Hole ID

East

(MGA)

Northing

(MGA)

RL (m)

Dip

Azi

EOH (m)

From

(m)

To

(m)

Intercept (Un- weighted)

Ni

(ppm)

S (ppm)

MGD001

290945

6401696

380

-60

142.6

511

335

373

38.00

2434

621

Criteria JORC Code explanation Commentary

where there is coarse gold that has retaining all half core for possible re-

inherent sampling problems. Unusual logging exercises in the future.

commodities or mineralisation types (e.g.  The quantity of quarter core sampled submarine nodules) may warrant allows complete pulverization of each disclosure of detailed information. sample; hence no splitting is ever required.

Sample pulps are returned to Neometals after temporary storage at Intertek and then archived at the core farm facilities.

Drilling  Drill type (e.g. core, reverse circulation,  Diamond drilling was completed by DDH1

techniques open-hole hammer, rotary air blast, auger, Drilling from Perth at the Mt Gordon

Bangka, sonic, etc.) and details (e.g. core prospect (MGD001 and MGD002).

diameter, triple or standard tube, depth of  The surface, strongly lateritised gravels and Diamond tails, face-sampling bit or other clays were roller-cone removed for the top type, whether core is oriented and if so, by ~40m and material lost into the sumps. what method, etc.).  From ~40m to ~70m, HQ coring was

completed in the strongly broken saprock zone.

 From ~70m to EOH, the core was fresh rock and NQ2 core was collected in plastic core trays for later work. The coring is quite standard for this reconnaissance work.

 Where possible, Bottom-of-Hole crayon orientation marks were recorded and later extrapolated as far as possible along the rejoined & cleaned core. Not all orientation was successful.

 DDH1 recorded multi shot down hole surveys every 6m or so, with dip, magnetic azimuth magnetic strength (nT) and relative gravity readings taken.

Drill  Method of recording and assessing core  Core recovery in MGD001 & MGD0012 was

sample and chip sample recoveries and results 100%.

recovery assessed.  The zones selected for cutting were all

 Measures taken to maximise sample within the 100% recovery fresh rock

recovery and ensure representative nature sections and there can be no sampling bias

of the samples. involved.

 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.

Logging  Whether core and chip samples have been  All drill core was transported to Neometals

geologically and geotechnically logged to core farm in West Perth for full degreasing,

a level of detail to support appropriate reconnection of core lengths and

Mineral Resource estimation, mining measurement of metre marks where

studies and metallurgical studies. required, usually over the entire hole.

 Whether logging is qualitative or  Geological logging was completed on both quantitative in nature. Core (or costean, holes by Gordon Kelly, who has 45 years' channel, etc) photography. experience in this style of exploration. The

 The total length and percentage of the core was logged geologically to the highest

relevant intersections logged. standards of our current understanding in

nickel sulphide exploration.

 Geotechnical logging was completed to a reasonable standard, in that RQD estimates were recorded over geological units and any significant core loss noted. When possible, geological contacts, major fault planes and internal fabric orientations were recorded using industry standard alpha and beta terminologies.

 These readings are available for any

Criteria JORC Code explanation Commentary

possible structural re-analysis that is

deemed appropriate in the case of mine development.

 The laid-out core trays were photographed with a DSLR camera and the pictorial record for the entire hole stored in Neometals database.

Sub-  If core, whether cut or sawn and whether  Selection of intervals for quarter core sampling quarter, half or all core taken. cutting and sampling was based on the techniques  If non-core, whether riffled, tube sampled, above detailed geological logging. As a and rotary split, etc. and whether sampled wet generalisation, all occurrences of sulphide sample or dry. mineralisation have been marked-up for preparation  For all sample types, the nature, quality cutting and sampling.

and appropriateness of the sample  Holes MGD001 & MGD002 penetrated a

preparation technique. gabbroic unit overlying amphibolite and

 Quality control procedures adopted for all serpentinised cumulates. The Mt Gordon sub-sampling stages to maximise area is a pure greenfields area and it was representative nature to the samples. decided to collect basic geochemical

 Measures taken to ensure that the information on the entire ultramafic portion

sampling is representative of the in situ of both holes.

material collected, including for instance  The sampling of quarter core is considered

results for field duplicate/second-half quite adequate to collect representative

sampling. samples of the entire ultramafic and any

 Whether sample sizes are appropriate to disseminated nickel sulphides therein. The the grain size of the material being only zones of coarse grained sulphides are sampled. at the interface between gabbro and ultramafic and quarter core sampling would

not be adequate in that particular case, which only has relevance if there are significant values recorded.

