Hole

Northing(m) (Mine Grid)

Easting(m)

( Mine Grid)

Drill

Collar RL (Mine Grid)

Dip

(Deg.)

Azimuth

(magnetic)

Final

Hole Depth (m)

Downhole

From (m)

Downhole

To (m)

Downhole Intersection (m)

Au (gpt) uncut

KPDD009

41550.71

42517.40

381.84

72

190

123

64.10

64.55

0.45

2.33

93.40

94.56

1.16

1.52

KPDD010

41566.39

42624.52

383.08

62

190

133

80.0

81.1

1.10

2.13

KPDD011

41251.08

42139.34

377.56

67

010

143

72.0

73.0

1.0

1.29

75.43

76.73

1.30

4.64

112.1

112.4

0.30

14.3

120.7

121.3

0.60

7.8

KPDD012

41202.04

42234.62

377.48

62

190

81

46.53

47.17

0.64

10.7

KPRCD371

41525.62

42503.34

381.00

60

190

122.5

117.55

119.0

1.45

15.2

including

117.55

118.54

0.99

21.5

Criteria

JORC Code Explanation

Commentary

Sampling techniques

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

• Five angled RC precollared Diamond holes drilled totalling 508m. Diamond core holes drilled using NQ2 sized rods. Half core cut, and samples collected at varying intervals based on geological logging and sample length varied from a minimum of 0.31m to a maximum of 1m. Due to nature of the mineralisation intervals less than 1m intervals were collected through the interpreted ore zone and standard 1m length intervals sampled in geological intervals adjacent to the ore zone. Each drill hole location (Easting and Northing)

was surveyed by Differential GPS by Cardno Surveys from Kalgoorlie. Detailed recording (logging) of collar, drilling, survey, lithology, and sample information was completed as necessary for each drill hole.

Drilling techniques

• 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).

• Reverse Circulation (RC) drilling was used to complete precollars for each Diamond drill hole by Raglan Drilling Contractors. RC face-sampling hammer bit achieved

hole diameter size of 125mm (~5 inch). All

samples were dry. Diamond core tails drilled using NQ2 sized bit and rods by Raglan Drilling (Kalgoorlie) using dedicated Diamond drill rig.

Drill sample recovery

• 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.

• Core recoveries were measured at the drill site and also reconciled by the logging geologist at time of logging, then noted on the geological logging sheets. Overall core recovery ~100%.

• Ensured all Diamond tails commenced in fresh rock to maximise core recoveries.

• No relationship has been identified.

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.

• Detailed logging of lithology, structure, mineralisation and recoveries recorded in each hole by qualified geologist with Archaean experience using KalNorth Gold Mines Ltd logging manual. Logging was peer reviewed by Exploration Manager.

• Geological logs are qualitative in nature.

Photos of the core are taken for the entire hole.

• Every hole was logged for the entire length.

Sub-sampling techniques and sample preparation

• 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

• Half core cut and samples collected at varying intervals based on geology from a minimum of 0.31m to a maximum of 1m.

• The sample preparation of the Diamond drill core follows industry best practice, involving oven drying, crushing and pulverising. Samples analysed at Bureau Veritas laboratory in Kalgoorlie using gold analysis code FA001 and a suite of multielements using ICP-MS.

Criteria

JORC Code Explanation

Commentary

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.

• Along with core samples, standards and blanks were inserted (around every 10 samples) and were included in the laboratory analysis. Standards were certified reference material prepared by Geostats Pty Ltd. Blanks were also prepared by Geostats from historical RC drill residues. The company did not submit duplicate samples. Sample pulps and half core have been retained for each hole. Laboratory repeat, standard, blank and check sampling completed as standard procedure.

Quality of assay data and laboratory tests

• 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.

• Samples routinely analysed for gold using the 40gram Fire Assay digest method (code FA001 with an AAS finish at Bureau Veritas's Kalgoorlie Laboratory.

• Gold intercepts calculated with primary Au gold values with Au1 repeat values excluded

• Quality control process and internal laboratory checks demonstrate acceptable levels of accuracy.

Verification of sampling and assaying

• 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.

• The results have been reviewed in geological context and verified by alternative company personnel and external consultants No twin holes were drilled.

• Geology and sample data was recorded on hard copy log sheets during logging in the company's Kalgoorlie yard using the KalNorth Gold Mines Ltd logging manual. Sample data was then loaded into the Company's DATASHED database and validation checks completed to ensure

data accuracy.

• There has been no adjustment to the assay data.

Location of data points

• 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.

