SUNSTONE METALS LTD — Capital/Financing Update 2020

Aug 11, 2020

12 AUGUST 2020

Sunstone agrees to acquire highly promising copper-gold porphyry project in Ecuador

Three historical drill holes returned significant copper and gold; Plus, drilling to start at Bramaderos gold-silver target within four weeks

Key Points

• Sunstone continues to grow its land holding in Ecuador with the addition of the El Palmar porphyry copper-gold project in northern Ecuador
• El Palmar islocated on the same regional structure as the 2.7Bt Cascabel Project, and 14km west of the 1Bt Llurimagua copper deposit and is a low entry cost, drill ready opportunity
• Sunstone's strategy of adding highly prospective land holdings within Ecuador is expected to continue as we believe that the region offers significant growth opportunities
• Drilling at the Bramaderos project in Ecuador to resume early next month, commencing with diamond drilling at the Espiritu gold-silver target, then moving to Brama and Porotillo porphyry gold-copper targets, and onto El Palmar in due course
• The first drill hole at Espiritu will test the depth extent of the gold-silver polymetallic system which assayed, in trench samples:
  • o 21m at 82.4g/t silver, 0.3g/t gold, 1.4% zinc and 1.2% lead, including;
    • 4m at 415g/t silver, 0.9g/t gold, 6.9% zinc and 6% lead

And in surface rock chip samples:

• o 4.2g/t gold and 101g/t silver, 11.9g/t gold and 175g/t silver, and 11.6g/t gold and 2,962g/t silver
• Sunstone's investment in Stockholm-listed Copperstone Resources AB is valued at ~A$22.5M; this shareholding comes out of escrow on September 9, 2020

Sunstone Metals Ltd (ASX: STM) is pleased to announce that it has agreed to acquire the highly prospective El Palmar copper-gold porphyry project in Ecuador as part its strategy to expand its land holdings in Ecuador on projects which pass our technical and commercial hurdles and offer the potential for significant resource discoveries. El Palmar will be explored in parallel with the highly prospective Bramaderos gold-copper porphyry and gold-silver epithermal project, where drilling will resume within 4 weeks.

Three diamond drill holes at El Palmar in 2012 delivered significant intersections of copper and gold in a porphyry environment (see table below). The previous explorer withdrew soon after completion of drilling due to a decision in 2012 to cease exploration in Ecuador.

The 800ha El Palmar property will be acquired through a Staged Acquisition Agreement, which will ultimately deliver 100 per cent ownership to Sunstone. A Binding Term Sheet has been signed and it is expected that a full Agreement will be entered into later this quarter. Agreement terms are detailed below.

The property is located 60km north-west of Ecuador's capital Quito and is well serviced by local roads. Travel time to site from Quito is approximately 2.5 hours. The property sits on the regionally-significant Toachi Fault Zone, which is considered important for localising other porphyry copper deposits such as Alpala (Cascabel) and Llurimagua (Figure 3).

Sunstone plans to undertake a two- to three-month surface exploration program before prioritising drill targets, subject to completion and signing of the formal Staged Acquisition Agreement. A valid drill permit is currently in place for the El Palmar project and drilling is planned to commence in late 2020.

Table 1: Historical trenching results from El Palmar
Trench No.	Interval (m)	Gold (g/t)	Copper (%)
1	174	0.41	0.11
including	42	0.72	0.05
2	126	0.39	0.05
including	57	0.61	0.13

Drill Hole No.	From	To (m)	Interval (m)	Gold	Copper (%)
	(m)			(g/t)
EPD-01	33.0	500.2	467.2	0.18	0.10
including	33.0	219.0	186.0	0.33	0.16
EPD-02	51.0	124.4	73.5	0.22	0.12
including	51.0	85.5	34.5	0.31	0.16
EPD-03	400.5	500.2	99.7	0.09	0.05

Table 2: Historical drilling intersections from El Palmar

Sunstone Managing Director Malcolm Norris said: "El Palmar is a highly promising copper-gold porphyry target, as shown by the mineralisation intersected in the three holes already drilled there. Historical broad exploration results are showing a 600m diameter area of anomalous copper and gold that has not been adequately tested with drilling.

