REACH RESOURCES LIMITED — Capital/Financing Update 2021

Jan 12, 2021

ASX ANNOUNCEMENT/MEDIA RELEASE 13 January 2021

DIRECTORS:

Mr Collin Vost (Executive Chairman)

Mr Marcus Flis (Technical Director)

Mr Justin Vost (NonExecutive Director)

CAPITAL STRUCTURE:

Share on issue: 536,008,309 Options on issue: 25,750,000 (Exp.31Dec2022/$0.01) 18,000,000 (Exp.31Dec2023/$0.01)

Registered Office:

Shop 11, Southshore Piazza 85, The Esplanade, South Perth, WA, 6151

Postal address:

PO Box 1196 South Perth, WA, 6951

Ph: +61 (8) 6436 2300

admin@cervanantescorp.com.au www.cervantescorp.com.au

ASX : CVS Drilling for gold successfully completed at Primrose

Key points:

• Verification drilling of the Blue Heaven Exploration Target1returns exciting geological indictors
• Shallow drilling completed in historic Pansy Pit to test for near-surface gold mineralisation.
• Intercepts in Pansy Pit include:
  • o 2m @ 8.93g/t from 9m incl 1m @ 17.26g/t from 9m in CVSRCP021
  • o 3m @ 3.62g/t from 15m, incl 1m @ 8.73g/t from 16m in CVSRCP022
  • o 5m @ 7.74g/t from 7m, incl 3m @ 12.34g/t from 7m in CVSRCP027
  • o 14m @ 1.41g/t from 4m, incl 2m @ 3.71g/t from 16m in CVSRCP030
  • o 2m @ 6.31g/t from 6m in CVSRCP033
  • o 4m @ 3.40g/t from 4m in CVSRCP034
• Small Mining Proposal application commenced for the Pansy Pit area
• Reconnaissance drilling of a historic MMI surface geochemistry gold anomaly completed

1 ASX release 16 July, 2020

Cervantes Corporation Limited (ASX:CVS) is pleased to announce the completion of three drilling programmes and receipt of assays from its Primrose Gold Project in the Paynes Find Goldfield of WA (Figure 1).

Three areas were drilled:

• Blue Heaven
• Pansy Pit
• MMI anomaly

A tabulation of the hole collars is included as Appendix 1.

Blue Heaven Exploration Target

The Company announced an Exploration Target at the Blue Heaven Prospect to the market on 16 July, 2020. (The Company is not aware of any new information or data that materially affects the information included in the ASX release of 16th July 2020 and the form and context in which the exploration target was presented have not been materially modified.)

The exploration target estimated is given in Table 1. The potential quantity and grade

Figure 1 Primrose Gold Project location.

of an Exploration Target estimate is conceptual in nature, as there has been insufficient reliable exploration data to estimate a Mineral Resource and that it is uncertain if further exploration will result in the estimation of a Mineral Resource.

Category	Tonnage Range	Grade Range
Exploration Target	170,000 to 520,000	2.2 to 4.5g/t

Table 1 Exploration target estimates at Blue Heaven.

The aim of the drilling was to verify historic intercepts as part of Cervantes' validation process for evaluating the historic drilling. Six RC holes, CVSRC001 to 6, were drilled for a total of 263m (Figure 2). The targeted depths of the holes were not achieved because of hard ground and insufficient equipment due to rig unavailability. However, very promising geology was intersected. In particular, in hole CVSRC004

• a broad zone of intensely altered sericitic felsic schist (32m to 55m) with strong magnetiteepidote alteration. The magnetite alteration is logged as "extreme".
• a lamprophyre dyke is logged at 32-34m

Both of these observations indicate very favourable environments for gold mineralisation. Magnetite alteration indicates the passage hydrothermal fluids commonly associated with felsic intrusiverelated mineralising systems. Many mesothermal gold deposits are temporally and spatially

associated with lamprophyres which often carry gold orders of magnitude higher than other igneous rocks. Importantly, they tend to indicate deeper seated regional heat events that drive gold mineralisation. This is the first time lamprophyres have been identified in the Paynes Find goldfield. CVSRC004 was drilled to test the western downdip extension of an intersection of 1m @ 271.63g/t from 41m but failed to achieve the target depth.

