Anchor Resources Limited

ABN: 49 122 751 419 ASX Code: AHR

Website: anchorresources.com

18th April 2016

QUARTERLY ACTIVITY REPORT - MARCH 2016

Anchor's field work focused on two New South Wales projects in the March Quarter 2016, the newly granted Gemini project in the Lachlan Orogen and the Blicks project in the New England Orogen.

Highlights from work completed during the Quarter include:

• Gemini Project - Anchor completed an initial prospect reconnaissance program and held meetings with landowners and other stakeholders at Gemini in March.

  
  

• Blicks Project - soil sampling and mapping at the Liberty prospect and rock-chip sampling and mapping at the Mulligan/Forster prospect.

Directors Mr. Jianguang Wang Mr. Ian Price Mr. Vaughan Webber Mr. R N (Sam) Lees

Chairman Director Director Director

Address

6 Chepstow Drive, CASTLE HILL, NSW 2154

Investor & Media Enquiries

Ian Howarth | Ph.: +61 407 822 319

GEMINI PROJECT, EL 8398 (Anchor 100%)

New South Wales - copper, lead, zinc, gold & silver

The Gemini project covers a prospective, under-explored area of the Cobar Basin south of Cobar and includes the Blue Mountain zinc-lead-copper prospect. The EL area is considered prospective for Cobar- type polymetallic base metal (zinc-lead-copper-silver-gold) deposits. The Blue Mountain zinc-lead- copper prospect, Mallee Bull copper-silver-gold deposit and Hera gold-silver-lead-zinc deposit all lie in close proximity to the regional northeast trending Nymagee-Wagga Tank lineament (Figure 1). Blue Mountain is 120km south of Cobar.

Figure 1: EL 8398 (Gemini) regional geology showing the location of the Blue Mountain zinc-lead-copper prospect, regional metallogenesis and Nymagee-Wagga Tank lineament

Blue Mountain Prospect

Based on Anchor's compilation of previous explorers' data, the Blue Mountain zinc-lead-copper prospect has a strong multi-element geochemical signature extending over a strike length of 2,200m defined by previous RAB drilling (Figure 2). The anomalous multi-element Zn-Pb-Cu geochemistry and anomaly

footprint, sphalerite-galena-chalcopyrite association, lensoidal geometry of the mineralisation intersected in drilling, and interpreted structural architecture of the Blue Mountain zinc-lead-copper prospect has many similarities to other Cobar-type deposits, including the major producing CSA mine at Cobar.

Previous drilling at the prospect was confirmed through inspection of 2 inclined Diamond core holes and a single inclined RC drill collar. A gossanous quartz breccia discovered north of drill hole BMDD002 was scanned with a portable XRF returning values of Pb up to 0.1%, Zn ~230ppm, Cu ~400-500ppm, As 720ppm and Te 230ppm. It was also noted the anomalous Cu anomaly occurs in area of no outcrop so the target is completely concealed under thin cover.

Figure 2: Blue Mountain Zn-Pb-Cu prospect bottom hole RAB Pb and Cu geochemistry

Anchor completed an initial prospect reconnaissance program and held meetings with landowners and other stakeholders at Gemini in March.

Blicks Project, EL 6465 and EL 8100 (Anchor 100%)

New South Wales - molybdenum, tungsten, copper & gold

The Blicks project is located in the southern segment of the New England Orogen in northeast New South Wales, 95km northeast of the major regional centre of Armidale. Anchor's key target areas and reported historic mineral occurrences within the Blicks project are shown in Figure 3.

Figure 3: Blicks project showing Anchor's priority target areas and reported mineral occurrences

Field work during the Quarter focused on the Liberty Cu-Mo and Mulligan-Forster Au prospects.

Liberty Copper-Molybdenum Prospect

The Liberty Cu-Mo prospect is centred on an elongate magnetic low that transgresses a magnetic ridge underlain by tonalite with sparsely disseminated chalcopyrite. Several magnetic highs along this linear magnetic anomaly are targeted for grid based soil sampling. The magnetic low is interpreted as a younger, separate and distinct intrusion or possibly a breccia pipe.