TURNSTONE RESOURCES LTD — Capital/Financing Update 2018

Nov 12, 2018

November 2018

Davenport Resources Ltd

ASX Announcement 13[th] November 2018

COMPANY DETAILS

Davenport Resources Limited ABN : 64 153 414 852 ASX CODE: DAV

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DAVENPORT ADDS A FURTHER 1.7Bt FROM NOHRA‐ELENDE SUB‐AREA TO INCREASE TOTAL INFERRED POTASH RESOURCE TO OVER 3.4Bt

Highlights

PRINCIPAL AND REGISTERED OFFICE (& Postal Address) Davenport Resources Limited Level 28, 303 Collins Street Melbourne VIC 3000

W: www.davenportresources.com.au E: info@davenportresources.com.au P: +61 (0) 415 065 280

Capital Structure 143.1M Ordinary shares 16.7M Unlisted options 6.2M Performance Rights 33.2M Listed Options

BOARD OF DIRECTORS Patrick McManus (Non‐Executive Chairman) Dr Chris Gilchrist (Managing Director) Chris Bain (Executive Director) Rory Luff (Non‐Executive Director)

• Inferred Resource of 1.7 Billion tonnes at 9.7% K2O declared for the Nohra‐Elende sub‐area.

• Resource comprises sylvinite (101 million tonnes at 14.2% K2O) and carnallitite (1.6 billion tonnes at 9.4% K2O).

• Davenport now controls over 3.4 billion tonnes (grading 10.5 % K2O) of JORC Inferred Resources from its Ebeleben and Mühlhausen‐ Nohra Mining Licences, including 1.2 Billion tonnes of Sylvinite grading 13.2% K2O.

• Nohra‐Elende resources area shallow, starting at 447m below surface with an average carnallitite thickness of 26 metres, grading 9.4% K2O.

• Resource contains extremely low levels of insoluble minerals (< 0.6%) which augers well for ease of metallurgical processing.

• Improvements in the global potash market have recently elevated potash prices to +US$300/t in SE Asia and Brazil. New contracts for MOP supply to China have been settled at $60/t higher than last year’s levels.

Next Steps

• Targeted programme to upgrade its JORC Inferred Resources to Indicated Resources via confirmation drilling in selected areas.

• Once Inferred Resources are upgraded to Indicated category during H1 2019, Davenport will complete an economic study by the end of 2019.

Davenport Managing Director Dr Chris Gilchrist said:

“We are delighted with yet another large resource update that further confirms the quality of Davenport’s assets in Germany. This is the third of the areas where we have sufficient data to support a JORC Inferred Resource. As with the Ebeleben licence area (ASX announcement 3[rd] April 2018), and the Mühlhausen‐Keula sub‐area (ASX announcement 16[th] October 2018), Micon International Co Ltd has again confirmed an extremely large and high‐quality resource within the northern part of our Mühlhausen‐Nohra Mining Licence. With a current total of now over 3.4 billion tonnes of JORC Inferred Resources under our control, we are one step closer to declaring Europe’s largest potash resource. Further review work of historical data from our Küllstedt licence is ongoing and permitting to drill early in 2019 has made satisfactory progress and is now at an advanced stage.”

November 2018

Davenport Resources Ltd

Davenport Resources (ASX: DAV) (“Davenport”, “the Company”) is pleased to announce a JORC 2012 Inferred Resource of 1,698 million tonnes at 9.7% potassium oxide (K2O) for the northern portion of its 100%‐owned Mühlhausen‐Nohra Mining licence in Germany’s South Harz region. The resource comprises 101 million tonnes grading 14.2% K2O from Sylvinite and 1,597 million tonnes grading 9.4% K20 from Carnallitite. The resource was confirmed by internationally‐renowned consultancy Micon International Co Limited (“Micon”) based on available historic exploration data. The declared resource occurs within the northern portion of the Mühlhausen‐Nohra mining licence, which has an area of 71.2 km[2] (Figure 1). In addition, Micon identified a further portion of the Nohra‐Elende area as an Exploration Target and details will be summarised and released in the coming weeks.

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Figure 1: The Mühlhausen‐Nohra mining licence comprises two sub‐areas as follows: (a) Mühlhausen‐Keula (Green) to the south and (b) Nohra‐Elende (Red) to the north. This announcement refers solely to the JORC Inferred resource contained within the northern Nohra‐Elende sub‐area (Red).

The Nohra‐Elende sub‐area was explored during the 1960s and 1970s under former GDR state control. Extensive data from a total of 28 drill holes from within the licence area and 64 drill holes from outside the area were used to support the JORC Inferred resource estimation. The results of the resource modelling work compare well with the historic resource estimates and exploration target values defined by German consultants ERCOSPLAN earlier this year (DAV announcement 10[th] April 2018).

In the 1980’s, the Nohra‐Elende area was evaluated for its potential to support a large‐scale solution mining operation targeting between 500,000 and 1,000,000 tonnes per year of Muriate of Potash (MOP). The extensive closely spaced drilling allowed the then current owner to undertake technical evaluation

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with a view to commencing operations. A pilot operation was initiated in the late 1980’s just to the north of the Nohra‐Elende sub‐area. This pilot operation has subsequently been developed into the operating Kehmstedt solution mine, where MOP is produced from Carnallitite at a rate of approximately 110,000 tonnes MOP per year.

Mühlhausen‐Nohra is one of three perpetual mining licences in the South Harz Basin that Davenport acquired recently from German government agency Bodenverwertungs‐und‐verwaltungs GmbH (BVVG), (Figure 1). Davenport’s JORC compliant Inferred Resources lie adjacent to the Küllstedt Exploration Licence (Figure 2). It has already been demonstrated ( Independent Technical Assessment, CSA Global, 15[th] April 2016 ) that the Mühlhausen resource extends well into the Küllstedt licence, and ongoing work may lead to the definition of further JORC resources.

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Figure 2: Location of Mühlhausen‐Nohra mining license area showing adjoining mining license areas Ebeleben and Ohmgebirge. Davenport also has exploration licenses and historical drill data for the massive Küllstedt and Gräfentonna areas. The JORC Inferred Resource of 1.7 Bt for Nohra‐Elende is contained within the red hatched areas shown above

The drill hole database considered for the Nohra‐Elende sub‐area consists of 92 drill holes made up of 4 hydrocarbon exploration drill holes and 88 diamond core potash exploration drill holes. Not all the drill holes considered for modelling of the JORC Inferred resource are located exclusively within the licence

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area. A total of 64 of the 92 Project drill holes are located outside and adjacent to the licence boundary (Figure 1), but sufficiently close such that they have been deemed to have a material impact on the geological modelling and mineral resource estimation process.

All samples for the JORC Inferred resource estimate were taken during historical drilling campaigns carried out predominantly during the 1960's and 1970's with eight holes drilled in the 1980’s and an additional 20 drill holes drilled between 1890‐1909 most of which were stopped before intersecting the potash horizon. Sample data exists from three hydrocarbon drill holes that were geophysically‐logged and 35 diamond core drill holes ('potash drill holes') that produced core samples.

