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Quarterly Activities Report

September 2015

30 October 2015

EM Survey reveals nickel target near Company's Granmuren prospect - Bergslagen (Sweden) with target geology showing strong similarities to the Granmuren discovery

Sulitjelma field program reports up to 0.76% Cu and 0.32% Zn from outcrop and individual mine dump grab sample results of up to 4.4% Cu; 1.7% Zn; >10% Pb and, 645g/t Ag

Joma Copper/Zinc surface float grab sample result- 2.73% Copper, 0.04% Zinc and 41g/t Ag

Seimana mapping program reveals 20 new or extended artisanal gold workings with 7 sites of priority 'A' status, 6 sites priority 'B'

Seimana now has 34 sites each with over 200m strike length of mineralised quartz veins and further evidence of abundance of gold mineralisation on Drake permits

Overview

The Company completed four field programs during the quarter with the Bergslagen EM survey identifying a nickel target 50kms from Drake's Granmuren Nickel discovery and results from Drake's two Norwegian copper/zinc projects returning encouraging results. A return to the northern region of the Seimana prospects, an area that has not seen activity since 2012, also revealed significantly greater artisanal gold workings and additional high priority gold targets.

EM program over Bergslagen nickel targets.

Drake conducted ground EM over nickel targets within the Bergslagen region near its near- surface Granmuren greenfield nickel sulphide discovery . Two survey lines, 150m apart, over the southern quadrant of the Korsheden licence area (fig 1) identified a conductor associated with a 1.4km long airborne magnetic anomaly identified from government data (fig 2). The

Ni-Cu target is in an area of gabbro intruded into metasediments and as such has strong similarities with Drake's Granmuren Ni-Cu prospect 50km to the South East.

Korsheden was one of five areas identified as high priority targets for Granmuren type mineralisation in a regional targeting report by Dr Grguric1 commissioned by Drake in 2014. The report goes on to suggest Bergslagen is of the right age, mineralisation and structural setting to potentially host substantial nickel discoveries.

Drake's Granmuren nickel discovery is a substantial intrusion of massive and disseminated sulphides, mainly pyrrhotite, pentlandite and chalcopyrite hosted in gabbros and norites.

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Mineralisation occurs from near surface, and has been tracked down to about 330m, and remains open at depth.

Figure 1: Drake holds a large footprint near its Granmuren discovery.

Figure 2: Recent EM modelled conductor plates (small coloured rectangles) at Korsheden laid over coincident historic government funded airborne magnetic survey results. The two EM lines are presented as parallel solid blue lines and are 150m apart

Sulitjelma Field Program - Drake / Panoramic JV2

In the previous quarter a ground based electromagnetic (EM) geophysics survey was conducted over priority copper/zinc targets identified from the 2014 VTEM program. As a result of the EM survey 6 targets (fig 3) remain priority copper/zinc targets warranting drill testing. Four targets of interest lie within the western thrust ore field which is an area of known massive sulphide mineralisation mapped over ~10kms. The western ore field hosts the Sagmo (1.9Mt mined of 1.6% Cu and 0.23% Zn) and the Jakobsbakken (4.47Mt mined of 1.55% Cu and 2.42% Zn) historic orebodies. Two targets of interest lie within the eastern Nordgruvefeltet region, including Anomaly 3 with follow up field sampling within the area generating results including 10.7% copper and 15.1% zinc3.

This quarter, a field checking program was conducted to appraise VTEM anomalism not tested by ground EM and to further appraise specific targets generated from the recently completed VTEM and ground EM surveys. The objective of the program was to also assess the limits and grades of sulphide outcrop as preparatory work for drilling. Selected grab samples (table 1) were also collected from mine dumps of the now closed Bursi, Ny Sulitjelma and Jakobsbakken Mines to support other field observations and characterise the elemental signature associated with regional mineralisation.

Table 1: Details of samples collected at Sulitjelma sites

All samples contained Cu/Zn mineralisation and most results support general assumptions regarding copper/zinc distribution and previous production at the Sulitjlema ore field with the exception being sample SJV0016 which recorded >10%Lead and 645g/t Silver (Ag).

Figure 3: Sulitjelma Project. Numbered yellow dots are locations of recent surface sampling.

Joma Field Program

Drake returned to Joma in July and used the opportunity to scope out potential drill rig access issues related to various geophysics targets previously announced. A single grab float sample collected in a swampy area above the eastern edge of anomaly 10, returned 2.75% copper (table 2).

Table 2: A single surface sample was collected while scoping site access options at Anomaly 10, Joma.

Anomaly 10 and nearby anomaly 11 (fig 4) were identified from geophysics programs conducted in 2013. Anomaly 10 is a conductor that suggests the possibility of shallow sulphide mineralisation of size.

The most prospective target is Target 1, an EM conductor associated with a particularly large magnetic anomaly less than 1km from the Joma Mine entrance. Whilst target 1 was also scoped, it lies within a swamp area and no surface samples were collected.