YOJEE LIMITED — Capital/Financing Update 2014

Aug 19, 2014

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ASX Release

20 August 2014

**Southern

Crown Resources
Limited**

ABN:
52
143
416
531 Level
1,
Suite
2 415
Riversdale
Road HAWTHORN
EAST
VIC
3123 T: (+61)
3
9813
3882 F: (+61)
3
9813
4882 www.southerncrown.com.au

Contact:

Rhod
Grivas Executive
Director T: +61
419
919
321 rhod.grivas@southerncrown.com.au

**Directors

/
Officers:**

Rhod
Grivas Mark
Papendieck Adrian
Hill

**Issued

Shares
and
Options:**

Shares:
30
million Unlisted
options:
1.5
million

ASX
Code: SWR

**SOUTHERN

CROWN
TAKES
OPTION
OVER EXTENSIVE
GOLD/COPPER/SILVER
PROJECTS
IN WORLD
CLASS
GOLD
BELT**

Highlights

• Southern
  Crown
  has
  signed
  an
  option
  agreement
  to
  explore
  in
  the same
  belt
  as
  the
  giant
  45Moz
  Donlin
  Creek
  gold
  deposit,
  in
  southwest Alaska.

• The
  key
  Luna–Quicksilver
  prospect
  contains
  two
  large
  un-­‐drilled outcropping
  semi-­‐massive
  sulphide
  stockworks,
  1.2km
  apart
  in
  an accessible
  river
  valley,
  providing
  an
  exciting
  window
  into
  the
  sub-­‐ surface
  potential.

• Rockchip
  and
  channel
  sampling
  of
  Luna
  stockwork
  outcrop
  has returned
  up
  to
  64.7g/t
  Au
  &
  74g/t
  Ag.

• Rockchip
  and
  channel
  sampling
  of
  Luna
  East
  sulphide
  outcrop
  has returned
  up
  to
  1.2%
  Cu,
  90g/t
  Ag.

• During
  the
  negotiation
  phase,
  Southern
  Crown
  has
  conducted detailed
  ground
  magnetics.

• Scout
  bedrock
  drilling
  to
  commence
  this
  month
  to
  focus
  follow-­‐up core
  drilling.

• Allan
  Kelly,
  Director
  of
  Afranex
  and
  MD
  of
  Doray
  to
  join
  Southern Crown
  as
  technical
  advisor.

The
Directors
of
Southern
Crown
Resources
Limited ("Southern
Crown" or “the Company”) are
pleased
to
report
the
signing
of
an
exclusive
option
agreement (“Option”)
to
explore
and
acquire
a
package
of
projects
with
highly
prospective multi
metallic
targets
located
500km
west
of
Anchorage
in
the
South
West Tintina
gold
belt
of
Alaska.

The
Option
includes
3
projects
(Luna-­‐Quicksilver,
Kisa
and
Chilly),
totaling 138km[2] .
The
Tintina
Gold
belt
is
home
to
a
number
of
world
class
intrusion related
gold
(“IRG”)
systems
including
Donlin
Creek
(45Moz@
2.21g/t),
Pogo (5Moz
@
12.45g/t),
Fort
Knox
(produced
over
5Moz),
Livengood
(20Moz
@ 0.55g/t)
and
Shotgun
(0.7Moz
@1.02g/t).

Southern
Crown’s
Chairman,
Rhod
Grivas
commented: “ Luna-­‐Quicksilver represents
an
exciting
untested
IRG
system
that
has
all
the
hallmarks
of
a world
class
system
such
as
Donlin
Creek.
This
opportunity
provides
a
near-­‐ ready
drill
target
and
a
deal
structure
that
minimizes
dilution
of
existing shareholders
and
shares
exploration
risk
with
the
project
vendor.

Two
mineralised
stockwork
outcrops
1.2km
apart
in
a
system
that
is
over 700m
wide
and
striking
over
5km
is
an
attractive
target
in
this
belt” .

