ROX RESOURCES LIMITED — Interim / Quarterly Report 2019

Jan 29, 2019

30 JANUARY 2019

Quarterly Report

For the period ending 31 December 2018

Highlights

Collurabbie Nickel-Copper-PGE-Gold Project, WA

• Diamond drilling at Collurabbie intersects massive and semi-massive nickel sulphides at Olympia

• 1.8m @ 1.27% Ni, 2.81% Cu, 0.09% Co, 5.97 g/t Pt+Pd

o 6.05m @ 1.31% Ni, 1.06% Cu, 0.12% Co, 2.25 g/t Pt+Pd

Mt Fisher Gold Project, WA

• Market conditions during the quarter deteriorated significantly and the Helios Gold IPO did not proceed as planned. The Bronzewing South option will expire in early February and the other party has declined to extend the option. Consequently, a decision has been made to cease the IPO process at this time.

Corporate

• Cash on hand at the end of the quarter was $7.9 million, with additional receivables/liquids of $4.08 million, for a total of $12.0 million.

Retirement of Managing Director

• Ian Mulholland, Managing Director, advised the Board of his intention to retire from the Company effective 30 April 2019. An announcement regarding a successor to Mr Mulholland is expected to be made shortly.

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Figure 1: Rox Project Location Map

Fisher East Nickel Project, WA

Following the completion of the updated Scoping Study, no field work was undertaken during the quarter.

Collurabbie Nickel-Copper-PGE-Gold Project, WA

High grade assay results from the Company’s diamond drilling campaign at the Collurabbie nickel project, located 230km north of Laverton in Western Australia (Figure 1) continued to be received (ASX:RXL 18 October 2018).

The overall aim of the diamond drilling program was:

• To obtain samples of mineralisation from the Olympia deposit for metallurgical test work, and

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• To test RC and aircore anomalies at the Olympia North prospect.

Significant results received from Olympia in hole CXDD004 (Figure 2) were:

• 1.8m @ 1.27% Ni, 2.81% Cu, 0.09% Co, 5.97 g/t Pt+Pd from 90.4m, and

• 6.05m @ 1.31% Ni, 1.06% Cu, 0.12% Co, 2.25 g/t Pt+Pd from 97.95m, including 1.9m @ 2.25% Ni, 2.02% Cu, 0.07% Co, 3.21 g/t Pt+Pd from 97.95m

Another 2.1m interval of massive sulphides was also intersected in hole CXDD001 at Olympia from 203.2m depth. The whole sample will be used for a metallurgical test, so the assay from this interval will be determined during this test work.

Two diamond holes were drilled at the Olympia North prospect, co-funded by the Western Australian Government (figures 3 – 5). The target ultramafic unit seems to have thinned at depth below the aircore and RC drilling anomalies. In CXDD002 immediately above the mineralised ultramafic unit, a thick porphyry unit was intersected and may be associated with potential remobilisation of Ni-Cu sulphides. Downhole electromagnetic surveys were completed.

Best results were:

• 0.2m @ 0.48% Ni, 0.25% Cu, 0.02% Co, 0.53 g/t Pt+Pd from 167.3m in hole CXDD002, and

• 0.2m @ 0.91% Ni, 0.81% Cu, 0.03% Co, 0.62 g/t Pt+Pd from 202.9m in hole CXDD003

Current JORC 2012 Mineral Resources at Collurabbie total 573,000t @ 1.6% Ni, 1.2% Cu, 0.082% Co and 2.3 g/t Pt+Pd, for contained tonnes of 9,170 Ni, 6,880t Cu, 470t Co, 42,400oz Pt+Pd (ASX:RXL 18 August 2017).

Assay data and drill hole information is given below in Table 1.

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Table 1: Diamond Drilling Assay Results

Hole	East	North	RL	Depth	From	To	Interval	Ni%	Cu%	Pt+Pd g/t	Co%	Prospect
CXDD001	422012	7025970	518	231	201.15	201.38	0.23	1.74	1.44	1.46	0.06	Olympia
and					203.16	205.27	2.11	Assays	Pending
CXDD002	421979	7026902	515	252.6	167.29	167.45	0.16	0.48	0.25	0.53	0.02	Olympia North
CXDD003	421897	7027007	515	249.5	202.87	203.07	0.20	0.91	0.81	0.62	0.03	Olympia North
CXDD004	422035	7026002	517	123	90.42	92.22	1.80	1.27	2.81	5.97	0.09	Olympia
and					97.95	104.00	6.05	1.31	1.06	2.25	0.12
including					97.95	99.86	1.91	2.25	2.02	3.21	0.07

Notes to Table:

• Grid coordinates GDA94: Zone 51, collar positions determined by hand held GPS.

