SULTAN RESOURCES LTD — Regulatory Filings 2018

Dec 12, 2018

ASX ANNOUNCEMENT

13th December 2018

MAIDEN DRILLING PROGRAM AT THADUNA IDENTIFIES MULTIPLE GOLD AND BASE METAL TARGETS

Highlights

• 2,797m, 71-hole aircore drilling program identified several large and strong exploration targets
• 1km long gold anomaly defined
  • o Peak values of 4m @ 373 ppb Au and 4m @ 157ppb Au
• Gold anomaly shows similar geological setting and element association to nearby intrusionrelated gold discoveries such as Ned's Creek Gold Project
• >1.5km long multi-element base metal trend identified
  • o Peak values over 4m of 520ppm Cu, 760ppm Zn, 405ppm Co, 578ppm Ni, 1380ppm Pb
• Base metal trend shows similar structural setting and element association to nearby sediment-hosted copper discoveries such as the Enigma Copper Project
• Next steps anticipated 2019 delineation of anomalies for deep target drilling

The Board of Sultan Resources Ltd (Sultan or the Company) is pleased to announce that all results from the maiden 2,797m aircore drilling program undertaken at the Company's Thaduna prospect in November (see ASX Announcement 9/11/2018) have now been received. The Thaduna Prospect is located in the Meekatharra area of Western Australia and is situated adjacent to Lodestar Mineral's Ned's Creek Gold discovery (see LSR ASX Announcement on 03/08/2018) and along strike to the northeast from Sandfire Resources' Enigma Copper Project (See SFR Announcement on 25/10/2018).

The drilling program included 71 vertical aircore holes and was undertaken as a first pass assessment of licence E42/3481 to understand the geological setting and ascertain the location and tenor of any gold or base metal occurrences. The program successfully identified a number of very strong exploration targets with a prominent, 1km long gold anomaly occurring coincident with Archaean greenstones in contact with granites in the north of the licence as well as a NE-SW trending, widespread multi-element base metal anomaly trending for over 1.5km diagonally across the licence. Both anomalies show strong similarities in geological

Sultan Resources Ltd ACN: 623 652 522

CORPORATE DETAILS

ASX Code: SLZ

DIRECTORS

STEVEN GROVES MANAGING DIRECTOR

JEREMY KING CHAIRMAN

LINCOLN HO NON-EXECUTIVE DIRECTOR

ARIEL EDWARD KING NON-EXECUTIVE DIRECTOR

CONTACT

Suite 2, Level 1, 1 Altona Street West Perth WA 6005 www.sultanresources.com.au

setting and the element association to results from exploration that led to the discovery of nearby significant gold and base metal mineralisation such as Lodestar's Ned's Creek Gold and Sandfire Resources Enigma Project.

Results - Gold

Drill holes in the north of the licence returned widespread gold anomalism from predominantly Archean greenstones, particularly in the contact zone with granitic intrusions. Significant results include:

Hole ID	From (m)	To (m)	Au ppb	Width (m)	Au ppb x m
18STHA007	8	28	59	20	1180
Incl	20	24	157	4	628
18STHA008	0	47	53	47	2491
Incl	36	40	373	4	1492
18STHA009	0	16	22	16	352
18STHA010	12	32	38	20	760
18STHA014	36	56	28	20	560
18STHA016	16	20	41	4	164
and	56	64	18	8	144
18STHA017	0	16	16	16	256
18STHA019	32	40	38	8	304
18STHA056	20	24	28	4	112
18STHA057	24	32	19	8	152
18STHA059	8	44	11	36	396
18STHA061	20	28	14	8	112

Table 1: Significant gold intercepts where Au ppb multiplied by width of intersection in metres exceeds 100 (all intersections are down hole and not stated as true thickness)

The anomalous zone extends for at least 1km in an east-west direction and is open to the west and southwest where no drilling has yet been undertaken. The anomaly is impressive not only in lateral extent, but also for the thick intervals of elevated gold within drill holes. Such a widespread and thick accumulation of elevated gold provides great encouragement for the discovery of primary gold mineralisation deeper in fresh bedrock. The strongest portion of the anomaly occurs close to the interpreted contact zone between greenstones and granite which is also the setting for the bulk of Lodestar Minerals' nearby Ned's Creek gold discoveries (see LSR ASX Announcement on 03/08/2018).