Page
1
of
13

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Figure
1:
Tintina
gold
belt
showing
project
area
in
SW
Alaska,
200km
from
Donlin
Creek
deposit

**TINTINA

GOLD
BELT
INTRUSION
RELATED
GOLD
SYSTEMS**

Luna–Quicksilver
and
the
other
optioned
projects
share
many
of
the
characteristics
of
Donlin
Creek
and
the
local IRG
system
deposits
located
in
the
Tintina
gold
belt.
Some
IRG
system
ore
bodies
are
associated
with
placer deposits
proximal
to
young
intrusions
emplaced
in
sediments.
Luna-­‐Quicksilver
is
located
within
10
kilometres
of two
historical
placers,
one
on
a
drainage
system
draining
west,
the
other
draining
north.
Luna-­‐Quicksilver
is
also associated
with
a
pluton
and
associated
felsic
dykes
and
sills
that
have
hornfelsed
and
altered
surrounding sediments.

Structural
setting
is
important
for
the
development
of
IRG
system
deposits.
Luna-­‐Quicksilver
and
the
other optioned
projects
are
located
along
a
NE
structural
corridor
with
apparent
strike
slip
movement
and
evidence
of additional
cross-­‐cutting
complexity.
In
addition
IRG
system
mineralization
is
poly-­‐metallic
and
varied
depending
on proximity
to
the
intrusion,
the
Luna-­‐Quicksilver
veins
are
located
in
quartz-­‐carbonate
stockworks
with
anomalous gold,
silver,
antimony,
bismuth,
arsenic,
molybdenum,
tellurium
and
tin
with
Luna
East
also
highly
anomalous
in copper.

Page
2
of
13

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**OPTION

TERMS**

Southern
Crown
has
signed
the
Option
with
Afranex
Gold
Ltd
(“Afranex”),
an
unlisted
Australian
company
to acquire
the
companies
that
hold
the
rights
to
100%
of
the
three
projects
with
an
expiry
date
4
months
after
the completion
of
1,200m
of
core
drilling
or
31
December
2015
whichever
occurs
first.
Full
details
of
the
Option Agreement
are
provided
in
Appendix
1.

Afranex
was
founded
by
Allan
Kelly
(Managing
Director
and
co-­‐founder
of
ASX-­‐listed
Doray
Minerals
Ltd)
who
spent time
in
North
America
working
for
Western
Mining
Corporation
in
the
late
1990’s.
Southern
Crown
has
asked
Allan to
join
the
Company
as
technical
advisor
to
provide
on-­‐going
exploration
input.

On
exercising
the
Option,
Southern
Crown
is
required
to
issue
30
million
ordinary
shares,
with
the
major
vendor shareholder
group
subject
to
a
voluntary
12
month
escrow
period.
The
Company
has
agreed
to
pay
up
to
$100,000 to
Afranex
to
cover
exploration
and
corporate
costs.

Afranex
has
an
option
agreement
with
Gold
Crest
Mines
Inc
(“Gold
Crest”)
and
Kisa
Gold
Mines
Inc
(“Kisa
Inc”)
over the
Luna,
Kisa
and
Chilly
Projects
as
well
as
purchase
agreements
over
the
Quicksilver
Project
with
Black
Peak
LLC,
a subsidiary
of
ASX
listed
Renaissance
Minerals
Ltd
(ASX:RNS)
and
North
Quicksilver
Project
with
North
Fork
LLC,
a subsidiary
of
North
Fork
Pty
Ltd.
Afranex
also
has
an
option
to
acquire
Kisa
Inc’s
interest
in
the
Luna,
Kisa
and
Chilly projects
by
paying
US$300,000
before
31
December
2015.

Figure
2:
Luna-­‐Quicksilver,
Kisa
and Chilly
project
locations

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Page
3
of
13

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**LUNA-­‐QUICKSILVER

PROJECT**

The
Luna-­‐Quicksilver
project
has
undergone
sporadic
exploration
since
2006
with
no
previous
drilling,
hamstrung by
limited
budgets
and
lack
of
focus.
Several
phases
of
geological
mapping,
surface
geochemistry
and
geophysics have
highlighted
mineralization
over
5km
of
strike
in
a
much
larger
40km
mineralised
structure.
A
shear
zone
with over
700m
of
width
has
been
mapped
along
the
river
beds
underneath
alluvial
cover,
representing
the
potential
for a
big
target
system
close
to
the
surface.