All drill hole sampling was conducted according to the procedures and protocols as specified in Kali‐ Instruktion (1956 and 1960). Drill core samples were collected from all of the potash drill holes. Where possible, the K2O grade of the potash‐bearing horizons was historically determined on an empirical base using the correlation with the downhole natural gamma log. Samples were collected across all potash‐ bearing horizons and the total sampled length represents the total thickness of the potash‐bearing horizon of the z2KSt. In the potash drill holes, core sample thicknesses ranged from 0.18 m to 4.00 m. Over inhomogeneous potash horizons where interlayers of potential waste were included, the minimum sample thickness was 0.5 m and the maximum was 5 m. Samples were crushed to 2 mm in a jaw crusher and a representative sample was milled and crushed further to 50 μm. This sub‐sample was assayed by ICP‐OES for all elements except NaCl, which was analysed using potentiometric titration. XRD was used for mineralogy and thin sections were carried out at a local university.

Geology and modelling

The geological model and mineral resource estimation for the Nohra‐Elende sub‐area was conducted in Micromine®, a software package used for geologically modelling stratiform deposits. The database used to create the geological model and mineral resource estimate was created from the manual data entry of hard copy historical drill hole logs and exploration records.

The drill hole database was imported into Micromine® and validated. Validation checks undertaken included checking for missing samples, mismatching sample and stratigraphy intersections, duplicate records and overlapping from‐to depths. No mistakes in the database were identified. Once imported into Micromine®, geological interpretation was carried out in 2‐D cross‐sections and 3‐D downhole plots of lithology and grade. This process confirmed the correlating relationship between the drill hole logs and the geophysical logging as well as the stratigraphic‐hosted nature of the potash mineralisation. Micon also noted that in some instances the mineralisation zone containing grade goes above the z2KSt seam into the overlying Dechsteinsalz (zZNAr) as a result of alteration from ascending brines e.g. Kal Ele 19/1978.

The chemical database was first composited according to stratigraphy, which allowed the merging of the mineralogical and chemical data tables. The composited database was assigned a tag column to indicate if a sample was sylvinite or carnallite based on the mineralogical drill hole logging data and the chemical assay data.

Some drill holes did not have a full suite of chemical data, for example, a number of drill holes did not have assay results for MgSO4. In these instances, a length weighted average dummy value was assigned. Some drill holes had missing sample intervals such as Kal Ele 12/1977 which has 12 cm of unsampled material in between samples 29 and 30. In instances such as this Micon checked the stratigraphy file for any comments regarding core loss and ensured that the sequence was logged as the z2KSt. If the missing sample was less than 30cm a dummy sample value was inserted based on the results for the samples above and below the missing one.

The Nohra‐Elende database contains some drill holes with duplicated stratigraphy indicating faulting or folding. These were numbered according to elevation and cross‐sections drawn to determine which portion of the z2KSt would be used for modelling.

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Each drill hole was individually examined and, based on stratigraphy, sequence of mineralised seams and K2O composite grades, the sylvinite or carnallite seams were further divided into the Upper Sylvinite seam, Carnallitite seam and Lower Sylvinite seam. Micon created histograms of the K2O grade and thickness for each seam. The Carnallitite seam displays continuous grade but the thickness is more variable ranging from 0.5m to 63m and displays faulting. The Sylvinite seams have relatively consistent grade and thickness. No top cut was applied to any of the seam grades.

The database was composited again, this time by grade, using a minimum trigger of 5% K2O, a minimum grade length of 0.5 m, a maximum total length of waste of 2 m and a 1 m maximum consecutive length of waste.

Roof and floor grids were made for each of the four seams. The minimum and maximum X and Y origins used for gridding were 601233 (min X), 5690017 (min Y), 622433 (max X) and 5706817 (max Y). A grid cell size of 400 was used as this best fitted the data when correlated in cross‐section. An inverse distance squared gridding algorithm was used, with a circular search area and a 5,000 m search radius to cover the distance between data points, one sector and maximum 1 point per sector. The roof and floor grids were converted to wireframe surfaces (DTM).

In addition, Micon was provided with data for drill holes located in adjacent areas flanking the Project area of the Mühlhausen‐Nohra mining licence. The surfaces were cut according to the limits of the seams that extend outward of the Mühlhausen‐Nohra mining licence boundary. The surfaces were additionally cut to the licence boundaries forming a second set of DTM surfaces for analysis. Lastly, two sets of solid wireframes were created for the Upper Sylvinite seam, Carnallitite seam and Lower Sylvinite seam using the roof and floor surfaces. The first set of wireframes represents the total extent of potash mineralisation based on the complete set of data provided, while the second set of wireframes represents the potash seam mineralisation cropped by the Project licence boundary. A cross section of the resultant solid wireframes is shown in Figure 2 of JORC Table 1.

The final extents of the modelled Upper Sylvinite seam, Carnallitite seam and Lower Sylvinite seam is shown in Figure 3 in JORC Table 1. Interpreted faulting in the Nohra‐Elende sub‐area is shown on Figure 4 in JORC Table 1. Other smaller faults were also identified in the historical drill hole logs, but these have not had a material effect on the geological model and resource estimation. The faults will however, require further investigation and modelling as the Nohra‐Elende project progresses and before any ore reserves are estimated.

Mineral Resources

With the exception of a zone of halite in the north‐east of Nohra‐Elende, the potash deposit extends across the whole of the sub‐area and is known from additional drill holes to extend beyond the Davenport mining licence boundary. The mineral resources are divided into a northern area and southern area due to insufficient data to join the two (Figure 3 of JORC Table 1).

The mineral resources have been restricted by a total seam thickness (>1 m), grade (>5% K2O) and the licence area boundary.

The average thicknesses of the wireframes are:

• Upper Sylvinite seam is 1.78 m;

• Carnallitite seam is 26.06 m; and

• Lower Sylvinite seam is 1.99 m.

The minimum depth from surface to the roof of the uppermost seam, the Upper Sylvinite seam, is ~447 m towards the north of the sub‐area and an average depth of ±615 m. The modelled seam package is sub‐horizontal with localised gentle undulations.

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A grade‐tonnage report was generated for the three seams using average densities obtained from historical records, specifically: 2.17 t/m³ for Upper Sylvinite seam, 1.90 t/m³ for the Carnallitite seam and 2.30 t/m³ for the Lower Sylvinite seam. The grades for each wireframe have been reported based on the modelled composited assay database, which were modelled using the same algorithm and parameters as the seam roof and floor surfaces. The modelled K2O grade and width of the composited potash seams and the depth of the Upper Sylvinite seam roof are indicated in Figures 5 to 7 in JORC Table 1.

The whole of the Nohra‐Elende sub‐area has been classified as an Inferred mineral resource, based on the quality and extents of the drilling database that are sufficient to imply geological grade and continuity for eventual economic extraction. The spacing between drill holes ranges from ±400 m to ±2,800 m. A 20% geological loss was applied to the modelled tonnage to take into consideration the Inferred category nature of the mineral resources and potential for discovery of localised structure and grade variation. Figure 3 in JORC Table 1 highlights the extents of the Inferred mineral resources.

The 6[th] November 2018 Inferred mineral resources for the Nohra‐Elende sub‐area are presented in Table 1.

