SUPERIOR RESOURCES LIMITED — Capital/Financing Update 2017

Aug 13, 2017

RESULTS RECEIVED FROM RECENT DRILLING AT STEAM ENGINE GOLD PROJECT

High-grade gold assay results highlight potential to extend previously delineated gold lodes

• New drill results confirm the potential to extend high-grade gold mineralisation at depth and along strike at the 400m strike length Steam Engine Lode.
• The Steam Engine Gold Project comprises two main gold bearing lodes which have previously been drilled outlined:
  • o Steam Engine Lode (non-JORC resources outlined); and
  • o Eastern Ridge Lode.
• All holes were drilled at depth below historical drilling with each hole successfully intersecting gold mineralisation.
• High-grade intercepts include:
  • o Steam Engine Lode (SSERC006): 2m @ 1.90 g/t Au from 66m; and 4m @ 2.34 g/t Au from 90m;
  • o Eastern Ridge Lode (SSERC001): 3m @ 3.09 g/t Au from 45m;
  • o Eastern Ridge Lode (SSERC002): 1m @ 5.28 g/t Au from 33m;
  • o Eastern Ridge Lode (SSERC003): 4m @ 2.47 g/t Au from 36m; and 2m @ 4.73 g/t Au from 54m;
  • o Eastern Ridge Lode (SSERC004): 3m @ 3.81 g/t Au from 50m.
• Mineral resource estimation modelling underway for the Steam Engine Lode.
• The aim of the recent drilling program was to identify additional gold mineralisation at moderate depth below historical drilling and areas of potential where additional resources may be outlined with further drilling.

Superior Resources Limited (ASX Code: SPQ) (Superior or Company) is pleased to confirm that the drilling of six holes totalling 510 metres at its Steam Engine Gold Project, intersected high-grade gold mineralisation in each of the holes. The drilling was completed recently as part of a 1,422 metre initial drilling program at four new prospects within the Company's 100% owned Greenvale Project (Figure 1).

The successful program at the Steam Engine Prospect extends the mineralised envelope along

strike and at depth at the Steam Engine Lode and extends the depth extent of a portion of the Eastern Ridge Lode (Figures 2, 3 and 4). The Steam Engine Lode has been extensively defined by previous drilling from surface to 100 metres vertical depth along the known 400 metre strike length of the lode (Figure 3). Only five holes have been drilled to depths greater than 100m vertical depth. Gold mineralisation at the Steam Engine Lode remains open at depth and along strike to the north.

Mineral resource modelling of the Steam Engine Lode is currently being conducted using results from the recent drilling program and historical data. A maiden mineral resource estimate will be developed from the modelling work.

Strong results from the Eastern Ridge Lode confirm the potential to extend the lode at depth and also the possibility of delineating multiple parallel mineralised lodes. Multiple zones of mineralisation were intersected in two of the four holes drilled at the Eastern Ridge Lode.

Superior's Managing Director, Peter Hwang said:

"We are very pleased with the results of our recent drilling program at the Steam Engine Prospect. In particular, the results provide us with a level of confidence that gold mineralisation at each of the lodes is consistently of high grade and that there is excellent potential for the lodes to continue at depth and in respect of the Steam Engine Lode, along strike to the north.

We have an extensive high grade gold system at this prospect with over 2.5 kilometres of strike length that crops out at surface and remains open at depth and along strike. With the Eastern Ridge Lode extending for at least 2 kilometres and sparsely drilled, we consider there is excellent potential for discovery of further significant gold mineralisation.

The Company is eagerly looking forward to conducting a follow-up drilling program during the second half of the year, which will be aimed at extending the size of the gold lodes and building a viable mineral resource".

Figure 1. Map of the Greenvale Project showing the location of EPM26165 and the Steam Engine Gold Deposit.

Recent Drilling Program

Six Reverse Circulation (RC) drill holes were completed in the recent drilling program for a total of 510m of drilling at the Steam Engine Gold Project.

Hole	Easting*	Northing*	RL*	Azimuth*	Dip	Depth	Location
Name				(º)	(º)	(m)
SSERC001	9921.02	9912.50	595.90	90.00	-61.67	72.0	Eastern Ridge
SSERC002	9951.84	9952.41	597.34	90.00	-61.69	72.0	Eastern Ridge
SSERC003	9948.82	9998.79	596.55	90.00	-62.21	72.0	Eastern Ridge
SSERC004	9942.18	10042.67	596.02	90.00	-60.71	72.0	Eastern Ridge
SSERC005	9380.13	10500.63	586.40	90.00	-60.20	102.0	Steam Engine
SSERC006	9400.22	10551.20	584.54	90.00	-61.14	120.0	Steam Engine
* Locations of the drill holes are on the local Steam Engine Grid. They have been established from MGA coordinates from a DGPS
pickup and translated to local coordinates using an accurate translation established from a DGPS survey of historical drill hole
collars.