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Figure
3:
Photo
showing
Luna
stockwork
veins
in
the
accessible
valley
and
Quicksilver
located
up
to 500m
vertical
above
the
valley
floor

The
Luna-­‐Quicksilver
project
consists
of
the
50
Luna
claims,
owned
by
Kisa
Inc,
the
70
Quicksilver
claims
owned
by Black
Peak
LLC
and
13
North
Quicksilver
claims
owned
by
North
Fork
LLC,
totaling
an
area
of
86km[2] .

The
Luna claims
were
first
staked
in
mid-­‐2007
after
a
regional
scale
geophysics
survey
highlighted
an
anomaly
associated with
a
regional
scale
structure.
Systematic
stream
sediment
sampling,
rock
chip
sampling
and
geological
mapping led
to
the
discovery
of
the
Luna
outcrop.
At
approximately
the
same
time
the
Quicksilver
area
was
staked
following a
similar
geochemical
and
geological
mapping
approach
led
to
the
discovery
of
mineralization
located
on
the
ranges above
the
valley.

A
total
of
41
stream
silt
samples
collected
by
Kisa
Inc
in
2007,
from
streams
draining
the
Luna
prospect
area
outline a
distinct
25km[2] gold,
arsenic,
and
antimony
anomaly.
Silt
samples
returned
values
up
to
1052
ppb
gold;
this maximum
assay
comes
from
a
sample
located
in
the
creek
below
the
main
Luna
outcrop.

In
excess
of
100
rock
chip
samples
have
been
collected
from
the
Luna
prospect
area
with
many
containing anomalous
gold,
with
values
as
high
as
64.7g/t
Au
reported.
Gold
is
associated
with
anomalous
arsenic
(above
1% As),
antimony
(up
to
187
ppm
Sn),
bismuth
(up
to
36
ppm
Bi),
molybdenum
(up
to
64
ppm
Mo),
silver
(up
to
74 ppm
Ag)
and
copper
(up
to
1.2%
Cu).

Page
4
of
13

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At
the
Quicksilver
prospect,
in
excess
of
150
rock
chips
have
been
collected,
with
a
maximum
of
36.1g/t
Au,
56.2g/t Ag,
555ppm
Bi,
717ppm
Sb,
17.9ppm
Te,
215ppm
Mo.

Southern
Crown
conducted
a
due
diligence
rock
chip
and
channel
sampling
program
over
the
Luna
and
Luna
East outcrops.
Rock
chip
sampling
confirmed
the
anomalous
nature
of
both
outcrops
with
a
maximum
of
2.9g/t
Au, 10.6g/t
Ag
from
Luna
(plus
anomalous
As,
Sn,
Bi,
Mo,Te).
Interestingly,
at
Luna
East
all
veins
sampled
returned highly
anomalous
copper
with
all
above
0.25%
Cu
and
with
a
maximum
of
0.57%
Cu,
with
up
to
32.5g/t
Ag
and 0.19g/t
Au.

Channel
sampling
at
Luna
and
Luna
East
located
a
mixture
of
altered
sediments
and
dyke
and
sill
intrusions
with stockwork
quartz-­‐carbonate
veins.
Blebs
of
iron
oxide
after
sulphides
as
well
as
arsenopyrite
in
veins
were
evident. The
Luna
channel
highlighted
a
110ft
(35m)
wide
zone
of
anomalous
gold
(+0.1ppm
Au),
silver
(+0.08ppm
Ag), arsenic
(+100ppm
As),
antimony
(+3ppm
Sb)
and
tin
(+4ppm).
The
Luna
East
channel
highlighted
a
40ft
(12m)
wide zone
of
anomalous
gold
(+0.06ppm
Au),
silver
(+0.80ppm
Ag),
arsenic
(+400ppm
As),
antimony
(+2.5ppm
Sb),
tin (+4ppm
Sn)
and
tungsten
(+4ppm
W).

