SUPERIOR RESOURCES LIMITED — Capital/Financing Update 2020

Sep 29, 2020

Latest drilling delivers outstanding 47.5 g/t shallow gold intercept at Steam Engine

Announcement

ASX

HIGHLIGHTS:

• Second batch of assays return thick, high grade gold intercept at Steam Engine Lode:
  • o 14m @ 4.9 g/t gold from 0m (surface) (SRC034)
    • incl 7m @ 9.2 g/t gold from 7m
    • incl 1m @ 47.5 g/t gold from 7m
• Other significant assay results from Steam Engine and Eastern Ridge lodes include:
  • o 13m @ 2.4 g/t gold from 21m (SRC033)
    • incl 4m @ 3.9 g/t gold from 30m
  • o 6m @ 3.4 g/t gold from 48m (SRC036)
    • incl 1m @ 11.5 g/t gold from 48m
  • o 8m @ 3.6 g/t gold from 11m (SRC043)
    • incl 2m @ 10.5 g/t gold from 17m
• Resource drilling focussed on only 30% of at least 2.5 kms of outcropping lode strike and only to shallow depths. Mineralisation remains open along strike and down dip.
• Drilling re-start being planned targeting extension of Mineral Resource along strike and down dip.
• Upcoming revised Mineral Resource Estimate expected to be upgraded from current 1.27 million tonnes @ 2.3 g/t gold (approximately 94,000 ounces) resource 1 , followed by completion of a Scoping Study.

Superior Resources Limited (ASX:SPQ) is pleased to report the second batch of assays from the Resource Drilling Program at the Steam Engine Gold Deposit, located approximately 210 kilometers west of Townsville, Queensland. The results further boost the consistently strong intersections returned in the first batch of assays from both the Steam Engine and Eastern Ridge Lodes.

Superior's Managing Director, Peter Hwang, commented:

"We are pleased, although not surprised with the ounce-plus grade result in SRC034. Steam Engine is of a similar deposit style to the large Charters Towers goldfield, which produced 6.6 million ounces of gold with an average grade of 34 ounces per tonne. We are however, a little surprised that the high grade result in SRC034 came from the southern part of the Steam Engine Lode, as the resource modelling had drawn our attention to the start of a very interesting broad high grade zone at the northern end of the lode. Assays from this northern high-grade zone are yet to be received.

The latest results follow the recently announced first batch of assays that returned extensive high grade intercepts from most of the holes. The drilling to date, including historical drilling, has demonstrated good potential for the Steam Engine system to deliver a significant and sizeable deposit. Barely 30% of the known 2.5 kilometre

1 Refer to ASX announcement dated 4 May 2020.

outcropping strike extent has been drill tested in any detail and only to near-surface depths. Indications so far are that the northern and southern extents of the Mineral Resource are strongly mineralised and a couple of historic holes demonstrate that the Steam Engine Lode extends down-dip to considerable depth.

As a result, we are currently planning a re-start of the drilling, this time focusing on expanding the mineral resource along strike and down dip on both the Steam Engine and Eastern Ridge lodes. We will also be examining the potential for the existence of a recently announced fourth parallel lode zone located 1.2 kilometres east of Eastern Ridge."

Assay results

The second batch of assay results are from a total of 16 reverse circulation (RC) drill holes from the Steam Engine and Eastern Ridge lodes for a total of 568 metres of drilling. This includes:

• 11 RC drill holes for 428 metres (Steam Engine Lode); and
• 5 RC drill holes for 140 metres (Eastern Ridge Lode).

These holes have ranged in total depths from 11 metres (terminated in historic stope workings) to 65 metres at the Steam Engine Lode and from 20 to 35 metres at the Eastern Ridge Lode.

A total of approximately 2,000 samples from the drilling program have been submitted to SGS Australia Pty Ltd laboratories in Townsville for gold and multi-element analysis. To date, approximately 1,000 samples have been assayed and approximately 1,000 remain outstanding.

