VERITY RESOURCES LIMITED — Capital/Financing Update 2016

Jan 26, 2016

ABN 96 122 995 073

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ASX Code: BML

TO: COMPANY ANNOUNCEMENTS OFFICE ASX LIMITED

DATE: 27 JANUARY 2016

FOR IMMEDIATE RELEASE

__________

SECOND BATCH OF ASSAY RESULTS RECEIVED FROM JV PARTNERS

• Further high-grade massive sulphides intersected at Maibele North Project

• High-Grade Nickel sulphide mineralisation intersected up to 400m along strike from existing resource

Botswana Metals Limited (“BML”) is pleased to advise that the it has received a second batch of assay results from Joint Venture partners, BCL Limited, for the ~12,000m drilling campaign completed in 2015 at Maibele North. (Table 1 – Significant Intersections). BML recently received results from further 26 completed infill and extension holes from assays that were undertaken at an offsite independent laboratory as well as from onsite analysis at BCL’s in-house laboratory facitities at both the Tati-Ni and Selibi Phikwe Ni-Cu mines. Results from the final 5 holes are all that remain to complete the analysis of the program.

Highlights of the second batch of assay results include:

MARD0122 :

• 4.0m @ 1.80% Ni, 0.59% Cu, 882 ppm Co, 0.08g/t Au, 1.51g/t 4PGEs from 134.23m

• Including

• 1.59m @ 2.17% Ni, 0.74% Cu, 1,054ppm Co, 0.06g/t Au, 2.07g/t 4PGEs from 134.23m

• 1.23m @ 2.21% Ni, 0.4% Cu, 1,040ppm Co, 0.04g/t Au, 1.64g/t 4PGEs from 137m

MARD0129 :

• 2.18m @ 1.55% Ni, 1.28% Cu, 917 ppm Co from 200.27m

• Including

• 1.03m @ 2.17% Ni, 2.22% Cu, 1,300ppm Co from 200.27m

• 0.40m @ 1.7% Ni, 0.38% Cu, 900ppm Co from 202.05m

• (note: Assays performed at BCL Limited in-house laboratory - Au and PGEs not assayed for)

MARD0127 :

• 0.59m @ 2.35% Ni, 0.56% Cu, 1130 ppm Co, 0.12g/t Au, 1.05g/t 4PGEs from 73.46m

Botswana Metals Limited

Mailing Address Suite 3, 16 Cotham Road, Kew, Victoria 3101 Registered Office Suite 506, Level 5, 1 Princess Street, Kew, Victoria 3101 P: +61 3 9855 1885; F: +61 3 9855 2885 Email info@botswanametals.com.au

www.botswanametals.com.au

ABN 96 122 995 073

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MARC0099 :

• 1.0m @ 2.27% Ni, 2.02% Cu from 240m

• (Note: Assays performed at BCL Limited in-house laboratory - Co, Au and PGEs not assayed for. MARC0099 is a RC hole)

MARD0146 :

• 0.14m @ 2.13% Ni, 0.15% Cu from 252.58m

• 0.72m @ 1.17% Ni, 0.54% Cu from 254.80m

• (Note: Assays performed at BCL Limited in-house laboratory - Co, Au and PGEs not assayed for)

All widths are down hole thicknesses. A full compilation of significant intersections is included in Table 1 below. Samples assayed at BCL’s in-house facilities were analysed mostly at the laboratory at the Selebi Phikwe Ni-Cu mine, with checks undertaken at the company’s Phoenix Laboratory at the Tati Ni Mine. The Phoenix laboratory at Tati-Ni is SANAS accredited to the ISO 17025 international standard. The laboratory at the Selebi Phiwke NiCu mine is currently un-certified. Identical QAQC protocols were appled to samples for all three laboratories and QAQC results were deemed to be acceptable for all sample batches.