 The coarse sulphides discussed above are not hosted in ultramafic lithologies and are unlikely to yield nickel sulphide intersections. They are interpreted to be more likely to host anomalous PGE values, based on the conceptual geological targets discussed in the text.

Quality of  The nature, quality and appropriateness of  The value of the analytical data reported by assay data the assaying and laboratory procedures Intertek is cutting-edge in quality and and used and whether the technique is highly appropriate for all nickel sulphide laboratory considered partial or total. exploration. They have maintained a tests  For geophysical tools, spectrometers, consistent track record over many decades handheld XRF instruments, etc., the of benchmark quality in their analytical

parameters used in determining the work.

analysis including instrument make and  Data were again subject to QA/QC by

model, reading times, calibrations factors Intertek Laboratories, 15 Davison Road

applied and their derivation, etc. Maddington. QA/QC was achieved by

 Nature of quality control procedures duplicate sampling of laboratory pulps at adopted (eg standards, blanks, duplicates, random sample intervals and of external laboratory checks) and whether anomalously high values. Laboratory blanks acceptable levels of accuracy (ie lack of were also inserted according to their bias) and precision have been established. protocols to check sample preparation

cross-contamination potential.

 Intertek publishes all duplicates and standards analyses alongside of the drill sample results.

Verification  The verification of significant intersections  No intersections have been received to of by either independent or alternative date that would justify validation by sampling company personnel. replicate and/or duplicate analysis.

and  The use of twinned holes.  Twinned holes were not relevant at this

assaying  Documentation of primary data, data entry stage in greenfields exploration.

Criteria JORC Code explanation Commentary

procedures, data verification, data storage  All geological and location data has been

(physical and electronic) protocols. stored in Neometals Ltd Excel database

 Discuss any adjustment to assay data. files. Data entry has been by manual input and validation of the small amount of data was done by checking input on screen prior

to saving.

 There is no historic Diamond drill data from this prospect. The single RC hole that dates from Hannans Reward exploration era (2009-2010) was resampled in its entirety by sieving the 1m green plastic bag reject sample on site to separate a representative subsample of fines for submission to Intertek Laboratories. Coarse subsamples, that is, above 6mm diameter, have been archived in the Neometals core farm for possible future petrographic work.

Location of  Accuracy and quality of surveys used to  Locations were planned using a data points locate drill holes (collar and down-hole combination of GIS software packages. All surveys), trenches, mine workings and collars were proposed by Bill Peters from

other locations used in Mineral Resource SGC and were designed to test the 3D

estimation. geophysical model of the magnetic

 Specification of the grid system used. susceptibility readings collected by the

 Quality and adequacy of topographic aerial survey completed for RGC in 1996.

control.  Location of stations was accomplished with

Garmin handheld GPS units with an

accuracy of +/- 4m. Drill azimuths were laid-out with a hand-held Suunto compass

that has a precision of +/- 0.5 degrees.

 All data points were located using the Geocentric Datum of Australia 1994 and the Map Grid of Australia, Zone 51 projection.

 Topographic control was not required to be determined for this release.

Data  Data spacing for reporting of Exploration  At least 300 readings were recorded per

spacing Results. station.

and  Whether the data spacing and distribution  Stations/holes were individually plotted in

distribution is sufficient to establish the degree of the field.

geological and grade continuity  The data spacing or hole separation is appropriate for the Mineral Resource and approximately 750m and is only designed Ore Reserve estimation procedure(s) and for a first-pass look at the source of the 3D classifications applied. geophysical model.

 Whether sample compositing has been  If further drilling is justified, an exploration applied. grid will be established on paper to adequately test the disseminated

mineralisation style. Collar positions although adjusted to align on a local grid, will be converted for field positioning with a hand-held GPS. Conversion formulae are available for calculating either coordinate system.

Orientation  Whether the orientation of sampling  The drill holes were designed to intersect of data in achieves unbiased sampling of possible the 3D modelled body in the centre and relation to structures and the extent to which this is close to 90 degrees to the contacts. geological known, considering the deposit type.  The results of the geotechnical structure  If the relationship between the drilling measurements of geological contacts

orientation and the orientation of key indicate that the modelling and hole mineralised structures is considered to planning was very close to an ideal have introduced a sampling bias, this orientation choice.

should be assessed and reported if  The intersections quoted in the text are

material. therefore presented as being highly

Criteria JORC Code explanation Commentary

representative of true widths and grades.

Thus there is no bias inherent in holes

MGD001 & MGD002.

Sample  The measures taken to ensure sample  All drill core and sampling was conducted

security security. under constant management by Reed

Exploration and Neometals personnel.

 There was no potential for sample substitution or "salting" at any stage of the analytical pipeline.