Significant assay results are listed in Table 1, which sets out all intersections of the Steam Engine and Eastern Ridge lodes. Included in the table are some results from within a footwall lode to the main Steam Engine Lode. This includes 'footwall lode' results from hole SRC032 (results from intersections of the main Steam Engine Lode in SRC032 have been reported in ASX Announcement dated 14 September 2020). Figure 4 shows the relationship of the footwall lode with the main Steam Engine Lode.

Drill hole collar details are provided in Table 2.

Ounce grade intercept

Hole SRC034 returned a value of approximately 1.5 ounces per tonne gold (47.5 g/t gold) from 7 metres depth, from within a gold-materialised intercept averaging 14 metres @ 4.9 g/t gold from 0 metres to 14 metres downhole (including 7 m @ 9.2 g/t from 7 metres) (Figure 3, Table 1). The drillhole intersects the mineralisation at close to a perpendicular angle and a true width for the mineralisation is estimated at just over 12 metres at the location of the drill hole itself, but reduces in size down dip to just under six metres at the next nearest drill hole. The pinching and swelling of the gold lodes is often a feature of this kind of mineralisation.

The intersection of ounce gold grade values is not unexpected at the Steam Engine Project. The mesothermal lode type of mineralisation is noted worldwide for being associated with high grade ore shoots. Many locations have historically been mined at very high grades (e.g. the historical workings at Charters Towers averaged a grade of approximately one ounce per tonne over the life of the historic goldfield).

Superior's objective at the Project is to pursue the location of similar high-grade lode zones within the lode structures at the Steam Engine, Eastern Ridge and other known lodes in the area. To this end modelling has been carried out to establish the theoretical high grade shoot corridors (Figure 1), which are planned to be explored to depth once a better understanding of the gold mineralisation is obtained from further drilling and resource development.

The current drilling program

The current drilling forms part of a resource infill and extension drilling program for the purposes of a Scoping Study to examine the viability of mining the current Mineral Resource.

This program was completed on 18 September 2020 and included the Stage 1 infill drilling on the existing resource as well as an extended program to identify additional mineral resource.

Once all outstanding assays have been received, a revised Mineral Resource Estimate will be completed to reflect the additional data. This is to be followed by a Scoping Study of the Steam Engine Project to examine the viability of mining the current Mineral Resource.

The drilling program totaled 3,756 metres from 73 drill holes and includes;

• 65 RC drill holes for 3,059 metres;
• 6 shallow Diamond Core drill holes for 302 metres; and
• 2 deeper RC/Diamond tailed drill holes for 395 metres.

The additional RC drilling has targeted new areas that are of open pit potential at the northern end of the Steam Engine lode, at the northern end of the Eastern Ridge lode, and at the Southern Zone to the south of the Eastern Ridge and Steam Engine lodes. The two deeper RC/Diamond core tailed holes have targeted further down-dip potential and are a first step in developing an understanding of the deeper lode areas.

Hole ID		From(m)	To(m)	Interval (m)	Au (g/t)	Lode
SRC014		14	21	7	0.8	Steam Engine
		10	21	11	1.5	Steam Engine
SRC016	Including	10	14	4	2.4
SRC029		4	20	16	1.1	Steam Engine
SRC031		10	19	9	1.3	Steam Engine
		22	26	4	1.4	Steam Engine Footwall
SRC032		40	43	3	2.5	Steam Engine Footwall
		21	34	13	2.4
SRC033	Including	30	34	4	3.9	Steam Engine
		0	14	14	4.9
SRC034	Including	7	14	7	9.2	Steam Engine
	Including	7	8	1	47.5
SRC035		24	30	6	2.2	Steam Engine
		14	26	12	0.9	Steam Engine
SRC036		48	54	6	3.4
	Including	48	49	1	11.5	Steam Engine Footwall
SRC038		23	26	3	0.6	Steam Engine
SRC039		19	25	6	1.0	Eastern Ridge
SRC040		9	12	3	0.7	Eastern Ridge
SRC041		21	25	4	1.1	Eastern Ridge
		6	11	5	1.7
SRC042	Including	6	7	1	4.9	Eastern Ridge
		11	19	8	3.6
SRC043	Including	17	19	2	10.5	Eastern Ridge

Table 1. Gold assay results of second batch of drill hole samples from Steam Engine and Eastern Ridge Lodes.

