Phoenix Copper Limited

ABN 67 127 446 271

Level 1, 135 Fullarton Road

Rose Park, SA 5067

Australia

Telephone +61 (0) 8 8364 3188

Facsimile +61 (0) 8 8364 4288 [email protected] www.phoenixcopper.com.au

ASX Announcement 18 June 2015

FURTHER HIGH-GRADE ASSAY RESULTS FROM MOUNT BONNIE DEPOSIT

Highlights:

• Further high-grade assay results received from drilling at Mount Bonnie:

o 15m @ 6.99% Zn, 0.78g/t Au, 157g/t Ag, 0.50% Cu, and 1.14% Pb from 54m in

MBRC016

o 6m (EOH) @ 7.34% Zn, 2.01g/t Au, 216 g/t Ag, 0.52% Cu, and 1.43% Pb from 54m in

MBRC017

• Results confirm that mineralisation continues to the north-west and is still open in this direction and at depth

• Ground EM also supports an untested northerly extension to known mineralisation

Phoenix Copper Limited (ASX: PNX) is pleased to report that assay results from a further three reverse circulation (RC) holes drilled at the Mount Bonnie deposit have been received and continue to demonstrate grade and continuity within the deposit along with the potential of continuing mineralisation to the north-west.

The Mount Bonnie deposit is located on granted Mining Leases within the Hayes Creek Project in the

Pine Creek region of the Northern Territory and is 100% owned by Phoenix Copper.

Zinc, gold and silver sulphide mineralisation

This 12 hole RC drill program (for 1,114 m) at Mount Bonnie was completed in late May (Figure 1 and

Table 1).

Drill holes MBRC16, MBRC17 and MBRC018 were designed to test the continuation of known mineralisation to the north-west, which is a concept supported by recent modelling of electromagnetic (EM) conductors. High-grade massive sulphide mineralisation was intersected in MBRC016 and MBRC017 (Table 2). MBRC018 was abandoned short of planned depth and anticipated mineralisation due to excessive water flows.

Multi-element sulphide mineralisation in hole MBRC016 comprised an appreciable thickness of 15 metres containing 6.99% Zn, 0.78g/t Au, 157g/t Ag, 0.50% Cu, and 1.14% Pb from 54m (an equivalent gold value of 6.65 g/t), which is immediately underneath the oxide open pit (Figure 1). Hole MBRC017 positioned further to the north intersected a 6 metre zone of similar mineralisation containing 7.34% Zn,

2.01g/t Au, 216g/t Ag, 0.52% Cu, and 1.43% Pb from 54m (an equivalent gold value of 8.83 g/t). Unfortunately, technical problems were encountered during drilling (bogging of the rods in the massive sulphides) and drilling was halted, in massive sulphides, above the targeted footwall contact. As a result, the actual thickness of the massive sulphide zone was not determined for this section. Results from this partially drilled hole are significant, and as such this hole will be deepened later with Diamond core to determine the full thickness of massive sulphide mineralisation in this area.

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These results show excellent continuity with previously reported results, and indicate a simple tabular north-west dipping zone of mineralisation, as predicted by modelling of the upper, near surface EM conductor (Figure 1). Importantly, the down-dip continuation of this zone has not yet been drill tested, nor has the lower, deeper conductor which potentially represents new and untested mineralisation. This therefore provides further opportunities to extend the mineralised area, which the Company will aim to undertake later in the year.

Of the assays yet to be received, two drill holes intercepted massive sulphides and four were drilled into the oxide alteration zone. These remaining assays are due before the end of June, and will be a key component of an initial resource estimate at Mount Bonnie to be developed shortly.

Managing Director Comment

Managing Director of Phoenix Copper, James Fox said, "The results from the first six holes drilled at Mount Bonnie demonstrate excellent near-surface continuity of mineralisation and contain high grades of zinc, gold and silver. It is encouraging to see the growth potential of the deposit beyond the areas drilled by way of an untested lower EM conductor which we will aim to test in the next round of drilling. An initial resource at Mount Bonnie will be estimated shortly. When combined with the mineral resources already defined at Iron Blow we feel that sufficient contained metal exists at the Hayes Creek project to justify commencement of a scoping study which will aim to demonstrate the economic potantial of this project."

Mineralisation remains open

Figure 1: Mount Bonnie - only zinc, gold and silver assays are shown (see Table 2). Yellow holes drilled by Phoenix

Copper, blue holes are historic. Red 'wireframes' represent conductive bodies.