Table 1. Details of drill holes completed in the recent program

At the Steam Engine Lode, two holes were drilled to the north of the main area of historical resource drilling undertaken by Noranda Australia and others. The purpose of the drilling was to test the Steam Engine Lode at depth below shallow historical surface drilling (Figure 2). Both holes intersected a well-defined lode structure containing gold bearing pyritic schist similar to historical gold intersections. The following intersections were recorded.

Table 2. Gold intersections from the recent drilling of the Steam Engine Lode#

HoleName	From(m)	To(m)	Length(m)	Gold(g/t Au)
SSERC005	70	72	2	1.90
SSERC006	66	68	2	2.79
SSERC006	90	94	4	2.34
		# Drill hole intersections have been calculated using a cutoff of 1g/t with no included material below the cutoff. True widths of

# Drill hole intersections have been calculated using a cutoff of 1g/t with no included material below the cutoff. True widths of intersections are approximately 0.9 times the intersection lengths shown in the table.

A plot of all intersections projected onto the plane of the Steam Engine Lode (Figure 3) shows the position of the intersections in relation to historical drilling intersections. This plot indicates that there is good potential for additional gold resources on the Steam Engine Lode to the north of the area of detailed drilling. This conclusion is based on an interpreted shallow northerly plunge of the stronger gold mineralisation in the area of more detailed drilling. Superior will be conducting a follow-up drilling program during the second half of the year, which will be aimed at extending the extent of mineralisation of the Steam Engine Lode.

At the Eastern Ridge Lode, four shallow holes were drilled in a part of the lode where earlier historical drilling had shown the best gold results (Figure 4). All four holes intersected the Eastern Ridge Lode structure with the following intersections recorded.

Table 3. Gold intersections from the recent drilling of the Eastern Ridge Lode#

Hole	From	To	Length	Gold
Name	(m)	(m)	(m)	(g/t Au)
SSERC001	10	12	2	2.24
SSERC001	16	18	2	2.14
SSERC001*	45	48	3	3.09
SSERC002*	33	34	1	5.28
SSERC003	36	40	4	2.47
SSERC003*	54	56	2	4.73
SSERC004	42	43	1	4.67
SSERC004*	50	53	3	3.81

# Drill hole intersections have been calculated using a cutoff of 1g/t with a maximum of 1m of included material below the cutoff. True widths of intersections are approximately 0.9 times the intersection lengths shown in the table. * Intersections of the main Eastern Ridge Lode structure.

Figure 2. Steam Engine Lode – Gold bearing lodes and drill holes.

Figure 4. Eastern Ridge Lode – Gold bearing lode and drill holes.

These results are encouraging for the development of a shoot of gold mineralisation on the Eastern Ridge Lode in and around the area drilled.

Superior will be conducting a follow-up drilling program during the second half of the year, which will be aimed at intersecting the Eastern Ridge Lode at greater depth.

Background

The Steam Engine Gold Deposit lies within the old Lucky Creek Goldfield about 25km west of Greenvale in north Queensland (Figure 1). The deposit lies some 6km south of Superior's One Mile Project and 4km north of Superior's Bottletree Copper Project. It was discovered by Noranda Australia Limited in 1983 with the first drilling being undertaken in 1985. Following substantial drilling to establish a resource, the area was covered with a Mineral Development Licence (MDL107) in 1991. MDL107 has been held by various parties until it was recently relinquished along with a surrounding EPM making the area available for application by Superior as an Exploration Permit for Minerals.

Work Completed To Date

Superior has undertaken a program of digital compilation and interpretation of previous exploration data over the Steam Engine and surrounding area. The data compilation work has been done from digital scans of hard-copy reports held at the Queensland Department of Natural Resources and Mines and from other sources. Whilst considerable valuable data is held by the Department, the data is incomplete in that assay and geology logs for fill-in drilling at 25m centres are not held by the Department. The data held, however, does include some drafted 25m spaced sections allowing most of the missing assay and geological information to be recovered to digital form.

Gold Lodes

The Steam Engine area contains two main gold bearing lodes and a number of smaller lodes. The western lode is known as the Steam Engine Lode and the eastern lode, located some 600m east of the Steam Engine Lode, as the Eastern Ridge Lode. A small area of gold mineralisation (Southern Zone) occurs between and south of these two lodes. The lodes are north-northeast-trending west-dipping lodes and are essentially mineralised shear zones comprised of pyritic quartz-muscovite-carbonate schist within meta-amphibolite and/or metatonalite. The gold mineralisation contrasts with many gold occurrences in Queensland which are associated with gold bearing quartz veins.

Steam Engine Lode

Most of the historical drilling in the Steam Engine area has been concentrated on the Steam Engine Lode. Some 75 holes have been drilled into and adjacent to the Steam Engine Lode including 45 reverse circulation (RC) holes and 12 diamond drill holes (DD). Gold intersections above 5 metresXgrams/tonne (m.g/t) from drilling on the Steam Engine Lode are listed in Table 4. The detailed drilling shows that the gold mineralisation dips consistently to the west at about 55-58° and that it has good continuity as indicated in the sections in Figures 5 and 6.