Figure 1. Plan showing the locations of the recently drilled holes (in blue) and previously drilled holes (in black) over gold soil anomalies and theoretical high-grade ore shoot corridors. The Steam Engine and Eastern Ridge gold-bearing lodes are shown in red.

Figure 2. Plan showing collar locations and traces of recently drilled holes at the Steam Engine Lode. Mineralisation and grade intersections are shown as colour-coded bars.

Figure 3. Cross Section 10262.5 N (local grid) on the Steam Engine lode showing significant intersections. Mineralisation and grade intersections are shown as colour-coded bars.

Figure 4. Cross Section 10287.5 N (local grid) on the Steam Engine lode showing the significant intersections. Mineralisation and grade intersections are shown as colour-coded bars.

Figure 5. Plan showing collar locations and traces of recently drilled holes at the Eastern Ridge Lode. Mineralisation and grade intersections are shown as colour-coded bars.

Figure 6: Cross Section 9875 N (local grid) on the Eastern Ridge lode. Mineralisation and grade intersections are shown as colour-coded bars.

Holes	Easting (m)	Northing (m)	RL (m)	Depth (m)	Azimutho	Dipo
SRC014	262348	7895984	584	35	108	-60
SRC016	262337	7895963	585	30	108	-60
SRC029	262287	7895888	587	35	108	-60
SRC031	262280	7895875	587	35	108	-60
SRC033	262262	7895872	586	60	108	-60
SRC034	262275	7895851	590	35	108	-60
SRC035	262257	7895858	588	50	108	-60
SRC036	262248	7895820	590	60	108	-60
SRC037a	262230	7895775	588	12	108	-60
SRC037b	262230	7895775	588	11	108	-60
SRC038	262212	7895778	589	65	108	-60
SRC039	262763	7895468	594	35	108	-60
SRC040	262740	7895375	597	20	108	-60
SRC041	262723	7895377	597	30	108	-60
SRC042	262716	7895331	597	25	108	-60
SRC043	262701	7895305	600	30	108	-60

Table 2: Collar details for the reported holes, MGA Zone 55.

For more information: Peter Hwang Tel: +61 7 3847 2887

Managing Director www.superiorresources.com.au / manager@superiorresources.com.au

About Superior Resources Limited

Superior Resources Limited (ASX:SPQ) is an Australian public company exploring for large lead-zinc-silver, copper, gold and nickel-copper-cobalt deposits in northern Queensland which have the potential to return maximum value growth for shareholders. The Company has a dominant exploration position within the Carpentaria Zinc Province and the Greenvale Ordovician rock sequences. The Carpentaria Zinc Province one of the world's richest mineral producing regions and the Company is focused on multiple Tier-1 equivalent exploration targets. At Greenvale, the Company holds ground covering the majority of the Ordovician sequences in the region, which includes at least three significant copper-gold porphyry and VMS prospects, an advancing high-grade gold deposit and a regionally large magmatic sulphide nickel-copper-cobalt prospect.

About Greenvale Project

The Greenvale Project covers a region of volcanic and intrusive rocks of Ordovician Age that are similar in type and age to the porphyry copper belt in New South Wales. The New South Wales belt of rocks host the large Cadia and North Parkes porphyry copper mines. The sequence of rocks in the Greenvale area are likely to be the northern-most extension of the remnant New South Wales Ordovician Macquarie Arc rocks.

Superior's Greenvale Project is highly prospective for VMS and porphyry copper, gold, zinc and silver deposits and contains at least ten mineral prospects. The project is located within an area of notable economic significance, being proximal to the Kidston, Balcooma, Surveyor and Dry River South deposits.

About Steam Engine Gold Deposit

The Steam Engine Gold Deposit is an extensive mesothermal gold lode system on which an Indicated and Inferred Mineral Resource Estimate of 1.27 million tonnes at 2.3 g/t for 94,000 ounces of gold has been established (refer ASX announcement 4 May 2020). The Resource has been modelled on only 30 percent of at least 2.5 kilometres of strike length of outcropping lode and only modelled to relatively shallow depths.