Details

The Board of Botswana Metals is highly encouraged by the continuing good results from the Maibele North Project. This batch of results has continued to return encouraging Ni, Cu, Co, Au and 4PGEs (Pt, Pd, Rh, Ru) from sulphide zones both within the existing resource and along strike for over 400m to the east of the current resource. The results now complete assaying on holes from MARC0099 through to MADD0148. Results from the final four holes, MADD0149 to MADD0152 remain outstanding.

The program was designed to provide infill detail within the existing resource to enable a new resource calculation to an indicated or measured status, as well as to test new conductors detected along strike and adjacent to the orebody that were detected in ground electro-magnetic (EM) prograns undertaken in 2015.

The infill drilling has confirmed the extent of the existing mineralisation and, where signifcant sulphide zones have been encountered, metal contents of a similar tenor to that revealed by the 2014 drilling have been encountered. The density of drilling data will enable an upgraded resource status and form an integral component of the ongoing Pre-feasibility studies.

The drilling of SQUID EM conductors along strike to the east of the resource has returned laterally continuous mineralisation for over 480m. Drilling of this extension is in the early stage but the series of 80m spaced fences of have intersected sulphide mineralisation that remains open at depth and along strike. This exciting new zone of mineralisation has the potential to add significant tonnes to the Maibele North resource. Further deep potential exists at Maibele North, with the mineralisation open at depth across the entire deposit.

Botswana Metals Limited

Mailing Address Suite 3, 16 Cotham Road, Kew, Victoria 3101 Registered Office Suite 506, Level 5, 1 Princess Street, Kew, Victoria 3101 P: +61 3 9855 1885; F: +61 3 9855 2885 Email info@botswanametals.com.au www.botswanametals.com.au

ABN 96 122 995 073

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Of particular encouragement is the intersection in 2014 drill hole MARD0094, where nearly 7m of Ni sulpide mineralisation was intersected some 200m below, and potentially downdip, of the recently discovered extension zone (Figures 2 and 3).

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Figure 1: Collar Plan of the 2015 drill program (Yellow Traces) showing the strike length of the existing resource (gold shape) and the strike lengths of the recently discovered east and west extensions. The mineralisation is open to the east, west and at depth.

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Figure 2: Plan view of the 2015 drill hole traces (yellow) showing the highlight intersections from the recent batch of assay results. Pink shapes represent SQUID EM conductor plates.

Botswana Metals Limited Mailing Address Suite 3, 16 Cotham Road, Kew, Victoria 3101 Registered Office Suite 506, Level 5, 1 Princess Street, Kew, Victoria 3101 P: +61 3 9855 1885; F: +61 3 9855 2885 Email info@botswanametals.com.au www.botswanametals.com.au

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ABN 96 122 995 073

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Figure 3: Cross section through holes MARD0116, 0146, 0025 and 0094. The section is located approximately 180m northeast of the current resource and shows the relationaship between recently discovered massive and semi-massive sulphide mineralisation hole MARD0116 and MADD0146. Hole MARD0094 was drilled in 2014 and possibly marks the extension of this mineralisation, some 320m down dip and ~225m vertically below the recently discovered sulphide zone. Historic hole, MADD0025, intersected minor pyrrhotite disseminations approximatley 130m down dip of MADD0146.

Table 1: All Significant intercepts from the recently received batch of assay results

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Hole ID From Thick Ni% Cu% Co Au Pt Pd Rh Ru Comment
(m) (m) ppm g/t g/t g/t g/t g/t
MADD0117 92 0.65 0.31 0.07 n/a n/a n/a n/a n/a n/a
and 188.8 1 0.33 0.07 n/a n/a n/a n/a n/a n/a
MARD0100 126 1 0.35 0.04 n/a n/a n/a n/a n/a n/a
and 130 1 0.34 0.06 n/a n/a n/a n/a n/a n/a RESOURCE
MARD0119 137 1 0.39 0.29 263 0.03 0.07 0.19 0 0.07 INFILL
and 140.52 1.24 0.47 0.69 352 0.07 0.02 0.32 0.08 0.1 HOLES
and 146.1 1.9 0.99 0.27 589 0.03 0.03 0.38 0.1 0.18
incl 147 1 1.42 0.34 874 0.03 0.03 0.56 0.14 0.25
and 151.5 0.35 0.73 0.05 367 0.02 0.02 0.04 0.06 0.12
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Botswana Metals Limited