Figure 2 RC drill hole locations, Blue Heaven area, Primrose Gold Project.

Pansy Pit shallow mineralisation drilling

The Pansy Pit was mined in the mid-1980s to a depth of approximately 5m. The ore comprises a series of parallel, moderately south-west dipping quartz lodes. Cervantes undertook RC drilling in the pit in 2018. Results, announced 8 August 2018, are included as Table 2.

Acquisition of a high resolution Digital Elevation Model during 2020 has allowed historic drilling and the 2018 drilling to be put on to the same datum. As a result, the steeper dips previously identified have proven to be shallower and possibly more attractive for mining.

A programme of 25 RC holes for 436m was undertaken to fill in the existing drilling to better define the near surface gold mineralisation potential in the pit. A tabulation of drill hole collars from this programme is included in Appendix 1, whilst hole locations are shown in Figure 3.

Hole	Intervalm	Gold gradeg/t	Fromm	Withinbroaderinterval m	Gold Gradeg/t	Fromm
CVSRCP001	2	1.63	10	5	1.03	7
CVSRCP001	2	6.32	34	7	2.33	34
CVSRCP002	1	5.83	11	4	2.46	8
CVSRCP003	2	1.64	10
CVSRCP004	1	2.82	31	5	1.22	29
CVSRCP005	1	2.53	7
	2	2.08	15
CVSRCP006	1	6.31	13	3	3.58	13
CVSRCP007	1	5.06	9	4	2.11	8
	2	9.14	15	15	2.74	14
CVSRCP008	2	2.40	5
	1	4.28	10	3	1.98	9
	2	2.20	15
	1	1.94	27
CVSRCP009	2	4.29	15	6	2.41	15
CVSRCP010	2	5.53	13	3	4.30	12
CVSRCP011	1	1.73	4
	1	1.3	22

Table 2 Significant intersections in the Pansy Pit from Cervantes' 2018 RC drilling.

Figure 3 RC drill hole locations, Pansy Pit, Primrose Gold Project.

Drilling defined up to five quartz lodes, ranging in apparent thickness from 1m to 3m. RC sampling was undertaken on one metre intervals, defining the minimum apparent thickness. The interpreted dip of the lodes is approximately 35o to the south west. As the holes' dip was 60o to towards the north east the true thickness will be only 1% to 2% less than the apparent thickness. However, this needs to be confirmed by core (diamond) drilling.

Due to the shallow nature of the drilling, the holes generally intersected only the shallowest one or two lodes. Notable assay results from the drilling are:

Hole	Intervalm	Gold gradeg/t	Fromm	Withinbroaderinterval m	Gold Gradeg/t	Fromm
CVSRCP013	1	2.705	10	3	1.52	8
CVSRCP014	1	4.251	16	4	1.705	16
CVSRCP019	1	3.567	25	3	2.214	23
CVSRCP021	1	17.265	9	2	8.933	9
CVSRCP022	1	8.726	16	3	3.618	15
CVSRCP023	1	4.251	13	3	2.538	13
CVSRCP024	1	5.603	5	3	3.162	5
	1	5.378	10	3	2.774	9
CVSRCP025	1	6.550	15	3	3.886	15
CVSRCP026	1	3.579	5	7	1.40	5
CVSRCP027	3	12.336	7	5	7.738	7
CVSRCP030	2	3.709	16	14	1.408	4
CVSRCP033	2	6.308	6
CVSRCP034	4	3.402	4

This drilling indicates that:

• near surface gold mineralisation has been outlined
• the shallow dips of the quartz lodes has been confirmed
• whilst the gold tends to occur within quartz lodes, gold also occurs in the host rock. This confirms the observation from the 2018 drilling results
• while gold grades tend to be erratic, a common feature of quartz vein hosted gold, the strike persistence of the quartz lodes has been established

A representative cross section, whose location is shown in Figure 3, is shown in Figure 4.