Detailed drilling over a 300m section of this lode down to approximately 100m depth has allowed previous explorers to determine a resource (non-JORC) for this area. Superior will be completing a resource estimation on this area of mineralisation in accordance with the JORC Code when the necessary information has been compiled.

Table 4. Steam Engine drill hole intersections above 5m.g/t from historical drilling#

HoleName	From(m)	To(m)	Gold(g/t)	Length(m)	LXAu(m.g/t)	East(Local)	North(Local)	RL(Local)	Azimuth(Local)	Dip(°)
LSDD001	61.6	69.4	2.48	7.8	19.3	9367.12	10310.52	534.43	90.0	-55.0
LSDD001	70.4	71.4	6.80	1.0	6.8	9370.22	10310.52	530.00	90.0	-55.0
LSDD002	160.6	168.0	1.93	7.5	14.4	9322.92	10304.74	466.95	96.0	-48.0
LSDD002	171.4	178.0	1.83	6.6	12.1	9329.74	10304.07	459.09	96.0	-48.0
LSDD003	348.4	350.5	5.54	2.1	11.6	9271.39	10257.67	348.07	107.0	-40.0
LSDD004	96.5	100.0	4.36	3.5	15.0	9393.07	10445.70	505.94	97.0	-55.0
LSDD005	100.0	105.6	2.78	5.6	15.6	9385.66	10396.21	502.72	95.0	-56.0
LSDD006	94.1	102.0	2.82	7.9	22.3	9369.91	10345.82	506.63	92.0	-54.3
LSDD007	93.4	98.0	3.85	4.6	17.7	9347.90	10311.41	510.47	88.0	-53.5
LSDD007	106.0	110.1	2.85	4.1	11.7	9355.03	10311.66	500.39	88.0	-53.5
LSDD008	95.3	104.0	2.02	8.7	17.6	9335.95	10236.04	505.07	105.0	-56.0
LSDD008	112.0	113.3	4.62	1.3	6.0	9342.87	10234.19	494.22	105.0	-56.0
LSDD009	90.6	92.4	5.32	1.8	9.6	9331.71	10199.85	512.97	99.0	-51.2
LSDD009	110.0	117.0	2.45	7.0	17.2	9345.04	10197.92	495.58	99.0	-51.2
LSDD011	156.0	161.2	2.18	5.2	11.3	9346.49	10394.30	459.05	94.0	-59.0
LSRC001	37.0	42.0	2.71	5.0	13.6	9370.32	10205.61	556.65	90.0	-55.0
LSRC002	38.0	44.0	2.17	6.0	13.0	9386.28	10310.03	551.24	90.0	-55.0
LSRC003	35.0	41.0	2.83	6.0	17.0	9415.76	10400.18	552.73	90.0	-55.0
LSRC009	28.0	31.0	1.97	3.0	5.9	9380.11	10254.85	561.91	90.0	-60.0
LSRC012	37.0	42.0	2.94	5.0	14.7	9400.03	10353.88	551.60	90.0	-55.0
LSRC019	20.0	23.0	4.71	3.0	14.1	9431.49	10450.56	564.28	90.0	-60.0
LSRC030	76.0	85.0	2.40	9.0	21.6	9359.90	10205.66	516.43	90.0	-60.0
LSRC031	54.0	61.0	4.00	7.0	28.0	9399.65	10400.13	528.14	90.0	-75.0
LSRC032	50.0	52.0	2.62	2.0	5.2	9415.50	10450.00	540.73	90.0	-60.0
LSRC033	38.0	43.0	1.74	5.0	8.7	9460.25	10600.00	548.13	90.0	-60.0
LSRC037	19.0	21.0	5.29	2.0	10.6	9380.20	10201.40	573.48	90.0	-60.0
LSRC037	36.0	39.0	1.88	3.0	5.6	9388.95	10201.40	558.32	90.0	-60.0
LSRC039	23.0	25.0	2.69	2.0	5.4	9402.80	10228.90	571.87	90.0	-60.0
LSRC039	31.0	39.0	2.69	8.0	21.5	9408.30	10228.90	562.34	90.0	-60.0
LSRC041	41.0	42.0	8.15	1.0	8.2	9371.75	10225.70	551.96	90.0	-60.0
LSRC042	1.0	6.0	2.34	5.0	11.7	9397.25	10252.40	588.02	90.0	-60.0
LSRC043	17.0	21.0	2.76	4.0	11.0	9389.40	10251.80	573.50	90.0	-60.0
LSRC044	43.0	47.0	2.32	4.0	9.3	9368.30	10254.80	546.38	90.0	-60.0
LSRC045LSRC046	11.011.0	15.015.0	1.661.78	4.04.0	6.67.1	9401.309386.00	10280.9010280.40	577.44575.89	90.090.0	-60.0-60.0
LSRC046	20.0	27.0	1.46	7.0	10.2	9391.25	10280.40	566.80	90.0	-60.0
LSRC047	0.0	1.0	6.51	1.0	6.5	9354.65	10280.00	585.17	90.0	-60.0
LSRC047	34.0	35.0	6.78	1.0	6.8	9371.65	10280.00	555.72	90.0	-60.0
LSRC047	39.0	44.0	1.31	5.0	6.6	9375.15	10280.00	549.66	90.0	-60.0
LSRC048	5.0	10.0	1.81	5.0	9.1	9396.75	10310.90	578.95	90.0	-60.0
LSRC050	0.0	10.0	3.46	10.0	34.6	9405.91	10331.80	584.27	90.0	-60.0
LSRC050	17.0	18.0	30.50	1.0	30.5	9412.16	10331.80	573.44	90.0	-60.0
LSRC051	18.0	32.0	2.49	14.0	34.9	9394.20	10330.60	562.60	90.0	-60.0
LSRC052	46.0	51.0	3.90	5.0	19.5	9383.55	10326.70	543.75	90.0	-60.0
LSRC053	5.0	14.0	4.68	9.0	42.1	9417.75	10356.10	577.92	90.0	-60.0
LSRC054	19.0	27.0	2.96	8.0	23.7	9409.20	10355.20	566.23	90.0	-60.0
LSRC055	57.0	63.0	2.46	6.0	14.8	9388.10	10352.70	533.34	90.0	-60.0
LSRC056	4.0	12.0	2.38	8.0	19.0	9422.40	10377.00	578.82	90.0	-60.0
LSRC057	20.0	24.0	1.86	4.0	7.4	9413.80	10376.40	566.00	90.0	-60.0
LSRC058	40.0	45.0	4.56	5.0	22.8	9399.25	10375.60	547.04	90.0	-60.0
LSRC059	11.0	20.0	2.49	9.0	22.4	9428.45	10402.00	570.98	90.0	-60.0
LSRC060	25.0	31.0	3.44	6.0	20.6	9419.80	10401.10	559.70	90.0	-60.0
LSRC062	24.0	28.0	3.65	4.0	14.6	9423.10	10426.30	560.78	90.0	-60.0
LSRC063	51.0	58.0	3.94	7.0	27.6	9412.25	10425.60	536.75	90.0	-60.0
SERC001	82.0	86.0	2.48	4.0	9.9	9344.71	10291.54	519.25	90.0	-60.0
SERC001	94.0	99.0	7.44	5.0	37.2	9350.96	10291.54	508.43	90.0	-60.0
SERC004	9.0	19.0	3.94	10.0	39.4	9416.19	10355.47	574.88	90.0	-60.0
							# Drill hole intersections have been calculated using a cutoff of 1g/t gold with a maximum of 2m of included material below the
							cutoff. True widths of intersections are approximately 0.87 times the intersection lengths shown in the table.

