SUPERIOR RESOURCES LIMITED — Capital/Financing Update 2020

May 3, 2020

ASX Announcement

4 May 2020

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Steam Engine Gold Mineral Resource Upgraded 11% Scoping Study Planned Amid Record AUD Gold Prices

HIGHLIGHTS:

• Steam Engine Gold Deposit’s Mineral Resource upgraded by around 11% to total in-situ JORC (2012) Indicated and Inferred Resource of 1.27 million tonnes at 2.3 g/t gold (approximately 94,000 ounces), including:

• Indicated: 370,000 tonnes @ 2.5 g/t gold (approx. 33,000 ounces); and

• Inferred: 900,000 tonnes @ 2.2 g/t gold (approx. 64,000 ounces)

• Mineral resource based on 800m of at least 2.5km known lode strike length (at surface) and down to maximum depths of 170m (Steam Engine Lode) and 70m (Eastern Ridge Lode)

• Gold lodes are open to the north and at depth (Steam Engine Lode) and open in all directions at Eastern Ridge Lode, providing good potential for a significant gold deposit

• Drilling program to upgrade and expand the resource planned to commence after land access finalised

• Accelerated scoping study with a view to early mining development and toll treatment commenced, amid record AUD gold prices

Queensland-based gold and base metals explorer Superior Resources Limited ( ASX:SPQ ) announced today a JORC 2012 mineral resource upgrade for its Steam Engine Gold Deposit, part of the Company’s 100%-owned Greenvale Project.

The mineral resource estimate has been expanded and upgraded to indicated and inferred, resulting in an approximate 11% increase in the in-situ gold mineral resource. The total in-situ resources now stands at:

• 1.27 million tonnes at 2.3 g/t gold (approximately 94,000 ounces) , including:

• Indicated Resources: 370,000 tonnes @ 2.5 g/t gold (approx. 33,000 ounces) ; and

• Inferred Resources: 900,000 tonnes @ 2.2 g/t gold (approx. 64,000 ounces) .

Commenting on the upgraded mineral resource, Superior’s Managing Director, Peter Hwang said:

“ We have long considered Steam Engine to have excellent near-term development potential, given its location and the nature of the resource . Now with the current record high Australian dollar gold prices and positive longterm forecasts for the safe haven metal, this strategy for early development has become compelling .”

“In response, we are accelerating scoping level studies based on an open pit and toll treatment operation as well as a drilling program to further upgrade and expand the resource. The results from the work completed so far are very promising.”

“Efficiency as to time and cost will be key to realising successful early development of any viable resource at Steam Engine. Consistent with our low overhead principles, we are fortunate to have the ability to defray most

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of the significant costs of this process through our senior management’s specialised technical, legal and financial capabilities.”

He added: “ Steam Engine shows all indications to be a quality and potentially sizeable gold deposit, demonstrating good grades and continuity developed within extensive shear zone structures. Together with the positive gold market, this is good news for the Company within a difficult market environment.”

“Significantly, together with its size and development potential, Steam Engine may also be the key to unlocking the world-class potential that is inherent in our greater Greenvale and Nicholson Projects.”

Steam Engine Mineral Resource Upgrade

The spot gold price has climbed around 10 per cent this year, reaching a high of US$1,734 per ounce (A$2,700), a record in Australian dollar terms, amid safe haven buying due to the effects of the COVID-19 pandemic. Analysts have predicted higher prices ahead, with ANZ Research forecasting US$1,900/oz by June 2020 and Bank of America raising its 18-month price target to a record US$3,000/oz.

In light of the current positive gold price predictions, a study of the Steam Engine Gold Deposit was commenced with consideration given to the potential for an accelerated early mining and toll treatment operation. The study focused only on the Steam Engine and Eastern Ridge lode zones and commenced with re-modelling of the Mineral Resource.

Block models have been created to determine the Mineral Resource and applicable confidence categories. The Mineral Resource is being further evaluated for its potential for toll treatment using a pit optimisation based on aa AUD$2,000 gold price. The pit optimisation results will be released as part of a Scoping Study.

The Company has determined that the results of the work completed to date warrant advancing the project to a Scoping Study to determine the potential viability for toll treatment of the resource.

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Figure 1. Location of the Steam Engine Gold Deposit and other prospects within the Greenvale Project.

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Overview of the Steam Engine Deposit

The Steam Engine Gold Deposit is located within EPM26165, approximately 210km west-northwest of Townsville in Northeast Queensland, Australia (Figure 1).

Gold mineralisation is developed within several north-northeast trending, west-dipping pyritic quartzmuscovite-carbonate schist lodes within metamorphosed intermediate to basic intrusives and metasediments. Several gold-bearing lodes occur in the area, with the Steam Engine Lode being the most notable from the relatively limited exploration work on the project. The Eastern Ridge lode is located approximately 500 metres east of the Steam Engine lode. A further zone of gold mineralisation is located between and to the south of the Steam Engine and Eastern Ridge lodes (Figure 2).

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Figure 2. Steam Engine Gold Deposit – Geology Plan, showing gold lodes (in Red) and existing and planned drill holes.

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Total drilling carried out on the Steam Engine and Eastern Ridge lode zones totals 87 holes for 6,588 metres of drilling. The majority of this drilling is from previous drilling programs carried out during the 1980’s and 1990’s by Noranda and more recent drilling by Beacon Minerals in 2007. During 2017, Superior completed 6 reversecirculation (RC) drill holes into the Steam Engine and Eastern Ridge lode zones.

Mineral Resource Statement

A revision of the Mineral Resources at the Steam Engine project has resulted in a JORC (2012) Indicated and Inferred Mineral Resource Estimate for the Steam Engine Gold Deposit of 1.27 million tonnes at 2.3 g/t gold , comprising:

• Indicated Resource of 370,000 tonnes @ 2.5 g/t gold ; and

• Inferred Resource of 900,000 tonnes @ 2.2 g/t gold .

A breakdown of this resource is shown in Table 1.