Infilling and extending the anomaly will be the focus for future drilling in 2019 with the aim of delineating targets for deep drilling to find the primary source of the gold anomalism.

Figure 1: Project map showing the location of Sultan's aircore drill program (black dots indicate hole positions) and the position of the strong gold anomaly defined in the air core drilling. The anomaly is contoured by ppb Au multiplied by metres down hole for the greatest single continuous intercept over 10ppb Au in any hole.

Results - Base Metals

Widespread base metal anomalism was intersected across the licence, with thick down-hole intersections in Copper, Zinc, Cobalt, Nickel, Lead and Manganese all evident. Contours of the most significant accumulations of base metals define a broadly coincident, 1.5km long northeast – southwest trend across the licence that occurs coincident with a VTEM (Versatile Time Electro-Magnetic) conductive anomaly defined in a historic regional survey.

Significant results include:

Table 2: Base metal intersections of either significant thickness and/or base metal content (all intersections are down hole and not stated as true thickness)

Hole ID	From (m)	Width (m)	Cu ppm	Zn ppm	Co ppm	Ni ppm	Pb ppm
18STHA016	4	32	218	305	117	129	<100
18STHA019	32	22	315	486	107	148	748
18STHA020	4	24	<100	270	127	141	<100
18STHA021	40	8	116	136	278	214	<100
18STHA029	32	8	152	175	150	<100	<100

Hole ID	From (m)	Width (m)	Cu ppm	Zn ppm	Co ppm	Ni ppm	Pb ppm
18STHA040	8	20	222	136	<100	<100	<100
18STHA041	12	17	184	198	148	113	<100
18STHA049	28	20	249	110	<100	<100	<100
18STHA056	12	16	132	439	108	130	<100
18STHA059	8	68	210	134	<100	<100	261
18STHA062	8	28	148	288	231	352	<100
18STHA063	20	20	122	373	151	145	<100
18STHA064	4	20	216	395	221	358	<100
18STHA069	12	8	281	382	115	170	<100

Most of the elevated base metal results occur in fine-grained sediments interpreted to belong to the Yerrida Basin group that hosts sediment-hosted copper deposits at Thaduna/Green Dragon and Enigma Copper 7km to the southwest as well as the DeGrussa Cu-Au VMS deposit some 30 km southwest of the project. The alignment of base metal anomalism along a northeast-southwest orientation is significant and mirrors the controlling structures at Enigma (Sipa ASX announcement 31/03/2014) and is sub-parallel to the nearby Jenkin Fault structure. The coincident Cu, Zn, Pb, Ni, Co anomalism has been recognised at Enigma (Sipa ASX Announcement 31/10/2013) as associated with the deeper copper mineralisation and is considered an excellent pathfinder suite for sediment-hosted copper deposits such as those at Mount Isa, Nifty and in the Central African Copper Belt.

Surface mapping at Thaduna has also identified numerous outcrops of gossanous material and ferruginised quartz breccia which are often indicative of fluid movement along structures in areas of anomalous base metals (Figure 2).

Figure 2: Examples of ferruginous quartz breccia outcropping in areas of base metal anomalism in E52/3481

Figure 3: Location of higher-grade copper and lead anomalism as defined by holes where assay results exceed 300ppm Cu (green zones) or 200ppm Pb (black zones) over at least one interval.

Figure 4: Location of higher-grade copper and lead anomalism as defined by holes where assay results exceed 100ppm Co (blue zones) or 200ppm Ni (orange zones) over at least one interval.

Sultan Resources had previously recognised the potential for sediment-hosted copper mineralisation when acquiring the project, with the Independent Geologist's Report included in the Company's Prospectus (14/08/2018) noting:

"Sipa Resources Ltd (Sipa) discovered sedex-styled copper mineralisation at Enigma in 2011. The Enigma prospect carries a very large (at least 4km x 1.5kms) 'secondary copper blanket' developed in deeply weathered rocks. The blanket contains drill intersections of up to 34m grading 2.8% Cu, including 11m grading 7.6% Cu. There are also several chalcopyrite-bearing intersections, of up to 63m grading 1.1% Cu. Significant sulphide intersections include: 9 metres grading 4% Cu, from 101 metres, and 6 metres grading 1.5% copper, from 81 metres (Sipa, 2014). The mineralised host is the graphitic shales of the Johnson Cairns Formation of the Yerrida Basin.