MMI Gold Anomaly – P59/2174

A historic surface geochemistry gold anomaly, using the MMI method, remained untested by a previous explorer. The anomaly defines a north-south zone of approximately 700m strike extent. It attains a magnitude of 0.129g/t gold and is considered anomalous in this setting. The anomaly is hosted by the Paynes Find Schist, the host to the Paynes Find gold field.

Figure 4 Geological cross section. The location of the cross section is indicated in Figure 3.

Two shallow RC holes were drilled to test the anomaly: CVSRC007 and CVSRC008 (Figure 2). Both holes intersected unaltered granodiorites with a minor quartz vein. Gold grades were generally below detection other than both holes being anomalous at surface, to a maximum of 0.048g/t gold, and the quartz vein to a maximum of 0.02g/t gold. The source of the MMI is considered to be tested. Assaying was on four metre composites.

Proposed Activities During 2021

Blue Heaven Target:

validation of historic hole locations will be undertaken. Cervantes aims to undertake the work required to progress this mineralisation to a formal Mineral Resource, the potential quantity and grade of which is conceptual in nature, as there has been insufficient reliable exploration

data to estimate a Mineral Resource and that it is uncertain if further exploration will result in the estimation of a Mineral Resource.

• resampling of anomalous four metre gold intercepts to one metre to better define those intercepts
• Assessment of extent of magnetite alteration zone with respect to the gold mineralisation with the potential of ground magnetic survey to map out that zone.

Pansy Pit:

• resampling of anomalous four metre gold intercepts to one metre to better define those intercepts.
• Preparation and submission of a Small Mining Proposal.
• Planning of a possible third programme of shallow in-pit drilling to aid in grade control for any future mining

Mr Collin Vost, Executive Chairman of Cervantes, commented: "Cervantes is progressing its gold assets with a view to engaging a third party to purchase the ore or mine and toll treat ore from our Primrose Gold Project. The Company is excited with its prospects at the Project but needs to do additional work to realise its value, which is currently underway."

About Cervantes Corporation Limited

Cervantes is an emerging gold explorer and aspiring gold miner. It holds a commanding position in an oft-overlooked gold field that has had only sporadic, disjointed, and interrupted exploration carried out on it. Cervantes has identified opportunities in this gold field 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 operated in this field from 1911 till 1982. Some 79,915 ounces of gold was mined at an average grade of 28g/t during this period. It is generally accepted that significantly more gold than this was won from alluvial and unreported production.

Cervantes now controls mining leases and prospecting licences 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 are based upon information compiled by Mr Marcus Flis, a Technical Director of Cervantes Corporation Limited. Mr Flis 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.

The information in this announcement that relates to Exploration Results, Mineral Resources and Exploration Target statements is based on information compiled or reviewed by Mr Philip Jones, who is a Member of the Australasian Institute of Mining and Metallurgy and The Australasian Institute of Geoscientists. Mr Jones is a consultant to the Company. Mr Jones has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Jones consents to the inclusion in the announcement of the matters based on his information in the form and context in which it applies. Exploration Targets described in this report are conceptual in nature and there is insufficient reliable information to establish whether further exploration will result in the determination of Mineral Resources.

Forward Looking Statement

This report contains forward looking statements concerning the projects owned by Cervantes Corporation Limited. Statements concerning exploration targets 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