• All hole azimuths 90 degrees magnetic and dips -60 degrees, downhole deviations may result in hole paths slightly different to those intended.

• RC drilling (hole prefix CXRC) by 5.5 inch (140mm) RC hammer, with samples cone split and collected every metre.

• Diamond drilling (hole prefix CXDD) by HQ/NQ diamond core, with core cut in half and sampled to either significant geological boundaries or even metre intervals.

• Diamond drill samples were crushed to 6.5mm. 3-5kg sample preparation by pulp mill to nominal P80/75um.

• Ni analysis by Intertek Genalysis Perth method 4A/OE: Multi-acid digest including Hydrofluoric, Nitric, Perchloric and Hydrochloric acids in Teflon Tubes. Analysed by Inductively Coupled Plasma Optical (Atomic) Emission Spectrometry. For higher precision analyses (e.g. Ni > 1%), Intertek Genalysis Perth method 4AH/OE: Modified (for higher precision) multi-acid digest including Hydrofluoric, Nitric, Perchloric and Hydrochloric acids. Analysed by Inductively Coupled Plasma Optical (Atomic) Emission Spectrometry.

• Certified Reference Standards and field duplicate samples were inserted at regular intervals to provide assay quality checks. Review of the standards and duplicates are within acceptable limits.

• Cut-off grade for reporting of 0.5% Ni with up to 2m of internal dilution allowed (with exception of holes CXDD002).

• Given the angle of the drill holes and the interpreted 60-65 degree westerly dip of the host rocks, reported intercepts will be slightly more than true width.

• NSR = No Significant Result.

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Figure 2: Olympia Long Section Looking West

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Figure 3: Drill Plan – Olympia North

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Figure 4: Olympia North Cross Section 7027000N

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Figure 5: Olympia North Cross Section 7026900N

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Mt Fisher Gold Project, WA

Market conditions during the quarter deteriorated significantly and the Helios Gold IPO (ASX:RXL 10 May 2018) did not proceed as planned. The Bronzewing South option (ASX:RXL 8 August 2018) will expire in early February, and the other party has declined to extend the option. Consequently, a decision has been made to cease the IPO process at this time.

Corporate

As of 31 December 2018, the Company’s cash balance was $7.9 million. In addition, a deferred payment of A$3.75 million cash from Teck Australia is due by 15 February 2023, and has a current value of $2.5 million in the Company’s accounts. The 14,527,205 Thor shares held by the Company had a market value of $334,125 as of 31 December 2018. In total, the Company’s cash, liquids (shares) and receivables are $12.0 million.

The Company is continuing to evaluate new growth opportunities to expand its current portfolio of resource projects.

Dated this 30th day of January 2019.

Signed on behalf of the Board of Rox Resources Limited.

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IAN MULHOLLAND Managing Director

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Competent Person Statements:

Resource Statements

The information in this report that relates to nickel Mineral Resources for the Fisher East project was reported to the ASX on 5 February 2016 (JORC 2012). Rox confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 5 February 2016, and that all material assumptions and technical parameters underpinning the estimates in the announcement of 5 February 2016 continue to apply and have not materially changed.

The information in this report that relates to nickel Mineral Resources for the Collurabbie project was reported to the ASX on 18 August 2017 (JORC 2012). Rox confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 18 August 2017, and that all material assumptions and technical parameters underpinning the estimates in the announcement of 18 August 2017 continue to apply and have not materially changed.

The information in this report that relates to gold Mineral Resources for the Mt Fisher project was reported to the ASX on 11 July 2018 (JORC 2012). Rox confirms that it is not aware of any new information or data that materially affects the information included in the announcement of 28 March 2018, and that all material assumptions and technical parameters underpinning the estimates in the announcement of 28 March 2018 continue to apply and have not materially changed.

Exploration Results

The information in this report that relates to previous Exploration Results, was either prepared and first disclosed under the JORC Code 2004 or under the JORC Code 2012 and has been properly and extensively cross-referenced in the text to the date of original announcement to ASX. In the case of the 2004 JORC Code Exploration Results and Mineral Resources, they have not been updated to comply with the JORC Code 2012 on the basis that the information has not materially changed since it was last reported.