Table 1. Steam Engine Gold Deposit Resource Table

Classification	Cut-off Grade	Tonnes	Grade (g/t)	Gold (ounces)
Steam Engine (Main Zone)
Indicated	0.5	370,000	2.5	30,000
Inferred	0.5	420,000	2.3	31,000
SUBTOTAL		790,000	2.4	61,000
Steam Engine (Footwall Zone)
Inferred	0.5	210,000	1.6	11,000
Eastern Ridge
Inferred	0.5	270,000	2.7	23,000
TOTALS FOR STEAM ENGINE AND EASTERN		RIDGE ZONES
Indicated		370,000	2.5	30,000
Inferred		900,000	2.2	64,000
TOTAL RESOURCES		1,270,000	2.3	94,000

A plan of the Mineral Resource wireframe and relative locations is shown in Figure 3 along with a 3D block model and cross sections in Figures 4 to 8.

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Figure 3. Plan View of Steam Engine and Eastern Ridge lode wireframes. Cross section locations are also indicated.

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Figure 4. 3D view of Steam Engine lode resource block model (open to the north and at depth).

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Figure 5. Section 10400N, open at depth (refer Figure 3 for location).
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Figure 6. Section 10300N, open at depth (refer Figure 3 for location).

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Figure 7. Section 10200N, open at depth (refer Figure 3 for location).
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Figure 8. Section 9900N, open at depth (refer Figure 3 for location).

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Summary of Resource Estimate and Reporting Criteria

(See also Appendix 2: JORC Code, 2012 Edition – Table 1)

Geology and Geological Interpretation

At the Steam Engine Gold Deposit, the gold mineralisation occurs within several north-northeast trending, westdipping pyritic quartz-muscovite-carbonate schist lodes within metamorphosed intermediate to basic intrusives and metasediments (Figure 2).

Several gold bearing lodes occur in the area of which the Steam Engine Lode is the most notable. The Steam Engine lode has a surface strike length of approximately 500 metres. The Eastern Ridge lode is approximately 500 metres eastwards of the Steam Engine lode. The Eastern Ridge lode has a surface strike length of approximately 1,400 metres. The lodes are typically interpreted as being of the mesothermal vein type.

The gold bearing lode zones are located within a shear zone and show strong continuity and a persistent dip to the west (the Steam Engine lode typically dips around 50° to 60° to the west). The Eastern Ridge lode typically dips at about 40° to 50° to the west.

Drilling

The drilling data for the Steam Engine and Eastern Ridge lode zones includes 15 recently drilled reverse circulation (RC) drill holes carried out by Superior (6 holes during 2017) and Beacon Minerals (9 holes during 2007), together with historic RC and diamond drill holes done by Noranda Australia (1980’s – 1990’s) (Figures 9 and 10). Drilling carried out on the Steam Engine and Eastern Ridge lode zones to date totals 87 drill holes for 6,588 metres of drilling.

Drilling at the Steam Engine lode zone comprises 51 RC drill holes for 3,149 metres of drilling as well as 12 diamond core drill holes for 1,914 metres of drilling.

Drilling at the Eastern Ridge lode zone comprises 24 RC drill holes for 1,525 metres of drilling.

Sampling and Assaying

The sampling used in the resource estimation was derived from both RC and diamond core drilling. The RC chip samples were split prior to assaying. The diamond core was halved to produce an assay sample. Sample sizes of predominantly 1 metre in length have been used over the most significant areas of the gold mineralisation. (Note: downhole assay data for six of Noranda’s drill holes (LSRC039, 040, 041, 045, 046 and 047) from the Steam Engine lode zone are not recoverable. However, composite gold intersections for these holes have been recovered. No significant change to the resource estimate in this portion of the resource is likely to result from this very limited amount of data loss.)

All assays have been conducted by commercial laboratories, using industry standard methods available at the time of drilling.

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Figure 9. Steam Engine Lode – Gold bearing lode outcrop and drill holes

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Figure 10. Eastern Ridge Lode – Gold bearing lode outcrop and drill holes

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Drill Hole Locations

Noranda used a local grid control for drilling and completed accurate surveying of the drill hole collars on this grid with RLs being surveyed to a local height datum. Down-hole surveying of most of the diamond drill holes was completed by Noranda, but RC holes were not surveyed down-hole.

Superior surveyed most of the Noranda drill hole collars using a DGPS system. This surveying validates the accuracy of Noranda’s reported collar locations and provides a reasonably accurate translation of the old Noranda grid coordinates to MGA Z55 as follows:

Common Point: 10,000E; 10,000N = 262,773.07E; 7,895,414.27N

Local Grid North: 17.95[0] MGA.

DGPS Elevation + 26.867m = Noranda Local Datum.

Data Compilation and Validation

The resource estimate is based on data compilations carried out in previous resource estimations conducted by competent persons working for Superior Resources Limited.

Data validation for this Mineral Resource estimate was carried out by the inspection of the previous reports dating back to the earliest phases of drilling. Further data validation processes were also carried out in mining software to make the data ready for use. No material inconsistencies were identified, and the data was deemed satisfactory for Mineral Resource estimation purposes.

Sectional Interpretations

Where available, previous interpretations were used as a guide to the sectional interpretations used for the resource estimate, together with the relevant drill hole geology and surface geology information. Sectional interpretations where made of all zones of mineralisation displaying good continuity and sufficient grade, which included the main Steam Engine Zone mineralisation, a portion of the Steam Engine footwall zone and a portion of the Eastern Ridge Zone mineralisation.

A general intersectional cut-off of 1 g/t was used. The gold intersections were generally calculated using an individual assay cut-off of around 0.7 g/t gold. Intersections of 1 g/t gold and above are considered to have reasonable prospects of eventual economic extraction. The other major economic factor taken into account was the width of the gold intersection. Zones of greater width were generally considered to hold better potential for extraction at depth. However geological factors, internal waste intervals and a minimum width of the mineralised zone were also taken into account and used to develop potential mineable situations and practical mineable widths for the Mineral Resource. Some intersections of less than 1 g/t were also included where necessary for the purposes of mineralisation continuity.

Plans showing the locations of recent and historic drilling are shown in Figures 9 and 10 together with a cross section though both the Steam Engine (Figure 11) and Eastern Ridge lodes (Figure 12).