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Figure
4:
Luna-­‐Quicksilver
showing
outcropping
veins
in
structural
corridor

Page
5
of
13

==> picture [153 x 68] intentionally omitted <==

Prospect	Sample ID	Easting	Northing	Au g/t	Ag g/t	Cu %
Luna	AF-13-05	473299	6700278	64.7	74.1	0.01
Luna	209653	473342	6700192	25.6	-	-
Luna	NDR29312	473436	6700170	12.5	28.2	-
Luna	NF022	473171	6700768	2.1	7.08	-
Luna	LNVN202	473306	6700278	2.90	5.4	0.03
Luna	LNVN208	473285	6700298	2.20	10.6	0.13
Luna East	NF029	474351	6700927	1.25	21.2	0.23
Luna East	NF190	474369	6700933	3.52	31.7	0.35
Luna East	NF191	474370	6700925	1.23	25.5	0.34
Luna East	NF194	474344	6700929	3.72	45.0	0.34
Luna East	NF026	474421	6701022	0.25	89.8	1.20
Luna East	AF-13-02	474425	6701024	0.40	75.8	1.08
Luna East	LNEVN101	474417	6701019	0.11	32.5	0.57
Luna East	LNEVN103	474428	6701016	0.19	23.2	0.55
Quicksilver	QS060	478861	6703286	8.38	56.2	-
Quicksilver	QS070	476858	6703290	2.66	8.58	-
Quicksilver	QF077	476436	6703079	8.67	35.5	-
Quicksilver	QS084	477093	6703315	11.0	15.6	-
Quicksilver	QS093	476773	6703184	13.2	3.1	-
Quicksilver	QS099	476635	6703404	36.1	7.9	-
Quicksilver	MH58AK	476516	6703334	37.6	-	-
Quicksilver	MH82AK	476301	6702985	8.16	-	-
Quicksilver	PS95AK	476271	6702620	3.31	-	-

Table
of
results
(coordinates
in
UTM
Z4
NAD83)

**OTHER

PROJECTS
(Kisa
and
Chilly
Projects)**

Two
other
projects
are
included
in
the
Option,
these
include
the
Kisa
and
Chilly
projects
(Figure
2).

The
Kisa
project
comprising
38
claims
(23.6km[2] )
and
located
14km
SE
of
Luna-­‐Quicksilver
was
discovered
as
a colour
anomaly
that
is
visible
from
air-­‐photography
as
a
‘rusty’
orange
oxidized
zone.
Geochemistry
and
geological mapping
located
a
breccia
pipe
measuring
500m
x
300m
as
well
as
numerous
dyke
and
sills.
Six
core
holes
were drilled
into
the
breccia
pipe
in
2007
locating
widespread
low
level
gold
anomalism
with
the
best
results
126m
@ 0.65g/t
Au
from
K07-­‐05
(483,432E,
6,690,936N
–
UTM
Zone
4
NAD83,
-­‐40deg
dip,
90
deg
azimuth).

Page
6
of
13

==> picture [153 x 68] intentionally omitted <==

Chilly
comprises
44
claims
(28.5km[2] )
and
is
located
50km
SW
of
the
village
of
Sleetmute.
The
claims
were
pegged
as anomalous
streams
draining
from
a
granodiorite
intrusion
adjacent
to
a
bounding
regional
Tintina
fault.
First
pass exploration
was
conducted
in
2008
including
geological
mapping
and
ridge
and
spur
soil
sampling
where
possible. Soil
sampling
identified
a
500m
long
gold
anomaly
(>100ppb
Au)
with
a
larger
coincident
arsenic
anomaly (>250ppm
As).

**2014

EXPLORATION**

In
order
to
make
the
most
of
the
current
field
season,
Southern
Crown
commenced
exploration
this
month
prior
to signing
the
Option,
with
a
ground
magnetic
survey
on
100m
line
spacing
over
3.75km
strike
of
the
Luna
and
Luna East
shear
zone.