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About Rox Resources

Rox Resources Limited is an emerging Australian minerals exploration company. The company has a number of key assets at various levels of development with exposure to gold, nickel, copper and platinum group elements (PGE’s), including the the Fisher East Nickel Project (WA), the Collurabbie Nickel-Copper-PGE Project (WA), and the Mt Fisher Gold Project (WA).

Fisher East Nickel Project (100%)

The Fisher East nickel project is located in the North Eastern Goldfields region of Western Australia and hosts several nickel sulphide deposits. The total project area is ~350km2.

Discovery of, and drilling at the Camelwood, Cannonball and Musket nickel prospects has defined a JORC 2012 Mineral Resource (ASX:RXL 5 February 2016) of 4.2Mt grading 1.9% Ni reported at 1.0% Ni cut-off (Indicated Mineral Resource: 3.7Mt grading 1.9% Ni, Inferred Mineral Resource: 0.5Mt grading 1.5% Ni) comprising massive and disseminated nickel sulphide mineralisation, and containing 78,000 tonnes of nickel. Higher grade mineralisation is present in all deposits (refer to ASX announcement above) and is still open at depth beneath each deposit. Additional nickel sulphide deposits continue to be discovered (e.g. Sabre) and these will add to the resource base. Exploration is continuing to define further zones of potential nickel sulphide mineralisation.

Collurabbie Gold-Nickel Project (100%)

The Collurabbie project is located in the highly prospective North Eastern Goldfields region of Western Australia and is prospective for gold and nickel. The project area of ~123km2 hosts the Olympia nickel sulphide deposit and a number of other prospects for nickel sulphide mineralisation. A JORC 2012 Inferred Mineral Resource of 573,000t grading 1.63% Ni, 1.19% Cu, 0.082% Co, 1.49g/t Pd, 0.85g/t Pt has been defined at Olympia (ASX:RXL 18 August 2017). The style of nickel sulphide mineralisation is different to that at Fisher East, with a significant copper and PGE component at Collurabbie, and has been compared to the Raglan nickel deposits in Canada (>1Mt contained nickel).

In addition, there is potential for gold mineralisation, with several strong drilling intersections including 2m @ 2.4g/t Au from the Naxos prospect.

Mt Fisher Gold Project (100%)

The Mt Fisher gold project is located in the North Eastern Goldfields region of Western Australia, adjacent to the Fisher East nickel project, and hosts several gold deposits. The total project area is ~220km2.

Drilling by Rox has also defined numerous high-grade gold targets and a JORC 2012 Measured, Indicated and Inferred Mineral Resource (ASX:RXL 11 July 2018) of 1.0 million tonnes grading 2.7 g/t Au reported at a 0.8 g/tAu cut-off exists for 89,000 ounces of gold (Measured: 170,000 tonnes grading 4.1 g/t Au, Indicated: 220,000 tonnes grading 2.7 g/t Au, Inferred: 630,000 tonnes grading 2.3 g/t Au) aggregated over the Damsel, Moray Reef and Mt Fisher deposits.

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Appendix 5B Mining Exploration Entity Quarterly Report

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Appendix 5B

Name of entity ROX RESOURCES LIMITED

ABN	ABN	Quarter ended("currentquarter")	Quarter ended("currentquarter")
53 107 202 602		31-Dec-18
Consolidated statement of cash flows		Current quarter $A’000	Year to date (6 months) $A’000
1 Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs (e) administration and corporate costs 1.3 Dividends received 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Research and development refunds 1.8 Other - Helios IPO expenses 1.9 Net cash from / (used in) operating activities		- - (368) - - (120) (180) - 86 - - - (159)	- - (986) - - (233) (374) - 113 - - - (355)
		(741)	(1,835)
2 Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets 2.2 Proceeds from the disposal of: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other 2.6 Net cash from / (used in) investing activities		(10) - - - - - - - - - -	(14) (639) - - - - - 13 - - -
		(10)	(640)

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Appendix 5B Mining Exploration Entity Quarterly Report

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Consolidated statement of cash flows	Current quarter $A’000	Year to date (6 months) $A’000
3 Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 ...... 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities Transaction costs related to issues of shares, convertible notes or options	- - - - - - - - -	- - - - - - - - -
	-	-
4 ........ 4.1 4.2 ...... 4.3 ...... 4.4 ...... 4.5... 4.6 Cash and cash equivalents at end of period Cash and cash equivalents at beginning of period Effect of movement in exchange rates on cash held Net cash from / (used in) operating activities (item 1.9 above) Net cash from / (used in) investing activities (item 2.6 above) Net cash from / (used in) financing activities (item 3.10 above) Net increase / (decrease) in cash and cash equivalents for the period	8,654 (741) (10) - -	10,378 (1,835) (640) - -
	7,903	7,903
5 5.1 5.2 5.3 5.4 5.5 ...... Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts Bank balances Call deposits Other (provide details) Cash and cash equivalents at end of quarter (should equal item 4.6 above) Bank overdrafts	Current quarter $A’000	Previous quarter $A’000
	415 7,488 - -	200 8,454 - -
	7,903	8,654