The drilling on the Steam Engine Lode is generally restricted to the near surface zone down to about 120m vertical depth. Only one hole (LSDD003) has been drilled to any significant depth. This diamond drill hole intersected the lode between 348.4m and 350.5m down hole with 2.1m @ 5.54g/t Au intersected (true width approximately 2.0m). This is at a vertical depth of about 220m below surface showing that the lode continues at least to this depth.

Photograph 1. The steam engine from which the Steam Engine Gold Deposit gets its name

Eastern Ridge Lode

Some 47 holes have been drilled into and adjacent to the Eastern Ridge Lode of which 20 are RC drill holes and the remainder RAB holes. No diamond drill holes have been drilled into the lode. Gold intersections above 5 metresXgrams/tonne (m.g/t) from drilling on the Eastern Ridge Lode are listed in Table 2. The drilling shows that, like the Steam Engine Lode, the gold mineralisation occurs within a shear zone which dips to the west.

HoleName	From(m)	To(m)	Gold(g/t)	Length(m)	LXAu(m.g/t)	East(Local)	North(Local)	RL(Local)	Azimuth(Local)	Dip(°)
LSRC005	23.0	26.0	2.79	3.0	8.4	9984.05	10000.00	574.63	90.0	-55.0
LSRC007	37.0	39.0	5.07	2.0	10.1	9949.00	9700.00	570.09	90.0	-60.0
LSRC015	29.0	33.0	2.75	4.0	11.0	10142.28	10300.00	570.41	90.0	-55.0
SERC008	17.0	22.0	4.47	5.0	22.4	9939.41	10199.27	573.61	90.0	-60.0
SERC009	24.0	27.0	6.90	3.0	20.7	9963.10	9868.86	575.92	52.0	-60.0
# Drill hole intersections have been calculated using a cutoff of 1g/t with a maximum of 2m of included material below the cutoff.
True widths of intersections are approximately 0.87 times the intersection lengths shown in the table.

Table 5. Eastern Lode drill hole intersections above 5m.g/t from historical drilling#

The Eastern Lode extends for a total distance of over 2km and the spacing of the drill holes is variable. The lode structure is poorly drilled opening up the possibility of gold intersections from further drilling particularly around the better historical intersections shown in Table 2.

Figure 6. Steam Engine Drill Hole Assay Section 10250N showing gold intersections of the Steam Engine Lode. The lode shows good continuity and has a westerly dip of about 55°. This section and the following section are separated by 100m and are located near the centre of the area of detailed drilling on the lode.

