Resources Limited

ABN 52 064 121 133

QUARTERLY REPORT

for the three months ended 30 June 2016.

ASX Code ‐ JRL

For further information, contact:

Mr Lindsay Dudfield Jindalee Resources Limited

Telephone: 61 8 9321 7550

Facsimile: 61 8 9321 7950 Email: [email protected]

Level 2

18 Kings Park Road West Perth WA 6005

PO Box 1033

West Perth WA 6872

This report and further information are available on Jindalee's website at:

www.jindalee.net

Lindsay Dudfield Managing Director 26 July 2016

Figure 1 ‐ Project Location Plan

HIGHLIGHTS

• Jindalee acquires Arthur River, Australia's third largest magnesite project

• Jindalee pegs Aries diamondiferous kimberlites in northern WA

• Justin Mannolini becomes Jindalee's Chairman

• Jindalee remains well positioned to capitalise on opportunities becoming available

  FINANCIAL

• The Company has a total of 34.8 million shares on issue

• At 30 June 2016, Jindalee had no debt and held cash and shares worth $5.7M (equivalent to $0.16 per share).

Arthur River Project (Jindalee 100%)

During the period Jindalee announced the application for an Exploration Licence (EL5/2016), covering the Arthur River and Lyons River magnesite deposits, located 55km southwest of Burnie in NW Tasmania1 (Figure 2). Jindalee holds a 100% beneficial interest in the Project, with the consultant who introduced the Project to Jindalee retaining a 1% gross royalty.

Geoscience Australia's website notes that the Arthur‐Lyons River area covered by Jindalee's application contains the third largest inventory of magnesite Economic Demonstrated Resources (EDR) in Australia (refer www.ga.gov.au).

Magnesite is the primary source of magnesia (MgO), which is mainly used in agriculture, mineral processing, paper manufacture and refractory industries. Magnesia is also used to produce magnesium (Mg), a light metal widely used in the aerospace, automotive and electronics industries. Both magnesite and magnesium are included on the EU's latest list of 20 critical materials.

Figure 2 - Arthur River Project. Location plan and Simplified Geology.

A historic resource estimate, prepared by Beacon Hill Resources Plc exists for the southern part of the Arthur River deposit only, with no resources estimated for the nearby Lyons River deposit.

Based on historical exploration records, Jindalee considers there is very good potential to increase the resource base at Arthur River by drilling the extensions of this deposit. There is also excellent potential to establish JORC compliant resources at Lyons River, where historical drilling by CRAE (a subsidiary of Rio Tinto) in the early 1980's returned wide, high‐grade intercepts, including 200m @ 43.0% MgO from DDLR1, and 180m @ 42.0% MgO from DDLR2 (source: MRT website www.mrt.tas.gov.au).

Jindalee has commenced accessing and compiling the extensive database for the Project and looks forward to commencing work on the Project as soon as EL5/2016 is granted.

Jane Well (Jindalee 100%)

The Jane Well project is located 130km south of Onslow in the west Gascoyne region of Western Australia. The project consists of a single Exploration Licence Application (ELA 08/2745) applied for by Jindalee's wholly‐owned subsidiary, Eastmin Pty Ltd.

The tenement application covers a section of the same Tertiary palaeochannel system that hosts Cauldron Energy Limited's Bennet Well uranium deposit.

Efforts continue to be directed toward progressing the application to grant and to accessing available previous exploration information.

Energy Metals (Jindalee 6.7% of issued capital)

Jindalee holds approximately 14 million Energy Metals shares, giving shareholders continued exposure to the development of the Bigrlyi uranium‐vanadium deposit and the potential of Energy Metals' other uranium projects.

Energy Metals (ASX: EME) controls 8 projects (total area >4,000 km²) located in the Ngalia Basin in the Northern Territory (NT) and in Western Australia (WA), with the majority of projects containing uranium mineralization or defined resources. Exploration has largely been concentrated on the main Bigrlyi Project in NT (53.3% owned by Energy Metals), where significant uranium resources have been defined and a prefeasibility study completed. More recently, increasing attention has been turned to other wholly‐owned prospects in the region, where there is demonstrated potential to define additional Bigrlyi‐style resources.