Currently, three gold lode zones have been identified: (1) the Steam Engine Lode; (2) the Eastern Ridge Lode; and (3) the Southern Zone of lodes. The deposit has the potential to contain significant greater tonnages high-grade gold ore shoots that may extend to significant depths. The mineralisation is hosted within structures that are sheared to a greater extent than many similar lode gold deposits, which increases the potential for significant thicknesses of gold lode mineralisation.

The Eastern Ridge Lode zone, being the longest lode structure, potentially represents the primary ore conduit. Although the lode has been mapped at surface to be at least 1.4 kilometres long, gold surface soil geochemistry indicates that the structure is closer to at least 4 kilometres long. Many shorter structures exist on the hanging wall side of the Eastern Ridge lode zone, such as the Steam Engine lode and numerous other zones have mainly only been identified from historic gold soil sampling.

Large portions of the world's economic deposits of gold are found in vein systems of this kind and they can hold impressive amounts of valuable ore. The veins and shoot zones typically can extend to significant depths with gold grades typically higher than other types of gold deposits.

Reporting of Exploration Results and Mineral Resources: The reporting of some exploration results in this report reflects information that was originally reported in market announcements as referenced in various parts of this report. The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant original market announcement.

Other information contained in this report that relates to exploration results is based on information compiled by Mr Kevin Richter, an employee of Superior Resources Limited, who is a Member of the Australasian Institute of Mining and Metallurgy. Mr Richter has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Richter consents to the inclusion in this report of the matters based on his information in the form and context in which it appears

Information contained in this report that relates to Exploration Activities is based on information evaluated by Mr Peter Hwang, an executive director and shareholder of Superior Resources Limited and a Member of the Australian Institute of Geoscientists. Mr Hwang has sufficient experience which is relevant to this style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person under the 2012 edition of the "Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Hwang consents to the inclusion in this report of the matters based on the information in the form and context in which it appears.

Forward looking statements: This document may contain forward looking statements. Forward looking statements are often, but not always, identified by the use of words such as "seek", "indicate", "target", "anticipate", "forecast", "believe", "plan", "estimate", "expect" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions. Indications of, and interpretations on, future expected exploration results or technical outcomes, production, earnings, financial position and performance are also forwardlooking statements. The forward-looking statements in this presentation are based on current interpretations, expectations, estimates, assumptions, forecasts and projections about Superior, Superior's projects and assets and the industry in which it operates as well as other factors that management believes to be relevant and reasonable in the circumstances at the date that such statements are made. The forward-looking statements are subject to technical, business, economic, competitive, political and social uncertainties and contingencies and may involve known and unknown risks and uncertainties. The forward-looking statements may prove to be incorrect. Many known and unknown factors could cause actual events or results to differ materially from the estimated or anticipated events or results expressed or implied by any forward-looking statements. All forward-looking statements made in this presentation are qualified by the foregoing cautionary statements.

Disclaimer: Superior and its related bodies corporate, any of their directors, officers, employees, agents or contractors do not make any representation or warranty (either express or implied) as to the accuracy, correctness, completeness, adequacy, reliability or likelihood of fulfilment of any forward-looking statement, or any events or results expressed or implied in any forward looking statement, except to the extent required by law. Superior and its related bodies corporate and each of their respective directors, officers, employees, agents and contractors disclaims, to the maximum extent permitted by law, all liability and responsibility for any direct or indirect loss or damage which may be suffered by any person (including because of fault or negligence or otherwise) through use or reliance on anything contained in or omitted from this presentation. Other than as required by law and the ASX Listing Rules, Superior disclaims any duty to update forward looking statements to reflect new developments.