Table 1: Nohra‐Elende Mineral Resources, November 2018 (JORC, 2012)

Seam	JORC Category	ρ g/cm3	Geol Loss (%)	Tonnage (Mt)	K2O (%)	K2O (Mt)	Insols (%)	Mg (%)	Na (%)	SO4 (%)
Upper Sylvinite	Inferred	2.17	20	87	14.75	13	0.59	23.83	3.50	15.99
Lower Sylvinite	Inferred	2.30	20	14	10.67	1	0.36	16.84	1.81	23.21
Sub‐Total Sylvinite				101	14.19	14	0.56	22.87	3.27	16.98
Carnallitite				1,597	9.41	150	0.55	14.80	6.01	12.98
Sub‐Total Carnallitite	Inferred	1.90	20	1,597	9.41	150	0.55	14.80	6.01	12.98
Total Nohra‐ Elende Sub‐ Area	Inferred			1,698	9.69	165	0.55	15.28	5.85	13.22

Notes:

1. Mineral resources presented according to ore type (mineralogy) and not as per stratigraphy.

2. Minimum seam thickness considered for resources is 1 m.

3. Minimum cut‐off grade ≥5% K2O.

4. 20% geological loss applied to account for potential unknown geological losses for Inferred resources.

5. Data source: historical state records (BVVG) checked and verified.

6. Inferred resources rounded down to nearest 100,000 t.

7. Errors may exist due to rounding.

The total JORC‐compliant Inferred Resources declared by Micon as a result of modelling the drill hole data from Ebeleben, the Mühlhausen‐Keula and the Nohra‐Elende areas are shown in Table 2 below. Total resources held under the JORC 2012 Inferred category now stand at approximately 3.4 billion tonnes containing 358.8 Mt K2O. Davenport anticipates that this number will increase further before the end of the year with the completion of modelling work on the Küllstedt Exploration licence, and through exploration of the remaining licence areas.

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Table 2: Total JORC 2012 Inferred Resources to November 2018 held by Davenport.

Seam	Tonnage (Mt)	K2O (%)	K2O (Mt)
Sylvinite	324.0	15.6	50.4
Carnallitite	252.6	7.5	18.9
Total Ebeleben	576.6	12.1	69.3
Sylvinite	834.3	12.1	100.7
Carnallitite	295.8	8.2	24.2
Total Mühlhausen‐Keula	1,130.1	11.1	124.9
Sylvinite	101	14.19	14
Carnallitite	1,597	9.41	150
Total Nohra‐Elende	1,698	9.69	165
Total Davenport JORC Inferred Resources to Date	3,404.7	10.5	358.8

Ongoing & Future Work

Work is ongoing to review the historic drill hole data and technical reports from the Küllstedt Exploration Licence area with an aim to convert historic resources to JORC 2012 compliant resources. This work is scheduled for completion before the end of the year.

The next steps for Davenport are to upgrade JORC Inferred Resources to JORC Indicated Resources by carrying out confirmation and exploration drilling in selected target areas during early 2019. Davenport expects the number of drill holes required for this purpose will not exceed four. Progress is being made with local authorities and landowners to obtain permission to drill and a drilling contractor has been selected. Davenport expects to release an update on the preparations for drilling in the near future.

INVESTOR & MEDIA ENQUIRIES

Dr Chris Gilchrist ‐ Managing Director Davenport Resources Ltd +353 41 988 3409 +353 87 687 9886 cgilchrist@davenportresources.com.au

David Tasker – Managing Director Chapter One Advisors +61 433 112 936 dtasker@chapteroneadvisors.com.au

Paul Cahill ‐ Managing Director Bacchus Capital Advisers Ltd + 44 (0) 203 848 1643 paul.cahill@bacchuscapital.co.uk

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Competent Person Statement

Elizabeth de Klerk M.Sc., Pr.Sci.Nat., SAIMM., Micon’s Senior Geologist and Competent Person visited the South Harz Potash project from 12[th] to 16[th] February 2018 and 6[th] to 8[th] March 2018. During the initial site visit, the historical drilling area and laboratory facilities at K‐Utec Salt Technologies Ltd in Sondershausen were visited. The original drill hole logs, reports, maps and cross‐sections held in the Bodenverwertungs and verwaltungs GmbH (BVVG) archives in Berlin were also inspected. In addition, Mrs. de Klerk interviewed the Ercosplan team at their offices in Erfurt to understand how the data were used to compile an Excel database and generate an initial Exploration Target for Mühlhausen‐spelling. The second site visit involved more time spent at K‐Utec inspecting additional historical records for Mühlhausen‐Keula held in the archives at the offices of K‐Utec Salt Technologies Ltd in Sondershausen.

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Page 1 of 32 of JORC Code, 2012 Edition Table 1 Nohra‐Elende Sub‐Area Resource.

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JORC Code, 2012 Edition – Table 1

Nohra‐Elende Sub‐Area,

Mühlhausen‐Nohra Mining License

Davenport Resources Ltd

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

Page 2 of 32 of JORC Code, 2012 Edition Table 1 Nohra‐Elende Sub‐Area Resource

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Figure 1: Drill Hole Plan of the Nohra‐Elende and Mühlhausen‐Keula Sub‐Areas of the Mühlhausen‐Nohra Mining Licence

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Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

Page 3 of 32 of JORC Code, 2012 Edition Table 1 Nohra‐Elende Sub‐Area Resource

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Figure 2: NNW‐SSE Cross‐Section across the Nohra‐Elende Sub‐Area

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Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

Page 4 of 32 of JORC Code, 2012 Edition Table 1 Nohra‐Elende Sub‐Area Resource

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Figure 3: Drill Hole Plan and Wireframes of the Nohra‐Elende Sub‐Area

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Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

Page 5 of 32 of JORC Code, 2012 Edition Table 1 Nohra‐Elende Sub‐Area Resource

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Figure 4: Interpreted fault zones on the Nohra‐Elende Sub‐Area

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Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

Page 6 of 32 of JORC Code, 2012 Edition Table 1 Nohra‐Elende Sub‐Area Resource

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Figure 5: K2O Grade Distribution in the Combined Potash Seams, Nohra‐Elende Sub‐Area

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Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

Page 7 of 32 of JORC Code, 2012 Edition Table 1 Nohra‐Elende Sub‐Area Resource

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Figure 6: Thickness Distribution in the Combined Potash Seams, Nohra‐Elende Sub‐Area

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Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

Page 8 of 32 of JORC Code, 2012 Edition Table 1 Nohra‐Elende Sub‐Area Resource

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Figure 7: Upper Sylvinite Seam Roof Elevation, Nohra‐Elende Sub‐Area

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Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

Page 9 of 32 of JORC Code, 2012 Edition Table 1 Nohra‐Elende Sub‐Area Resource

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Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Sampling techniques	Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.	All samples were taken during historical drilling campaigns predominantly carried out during the 1960's and 1970's with eight holes drilled in the 1980’s and an additional 20 drill holes drilled between 1890‐1909 most of which were stopped before intersecting the z2KSt horizon. Sample data exists from three hydrocarbon drill holes that were geophysically logged and 35 diamond core drill holes ('potash drill holes') that produced core samples.
	Include reference to measures taken to ensure sample retrospectivity and the appropriate calibration of any measurement tools or systems used.	Information about the calibration of the geophysical downhole tools is not available. Core recovery logs were kept for the core drill holes, showing measurements taken by the drillers and geologists, which were checked and correct against the geophysical logs.
	Aspects of the determination of mineralisation that are Material to the Public Report. In cases where ‘industry standard’ work has been done this would be relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay’). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may	All drill hole sampling was conducted according to the Kali‐Instruktion (1956 and 1960). No core samples were taken from the hydrocarbon drill holes. Core samples were taken from 35 of the potash drill holes. Where possible, the K2O grade of the potash‐bearing horizons was determined on an empirical base using the correlation with the downhole natural gamma log. Samples were taken across all potash‐bearing horizons and the total sampled length represents the total thickness of the potash‐bearing horizon of the z2KSt. In the potash drill holes, core sample thickness ranges from 0.18 m to 4.00 m. Over inhomogeneous potash horizons where interlayers of potential waste were included, the minimum sample thickness was 0.5 m and the maximum was 5 m. Samples were crushed to 2 mm in a jaw crusher and a representative sample was milled and crushed further to 50 μm which was assayed by Induced Coupled Plasma Optical Omission Spectrometry (ICP‐OES) for all elements except NaCl which was tested using potentiometric titration. X‐RayDiffraction(XRD)was