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Figure 11. Drill Hole Section 10350N – Showing gold intersections on the Steam Engine lode

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Figure 12. Drill Hole Section 10050N – Showing gold intersections on the Eastern Ridge lode

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Wireframing of the Resource Mineralisation

The sectional interpretations where used to form 3D wireframe models of the gold mineralisation (refer Figure 13 showing the Steam Engine lode wireframe). The wireframing process involves a 3D interpretation of the way in which the sectional outlines are joined together. This process is open to some level of interpretation. Where more than one simple interpretation can be made, it will only significantly impact on the resource where another interpretation would significantly change the tonnage of the resource. With increased density of drilling this uncertainty is greatly reduced.

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Figure 13. 3D view of Steam Engine lode wireframe

Block Modelling

Inverse distance weighted (IDW) block models were used to make the Mineral Resource estimates of the wireframed gold mineralisation. The block models consisted of 5x5x5 block models. An inverse power of 3 was used to more closely map the grade distributions in 3D (somewhat similar to contouring in 3D).

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The resource wireframes were then used to allocate the proportions of the blocks that lie within the wireframed zones, to allow accurate estimation of the tonnes and grade. As part of the cross checking, inspections of the created block model against the sectional and long section view reflected a close fit with the grade fluctuations in the drilling. Checks were then also made between the wireframe volumes and the block model calculated volumes to ensure that they matched.

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Figure 14. 3D View of Steam Engine lode block model showing the Indicated and Inferred zones

Resource Classification

The Mineral Resource classification is based on the confidence in the geological model, the continuity of the mineralisation zones, and the drilling density. The block models were then further defined to estimate the Mineral Resources by the respective classifications. No area was found to justify a Measured classification, however some of the better drilled portions of the Steam Engine lode were classified as Indicated Resource (refer Figure 14), with much of the Mineral Resource at this stage classified as Inferred Resource.

Some sections of the Mineral Resource that in previous estimation were classified as Inferred Resource, have been re-classified into Indicated Resource, where the drilling densities are sufficient to do so. This has been done on the basis that the numerous phases of Noranda’s previous drilling together with more recent drilling by Beacon Minerals and Superior. Superior’s drill holes have reconfirmed the grades of the previous drilling phases sufficiently to indicate a significant degree of confidence in the grades reported.

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Next Steps

The Superior team will be accelerating the project to a Scoping Study with a view to determining whether a feasibility level of study is warranted.

A first-stage infill drilling program is proposed for the Stream Engine project to upgrade most of the gold lode zones within optimised pit models to Measured and Indicated resources (refer Figure 2 and the locations of the proposed drill holes). To minimize costs, RC drilling is proposed for most of the holes. Several diamond core holes will be drilled to enable metallurgical, structural and other geological studies to be undertaken. This would be subsequent to a positive outcome from the Scoping Study as mentioned above.

In addition, the following work programs are planned:

• Pit optimisation studies;

• Metallurgical studies;

• Geotechnical studies;

• Toll treating negotiations;

• Financial modelling;

• Preliminary mining and rehabilitation planning; and

• Preliminary environmental studies.

Subject to results, this work may be followed by a Pre-Feasibility study, together with a Production Target for any remaining Mineral Resources that may require further infill drilling.

Mr Hwang added: “ Steam Engine presents a pathway to near-term cashflow generation for Superior, with gold in demand from investors due to the current global economic downturn. Together with our other projects including the highly prospective Nicholson, Bottletree and Big Mag projects, we are well placed to generate increased value for shareholders as we unlock the world-class potential of our assets.”

For more information:

Peter Hwang Managing Director Tel: +61 7 3847 2887 www.superiorresources.com.au manager@superiorresources.com.au

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About Superior Resources

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, one of the world’s richest mineral producing regions and is focused on multiple Tier1 equivalent exploration targets.

Reporting of Mineral Resources: Information contained in this report that relates to Mineral Resources 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.

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 forward-looking 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.

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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	Commentary
Sampling	• Nature and quality of sampling (e.g. cut channels, random	Current Sampling
techniques	chips, or specific specialised industry standard measurement	•	Samples are obtained from reverse circulation (RC) drilling.
	tools appropriate to the minerals under investigation, such as
	down hole gamma sondes, or handheld XRF instruments, etc.).	•	All samples are collected as drilled via a riffle splitter attached to the drill rig cyclone.
	These examples should not be taken as limiting the broad meaning of sampling.	•	Drill holes are sampled and collected as 1m riffle split samples. All samples were passed through a cyclone and then through a 7/8th to 1/8th splitter. Bulk 1m samples
	• Include reference to measures taken to ensure sample		were collected as the 7/8th split, whereas the 1/8th split was collected as an analytical
	representivity and the appropriate calibration of any measurement tools or systems used.		sample over 2m. Analytical sample size was in the order of 2.5kg to 3kg.
	• Aspects of the determination of mineralisation that are	•	All RC holes were drilled using a standard face sampling hammer with bit size of
	Material to the Public Report.		114mm (Four & half inch). The drill bit sizes used in the drilling were consistent in size
	• In cases where ‘industry standard’ work has been done this		and are considered appropriate to indicate the degree and extent of mineralisation.
	would be relatively simple (e.g. ‘reverse circulation drilling was	•	Sample intervals that lack metalliferous anomalism are not reported are not
	used to obtain 1 m samples from which 3 kg was pulverised to		considered to be material.
	produce a 30 g charge for fire assay’). In other cases more
	explanation may be required, such as where there is coarse	•	The magnetic susceptibility of all samples was measured in the field.
	gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules)	•	Portable XRF analyses were systematically recorded in controlled environment at Terra Search offices in Townsville.
	may warrant disclosure of detailed information.
		•	1m representative samples of intervals with visible mineralisation were assayed for
			gold at ALS laboratories in Townsville. 2m representative samples of intervals without
			visible mineralisation, derived from compositing two samples from consecutive 1m
			intervals, were also assayed for gold at ALS laboratories in Townsville. Where gold
			mineralisation was detected in the 2m composite samples, 1m samples were
			submitted for further assaying.