In
addition,
channel
sampling
has
commenced
along
the
river
banks
below
the
overburden.
The
channel
sampling involves
digging
away
up
to
0.5m
of
contaminated
soil
and
rock
cover
to
expose
underlying
saprolite
and
bedrock. Work
done
during
the
due
diligence
has
indicated
that
this
is
an
effective
way
of
channel
sampling
and
geological mapping
of
the
saprolite/bedrock,
similar
to
what
would
be
achieved
by
trenching
several
metres
through
the overburden.

Later
in
the
season
the
Company
is
planning
a
bedrock
scout
drilling
program
to
expand
on
the
knowledge
of
the Luna
and
Luna
East
outcrop
as
well
as
the
channel
sampling
and
provide
a
drill
ready
target
for
the
next
field season.

It
is
expected
the
exploration
program
will
cost
in
the
order
of
A$500,000,
including
rents,
minimum
commitments on
tenure,
ground
magnetics
at
Luna,
heli-­‐magnetics
at
Chilly,
channel
sampling,
remote
exploration
at
Chilly
and Kisa
and
bedrock
drilling
at
Luna-­‐Quicksilver.

**For

further
information
please
contact:**

**Rhod

Grivas**

Chairman Ph:
+61
419
919
321

Competent Person’s Statement

The
information
in
this
report
that
relates
to
Exploration
Targets,
Exploration
Results,
Mineral
Resources
or
Ore
Reserves
is
based
on
information compiled
by
Mr
Rhoderick
Grivas,
an
employee
of
the
Company
and
a
Competent
Person
who
is
a
Member
of
The
Australasian
Institute
of
Mining and
Metallurgy
and
the
Australian
Institute
of
Geoscientists.
Mr
Grivas
has
sufficient
experience
that
is
relevant
to
the
style
of
mineralisation
and type
of
deposit
under
consideration
and
to
the
activity
being
undertaken
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
Grivas
consents
to
the
inclusion
in
the
report
of the
matters
based
on
his
information
in
the
form
and
context
in
which
it
appears.

Page
7
of
13

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==> picture [379 x 252] intentionally omitted <==

Luna
Prospect

Luna
East
Prospect with
Quicksilver
in background

==> picture [410 x 273] intentionally omitted <==

Page
8
of
13

==> picture [153 x 68] intentionally omitted <==

**APPENDIX

1**

**Option

Terms**

Under
the
Option,
Southern
Crown
has
the
right
to
explore
the
Luna-­‐Quicksilver,
Kisa
and
Chilly
Projects
located
in Alaska
in
which
Afranex,
an
unlisted
Australian
company,
has
an
interest.
Subject
to
Southern
Crown
being
satisfied with
the
results
of
its
exploration,
Southern
Crown
has
also
been
granted
an
option
by
the
major
shareholders
of Afranex
(“Major
Shareholders”),
representing
approximately
60%
of
the
Afranex
shares
expected
to
be
on
issue
as at
the
completion
date,
to
acquire
their
respective
shares
in
Afranex.

The
Option
expires
4
months
after
the
completion
of
1,200m
of
core
drilling
or
31
December
2015
whichever occurs
first.
During
the
term
of
the
Option,
Southern
Crown
will
be
required
to
keep
the
projects
in
good
standing and
meet
up
to
$100,000
of
expenditures
on
the
Luna-­‐Quicksilver,
Kisa
and
Chilly
projects,
excluding
any
liabilities arising
from
conduct
prior
to
the
date
of
the
Option.
The
current
holders
of
each
of
those
projects
have
all
agreed to
grant
Southern
Crown
access
to
the
projects
for
the
purpose
of
undertaking
its
exploration.

Upon
exercise
of
the
Option,
consideration
for
100%
of
Afranex
will
be
30
million
shares
in
Southern
Crown.
Certain of
those
shares
will
be
subject
to
a
12
month
voluntary
escrow
period.