Mailing Address Suite 3, 16 Cotham Road, Kew, Victoria 3101 Registered Office Suite 506, Level 5, 1 Princess Street, Kew, Victoria 3101 P: +61 3 9855 1885; F: +61 3 9855 2885 Email info@botswanametals.com.au www.botswanametals.com.au

ABN 96 122 995 073

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Hole ID From Thick Ni% Cu% Co Au Pt Pd Rh Ru Comment
(m) (m) ppm g/t g/t g/t g/t g/t
MARD0121 NSR
MARD0122 127.55 0.35 1.85 0.1 880 0.03 0.07 0.59 0.24 0.72
and 134.23 4 1.8 0.59 882 0.08 0.07 0.8 0.18 0.46
incl 134.23 1.59 2.17 0.74 1054 0.06 0.05 1.02 0.27 0.73
incl 137 1.23 2.21 0.4 1040 0.04 0.03 0.83 0.14 0.33
and 139.88 1.12 0.33 0.08 208 0 0.03 0.12 0.02 0.04
MARD0123 NSR
MARD0125 NSR
MARD0126 74 0.65 1.22 0.48 594 0.09 0.05 0.48 0.11 0.29
MARD0127 73.46 0.59 2.35 0.56 1130 0.12 0.04 0.81 0.2 0.59
MARD0128 162 1 0.35 0.06 242 0 0.04 0.19 0.07 0.22
174.72 0.32 1.84 0.16 541 0.19 0.33 0.89 0.24 0.58
MARD0130 66.42 0.9 0.66 0.25 360 0.01 0.03 0.25 0.04 0.03
MARD0131 NSR
MARD0132 67.3 1.7 0.52 0.06 362 0.02 0.04 0.15 0.03 0.04
and 76 2.1 0.38 0.09 222 0.04 0.06 0.22 0.02 0.01
MARD0134 NSR
MARD0135 NSR
MARD0136 NSR
MARD0138 228 1 0.4 0.02 300 n/a n/a n/a n/a n/a
MADD0140 NSR
MADD0143 219.74 0.46 0.37 0.2 n/a n/a n/a n/a n/a n/a
and 225 0.52 0.3 0.08 n/a n/a n/a n/a n/a n/a
MADD0145 256 2 0.74 0.1 n/a n/a n/a n/a n/a n/a
MADD0146 251.15 4.37 0.38 0.12 n/a n/a n/a n/a n/a n/a
RESOURCE
incl 252.58 0.14 2.13 0.15 n/a n/a n/a n/a n/a n/a EXTENSION
incl 254.8 0.72 1.17 0.54 n/a n/a n/a n/a n/a n/a HOLES
MADD0148 279 2 0.66 0.87 n/a n/a n/a n/a n/a n/a
incl 279.82 0.28 1.06 0.47 n/a n/a n/a n/a n/a n/a
MARC0099 240 1 2.27 2.02 n/a n/a n/a n/a n/a n/a
and 245 1 0.76 0.18 n/a n/a n/a n/a n/a n/a
MARD0115 NSR
MARD0116 206.59 0.35 2.06 0.41 914 0.14 0.05 0.99 0.15 0.2
MARD0129 200.27 2.18 1.55 1.28 917 n/a n/a n/a n/a n/a
incl 200.27 1.03 2.17 2.22 1300 n/a n/a n/a n/a n/a
incl 202.05 0.4 1.7 0.38 900 n/a n/a n/a n/a n/a
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NSR = No Significant Result

