 2.83g/t
	0.917
	4.750
	0.230 0.217 0.032 0.025 0.250 0.008 0.008 0.008
P15 5 6 1 P15 7 8 1 P15 10 11 1 P15 11 12 1 P15 18 19 1 P15 20 21 1 P15 21 22 1 P15 22 23 1 P15 23 24 1 P15 24 25 1 P15 25 26 1 P15 26 27 1 P15 29 30 1 P15 30 31 1 P15 31 32 1 P15 32 33 1 P15 33 34 1 P15 36 37 1 P15 37 38 1 P15 38 39 1	1.420 - - - 0.050 0.100 0.100 - - - 2.200 0.250 - - 0.180 0.100 0.100 0.675
	16.800	8m @ **7.08g/t **
	1.050

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P15 41 42 1 P15 42 43 1 P15 43 44 1 P15 44 45 1 P15 45 46 1 P15 46 47 1	10.580
	1.570
	14.330
	2.420
	7.830
	2.080
P16 5 6 1 P16 10 11 1 P16 11 12 1 P16 12 13 1 P16 13 14 1 P16 14 15 1 P16 17 18 1 P16 20 21 1 P16 23 24 1 P16 24 25 1 P16 35 36 1 P16 36 37 1 P16 37 38 1 P16 39 40 1 P16 45 46 1 P16 46 47 1 P16 49 50 1 P16 50 51 1 P16 51 52 1	0.520 - - - - - 0.100 - 0.100 - 0.090 0.180 0.870 0.370
	4.430
		3m @ 1.99g/t
	0.492
	1.050
	0.190 1.020
P17 6 7 1 P17 7 8 1 P17 8 9 1 P17 10 11 1 P17 11 12 1 P17 16 17 1 P17 17 18 1 P17 18 19 1 P17 19 20 1 P17 31 32 1 P17 35 36 1 P17 36 37 1 P17 38 39 1 P17 40 41 1 P17 41 42 1	0.800 0.600 0.800 0.100 0.030 - - - - 0.430
	1.130
	0.690 0.025 0.167 0.083
P18 6 7 1 P18 7 8 1 P18 8 9 1 P18 11 12 1	8.250
		3m @ 8.92g/t
	17.500
	1.000
	0.517

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P18 12 13 1 P18 13 14 1 P18 14 15 1 P18 15 16 1 P18 16 17 1 P18 17 18 1 P18 18 19 1 P18 19 20 1 P18 20 21 1 P18 23 24 1 P18 24 25 1 P18 25 26 1 P18 26 27 1 P18 27 28 1 P18 37 38 1	1.450 1.330 0.100 0.400
	4.720	2m @ 3.03g/t
	1.330
	0.400 0.300 - - 0.100
	5.180
		3m @ 4.40g/t
	5.230
	2.800
	0.158
P19 5 6 1 P19 27 28 1 P19 28 29 1	- - -
P20 14 15 1 P20 15 16 1 P20 16 17 1 P20 19 20 1 P20 20 21 1 P20 21 22 1 P20 30 31 1 P20 35 36 1 P20 36 37 1 P20 37 38 1 P20 52 53 1	- - 0.300 0.200 0.970 0.450
	10.500
	0.200	8m @ 2.39g/t
	8.420
	2.030
	0.017
P21 6 7 1 P21 10 11 1 P21 18 19 1 P21 34 35 1	- - - 0.010

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Appendix 3 JORC Code (2012) Table

