ASX ANNOUNCEMENT 30 October 2015

QUARTERLY ACTIVITY REPORT SEPTEMBER QUARTER 2015

HIGHLIGHTS

The previous June Quarter saw a significant re-structuring of Marmota: new Chair, new technical director, substantial cost savings, new offices and new capital. Refreshed and rejuvenated, the focus of the current September quarter has been: 'All systems go'. In July, Marmota launched an aggressive gold exploration program across its prime tenement holdings around the Challenger gold mine. The program is already producing exceptional results.

Corporate

• Share Purchase Plan (completed in July): doubly oversubscribed

  
  

  New ground acquired [ see ASX release: 6 October 2015 ]

• Marmota has expanded its tenement holdings near the Widgety prospect (ELA 2015/00175) [ see Figure 1 ]

  
  

  NEW Gold exploration program

• Marmota has adopted the same calcrete sampling methodology that was used to find Challenger

• Since July, Marmota's in-house geoscientists have been stationed in the Gawler Craton, auger drilling calcrete samples.

• The calcrete sampling program has already yielded:

  • At Widgety: several clusters of strong gold anomalism

  • At Westpoint Hill 1 : EXCEPTIONAL gold anomalism Marmota has identified a NEW LARGE GOLD anomaly in the Gawler Craton

1 Results obtained after end of quarter

Exploration Activities during Quarter

GOLD Gawler Craton

Multi-commodity potential (gold, copper, nickel, zinc, uranium)

Figure 1: Marmota's Gawler Craton Gold Project + location of new tenements

Work undertaken during reporting period

• Part 1: Targeting known anomalies around Challenger gold mine

  • Camel prospect

  • Widgety prospect

    
    

• Part 2: Testing high prospectivity areas that have no (or very little) data coverage,

  including:

  • Telstar target

  • Mudguard target

  • Westpoint Hill target

    
    

    Background

• Marmota is searching for Challenger-style gold systems. The Challenger mine has already produced 1 million ounces of gold (over A$1.5 billion of gold, at current prices).

  
  

• Marmota has a dominant tenement holding around Challenger. Marmota tenements cover around 4,000 km2 of highly prospective area around the Challenger gold mine, in the Woomera Prohibited Defence Area in the Gawler Craton.

  
  

• Marmota has adopted the same calcrete sampling methodology that was used to find Challenger -- to highlight areas of gold anomalism with the potential for Challenger-style gold mineralisation.

The gold program is ongoing and expanding. Once results are received and properly analysed, a strategy for each area will be determined.

Widgety Prospect [ see ASX release: 14 October 2015 ]

• Calcrete sampling via auger drilling was carried out at the Widgety prospect (50km SE of Challenger) on a fine 50m x 50m grid pattern, in-filling existing anomalous data.

  
  

• Assay results returned strong gold anomalous assay results, defining several anomalous gold clusters, each around 250m wide.

  
  

• 96 sample locations at Widgety returned anomalous gold-in-calcrete readings ≥ 20 ppb

(out of 331 samples taken at Widgety) [see Figure 2 below].

For comparison: a gold-in-calcrete result of 20ppb is better than 98.4% of all calcrete sampling data recorded in the South Australian Government database of 192,677 samples.

Figure 2: Widgety: Detail of gold-in-calcrete anomalism (contoured at 10ppb and 20ppb gold)