ZEOTECH LIMITED — Interim / Quarterly Report 2018

Apr 29, 2018

30/04/2018

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ASX/MEDIA RELEASE

Quarterly Activities Report Quarter Ended 31 March 2018

Highlights

• All assay results from the company’s maiden drill program on Kraaipan Project have been received.

• Drill hole KPRC031 at the S001 Prospect, returned 2m @ 1.72 g/t Au from 65-67 metres.

• S001 Prospect contains historic drill hole KRP077 that intersected 9m @ 1.1g/t Au, incl. 4m @ 2.3g/t Au, located approx. 500 metres to the north of KPRC031.

• S001 Prospect also contains historic drill hole KRP074 that intersected 21m @ 1.1g/t Au, located approx. 800 metres to the east of KPRC031.

• Drill hole KPRC023 at the CEN002 Prospect, returned 6m @ 2.3 g/t Ag and 0.3% Cu from 87-93 metres.

• Results of drilling indicate that the soil sampling exploration technique is successfully delineating encouraging prospects which require future exploration.

• Further exploration work, including infill soil sampling and drilling to follow up these results is currently being planned.

Kraaipan Project

Just prior to the end of 2017, Metalsearch completed its maiden drill program on the Kraaipan GoldNickel-Copper-PGM Project. This program was composed of 32 Reverse-Circulation (RC) drill holes for 2,435 metres and four diamond-core drill holes (DD) for 715.42 metres (Figure 1 & 2). Drill results for this program were received during the first quarter of 2018.

Metalsearch Limited | ASX: MSE

Level 4, 216 St Georges Tce, Perth WA 6000 Australia | PO Box 7315, Cloisters Square WA 6850 Australia P: +61 8 6268 2622 | F: +61 8 6268 2699 | W: metalsearch.com.au

30/04/2018

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ASX/MEDIA RELEASE

RC Drill Holes

Of the 32 RC holes completed, seven were drilled into exploration target S001 (Figure 2); three were drilled into exploration target CEN002; seven were drilled into exploration target NE003; four were drilled into exploration target NE001; seven were drilled into exploration target CEN001; and four were drilled in exploration target NW001.

S001 (Southern Sector)

Exploration target S001 is a gold in soils anomalous zone of at least 2.5 kilometres long and up to 200 metres wide identified from the assay results of soil samples taken in the southern sector of the Kraaipan Gold-Nickel-Copper-PGM Project (Figure 2). Three of the RC holes at the S001 Prospect intersected prospective zones of quartz veining and chlorite-hematite alteration. The best assay results from samples taken from the S001 Prospect during the company’s maiden drill program are:

• 2m @ 1.72g/t Au from 65-67 metres in drill hole KPRC031 using a 0.3g/t Au cut-off.

• 5m @ 0.14g/t Au from 43-48 metres in drill hole KPRC033 using a 0.1g/t Au cut-off.

The prospectivity of the S001 Prospect is increased by the presence of historic RAB drill hole KRP077 that intersected 9m @ 1.1g/t Au, incl. 4m @ 2.3g/t Au, located approximately 500 metres to the south of KPRC031 and historic RAB drill hole KRP074 that intersected: 21m @ 1.1g/t Au, located 800 metres to the east of KPRC031.

CEN002 (Central Sector)

Exploration target CEN002 is composed of two gold in soils anomalous zones of approximately 700 and 600 metres respectively and in close proximity to each other (see ASX Announcement dated 16/10/2017). These gold anomalous zones are interpreted to be hosted within greenstone rocks that are proximal to a major east-west shear zone that could have been a conduit for mineralising fluids.

Two of the RC holes at CEN002 intersected felsic intrusive rocks (interpreted to be alkali feldspathic in composition) and the third (KPRC023) intersected a zone of pervasively chlorite-epidote-quartz altered ironstones that contained abundant fine-grained to very coarse-grained pyrite over a 12 metre interval from 88 metres down hole.

Assay results from samples taken from the CEN002 Prospect show that RC hole KPRC023 intersected 6m @ 2.3 g/t Ag and 0.3% Cu from 87-93 metres using a 1g/t Ag cut-off.

NE003 (Northeast Sector)

Exploration target NE003 is a gold in soils anomalous zone that is 550 metres long and is open to the east-northeast and west-southwest (see ASX Announcement dated 26/09/2017). This gold anomalous zone is directly spatially associated with highly magnetic rocks, which are an excellent chemical trap for gold mineralising fluids.

Metalsearch Limited | ASX: MSE

Level 4, 216 St Georges Tce, Perth WA 6000 Australia | PO Box 7315, Cloisters Square WA 6850 Australia P: +61 8 6268 2622 | F: +61 8 6268 2699 | W: metalsearch.com.au

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ASX/MEDIA RELEASE

30/04/2018

Drilling at NE003 intersected greenstones and ironstones of the Kraaipan Greenstone Belt, as well as the highly magnetic, gabbroic intrusive rocks. Minor disseminated sulphides (mainly pyrite) were intersected in most RC holes, which also appear to also be associated with the highly magnetic, gabbroic intrusive rocks intersected in the diamond-core drill holes.