*** Holes marked by an asterisk were analysed at BCL Limited’s in-house mining laboratory at the Selebi Phikwe Ni-Cu mine, with checks undertaken at the company’s Phoenix Laboratory at the Tati Ni Mine. All other holes were assayed by SGS South Africa. Identical**

Botswana Metals Limited

Mailing Address Suite 3, 16 Cotham Road, Kew, Victoria 3101 Registered Office Suite 506, Level 5, 1 Princess Street, Kew, Victoria 3101 P: +61 3 9855 1885; F: +61 3 9855 2885 Email info@botswanametals.com.au www.botswanametals.com.au

ABN 96 122 995 073

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QAQC protocols and sample handling/preparation techniques were employed across all holes. QAQC analysis for all samples from each laboratory was deemed to be within acceptable limits. The BCL Limited laboratory at Tati-Ni is SANAS accredited to the ISO 17025 international standard. The in-house laboratory at the Selebi Phiwke Ni-Cu mine is currently un-certified. Assay techniques and detection limits are detailed in the Appendix 1 - JORC 2012 Table 1 below.

Patrick Volpe Chairman

The information in this report that relates to Exploration Results is based on, and fairly represents, information and supporting documentation compiled by BML staff on site and provided to Mr Steve Groves who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Groves is a consulting geologist to BML and has previously been employed as the Exploration Manager at BML. Mr Groves 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 Groves consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

APPENDIX 1 – JORC Code, 2012 Edition – Table 1

Section 1 Sampling Techniques and Data

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

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CRITERIA JORC Code Explanation Commentary
Sampling - Nature and quality of sampling (eg cut  Drill core is arranged neatly in 1m
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CRITERIA JORC Code Explanation Commentary	CRITERIA JORC Code Explanation Commentary	CRITERIA JORC Code Explanation Commentary
Sampling	- Nature and quality of sampling (eg cut	 Drill core is arranged neatly in 1m
techniques	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. - Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. - 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	core trays for HQ (typically weathered rocks above the limit of oxidation) and 1.5m core trays for NQ core from competent rock. Core is marked at every metre along an orientation line.  Samples for independent laboratory analysis are collected at appropriate geological and or mineralization boundaries and are generally 1m or less in width.  Spot analysis using an XRF analyser has been undertaken at every 10cm interval across the sulphide mineralised intervals at t h e BML site office in Tshokwe using a portable XRF analyzer (INNOV-X Delta Premium). Industry standards and blanks are used to monitor the calibration of the instrument.  This information is used as a guide to the potential Ni tenor of the sulphides and primarily used to determine appropriate sampling intervals for independent Laboratory

Botswana Metals Limited

Mailing Address Suite 3, 16 Cotham Road, Kew, Victoria 3101 Registered Office Suite 506, Level 5, 1 Princess Street, Kew, Victoria 3101 P: +61 3 9855 1885; F: +61 3 9855 2885 Email info@botswanametals.com.au

www.botswanametals.com.au

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ABN 96 122 995 073

CRITERIA	JORC Code Explanation	Commentary
	nodules) may warrant disclosure of detailed information.	analysis
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 holes referred to in this release have been drilled by Reverse Circulation or HQ Diamond core through the weathered rock and NQ Diamond Core through unweathered rock and the mineralized zones.  All core drilling is standard tube method.  All competent core from the current program is oriented using a spear orientation method.  Historic holes have been either NQ core, HQ core or Reverse Circulation percussion methods.
Drill sample recovery	- Method of recording and assessing core and chip sample recoveries and results assessed. - Measures taken to maximise sample recovery and ensure representative nature of the samples. - 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.	 The core is measured after every run, and the results are compared to the actual run to calculate core recoveries. Core is handled with care to avoid breakage and crumbling. Core is washed and laid onto holding core trays.  HQ core is used on friable ground, rotation speeds and water pressure are monitored to avoid destroying the core. A soft rubber mallet is used to drive out core from the barrel.  No significant core loss or recovery issues have been recorded in the current drill program.
Logging	- Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. - Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. - The total length and percentage of the relevant intersections logged.	 All core will be photographed with beginning, ending and intermediate intervals clearly marked on each box. Core will be photographed prior to sampling or any other procedures that may disturb the initial orientation of the core.  The core will be logged in appropriate detail including identification of lithology, structure, alteration, mineralization and other notable characteristics.  Percentages of core recovery and Rock Quality Descriptor (RQD) will be included in the log. The core recovery will be calculated based on each drill run (interval). The RQD calculation will be based on the total length of core sections recovered that aregreater than 2.0