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Criteria	JORC Code explanation	Commentary	Commentary
		•	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 be
			of industry standard procedure.
		Historical Sampling
		•	Information relating to historical results relies on data contained in reports submitted
			to the Queensland Department of Natural Resources and Mines as part of the
			Company Report System attaching to the grant of Exploration Permits.
		•	The sampling techniques, where reported, used standard industry approaches. These
			include: 1. splitting off a sample of material delivered to the top of the hole during RC
			drilling to produce a sample for assay accompanied by geological logging of the
			sample. 2. Halving of drill core from diamond drilling to produce an assay sample
			accompanied by geological logging of the core.
		•	Assaying of samples was completed by commercial laboratory methods that were
			appropriate at the time the samples were collected. Sample intervals of 4m were
			commonly used for initial determination of the presence of gold by a geochemical
			method followed by more detailed sampling of mineralised intervals at usually 1m
			intervals using a more precise method.
		•	Whilst it is not possible to determine the reliability of historical assay results, no issues
			arose during compilation and interpretation of the results that would suggest that the
			assay results were not reasonable.
Drilling	• Drill type (e.g. core, reverse circulation, open-hole hammer,	Current Drilling
techniques	rotary air blast, auger, Bangka, sonic, etc.) and details (e.g.	•	Drilling from surface was performed using standard RC drilling techniques.
	core diameter, triple or standard tube, depth of diamond tails,
	face-sampling bit or other type, whether core is oriented and if	•	Drilling was conducted by Kelly Drilling using a Schramm 450WS with a 900cfm/350psi
	so, by what method, etc.).		compressor and 700 psi on-board booster.
		•	All RC holes were drilled using a standard face sampling hammer with bit size of
			114mm (Four & half inch).
		•	All holes were surveyed using a Reflex Gyro north-seeking gyroscopic instrument to

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Criteria	JORC Code explanation	Commentary	Commentary
			obtain accurate down-hole directional data.
		Historical Drilling
		•	Reverse Circulation (RC) and Diamond Drilling (DD) are the only drill types relied on in
			this report.
Drill sample	• Method of recording and assessing core and chip sample	Current Drilling
recovery	recoveries and results assessed.	•	Sample recovery was performed and monitored by Terra Search contractor and
	• Measures taken to maximise sample recovery and ensure		Superior Resources’ representatives.
	representative nature of the samples.
	• Whether a relationship exists between sample recovery and	•	RC recovery as well as degree of cross-sample contamination were logged on a metre
	grade and whether sample bias may have occurred due to		basis. Overall recoveries were excellent. RC samples were all dry.
	preferential loss/gain of fine/coarse material.	•	The volume of sample collected for assay is considered to be representative of each
			1m interval.
		•	RC drill rod string delivered the sample to the rig-mounted cyclone which is sealed at
			the completion of each 1m interval. The riffle splitter is cleaned with compressed air at
			the end of each 1m interval and at the completion of each drill hole.
		•	There is no apparent relationship between sample recovery and grade of
			mineralisation.
		Historical Drilling
		•	Recoveries for RC drill holes were not recorded.
		•	Recoveries for diamond drill core samples were recorded for most holes drilled at
			Steam Engine. These recoveries were usually of the order of 100% indicating that
			recoveries should not be an issue if the results are used for estimating resources.
		•	No relationship is evident between sample recovery and grade.

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Criteria	JORC Code explanation	Commentary	Commentary
Logging	• Whether core and chip samples have been geologically and	Current Drilling
	geotechnically logged to a level of detail to support	•	Geological logging was conducted during the drilling of each hole by a Terra Search
	appropriate Mineral Resource estimation, mining studies and		geologist having sufficient qualification and experience for the mineralisation style
	metallurgical studies.		expected and observed at each hole.
	• Whether logging is qualitative or quantitative in nature. Core
	(or costean, channel, etc.) photography.	•	Geological logging data entered via a well-developed logging system designed to
	• The total length and percentage of the relevant intersections		capture descriptive geology, coded geology and quantifiable geology. All logs were
	logged.		checked for consistency by the Terra Search Principal Geologist. Data captured
			through Excel spread sheets and Explorer 3 Relational Data Base Management System.
		•	The logging of RC chips is both qualitative and quantitative. Alteration, weathering
			and mineralisation data contain both qualitative and quantitative fields.
		•	All holes were logged in their entirety at 1m intervals. All logging data is digitally
			compiled and 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
		•	Geological logging 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 as
			mentioned in the report. The available logging appears to be of a standard to support
			resource estimation. No geotechnical logs have been reported and it is assumed that
			these were not done. Diamond drill hole logs usually include structural data that has
			been compiled in digital form.
		•	The logging is generally of a qualitative nature. No core or chip photography is
			available in the reports.
		•	For the logs available logging of all material has been completed.
Sub-sampling	• If core, whether cut or sawn and whether quarter, half or all	Current Sampling
techniques and sample	core taken. • If non-core, whether riffled, tube sampled, rotary split, etc.	•	The sample collection methodology is considered appropriate for RC drilling and was conducted in accordance with best industry practice.
preparation	and whether sampled wet or dry.
	• For all sample types, the nature, quality and appropriateness	•	Split 1m samples are regarded as reliable and representative.