The sedimentary basin hosting Thaduna is considered prospective for large to very large sediment-hosted copper deposits with affinities to the Mt Isa Copper-Nifty 'spectrum' of deposits. The key elements common to these deposits, and which are identified at Thaduna include (Sipa, 2014):

• copper-rich source rocks towards the bottom of, or adjacent to, the Basin, such as mafic volcanics, oxidised siliciclastics and/or metal-rich black shales
• inversion of the Basin to drive saline oxidised fluids capable of leaching and transporting metals
• structures, and fluid pathways
• reduced rocks, such as carbon-bearing dolomites and/or reduced shales, and trap sites, such as fold hinges, to allow precipitation from the metal-rich fluids

Shale horizons, possibly from the Johnson Cairns Formation, lie in the Thaduna tenements."

Quarterly reports by Sipa during the discovery phase of the Enigma deposit note that there is a strong nickel (>150ppm Ni) and cobalt (>100ppm Co) association with mineralisation (Sipa Quarterly Report, 31 /10/2013) and that mineralisation is hosted by northeast-trending thrusts with northwest-trending accommodation structures and affinities with the Mount Isa, Nifty and Central African Copperbelt deposts have been recognised (Sipa quarterly Report, March 2014).

The base-metal element association and interpreted north easterly structural trend identified by Sultan in this first pass exploration supports the potential for this style of mineralisation to exist on E52/3481.

Sandfire Resources recently acquired the Enigma and Thaduna projects from Sipa and are currently drilling at Enigma (Sandfire ASX announcement 25/10/2018).

For further information contact:

Managing Director Investor Relations Steve Groves Peter Taylor

info@sultanresources.com.au Peter@nwrcommunications.com.au 0412 036 231

Competent Persons Statement

The information in this report that relates to Exploration Targets and Exploration Results is based on information compiled by Mr Steven Groves, who is a Competent Person and a Member of the Australian Institute of Geoscientists. Mr Groves is Managing Director and a full-time employee of Sultan Resources Limited. Mr Groves has sufficient experience that is relevant to the style of mineralisation 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 the reporting of Exploration Results, Mineral

Resources and Ore Reserves". Mr Groves consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

About Sultan Resources

Sultan Resources is a West Australian focused exploration company with a portfolio of quality assets in emerging discovery terranes currently targeted by successful explorers such as Gold Road Resources, Sandfire Resources and Lodestar Minerals. Sultan's tenement portfolio includes prospective targets for gold, Nickel, Cobalt and base metals and include tenements at Thaduna, Lake Grace, East Tallering and Dawallinu, all located within the southern terrane region of the Yilgarn Craton in south and south eastern Western Australia. Sultan's board and management strategy is for a methodical approach to exploration across the prospects in order to discover gold and base metals that may be delineated via modern exploration techniques and exploited for the benefit of the company and its shareholders.

Appendix 1

Aircore Hole Details

Hole_ID	GPS_North	GPS_East	Max_Depth	GPS_RL
18STHA001	7191448	781690	58	598
18STHA002	7191449	781596	55	598
18STHA003	7191447	781494	44	597
18STHA004	7191450	781396	28	591
18STHA005	7191450	781297	23	591
18STHA006	7191447	781200	24	591
18STHA007	7191450	781099	28	592
18STHA008	7191446	780992	47	593
18STHA009	7191449	780902	20	595
18STHA010	7191449	780802	39	598
18STHA011	7191301	781706	79	593
18STHA012	7191305	781607	70	585
18STHA013	7191301	781503	78	588
18STHA014	7191302	781399	63	591
18STHA015	7191300	781301	24	593
18STHA016	7191302	781201	65	594
18STHA017	7191298	781104	14	597
18STHA018	7191300	780998	23	597
18STHA019	7191197	781300	55	595
18STHA020	7191099	781297	45	592
18STHA021	7191099	781210	51	600
18STHA022	7191007	781298	30	604
18STHA023	7190901	781298	24	598
18STHA024	7190902	781197	24	592
18STHA025	7190898	781096	37	597
18STHA026	7190899	781002	31	601
18STHA027	7190898	780903	23	601
18STHA028	7190902	780798	46	606
18STHA029	7190985	780696	46	607
18STHA030	7190893	780698	57	607
18STHA031	7190892	780595	57	599
18STHA032	7190894	780499	60	597