"El Palmar adds to our portfolio in Ecuador in a geological district that we are very familiar with. This is a low entry cost, drill ready opportunity. We have been looking at a number of additional opportunities to complement our very prospective Bramaderos project, and to be able to secure a position in the broader district than includes the 2.7Bt Cascabel and 1Bt Llurimagua deposits delivers on our strategy of making discoveries through building a high quality portfolio of porphyry and epithermal projects.

"We are also excited to resume drilling at the Espiritu gold-silver target and further testing the Brama and Porotillo porphyry targets at Bramaderos.

"We will have financial flexibility to advance these projects through strategic monetising of a portion of our holding in Stockholm listed Copperstone Resources AB once the escrow period ends on September 9th."

Bramaderos:

Drilling is planned to resume in early September at the highly promising Espiritu gold-silver target area (Figures 1 and 2). An initial 4-hole program, with optional follow-up holes, has been planned.

This phase 1 drilling program will be completed during September with assay results expected in October.

Several other similar targets (such as E1) have been identified and will be brought to the drilling stage as soon as possible.

Drilling at the Brama and Porotillo porphyry gold-copper targets is expected to follow drilling at Espiritu.

El Palmar Staged Acquisition Agreement terms:

Sunstone to acquire a 100% interest in the company that holds the El Palmar concession through:

• An initial cash payment of US$50,000 upon signing of the Staged Acquisition Agreement;
• Funding and managing all exploration activities on the project;
• Payments totalling US$250,000 in stages linked to advancement through to the commencement of a phase 2 drilling program in the first two years;
• Payments totalling US$600,000 over the 2 years from July 1st, 2022;
• Final cash payment of US$2,000,000 on July 1st, 2024;
• o The current shareholders of the company that holds El Palmar will receive a 1% net smelter royalty. Sunstone will have the right to buy back 75 per cent of the royalty (taking it to 0.25%) for US$1 million

Investment in Copperstone Resources AB:

In Sweden, Copperstone Resources AB continues to advance work on the Viscaria Copper Project. Copperstone's share price has increased significantly recently and Sunstone's current ~25 per cent stake is valued at ~A$22.5 million. Sunstone's shares are under escrow to 9th September 2020, after which Sunstone has greater flexibility in monetising this investment, if required. Sunstone has further exposure to success at Viscaria, with Copperstone to make a Stage 2 payment to Sunstone of 20 MSEK (~A$3.2 million) and issue Sunstone an additional 46 million COPP B shares (valued at ~A$6.5 million) upon issuance of an Environmental Permit for the development of Viscaria.

Figure 1: Bramaderos concession showing grid soil sampling areas in yellow dots to be followed up during 2020. The exploration team are currently working at Espiritu and E1.

Figure 2: Espiritu target area showing current and planned trench locations, gold in rock chip samples and drill hole options. The background image is gold-in-soil sample results.

Figure 3: Location of the El Palmar Project relative to the Llurimagua and Cascabel deposits, on the regional geological background.

Figure 4: Same scale generalised surface rock chip contours (copper) from El Palmar (top) vs equivalent surface rock chip contours from the Cascabel Alpala deposit (bottom) in its early stages of exploration. The greyyellow-pink background contours at Cascabel show areas of low grade (copper equivalent grade > 0.15%), medium grade (copper equivalent grade >0.7%, and high grade mineralisation (copper equivalent grade > 1.5%) at a depth of 1,000m below surface defined from extensive drilling (and in the widest portion of the orebody as defined to date). Data source for Cascabel is 'SolGold NI 43-101 PEA Report dated November 6th , 2019' and SolGold AIM announcement dated 8 July 2013, Figure 1.