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

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	warrant disclosure of detailed information.	used for mineralogy and thin sections were carried out at a local university.
Drilling techniques	Drill type (eg core, reverse circulation, open‐hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face‐sampling bit or other type, whether core is oriented and if so, by what method, etc).	The 88 cored potash drill holes were drilled using a Type C 1500 rig in the 1960s, and T50A and Sif 1200 rigs in the 1980s producing core with diameters of 108 mm and 65 mm respectively. The four hydrocarbon drill holes were drilled using T‐50, BU‐40 and BU‐75 rigs producing core with diameters of 114 mm, 118 mm, 143 mm and 193 mm. All drill holes were drilled vertically with minor deviations in some drill holes at depth. Drilling from surface used tricone bits through the overburden and upper stratigraphy, switching to core through the potash‐bearing horizons to the end of hole (EOH). Clay mud was used as the drilling fluid through the overburden sections in potash drill holes and a NaCl‐saturated drilling fluid was used through the salt horizons. Casing was used through the overburden.
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed.	It is apparent that the core recovery was monitored by the project geologist on site at the time of drilling and this recorded in the historical logs. From the data available, which is not easily interpreted, the core recoveries appear satisfactory (approx. 97%). Lithological and stratigraphic intersections were subsequently corrected using the geophysical logging results.
	Measures taken to maximise sample recovery and ensure representative nature of the samples.	Information about maximising sample recovery is not currently known, but may be available in historical German documents.
	Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	Sampling was conducted according to the stratigraphic interpretation of the core using the downhole geophysical logging as a depth guide. Axial drilling into the drill core with a spiral drill was conducted to contain pulverised material for chemical and mineralogical analysis.
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation,	Core samples were geologically logged in detail and full and summary drill hole logs were produced in both written and graphical format. Information recorded on the drill hole logs included lithological depths, stratigraphic interpretation, and sampling information.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

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	mining studies and metallurgical studies.
	Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.	Full drill hole logs include a detailed lithological description of the entire drill hole, which was also summarised and graphically portrayed alongside the downhole geophysical logging and assay results. Logs are available for 58 drill holes and geophysical logs are available for 15 drill holes, mostly made up of calliper and natural gamma. Geophysical logging speed is recorded as 2.5 m/min and 7 m/min.
	The total length and percentage of the relevant intersections logged.	The complete core intersection was logged on a millimetre scale.
Sub‐ sampling techniques and sample preparation	If core, whether cut or sawn and whether quarter, half or all core taken.	Axial drilling into the drill core with a spiral drill was conducted to obtain pulverised material for chemical and mineralogical analysis.
	If non‐core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.	Not applicable.
	For all sample types, the nature, quality and appropriateness of the sample preparation technique.	All drill‐hole sampling was conducted according to the Kali‐Instruktion (1956 and 1960).
	Quality control procedures adopted for all sub‐sampling stages to maximise representivity of samples.	Samples were homogenised to ensure a representative sample was assayed (see section above on sampling).
	Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second‐half sampling.	No field duplicates were taken. Thicknesses of the potash‐bearing horizons were confirmed by the geophysical logging and the full length of the potash was sampled.
	Whether sample sizes are appropriate to the grain size of the material being sampled.	Sample sizes are considered appropriate to the material being sampled, which is bulk mineralisation.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

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Quality of assay data and laboratory tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.	Samples were sent to the VEB Kombinat Foundation of Potash Research Institute, now known as K‐Utec AG Salt Technologies. Samples were assayed by ICP‐ OES for all elements except NaCl which was tested using potentiometric titration.
	For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.	This information is not currently known, but may be available in untranslated historical German documents.
	Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	Quality control was insured by technical representatives from several state institutions at the time who checked the sampling procedures and laboratory results.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel.	For all exploration work conducted post‐1950, quality assurance and quality control (QAQC) procedures performed at Mühlhausen‐Nohra was conducted by independent state institutions and quality checked by VEB Kombinat Kali company professionals. Detailed information regarding the cross‐check analysis that is reported to have occurred on the Mühlhausen drill‐ hole data is not currently available to Micon and may exist in the archives in Germany.
	The use of twinned holes.	No twin drilling has taken place.
	Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.	Original drill‐hole logs were recorded on paper, using a combination of handwritten and typed records. Copies of the drill‐hole logs (including the summary logs and geophysical logging etc) were distributed to several institutions around Germany, including BVVG, Ercosplan and K‐Utec, many of which are still stored in the archives and available for review. The header for each drill‐hole lists have not all been located, but those that are have been were reviewed in person by Micon and Davenport. No original drill core or sample pulps are still available.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

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	Discuss any adjustment to assay data.	Assay data was not adjusted in any way. K2O grades for the hydrocarbon drill holes were interpreted from the natural gamma logs.
Location of data points	Accuracy and quality of surveys used to locate drill holes (collar and down‐hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.	Drill‐hole collars were surveyed by the state surveyor subsequent to drilling and given with centimetre to decimetre accuracy. Records of collar positions were obtained from drill‐hole logs and state archives.
	Specification of the grid system used.	Drill‐hole coordinates were recorded in local a German coordinate system, which is a 3‐degree Gaus Kruger zone 4 projection with a DHDN datum and an East Germany local transformation to 2 m (EPSG‐Code 31, 468). For the purposes of this resource estimation the coordinates have been converted to UTM Zone 32 North.
	Quality and adequacy of topographic control.	No topographic survey exists for the project area, which is flat lying to gently undulating.
Data spacing and distribution	Data spacing for reporting of Exploration Results.	The drill‐hole spacing in the Nohra‐Elende sub‐area ranges from ±400 m to ±2,800 m.
	Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.	The spacing of drill holes and samples is considered sufficient to imply geological and grade continuity based on information obtained from historical drill holes and samples.
	Whether sample compositing has been applied.	Samples were not composited prior to laboratory test work.
Orientation of data in relation to geological structure	Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.	All drill holes are vertical with only minor deviations at depth as discussed above. The potash‐bearing horizons are horizontal with only minor gentle undulations and the sample thicknesses are considered to represent true thickness without requiring correction.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

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Davenport Resources Ltd

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	If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.	The potash seam at Nohra‐Elende is horizontal to sub‐ horizontal and all thicknesses from the vertical drill holes have been treated as true thickness.
Sample security	The measures taken to ensure sample security.	No information is available about sample security, although it is noted that the historical drilling programmes were conducted with a very high level of technical capability with experienced geologists and drillers. The laboratory used (K‐Utec) is regarded as one of the most experienced salt technological facilities in the world.
Audits or reviews	The results of any audits or reviews of sampling techniques and data.	Original analytical results retained in the K‐Utec archives were reviewed where possible and compared with historical records stored at the BVVG archives. No original core or sample material is available, however, the available data is of sufficient quality to support an Inferred Resource.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