Figure 7. Steam Engine Drill Hole Assay Section 10350N showing gold intersections of the Steam Engine Lode. The lode shows good continuity and has a westerly dip of about 55°. This section and the previous section are separated by 100m and are located near the centre of the area of detailed drilling on the lode. This section also shows hole SERC004 (drilled more recently by Beacon Minerals Limited) which supports the gold grades in earlier drilling on this section.

Southern Zone

The Southern Zone lies at the southern end of the Steam Engine area. A number of shallow scattered pits appear to indicate prospecting on a series of narrow gold bearing structures. Some 20 RC drill holes have been drilled in this general area of which three show gold intersections above 5 metresXgrams/tonne (m.g/t). These are shown in Table 3.

Table 1. Southern Zone drill hole intersections above 5m.g/t from historical drilling#

Hole	From	To	Gold	Length	LXAu	East	North	RL	Azimuth	Dip
Name	(m)	(m)	(g/t)	(m)	(m.g/t)	Local)	(Local)	(Local)	(Local)	(°)
LSRC010	33.0	36.0	2.95	3.0	8.9	9554.79	9295.00	588.54	90.0	-55.0
LSRC020	39.0	40.0	5.37	1.0	5.4	9491.75	9150.00	583.89	90.0	-60.0
LSRC021	45.0	47.0	2.92	2.0	5.8	9635.05	9200.00	581.22	90.0	-57.0
	# Drill hole intersections have been calculated using a cutoff of 1g/t gold with a maximum of 2m of included material
below the cutoff. True widths of intersections are unknown but expected to be approximately 0.87 times the
	intersection lengths shown in the table for lodes dipping approximately 60° to the west.

Peter Hwang Managing Director

Contact: Mr Peter Hwang (07 3839 5099) Mr Carlos Fernicola (07 3831 3922) Further Information: www.superiorresources.com.au manager@superiorresources.com.au

The information in this report, insofar as it relates to Exploration Results is based on information compiled by Mr Ken Harvey, who is a non-executive Director of Superior Resources Limited and a member of the Australian Institute of Geoscientists. Mr Harvey has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he has undertaken 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 Harvey consents to the inclusion in the report of the matters based on the information in the form and context in which it appears.

Certain statements made in this report may contain or comprise certain forward-looking statements. Although Superior Resources Limited believes that any estimates and expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Accordingly, results and estimations could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in the economic and market conditions, success of business and operating initiatives and changes in the regulatory environment. Superior undertakes no obligation to update publicly or release any revisions of any forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events.

Appendix 1: JORC Code, 2012 Edition – Table 1

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 (e.g. cut channels, randomchips, or specific specialised industry standard measurementtools appropriate to the minerals under investigation, such asdown hole gamma sondes, or handheld XRF instruments, etc.).These examples should not be taken as limiting the broadmeaning of sampling.•Include reference to measures taken to ensure samplerepresentivity and the appropriate calibration of anymeasurement tools or systems used.•Aspects of the determination of mineralisation that are Materialto the Public Report.•In cases where 'industry standard' work has been done thiswould be relatively simple (e.g. 'reverse circulation drilling wasused to obtain 1 m samples from which 3 kg was pulverised toproduce a 30 g charge for fire assay'). In other cases moreexplanation may be required, such as where there is coarsegold that has inherent sampling problems. Unusualcommodities or mineralisation types (e.g. submarine nodules)may warrant disclosure of detailed information.	Current Sampling•Drill holes are sampled and collected as 1mriffle split samples. Approximately 1-3kg ofsample was collected over each 1m interval.•All samples are collected as drilled via a riffle splitter attached to the drill rig cyclone.•The drill bit sizes used in the drilling were consistent in size and are consideredappropriate to indicate the degree and extent of mineralisation.•Sample intervals that lack metalliferous anomalism are not reported and are notconsidered to be material.•The magnetic susceptibility of all samples was measured in the field.•Portable XRF analyses were systematically recorded in controlled environment at TerraSearch officesin Townsville.•1m representative samples of intervals with visible mineralisation were assayed for goldat ALS laboratories in Townsville. 2m representative samples of intervals without visiblemineralisation, derived from compositing two samples from consecutive 1m intervals,were also assayed for gold at ALS laboratories in Townsville. Where gold mineralisationwas detected in the 2m composite samples, 1m samples were submitted for furtherassaying.•1m samples were also submitted for multi-element assaying using aqua regia digestion.•Assaying for gold was via fire assay of a 50 gram charge.•Sample preparation at ALS laboratories in Townsville for all samples is considered to beof industry standard procedure.
		Historical Sampling•Information relating to historical resultsrelies on data contained in reports submitted tothe Queensland Department of Natural Resources and Mines as part of the CompanyReport System attaching to the grant of Exploration Permits.•The sampling techniques, where reported, used standard industry approaches. Theseinclude:1. splitting off a sample of material delivered to the top of the hole during RCdrilling to produce a sample forassay accompanied by geological logging of thesample.2. Halving of drill core from diamond drilling to produce an assay sample accompaniedby geological logging of the core.•Assaying of samples was completed by commercial laboratory methods that wereappropriate at the time the samples were collected. Sample intervals of 4m werecommonly used for initial determinationof the presence of gold by a geochemical