Further information on Energy Metals' activities can be found in Energy Metals ASX announcement and on their website, www.energymetals.net

GOLD

Chalice Extension project (Jindalee 100%)

Jindalee's Chalice project, comprising a single wholly‐owned Exploration Licence Application (E63/1786) is located 120km south of Kalgoorlie in the Eastern Goldfields region of Western Australia. This project covers part of the interpreted along‐strike extensions of the stratigraphy that hosts the Chalice gold mine, owned by Metals X and forming part of their broader Higginsville gold operation. The Mining Lease covering the Chalice deposit is excluded from the application.

Available historical open file exploration information is currently being compiled for this project.

Alchemy Resources (Jindalee 7.6% of issued capital)

Jindalee holds a significant equity interest in Alchemy Resources (ASX: ALY). This provides shareholders with exposure to Alchemy's rapidly expanding portfolio of projects, including Alchemy's existing Gascoyne region gold and copper‐gold projects, the newly acquired Karonie gold project in WA and the recently announced joint venture with Heron Resources over a group of gold and base metal prospective properties in central NSW.

Alchemy's Bryah Basin copper project is located to the west of Sandfire Resources' Doolgunna project and covers the extensions of the Narracoota Volcanics, the unit which hosts Sandfire's high grade DeGrussa copper‐gold mine. Independence Group (ASX: IGO), a well‐regarded and successful nickel, base metal and gold producer and explorer is farming into Alchemy's base metal‐prospective Bryah Basin tenements. Alchemy also has a joint venture agreement in place with Northern Star Resources (ASX: NST), under the terms of which NST is responsible for the ongoing exploration of the remaining Gascoyne project tenements, not covered by the pre‐existing joint venture with IGO. This joint venture includes a number of existing gold prospects and occurrences, as well as other areas considered prospective for the discovery of further gold deposits.

The Karonie acquisition abuts Salt Lake Mining's 0.5Moz Aldiss project tenements and features several prospects where previous drilling, mostly by Integra Mining, has returned significant bedrock gold intersections.

The joint venture agreement with Heron Resources includes six Exploration Licences covering a combined 674km². The most advanced project is the Overflow project in the Cobar district, where walk up gold drill targets have been identified.

Further information on Alchemy Resources activities can be found in their announcements and on their website, www.alchemyresources.com.au.

Cardinia JV (Jindalee 11% free carried)

Jindalee holds an 11% interest in a group of tenements at Cardinia, located 30 kilometres east of Leonora. The joint venture project forms part of Kin Mining NL's (ASX: KIN) extensive Leonora Gold Project holdings. Jindalee's interest in the Cardinia joint venture ground is free‐carried to completion of a Bankable Feasibility Study. No work was reported from the Cardinia joint venture tenements during the period.

IRON ORE

Prairie Downs (Jindalee 100%)

The Prairie Downs project comprises a single Exploration Licence Application (E52/3445) located 53km WSWE of Newman in the eastern Pilbara. The tenement covers ground, previously held by Dynasty Resources Limited (ASX: DMA), and includes the Spearhole CID (detrital channel iron) deposit for which Dynasty had previously announced a substantial resource estimate (refer www.dynastyresources.com.au).

Jindalee's application is subject to a competing application with priority to be determined by ballot.

Joyners (Jindalee 20% free carried)

The Joyners project is a joint venture with GWR Group Limited and forms a part of GWR's much larger Wiluna West project. GWR has earned an 80% interest in the joint venture Mining Lease with Jindalee maintaining a 20% equity position, free‐carried through to completion of a Bankable Feasibility Study. The joint venture tenement contains previously published indicated and inferred iron oxide resources at Joyners North.

The southern exploration licence was surrendered during the quarter. However the mining lease, containing the published iron ore resource, has been retained.