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Table 1: Mount Bonnie drill hole details

Table 2: Mount Bonnie significant intersections reported to date

Hole ID	From (m)	To (m)	Interval (m)	Au (g/t)	Ag (g/t)	Zn (%)	Pb (%)	Cu (%)	Au_Eq* (g/t)
MBRC013	37	54	17	1.62	61	5.41	0.45	0.25	4.90
incl. incl.	40 46	42 50	2 4	2.24 3.09	169 42	15.91 10.59	1.96 0.22	0.31 0.61	11.72 8.33
MBRC014	87	101	14	1.53	217	8.09	1.82	0.32	8.63
incl. and	89 107	97 109	8 2	2.41 1.97	328 1	12.61 0.18	2.76 0.01	0.48 0.01	13.28 1.86
MBRC015	16	23	7	0.07	76	0.23	0.01	0.05	1.26
and	48	60	12*	2.57	228	8.37	1.97	0.67	10.29
MBRC016	54	69	15	0.78	157	6.99	1.14	0.50	6.65
incl. and and and and	55 72 84 88 93	62 76 85 89 98	7 4 1 1 5	0.86 0.27 0.12 1.83 1.47	171 56 13 3 1	8.40 2.64 1.72 0.11 0.16	1.43 0.42 0.04 0.02 0.01	0.56 0.09 0.01 0.04 0.01	7.64 2.32 0.98 1.78 1.42
MBRC017	(EOH)	54	60	6	2.01	216	7.34	1.43	0.52	8.83
MBRC018	No Significant Intersection, hole stopped short of target due to excessive water flows

Notes: Significant Intersections reported in the above table are gold equivalent (AuEq) > 0.7 g/t and 1m or greater thickness, High-grade significant intersections are AuEq >= 6 g/t. Metallurgical recoveries and metal prices have been applied in calculating gold equivalent grades. See JORC Code, 2012 Edition - Table 1, section 2 at the back of this release for further details.

* MBRC015 interval 60-61m no sample recovered - interval could be thicker than reported
** MBRC017 technical problems encountered during drilling (bogging of the rods in the massive sulphides)

Assay results from the first six holes drilled at Mount Bonnie are very encouraging as mineralisation has been intercepted beyond the boundaries defined by historic drilling. The overall grades and style of mineralisation, which typically occurs as sphalerite-galena-pyrrhotite rich massive sulphides within a thicker unit of disseminated sulphides, are very similar to those observed at the Iron Blow resource (Table 3), which lies less than 3km to the north-west (Figure 2).

Potential for additional resources

There is still significant opportunity to continue to increase the size of the Hayes Creek project through new economic discoveries in the region and Phoenix Copper will continue to delineate resources and test exploration targets with VMS and gold potential in close proximity to Iron Blow and Mount Bonnie.

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Target stratigraphy can be traced on the surface for at least 10km with numerous additional areas identified within the broader Burnside project to be followed up. A regional exploration program has commenced to map and sample the prospective horizon, and to ground truth new prospective areas.

About the Hayes Creek Project

The Iron Blow and Mount Bonnie deposits form part of Phoenix Copper's Hayes Creek Project within the Pine Creek region of the Northern Territory, 180km south of Darwin (Figure 3). The deposits are situated on granted Mining Leases and are located close to infrastructure, including rail, road, high voltage powerlines and water.

The Iron Blow deposit was upgraded to a JORC (2012) compliant inferred mineral resource estimate by Phoenix Copper in late 2014 (Table 3), and contains approximately 200,000oz of gold, 10.7M oz of silver and 125,000t of zinc at potentially mineable grades (see ASX release 3 November 2014).

During 2015 the Company aims to define sufficient resources at the Hayes Creek project to provide inputs to complete a Scoping Study. The Study, which would be completed by the beginning of 2016, will be used to demonstrate the potential viability of the project and guide further drilling and other testing to allow a full feasibility study.

Table 3: Iron Blow Inferred Mineral Resource Estimate as at 8th October 2014*

Depth	AuEq cut-off (g/t)	Tonnes	AuEq (g/t)	Au (g/t)	Ag (g/t)	Cu (%)	Pb (%)	Zn (%)	ZnEq %
> -90 mRL	0.7	2.2Mt	6.7	2.4	140	0.3	1.0	4.9	11.8
	3.0	0.4Mt	5.6	2.7	71	0.4	0.4	4.1	10.0
Total Inferred Mineral Resource	2.6Mt	6.5	2.4	130	0.3	0.9	4.8	11.5
Total Contained Metal	543,000 oz	203,000 oz	10,700,000 oz	7,000 t	23,000 t	125,000 t	300,000 t

* See ASX release 3 November 2014 for details, 'High Grade Mineral Resource Estimate for Iron Blow Deposit', where further details are provided. All material assumptions and technical parameters underpinning the resource estimate announced on 3 November 2014 continue to apply and have not materially changed. Results of drilling by Phoenix Copper since October 2014 have not been included in the estimate but if they were, they would not likely have a material change on the October 2014 resource estimate.