About Sunstone Metals

Sunstone has an advanced portfolio of exploration and development projects in Scandinavia and Ecuador. The portfolio comprises:

• 1. The Bramaderos Gold-Copper Project where Sunstone owns an 87.5% interest with TSXV listed Cornerstone Capital Resources holding 12.5% (see ASX announcement dated 10th April 2017, 28th August 2019, and 7 January 2020). The Bramaderos gold-copper project is located in Loja province, southern Ecuador, and is considered to be highly prospective for the discovery of large porphyry gold-coppersystems, and high-grade epithermal gold systems. Historical exploration results from drilling at Bramaderos together with recent exploration by Sunstone and joint venture partner Cornerstone Capital Resources (TSXV:CGP) indicate multiple fertile mineralised systems with significant discovery potential.
• 1. Sunstone has a significant equity interest of ~25% in Stockholm listed Copperstone Resources (COPP-B.ST) following the sale of the Viscaria Copper project to Copperstone in 2019. Sunstone has further exposure to success at Viscaria, with Copperstone to make a Stage 2 payment to Sunstone of 20 MSEK (~A$3.2 million) and issue Sunstone an additional 46 million COPP B shares (valued at ~A$6.5 million) upon issuance of an Environmental Permit for the development of Viscaria.
• 1. The Southern Finland Gold Project includes the Satulinmäki gold prospect. Shallow diamond drilling was completed by the Geological Survey of Finland (GTK) during the period 2000-2005 and this was followed by a 7-hole diamond drilling program by Sunstone Metals in 2016. Intersections from GTK include 18m @ 4.1g/t Au from 50m downhole, including 3m @ 9.3g/t Au, and 4m @ 10.3g/t Au in drill hole R391. Intersections by Sunstone include 23.5m at 3.3g/t in SMDD007 and 2m at 10.5g/t in SMDD005. The Satulinmäki gold prospect is part of an earn-in JV with Canadian company Nortec Minerals, where Sunstone holds an ~82% interest, is funding on-going work, and has also acquired a significant land position, in its own right, in the district.
• 1. The Scandinavian Lithium Project includes the Kietyönmäki lithium prospect. Drilling by Sunstone has delivered 24.2m at 1.4% Li2O in a spodumene-bearing pegmatite. Kietyönmäki is also part of the JV with Nortec Minerals.

Competent Persons Statement

The information in this report that relates to exploration results is based upon information reviewed by Dr Bruce Rohrlach who is a Member of the Australasian Institute of Mining and Metallurgy. Dr Rohrlach is a full-time employee of Sunstone Metals Ltd and 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". Dr Rohrlach consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

Mr Malcolm Norris, Managing Director of Sunstone Metals Ltd., has authorised this announcement to be lodged with the ASX.

For further information, please visit www.sunstonemetals.com.au Mr Malcolm Norris Managing Director Sunstone Metals Ltd Tel: 07 3368 9888 Email: mnorris@sunstonemetals.com.au

APPENDIX 1

The following Table and Sections are provided to ensure compliance with the JORC Code (2012 Edition)