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.	•Drill holes are sampled and collected as 1m riffle-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 degreeand extent of mineralisation.
•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 areMaterial to the Public Report.•In cases where 'industry standard' work has been done thisused to obtain 1 mproduce 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. Unusualmay warrant disclosure of detailed information.		•Sample intervals that lack metalliferous anomalism are not reported and are notconsidered to be material.
		•1m representative samples of intervals with visible mineralisation and those in thearea of interest based on previousdrilling were assayed for gold at SGS laboratories inTownsville.
	would be relatively simple (e.g. 'reverse circulation drilling wassamples from which 3 kg was pulverised to	•1m samples at 0.5 g/t Au and abovewere also submitted for multi-element assayingusing a four-acid digest.
		•Assaying for gold was via fire assay of a 50 gram charge.
	commodities or mineralisation types (e.g. submarine nodules)	•Sample preparation at SGS laboratories in Townsville for all samples is considered tobe of industry standard procedure.
Drilling•techniques	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 isoriented and ifso, by what method, etc.).	•Drilling from surface was performed using standard Reverse-Circulation (RC) drillingtechniques.
		•Drillingwas conducted by Associated Exploration Drillers(AED)using a UDR 650 drillingrig and 5.5 inch drill bit. Additional to the on-board air compressor of the drilling rig,additional compressed air was available as necessary via a separate booster truck.
		•Sampling was by the use of a face-sampling hammer bit.

Criteria	JORC Code explanation	Commentary
		•All holes were surveyed using a Reflex Gyro north-seeking gyroscopic instrument toobtain accurate down-hole directional data.
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.	•Sample recovery was performed and monitored by Terra Search contractor andSuperior Resources' representatives.•The volume of sample collected for assay is considered to be representative of each1m interval.•RC drill rod string delivered the sample to the rig-mounted cyclone which is sealed atthe completion of each 1m interval. The riffle splitter is cleaned with compressed air atthe end of each 1m interval and at the completion of each drill hole.
Logging	•Whether core and chip samples have been geologically andgeotechnically logged to a level of detail to supportappropriate Mineral Resource estimation, mining studies andmetallurgical studies.•Whether logging is qualitative or quantitative in nature. Core(or costean, channel, etc.) photography.•The total length and percentage of the relevant intersectionslogged.	•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.A spear was used to producerepresentative samples for logging.•All logging data is digitally compiled and validated before entry into the Superiordatabase.•The level of logging detail is considered appropriate for resource drilling.•The RC Chip trays were photographed.
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.and whether sampled wet or dry.•For all sample types, the nature, quality and appropriatenessof the sample preparation technique.•Quality control procedures adopted for all sub-samplingstages to maximise representivity of samples.•Measures taken to ensure that the sampling is representativeof the in situ material collected, including for instance resultsfor field duplicate/second-half sampling.	•The sample collection methodology is considered appropriate for RC drilling andwasconducted 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.•Duplicate samples aretaken and assayed in each batch processed for assaying.•The sample sizes are considered appropriate to the style of mineralisation beingassessed.

Criteria	JORC Code explanation	Commentary
	•Whether sample sizes are appropriate to the grain size of thematerial being sampled.
Quality ofassay dataandlaboratory	•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 factorsapplied and their derivation, etc.•Nature of quality control procedures adopted (e.g. standards,blanks, duplicates, external laboratory checks) and whetheracceptable levels of accuracy (i.e. lack of bias) and precisionhave been established.	•All sampleswere submitted to SGSlaboratories in Townsville for gold. Gold assays ator above 0.5 g/t were additionally assayed for a full suite of 38 additional elementsusing a four-acid digest.•Samples were crushed, pulverised to ensure a minimum of 85% pulp material passing
tests		through 75 microns, then analysed for gold by fire assay method GO_FA50V10using a50 gram sample.
		•Multi-element analyses were conductedon assays of 0.5 g/t gold or aboveusing afour-acid digestionfollowed by an ICP-AESfinish using methodGO_ICP41Q100.
		•A sub-sample of each was also subject to multi-element analysis using fouracid digestand ICP emission spectroscopy technique for the following 38 elements: Ag, Al, As, Ba,Be, Bi, Ca, Cd, Ce, Co, Cr, Cu, Fe, K, La, Li, Mg, Mn, Mo, Na, Ni, P, Pb, S, Sb, Sc, Se, Sn, Sr,Te, Th, Ti, U, V, W, Y, Zn, Zr.
		•Gold and multi-elementstandards were included in the samples submitted to thelaboratoryfor QAQC.
		•Additionally, SGSused a series of its own standards, blanks, and duplicates for the QCof theelements assayed.
Verificationof sampling	•The verification of significant intersections by eitherindependent or alternative company personnel.	•The reported significant intersections have been verified by at least two Terra Searchgeologists against representative drill chips collected and thedrill logs.
and assaying	•The use of twinned holes.•Documentation of primary data, data entry procedures, dataverification, data storage (physical and electronic) protocols.•Discuss any adjustment toassay data.	•Noholes were twinned.
		•Logs were recorded by Terra Search field geologists on hard copy sampling sheetswhich were entered into spreadsheets for merging into a central SQL database.
		•Laboratory assay files were merged directly into the database. The project geologistsroutinely validate data when loading into the database.
		•No adjustments to assay data were undertaken.
Location ofdata points	•Accuracy and quality of surveys used to locate drill holes(collar and down-hole surveys), trenches, mine workings and	•Drill hole collars have been recorded in the field using handheld GPS with three metreor better accuracy. The collar locationshave yet to be further defined using DGPS.