Iron Blow

2.6Mt @ 2.4g/t Au,

130g/t Ag, 4.8% Zn,

0.9% Pb, 0.3% Cu

Mt Bonnie

8m @ 12.6% Zn,

2.41g/t Au, 328g/t

Ag, 0.5% Cu, and

2.8% Pb from 89m

Figure 2: Iron Blow and Mount Bonnie at the Hayes Creek Project

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Figure 3: Hayes Creek Project and the Burnside, Moline and Chessman Exploration Projects

Competent Person's Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Andrew Bennett, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM). Mr Bennett has sufficient experience relevant to the style of mineralisation and the type of deposits 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 Bennett consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

James Fox Peter Taylor

Managing Director & CEO Investor Relations

Telephone: +61 (0)8 8364 3188 Telephone: +61 (0) 412 036 231

Email: [email protected] Email: [email protected]

Website: www.phoenixcopper.com.au

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JORC Code, 2012 Edition - Table 1

Section 1 Sampling Techniques and Data

Criteria JORC Code explanation Commentary

Sampling techniques

Drilling techniques

Drill sample recovery

• Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as downhole 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.

• 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).

• 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.

• All samples are reverse circulation (RC) chips

• All samples were split using riffle splitter mounted to the bottom of the cyclone to obtain a representative sample for analysis

• Sample intervals were 1m

• Sample weights were typically 2-3kg

• Magnetic susceptibility measurements were taken using a Fugro

GSM-2 instrument

• Field portable XRF measurements taken for 32 elements (Ca, Ti, V, Cr, Mn, Fe, Co, Ni, Cu, Zn, As, Rb, Sr, Zr, Mo, Ag, Cd, Sn, Sb, W, Hg, Pb, Bi, Th, U, P, S, Cl, K, Se, Y and Au) using an Olympus-InnovX "DELTA Premium DP4000C" with a Ta/Au anode. The instrument conducts a self-calibration prior to each use and is also checked against standard reference samples

• Mineralised intercepts have been verified using the field portable XRF

instrument which gives a qualitative measure of the relevant elemental abundances

• All drilling was RC drilling from surface with 4.5" rods with a face sampling hammer. Drilling was carried out by May Drilling of Humpty Doo, Northern Territory using a truck mounted EDM2000 drilling rig

• A Reflex Easy Track single-shot survey tool was used by May Drilling at regular intervals (approximately every 30m downhole) as instructed by Phoenix Copper's on-site geologist to monitor the downhole position

• Sample recovery was estimated visually by inspecting the size of the sample collected, and recorded in the geological log at 1m intervals

• No relationship has yet been established between sample recovery and grade. When samples became wet, there was unavoidable loss of fines (typically 5-10% of the sample weight). This has the possibility of introducing a sample bias in deeper parts of some holes. Geological logs include the wet or dry nature of the sample

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Criteria JORC Code explanation Commentary

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 RC chips have been geologically logged by the onsite geologist at

1m intervals and chip trays have been retained and photographed

• Log fields include lithology, colour, grainsize, texture, veining, sulphide mineralisation, alteration, strength, recovery and sample moisture

• Logs have been aided by the use of magnetic susceptibility and portable XRF measurements on each metre sample

Sub-sampling techniques and sample preparation

Quality of assay data and laboratory tests

• 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.

• 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.

• Riffle splitting at the drill rig provides a 1/8 fraction of the total drilled portion for assay

• All samples were riffle split. The splitter was blown with compressor air and cleaned at the end of each rod (6m) to reduce sample contamination

• All mineralised intercepts and their surrounding ~10m are submitted for assay. Intervals submitted for assay are based on visual and portable XRF readings

• Duplicate field samples were taken each 25th sample by using a second portable riffle splitter to check representivity of samples

• Individual samples are placed in individual sample bags and clearly identified prior to submission to the laboratory for assay

• The sample sizes are appropriate for the grain size of the material being sampled

• Samples were submitted to Northern Australian Laboratories (NAL) in

Pine Creek, Northern Territory

• After crushing and pulverizing to - 100 microns, each sample is roll mixed on a rubber mat after pulverizing, a barren flush is pulverized between each sample, the samples are subjected to a four acid

digest (considered a total digest for the elements of interest) and read using ICP-MS and OES for a suite of elements (lab methods G400 and G340 for ore grade samples). A sub-sample of the pulverized sample is also submitted for conventional fire assay for gold (FA50)