Criteria	JORC Code explanation	Commentary
		method followed by more detailed sampling of mineralised intervals at usually 1mintervals using a more precise method.•Whilst it is not possible to determine the reliability of historical assay results, no issuesarose during compilation and interpretation of the results that would suggest that theassay results were not reasonable.
Drillingtechniques	•Drill type (e.g. core, reverse circulation, open-hole hammer,rotary air blast, auger, Bangka, sonic, etc.) and details (e.g.core diameter, triple or standard tube, depth of diamond tails,face-sampling bit or other type, whether core is oriented and ifso, by what method, etc.).	Current Drilling•Drilling from surface was performed using standard Reverse-Circulation (RC) drillingtechniques.•Drilling was conducted by Kelly Drilling using a Schramm 450WS with a 900cfm/350psicompressor and 700 psi on-board booster.•Sampling was by the use of a face-sampling hammer bit.•All holes were surveyed using a Reflex Gyro north-seeking gyroscopic instrument toobtain accurate down-hole directional data.Historical Drilling
		•Reverse Circulation (RC) and Diamond Drilling (DD) are the only drill types relied on inthis report.
Drill samplerecovery	•Method of recording and assessing core and chip samplerecoveries and results assessed.•Measures taken to maximise sample recovery and ensurerepresentative nature of the samples.•Whether a relationship exists between sample recovery andgrade and whether sample bias may have occurred due topreferential loss/gain of fine/coarse material.	Current Drilling•Sample recovery was performed and monitored by Terra Search contractor and SuperiorResources' representatives.•The volume of sample collected for assay is considered to be representative of each 1minterval.•RC drill rod string delivered the sample to the rig-mounted cyclone which is sealed at thecompletion of each 1m interval. The riffle splitter is cleaned with compressed air at theend of each 1m interval and atthe completion of each drill hole.
		Historical Drilling•Recoveries for RC drill holes were not recorded.•Recoveries for diamond drill core samples were recorded for most holes drilled at SteamEngine.These recoveries were usually of the order of 100% indicating that recoveriesshould not be an issue if the results are used for estimating resources.•No relationship is evident between sample recovery and grade.

Criteria	JORC Code explanation	Commentary
Logging	•Whether core and chip samples have been geologically andgeotechnically logged to a level of detail to support appropriateMineral Resource estimation, mining studies and metallurgicalstudies.•Whether logging is qualitative or quantitative in nature. Core(orcostean, channel, etc.) photography.•The total length and percentage of the relevant intersectionslogged.	Current Drilling•There is no apparent relationship between sample recovery and grade of mineralisation.•Geological logging was conducted during the drilling of each hole by a Terra Searchgeologist having sufficient qualification and experience for the mineralisation styleexpected and observed at each hole.•All holes were logged in their entirety at 1m intervals. All logging data is digitally compiledand validated before entry into the Superior database.•The level of logging detail is considered appropriate for resource drilling.•Magnetic susceptibility data for each 1m sample interval was collected in the field.
		Historical Drilling•Geologicallogging of most of the drill holes is available in the Company Report System.Logs for holes drilled at fill-in 25m sections have not been located at this stage asmentioned in the report. The available logging appears to be of a standard to supportresource estimation. No geotechnical logs have been reported and it is assumed thatthese were not done. Diamond drill hole logs usually include structural data which hasbeen compiled in digital form.•The logging is generally of a qualitative nature. No core or chip photography is availablein the reports.•For the logs available logging of all material has been completed.
Sub-samplingtechniquesand samplepreparation	•If core, whether cut or sawn and whether quarter, half or allcore taken.•If non-core, whether riffled, tube sampled, rotary split, etc. andwhether sampled wet or dry.•For all sample types, the nature, quality and appropriateness ofthe sample preparation technique.•Quality control procedures adopted for all sub-sampling stagesto maximise representivity of samples.•Measures taken to ensure that the sampling is representative ofthe in situ material collected, including for instance results forfield duplicate/second-half sampling.•Whether sample sizes are appropriate to the grain size of thematerial being sampled.	Current Drilling•The sample collection methodology is considered appropriate for RC drilling and wasconducted in accordance with standard industry practice.•Split 1m samples are regarded as reliable and representative.•RC samples are split with a riffle splitter at 1m intervals as drilled.•Samples were collected as dry samples.Historical Drilling•As reported above, it is reported that diamond drillcore has been halvedas is standardpractice for most explorers.•Details of the approach taken for sampling of RC drill holes are not available.
Quality ofassay dataand laboratorytests	•The nature, quality and appropriateness of the assaying andlaboratory procedures used and whether the technique isconsidered partial or total.•For geophysical tools, spectrometers, handheld XRFinstruments, etc., the parameters used in determining theanalysis including instrument make and model, reading times,calibrations factors applied and their derivation, etc.	Current Drilling•All samples were submitted to ALS laboratories in Townsville for gold and multi-elementanalysis.•Samples were crushed, pulverised to ensure a minimum of 85% pulp material passingthrough 75 microns, then analysed for gold by fire assay method Au-AA26 using a 50gram sample.•Multi-element analyses were conducted using aqua regia digestionfollowed by an

