Quarterly Activities Report

For the Period Ended 30 September 2015

SUMMARY

• Marenica is intent on piloting the disruptive U-pgradeTM process

• First Stage Testwork programme on Toro ore completed, producing better than expected results

• Marenica confidence in application of U-pgradeTM to Western Australian calcrete ores grows

• Funding and partnering discussions with potential investors continuing

DISRUPTIVE TECHNOLOGY

The U-pgradeTM process is a major breakthrough for processing surficial uranium deposits. The continued low uranium price is becoming more of a problem for much of the uranium industry, with many of the world's uranium producers reporting a loss at current spot prices. In these difficult times for the industry the time is right to be innovative and embrace disruptive technology like the U-pgradeTM process.

Marenica believes that the application of U-pgradeTM to surficial uranium projects provides a means for them to be developed and operated at significantly lower costs than would otherwise be the case, and potentially well below current development incentive prices allowing these projects to beat competing supply onto the market and enter the market in time for the expected recovery in uranium prices. Also U-pgradeTM provides an opportunity for existing producing mines to lower their costs and improve their margins, as well as make adjacent satellite deposits viable.

The Company considers the best approach to de-risk the U-pgradeTM process and build industry and investor confidence is to build and operate a pilot plant. The Company intends to build and operate a pilot plant on ore samples either sourced from its own Marenica deposit in Namibia or an alternate ore source pending outcomes from discussions with resource owners.

The potential application of U-pgradeTM to surficial uranium deposits is the Company's primary objective.

TESTWORK ON WESTERN AUSTRALIAN CALCRETE ORES

The testwork programme on the Toro Energy Limited ('Toro') ore sample continued during the quarter producing some outstanding results. The second stage produced excellent recoveries and rejected a large mass of gangue, and work on the third stage has generated sufficient data to suggest that a high grade concentrate could be produced from further testwork.

The testwork programme has now reached a natural pause point with an internal Marenica cost estimate being produced to demonstrate to Toro the expected benefits of U-pgradeTM. Discussions were in progress at the time of this report to determine the most suitable approach to progress this application of U-pgradeTM.

'The Toro U-pgradeTM testwork programme produced results beyond our expectations, dramatically increasing our confidence level in the application of U-pgradeTM to Australian calcrete uranium resources.

There are many of these, but up until now, there has been little incentive to explore for, or develop them.' said Murray Hill.

Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report

Appendix 5B

Rule 5.5

Mining exploration entity and oil and gas exploration entity quarterly report

Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013

Consolidated statement of cash flows

+ See chapter 19 for defined terms.

01/05/2013 Appendix 5B Page 1

Appendix 5B

Mining exploration entity and oil and gas exploration entity quarterly report

Payments to directors of the entity, associates of the directors, related entities of the entity and associates of the related entities

1.25 Explanation necessary for an understanding of the transactions

Non-cash financing and investing activities

Financing facilities available

Add notes as necessary for an understanding of the position.

+ See chapter 19 for defined terms.

Appendix 5B Page 2 01/05/2013