• Phoenix Copper submitted certified reference materials every 25th

sample and also submitted blank quartz material to check laboratory analytical and sample preparation quality

• NAL have internal QAQC procedures, including certified reference materials, duplicates and blanks, results of which are reviewed by NAL prior to reporting to Phoenix Copper

• Visual assessment of the standards, blanks and duplicates shows that a high degree of confidence can be placed in the accuracy and

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Criteria JORC Code explanation Commentary

precision of the assay data

Verification of sampling and assaying

Location of data points

Data spacing and distribution

• 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.

• 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.

• 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.

• The results in this report have no directly comparable Diamond core to determine if sample bias is a possibility in RC drilling. When all results are received, a statistical comparison between RC samples and Diamond core will be undertaken

• External laboratory assays are routinely carried out prior to resource estimation

• All logging has been carried out using standardised logging codes to professional standards. All geological, geotechnical and sampling information has been entered into a digital database which has been validated for sample overlaps and missing data

• All hard copies of information are stored in a secure compound at

site. Digital copies are held on site and at Phoenix Copper's Adelaide office on a backed-up server

• No adjustments to assays have been made. Where gold assay data has been repeated by the lab, the average value has been reported

• Downhole surveys have been collected by a Reflex single shot camera at intervals of 30m. Where magnetic ground was encountered, alternative depths were surveyed

• The drill collars were located using a Garmin GPS Map 60 hand-held GPS unit and verified using a second unit. The drill hole locations are considered accurate to within 7 m and this is sufficient for the nature

of the drilling. All coordinates are quoted using the GDA94 datum and projected to MGA zone 52

• Topography has been accurately measured using a drone survey over the area in 2014

• The drill spacing is irregular, due to the irregular topography and historical mining activities; however the overall drill spacing within the mineralised zone is approximately 15 x 40m, which will be sufficient

to establish the grade continuity. A few scout holes occur at irregular spacings to the north of known mineralisation, but there is no drilling
at all to the south of known mineralisation

• Consistent 1 metre downhole intervals are sampled, which is appropriate for RC drilling and for the thickness of the known mineralisation

• No sample compositing has been carried out

Orientation of • Whether the orientation of sampling achieves unbiased sampling of • The drill holes are oriented to intersect mineralisation close to

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Criteria JORC Code explanation Commentary

data in relation to geological structure

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.

perpendicular to the interpreted orientation of the main zone of mineralisation. Some holes were drilled vertically where space was limited. The mineralisation may be folded in some areas, which could result in the possibility of drill holes being not optimally orientated

• Any biasing effect is yet to be determined

Sample security

Audits or reviews

• The measures taken to ensure sample security. • Logging and sampling has been carried out by Phoenix Copper personnel on site and samples submitted to the laboratory by the same people

• No third parties have been allowed access to the samples

• The results of any audits or reviews of sampling techniques and data. • No audits have been carried out at this point

• A visual comparison of the assay results with the field portable XRF

shows an acceptable correlation between the two

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.

• 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.

• The Mount Bonnie deposit is located within MLNs1033, 1039, 342 and 405

• The deposit and drilling is situated within Pastoral Lease No. 903, Douglas, held by Tovehead Pty Ltd

• The Mineral Leases are in good standing and no known impediments exist

• A 'Sale and Purchase Agreement and Heads of Agreement for Farm In and Joint Venture Agreement' (Agreement) between Phoenix Copper Ltd and Crocodile Gold Australia Pty Ltd was signed on 15

August 2014, the Agreement includes the 100% acquisition of the mineral leases containing Iron Blow and Mount Bonnie. Crocodile Gold retains a 2% royalty on any silver and gold production from
those deposits

Exploration done by other parties

• Acknowledgment and appraisal of exploration by other parties. • Previous exploration at Iron Blow and Mount Bonnie has consisted of oxide mining, geological mapping, surface geochemical sampling and Diamond drilling

• Crocodile Gold carried out some drilling at both deposits in 2011,

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Criteria JORC Code explanation Commentary

which has been inspected and verified by Phoenix Copper, an error in grid transformations was discovered and historical hole positions
have been corrected on the diagrams in the main announcement since the last announcement on 3rd June 2015

• Extensive exploration on the broader tenement package by previous explorers has focused on gold exploration. Numerous base metal prospects have been identified in surface geochemical sampling by these explorers that have not been adequately followed up due to the lower gold values