Criteria	JORC Code explanation	Commentary
	•Nature of quality control procedures adopted (e.g. standards,blanks, duplicates, external laboratory checks) and whether	ICPAES finish using method ME-ICP41.•Gold and base metal standards were included in the samples submitted to the laboratory.
	acceptable levels of accuracy (i.e. lack of bias) and precisionhave been established.	Historical Drilling•As reported above, assaying of samples was completed by commercial laboratorymethods that were appropriate at the time the samples were collected. Sample intervalsof 4m were commonly used for initial determination of the presence of gold by ageochemical method followed by more detailed sampling ofmineralised intervals atusually 1m intervals with assaying for gold by a more precise method.•Assay data submitted with the reports include some duplicate assaying. It is unknown indetail whatquality control procedures wereadopted.
Verification ofsampling andassaying	•The verification of significant intersections by eitherindependent or alternative company personnel.•The use of twinned holes.•Documentation of primary data, data entry procedures, dataverification, data storage (physical and electronic) protocols.•Discuss any adjustment to assay data.	Current Drilling•The reported significant intersections have been verified by at least two Terra Searchgeologists against representative drill chips collected and the drill logs.•No holes were twinned.•No adjustments to assay data were undertaken.•All drill hole logging and sampling data continue to be uploaded and validated by TerraSearch and Superior staff.
		Historical Drilling•Limited more recent drilling by Beacon Minerals Limited confirms the drill goldintersections obtained by Noranda Australia Limited as shown in Figure 7. Other drill holeresults reported by Beacon support the order of gold grades at both the Steam Engineand Eastern Ridge lodes.•No twinned holes have been drilled by Superior at this time.•It is evident that most of the historical drill hole data was captured on paper and stored onpaper. The compilation of that data in digital form has been completed by the competentperson with plotting of the data on both plans and sections also held in digital form.•Noadjustments have beenmade to historicalsample assaydata as there was noapparent reason for such adjustment.
Location ofdata points	•Accuracy and quality of surveys used to locate drill holes (collarand down-hole surveys), trenches, mine workings and otherlocations used in Mineral Resource estimation.•Specification of the grid system used.•Quality and adequacy of topographic control.	Current Drilling•Drill hole collars have been recorded in the field using hand held GPS with three metre orbetter accuracy.•Current drill hole collar locations and selected historical drill hole collar locations andtopographic RL control were further defined using DGPS operated by Terra Search staff.•Drill hole spacing and drilling technique are appropriate to establish the degree ofgeological and grade continuity of the mineral resources estimation procedures that willbe applied. The mineralised system remains open and infill and depth and strikeextension drilling isrequired to confirm the full extent of the ore bodies.•The area is located within UTM Zone 55, GDA94 datum.

Criteria	JORC Code explanation	Commentary
		Historical Drilling•Noranda Australia controlled exploration of the Steam Engine area using a local grid. Asthe property advanced a surveyor was used to provide a more accurate local grid controlwith a local height datum being implemented. Data has been compiled using the local gridcoordinates. Drill holes completed by Beacon Minerals Limited are reported usinghandheld GPS collar coordinates with a likelyaccuracy of about ± 5m. Anaccuratetranslation from GPS coordinates to local grid coordinates has been used to convert theBeacon drill hole data to local coordinates. Many of the drill hole collars are still evident atthe prospect allowing validation of the drill hole locational data by DGPS before beingused for resource estimation work.•The area lies within UTM Zone 55, GDA94 datum.
Data spacinganddistribution	•Data spacing for reporting of Exploration Results.•Whether the data spacingand distribution is sufficient toestablish the degree of geological and grade continuityappropriate for the Mineral Resource and Ore Reserveestimation procedure(s) and classifications applied.•Whether sample compositing has been applied.	•Drill hole spacing is variable atthe Steam Engine area.•The drillhole spacing is sufficient for the central portion of the Steam Engine Lode toallow estimation of resources when all necessary information is compiled to allow this tooccur as documented in the report.•Most intersections reported in this report are weighted composites of smaller sampleintervals as is standard practice.
Orientation ofdata inrelation togeologicalstructure	•Whether the orientation of sampling achieves unbiasedsampling of possible structures and the extent to which this isknown, considering the deposit type.•If the relationship between the drilling orientation and theorientation of key mineralised structures is considered to haveintroduced a sampling bias, this should be assessedandreported if material.	•The orientation of the drill holes is ideal for reporting of results and estimation ofresources.•No orientation sample bias has been identified at this stage.
Samplesecurity	•The measures taken to ensure sample security.	•Sample security measures in the field and within ALS laboratories is consideredadequate.
Audits orreviews	•The results of any audits or reviews of sampling techniques anddata.	•No audits or reviews of the sampling techniques and data have been undertakenat thistime.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineraltenement andland tenure	•Type, reference name/number, location andownershipincluding agreements or material issues with third parties suchas joint ventures, partnerships, overriding royalties, native title	•The areas reported on lie within Exploration Permit for Minerals 26165 which wasgranted on 30 January 2017. Superior holds much of the surroundingarea under grantedexploration permits.