APPENDIX I: Hole statistics

Hole ID	East(GDA94z50)	North(GDA94z50)	RLfromDEM	TotalDepthm	AzimuthTN	Dip	Tenement
CVSRCP012	567483	6762120	332.47	18	45o	60o	M59/662
CVSRCP013	567487	6762109	332.64	18	45o	60o	M59/662
CVSRCP014	567490	6762098	332.86	24	45o	60o	M59/662
CVSRCP015	567495	6762103	332.75	18	45o	60o	M59/662
CVSRCP016	567499	6762109	332.53	12	45o	60o	M59/662
CVSRCP017	567505	6762096	332.63	24	45o	60o	M59/662
CVSRCP018	567508	6762100	332.57	18	45o	60o	M59/662
CVSRCP019	567510	6762089	332.39	30	45o	60o	M59/662
CVSRCP020	567517	6762099	332.39	12	45o	60o	M59/662
CVSRCP021	567527	6762096	332.4	12	45o	60o	M59/662
CVSRCP022	567528	6762087	332.38	24	45o	60o	M59/662
CVSRCP023	567530	6762089	332.4	18	45o	60o	M59/662
CVSRCP024	567538	6762088	332.29	18	45o	60o	M59/662
CVSRCP025	567546	6762077	332.05	18	45o	60o	M59/662
CVSRCP026	567552	6762085	332.2	12	45o	60o	M59/662
CVSRCP027	567555	6762067	332.5	12	45o	60o	M59/662
CVSRCP028	567559	6762056	332.52	18	45o	60o	M59/662
CVSRCP029	567597	6762033	334.94	24	45o	60o	M59/662
CVSRCP030	567590	6762039	334.72	18	45o	60o	M59/662
CVSRCP031	567584	6762031	334.94	18	45o	60o	M59/662
CVSRCP032	567572	6762042	334.85	18	45o	60o	M59/662
CVSRCP033	567515	6762108	332.3	10	45o	60o	M59/662
CVSRCP034	567496	6762121	332.43	18	45o	60o	M59/662
CVSRCP035	567489	6762129	332.41	18	45o	60o	M59/662
CVSRCP036	567531	6762101	332.35	6	45o	60o	M59/662
CVSRC001	566588	6764130	NR	40	90o	60o	M59/10
CVSRC002	566618	6764160	NR	52	90o	60o	M59/10
CVSRC003	566578	6764160	NR	57	90o	60o	M59/10
CVSRC004	566579	6764179	NR	60	90o	60o	M59/10
CVSRC005	566831	6764126	NR	24	90o	60o	M59/10
CVSRC006	567063	6763846	NR	30	90o	60o	M59/244
CVSRC007	567390	6764000	NR	20	90o	60o	P59/2174
CVSRC008	567390	6764100	NR	20	90o	60o	P59/2174

JORC Code, 2012 Edition

Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding

sections.)

Criteria	JORC Code explanation	Commentary
Samplingtechniques	 Nature and quality of sampling (eg cutchannels, random chips, or specificspecialised industry standardmeasurement tools appropriate to theminerals under investigation, such asdown hole gamma sondes, or handheldXRF instruments, etc). These examplesshould not be taken as limiting the broad	Reverse circulation (RC) drilling samples werecollected through a rig-mounted cyclone withcollected in one metre intervals. Samples werespear-sampled using multiple sampling pointsfrom the sample pile. RC drill chips (from eachmetre interval) were examined visually andlogged by the geologist.
	meaning of sampling. Include reference to measures taken toensure sample representivity and theappropriate calibration of anymeasurement tools or systems used.	Any visual observation of alteration or ofmineralisation was noted on the drill logs. Theprospect is quartz related gold mineralisation;care was taken to log quartz content of thechips.
	 Aspects of the determination ofmineralisation that are Material to thePublic Report. In cases where 'industry standard' work	Duplicate samples comprise approximately 4%of total samples taken (ie one duplicatesubmitted for every 25 samples).
	has been done this would be relativelysimple (eg 'reverse circulation drilling wasused to obtain 1 m samples from which 3kg was pulverised to produce a 30 g	A company contract geologist supervised thedrilling and sampling to ensure representativeness. Drilling was done by industrystandard techniques.
	charge for fire assay'). In other cases moreexplanation may be required, such aswhere there is coarse gold that hasinherent sampling problems. Unusualcommodities or mineralisation types (eg	Duplicates, were submitted to ensure assayingreliability and accuracy. Laboratory standardsand blanks were used to monitor labcontamination and accuracy.
	submarine nodules) may warrantdisclosure of detailed information.	Hole locations were surveyed by hand held GPSand by location onto 30cm resolution DEM andaerial photography.
		No downhole surveys were undertaken.
Drillingtechniques	 Drill type (eg core, reverse circulation,open-hole hammer, rotary air blast, auger,Bangka, sonic, etc) and details (eg corediameter, triple or standard tube, depth ofdiamond tails, face-sampling bit or othertype, whether core is oriented and if so, bywhat method, etc).	Drilling was by Reverse Circulation (RC) withNQ sized bit and rods.
Drill samplerecovery	 Method of recording and assessing coreand chip sample recoveries and resultsassessed.	RC sample recovery and sample quality wasrecorded via visual estimation of sample volumeand condition of the drill spoils.
	 Measures taken to maximise samplerecovery and ensure representative natureof the samples.	RC sample recovery was deemed as good withno loss of circulation reported.
	 Whether a relationship exists betweensample recovery and grade and whether	RC sample recovery was not problematic as thesamples were dry.
	sample bias may have occurred due topreferential loss/gain of fine/coarsematerial.	Relationships between recovery and grade arenot evident and are not expected given thegenerally excellent and consistently high samplerecovery.
		RC results are not utilised for Mineral Resourceestimations.
Logging	 Whether core and chip samples have been	RC chips were geologically logged at one metre