Afranex
has:

• an
  option
  agreement
  with
  Gold
  Crest
  and
  Kisa
  Inc
  to
  acquire
  either
  Gold
  Crest’s
  100%
  interest
  in
  Kisa
  Inc
  or alternatively
  to
  acquire
  Kisa’s
  interest
  in
  each
  of
  the
  Luna,
  Kisa
  and
  Chilly
  Projects
  (“Gold
  Crest
  Option”);

• entered
  into
  a
  purchase
  agreement
  to
  acquire
  100%
  of
  the
  shares
  in
  Black
  Peak
  LLC,
  the
  holder
  of
  the Quicksilver
  Project,
  from
  Renaissance
  Alaska
  Pty
  Ltd,
  a
  subsidiary
  of
  ASX
  listed
  Renaissance
  Minerals
  Limited (ASX:RNS)
  (“Black
  Peak
  Acquisition”);

• entered
  into
  separate
  sale
  agreements
  to
  acquire
  100%
  of
  the
  shares
  in
  North
  Fork
  Pty
  Ltd,
  which
  is
  the
  holder of
  the
  Quicksilver
  North
  Project
  (“North
  Fork
  Acquisition”);
  and

• entered
  into
  an
  agreement
  with
  Allan
  Kelly,
  as
  the
  trustee
  of
  the
  Kelly
  Family
  Trust,
  to
  acquire
  its
  10% beneficial
  interest
  in
  the
  Quicksilver
  Project,
  held
  by
  Black
  Peak
  (“Kelly
  Acquisition”).

Where
Southern
Crown
elects
to
exercise
the
Option
and
acquire
the
shares
of
the
major
shareholders
in
Afranex, completion
of
the
acquisition
is
subject
to
the
satisfaction
of
the
following
conditions
precedent:

• (a) Afranex
  completing,
  or
  being
  entitled
  to
  complete
  the
  North
  Fork
  Acquisition;

• (b) Afranex
  completing
  or
  being
  entitled
  to
  complete
  the
  Black
  Peak
  Acquisition;

• (c) Afranex
  completing
  or
  being
  entitled
  to
  complete
  the
  Kelly
  Acquisition;

• (d) Southern
  Crown
  being
  entitled
  to
  acquire
  100%
  of
  the
  shares
  in
  Afranex;

• (e) there
  being
  no
  options
  remaining
  on
  issue
  in
  Afranex;

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• (f) Afranex
  having
  procured
  the
  execution
  by
  all
  remaining
  Afranex
  shareholders,
  other
  than
  the
  Major Shareholders
  of
  acceptances
  of
  offers
  from
  Southern
  Crown
  to
  acquire
  their
  respective
  Afranex
  shares,
  subject to
  Southern
  Crown
  exercising
  the
  Option;

• (g) each
  of
  the
  Afranex
  shareholders
  waiving
  all
  pre-­‐emptive
  or
  other
  rights
  over
  any
  of
  their
  Afranex
  shares conferred
  under
  the
  Constitution
  of
  Afranex
  or
  any
  shareholder
  agreement
  (if
  any);

• (h) the
  outstanding
  liabilities
  of
  Afranex
  being
  not
  more
  than
  $100,000;

• (i) Southern
  Crown
  and
  Afranex
  obtaining
  all
  statutory
  and
  regulatory
  approvals
  and
  any
  third
  party
  consents
  or waivers
  which
  are
  necessary
  or
  desirable
  to
  complete
  the
  transaction;
  and

• (j) Southern
  Crown
  shareholders
  passing
  all
  resolutions
  required
  under
  the
  Listing
  Rules
  or
  Corporations
  Act
  to give
  effect
  to
  the
  transaction.

Each
of
the
conditions,
other
than
the
condition
referred
to
in
(b)
above,
is
capable
of
being
waived
by
Southern Crown.

