SUPERIOR RESOURCES LIMITED — Interim / Quarterly Report 2015

Apr 29, 2015

Superior Resources Limited

ABN 72 112 844 407

Registered Office: Level 2, 87 Wickham Terrace, Spring Hill, QUEENSLAND, 4000. Postal Address: PO Box 10288, Brisbane Adelaide Street, QUEENSLAND, 4000. Telephone: 07 3839 5099 Facsimile: 07 3832 5300 Email: manager@superiorresources.com.au

31 March 2015 QUARTERLY ACTIVITIES REPORT

HIGHLIGHTS

• Tick Hill mining leases transferred from Mount Isa Mines Limited to Diatreme Resources Limited – final milestone reached under farm-in agreement between Superior Resources Limited and Diatreme Resources Limited.
• Advanced stages of planning for commencement of mine tailings assessment program.
• Assessing joint venture proposals in respect of the NW Qld zinc projects and the Greenvale copper project.

Superior Resources Limited

ASX:SPQ

Board

Carlos Fernicola – Chairman Peter Hwang – Managing Director Ken Harvey – Non-exec Director David Horton – Non-exec Director Carlos Fernicola – Company Secretary

Securities

Ordinary Shares – 207,536,372 Top 20 holders: 64.51% issued capital

Financial

Cash and Shares – $346,000

Summary

Superior Resources Limited (SPQ) is a Brisbane based ASX-listed mineral explorer whose principle aim is the discovery of large base metal deposits in northern Queensland. Superior holds a number of exploration projects in northwest Queensland for large Mount Isa type copper and lead-zinc-silver deposits and exploration projects in northeast Queensland for copper-goldlead-zinc-silver deposits. Superior also holds gold and uranium tenements.

Share Registry

Link Market Services Level 15, 324 Queens Street Brisbane, QLD, 4000

Web Site

www.superiorresources.com.au

Contact

Peter Hwang (07) 3839 5099

PROJECT OVERVIEW

The key focus during the quarter has been to progress the assessment of the Tick Hill Gold Tailings Project and to progress joint venture discussions with third parties in respect of the northwest Queensland zinc and Greenvale copper projects.

GOLD:

Tick Hill Gold Project: (Farmin JVA with Diatreme Resources Limited (DRX))

• Advanced stages of planning and regulatory processes for commencement of mine tailings and alluvial gold assessment program.
• Planning also commenced for extensions to the original Tick Hill gold resource.
• Potential cash flow opportunity in the short term and significant new discovery potential.

ZINC:

Superior pursuing funding and joint venture opportunities with third parties in respect of its high quality Mount Isa Style lead-zinc-silver and copper projects in northwest Queensland.

Victor Project (100% SPQ)

• Extensive high order lead and zinc soil geochemical anomalies.
• High potential for Mount Isa style lead-zinc deposit in the deeper Proterozoic basement.
• Airborne EM geophysical anomaly identified as being sourced from the Proterozoic basement underlying about 200m of younger (Cambrian) sediments.
• Proterozoic basement anomaly has not previously been drilled.

Nicholson West Project (100% SPQ)

• Consists of a substantial bedrock EM anomaly possibly representing a stratiform Mount Isa Style lead-zinc-silver deposit.
• Represents a highly prospective and ready to drill lead-zinc prospect.
• Single proposed drill hole to target a zinc-bearing pyritic shale intersection in excess of 20m thickness.
• Potential also for copper feeder zone targets.

COPPER:

Greenvale Project: (100% SPQ)

• Investigations continue to:
  • investigate potential for additional copper resources at Cockie Creek;
  • identify high grade copper at the One Mile Prospect and at new copper prospects including Riesling, Halls Reward and Wyandotte prospects; and
  • identify potential for larger areas of porphyry copper mineralisation.
• Early stage discussions with potential joint venture partners.

PROJECT ACTIVITIES

Tick Hill Gold Project

On 20 March 2015 the three mining leases comprising the Tick Hill Gold Project (MLs 7094, 7096 and 7097) (Project) were transferred from Mount Isa Mines Limited (MIM) to DRX.

On 30 January 2015, SPQ confirmed that the remaining conditions under the "Exploration Farm-in and Joint Venture Agreement" with DRX, dated 17 June 2013 (JVA) were waived and as a result, SPQ's rights and obligations in relation to the Project commenced from that date.

The effect of the above enables Superior to:

• 1. commence its earn-in rights to a 50% interest in the Project; and
• 1. commence the exploitation of surface gold, which includes investigating the alluvial gold potential the land surrounding the mine pit and the processing of old mine tailings and waste rock dumps.

Superior's focus on the Tick Hill Gold Project is two-fold:

• 1. conduct exploration to identify a faulted extension to the earlier mined high grade mineralised zone, which averaged 22.6 grams per tonne; and
• 1. evaluate and, if feasible, exploit "surface gold" surrounding the old mining operation, which will include potential alluvial gold, mine tailings and waste rock dumps.

"Surface Gold"

Commencing from 30 January 2015, Superior and DRX will effectively be in a joint venture arrangement in respect of the "surface material", which is defined as being all minerals and material from the surface of the land to a depth of ten metres below the surface.