Criteria	JORC Code explanation	Commentary
	geologically and geotechnically logged to alevel of detail to support appropriateMineral Resource estimation, miningstudies and metallurgical studies.	intervals into a digital database that was keptwith sample numbers.Logging is qualitative.
	 Whether logging is qualitative orquantitative in nature. Core (or costean,channel, etc) photography. The total length and percentage of the
	relevant intersections logged.
Sub-samplingtechniques	 If core, whether cut or sawn and whetherquarter, half or all core taken.	One metre samples were collected from acyclone into a plastic bucket and then laid out on
and samplepreparation	 If non-core, whether riffled, tube sampled,rotary split, etc and whether sampled wetor dry.	the ground in rows of 10.Four metre composites were used at depths of
	 For all sample types, the nature, qualityand appropriateness of the samplepreparation technique.	reduced interest or indications (eg, graniteintercepts may be sampled at four metres,sericite schists and quartz bearing intercepts atone metre.
	 Quality control procedures adopted for allsub-sampling stages to maximise	Mineralisation style is late stage quartz veins.
	representivity of samples. Measures taken to ensure that thesampling is representative of the in situmaterial collected, including for instanceresults for field duplicate/second-halfsampling. Whether sample sizes are appropriate to	The one metre samples are likely to downgradeactual grades intersected, but arecommensurate with minimum miningrequirements; sample size is consideredappropriate for resource estimation work.
	the grain size of the material beingsampled.
Quality ofassay data	 The nature, quality and appropriateness ofthe assaying and laboratory procedures	Fire assay is a total digest technique and isconsidered appropriate for gold.
andlaboratory	used and whether the technique isconsidered partial or total.	Duplicates of 1 in every 25 samples weresubmitted.
tests	 For geophysical tools, spectrometers,handheld XRF instruments, etc, theparameters used in determining the	The lab inserted random pulp duplicates,certified reference standards and blanks.
	analysis including instrument make andmodel, reading times, calibrations factorsapplied and their derivation, etc.	Accuracy and precision levels have beendetermined to be satisfactory after analysis of
	 Nature of quality control proceduresadopted (eg standards, blanks, duplicates,external laboratory checks) and whetheracceptable levels of accuracy (ie lack ofbias) and precision have been established.	these QA/QC samples.
Verification ofsampling andassaying	 The verification of significant intersectionsby either independent or alternativecompany personnel.	Analysis was by acqua regia using Intertek'sFA50/OE procedure: samples were pulverised tominus 75 µm before a split of 25g was taken and
	 The use of twinned holes. Documentation of primary data, data entryprocedures, data verification, data storage(physical and electronic) protocols.	analysed using standard Fire Assay procedures.The method is an accepted industry analyticalprocess appropriate for the nature and style ofmineralisation under investigation.
	 Discuss any adjustment to assay data.	There were no twinned holes.
		No adjustments were made to assay data.
Location ofdata points	 Accuracy and quality of surveys used tolocate drill holes (collar and down-holesurveys), trenches, mine workings andother locations used in Mineral Resourceestimation.	All samples sites have been located using ahand held GPS unit with an accuracy of +/-5m.These were cross-checked with a 0.3mresolution DEM and aerial photography.
	 Specification of the grid system used.	The drilling co-ordinates are all in GDA94 MGA