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Criteria	JORC Code explanation	Commentary	Commentary
	of the sample preparation technique.	•	RC samples are split with a riffle splitter at 1m intervals as drilled.
	• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.	•	Samples were collected as dry samples.
	• Measures taken to ensure that the sampling is representative	•	Quality Assurance (QA)/Quality Control (QC) protocols were instigated such that they
	of the in situ material collected, including for instance results		conform to mineral industry standards and are compliant with the JORC code.
	for field duplicate/second-half sampling. • Whether sample sizes are appropriate to the grain size of the material being sampled.	•	Terra Search’s input into the (QA) process with respect to chemical analysis of mineral exploration samples includes the addition of blanks, standards and duplicates to each batch so that checks can be done after they are analysed. As part of the QC process,
			Terra Search checks the resultant assay data against known or previously determined
			assays to determine the quality of the analysed batch of samples. An assessment is
			made on the data and a report on the quality of the data is compiled.
		•	Terra Search quality control included determinations of duplicate samples every 50
			samples or so to check for representative samples. There was a conscious effort on
			behalf of the samplers to ensure consistent weights for each sample. Comparison of
			assays of duplicates shows good reproducibility of results.
		•	The above techniques are considered to be of a high quality and appropriate for the
			nature of mineralisation anticipated. The 2-3kg sample size is appropriate for the rock
			being sampled. The sample sizes are considered to be appropriate to represent the
			style of the mineralisation, the thickness and consistency of the intersections.
		Historical Sampling
		•	The diamond drill core has been halved, as is standard practice for most explorers.
		•	Details of the approach taken for sampling of RC drill holes are not available but it is
			expected to be of industry standard for the time.
Quality of	• The nature, quality and appropriateness of the assaying and	Current Sampling
assay data and laboratory	laboratory procedures used and whether the technique is considered partial or total.	•	All samples were submitted to ALS laboratories in Townsville for gold and multi- element analysis.
tests	• For geophysical tools, spectrometers, handheld XRF
	instruments, etc., the parameters used in determining the	•	Samples were crushed, pulverised to ensure a minimum of 85% pulp material passing
	analysis including instrument make and model, reading times,		through 75 microns, then analysed for gold by fire assay method Au-AA26 using a 50-
	calibrations factors applied and their derivation, etc.		gram sample.
	• Nature of quality control procedures adopted (e.g. standards,	•	A sub-sample of each was also subject to multi-element analysis using aqua regia

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Criteria	JORC Code explanation	Commentary	Commentary
	blanks, duplicates, external laboratory checks) and whether		digest and ICP emission spectroscopy technique for the following elements: Ag, As, Ba,
	acceptable levels of accuracy (i.e. lack of bias) and precision		Bi, Ca, Cd, Co, Cu, Fe, Mg, Mn, Mo, Ni, P, Pb, S, Sb, Zn (ALS code ME-ICP41).
	have been established.	•	The primary assay method used is designed to measure both the total gold in the
			sample as per classic fire assay, as well as the total amount of economic metals tied up
			in sulphides and oxides such as Cu, Pb, Zn, Ag, As, Mo, Bi as per aqua regia digest ICP
			finish.
		•	Some major elements which are present in silicates, such as K, Ca, Fe, Ti, Al and Mg are
			not liberated by aqua regia digest. In this sense, the aqua regia digest is a partial
			analytical technique for elements locked up in silicates.
		•	Magnetic susceptibility measurements utilising Exploranium KT10 instrument, zeroed
			between each measurement.
		•	Certified geochemical standards and blank samples were inserted into the assay
			sample sequence. Laboratory assay results for these quality control samples are within
			5% of accepted values.
		Historical Sampling
		•	As reported above, assaying of samples was completed by commercial laboratory
			methods that were appropriate at the time the samples were collected. Sample
			intervals of 4m were commonly used for initial determination of the presence of gold
			by a geochemical method followed by more detailed sampling of mineralised intervals
			at usually 1m intervals with assaying for gold by a more precise method.
		•	Assay data submitted with the reports include some duplicate assaying. It is unknown
			in detail what quality control procedures were adopted.
Verification of	• The verification of significant intersections by either	Current Sampling
sampling and	independent or alternative company personnel.	•	Significant intersections have been verified by at least two Terra Search geologists
assaying	• The use of twinned holes.		against representative drill chips collected and the drill logs.
	• Documentation of primary data, data entry procedures, data
	verification, data storage (physical and electronic) protocols.	•	No holes were twinned.
	• Discuss any adjustment to assay data.	•	No adjustments to assay data were undertaken.
		•	All drill hole logging and sampling data continue to be uploaded and validated by Terra
			Search and Superior staff. Validation is checked bycomparingassayresults with

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Criteria	JORC Code explanation	Commentary	Commentary
			logged mineralogy e.g. percent of metallic sulphides minerals in comparison to metal
			assays.
		•	Data is collected by qualified geologists and experienced field assistants and entered
			into excel spreadsheets.
		•	Data is imported into Microsoft Access tables from the Excel spreadsheets with
			validation checks set on different fields. Data is then checked thoroughly by the
			Operations Geologist for errors. Accuracy of drilling data is then validated when
			imported into MapInfo.
		•	Data is stored on a server in the Company’s head office, with regular backups and
			archival copies of the database made.
		•	No adjustments are made to the data. Data is imported into the database in its
			original raw format.
		Historical Sampling
		•	Limited more recent drilling by Beacon Minerals Limited confirms the drill gold
			intersections obtained by Noranda Australia Limited as shown in Figure 7. Other drill
			hole results reported by Beacon support the order of gold grades at both the Steam
			Engine and Eastern Ridge lodes.
		•	No twinned holes have been drilled by Superior Resources at this time.
		•	It is evident that most of the historical drill hole data was captured on paper and
			stored on paper. The compilation of that data in digital form has been completed by
			the competent person with plotting of the data on both plans and sections also held in
			digital form.
		•	No adjustments have been made to historical sample assay data as there was no
			apparent reason for such adjustment.
Location of	• Accuracy and quality of surveys used to locate drill holes	Current Drilling
data points	(collar and down-hole surveys), trenches, mine workings and	•	Drill hole collars have been recorded in the field using hand held GPS with three metre
	other locations used in Mineral Resource estimation.		or better accuracy.
	• Specification of the grid system used.
	• Quality and adequacy of topographic control.	•	Current drill hole collar locations and topographic RL control were further defined
			using a Trimble Differential GPS (DGPS). Location accuracy is in the order of 0.15m X-Y