• Drill collars were surveyed using a Differential GPS by Cardno Surveys to cm accuracy and presented as both MGA and Mine grid co-ordinates. Down-hole surveys were completed at time of drilling using an electronic GyroSmart survey instrument provided by Downhole Surveys.

• Grid System - MGA94 Zone 51.

• Topographic elevation acquired by Cardno

Survey as noted above to cm accuracy.

Data spacing and distribution

• 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.

• Five RC precollared holes were drilled on selected 25m spaced sections. The holes were located on sections that had been previously drilled by predominantly reverse circulation methods since 2002 at a nominal

25m by 20m pattern

• No sample composting has been applied.

Orientation of data in relation to

• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which

• The trend of the gold mineralised structure has been well determined from exposures

Criteria

JORC Code Explanation

Commentary

geological

structure

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.

in the historical (1980's) open pit and from

intersections in previous drilling. Each drill hole is orientated approximately perpendicular to the mineralised trend and holes dip at a range of 60-72 degrees

Sample security

• The measures taken to ensure sample security.

• Samples of the core were prepared, collected and personally delivered to the Laboratory by the Exploration Manager. Half drill core is retained at the company's Kalgoorlie Yard.

Audits or reviews

• The results of any audits or reviews of sampling techniques and data.

• Sampling and analysis procedures are industry standard and all results of this drill program were reviewed by the Exploration Manager and Managing Director. No negative issues were identified during these reviews

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 KALPINI PROJECT is located

approximately 70 km north east of Kalgoorlie, Western Australia and is part of a package of three contiguous wholly owned tenements. The work described in this report was undertaken on Mining Lease 27/485 held

100% by KalNorth Gold Mines Limited. The tenement encompasses the Lindsays mining operation which remains under suspension. The company signed a mining agreement in December 2012 with the Central East Native Title group.

• The tenement is current and in good standing.

Exploration done by other parties

• Acknowledgment and appraisal of exploration by other parties.

• Modern exploration has been completed at

Kalpini by KalNorth Gold Mines Limited since

2010 and has estimated a JORC 2004

Compliant resource of 4.6Mt grading 1.7gpt

Au.

• Kurnalpi Gold NL undertook exploration at Kurnalpi during the mid-1990. Kalpini is the site of the historical Atlas Shaft and associated a foundation which was mined during the turn of the century.

Geology

• Deposit type, geological setting and style of mineralisation.

• The Kalpini Project is located in the Eastern Goldfields Province of Western Australia and is hosted by Archaean age dolerite and gabbro. Gold mineralisation at the Gambia and Camelia lodes is characterised by narrow (0.5m-2m) flat dipping brecciated arsenopyrite-sericite-carbonate quartz lodes within a narrow (1-2m) leucoxene-chlorite carbonate alteration envelope in the host dolerite/gabbro.

Drill hole

Information

• 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:

• easting and northing of the drill hole collar

• elevation or RL (Reduced Level - elevation

• A summary of the Diamond drilling referred to in this announcement is presented in Table 1 of the report and within Figures in this announcement.

• No Information has been excluded.

• There is significant previous RC ( 2010-2013)

Criteria

JORC Code Explanation

Commentary

above

sea level in metres) of the drill hole collar

• dip and azimuth of the hole

• down hole length and interception depth

• 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.

drilling within the area of interest and these

are depicted on the sections and drill hole plan in the accompanying announcement.

Data aggregation methods

• 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.

• All report grades have been length

weighted. High grades have not been cut. A lower cu off of 1gpt Au has been used to identify significant results.

• Where present, higher grade values are included in the intercepts table and assay values equal to or > 1.0 g/t Au have been stated on a separate line below the intercept assigned with the text 'includes' .

• No metal equivalent values or formulas used.

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

• All results are based on down-hole metres.

• Structural logging of the orientated drill core has confirmed the nature and geometry of the mineralisation and the geology is depicted in the figures attached to this announcement.

• The geometry of the mineralised lode with respect to the drill hole is well constrained

• All holes have been planned such that downhole widths are very close to the actual width

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.

• Appropriate summary diagrams (cross section Figures 3&4 and plan Figures 1&2) are included in the accompanying announcement.

Balanced reporting

• 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.

• Significant assay results are provided in

Table 1 for the five holes.

• All target zone intercepts for all five holes have been reported for this drill program.

Other substantive exploration data

• 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 relevant data has been included within this report.

Further work

• The nature and scale of planned further work (eg 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.

• The recent drilling will be incorporated into and utilised to constrain an amended resource model focussing on the Gambia and Camelia zones. Additional shallow Diamond drilling maybe completed upon completion of this model.