Criteria	JORC Code explanation	Commentary
	 Quality and adequacy of topographiccontrol.	Zone 50 co-ordinates.Azimuth was set by hand held compass therebeing no intensely magnetic rocks in the area.Drill hole inclination is set by the driller using aclinometer on the drill mast and checked by thegeologist prior to commencement of drilling.Camera survey points were at the top andbottom of each hole.Collar RLs were taken from the DEM data.
Data spacinganddistribution	 Data spacing for reporting of ExplorationResults. Whether the data spacing and distributionis sufficient to establish the degree ofgeological and grade continuityappropriate for the Mineral Resource andOre Reserve estimation procedure(s) andclassifications applied. Whether sample compositing has beenapplied.	RC holes were drilled on an existing grid set upfor resource drill out.Together with historic data, the data spacing anddistribution will be sufficient to establish thedegree of geological and grade continuityappropriate for the Mineral Resource and OreReserve estimation procedure(s) andclassifications applied.
Orientation ofdata inrelation togeologicalstructure	 Whether the orientation of samplingachieves unbiased sampling of possiblestructures and the extent to which this isknown, considering the deposit type. If the relationship between the drillingorientation and the orientation of keymineralised structures is considered tohave introduced a sampling bias, thisshould be assessed and reported ifmaterial.	Drilling followed the geometry of existing holes.Previous resource estimation defined the strikeand dip of ore zones. Current drilling utilisedthat information.It is not anticipated that, on currentinterpretation, any bias has been introduced tothe sampling.
Samplesecurity	 The measures taken to ensure samplesecurity.	Samples were collected in calico bags withsample number tickets included in each bag andthe same identification posted externally.Samples were delivered to the lab by a companyrepresentative using commercial transportservices.
Audits orreviews	 The results of any audits or reviews ofsampling techniques and data.	Standards, blanks, repeats, and check assaysare undertaken to ensure data robustness.

Section 2 Reporting of Exploration Results. (Criteria listed in the preceding section also

apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral Type, reference name/number, locationand ownership including agreements ortenement andmaterial issues with third parties such asland tenurejoint ventures, partnerships, overridingstatusroyalties, native title interests, historicalsites, wilderness or national park andenvironmental settings.		Exploration results relate to work carried outover a package of tenements comprising miningand prospecting leases.
		The tenements are 100% owned and controlledby Cervantes Corporation Limited.
	All tenements and leases are currently in good
 The security of the tenure held at the timeof reporting along with any knownimpediments to obtaining a licence tooperate in the area.		standing with DMP with no known impedimentsto further exploration or development.