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Criteria	JORC Code explanation	Commentary	Commentary
			and 0.3m in the Z direction.
		•	Down hole surveys were conducted on all holes using a Reflex GYRO with surveys
			taken inside the RC rods and recorded every 5m. The instrument measures to within
			1/100 degree of inclination and magnetic azimuth.
		•	The area is located within UTM Zone 55, GDA94 datum.
		Historical Drilling
		•	Noranda Australia controlled exploration of the Steam Engine area using a local grid.
			As the property advanced a surveyor was used to provide a more accurate local grid
			control with a local height datum being implemented. Data has been compiled using
			the local grid coordinates. Drill holes completed by Beacon Minerals Limited are
			reported using handheld GPS collar coordinates with a likely accuracy of about ± 5m.
			An accurate translation from GPS coordinates to local grid coordinates has been used
			to convert the Beacon drill hole data to local coordinates. Many of the drill hole collars
			are still evident at the prospect allowing validation of the drill hole locational data by
			DGPS before being used for resource estimation work.
		•	The area lies within UTM Zone 55, GDA94 datum.
Data spacing	• Data spacing for reporting of Exploration Results.	•	Drill hole spacing is variable but mainly at 25m and 50m section lines at the Steam
and	• Whether the data spacing and distribution is sufficient to		Engine area; and 50m and 100m lines at the Eastern Ridge area.
distribution	establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. • Whether sample compositing has been applied.	•	The drill hole spacing is sufficient together with the strong continuity of the Steam Engine and Eastern Ridge lodes to allow Mineral Resource estimation for significant portions of these lodes. Classifications are restricted to inferred, except for the central portions of the Steam engine lode where drilling density is highest.
		•	Most intersections reported in this report are weighted composites of smaller sample
			intervals as is standard practice.
Orientation of	• Whether the orientation of sampling achieves unbiased	•	The orientation of the drill holes is ideal for reporting of results and estimation of
data in	sampling of possible structures and the extent to which this is		mineral resources.
relation to geological	known, considering the deposit type. • If the relationship between the drilling orientation and the	•	No orientation sample bias has been identified at this stage.
structure	orientation of key mineralised structures is considered to have
	introduced a sampling bias, this should be assessed and

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Criteria	JORC Code explanation	Commentary	Commentary
	reported if material.
Sample	• The measures taken to ensure sample security.	•	Chain of custody was managed by Terra Search Pty Ltd
security		•	Samples were transferred by them to ALS.
		•	Sample security measures within ALS laboratories are considered adequate.
Audits or	• The results of any audits or reviews of sampling techniques	•	No audits or reviews of the sampling techniques and data have been undertaken to
reviews	and data.		date.

Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	Commentary	Commentary
Mineral	• Type, reference name/number, location and ownership	•	The areas reported lie within Exploration Permit for Minerals 26165 and held 100% by
tenement and	including agreements or material issues with third parties such		Superior Resources.
land tenure status	as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.	•	Superior Resources holds much of the surrounding area under granted exploration permits.
	• The security of the tenure held at the time of reporting along	•	Superior Resources has agreements or other appropriate arrangements in place with
	with any known impediments to obtaining a licence to operate		landholders and native title parties with respect to work in the area.
	in the area.	•	No regulatory impediments affect the relevant tenements or the ability of Superior
			Resources to operate on the tenements.
Exploration	• Acknowledgment and appraisal of exploration by other	•	All of the historical drilling reported in this report has been completed and reported in
done by other	parties.		accordance with the current regulatory regime.
parties		•	Compilation in digital form and interpretation of the results of that work in digital form
			has been completed a Competent Person for Superior Resources.
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 mineralisation occurs within a number of north-northeast trending, west-
			dipping pyriticquartz-muscovite-carbonate schist lodes within metamorphosed

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Criteria	JORC Code explanation	Commentary	Commentary
			intermediate to basic intrusives and metasediments.
		•	A number of gold bearing lodes occur in the area of which the Steam Engine Lode zone
			is the most notable. The Eastern Ridge Lode zone is located some 500m east of the
			Steam Engine Lode zone.
		•	The gold mineralisation occurs in lode zones and is thought to be of the mesothermal
			vein type.
		•	The important features of the Steam Engine and Eastern Ridge lodes are their
			continuity and a persistent dip to the west.
Drill hole	• A summary of all information material to the understanding of	•	Drill Holes collar tables with significant intersections are included in previous ASX
Information	the exploration results including a tabulation of the following		announcements, including the announcement dated 14 August 2017.
	information for all Material drill holes:
	o easting and northing of the drill hole collar
	o elevation or RL (Reduced Level) of the drill hole collar
	o dip and azimuth of the hole
	o down hole length and interception depth
	o hole length.
	• If the exclusion of this information is justified on the basis that
	the information is not Material and this exclusion does not
	detract from the understanding of the report, the Competent
	Person should clearly explain why this is the case.
Data	• In reporting Exploration Results, weighting averaging	•	Exploration results are reported as a length weighted average of all the assays of the
aggregation	techniques, maximum and/or minimum grade truncations (e.g.		hole intersections.
methods	cutting of high grades) and cut-off grades are usually Material and should be stated. • Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the	•	No top cutting has been applied, as there are a limited number of high-grade gold assays that influence the calculated intersection grades. This is a feature of the Steam Engine Gold Deposit.
	procedure used for such aggregation should be stated and	•	No metal equivalent values are reported.
	some typical examples of such aggregations should be shown
	in detail.
	• The assumptions used for any reporting of metal equivalent
	values should be clearly stated.