Botswana Metals Limited

Mailing Address Suite 3, 16 Cotham Road, Kew, Victoria 3101 Registered Office Suite 506, Level 5, 1 Princess Street, Kew, Victoria 3101 P: +61 3 9855 1885; F: +61 3 9855 2885

Email info@botswanametals.com.au

www.botswanametals.com.au

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ABN 96 122 995 073

CRITERIA	JORC Code Explanation	Commentary
		times the core diameter for each drill run or interval.
Sub- sampling techniques and sample preparation	- If core, whether cut or sawn and whether quarter, half or all core taken. - If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. - For all sample types, the nature, quality and appropriateness of the sample preparation technique. - Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. - 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. - Whether sample sizes are appropriate to the grain size of the material being sampled.	 Core is cut along the marked orientation line, half core is sampled for metallurgical test work. The remaining half core is cut for quarter core for lab assaying and storage.  No field duplicates were taken.  For lab dispatch, blanks and certified reference material are inserted at every 5th sample for QAQC.
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. - 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. - 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.	SGS South Africa For all samples the analytical techniques used a four acid digest multi element suite with ICP/OES or ICP/MS finish (25 gram or 50 gram FA/AAS for precious metals). The acids used are hydrofluoric, nitric, perchloric and hydrochloric acids, suitable for silica based samples. The method approaches total dissolution of most minerals. Total sulphur is assayed by combustion furnace. Platinum group elements and gold were assayed by Fire Assay following either Pb or NiS collection followed by ICP-MS finish. BCL Laboratory - Selebi Phikwe  All samples were assayed for Ni and Cu via Aqua Regia and Atomic Absorption Finish to a detection limit of 0.01%  The laboratory at the Selebi Phiwke Ni-Cu mine is currently un-certified. BCL Laboratory – Tati Ni  All samples were assayed for Ni and Cu via XRF (X-ray Fluorescence) to a detection limit of 0.01% (Method PAS 10)  The BCL Limited laboratory at Tati- Ni is SANAS accredited to the ISO 17025 international standard.

Botswana Metals Limited

Mailing Address Suite 3, 16 Cotham Road, Kew, Victoria 3101 Registered Office Suite 506, Level 5, 1 Princess Street, Kew, Victoria 3101 P: +61 3 9855 1885; F: +61 3 9855 2885 Email info@botswanametals.com.au