Criteria	JORC Code explanation	Commentary
status	interests, historical sites, wilderness or national park andenvironmental settings.•The security of the tenure held at the time of reporting alongwith any known impediments to obtaining a licence to operate inthe area.	•Superior has agreements or other appropriate arrangements in place with landholdersand native title parties with respect to work in the area.•No regulatory impediments affect the relevant tenements or the ability of Superior tooperate on the tenements.
Explorationdone by otherparties	•Acknowledgment and appraisal of exploration by other parties.	Historical Drilling•All of the historical drilling reported in this report has been completed and reported inaccordance with the current regulatory regime.•Compilation in digital form and interpretation of the results of that work in digital form hasbeen completed by the Competent Person.
Geology	•Deposit type, geological setting and style of mineralisation.	•As reported, the Steam Engine Gold Deposit is hosted within a shear zone. It is thought tohave some similarities with the shear gold mineralisation at Hemlo in Ontario, Canadawhich the Competent Person is familiar with having visited one of the operatingmines onthe lode. Important features of the Steam Engine mineralisation are its continuity and itspersistent dip to the west.
Drill holeInformation	•A summary of all information material to the understanding ofthe exploration results including a tabulation of the followinginformation for all Material drill holes:easting and northing of the drill hole collaroelevation or RL (Reduced Level) of the drill hole collarodip and azimuth of the holeodown hole length and interception depthohole length.o•Ifthe exclusion of this information is justified on the basis thatthe information is not Material and this exclusion does notdetract from the understanding of the report, the CompetentPerson should clearly explain why this is the case.	•Drill hole collar tableswith significant intersections areincluded in the main body of theannouncement.These tables include information relevant to an understanding of theresults reported.
Dataaggregationmethods	•In reporting Exploration Results, weighting averagingtechniques, maximum and/or minimum grade truncations (e.g.cutting of high grades) and cut-off grades are usually Materialand should be stated.•Where aggregate intercepts incorporate short lengths of highgrade results and longer lengths of low grade results, theprocedure used for such aggregation should be stated andsome typical examples of such aggregations should be shownin detail.•The assumptions used for any reporting of metal equivalentvalues should be clearly stated.	•Exploration results are reported as a length weighted average of all the assays of thewholehole intersections.•Notop cutting has been applied as there are a limited number of high-grade gold assaysthat influence the calculated intersection grades. This is a feature of the Steam EngineGold Deposit.•No metal equivalent values are reported.
Relationshipbetween	•These relationships are particularly important in the reporting ofExploration Results.	•For the Steam Engine area an interpreted westerly dip of approximately 60° (or less) anddrill holes which generally dip to the east at around 60° (or less) result in true widths at or

Criteria	JORC Code explanation	Commentary
mineralisationwidths andinterceptlengths	•If the geometry of the mineralisation with respect to the drill holeangle is known, its nature should be reported.•If it is not knownand only the down hole lengths are reported,there should be a clear statement to this effect (e.g. 'down holelength, true width not known').	above 0.87 times the intersection lengths as reported.
Diagrams	•Appropriate maps and sections (with scales) and tabulations ofintercepts should be included for any significant discovery beingreported These should include, but not be limited to a plan viewof drill hole collar locations and appropriate sectional views.	•Included.
Balancedreporting	•Where comprehensive reporting of all Exploration Results is notpracticable, representative reporting of both low and highgrades and/or widths should be practiced to avoid misleadingreporting of Exploration Results.	•Reporting of all reverse circulation and diamond drill holes with intersections above 1g/tgold has been included in tables within the report.Possibly less reliable RAB holes havenot been included.
Othersubstantiveexplorationdata	•Other exploration data, if meaningful and material, should bereported including (but not limited to): geological observations;geophysical survey results; geochemical survey results; bulksamples –size and method of treatment; metallurgical testresults; bulk density, groundwater, geotechnical and rockcharacteristics; potential deleterious or contaminatingsubstances.	•An interpreted geological map of the Steam Engine area is included in the report. Thismap also shows drill hole collars and traces with all gold intersections over 1g/t shown.The size of the area makes it difficult to clearly present this A0 sized map on an A4 pieceof paper. Down hole geology compiled digitally for most holes is also difficult to show insections at A4 size. The critical geological information that the mineralisation is hosted ina shear zone is reported.
Further work	•The nature and scale of planned further work (e.g. tests forlateral extensions or depth extensions or large-scale step-outdrilling).•Diagrams clearly highlighting the areas of possible extensions,including the main geological interpretations and future drillingareas, providedthis information is not commercially sensitive.	•Proposed further work is outlined in the report