TABLE 1 – Section 1: Sampling Techniques and Data

Criteria	JORC Code explanation	Commentary
Samplingtechniques	•Nature and quality of sampling (e.g. cut channels,random chips, or specific specialised industry standardmeasurement tools appropriate to the minerals underinvestigation, such as downhole gamma sondes, orhandheld XRF instruments, etc.). These examples shouldnot be taken as limiting the broad meaning of sampling.	• The results announced here are from historical rockchip samples and hand cut trench samples.
	•Include reference to measures taken to ensure samplerepresentivity and the appropriate calibration of anymeasurement tools or systems used.	• Samples were taken randomly with focus on thoseexhibiting alteration and mineralisation, and samplesfrom within a hand dug trench and hand cut channelsamples.
	•Aspects of the determination of mineralisation that areMaterial to the Public Report. In cases where 'industrystandard' work has been done this would be relativelysimple (e.g. 'reverse circulation drilling was used toobtain 1 m samples from which 3 kg was pulverised toproduce a 30 g charge for fire assay'). In other cases,more explanation may be required, such as where thereis coarse gold that has inherent sampling problems.Unusual commodities or mineralisation types (e.g.submarine nodules) may warrant disclosure of detailedinformation.	• Rock chip and channel sampling points have beenguided by geological mapping. The samples fromEspiritu were dried, crushed to 70% passing 2mm, Split1000g and pulverised to 85% passing 75microns. A 20gportion of this sample was used for multi-elementanalysis (IMS-230) and a 30g sample for Fire Assay Au(FAS-111).
Drillingtechniques	•Drill type (egcore, reverse circulation, open-holehammer, rotary air blast, auger, Bangka, sonic, etc) anddetails (e.g. core diameter, triple or standard tube, depthof diamond tails, face-sampling bit or other type,whether core is oriented and if so, by what method, etc).	• The Espiritu target area has not been drilled bySunstoneorduringanyphasesofhistoricalexploration.• The El Palmar property has had 3 diamond drill holescompleted from a previous explorer.
Drill samplerecovery	•Method of recording and assessing core and chip samplerecoveries and results assessed.	• The Espiritu target area has not been drilled bySunstoneorduringanyphasesofhistoricalexploration.
	•Measures taken to maximise sample recovery and ensurerepresentative nature of the samples.	• Samples from rock chips are representative of a localarea only. Trench samples have been taken across thegeological structural trend where known.
	•Whether a relationship exists between sample recoveryand grade and whether sample bias may have occurreddue to preferential loss/gain of fine/coarse material.	• No relationship between sample recovery and gradehas been established.
Logging	•Whether core and chip samples have been geologicallyand geotechnically logged to a level of detail to supportappropriateMineralResourceestimation,miningstudies and metallurgical studies.	•Trench samples and rock chips were logged forlithology,weathering,structure,mineralogy,mineralisation, colour, and other features. Logging andsampling were carried out according to Sunstone'sinternal protocols and QAQC procedures whichcomply with industry standards.
	•Whether logging is qualitative or quantitative in nature.Core (or costean, channel, etc.) photography.	•Trench and rock chip samples are logged for lithology,weathering, structure, mineralogy, mineralisation,colour, and other features.
	•The total length and percentage of the relevantintersections logged.	•The trenches are logged in full, from start to finish ofthe excavation.
Sub-samplingtechniques and	•If core, whether cut or sawn and whether quarter, half orall core taken.	• Standard rock chip samples and channel samples.
samplepreparation	•If non-core, whether riffled, tube sampled, rotary split,etc. and whether sampled wet or dry.	•Standard rock chip samples and channel samples.
	•Forallsampletypes,thenature,qualityandappropriateness of the sample preparation technique.	• Samplesfrom Espirituwere sent to the LAC yAsociados Cia. Ltda. Sample Preparation Facility inCuenca, Ecuador for sample preparation. The standardsample preparation for drill core samples (Code PRP-