www.botswanametals.com.au

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ABN 96 122 995 073

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CRITERIA JORC Code Explanation Commentary
Verification - The verification of significant  The data were examined by the
of intersections by either independent or senior personnel on site.
sampling alternative company personnel.  The primary data were audited and
and - The use of twinned holes. verified and then stored in a SQL
assaying - Documentation of primary data, data relational data base.
entry procedures, data verification, data  No data have been adjusted.
storage (physical and electronic)
protocols.
-
Discuss any adjustment to assay data.
Location - Accuracy and quality of surveys used to  The data were recorded in
of data locate drill holes (collar and down-hole longitude/latitude WGS84.
points surveys), trenches, mine workings and  The terrain is largely flat.
other locations used in Mineral  Down hole surveys are carried out
Resource estimation.
- on all holes at 4m intervals using a
Specification of the grid system used.
- Flexit survey tool.
Quality and adequacy of  N/A – All historic drillholes have
topographic control.
been surveyed using DGPS with an
accuracy of <1m.
Data spacing - Data spacing for reporting of  The current drilling is designed to
and Exploration Results. confirm previous drill results,
distribution - Whether the data spacing and distribution collect metallurgical samples and
is sufficient to establish the degree of step out form the know areas of
geological and grade continuity appropriate mineralization.
for the Mineral Resource and Ore Reserve  The drill hole spacing is deemed
estimation procedure(s) and classifications appropriate for achieving the
applied. objectives of the program and will
- Whether sample compositing has enable a maiden JORC 2012
been applied. compliant resource to be
calculated.
Orientation - Whether the orientation of sampling  The drill lines are oriented at
of data in achieves unbiased sampling of approximately 90 degrees to the
relation to possible structures and the extent to strike of both local and regional
geological which this is known, considering the geological trend.
structure - deposit type.  Drill holes are at 55 degree or 60
If the relationship between the drilling angle and orientation of holes does
orientation and the orientation of key address the orientation of
mineralised structures is considered to
structures.
have introduced a sampling bias, this
should be assessed and reported if
material.
Sample - The measures taken to ensure sample  Samples were taken and
security security. transported by BML personnel to
the BML site office Prior to XRF
analyses the samples are locked in
the BML office.
Audits or - The results of any audits or reviews of  The data were examined by the
reviews sampling techniques and data. independent consultant Mr Steve
Groves of Perth in Australia and
considered appropriate.
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Botswana Metals Limited

Mailing Address Suite 3, 16 Cotham Road, Kew, Victoria 3101 Registered Office Suite 506, Level 5, 1 Princess Street, Kew, Victoria 3101 P: +61 3 9855 1885; F: +61 3 9855 2885 Email info@botswanametals.com.au

www.botswanametals.com.au

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ABN 96 122 995 073

Section 2 Reporting of Exploration Results (Criteria in this section apply to all succeeding sections.)

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CRITERIA JORC Code Explanation Commentary
Mineral - Type, reference name/number, location  The results reported in this
tenement and and ownership including agreements or announcement are located in
land tenure material issues with third parties such as PL110/94 which is a granted
status joint ventures, partnerships, overriding Exploration Licence held by African
royalties, native title interests, historical Metals Limited, a 100% owned
sites, wilderness or national park and subsidiary of Botswana Metals
environmental settings. Limited.
- The security of the tenure held at the  PL110/94 is subject to a Joint
time of reporting along with any known Venture agreement with BCL
impediments to obtaining a licence to Limited.
operate in the area.  PL110/94 was recently extended for
a further two years and is in good
standing.
Exploration - Acknowledgment and appraisal of  Interpretations and conclusions in
done by other exploration by other parties. this announcement refer in part to
parties
results generated by historic
exploration work conducted by
Roan Selection Trust, Falconbridge,
Cardia Mining and Botswana Metals.
 Botswana Metals considers all
previous exploration work to have
been undertaken to an appropriate
professional standard.
Geology - Deposit type, geological setting and  The Maibele North Prospect is
style of mineralisation. hosted within the Magogaphate
Shear Zone - a major geological
structural feature, generally
considered to mark the boundary
between the Archaean aged (>2.5
billion year old) Zimbabwean
Craton and the Limpopo Belt or
Limpopo Mobile Zone (LMZ). . The
nickel-copper deposits of Selebi
Phikwe lie within the northern part
of the Central Zone of the Limpopo
Mobile Belt, whilst the nickel
copper deposits of Phoenix,
Selkirk and Tekwane lie in the
Zimbabwean Craton. The Central
Zone of the LMZ comprises
variably deformed banded
gneisses and granitic gneisses,
infolded amphibolites and
ultramafic intrusions that that have
the potential to host Ni-Cu sulphide
mineralization. Ni-Cu-PGE
mineralization at Maibele North and
Airstrip copper is spatially
associated with an ultramafic
intrusion.
Drill hole - A summary of all information material to  A table detailing collar coordinates
Information the understanding of the exploration and relevant directional information
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Botswana Metals Limited