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Criteria	JORC Code explanation	Commentary	Commentary
Relationship	• These relationships are particularly important in the reporting	•	For the Steam Engine lode zone an interpreted westerly dip of approximately 50 to 60°
between	of Exploration Results.		and drill holes which generally dip to the east at around 60° (or less) result in true
mineralisation	• If the geometry of the mineralisation with respect to the drill		widths at or above 0.87 times the intersection lengths as reported.
widths and intercept lengths	hole angle is known, its nature should be reported. • If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (e.g. ‘down _hole 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 widths at or above 0.9 times the intersection lengths reported.
Diagrams	• Appropriate maps and sections (with scales) and tabulations of	•	Included.
	intercepts should be included for any significant discovery
	being reported These should include, but not be limited to a
	plan view of drill hole collar locations and appropriate
	sectional views.
Balanced	• Where comprehensive reporting of all Exploration Results is	•	Drill Holes collar tables with significant intersections are included in previous ASX
reporting	not practicable, representative reporting of both low and high		announcements, including the announcement dated 14 August 2017.
	grades and/or widths should be practiced to avoid misleading
	reporting of Exploration Results.
Other	• Other exploration data, if meaningful and material, should be	•	An interpreted geological map of the Steam Engine area is included in the report. The
substantive	reported including (but not limited to): geological		maps included also show drill hole collars and traces. The critical geological
exploration	observations; geophysical survey results; geochemical survey		information is that the gold mineralised lodes are hosted in a shear zone as reported.
data	results; bulk samples – size and method of treatment;
	metallurgical test results; bulk density, groundwater,
	geotechnical and rock characteristics; potential deleterious or
	contaminating substances.
Further work	• The nature and scale of planned further work (e.g. tests for	•	An infill drilling program is proposed for the Stream Engine project to prove up most of
	lateral extensions or depth extensions or large-scale step-out		the gold lode zone areas to Measured and Indicated resources (refer Figure 2, showing
	drilling).		the locations of the proposed drill holes). It is envisaged that much of the drilling
	• Diagrams clearly highlighting the areas of possible extensions,		would be Reverse Circulation drilling to help reduce costs, but a number of holes
	including the main geological interpretations and future		would also need to be Diamond Core drill holes, to allow for additional metallurgical,
	drilling areas, provided this information is not commercially		structural, and other geological studies.
	sensitive.	•	A proposed first stage of this drilling is likely to infill a significant portion of the Mineral
			Resources. Other than the drilling program at least the following additional work
			programs would be included:
			• Metallurgical studies

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Criteria	JORC Code explanation	Commentary	Commentary
		•	Geotechnical studies
		•	Toll treating negotiations
		•	Preliminary mining and rehabilitation planning
		•	Preliminary environmental studies

Section 3 Estimation and Reporting of Mineral Resources

(Criteria listed in section 1, and where relevant in section 2, also apply to this section.)

Criteria	JORC Code explanation	Commentary	Commentary
Database	• Measures taken to ensure that data has not been corrupted	•	This report is based on data compilations carried out in previous resource estimations
integrity	by, for example, transcription or keying errors, between its		conducted by competent persons working for Superior Resources.
	initial collection and its use for Mineral Resource estimation purposes. • Data validation procedures used.	•	Further data validation for this report was carried out by inspection of previous reports dating back to the earliest phases of drilling.
		•	Data validation processes were also carried out using mining software to make the
			data ready for use.
Site visits	• Comment on any site visits undertaken by the Competent	•	Two site visits by a competent person to confirm drill hole locations and to undertake
	Person and the outcome of those visits.		geological and mineralisation interpretations, and to plan for additional drill holes.
	• If no site visits have been undertaken indicate why this is the
	case.
Geological	• Confidence in (or conversely, the uncertainty of) the geological	•	A higher level of confidence exists for the Steam Engine main lode zone, than for the
interpretation	interpretation of the mineral deposit.		Steam Engine footwall lode zone (due to patchy grades) and for the Eastern Ridge lode
	• Nature of the data used and of any assumptions made.		zone (due to less drilling).
	• The effect, if any, of alternative interpretations on Mineral Resource estimation.	•	The geological Interpretations agree with the previous interpretation by Noranda.
	• The use of geology in guiding and controlling Mineral Resource	•	The data includes drill hole data and surface exposures, but there are no current
	estimation.		underground ore exposures.
	• The factors affecting continuity both of grade and geology.	•	No alternative interpretations are evident or have been considered.
		•	Lode geology is fundamental to the interpretations.
		•	The lack of underground exposures and the soil cover in the area mayobscure

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Criteria	JORC Code explanation	Commentary	Commentary
			crosscutting faults, but significant displacement on these mineralisation zones is not
			apparent in the sectional data.
Dimensions	• The extent and variability of the Mineral Resource expressed	•	These are apparent on the various sections included with this report.
	as length (along strike or otherwise), plan width, and depth
	below surface to the upper and lower limits of the Mineral.
Estimation	• The nature and appropriateness of the estimation technique(s)	•	Further detail on the resource estimation process is included earlier in this
and modelling	applied and key assumptions, including treatment of extreme		announcement.
techniques	grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used. • The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource	•	Inverse distance block modelling was used for the resource estimations. When properly constrained by wireframing, block modelling is a good method for the estimation of this kind of resource. An inverse power of 3 was used to more closely map the grade distributions present in vein zones. An appropriate search radius was used for individual lode zones, based on the average drilling density.
	estimate takes appropriate account of such data.	•	Check estimates were carried out using global estimates from the wireframes. These
	• The assumptions made regarding recovery of by-products.		gave similar tonnages to the global block model estimates. While the wireframe
	• Estimation of deleterious elements or other non-grade		estimate uses weighting of the intersectional grades it does not use any weighting in
	variables of economic significance (eg sulphur for acid mine		relation to distance from those intersections. However, as a comparative method it
	drainage characterisation).		shows that the tonnages are correct and even gave relatively close gold grade values
	• In the case of block model interpolation, the block size in		to the block model.
	relation to the average sample spacing and the search employed. • Any assumptions behind modelling of selective mining units. • Any assumptions about correlation between variables.	•	Checks against previous resource estimations also showed similar tonnages and grades over the Steam Engine portion of the resource that has been previously estimated by Superior Resources.
	• Description of how the geological interpretation was used to	•	The estimate is for gold only. No by products are considered likely.
	control the resource estimates. • Discussion of basis for using or not using grade cutting or	•	Incomplete assay data from early drilling does not allow estimation of other elements. Some arsenic occurs within the gold mineralisation where it has been assayed.
	capping.
	• The process of validation, the checking process used, the	•	There are no extreme grade variations evident in the data.
	comparison of model data to drill hole data, and use of reconciliation data if available.	•	Interpolation for inferred resources has allowed for up to approximately 100 metres along strike between drill holes in some cases, if it conforms to the current geological
			interpretation.
		•	Extrapolation for inferred resources (outside of the drilling extents) has allowed for up
			to approximately60 metres of extension, predominantlyon dip,where holes either