ASX ANNOUNCEMENT -

Criteria	JORC Code explanation	Commentary
		910) is: Drying the sample, crushing to size fraction$70%$ <2mm and splitting the sample to a 250g portionby riffle or Boyd rotary splitter. The 250g sample isthen pulverised to $>85%$ passing 75 microns and thensplit into two 50g pulp samples. Then one of the pulpsamples was sent to the MS Analytical Laboratory inVancouver (Unit 1, 20120 102nd Avenue, Langley, BCV1M 4B4, Canada) for gold and base metal analysis.• The sample preparation is carried out according toindustry standard practices using highly appropriatesample preparation techniques.• Samples from El Palmar were compiled from 3historical phases of exploration by 1) Lowell MineralExploration Sucursal Ecuador (2007-2008), 2)Codelco (2011-2012) and 3) GOEX SA (2012-2020).• Surface rock chips and drill core from the El Palmarproperty were analysed at either ALS Chemex orACME Labs.
	Quality control procedures adopted for all sub-samplingstages to maximise representivity of samples.	· Sunstone used an industry standard QAQCprogramme involving Certified Reference Materials"standards" and blank samples, which were introducedin the assay batches.• Standards (Certified Reference Materials) or analyticalblanks were submitted at a rate of 1 in 28 samples.Field duplicates were also taken at a rate ofapproximately 1 in 28 samples.• The check or duplicate assay results are reported alongwith the sample assay values in the final analysisreport.
	• Measures taken to ensure that the sampling isrepresentative of the in-situ material collected, includingfor instance results for field duplicate/second-halfsampling.	• For channel sampling within trenches, the routinesample procedure is to take consecutive samples overapproximately 1m lengths
	Whether sample sizes are appropriate to the grain size ofthe material being sampled.	Sample sizes are considered to be appropriate for thestyle of sampling undertaken and the grainsize of thematerial, and correctly represent the style and type ofmineralisation at the exploration stage.
Quality ofassay data andlaboratorytests	• The nature, quality and appropriateness of the assayingand laboratory procedures used and whether thetechnique is considered partial or total.	Sunstone uses a fire assay gold technique for Auassays (FAS-111) and a four acid multi elementtechnique (IMS-230) for a suite of 48 elements. FAS-111 involves Au by Fire Assay on a 30-gram aliquot,fusion and atomic absorption spectroscopy (AAS) attrace levels. IMS-20 is considered a near total 4 acidtechnique using a 20g aliquot followed by multi-element analysis by ICP-AES/MS at ultra-tracelevels.This analysis technique is considered suitable for thisstyle of mineralisation.At El Palmar most historical samples have gold٠assays by fire-assay, and most have ICP analysis foreither 36 elements or 41 elements.
	• For geophysical tools, spectrometers, handheld XRFinstruments, etc., the parameters used in determining theanalysis including instrument make and model, readingtimes, calibrations factors applied and their derivation,etc.	Handheld XRF data are used as a guide to areas ofpotential mineralisation and samples from these areasare sent for laboratory analysis as described above.
	· Nature of quality control procedures adopted (e.g.standards, blanks, duplicates, external laboratorychecks) and whether acceptable levels of accuracy (i.e.lack of bias) and precision have been established.	Standards, blanks and duplicates are inserted $\sim$ 1/28samples. The values of the standards range from lowto high grade and are considered appropriate tomonitor performance of values near cut-off and nearthe mean grade of the deposit.

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Criteria	JORC Code explanation	Commentarv
		The check sampling results are monitored, andperformance issues are communicated to thelaboratory if necessary.
Verification ofsampling andassaying	The verification of significant intersections by either$\bullet$independent or alternative company personnel.	· Procedure checks have been completed by theCompetent Person for exploration results for thisannouncement.
	The use of twinned holes.$\bullet$	• No drilling has been undertaken in this area.
	Documentation of primary data, data entry procedures,$\bullet$data verification, data storage (physical and electronic)protocols.	Sunstone sampling data were imported and validated$\bullet$using Excel.
	Discuss any adjustment to assay data.	Assay data were not adjusted.
Location ofdata points	Accuracy and quality of surveys used to locate drill holes$\bullet$(collar and down-hole surveys), trenches, mine workingsand other locations used in Mineral Resource estimation.	Sample co-ordinates are located by GPS and for trench$\bullet$samples measured along the length of the trench.
	Specification of the grid system used.$\bullet$	Southern Ecuador projection parameters:$\bullet$
		ParameterValue
		Reference EllipsoidInternational 1924
		Semi Major Axis
		Inverse Flattening (1/f)
		UTM Zone -17S (DatumType of ProjectionPSAD56)
		Central Meridian:$-81.0000$
		0.0000Latitude of Origin
		Scale on Central Meridian0.9996
		False Northing10000000
		500000False Easting
	Quality and adequacy of topographic control.$\bullet$	• The topographic control was compared againstpublished maps and satellite imagery and found to begood quality.
Data spacinganddistribution	• Data spacing for reporting of Exploration Results.	• The rock chip samples were collected from an area of800m x 800m, and the channel samples within trenchES-01 collected every $\sim$ 1-2m.
	Whether the data spacing, and distribution is sufficientto establish the degree of geological and gradecontinuity appropriate for the Mineral Resource and OreReserve estimation procedure(s) and classificationsapplied.	• The data from these samples does not contribute to anyresource estimate nor implies any grade continuity.
	Whether sample compositing has been applied.$\bullet$	• No sample compositing was done.
Orientation ofdata in relationto geological	Whether the orientation of sampling achieves unbiased$\bullet$sampling of possible structures and the extent to whichthis is known, considering the deposit type.	Trench orientations and rock chip locations were$\bullet$appropriate for the interpreted geology providingrepresentative samples.
structure	If the relationship between the drilling orientation and$\bullet$the orientation of key mineralised structures isconsidered to have introduced a sampling bias, thisshould be assessed and reported if material.	No sampling bias is expected at this stage. There has$\bullet$been no historical drilling on this target.
Samplesecurity	The measures taken to ensure sample security.$\bullet$	Sunstone sampling procedures indicate individual$\bullet$samples were given due attention.Sample security was managed through sealedindividual samples and sealed bags of multiplesamples for secure delivery to the laboratory bypermanent staff of the joint venture.MS Analytical is an internationally accredited٠laboratory that has all its internal procedures heavily