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Section 2 Reporting of Exploration Results

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

Criteria	JORC Code explanation	Commentary
Mineral tenement and land tenure status	Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.	Davenport Resources Limited is a publicly listed company on the Australian Securities Exchange and holds the Mühlhausen‐Nohra mining licences through its wholly owned subsidiary East Exploration GmbH. The Mühlhausen‐ Nohra mining licence is located within the South Harz Potash District of the Thuringian Basin, Germany.
	The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.	There are no known impediments to the security of the tenure that Davenport have over the Mühlhausen‐Keula sub‐area. The Mühlhausen‐Nohra mining licence is perpetual in nature, not subject to expiry and is valid to explore for and produce ‘potash, including (associated) brine’ with no applicable statutory royalties. The Mühlhausen‐Nohra Mining Licence Deed No. is 1077/95‐611 and has an area of 141.6049 km2
Exploration done by other parties	Acknowledgment and appraisal of exploration by other parties.	All of the exploration conducted on the Nohra‐ Elende sub‐area is historical. The first recorded evidence of exploration drilling on the Mühlhausen‐Nohra mining licence is from drill hole Kal Moerb 1/1889, drilling of which commenced in 1889, following the completion of which a further 19 drill holes were drilled between the 1890s to 1909. All of the other exploration drilling was conducted by the former GDR. Various parties were involved, most of which combined to form VEB Kombinant after reunification.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

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Criteria	JORC Code explanation	Commentary
Geology	Deposit type, geological setting and style of mineralisation.	The Mühlhausen‐Nohra mining licence is located in the Südharz (South Harz) Potash District in the north‐western extent of the Thuringian sedimentary basin, which has been separated by the uplift of the northerly Harz Mountains from the South Permian Basin (SPB). The regional stratigraphy of the South Permian Basin is fairly well understood with a pre‐ Variscan basement (Upper Carboniferous and older rocks) and a transition horizon of Upper Carboniferous to Lower Permian lying beneath an expansive sequence of evaporite rocks of the Upper Permian succession. These evaporite deposits are assigned to the Zechstein Group, and host the target potash mineralisation of the South Harz Potash District which occurs on the Mühlhausen‐Keula mining licence. The potash‐bearing target Zechstein Group consists of seven depositional cycles with the potash mineralisation of the South Harz Potash District hosted within the second cycle, the Staßfurt Formation (Z2). The Z2 is further sub‐divided into horizons, of which the Kaliflöz Staßfurt (z2KSt) hosts potentially economic potash. The z2KSt is split into a Hanging Wall Group that has 11 to 19 horizons of finely layered potassium salts and a Footwall Group that has 1 to 10 coarsely layered potassium salts and thick halite layers. The z2KSt is present across the whole of Nohra‐ Elende sub‐area and has an average thickness of 21.8 m. The main mineral present on Nohra‐ Elende is carnallite with additional sylvite. In the Nohra‐Elende sub‐area there is often elevated kieserite associated with carnallitite, which drops off in content towards the base of the carnallitite layer. Kieserite especially high in Kal Pstl 001/1960.
Drill hole Information	A summary of all information material to the understanding of the exploration results including a tabulation of the following	The drill hole database for Nohra‐Elende is made up of 92 historical drill holes. A table showing the key drill hole information can be found below:

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

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Criteria		JORC Code explanation	JORC Code explanation	JORC Code explanation	Commentary	Commentary
		information for all Material drill holes:
		Hole ID	Location	Easting (UTM 32N)	Northing (UTM 32N)	RL	EOH (m)	z2 Interse	KSt ction (m)	Width (m)	Average K2O Grade (%)
								From	To
		E BtrWr 1/1963	Off Licence	602132.00	5694538.00	272.70	534.70		Not int	ersected
		E Hzl 3/1970	Off Licence	612262.00	5688494.00	418.80	1094.00	993.00	1011.00	18.00	8.46
		E Hzl 4/1970	Off Licence	613201.00	5688890.00	416.20	1117.30	974.00	982.00	8.00	12.25
		E Hzl 5/1971	Off Licence	614858.00	5689968.00	406.20	1152.50	983.00	1040.00	57.00	8.72
		Kal Aso 1a/1957	Off Licence	604005.00	5697241.00	312.00	700.00	624.45	939.80	4.20	9.48
		Kal Bhl 3/1960	Off Licence	602750.00	5698813.00	359.00	764.30	746.60	762.65	8.95	‐
		Kal Blei 001/1893	Off Licence	611526.00	5702281.00	235.00	540.78		No	data
		Kal BtrWr 1961	Off Licence	602960.00	5694187.00	341.30	594.00	520.33	540.30	19.97	‐
		Kal Bwo 3	Off Licence	600810.00	5697180.00	281.86	419.61		Stopped short
		Kal Ele 01/1894	Off Licence	613062.00	5699233.00	245.00	700.00	596.00	652.50	7.00	10.70
		Kal Ele 09/1978	Off Licence	612707.00	5698514.00	260.90	714.15	678.90	691.41	0.45	11.02
		Kal Ele 10/1978	Off Licence	611931.00	5698010.00	261.30	643.70	618.10	621.60	2.50	8.69
		Kal Ele 11/1977	Licence	614434.00	5701241.00	216.40	496.54	446.87	471.82	24.95	11.41
		Kal Ele 12/1977	Licence	615961.00	5700352.00	214.20	588.24	535.55	566.77	31.22	8.60
		Kal Ele 13/1978	Licence	613768.00	5698691.00	289.40	745.63	716.87	725.74	8.87	12.84
		Kal Ele 14/1977	Licence	614586.00	5699497.00	246.80	665.00	619.25	640.62	21.37	9.98
		Kal Ele 15, 5a/1978	Licence	615030.00	5698261.00	302.10	766.73	670.55	751.36	80.81	9.05
		Kal Ele 16/1978	Off Licence	613960.00	5697795.00	311.90	786.82	630.30	686.50	56.20	11.19
		Kal Ele 17/1978	Licence	613151.00	5697791.00	313.30	785.09	692.85	770.79	77.94	9.54
		Kal Ele 18/1978	Off Licence	611127.00	5697137.00	279.50	715.23		No data
		Kal Ele 19/1978	Licence	615664.00	5699809.00	258.30	664.92	481.45	505.80	24.35	9.48
		Kal Fef /019	Off Licence	601433.00	5694905.00	264.00	487.00		Stopped short
		Kal Frod	Off Licence	608842.00	5695021.00	443.00	836.90		No data
		Kal Gte 001/1961	Off Licence	603672.00	5692037.00	307.40	560.10	528.24	538.43	10.19	‐
		Kal HrdeHl 001/1896	Licence	617573.00	5698037.00	240.00	797.50	621.00	654.35	33.35	11.55
		Kal HrdeHl 002	Off Licence	617790.00	5696895.00	270.90	754.00		No data
		Kal HrdeHl 002/1897	Licence	617533.00	5698035.00	240.00	462.52		Stopped short
		Kal HrdeHl 003/1897	Licence	617493.00	5698023.00	240.00	463.36		Stopped short
		Kal HrdeHl 003/1899	Off Licence	618476.00	5697723.00	245.70	730.30		No data
		Kal HrdeHl 004/1897	Licence	617502.00	5698064.00	240.00	462.31		Stopped short
		Kal Hyo 2	Off Licence	600607.00	5698629.00	313.33	686.89		No	data
		Kal Hyo 4/1961	Off Licence	600258.00	5699218.00	340.64	728.00	674.30	694.63	0.44	14.35