Hole_ID	GPS_North	GPS_East	Max_Depth	GPS_RL
18STHA033	7190894	780394	37	595
18STHA034	7190898	780298	8	612
18STHA035	7190900	780198	16	606
18STHA036	7191102	780302	39	614
18STHA037	7190704	780996	26	603
18STHA038	7190699	780807	25	591
18STHA039	7190696	780603	11	594
18STHA040	7190703	780398	39	605
18STHA041	7190698	780202	29	611
18STHA042	7190701	781207	60	587
18STHA043	7190498	781207	27	591
18STHA044	7190500	781004	47	585
18STHA045	7190500	780801	54	588
18STHA046	7190501	780602	30	586
18STHA047	7190497	780400	46	589
18STHA048	7190495	780199	34	600
18STHA049	7190300	780196	55	611
18STHA050	7190295	780393	47	605
18STHA051	7190298	780599	34	610
18STHA052	7190305	780796	25	617
18STHA053	7190502	781400	50	611
18STHA054	7191290	781053	9	602
18STHA055	7191300	781148	24	597
18STHA056	7191307	781252	52	590
18STHA057	7191313	781352	42	592
18STHA058	7191299	781451	74	584
18STHA059	7191313	781548	76	589
18STHA060	7191309	781645	57	596
18STHA061	7191452	781752	36	594
18STHA062	7191450	781650	39	594
18STHA063	7191451	781552	46	596
18STHA064	7191454	781453	36	607
18STHA065	7191448	781352	10	598
18STHA066	7191452	781253	24	600
18STHA067	7191197	781702	34	596
18STHA068	7191100	781703	56	602
18STHA069	7190997	781699	35	606
18STHA070	7190903	781697	23	600
18STHA071	7190801	781699	15	603

Appendix 2

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 specific specialisedindustry standard measurement toolsappropriate to the minerals under investigation,such as down hole gamma sondes, or handheldXRF instruments, etc). These examples should notbe taken as limiting the broad meaning ofsampling.	Samples are drill chips from aircore drilling –using a blade in unconsolidated material andin the weathering profile and a hammer (onoccasions) in hard rock
	Include reference to measures taken toensure sample representivity and theappropriate calibration of any measurementtools or systems used.	Standard aircore techniques have been usedwith no splitting of sample on the rig. Sampleshave been collected by hand from samplepiles provided from continuous collection fromthe rig representing 1m intervals. Standard dustminimisation procedures were used whilstdrilling.
		Piles were sampled in almost completion toensure representivity, from the top down,leaving a sample layer at bottom so as toensure no foreign material (eg. soil) wasintroduced into the sample.
		Blanks, duplicates and standards wereintroduced at the laboratory stage.
	Aspects of the determination ofmineralisation that are Material to the PublicReport.In cases where 'industry standard' workhas been done this would be relatively simple(eg 'reverse circulation drilling was used toobtain 1 m samples from which 3 kg waspulverised to produce a 30 g charge for fireassay'). In other cases more explanation may be	The 1m samples from aircore drilling (seeabove) were composited every 4 metres toproduce a sample greater than 3kg (mostly),except at bottom of hole where a single 1msample was taken to produce a samplebetween 1-3kg.All samples were crushed to 2mm where
	required, such as where there is coarse gold thathas inherent sampling problems. Unusualcommodities or mineralisation types (egsubmarine nodules) may warrant disclosure ofdetailed information.	needed and then pulverized to producepowder for analysis at the Bureau Veritaslaboratories in Perth using industry standardprocedures and splits.
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 other type,whether core is oriented and if so, by whatmethod, etc).	Vertical Aircore drilling to blade or hammerrefusal, ideally at the top of bedrock.
Drill samplerecovery	Method of recording and assessing coreand chip sample recoveries and results assessed.	Holes logged visually
	Measures taken to maximise samplerecovery and ensure representative nature ofthe samples.	See above - Standard aircore techniques havebeen used with no splitting of sample on therig. Samples have been collected by handfrom sample piles provided from continuouscollection from the rig representing 1mintervals. Standard dust minimisationprocedures were used whilst drilling.Piles were sampled in almost completion toensure representivity, from the top down,leaving a sample layer at bottom so as toensure no foreign material (eg. soil) was
		introduced into the sample.