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Criteria	JORC Code explanation	Commentary	Commentary
			side along strike have indicated the continuation of the mineralisation. However,
			extension down dip was moderated by the width of the mineralisation, and if that
			mineralisation was considered wide enough to be feasible for future extraction.
		•	No intersection data below 1m true thickness was used in the estimation.
		•	No correlation between variables.
		•	The lode geology was a fundamental element of the modelling and controlled the
			modelling process.
		•	No grade cutting was considered necessary.
		•	Validation was carried out by checking each stage of the modelling process against the
			resource intersections and assay values. As mentioned above global wireframe
			estimates also gave close values to the block modelling process.
Moisture	• Whether the tonnages are estimated on a dry basis or with	•	In the absence of any specific gravity data, the tonnages were estimated on an
	natural moisture, and the method of determination of the		assumed SG of 2.7. This appeared to be a reasonable value given the sulphide content
	moisture content.		of the lodes.
Cut-off	• The basis of the adopted cut-off grade(s) or quality parameters	•	An arbitrary intersection cut-off grade of 1g/t was used based on a likely cut-off grade
parameters	applied.		for open cut gold mining in the area.
Mining factors	• Assumptions made regarding possible mining methods,	•	Open cut mining appears to be the most likely extraction method. The depth to which
or	minimum mining dimensions and internal (or, if applicable,		that might be possible is uncertain until further studies have been done.
assumptions	external) mining dilution. It is always necessary as part of the JORC Code explanation Commentary process of determining reasonable prospects for eventual economic extraction to	•	Internal dilution zones within the mineralised downhole intervals were included in the estimates.
	consider potential mining methods, but the assumptions made	•	A minimum width of the mineralised zone (including waste as necessary) was used to
	regarding mining methods and parameters when estimating		develop what are hoped to be mine practical widths down to a minimum of ~2m in
	Mineral Resources may not always be rigorous. Where this is		some cases (at the Eastern Ridge lode zone).
	the case, this should be reported with an explanation of the basis of the mining assumptions made.	•	Further mining dilution effects will need to be considered during the reserve estimation process.

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Criteria	JORC Code explanation	Commentary	Commentary
Metallurgical	• The basis for assumptions or predictions regarding	•	No metallurgical work has been completed on the mineralisation to date
factors or assumptions	metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting	•	It is assumed that the resource will be treatable for gold extraction. This type of mineralisation typically has very good rates of gold extraction. However, testing of these factors will need to be carried out prior to any reserve estimation. The work for this would best be undertaken during the next phase of drilling.
	Mineral Resources may not always be rigorous. Where this is
	the case, this should be reported with an explanation of the
	basis of the metallurgical assumptions made.
Environmental	• Assumptions made regarding possible waste and process	•	These factors have yet to be studied and some preliminary work for this would be
factors or	residue disposal options. It is always necessary as part of the		carried out during the next phase of drilling.
assumptions	process of determining reasonable prospects for eventual
	economic extraction to consider the potential environmental
	impacts of the mining and processing operation. While at this
	stage the determination of potential environmental impacts,
	particularly for a greenfields project, may not always be well
	advanced, the status of early consideration of these potential
	environmental impacts should be reported. Where these
	aspects have not been considered this should be reported with
	an explanation of the environmental assumptions made.
Bulk density	• Whether assumed or determined. If assumed, the basis for the	•	At this stage the density for the resource has been assumed at an SG of 2.7, which is
	assumptions. If determined, the method used, whether wet or		considered to be a close figure for this type of rock and mineralisation in situ.
	dry, the frequency of the measurements, the nature, size and representativeness of the samples. • The bulk density for bulk material must have been measured	•	Tests will need to be carried out in the next phase of drilling to determine more accurate estimates for the average density.
	by methods that adequately account for void spaces (vugs,
	porosity, etc), moisture and differences between rock and
	alteration zones within the deposit.
	• Discuss assumptions for bulk density estimates used in the
	evaluation process of the different materials.
Classification	• The basis for the classification of the Mineral Resources into	•	Confidence levels for classification were based on similar classifications that have been
	varying confidence categories.		made on similar deposits and by the degree of continuity of the lode zone, the density
	• Whether appropriate account has been taken of all relevant		of the existing drilling, and the apparent reliability of the data (having been confirmed
	factors (ie relative confidence in tonnage/grade estimations,		by different drilling and assaying phases).

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Criteria	JORC Code explanation	Commentary	Commentary
	reliability of input data, confidence in continuity of geology	•	Some sections of the resource that in previous estimation were classified as Inferred
	and metal values, quality, quantity and distribution of the		have been re-classified into Indicated, where the drilling densities are sufficient to do
	data).		so. This has been on the basis that the numerous phases of Noranda’s previous drilling,
	• Whether the result appropriately reflects the Competent		and more recent drilling by Beacon Minerals and Superiors Resources drill holes, have
	Person’s view of the deposit.		reconfirmed the grades of the previous drilling phases sufficiently, to indicate a
			significant degree of confidence in the grades reported.
		•	The result appropriately reflects the competent person’s current view of the deposit.
Audits or	• The results of any audits or reviews of Mineral Resource	•	No audits have been undertaken at this stage.
reviews	estimates.
Discussion of	• Where appropriate a statement of the relative accuracy and	•	The factors that could affect the relative accuracy or confidence of the estimates
relative	confidence level in the Mineral Resource estimate using an		include all drilling data quality issues, data density, modelled grade continuity and the
accuracy/	approach or procedure deemed appropriate by the Competent		used resource model assumptions. All of these are adequately discussed in the
confidence	Person. For example, the application of statistical or		information above.
	geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an	•	This approach provides an estimate within any area of the lode that is locally based.
	approach is not deemed appropriate, a qualitative discussion	•	No comparisons with production data are possible.
	of the factors that could affect the relative accuracy and
	confidence of the estimate.
	• The statement should specify whether it relates to global or
	local estimates, and, if local, state the relevant tonnages,
	which should be relevant to technical and economic
	evaluation. Documentation should include assumptions made
	and the procedures used.
	• These statements of relative accuracy and confidence of the
	estimate should be compared with production data, where
	available.

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