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

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Criteria		JORC Code explanation	JORC Code explanation		Commentary	Commentary	Commentary
		Kal Hzl 1/1961	Off Licence	610548.00	5688466.00	412.30	1033.80	963.27	983.78	0.53	11.92
		Kal Keh 010/1977	Off Licence	614132.00	5702958.00	244.90	465.79	420.00	443.85	12.05	9.53
		Kal Keh 011/1977	Licence	615876.00	5702682.00	287.40	535.37	480.65	507.15	26.50	8.38
		Kal Keh 113/1988	Off Licence	612925.00	5702879.00	229.50	528.91		No data
		Kal Keh 114/1989	Off Licence	612942.00	5702868.00	229.50	534.00		No data
		Kal Keh 1218/1988	Off Licence	614476.00	5703385.00	245.30	457.75		No data
		Kal Keh 1519/1988	Off Licence	614796.00	5703566.00	280.20	508.87		No data
		Kal Keh 1718/1986	Off Licence	614849.00	5703818.00	265.10	499.65		No data
		Kal Keh 2112/1987	Off Licence	614757.00	5704496.00	273.20	435.70	386.51	419.03	7.83	‐
		Kal Keh 2509/1988	Off Licence	614934.00	5704970.00	239.00	374.72		Stopped short
		Kal Kndr 001/1959	Licence	617133.00	5699714.00	215.78	591.80	515.22	550.20	34.98	9.40
		Kal Kwd 001	Off Licence	615700.00	5697590.00	291.80	830.40		No data
		Kal Kwd 002	Off Licence	615707.00	5697660.00	290.00	536.60		Stopped short
		Kal Kwd 003	Off Licence	615712.00	5697780.00	285.00	530.50		Stopped short
		Kal Kwd 004	Off Licence	615719.00	5697851.00	279.70	521.60		Stopped short
		Kal Lud /008	Off Licence	616368.00	5693735.00	365.00	901.60		No data
		Kal Lud 003/1905	Off Licence	616285.00	5693312.00	354.00	762.20		No data
		Kal Lud 007	Off Licence	617529.00	5697144.00	265.20	521.10		Stopped short
		Kal Lud 010	Off Licence	617402.00	5697329.00	270.80	528.60		Stopped short
		Kal Lud 011/1909	Off Licence	618389.00	5697625.00	249.90	485.80		Stopped short
		Kal Mda 4/1984	Off Licence	608233.00	5688437.00	388.60	933.86	866.00	875.71	9.71	18.92
		Kal Mlra 001/1899	Licence	616563.00	5698025.00	256.64	680.00	619.25	666.30	47.05	12.63
		Kal Moerb 002/1890	Off Licence	617983.00	5700975.00	218.00	310.50		Stopped short
		Kal Moerb 004/1894	Off Licence	617981.00	5701495.00	218.00	527.00		No data
		Kal Moerb 005/1894	Off Licence	617982.00	5700995.00	218.00	617.26		Stopped short
		Kal Moerb 1/1889	Licence	618005.00	5700926.00	230.00	316.05		Stopped short
		Kal Moerb 3/1890	Licence	618007.00	5700876.00	218.00	316.74		Stopped short
		Kal Nga 001/1895	Off Licence	610701.00	5697765.00	240.00	740.00		No data
		Kal Nga 002/1895	Off Licence	610722.00	5697736.00	240.00	480.10		Stopped short
		Kal Nga 003/1896	Off Licence	610753.00	5697717.00	240.00	479.81		Stopped short
		Kal NohNo 007/1960	Off Licence	617175.00	5701380.00	240.73	586.00	459.42	475.10	15.68	‐
		Kal NohNo 010/1978	Licence	616651.00	5699606.00	246.40	651.85	507.40	556.25	48.85	14.65
		Kal NohNo 011/1978	Licence	616101.00	5698535.00	242.30	815.59	641.23	695.97	54.74	9.32
		Kal NohNo 012/1978	Licence	617596.00	5698657.00	249.00	744.75	712.63	719.10	6.47	11.41
		Kal NohNo 013/1978	Off Licence	617430.00	5697494.00	263.00	685.00	646.70	665.64	0.32	9.45
		Kal NohNo 014/1978	Licence	618801.00	5698291.00	236.20	661.95	582.96	606.80	23.84	9.55
		Kal NohNo 015/1978	Off Licence	620231.00	5697662.00	244.50	634.30		Not int	ersected
		Kal NohNo 016/1978	Off Licence	619302.00	5697001.00	288.10	816.23	776.40	807.46	0.81	8.24

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

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Criteria		JORC Code explanation	JORC Code explanation	JORC Code explanation	Commentary	Commentary	Commentary	Commentary	Commentary	Commentary	Commentary	Commentary
		Kal NohNo 017/1979	Licence	618526.00	5699186.00	213.00	679.90	590.75	654.53	63.78	8.91
		Kal NohNo 9/1960	Off Licence	617114.00	5702893.00	283.80	530.80	476.90	493.55	4.80	‐
		Kal NSo 1	Licence	605661.00	5693297.00	328.40	686.70	643.10	664.60	21.50	10.93
		Kal NSo 2	Licence	608745.00	5694088.00	428.00	850.00	819.00	830.00	11.00	11.08
		Kal NSo 3	Licence	606232.00	5692800.00	366.80	742.82	660.33	701.23	40.90	10.56
		Kal NSo 4	Off Licence	613339.00	5693671.00	335.00	684.75	Stopped short
		Kal NSo 5	Off Licence	613353.00	5693592.00	335.00	685.00	Stopped short
		Kal NSo 6	Off Licence	611641.00	5692641.00	350.00	661.90	Stopped short
		Kal NSo 7	Off Licence	605204.00	5693468.00	328.10	460.14	Stopped short
		Kal NSo 8/1907	Off Licence	611692.00	5692613.00	350.00	856.60	814.98	850.70	35.72	10.22
		Kal Oga 002/1902	Off Licence	610336.00	5696156.00	320.07	717.30	No data
		Kal Probekandidat	Off Licence	605373.00	5694956.00	275.20	591.14	No data
		Kal Pstl 001/1960	Licence	615176.00	5700496.00	216.76	581.30	568.50	579.00	10.50	9.27
		Kal Pstl 002/1960	Licence	615683.00	5701859.00	241.00	616.00	526.45	543.10	16.65	7.94
		Kal SosNo 001/1903	Off Licence	607943.00	5695972.00	311.00	651.30	No data
		Kal Vll 1/1961	Off Licence	604761.00	5691417.00	361.01	672.10	608.32	638.43	1.61	9.87
		Kal Wipp 1/1955	Licence	614352.00	5702110.00	223.70	574.40	479.15	500.70	21.55	8.28
		Kal Wr 10	Off Licence	601999.00	5696488.00	266.50	533.00	No data
		Kal Wsbn 2/1960	Off Licence	620984.00	5699620.00	207.73	602.00	Not intersected
		Kal Wsbn 3/1959	Licence	619354.00	5699001.00	214.67	493.80	469.88	470.42	0.54	7.20
		Kal Wsbn 4/1960	Off Licence	619597.00	5700305.00	223.29	535.80	Halite noted in lith log
		Kal Wueg 001/1956	Off Licence	605287.00	5696437.00	253.60	597.40	No data
Data aggregation methods		In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut‐off grades are usually Material and should be stated.			The chemical analysis for Mühlhausen‐Keula was composited according to stratigraphy (z2KSt). A minimum cut‐off grade of 5% K2O was applied to delineate the limits of the potash‐bearing horizon within the z2KSt. A weighted average K2O grade for each drill hole was calculated against sample length with a 2 m minimum grade length, a 2 m maximum total length of waste and a 1 m maximum consecutive length of waste allowed.
		Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of			Waste was included in the grade composite with a 2 m maximum total length of waste and a 1 m maximum consecutive length of waste allowed.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