Criteria	JORC Code explanation	Commentary
	other locations used in Mineral Resource estimation.•Specification of the grid system used.•Quality and adequacy of topographic control.	•Drill hole spacing and drilling technique are appropriate to establish the degree ofgeological and grade continuity of the mineral resources estimation procedures thatwill be applied. The mineralised system remains open and further infill and depth andstrike extension drilling is required to confirm the full extent of the ore bodies.
		•The area is located within MGAZone 55.
		•Topographic control is currently from previous DGPS pickup and RL adjusted contours.This arrangement has been adequate to date, however further definition of thetopography is planned using DGPS.This is to be carried out shortly.
Data spacinganddistribution	•Data spacing for reporting of Exploration Results.•Whether the data spacing and 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 beenapplied.	•Drill hole spacing is variable at the Steam Engine area, due to different stages ofresource evaluation at the project.
		•The drill hole spacing is sufficient in the central portions of the Steam Engine Lode andthe Eastern Ridge Lode to allow estimation of resourceswhen all the necessaryinformation is compiled. The current exploration phase is not yet completed,and anupdated resource statement will be carried out at the completion of this currentexploration phase.
		•Most intersections reported in this report are weighted composites of smaller sampleintervals, as isstandard industry practice.
Orientation	•Whether the orientation of sampling achieves unbiased	•The orientation of the drill holes is ideal for reporting of the intersection results.
of data inrelation togeologicalstructure	sampling 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 assessed andreported if material.	•No orientation sample bias has been identified at this stage.
Samplesecurity	•The measures taken to ensure sample security.	•Sub-samples selected for assaying were collected in heavy-duty polyweavebags whichwere immediately sealed.
		•These bags were delivered directly to the SGS assay laboratory in Townsville by TerraSearch and Superior Resources employees.
		•Sample security measures within SGS laboratories are considered adequate.

Criteria	JORC Code explanation	Commentary
Audits orreviews	•The results of any audits or reviews of sampling techniquesand data.	•No audits or reviews of the sampling techniques and data have been undertaken todate.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	Commentary
Mineraltenement andland tenurestatus	•Type, reference name/number, location and ownershipincluding agreements or material issues with third parties suchas joint ventures, partnerships, overriding royalties, native titleinterests, 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 licenceto operatein the area.	•The areas reported on lie within Exploration Permit for Minerals 26165 which wasgranted on 30 January 2017. Superior holds much of the surrounding area undergranted exploration permits.•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 SuperiorResources to operate on the tenements.
Explorationdone by otherparties	•Acknowledgment and appraisal of exploration by otherparties.	•All historical drilling reported in this report has been completed and reported inaccordance with their current regulatory regime.•Compilation in digital form and interpretation of the results of that work in digital formhas been completed by the Competent Person.
Geology	•Deposit type, geological setting and style of mineralisation.	•The Steam Engine and Eastern Ridge gold deposits are hosted within a shear zone.•The gold mineralisationoccurs within several north-northeast trending, west-dippingpyritic quartz-muscovite-carbonate schist lodes within metamorphosed intermediateto basic intrusives and metasediments.•Several gold bearing lodes occur in the area,of which the Steam Engine Lode zone isthe most notable.The Eastern Ridge Lode zone is located some 500m east of theSteam Engine Lode zone.