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Appendix 5B Mining Exploration Entity Quarterly Report

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Appendix 5B Mining Exploration Entity Quarterly Report . ~~.~~ .
6 6.1 6.2 ...... 6.3 ...... Payments to directors of the entity and their associates Aggregate amount of payments to these parties included in item 1.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2	Current quarter $A'000
	144
	-

Includes salaries, fees and superannuation to executive and non-executive directors.

7 7.1 7.2 ...... Aggregate amount of cash flow from loans to these parties included in item 2.3 Payments to related entities of the entity and their associates Aggregate amount of payments to these parties included in item 1.2	Current quarter $A'000
	-
	-

• 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

n/a

8 8.1 Loan facilities 8.2 Credit standby arrangements 8.3 Other (please specify) Financing facilities available Add notes as necessary for an understanding of the position	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
	-	-
	-	-
	-	-

8.4 Include below a description of each facility above, including the lender, interest rate and whether ...... it is secured or unsecured. If any additional facilities have been entered into or are proposed to be ......... entered into after quarter end, include details of those facilities as well.

n/a

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Appendix 5B

Mining Exploration Entity Quarterly Report

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. . 9 9.1 Exploration and evaluation 9.2 Development 9.3 Production 9.4 Staff costs 9.5 Administration and corporate costs 9.6 Other (provide details if material) 9.7 Estimated cash outflows for next quarter Total estimated cash outflows	. . 9 9.1 Exploration and evaluation 9.2 Development 9.3 Production 9.4 Staff costs 9.5 Administration and corporate costs 9.6 Other (provide details if material) 9.7 Estimated cash outflows for next quarter Total estimated cash outflows	. . 9 9.1 Exploration and evaluation 9.2 Development 9.3 Production 9.4 Staff costs 9.5 Administration and corporate costs 9.6 Other (provide details if material) 9.7 Estimated cash outflows for next quarter Total estimated cash outflows	. . 9 9.1 Exploration and evaluation 9.2 Development 9.3 Production 9.4 Staff costs 9.5 Administration and corporate costs 9.6 Other (provide details if material) 9.7 Estimated cash outflows for next quarter Total estimated cash outflows	$A’000	$A’000
				150 - 300 - 140 -
				590
10 .....	Changes in tenements (items 2.1(b) & 2.2(b) above)	Tenement reference and location	Nature of interest	Interest at beginning of quarter	Interest at end of quarter
10.1 .....	Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced
10.2 .....	Interests in mining tenements and petroleum tenements acquired or increased	E53/2002 E53/2062	All Minerals All Minerals	0% 0%	Application Application

Refer to Annexure 1 for full list of mining tenements.

Compliance statement

• This statement has been prepared in accordance with accounting standards and policies which

• 1 comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Sign here:

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Date: 30 January 2019

(Company secretary)

Print name: Brett Dickson

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Appendix 5B Mining Exploration Entity Quarterly Report

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Annexure 1 - Mining Tenements

Project	Tenement Number	Interest	Interest Held
Mt Fisher, WA	E53/1061	All Minerals	100%
	E53/1106	All Minerals	100%
	E53/1319	All Minerals	100%
	E53/1788	All Minerals	100%
	E53/1836	All Minerals	100%
	M53/09	All Minerals	100%
	M53/127	All Minerals	100%
Fisher East, WA	E53/1218	All Minerals	100%
	E53/1318	All Minerals	100%
	E53/1716	All Minerals	100%
	E53/1802	All Minerals	100%
	E53/1884	All Minerals	100%
	E53/1885	All Minerals	100%
	E53/1886	All Minerals	100%
	E53/1887	All Minerals	100%
	E53/1950	All Minerals	100%
	E53/2002	All Minerals	Application
	E53/2062	All Minerals	Application
	P53/1496	All Minerals	100%
Collurabbie, WA	E38/2009	All Minerals	100%
	E38/2912	All Minerals	100%
	E38/3193	All Minerals	100%

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