Mailing Address Suite 3, 16 Cotham Road, Kew, Victoria 3101 Registered Office Suite 506, Level 5, 1 Princess Street, Kew, Victoria 3101 P: +61 3 9855 1885; F: +61 3 9855 2885 Email info@botswanametals.com.au

www.botswanametals.com.au

ABN 96 122 995 073

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CRITERIA	JORC Code Explanation	Commentary
	results including a tabulation of the following information for all material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level – elevation above sea level in metres) 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.	of the current drill program is included in the release.
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. - 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 such aggregations should be shown in detail. - The assumptions used for any reporting of metal equivalent values should be clearly stated.	 Where uneven sampling intervals have contributed to an averaged result, the result has been calculated by a weighted average technique that incorporates the interval width of each contributing sample.  A grade cut off of 0.3% and internal dilution of <2m has been used in the calculation of significant intercepts.  No grade truncations have been applied to the data.  The Maibele North ore is interpreted to be genetically and mineralogically similar to the ore treated at the nearby Selebi Phikwe smelter where current recovery grades in the flotation plant average 84% for Ni and 95% for Cu. Where Ni Eqv calculations have been undertaken on historic assay results it has been assumed that similar high recoveries will be achievable. The current drill program has been designed to assess the metallurgical properties of the Maibele North mineralisation and the indicative recoveries will be published in due course.  Given that that the Maibele North project is currently the subject of a Joint Venture with the nearby Mine and Smelter operator, BCL, BML assumes that no impediments in recovering and selling the metals contained in the deposit would exist provided an viable economic resource can be defined.

Botswana Metals Limited

Mailing Address Suite 3, 16 Cotham Road, Kew, Victoria 3101 Registered Office Suite 506, Level 5, 1 Princess Street, Kew, Victoria 3101 P: +61 3 9855 1885; F: +61 3 9855 2885 Email info@botswanametals.com.au

www.botswanametals.com.au

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ABN 96 122 995 073

CRITERIA	JORC Code Explanation	Commentary
Relationship between mineralisation widths and intercept lengths	- These relationships are particularly important in the reporting of Exploration Results. - 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’).	 The precise geometry of the mineralization with respect to the drill hole angle is not known and thus, all drill hole results are reported as down hole length.  The drill holes in the current program are inclined reconnaissance holes based on the average dip of exposed units. The orientation of the mineralization is unknown and true width is unknown.  Geotechnical logging is under way to address the geometry of mineralisation.
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.	 Plan view and/or cross section maps of the reported drill holes are included in this announcement.
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.	 The results in this announcement are interpreted to lie within the plane of a mineralized trend that is coincident with an ultramafic intrusion and encompasses the Maibele North and Airstrip Copper Prospects.
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.	 There is no other material exploration data that have not been previously reported.
Further work	- The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). - Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.	 The Maibele North Prospect is currently the subject of a 6000m drill program of 30 holes designed to verify previous results, obtain metallurgical samples and ultimately to facilitate the calculation of an initial JORC compliant resource for the project.  If a potentially economic resource is defined, then it is envisioned that he project will proceed to Pre-Feasibility Studies.

Botswana Metals Limited

Mailing Address Suite 3, 16 Cotham Road, Kew, Victoria 3101 Registered Office Suite 506, Level 5, 1 Princess Street, Kew, Victoria 3101 P: +61 3 9855 1885; F: +61 3 9855 2885