		Blanks, duplicates and standards wereintroduced at the laboratory stage.
	Whether a relationship exists betweensample recovery and grade and whethersample bias may have occurred due topreferential loss/gain of fine/coarse material.	Too few samples and at too low grade tomeasure sample bias
Logging	Whether core and chip samples have beengeologically and geotechnically logged to alevel of detail to support appropriate MineralResource estimation, mining studies andmetallurgical studies.	Geological logging has been done in the fieldon aircore drill chips using a 20x magnificationhand lens.
	Whether logging is qualitative orquantitative in nature. Core (or costean,channel, etc) photography.	Logging is qualitative based on in-fieldobservations of drill chips
	The total length and percentage of therelevant intersections logged.	All holes have been geologically logged in fullbased on 1m representative samples fromaircore drilling
Subsampling	If core, whether cut or sawn and whetherquarter, half or all core taken.	No diamond drilling
techniquesandsample	If non-core, whether riffled, tube sampled,rotary split, etc and whether sampled wet or dry.	See above. As a result of blade refusal thecomposite sample prior to the last metresample ranged from 2m to 5m.
preparation	For all sample types, the nature, quality andappropriateness of the sample preparationtechnique.	See above - All drilling samples were submittedto Bureau Veritas laboratories in Perth wherethey were crushed to 2mm where necessary,split using lab based riffle splitters and thenpulverized before being analysed by Fire Assayfor Au, Pt and Pd (40g portion - with an ICP-OESfinish) and ICP-OES for Al, Ca, Co, Cr, Cu, Fe, K,Mg, Mn, Na, Ni, S, Ti and Zn and ICP-MS for Ag,As, Ba, Bi, Li, Mo, Pb, Se, Sn, Ta, W and Zr.
	Quality control procedures adopted for allsub-sampling stages to maximise representivity ofsamples.	See above - Standard laboratory internalchecks were applied to all assay streams. Noduplicates were taken from the sample piles atthe drill rig in the field so as to ensure as muchrepresentation of the entire sample pile aspossible for all samples.
	Measures taken to ensure that the samplingis representative of the in situ material collected,including for instance results for fieldduplicate/second-half sampling.	See above - No duplicates were taken fromthe sample piles so as to ensure as muchrepresentation of the entire sample pile aspossible for all samples.
	Whether sample sizes are appropriate tothe grain size of the material being sampled.	Sampling protocol was adequate for use in firstpass exploration. The drilling intersectedProterozoic sediments, Archean basement ofbasalt and greenstone, locally Quartz gneiss,Quartzite, Meta-sandstone and Iron stonerocks.
Quality ofassay dataandlaboratorytests	The nature, quality and appropriateness ofthe assaying and laboratory procedures usedand whether the technique is considered partialor total.	As above – The assay techniques employedare considered of a quality andappropriateness for the way in which theresults have been reported in this document.The techniques employed approaches a totaldigest for many elements, however, somerefractory minerals are not completely
	For geophysical tools, spectrometers,handheld XRF instruments, etc., the parametersused in determining the analysis includinginstrument make and model, reading times,calibrations factors applied and their derivation,etc.	attacked.No in-field instruments have been used – alllaboratory based assays.