Assay results from samples taken from the NE003 Prospect show slightly elevated gold and palladium concentrations from 93-97m in drill hole KPRC010.

NE001 (Northeast Sector)

Exploration target NE001 is a gold in soils anomalous zone of at least 3 kilometres long and up to 750 metres wide and is open to the east-northeast and west-southwest (see ASX Announcement dated 26/09/2017). This gold anomalous zone is directly spatially associated with highly magnetic rocks, which are an excellent chemical trap for gold mineralising fluids.

Not only is this zone anomalous for gold but it was also found to be anomalous for nickel, copper and Platinum Group Metals (PGMs) in soils. The Nickel-Copper-PGM anomaly is at least 2 kilometres long and coincides with the thickest part of the gold anomalous zone. This exploration target overlies a remanently magnetised (negative) feature interpreted to be due to mafic/ultramafic intrusive rocks. Mafic/ultramafic intrusive rocks can host magmatic Ni-Cu -PGM sulphides.

Drilling at NE001 intersected highly magnetic, gabbroic intrusive rocks of a similar composition to the mafic intrusive rocks intersected at most other prospects. These mafic intrusives contained minor amounts of disseminated sulphides (mainly pyrite).

Assay results from samples taken from the NE003 Prospect show slightly elevated gold and palladium concentrations from 83-85m in drill hole KPRC022.

CEN001 (Central Sector)

Exploration target CEN001 is a gold in soils anomalous zone of at least 4kms long and up to 200m wide area (see ASX Announcement dated 16/10/2017).

Drilling at CEN001 intersected greenstones and ironstones of the Kraaipan Greenstone Belt, as well as the highly magnetic, gabbroic intrusive rocks. Minor disseminated sulphides (mainly pyrite) were intersected in most RC holes, which also appear to also be associated with the highly magnetic, gabbroic intrusive rocks intersected in the diamond-core drill holes.

Assay results from samples taken from the CEN001 Prospect show no elevated concentrations of economic elements.

NW001 (Northwest Sector)

Exploration target NW001 is a gold in soils anomalous zone of at least 1.4 kilometres long and up to 600 metres wide and is open to the northwest and southeast (see ASX Announcement dated 11/09/2017).

Metalsearch Limited | ASX: MSE

Level 4, 216 St Georges Tce, Perth WA 6000 Australia | PO Box 7315, Cloisters Square WA 6850 Australia P: +61 8 6268 2622 | F: +61 8 6268 2699 | W: metalsearch.com.au

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ASX/MEDIA RELEASE

30/04/2018

Drilling at NW001 intersected highly magnetic, gabbroic to felsic intrusive rocks of a similar composition to the intrusive rocks intersected at most other prospects. These intrusives were locally overprinted by abundant quartz veining and chlorite-hematite alteration associated with variable concentrations of disseminated pyrite ± chalcopyrite.

Assay results from samples taken from the NW001 Prospect show no elevated concentrations of economic elements.

DD Drill Holes

Of the four DD holes: two were drilled into the KB05 EM anomaly exploration target (see ASX Announcements dated 2/11/2017 and 23/10/2017 for details); one was drilled into the KB04 EM anomaly exploration target (see ASX Announcements dated 2/11/2017 and 25/07/2017 for details); the last was drilled into KB01 EM anomaly exploration target (see ASX Announcements dated 2/11/2017 and 23/10/2017 for details).

All DD drill holes intersected disseminated to semi-massive sulphides over varying thicknesses around the proposed target depths from the EM plate modelling (See ASX Announcement dated 11/12/2017 for details). The sulphides are mainly pyrrhotite and pyrite (iron sulphides) hosted within magnetite-rich rocks. These sulphide zones are also interpreted to be associated with proximal gabbroic intrusive rocks that were also intersected in these drill holes. The gabbroic intrusive rocks contain highly magnetic layers/zones and appear to correspond with the strongly negatively magnetised zones observed in the regional aeromagnetic dataset, that were previously interpreted to be the result of mafic intrusives. The current interpretation of the sulphide mineralisation (and associated alteration) identified is that it is a result of the interaction between the gabbroic, mafic intrusive rocks and the magnetite-rich Banded Iron Formations (BIF) of the Kraaipan Greenstone Belt.

Assay results from samples taken from these disseminated to semi-massive sulphides show only very minor elevated gold, palladium and platinum concentrations.

Metalsearch Limited | ASX: MSE

Level 4, 216 St Georges Tce, Perth WA 6000 Australia | PO Box 7315, Cloisters Square WA 6850 Australia P: +61 8 6268 2622 | F: +61 8 6268 2699 | W: metalsearch.com.au

30/04/2018

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ASX/MEDIA RELEASE

Figure 1: Location of the drill holes (white squares) completed in the Northeast, Northwest and Central sectors of the Kraaipan Gold-Nickel-PGM Project displayed on a regional aeromagnetic data pseudocolor image. EM targets shown in green stars and gold anomalous soil zones in yellow dashed lines.

