Pioneer Resources Limited (ASX: PIO)

QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 31 MARCH 2016

29 April 2016, Pioneer Resources Limited ("Pioneer" or the "Company" (ASX:PIO)) implemented a major change in its growth strategy during the quarter with a diversification into another key, demand driven commodity, resulting in the establishment of a portfolio of quality lithium projects in Western Australia and Canada. Lithium currently has the fastest consumption growth‐trajectory of all strategic metals, due to its burgeoning use in the clean, hybrid‐fuel automotive industry, and the emerging home power storage industry.

MAVIS LAKE Lithium Project - Spodumene Pegmatites in Ontario, Canada

• Option Agreement to acquire an 80% interest in the Mavis Lithium Project

• High grade Drilling intersections from 2011 and 2012: 2.53 % Li2O at Fairservice and 1.51% Li2O at Mavis Lake prospects

• Field work to commence in June 2016: ground magnetic and soil geochemistry surveys, and drilling

  PHILLIPS RIVER Lithium Project - ~100km east of Mt Cattlin Lithium Mine in Great Southern, WA

• Two exploration licences pegged over an area of ~292 km2 considered prospective for lithium

• Two standout lithium anomalies supported by modified pegmatite PEG‐4 index values initially evident

  DONNELLY Lithium Project - in world class Greenbushes Minerals District in WA

• Option Agreement to acquire a 90% interest in the Donnelly Lithium Project

• Located between 12km to 60km from the world class Greenbushes Lithium Mine ‐ the Greenbushes Mineral Field hosts the world's largest pegmatite hosted lithium resource

  PIONEER DOME Lithium Project - Mineralized Pegmatites in the Eastern Goldfields

• Holds an area of ~300 km2 covering 13 outcropping pegmatite clusters over a 20km strike length

• Lithium mineralisation identified in rock chip samples ‐ confirms the presence of LCT pegmatites

  ACRA Gold Project - New Shallow, High Grade Gold Intersections in Aircore Drill holes

• Drilling extends Kalpini South target by 60%, to a strike length of 240m. Extension has coincident EM conductor likely detecting pyrite‐arsenopyrite sulphides - the host to primary gold at Kalpini South

• Drilling generates new targets, highlighting potential for further gold discoveries, including:

KPAC078: 21m at 1.0g/t Au, including 3m at 4.6g/t Au from 42m, at the Deep River Prospect.

CORPORATE

• At 31 March 2016 the Company had cash reserves of $2.05 million and no debt.

• During the quarter the Company subscribed for 1.25 million common shares in International Lithium Corporation (TSX.V:ILC) at an issue price of C$0.08 per share with 625,000 free attaching option warrants which are exercisable at C$0.12 per option by 16 March 2019.

  The ILC investment cost C$100,000 and at 28 April 2016 the common shares had a market value of C$375,000 and the options were in the money by approximately C$140,000. Both classes of securities are escrowed to mid July 2016.

• During the quarter, Pioneer completed a share placement (announced to ASX 24 March 2016) to professional and sophisticated investors of Sanlam Private Wealth Management and Bell Securities Limited by issuing 161,000,000 fully paid ordinary shares in the Company at an issue price of 1.0 cents per share raising

  $1,610,000 (before issue costs).

• On the 29 April 2016 the Company announced that it had undertaken a share placement with professional and sophisticated investors of Sanlam Private Wealth Management by issuing 19,096,318 ordinary shares at an issue price of 2.4 cents per share raising $458,312 (before issue costs).

• With effect from 1 February 2016 the Managing Director and Non‐Executive Directors agreed to a 15% reduction in their annual remuneration reflecting market conditions and cost efficiency programs.

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Figure 1: Pioneer Resources Limited Western Australian Tenement Location Plan. Further tenement information is listed in Appendix 1.

EXPLORATION REVIEW: MARCH 2016.

The Company's exploration strategy is to focus on key global demand‐driven commodities. This is reflected in Pioneer's portfolio of strategically located gold, lithium and other commodity projects in mining regions in WA, plus a its high quality lithium assets in Canada.

Mavis Lithium Project

Pioneer Option to earn up to 80%. Lithium.

Located in the Canadian Province of Ontario, the Company has entered into an Option Agreement and is presently nearing the completion of a 3 month exclusivity and due diligence period, following which it may elect to earn up to an 80% interest in the Mavis Lithium Project, (ASX announcement, 15 March 2016), with its strategic alliance partner, International Lithium Corp. ("ILC") (TSX.V:ILC). The Mavis Lithium Project covers an area of 2624 hectares.

The Agreement, which, provides Pioneer with Immediate, direct exposure to the lithium sector through equity in the Mavis Lithium Project, which has known, strongly mineralised, lithium (spodumene) ‐ bearing pegmatites of the Lithium‐Caesium‐Tantalum (LCT) geochemical family.

Diamond drilling undertaken in 2011 and 2012 intersected high‐grade lithium‐bearing spodumene pegmatites over a strike length of 800 metres at the Fairservice Prospect, and confirmed lithium endowment at the Mavis Lake Prospect. Highlight drilling intersections include:

Table 1: Highlight Drilling Intersections.*

 MF‐11‐08: 7m at 1.83% Li2O from 4m

 MF‐11‐09: 7.8m at 1.86% Li2O from 18.85m

 MF‐11‐12: 16m at 1.53% Li2O from 125m

 MF‐11‐12: 26.25m at 1.55% Li2O from 152m

 MF‐11‐13: 5m at 1.44% Li2O from 19m

 MF‐11‐14: 3m at 2.15% Li2O from 24m

 MF‐12‐24: 16.4m at 1.86% Li2O from 161.9m

 MF‐12‐25: 5.15m at 1.75% Li2O from 130.7m

 MF‐12‐28: 6m at 2.53% Li2O from 6m

 MF‐12‐30: 6.95m at 1.45% Li2O from 32.25m

 MF‐12‐33: 3m at 2.26% Li2O from 22m

 MF‐12‐34: 5m at 1.5% Li2O from 24m

 MF‐12‐36: 6m at 1.48% Li2O from 31m

 MF‐11‐15: 5.35m at 1.51% Li2O from 78.4m*

• All widths listed are drill core widths and have not been converted into true width. Appropriate rounding of Li2O values applied.

  ** To date only 3 holes have been drilled at the Mavis Lake 18 Pegmatite, including MF‐11‐15.

  WORK PROGRAMS

  Field work is scheduled to commence in June 2016.

  • Ground magnetic survey: Orientation work indicates that pegmatites present as magnetic lows, and modern magnetic data may better identify blind, but near surface, pegmatite mineralisation;

  • Soil geochemistry: Used previously to successfully identify lithium‐bearing pegmatites. Rare‐metal geochemistry (Li, Cs, Rb, Nb and Ta) coupled with geological, structural and the new geophysical data will be the key to new‐target generation; and

  • Drilling to identify new, and further define known, spodumene occurrences. Work programs are scheduled to start in June 2016.

For additional information, please refer to announcements to ASX dated 15 March 2016 and 20 April 2016.