Section 1 Sampling Techniques and Data

Criteria	**Explanation **
Sampling techniques	Reverse circulation drilling samples are reported to be as 1 metre samples with the majority of metres per hole assayed regardless of interpreted mineralised zone (PNE data) or based on quartz veining (Falcon data). In regards to the Pansy exploration target reported in this release onlyRC drillinghas beencompleted to date
Drilling techniques	Reverse Circulation (“RC”) drilling.
Drill sample recovery	Data pertaining to recoveries in the corporate database indicate the majority or RC recoveries are estimated greater than 85% (PNE data) and unknown(Falcondata)
Logging	RC chips have been logged in the field by various Geologists. These geological logs and notes are recorded in the Company’s Access digital databaseforthe project
Sub sampling techniques and sample preparation	For PNE data RC samples are reported to have been riffle split form the original 1 metre sample with the residue now removed from the site. Field standards were sent to the lab and incorporated into the analytical test work along with laboratory based and previous sampling standards. Samplehandlingis unknown fortheFalcondata.
Quality of assay data and laboratory tests	For the PNE data assaying has been completed using recognised analytical laboratories in Perth WA and internal checks have been completed on the data by the relevant labs. Historical reports indicate some blanks and standards were introduced to offer further QC/QA to the data at the time of collection, This have not been verified by the current tenement manager but has been recorded in the corporate digitaldatabase.QA/QCis unknown fortheFalcondata.
Verification of sampling and assaying	It is reported historically that high grade assays were re-assayed and sampling combined with interpretation and collation has been under the guidance of a competent Person defined by the JORC code and guidelines 2012 Ed. Assaying undertaken pre-JORC Code 2004 or 2012 (ie, the Falcon data) is not material in that it will guide future explorationbutnotresource definition
Location of data points	Holes have been reported at the time of drilling on a local grid and all data has been converted to MGA94 datum zone 50. Further drilling will be on this datum. Some collars have been verified in the field with GPS to confirmcollarsinthe database are correctlylocated.
Data spacing and distribution	There is no clear or regular drill pattern or spacing with drilling as explorationdrilling.
Orientation of data in relation to geological structure	Other than regional geological trends no detailed orientation of geological structures ash been identified in the literature, other than an inference of steeply dipping west to near vertical. Most drilling has therefore been at an angle to attempt to intersect geology.
Sample security	It is reported that there has been a sufficiently secure chain of custody throughout sampling as to satisfy requirements (PNE data) and unknown(Falcondata).
Audits or reviews	No audits or reviews have yet been conducted on the exploration data presentedinthisrelease.

Section 2 Reporting of Exploration results

Criteria	**Explanation **
Mineral tenements	Exploration results relate to work carried out over apackage of tenements

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and land tenure status	comprising mining, prospecting and exploration leases considered collectively as the Primrose Project. The tenements are under the ownership of either European Lithium Limited or Cervantes Corporation Limited with a view to 100% ownership by Cervantes Corporation Limited following successful completion of the acquisition of all tenements. All tenements and leases are currently in good standing with DMP with no known impediments to further exploration or development.
Exploration done by other parties	Historical work has been undertaken by a number of previous explorers. The data used in this release relies upon the compilation of the historical data by Payne’s Find Gold Limited circa 2011 and drilling and exploration work completed by them subsequently, as well as drilling undertaken by Falcon AustraliaLtdin 1987.
Geology	The regional geology of the Payne’s Find Project comprises a thick sequence of Archaean age folded mafic volcanogenic rocks that intruded by large granitoids. Outcrop is limited with extensive surficial cover of laterite and alluvium. Rock types include basalt dacite, meta-volcanogenic sediments, subordinate banded iron formation, and ultramafic schists. The mineralisation is considered to be largely structurally controlled and associated with late tectonic deformation both inductile and brittlezones.
_Drill hole Information _	See table in release
Data aggregation methods	Data is presented on a metre by metre assayed basis.
Relationship between mineralisation width and intercept lengths	The declination of the drilling is varied but is predominantly assigned to -60~~o~~to the east. In particular the drilling used in the Pansy Pit exploration target has been predominantly a dip of -60oand a hole azimuth averaging 045ofrom true north. Some information taken from historical reports infers geology trend is sub vertical to 70odip to the west which would equate to a nominal true thickness of approximately70-80% of intersected thickness.
Diagrams	A table of co-ordinates, sample result, and sample numbers relevant to the drill holes along with a location map showing drill hole locations in regards to the explaintargetreported.
Balanced reporting	Given the numerous historical workers, companies and varied reports and summaries of work undertaken to date the results are considered to be relevant andreporting as balanced
Other substantive exploration data	This release summarises all the known historical data to date. To the best of the Company’s knowledge no other exploration data is available that may have significantimpact onthenature and extent of mineralisationat the project.
Further work	Work programmes currently under review include further drilling and geophysical data acquisition to assist in delineating and verifying the exploration target cited along with ongoing desktop studies and literature reviews. Historic drilling results will be verified by re-drilling of those holes.

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