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Criteria	JORC Code explanation	Commentary
	such aggregations should be shown in detail.
	The assumptions used for any reporting of metal equivalent values should be clearly stated.	No metal equivalents were used or reported.
Relationship between mineralisation widths and intercept lengths	These relationships are particularly important in the reporting of Exploration Results.	All drill holes are vertical with only minor deviations at depth as discussed above. The potash‐bearing horizons are horizontal with only minor gentle undulations and the sample thicknesses are considered to represent true thickness without requiring correction.
	If the geometry of the mineralisation with respect to the drill‐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 (eg ‘down hole length, true width not known’).
Diagrams	Appropriate maps and sections (with scales) and tabulations of 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.	Diagrams included in the body of the report.
Balanced reporting	Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.	All available drill hole information was used. Mühlhausen‐Keula has been reported as a mineral resource, see Section 3 of Table 1.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

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Criteria	JORC Code explanation	Commentary
Other substantive exploration data	Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples – size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.	As well as the potash and hydrocarbon drill hole information described above, hydrogeological, geotechnical and seismic studies have also been conducted on Nohra‐ Elende. The details and results of these projects are written up in the historical archived reports and have not been reviewed by the author as they require translation into English.
Further work	The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large‐scale step‐out drilling).	The current mineral resources are split into two areas of the Nohra‐Elende sub‐area within the Mühlhausen‐Nohra mining licence. The mineral resource areas are divided by a portion of ground that has insufficient drill hole data to declare a resource. Future work should include increasing confidence in the gap as well as three twin drill holes to confirm the historical grades, possibly accompanied by a seismic survey or a detailed review of the results of the historical seismic survey.
	Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	At this stage of the project the focus is on increasing confidence and not area of the resource. Positions of suggested holes to be twinned are shown on Figure 3 above.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

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Davenport Resources Ltd

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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
Database integrity	Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes.	The database used to create the geological model and mineral resource estimation was created from manual data entry of hard copy historical drill‐hole logs and exploration records. The Excel database was cross‐checked against the original drill‐hole logs in the BVVG and K‐Utec archives in Berlin and Sondershausen respectively.
	Data validation procedures used.	When the Excel database is imported into Micromine® modelling software, a data validation exercise is run that includes checking for missing samples, mis‐matching samples and stratigraphy intersections, duplicate records and overlapping from‐to depths. In addition, and where possible the sum of chemical compounds was checked to ensure a total of 100%.
Site visits	Comment on any site visits undertaken by the Competent Person and the outcome of those visits.	The Competent Person visited Muhlhausen‐Keula on two occasions and incorporated visits to the archives of BVVG and K‐Utec and the surrounding area where there are currently operating and now dormant Potash mines. The dates for the two site visits are 12th‐15thFebruary 2018 and 6th‐ 8th March 2018.
	If no site visits have been undertaken indicate why this is the case.	Not applicable
Geological interpretation	Confidence in (or conversely, the uncertainty of ) the geological interpretation of the mineral deposit.	The confidence in the data used and geological interpretation of the potash deposit is high due to the strict guidelines followed during the historical exploration and adherence to the Kali‐Instruktion. In addition, the geological interpretation was checked by several geologists during both the 1960s and 1970s drilling campaigns. Lastly, the depths recorded in the lithological descriptions and geophysical logs correspond, providing confidence in the continuity of the potash horizons and grade.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

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Criteria	JORC Code explanation	Commentary
	Nature of the data used and of any assumptions made.	Since there are no records about some of the sampling protocols and sample security, assumptions have been made that this was done to a high standard based on the historical records. Due to the historical nature of the data, it is sometimes unclear which is the final version of the drill‐hole log and this forms part of the ongoing work that will be required to increase confidence in the resources.
	The effect, if any, of alternative interpretations on Mineral Resource estimation.	The historical resource estimation carried out in the 1908’s by the VEB Untergrundspeicher Mittenwalde covered an area of 26.5 km2 and considered selective solution mining of the carnallitite with no Hartsalz or sylvinite resources.
	The use of geology in guiding and controlling Mineral Resource estimation.	The mineralisation is confined to the z2KSt horizon and this was used as the initial basis for geological modelling prior to applying cut‐off grades.
	The factors affecting continuity both of grade and geology.	Some of the drill holes have a duplication of the z2KSt horizon that suggests there is some localised folding and/or faulting. This can only be tested when horizontal drilling can be done from underground and face mapping.
Dimensions	The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource.	The economic potash deposit covers the whole of the Nohra‐Elende sub‐area contained by the Mühlhausen‐Nohra mining licence with the exception of two zones of halite on to the north east and none to the south west. The mineral resource has been restricted by seam thickness (>1 m) and grade (>5% K2O). The total mineral resource area for the Nohra‐Elende sub‐area is approximately 40.4 km2and the total Inferred Mineral Resources tonnage is 1.69 Mt. The minimum depth from surface to the roof of the uppermost seam, the Upper Sylvinite seam, is ±500 m towards the north of the sub‐area and the average depth is 615 m.
Estimation and modelling techniques	The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme	The geological model and resource estimation for Nohra‐Elende was carried out in Micromine® modelling software, which is internationally recognised software used for modelling stratiform

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

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Criteria	JORC Code explanation	Commentary
	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.	deposits. The chemical database was first composited according to stratigraphy. The composited database was assigned a tag column to indicate if a sample was sylvite or carnallite based on the mineralogical data. Where some chemical data was missing, for example a number of drill hole did not have MgSO4, a length weighted average dummy value was assigned. For missing KCl values, the K2O was divided by 0.63. This database was composited using a minimum trigger of 5% K2O, a minimum grade length of 2 m, maximum total length of waste of 2 m and a 1 m maximum consecutive length of waste. Each drill hole was then examined and, based on stratigraphy, sequence of mineralised layers and K2O composite grades, the sylvinite or carnallitite seams were further divided into the Upper Sylvinite seam, the Carnallitite seam and the Lower Sylvinite seam. Roof and floor grids were made for each of the four distinguished seams. The minimum and maximum X and Y origins used for gridding were 601233 (min X), 5690017 (min Y), 622433 (max X) and 5706817 (max Y). A grid cell size of 400 was used as this best fitted the data when correlated in cross‐ section. An inverse distance squared gridding algorithm was used, with a circular search area and a 5,000 m search radius to cover the distance between data points, one sector and maximum 1 point per sector. The roof and floor grids were converted to wireframes surfaces and then DTM surfaces for analysis. Lastly, two sets of solid wireframes were created for Upper Sylvinite seam, the Carnallitite seam and the Lower Sylvinite seam using the roof and floor surfaces. The first set of wireframes represents the total extent of potash mineralisation based on complete set of data provided and the second set of wireframes represents the potash seam mineralisation cropped by the project licence boundary.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