Email info@botswanametals.com.au

www.botswanametals.com.au

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ABN 96 122 995 073

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APPENDIX 2 – Collar Details of Recent Drill Program
Hole ID East (UTM) North (UTM) Dip AZI Depth (m) RL
MARC0099 633088 7595875 -60 335 255.00 849
MARD0107 633823 7595878 -75 335 550.40 851
MARD0106 632301 7595148 -60 330 376.18 840
MARD0100 632235 7595389 -55 330 183.05 841
MARD0101 632357 7595477 -55 330 140.10 849
MARD0102 632455 7595457 -55 330 175.05 843
MARD0104 632492 7595541 -55 330 125.10 842
MARD0105 632688 7595596 -55 330 203.10 846
MARD0103 632285 7595434 -55 330 156.75 845
MARD0110 632523 7595492 -55 330 180.06 844
MARD0126 632436 7595546 -55 330 110.00 845
MARD0127 632391 7595532 -55 330 110.15 839
MARD0123 632432 7595400 -55 330 242.30 846
MARD0130 632285 7595515 -55 330 80.20 850
MARD0108 632384 7595354 -55 330 227.1 843
MARD0136 632314 7595274 -55 330 275.60 840
MARD0109 632367 7595405 -55 330 212.05 846
MARD0132 632082 7595359 -55 330 95.15 846
MARD0133 632111 7595296 -55 330 140.15 847
MARD0134 632124 7595378 -55 330 92.20 845
MARD0131 632163 7595393 -55 330 124.2 844
MARD0137 632630 7595499 -55 330 220.00 844
MARD0122 632611 7595586 -55 330 150.06 849
MARD0119 632642 7595588 -55 330 170.10 845
MARD0128 632731 7595636 -55 330 200.20 851
MARD0135 632196 7595334 -55 330 170.20 844
MARD0139 632692 7595511 -55 330 246.00 847
MARD0124 632781 7595551 -60 330 300.90 849
MARD0121 632512 7595615 -55 330 85.20 849
MARD0125 632581 7595638 -55 330 100.00 851
MARD0120 632800 7595610 -60 330 260.00 850
MARD0138 632734 7595520 -55 330 263.25 851
MADD0117 632258 7595346 -55 330 229.56 842
MADD0111 632340 7595376 -55 330 19.23 847
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Botswana Metals Limited

Mailing Address Suite 3, 16 Cotham Road, Kew, Victoria 3101 Registered Office Suite 506, Level 5, 1 Princess Street, Kew, Victoria 3101 P: +61 3 9855 1885; F: +61 3 9855 2885

Email info@botswanametals.com.au

www.botswanametals.com.au

ABN 96 122 995 073

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Hole ID East (UTM) North (UTM) Dip AZI Depth (m) RL
MADD0118 632340 7595376 -55 330 260.12 847
MADD0142 632546 7595453 -55 330 240 845
MADD0141 632711 7595556 -55 330 270 850
MARD0113 633128 7595916 -60 330 215.10 859
MARD0112 633081 7595891 -60 330 244.13 850
MARD0115 633036 7595864 -60 330 250.15 848
MARD0114 633172 7595941 -60 330 185.02 852
MARD0116 632943 7595734 -60 330 248.15 851
MARD0129 632868 7595699 -55 330 245.60 853
MADD0140 632807 7595614 -55 330 250 853
MADD0144 632971 7595791 -55 330 296 853
MADD0143 633152 7595866 -55 330 250 853
MADD0145 632894 7595656 -55 330 280 854
MADD0146 632966 7595689 -55 330 292 853
MADD0147 632992 7595757 -55 330 323.3 850
MADD0148 633132 7595810 -55 330 302.35 849
MADD0149 633067 7595807 -55 330 253 856
MADD0150 633218 7595856 -55 330 320 857
MADD0151 632048 7595209 -55 330 260.3 846
MADD0152 632015 7595275 -55 330 158.3 846
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Botswana Metals Limited

Mailing Address Suite 3, 16 Cotham Road, Kew, Victoria 3101 Registered Office Suite 506, Level 5, 1 Princess Street, Kew, Victoria 3101 P: +61 3 9855 1885; F: +61 3 9855 2885 Email info@botswanametals.com.au www.botswanametals.com.au