• Crocodile Gold completed an airborne EM (VTEM) survey over parts of the tenement package. Numerous conductive rocks prospective for base metals have been identified by Phoenix Copper for further ground truthing and follow-up work

Geology • Deposit type, geological setting and style of mineralisation. • Iron Blow and Mount Bonnie are stratabound base metal, silver and gold massive sulphide deposits. They are located within the Mount Bonnie Formation of the South Alligator Group, within the Pine Creek Orogen of the Northern Territory. Both deposits appear to be located at similar stratigraphic positions on opposite limbs of the roughly

north-south trending Margaret Syncline

• Mineralisation is hosted within carbonaceous siltstones and mudstones within the lower portion of the Mount Bonnie Formation. It appears to have formed early in the basin development and has associated footwall alteration consisting of variable proportions of chlorite, amphibole, calcite, silica, and talc with associated vein and disseminated sulphides. The mineralisation appears to be consistent with a volcanic hosted massive sulphide deposit (VHMS) characteristics, or could possibly be related to carbonate replacement style. Further work is required to determine the exact association.

• The massive sulphide mineralisation is dominantly massive pyrrhotite with zones of coarse-grained, high-grade sphalerite, arsenopyrite, chalcopyrite, with lesser galena. Significant silver and gold grades

are also present in previous drillholes within the massive sulphide and within adjacent quartz-veined and brecciated sediments containing significant disseminated and stringer sulphides, which is possibly the vent zone typical of VHMS deposits

• Mineralisation at both Iron Blow and Mount Bonnie is structurally complex and appears to be deformed by the regional deformation events. Structural mapping and logging is continuing to determine

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Criteria JORC Code explanation Commentary

the precise nature, timing, and geometry of the mineralized bodies

Drill hole

Information

Data aggregation methods

• A summary of all information material to the understanding of the exploration 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.

• 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.

• Refer to table and diagram in main announcement for drill summary details

• All samples are of equal length, so no weighted averages are applied

• No high cut-off grades have been applied

• Reported intersections are reported as significant if they occur at a minimum of 0.7 g/t Au, calculated on an equivalence basis. This is consistent with the minimum cut-off grade reported for the Iron Blow resource (JORC 2012) reported 3 November 2014. Mineralised intersections were observed to be coherent and have sharp grade boundaries, but may include narrow intervals of sub-ore grade mineralisation which would be considered as internal dilution if mined by open pit methods

• Higher grade mineralised zones have been reported if coherent downhole intervals >= 6g/t Au (equivalent) is encountered

• Metal equivalent grades assumptions are calculated using the following formula: AuEq g/t = [(Au grade g/t x (Au price oz/31.1034768) x Au recovery) + (Ag g/t x (Ag price oz/31.1034768) x Ag recovery) + (Cu grade % x (Cu price per t/100) x Cu recovery) + (Pb grade % x (Pb price per t/100) x Pb recovery) + (Zn grade % x
(Zn price per t/100) x Zn recovery)] / (Au price per oz/31.1034768). ZnEq % = [(Au grade g/t x (Au price oz/31.1034768) x Au recovery) + (Ag g/t x (Ag price oz/31.1034768) x Ag recovery) + (Cu grade % x (Cu price per t/100) x Cu recovery) + (Pb grade % x (Pb price per t/100) x Pb recovery) + (Zn grade % x (Zn price per t/100) x Zn recovery)] / (Zn price per t/100)

• Metal prices & recoveries used are consistent with the Iron Blow

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Criteria JORC Code explanation Commentary

resource (JORC 2012), reported 3 November 2014. Metal prices: Cu US$7,000t, Pb US2.250/t, Zn US$2,350/t, Ag US$20/oz, Au US$1,300/oz. Recoveries: Cu 70%, Pb 70%, Zn 70%, Ag 90%, Au
90%

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 (e.g. 'down hole length, true width not known').

• The mineralised intersections quoted in this report are very close to true widths - to be confirmed by wireframing and structural analysis

• The geometry of the mineralisation is approximately 45deg NW at Mt Bonnie and most of the drill holes have been drilled towards the SE perpendicular to the 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.

• Refer to main announcement

Balanced reporting

Other substantive exploration data

• 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.

• 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.

• All matters of importance have been included

• All relevant information has been included

Further work • The nature and scale of planned further work (e.g. 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.

• Further work will be assessed on receipt of all assay results from the current drill program. Further drilling will likely be required to find the extent of mineralisation

• Detailed geological interpretations will be done following modelling of the drilling and incorporated with historical data and mapping results

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