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Criteria	JORC Code explanation	Commentary
	The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data.	An historical Kali‐Instruktion balanced C2 reserve and a JORC Exploration Target exists for Nohra‐ Elende. Both are comparable to the current Inferred resource grade, however, the resource tonnages differ due to different resource areas.
	The assumptions made regarding recovery of by‐products.	No assumptions have been made regarding by‐ products, there is minor kieserite, but this has not been estimated at this stage.
	Estimation of deleterious elements or other non‐grade variables of economic significance (eg sulphur for acid mine drainage characterisation).	The insoluble content has been reported for purposes of metallurgical processing review and is not considered to be significant.
	In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed.	A block model was not created.
	Any assumptions behind modelling of selective mining units.	No selective mining units were modelled. The resource was modelled according to sylvite and carnallite so the low grade and high grade areas can be distinguished.
	Any assumptions about correlation between variables.	Not applicable.
	Description of how the geological interpretation was used to control the resource estimates.	The geological model was first constrained to the z2KSt horizon and then the mineralogical data was used to split this into the upper/lower sylvite and carnallitite seams. No structural blocks have been defined, but future modelling will have to consider the upthrown fault block in the north of the area.
	Discussion of basis for using or not using grade cutting or capping.	A minimum cut‐off grade of 5% K2O was used as this is considered economic. No top cut was applied as the statistical analysis of the data shows a normal distribution with no outlying populations.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

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Criteria	JORC Code explanation	Commentary
	The process of validation, the checking process used, the comparison of model data to drill‐ hole data, and use of reconciliation data if available.	The composited assay data was compared against original assay data in cross section. Modelled wireframes were compared against original stratigraphic interpretations and geophysical logs. All correlated well.
Moisture	Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content.	Not applicable.
Cut‐off parameters	The basis of the adopted cut‐off grade(s) or quality parameters applied.	A minimum cut‐off grade of 5% K2O was used as this is considered economic. In addition areas with a seam height of <1 m were excluded.
Mining factors or assumptions	Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made.	A minimum seam height of 1 m was used as a cut‐ off to take into account potential mining height underground.
Metallurgical factors or assumptions	The basis for assumptions or predictions regarding 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	Processing specifically for Nohra‐Elende has not been considered at this stage. Insoluble material has been modelled. The South Harz area has historically been mined for decades and there is a lot of local knowledge about the metallurgical processes required.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

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Criteria	JORC Code explanation	Commentary
	and parameters made when reporting 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 factors or assumptions	Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the 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.	Mining will take place underground. Assumptions regarding environmental factors have been based on the standards set by surrounding potash mines in the area. Davenport has the exclusive right to explore and/or produce and to appropriate the respective mineral resources in a certain field. However, all exploration and production activities require a mining permit (Betriebsplanzulassung) to be applied for with the mining authority.
Bulk density	Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples.	The bulk density for both the sylvinite and carnallitite seams was calculated by Ercosplan based on historical data. The bulk density for each sample was calculated based on the derived mineralogical composition. A weighted average was created for sylvinite and carnallitite based on the samples. The average density for Upper Sylvinite is 2.17 t/m3 and 2.30 t/m3 for the Lower Sylvinite, and 1.90 t/m3 for the Carnallitite seam.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

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Criteria	JORC Code explanation	Commentary
		densities reported by Ercosplan were used by Micon.
	The bulk density for bulk material must have been measured by methods that adequately account for void spaces (vugs, porosity, etc), moisture and differences between rock and alteration zones within the deposit.	Not applicable.
	Discuss assumptions for bulk density estimates used in the evaluation process of the different materials.	Not applicable.
Classification	The basis for the classification of the Mineral Resources into varying confidence categories.	The Nohra‐Elende sub‐area has been classified as an Inferred resource based on the quality and extents of the drilling database that are sufficient to imply geological grade and continuity for eventual economic extraction. A portion of the Nohra‐Elende sub‐area had insufficient data to declare a mineral resource.
	Whether appropriate account has been taken of all relevant factors (ie relative confidence in tonnage/grade estimations, reliability of input data, confidence in continuity of geology and metal values, quality, quantity and distribution of the data).	The location of Nohra‐Elende is in an area that has been mining potash for decades. Whilst on site, the Competent Person visited the area where the old Volkenroda ventilation shaft was sunk and other operating underground mines and solutions mines in the neighbouring area such as Bleicherode.
	Whether the result appropriately reflects the Competent Person’s view of the deposit.	The stated tonnage and grade are considered an appropriate reflection of the Competent Persons view of the deposit.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

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Criteria	JORC Code explanation	Commentary
Audits or reviews	The results of any audits or reviews of Mineral Resource estimates.	Between 1980 and 1987 historical resource estimates were reported for three sub‐areas of the Mühlhausen area including Nohra‐Elende. The exact areas of the three resources were slightly different to the current mining licence boundary. The historical resource estimations were conducted by VEB Geological Research und Exploration. The total C2 balanced resource at the equivalent of the Nohra‐
Discussion of relative accuracy/ confidence	Where appropriate a statement of the relative accuracy and confidence level in the Mineral Resource estimate using an approach or procedure deemed appropriate by the Competent Person. For example, the application of statistical or geostatistical procedures to quantify the relative accuracy of the resource within stated confidence limits, or, if such an approach is not deemed appropriate, a qualitative discussion of the factors that could affect the relative accuracy and confidence of the estimate.	The stated resource tonnage and grades stated are considered based on the detailed drill hole database and 3D modelling. The use of the inverse distance squared method is considered appropriate for Nohra‐Elende as the drill holes are relatively far apart, the mineralised zone is flat lying, mineral zones are clearly defined and grade is relatively consistent.
	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.	This statement relates to the global Nohra‐Elende resource.
	These statements of relative accuracy and confidence of the	Not applicable.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

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Criteria	JORC Code explanation	Commentary
	estimate should be compared with production data, where available.

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

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Section 4 Estimation and Reporting of Ore Reserves

(Criteria listed in section 1, and where relevant in sections 2 and 3, also apply to this section.)

Criteria	JORC Code explanation	Commentary
Mineral Resource estimate for conversion to Ore Reserves	Not applicable for this report
Site visits
Study status
Cut‐off parameters
Mining factors or assumptions
Metallurgical factors or assumptions
Environmental
Infrastructure
Costs
Revenue factors
Market assessment
Economic
Social
Other
Classification
Audits or reviews
Discussion of relative accuracy/ confidence

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.

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Section 5 Estimation and Reporting of Diamonds and Other Gemstones

(Criteria listed in other relevant sections also apply to this section. Additional guidelines are available in the ‘Guidelines for the Reporting of Diamond Exploration Results’ issued by the Diamond Exploration Best Practices Committee established by the Canadian Institute of Mining, Metallurgy and Petroleum.)

Criteria	JORC Code explanation	Commentary
Indicator minerals	Not applicable for this report
Source of diamonds
Sample collection
Sample treatment
Carat
Sample grade
Reporting of Exploration Results
Grade estimation for reporting Mineral Resources and Ore Reserves
Value estimation
Security and integrity
Classification

Micon International Co Limited. Suite 10, Keswick Hall, Keswick, Norwich, Norfolk, U.K., NR4 6TJ Telephone (44) (1603)-501501 Fax (44) (1603)-507007 E-mail office@micon-international.co.uk. Registered no. 4026319, England.