Criteria	JORC Code explanation	Commentary
		scrutinised in order to maintain their accreditation.MS Analytical is accredited to ISO/IEC 17025 2005Accredited Methods.
Audits orreviews	•The results of any audits or reviews of samplingtechniques and data.	•Sunstone's and Cornerstone's sampling techniquesand data have been audited multiple times byindependent mining consultants during variousproject assessments. These audits have concludedthat the sampling techniques and data managementare to industry standards.•All historical data has been validated to the bestdegree possible and migrated into a database.

TABLE 1 – Section 2: Exploration Results

Criteria	JORC Code explanation	Commentary
Mineraltenement andland tenurestatus	•Type, reference name/number, location and ownershipincluding agreements or material issues with thirdparties such as joint ventures, partnerships, overridingroyalties, nativetitleinterests,historicalsites,wilderness or national park and environmentalsettings.	•The Bramaderos Exploration Concession is located inthe Loja Province of southern Ecuador. The concessionwas granted to La Plata Minerales S.A. ("PLAMIN") inJanuary 2017. PLAMIN is a subsidiary of SunstoneMetals Ltd. The concession is subject to a Joint Venturebetween Cornerstone Capital Resources Inc. andSunstone Metals Ltd. There are no wilderness areas ornational parks or areas of environmental significancewithin or adjoining the concession area. There are nonative title interests.•The El Palmar property is located in Imbabura provinceand is held by an Ecuadorian registered company 'Goex'.Due diligence to date show that there are no wildernessareas or national parks or areas of environmentalsignificance within or adjoining the concession area.There are no native title interests.
	•The security of the tenure held at the time of reportingalong with any known impediments to obtaining alicence to operate in the area.	•The Bramaderos Exploration Concession was granted toLa Plata Minerales S.A. ("PLAMIN") in January 2017.PLAMIN is now a subsidiary of Sunstone Metals Ltd.The Bramaderos Concession is subject to a Joint Venturebetween Sunstone Metals and Cornerstone. Sunstone hasan 87.5% interest in the JV.•The El Palmar exploration concession was granted in2003 and held 100% by Goex.
Explorationdone by otherparties	•Acknowledgment and appraisal of exploration by otherparties.	•The historic exploration at Bramaderos was completedby various groups over the period 1970-1984, 2001-2002and 2004-2007. Most of the readily available historicdata has been acquired and compiled into databases anda GIS project. Exploration by other parties has includedstream sediment surveys, geological mapping, rock chipsampling (888 samples) and grid-based soil sampling(1324 samples), trenching and channel sampling (17trenches), ground magnetic surveys (31 line kilometres),electrical IP surveys and diamond drilling (10426m).•No significant historical exploration has been undertakenin the Espiritu target area.•The El Palmar property has been historically explored byLowell Exploration, Codelco and Goex.
Geology	•Deposittype,geologicalsettingandstyleofmineralisation.	•The deposit style being explored for includes intrusionrelated and stockwork hosted porphyry Au-Cu systemsplus low sulphidation epithermal gold-silver veins. Thesetting at Espiritu is a volcanic arc setting of Cretaceousage intrusions.