	Nature of quality control proceduresadopted (e.g. standards, blanks, duplicates,external laboratory checks) and whetheracceptable levels of accuracy (i.e. lack of bias)and precision have been established.	See above - Acceptable levels of accuracyand precision have been established byBureau Veritas laboratories in Perth.
Verificationof samplingand	The verification of significant intersectionsby either independent or alternative companypersonnel.	No verification of assay by other companieshas taken place.
assaying	The use of twinned holes.	There has been no twining of holes for the drillprogram associated with the data in this ASXrelease.
	Documentation of primary data, data entryprocedures, data verification, data storage(physical and electronic) protocols.	All primary logging was achieved in the field inhard copy and transferred to excelspreadsheets on a daily basis and stored ontwo computers. At the completion of theprogram these electronic files were transferredto alternate and used for mapping andmodelling purposes.
		All geochemical data has been receivedelectronically from the lab in excelspreadsheets and stored in a number oflocations, including external hard-drives andcentral computers both with the company anda contractor.
	Discuss any adjustment to assay data.	No adjustments have been made by theauthor to any of the historical data reviewed
Location ofdata points	Accuracy and quality of surveys used tolocate drill holes (collar and down-hole surveys),trenches, mine workings and other locationsused in Mineral Resource estimation.	Collar placement and pickups were via handheld GPS using MGA94, Zone 50.
	Specification of the grid system used.	MGA94, Zone 50
	Quality and adequacy of topographiccontrol.	Elevation were in AHD (MGA94, Zone 50)
Dataspacing	Data spacing for reporting of ExplorationResults.	Data spacing is suitable in first pass exploration
anddistribution	Whether the data spacing and distributionis sufficient to establish the degree of geologicaland grade continuity appropriate for the MineralResource and Ore Reserve estimationprocedure(s) and classifications applied.	The drilling data at its established density andnature is not sufficient for use in a mineralresource estimation. The approaches used areonly suitable for the exploration stage.
	Whether sample compositing has beenapplied.	Samples were composited over a 4m intervalfor analysis. Where the end of hole wasreached before a full 4m composite could betaken a composite of shorter length was takenand the results weighted average calculated.
Orientationof data inrelation togeologicalstructure	Whether the orientation of samplingachieves unbiased sampling of possiblestructures and the extent to which this is known,considering the deposit type.	Not applicable
	If the relationship between the drillingorientation and the orientation of keymineralised structures is considered to haveintroduced a sampling bias, this should beassessed and reported if material.	The holes were all vertical and are deemedsufficient for at this stage of exploration.
Samplesecurity	The measures taken to ensure samplesecurity.	The majority of samples were delivered inperson by representatives of the company tothe nearest road transport dock andimmediately transported to the laboratory inPerth using non-descript sample codes. Somesamples were hand delivered byrepresentatives of the company to the labdirectly

Audits or	The results of any audits or reviews of	At this stage the project has not been subject
reviews	sampling techniques and data.	to any internal audits or reviews of samplingtechniques and data.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	Commentary
Mineral tenement andland tenure status	·Type, reference name/number,location and ownership includingagreements or material issues withthird parties such as joint ventures,partnerships, overriding royalties,native title interests, historical sites,wilderness or national park andenvironmental settings.	The Thaduna Project is located approximately180km northeast of Meekatharra in the PeakHill District of Western Australia in the emergingThaduna exploration province. It includesExploration licenses, 52/3461 and 52/3481. Theproject is sandwiched between SandfireResources' Thaduna and Green DragonCopper-Gold deposit, and adjacent to therecently discovered "Brumby" and "Contessa"gold prospects. The Project lies over thewestern and eastern bounding structures tothe Yerrida Basin and Mooloogool Sub-basin.The tenement Sultan Resources. Thetenements are unencumbered by royalties,free carried interests or claw back provisions(other than the royalty to be granted toGalahad Resources Pty Ltd under the TermSheet, being a 2% gross value royalty to theVendor on the products mined and sold fromthe Projects, on and from the date ofcommencement of production on theProjects, for the economic production life ofthe tenement).The Thaduna tenements are subject to NativeTitle Claim by the Yugunga-Nya People(WC99/046).
	·The security of the tenure heldat the time of reporting along withany known impediments to obtaininga licence to operate in the area.	Titles are granted. No issues or impediments toprevent work proceeding.
Exploration done byother parties	·Acknowledgment andappraisal of exploration by otherparties.	The tenement area has been held undervarious tenure shapes over recent decades.Audax and Reidel conducted geologicalmapping over the eastern tenement to rockchip and soil sampling programs.Subsequently MLTEM and RAN/aircore drillingtested the resulting geophysical/geochemicaltargets.
Geology	·Deposit type, geological settingand style of mineralisation.	Extensions to a deep rift structure thatdeveloped and deposited sediments over anearlier sag basin and Archaean bedrock. Therift (Bryah) and sag (Yerrida) basin are relatedto the Capricorn or earlier orogenic eventsthat culminated in welding together thePilbara and Yilgarn Cratons. Multiple depositstyles have potential at Thaduna, including:Sedimentary-hosted copper deposits inProterozoic Yerrida Basin stratigraphy whichonlaps the Marymia Dome, and; structurallycontrolled gold, copper and nickel deposits inthe Baumgarten Greenstone Belt of theArchaean Marymia Inlier.
Drill hole Information	·A summary of all informationmaterial to the understanding of theexploration results including atabulation of the following informationfor all Material drill holes:	A table of collar coordinates and tables ofsignificant intersections are included in thetext and appendices of this report.Plan figures showing the major anomalouszones defined by the drilling are also included