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Metalsearch Limited | ASX: MSE

Level 4, 216 St Georges Tce, Perth WA 6000 Australia | PO Box 7315, Cloisters Square WA 6850 Australia P: +61 8 6268 2622 | F: +61 8 6268 2699 | W: metalsearch.com.au

30/04/2018

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ASX/MEDIA RELEASE

Figure 2: Location of the drill holes (white squares) completed at the S1 Prospect in the Southern Sector of the Kraaipan Gold-Nickel-PGM Project displayed on a regional aeromagnetic data pseudocolor image. EM targets shown in green stars and gold anomalous soil zones in yellow dashed

lines.

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Metalsearch Limited | ASX: MSE

Level 4, 216 St Georges Tce, Perth WA 6000 Australia | PO Box 7315, Cloisters Square WA 6850 Australia P: +61 8 6268 2622 | F: +61 8 6268 2699 | W: metalsearch.com.au

30/04/2018

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ASX/MEDIA RELEASE

Proposed Exploration Activities

Metalsearch plans to continue to advance the Kraaipan and Kraaipan West projects (Figure 3) through:

• 1) Analysis of the rest of the approximately 14,000 regional soil samples for low detection Au and PGMs, as well as ‘Pathfinder’ elements such as As, Bi, Ag, Cu, Mo, Sb, Sn, Sc, Zn, etc.;

• 2) Infill soil sampling in areas of anomalous geochemistry to better define the distribution of anomalism;

• 3) Complete a similar soil sampling survey over southern part of the Kraaipan West Gold-NickelCopper-PGM Project where the Kalahari cover is the shallowest;

• 4) Complete further electromagnetic surveys in the northeastern sector of the Kraaipan GoldNickel-Copper-PGM Project, which was not covered by the historic EM survey;

• 5) Further drilling to follow up the encouraging exploration drill results at S001 Prospect; and

• 6) Further drilling to follow up the encouraging exploration drill results at CEN002 Prospect.

Currently, Metalsearch is exploring the possibility of funding these proposed exploration activities through a Farm-in/JV.

Corporate

Metalsearch has significantly increased its project generation activities in order to bring another project into the company.

Metalsearch Limited | ASX: MSE

Level 4, 216 St Georges Tce, Perth WA 6000 Australia | PO Box 7315, Cloisters Square WA 6850 Australia P: +61 8 6268 2622 | F: +61 8 6268 2699 | W: metalsearch.com.au

ASX/MEDIA RELEASE

30/04/2018

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Tenement Information as required by Listing Rule 5.3.3

The following is a table setting out the information as required by ASX Listing Rule 5.3.3, namely:

1. Mining tenements held at the end of the Quarter and their location;

2. Mining tenements disposed during the Quarter and location;

3. Beneficial percentage interests held in farm-in or farm-out agreements at end of Quarter; and

4. Beneficial percentage interests held in farm-in or farm-out agreements acquired or disposed of during the Quarter.

Location	Tenement	Interest at beginning of quarter (%)	Interests relinquished, reduced or lapsed (%)	Interests acquired or increased (%)	Interest at end of quarter (%)
Botswana	PL232/2016	100%	Nil	Nil	100%
Botswana	PL064/2017	100%	Nil	Nil	100%
Botswana	PL065/2017	100%	Nil	Nil	100%

For further information please visit www.metalsearch.com.au or contact:

Dr Quinton Hills – CEO Metalsearch Limited Tel: +61 8 6268 2688 Email: quinton@metalsearch.com.au

Competent Person Statement

The information in this report that relates to Exploration Results is based upon information prepared and reviewed by Dr Quinton Hills who is a Member of the Australasian Institute of Mining and Metallurgy (No. 991225). Dr Hills is an employee of Metalsearch Limited and 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 Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Hills consents to the inclusion in this report of the matters based on information in the form and context in which it appears.

Metalsearch Limited | ASX: MSE

Level 4, 216 St Georges Tce, Perth WA 6000 Australia | PO Box 7315, Cloisters Square WA 6850 Australia P: +61 8 6268 2622 | F: +61 8 6268 2699 | W: metalsearch.com.au

30/04/2018

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ASX/MEDIA RELEASE

Figure 3: Location of the Kraaipan and Kraaipan West Gold-Nickel-Copper-PGM projects in relation to the Harmony’s Kalgold Mine and the African Rainbow Minerals’ Kalplats Project in South Africa.

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Metalsearch Limited | ASX: MSE

Level 4, 216 St Georges Tce, Perth WA 6000 Australia | PO Box 7315, Cloisters Square WA 6850 Australia P: +61 8 6268 2622 | F: +61 8 6268 2699 | W: metalsearch.com.au