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Criteria	JORC Code explanation	Commentary
		At El Palmar the geology is interpreted to be a Eocene$\bullet$to Miocene aged volcanic arc with Miocene agedintrusions
Drill holeInformation	• A summary of all information material to theunderstanding of the exploration results including atabulation of the following information for all Materialdrill holes:a. easting and northing of the drill hole collarb. elevation or RL (Reduced Level - elevation abovesea level in metres) of the drill hole collarc. dip and azimuth of the holed. down hole length and interception depthe. hole length.	Details of the samples discussed in this announcementare in the body of the text.See Figures 1&2 for the location of soil sampling and$\bullet$trenching activities at Espiritu.See Figures 3&4 for the location of historical sampling$\bullet$and drill holes at El Palmar.
	• If the exclusion of this information is justified on thebasis that the information is not Material and thisexclusion does not detract from the understanding ofthe report, the Competent Person should clearlyexplain why this is the case.	Information included in announcement.$\bullet$
Dataaggregationmethods	• In reporting Exploration Results, weighting averagingtechniques, maximum and/or minimum gradetruncations (e.g. cutting of high grades) and cut-offgrades are usually Material and should be stated.	Weighted averages were calculated over reportedintervals according to sample length.• No grade cut-offs were applied.
	Where aggregate intercepts incorporate short lengths$\bullet$of high-grade results and longer lengths of low-graderesults, the procedure used for such aggregationshould be stated and some typical examples of suchaggregations should be shown in detail.	• No aggregating of intervals undertaken at this stage.
	• The assumptions used for any reporting of metalequivalent values should be clearly stated.	Metal equivalents are not presented.$\bullet$
Relationshipbetweenmineralisation	• If the geometry of the mineralisation with respect to thedrill-hole angle is known, its nature should bereported.	Figure 2 shows the interpreted strike orientation of themineralised lodes based on mapping and interpretationof detailed magnetic data.
widths andinterceptlengths	• If it is not known and only the down hole lengths arereported, there should be a clear statement to thiseffect (e.g. 'down hole length, true width not known').	True widths of mineralised lodes are not known at thisstage because no drilling has been undertaken on thistarget area.
Diagrams	Appropriate maps and sections (with scales) and$\bullet$tabulations of intercepts should be included for anysignificant discovery being reported. These shouldinclude, but not be limited to a plan view of drill holecollar locations and appropriate sectional views.	See Figures 1-4 for maps showing distribution ofsamples.
Balancedreporting	Where comprehensive reporting of all Exploration$\bullet$Results is not practicable, representative reporting ofboth low and high grades and/or widths should bepracticed to avoid misleading reporting of ExplorationResults.	Figures 1-4 above show the current interpretations ofgeology. Drill planning will follow.
Othersubstantiveexplorationdata	• Other exploration data, if meaningful and material,should be reported) including (but not limited to):geological observations; geophysical survey results;geochemical survey results; bulk samples - size andmethod of treatment; metallurgical test results; bulkdensity, groundwater, geotechnical and rockcharacteristics; potential deleterious or contaminatingsubstances.	Figures 1 - 4 above show various datasets that are beingused to identify target areas and to guide current andfuture drilling.
Further work	The nature and scale of planned further work (e.g. testsfor lateral extensions or depth extensions or large-scale step-out drilling).	The planned exploration program is outlined in theannouncement.

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Criteria	/ JORC Code explanation⊥	Commentary
	Diagrams clearly highlighting the areas of possibleextensions, including the main geologicalinterpretations and future drilling areas, provided thisinformation is not commercially sensitive.	See Figures 1 - 4 which show areas for furtherexploration.