Criteria	JORC Code explanation	Commentary
		vein type. At least some of the shearing has occurredplane of the mineralisation.	The gold mineralisation occurs in lode zones and is thought to be of the mesothermalpostmineralisation, along the
		continuity and a persistent dip to the west.	The important features of the Steam Engine and Eastern Ridge lodes are their
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•If the 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 clearlyexplain why this is the case.	the resultsreported.	Drill hole collar tables with significant intersections are included in the main body ofthe announcement. These tables include information relevant to an understanding of
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 highgraderesults 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 beclearly stated.	intersections.Engine Gold Deposit.No metal equivalent values are reported.	Exploration results are reported as a length weighted average of all the assays of theNo top cutting has been applied as there are a limited number of high-grade goldassays that influence the calculated intersection grades. This is a feature of the Steam
Relationshipbetweenmineralisation widths and	•These relationships are particularly important in the reportingof Exploration Results.•If the geometry of the mineralisation with respect to the drillhole angle is known, its nature should be reported.•If it is not known and only the down hole lengths are reported,		For the Steam Engine lode zone an interpreted westerly dip of approximately 50 to 60°and drill holes which generally dip to the east at around 60° (or less) result in near truewidths at or above 0.87 times the intersection lengths as reported.

Criteria	JORC Code explanation	Commentary
interceptlengths	there should be a clear statement to this effect (e.g. 'downhole length, true width not known').	•For the Eastern Ridge lode zone an interpreted westerly dip of approximately 40 to 50°and drill holes that generally dip to the east at around 60° (or less) result in true widthsat or above 0.9 times the intersection lengths reported.
Diagrams	•Appropriate maps and sections (with scales) and tabulations ofintercepts should be included for any significant discoverybeing reported These should include, but not be limited to aplan view of drill hole collar locations and appropriatesectional views.	•Included.
Balancedreporting	•Where comprehensive reporting of all Exploration Results isnot practicable, representative reporting of both low and highgrades and/or widths should be practiced to avoid misleadingreporting of Exploration Results.	•Reporting of all RCdrill holes with intersections on the Steam Engine and Eastern Ridgelodes at or above 0.4 g/t gold has been included in tables within the report.
Othersubstantiveexplorationdata	•Other exploration data, if meaningful and material, should bereported including (but not limited to): geologicalobservations; geophysical survey results; geochemical surveyresults; bulk samples –size and method of treatment;metallurgical test results; bulk density, groundwater,geotechnical and rock characteristics; potential deleterious orcontaminating substances.	•Preliminary metallurgical test work is to be carried out shortly, using composited RCchip samples. Once assaying of the Diamond core holes is completed, additional workwill also be carried out on density tests, crush tests and further metallurgical test work.
Further work	•The nature and scale of planned further work (e.g. tests forlateral extensions or depth extensions or large-scale step-outdrilling).	•Further drilling and assaying will be planned on the Steam Engine Project at thecompletion of a Scoping Study to prove up further areas within the optimised pit areasgenerated from the study, as well as areas that warrant additional exploration fromthe recent exploration drilling.
•sensitive.	Diagrams clearly highlighting the areas of possible extensions,including the main geological interpretations and futuredrilling areas, provided this information is not commercially	•The first stage of infilldrilling has been designed to infill a significantportion of theMineral Resources. Subsequent to this drilling phase,additional work programs willnow include:
		-Metallurgical studies
		-Geotechnical studies
		-Toll treating negotiations
		-Preliminary mining and rehabilitation planning

Criteria	JORC Code explanation	Commentary
		-Preliminary environmentalstudies
		•Additional holes weredrilled in the recent program to investigate other open-pitableareas, to the north of Steam Engine, to the north of Eastern Ridge, and in the SouthernZone (to the south of Eastern Ridge & Steam Engine).Two additional diamond holeswere alsodrilled down dip of the current Steam Engine Lode mineralisation.Onceresults are available fromall this exploration work it will be fully assessed to plan thenext stage of exploration drilling.