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**APPENDIX

2**

**JORC

TABLE
1 Section
1
Sampling
Techniques
and
Data**

Criteria	Explanation	Notes
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. •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 nodules) may warrant disclosure of detailed information.	•Details of surface sampling techniques used by previous explorers have not been sighted however the Competent Person is of the opinion the sampling was done to industry standard for gold exploration. •Sampling completed by the Company was rock chip and channel sampling to industry standard, to ensure representative samples with minimal contamination • Sample weights vary but are nominally 1-3kg
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).	•Kisa Inc drilled HQ core at the Kisa project with a helicopter supported core rig. Core loss was measured with an average of 73% recovery.
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.	•Details have not been provided on methods of recording core samples however core loss in the mineralized intervals was recorded.
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.	•Details of Kisa Inc logging procedures were not sighted by the Competent Person.
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.	•Historical core holes at Kisa were sampled on a nominal 5ft interval but varied from 3ft to 20ft •No details were provided on sub sampling technique although half core remains in a local warehouse and standard half-core sampling techniques are likely to have been used. •ACA Howe on behalf of Afranex collected 26 check samples of the remaining half core for

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Criteria	Explanation	Notes
	•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.	verification purposes. Results were in line with the original analysis for gold.
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.	•Southern Crown and Afranex samples were submitted to ALS Global laboratory in Fairbank. •Sample preparation includes weighing, crushing so 70% passed -2mm then oversize samples were riffle split to 1kg samples and pulverised so 85% passed 75 micron. •Samples were analysed by 50g fire assay with AA finish •No QA-QC was separately conducted on the laboratory QC samples.
Verification of sampling and assaying	•The verification of significant intersections by either independent or alternative company personnel. •The use of twinned holes. •Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. •Discuss any adjustment to assay data.	•Afranex engaged ACA Howe to collected 26 check samples of the remaining Kisa half core for verification. •In addition, both ACA Howe, Afranex and/or Southern Crown have collected rockchip samples of Luna, Luna East and Quicksilver to verify rock chip results
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. •Specification of the grid system used. •Quality and adequacy of topographic control.	•Kisa collars locations were recorded using a resource grade Trimble GPS in NAD83 tied to a LIDAR derived 2m topographic base map •Rock chip and stream samples were located using a handheld GPS giving approx. 5m accuracy
Data spacing and distribution	•Data spacing for reporting of Exploration Results. •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. •Whether sample compositing has been applied.	•Drill hole spacing varied for the Kisa breccia target but was appropriate for first pass drilling.
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. •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.	•Kisa drilling intersected wide low grade mineralization within a large breccia pipe.
Sample security	•The measures taken to ensure sample security.	•Samples collected by Southern Crown were carried by company personnel and consultants and when freighted were tracked.
Audits or reviews	•The results of any audits or reviews of sampling techniques and data.	•No audits were conducted, which is appropriate for the stage.

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JORC
TABLE
1 Section
2
Reporting
of
Exploration
Results

Criteria	Explanation
Mineral tenement and land tenure status	•Afranex employs a permit manager who ensured the tenure documentation is up to date. The claims can be viewed on the Alaska department of Natural Resources website. ACA Howe completed an independent review during April 2013, no independent review has been completed since.
Exploration done by other parties	•Afranex engaged ACA Howe to write a 43-101 standard report on the projects. It details all exploration by other companies. A database and reports has also been provided by previous explorers.
Geology	•The mineralisation is located in a major NE regional shear zone associated with the bounding faults of the Tintina gold belt. Intrusions into the regional belt have hornfels and altered surrounding sedimentary country rock. Mineralisation has been emplaced in and around the intrusions suggesting the Luna-Quicksilver prospects have the potential to be IRG systems..
Drill hole Information	•No drilling has been conducted by Southern Crown or Afranex. Historical drillhole information does not relate to Luna-Quicksilver.
Data aggregation methods	•No data aggregation methods have been used.
Relationship between mineralisation widths and intercept lengths	•No drilling has been conducted by Southern Crown or Afranex. Historical drillhole information that relates to Kisa represents wide low grade mineralization contained within a breccia pipe.
Diagrams	•Diagrams provided show location of projects, location of rockchips results.
Balanced reporting	•Exploration is at an early stage and surface geochemistry and geophysics has been collected over all prospects over a 7 year period. A table of significant results has been provided indicating mineralized outcrops exit within barren country rock. Further bedrock geochemistry is required to determine the potential for any economic mineralisation.
Other substantive exploration data	•None to report.
Further work	•Company is conducting the next stage of exploration which includes ground geophysics and bedrock geochemistry to better locate follow-up targets.

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