 All core and sample pulps are stored behind secure locked doors at the Neometals core farm facilities.

Audits or  The results of any audits or reviews of  The nature of the only recently received reviews sampling techniques and data. analytical data has not entailed any audits of quality. It is unlikely that MGD002 will

require any such reviewing.

Criteria JORC Code explanation Commentary

because of its zero outcrop, being

covered by near in situ lateritic gravels and latosols.

 The nearest outcrop is the Medcalf

Igneous Complex, located approximately

3-4km south of Mt Gordon. It has received geological mapping of varying

quality, with the best interpretation being available on the Audalia Resources

website as a downloadable PDF.

 Exploration from Mt Gordon prospect and northwards towards Lake Johnston has been historically gold-focused. Exploration techniques have been soils and auger soil sampling, extensive RC angle drilling and rare Diamond drilling. Much more intensive nickel sulphide exploration has been focused on the komatiitic ultramafic belts, located approximately 5km westwards that are interpreted to be stratigraphic continuations southwards from the Maggie Hays nickel camp. The details of this work are not relevant to the Mt Gordon prospect and future exploration.

 From the Diamond drill holes just completed, the layered mafic-ultramafic chonolith apophyses identified have been intrusively emplaced into an unremarkable pillowed tholeiitic basalt flow sequence. Hornfelsing and metamorphic mineral overprinting is confirmation of the intrusive nature.

 Earlier geological interpretations are inconclusive in provenence.

Drill hole  A summary of all information material to  Drillhole coordinates, dips, azimuths and

Information the understanding of the exploration survey information has been summarised

results including a tabulation of the in tabular form, in the text above.

following information for all Material drill holes:

 easting and northing of the drill hole collar

 elevation or RL (Reduced Level - elevation 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.

Data  In reporting Exploration Results, weighting  The results quoted are unedited raw aggregation averaging techniques, maximum and/or data, direct from the analytical methods minimum grade truncations (eg cutting of laboratories.

high grades) and cut-off grades are  There has been a very simple

usually Material and should be stated. aggregation technique applied for the

 Where aggregate intercepts incorporate intersection, viz:- sum of widths times

short lengths of high grade results and grade divided by sum of widths

Criteria JORC Code explanation Commentary

longer lengths of low grade results, the  This gives a straight forward metres from procedure used for such aggregation a downhole depth at an averaged grade. 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.

Relationship  These relationships are particularly  The geometry is almost one on one, that between important in the reporting of Exploration is, the downhole intersection is the same mineralisation Results. as the true width intersection, due to the widths and  If the geometry of the mineralisation with nearly right angled intersection to intercept respect to the drillhole angle is known, its chonolith apophysis contact.

lengths 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').

Diagrams  Appropriate maps and sections (with  The attached figures to this release

scales) and tabulations of intercepts contain all relevant sample intervals,

should be included for any significant intercepts and estimated geological

discovery being reported These should comments based on historic geological

include, but not be limited to a plan view logging.

of drill hole collar locations and appropriate sectional views.

Balanced  Where comprehensive reporting of all  The release is the total of information reporting Exploration Results is not practicable, available and the intersection contains representative reporting of both low and the only significant compilation of nickel

high grades and/or widths should be assays that are related to fresh rock

practiced to avoid misleading reporting of samples.

Exploration Results.

Other  Other exploration data, if meaningful and  Future work proposed should include substantive material, should be reported including (but detailed petrographic identifications of exploration not limited to): geological observations; the major rock types and sulphide data geophysical survey results; geochemical mineralisation intersected.

survey results; bulk samples - size and  This will confirm the rock types method of treatment; metallurgical test geologically logged and improve the results; bulk density, groundwater, comparison to better documented nickel geotechnical and rock characteristics; sulphide deposits in chonolith potential deleterious or contaminating environments.

substances.

Further work  The nature and scale of planned further  Both drill holes at Mt Gordon and the one

work (e.g. tests for lateral extensions or stratigraphic drill hole at Green Dam

depth extensions or large-scale step-out have 50mm PVC casing emplaced to

drilling). allow possible down-hole geophysical

 Diagrams clearly highlighting the areas of surveys to be completed.

possible extensions, including the main  There is a time limit imposed by the DMP

geological interpretations and future for rehabilitation of the holes and this

drilling areas, provided this information is may destroy access to the casing.

not commercially sensitive.  Down hole geophysics is therefore a possible next exploration technique to employ.

 Dependent on the analytical results from MGD002, due in a few weeks, there could quite feasibly be a sudden impetus in exploration.

 Programs of detailed auger soil sampling have been prepared in order to focus on the more prospective sulphide- mineralised portions of the prospect area. PGE anomalism is well catalogued