Criteria	JORC Code explanation	Commentary
Exploration	 Acknowledgment and appraisal of	Historical drill holes exist at the project area.
done by otherparties	exploration by other parties.	Falcon Australia Ltd undertook a 21 hole drillingcampaign in 1987 from which they estimated anon-JORC Indicated Resource of 18,500t at4.28g/t gold for approximately 2,500oz (DMPreport A21516/M4741.)
Geology	 Deposit type, geological setting and styleof mineralisation.	The mineralisation is seen as predominantlyquartz veining in an undifferentiated maficsequence. Felsic intrusives are the likely driverof the gold mineralisation.
Drill holeInformation	 A summary of all information material tothe understanding of the explorationresults including a tabulation of thefollowing information for all Material drillholes:o easting and northing of the drill holecollaro elevation or RL (Reduced Level –elevation above sea level in metres) ofthe drill hole collaro dip and azimuth of the holeo down hole length and interceptiondeptho hole length. If the exclusion of this information isjustified on the basis that the informationis not Material and this exclusion does notdetract from the understanding of thereport, the Competent Person shouldclearly explain why this is the case.	See tables in this release.
Dataaggregationmethods	 In reporting Exploration Results, weightingaveraging techniques, maximum and/orminimum grade truncations (eg cutting ofhigh grades) and cut-off grades areusually Material and should be stated. Where aggregate intercepts incorporateshort lengths of high grade results andlonger lengths of low grade results, theprocedure used for such aggregationshould be stated and some typicalexamples of such aggregations should beshown in detail. The assumptions used for any reporting ofmetal equivalent values should be clearlystated.	Simple averages are used where aggregatesare provided.Aggregated intercepts include contiguousmetres where the grade does not fall below0.5g/t for more than one metre.Reported aggregated intervals have beenweighted by length.No density weighting has been applied.No top-cuts have been applied (unless specifiedotherwise).Higher grade intervals of mineralisation internalto broader zones of mineralisation are reportedas included intervals.Metal equivalence is not used.
Relationshipbetweenmineralisationwidths andinterceptlengths	 These relationships are particularlyimportant in the reporting of ExplorationResults. If the geometry of the mineralisation withrespect to the drill hole angle is known, itsnature should be reported. If it is not known and only the down holelengths are reported, there should be aclear statement to this effect (eg 'downhole length, true width not known').	The intervals reported are the initial drill intervalsand intercepts.No adjustment has been to the intervals toaccount for the declination of drilling.Drilling is generally inclined at 60oto the NW(TN). Ore shoots generally dip approximately35oto the SE, meaning the apparent thickness isapproximately the true thickness; this needs tobe confirmed.
Diagrams	 Appropriate maps and sections (with	Relevant location maps and figures are included

Criteria	JORC Code explanation	Commentary
	scales) and tabulations of interceptsshould be included for any significantdiscovery being reported These shouldinclude, but not be limited to a plan viewof drill hole collar locations andappropriate sectional views.	in the body of this announcement.
Balancedreporting	 Where comprehensive reporting of allExploration Results is not practicable,	Table of representative grades are included inthe report.
	representative reporting of both low andhigh grades and/or widths should bepracticed to avoid misleading reporting ofExploration Results.	This announcement includes the results of Auassays for the holes drilled as a follow-upprogramme to existing (reported) historic drilling.
Othersubstantive	 Other exploration data, if meaningful andmaterial, should be reported including (but	The area is covered by a 50m line spacedaeromagnetic survey.
not limited to): geological observations;explorationgeophysical survey results; geochemicaldatasurvey results; bulk samples – size andmethod of treatment; metallurgical test	Previous workers undertook sufficient drilling todefine an Indicated Resource, though that is notnow JORC compliant.
	results; bulk density, groundwater,geotechnical and rock characteristics;potential deleterious or contaminatingsubstances.	No bulk samples, metallurgical results,groundwater or geotechnical studies have beencarried out yet.
Further work	 The nature and scale of planned furtherwork (eg tests for lateral extensions ordepth extensions or large-scale step-outdrilling). Diagrams clearly highlighting the areas of	Work programmes currently under reviewinclude re-assaying of composite samples toone metre intervals,further drilling, metallurgicaltesting, resource estimation, and pit optimisationstudies.
possible extensions, including the maingeological interpretations and futuredrilling areas, provided this information isnot commercially sensitive.		Any interpreted extension of the existingresource is commercially sensitive.

Section 3 Estimation and Reporting of Mineral Resources

No Mineral Resources are being reported.