	Easting and northing of the drillhole collar	Drilling is reported in MGA94, Zone 50.
	o elevation or RL (ReducedLevel – elevation above sea level inmetres) of the drill hole collar	AHD in MGA94, Zone 50
	o dip and azimuth of the hole	Holes were all drilled vertically.
	o down hole length andinterception depth	All holes logged in 1 m increments down thelength of the hole
	o hole length.	Hole length is the distance from the surface tothe end of the hole, as measured along thedrill trace.
	·If the exclusion of thisinformation is justified on the basis thatthe information is not Material and thisexclusion does not detract from theunderstanding of the report, theCompetent Person should clearlyexplain why this is the case.	Given the early stage of exploration, theresults as reported are consideredappropriate.
Data aggregationmethods	·In reporting Exploration Results,weighting averaging techniques,maximum and/or minimum gradetruncations (eg cutting of highgrades) and cut-off grades are usuallyMaterial and should be stated.	Anomalous values were reported where aminimum 4m composite exceeded 10ppbGold lower cut off.For base metals, anomalous values werereported where either the width of tanintercepts combined with one or more basemetal elements was considered significantlyanomalous against the overall populationfrom the drilling
	·Where aggregate interceptsincorporate short lengths of highgrade results and longer lengths oflow grade results, the procedure usedfor such aggregation should be statedand some typical examples of suchaggregations should be shown indetail.	Where aggregated the results whereaveraged over the number of samples thatcontained the pertinent intersection. Noupper cut applied,
	·The assumptions used for anyreporting of metal equivalent valuesshould be clearly stated.	No metal equivalents calculations used. Noadjustments to the data were made.
Relationship betweenmineralisation widthsand intercept lengths	·These relationships areparticularly important in the reportingof Exploration Results.	The limited mineralisation detected in thedrilling, produced insufficient information tounderstand the geology and mineralisationtrends.
	·If the geometry of themineralisation with respect to the drillhole angle is known, its nature shouldbe reported.	The limited mineralisation detected in thedrilling, produced insufficient information tounderstand the geology and mineralisationtrends.
	·If it is not known and only thedown hole lengths are reported, thereshould be a clear statement to thiseffect (e.g. 'down hole length, truewidth not known').	Any intersections included in theaccompanying report are down hole lengths.The true widths of these intersections are notknown.
Diagrams	·Appropriate maps and sections(with scales) and tabulations ofintercepts should be included for anysignificant discovery being reportedThese should include, but not belimited to a plan view of drill holecollar locations and appropriatesectional views.	Appropriate maps included within the body ofthe report.

Balanced reporting	·Where comprehensivereporting of all Exploration Results isnot practicable, representativereporting of both low and high gradesand/or widths should be practiced toavoid misleading reporting ofExploration Results.	The accompanying document is consideredto represent a balanced report.The author has referenced numerous ASXreleases by neighbouring explorationcompanies where balanced reporting isconsidered to have been undertaken.
Other substantiveexploration data	·Other exploration data, ifmeaningful and material, should bereported including (but not limited to):geological observations; geophysicalsurvey results; geochemical surveyresults; bulk samples – size andmethod of treatment; metallurgicaltest results; bulk density, groundwater,geotechnical and rockcharacteristics; potential deleteriousor contaminating substances.	The author has referenced numerous ASXreleases by neighbouring explorationcompanies where balanced reporting isconsidered to have been undertaken.Otherwise the balance of the information isnot considered material.
Further work	·The nature and scale ofplanned further work (e.g. tests forlateral extensions or depth extensionsor large-scale step-out drilling).	The exploration results have enhanced theprospectivity of E52/3461 and identified bothgold and base metal targets. Further work willinclude ground geophysics, further aircoredrilling and ultimately deeper drilling into freshbedrock to test for the presence of primarymineralisation
	·Diagrams clearly highlightingthe areas of possible extensions,including the main geologicalinterpretations and future drillingareas, provided this information is notcommercially sensitive.	Diagrams covering the target areas and maingeological interpretation are contained withinthe report.