Any expenditure incurred on account of work conducted in respect of the surface material will be shared equally between SPQ and DRX. All expenditure incurred by SPQ in respect of the surface material will constitute earn-in expenditure and will be counted towards SPQ's $750,000 minimum earn-in obligation.

Superior has, jointly with DRX, advanced an assessment program to determine the feasibility of exploiting potential alluvial gold and for the re-processing of the old mine tailings. The joint arrangements with DRX will include the utilisation of DRX's personnel and air-core drill rig and will ensure the ability to assess the surface gold potential at low cost.

The Company has also commenced data compilation and processing in preparation for an exploration program aimed at identifying a high grade extension to the original deposit.

In addition to the exploration programs, Superior is utilising its in-house capability to ensure the terms of all regulatory approvals are appropriate for the planned activities.

JVA Earn-in

Under the JVA, Superior has the right to earn a 50% interest in the project by spending a minimum of $750,000 on exploration, which will include substantial drilling over a two year earn-in period (which can be extended by agreement).

During the earn-in period Superior will have the sole and exclusive right to access and conduct exploration on the project as well as to determine the nature of the exploration programs.

Upon a transfer of a 50% interest in the Project, Superior will be required to pay DRX $100,000 and an amount equal to 50% of the government security bond on the mining leases.

MIM retains a royalty on gold produced from the mining leases, which is set at a variable rate depending on the annual grade of gold produced from mining. The royalty applies initially to gold produced above 5g/t Au and then, after payment of royalties totalling $5M, to gold produced above 10g/t Au. A separate royalty rate applies to gold produced from tailings resulting from previous mining.

CORPORATE / COMMERCIAL

During the quarter, the Board of SPQ continued to evaluate and progress proposals with third parties in relation to farm-in and joint venture arrangements in respect of the north west Queensland zinc and Greenvale copper projects.

INVESTMENTS

SPQ maintains an exposure in relation to ASX listed uranium focused company, Deep Yellow Limited (ASX:DYL). At 31 March 2015, the company holds 7,000,000 DYL shares with a closing value of $98,000.

ASX Listing Rule 5.3.3

Appendix 1 sets out information that is required under ASX Listing Rule 5.3.3 (for exploration entities).

Peter Hwang Managing Director

Contact: Mr Peter Hwang Ph: (07) 3839 5099

Further Information: www.superiorresources.com.au manager@superiorresources.com.au

Statements made in this report may contain or comprise forward-looking statements. Although Superior Resources Limited believes that any estimates and expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will in the future, prove to have been correct. Accordingly, results and estimations could differ materially from those set out in the forward-looking statements as a result of, among other factors, changes in the economic and market conditions, success of business and operating initiatives and changes in the regulatory environment. Subject to the requirements of relevant laws and the ASX Listing Rules, Superior Resources Limited does not provide any undertaking to update publicly or release any revisions of any forward-looking statements to reflect events or circumstances after the date of this report or to reflect the occurrence of unanticipated events.

Quarterly Activities Report – 31 March 2015 - Page 4 of 5

Appendix 1

DISCLOSURES REQUIRED UNDER ASX LISTING RULE 5.3.3

Mining tenements held at the end of the quarter and their location

State	Tenement Name	Tenement ID	Location	Interest	Holder	Comments
QLD	Sulieman Creek	EPM15040	Dajarra	100%	SPQ	Granted
QLD	Hedleys 2	EPM15670	Nicholson	100%	SPQ	Granted
QLD	Hedleys South	EPM18203	Nicholson	100%	SPQ	Granted
QLD	Victor Creek	EPM16028	Victor	100%	SPQ	Granted
QLD	Harris Creek	EPM18840	Victor	100%	SPQ	Granted
QLD	Tots Creek	EPM19097	Victor	100%	SPQ	Granted
QLD	Scrubby Creek	EPM19214	Victor	100%	SPQ	Granted
QLD	Cockie Creek	EPM18987	Greenvale	100%	SPQ	Granted
QLD	Cassidy Creek	EPM19247	Greenvale	100%	SPQ	Granted
QLD	Dinner Creek	EPM25659	Greenvale	100%	SPQ	Application
QLD	Wyandotte	EPM25691	Greenvale	100%	SPQ	Application
QLD	One Mile	ML6750	Greenvale	100%	SPQ	Granted
QLD	Tomahawk Creek	EPM(A)25264	Victor	100%	SPQ	Application
QLD	W Creek	EPM(A)25843	Victor	100%	SPQ	Application

Beneficial percentage interests held in farm-in or farm-out agreements at end of the quarter

State	Project Name	AgreementType	Parties	Interest held at end ofquarter by explorationentity or child entity	Comments
QLD	Tick Hill GoldProject	Farm-inAgreement	SPQ and DRX	0%	Transfer of miningleases ML7094,ML7096 and ML7097from MIM to DRXapproved 20 Mar 2015

Abbreviations:
EPM	Queensland	Exploration Permit for Minerals
EPM(A)	Queensland	Exploration Permit for Minerals (Application)
	Diatreme Resources Limited
MIM	Mount Isa Mines Limited
MLSPQDRX	QueenslandSuperior Resources Limited	Mining Lease