Anchor Resources Limited‌

ABN: 49 122 751 419 ASX Code: AHR

Website: anchorresources.com

28th January 2016

QUARTERLY ACTIVITY REPORT - DECEMBER 2015

Anchor focused on two projects in the December Quarter 2015, the newly granted Gemini project in the Lachlan Orogen of central-west New South Wales and the Blicks project in the New England Orogen of north-east New South Wales. The Gemini project is considered prospective for polymetallic Cobar-type base metal deposits while the Blicks project is considered prospective for multi-metal porphyry molybdenum-tungsten, porphyry copper-molybdenum, intrusion-related gold systems (IRGS) and orogenic gold deposits.

Highlights from work completed during the Quarter include:

• Gemini Project - definition of strong lead and copper geochemical anomalies at the Blue Mountain zinc - lead - copper prospect; and

• Blicks Project - anomalous gold values returned from rock chip sampling at the Mulligan gold prospect (Dalmorton Goldfield).

Directors Mr. Jianguang Wang Mr. Ian Price Mr. Vaughan Webber Mr. R N (Sam) Lees

Chairman Director Director Director

Address

6 Chepstow Drive, CASTLE HILL, NSW 2154

Investor & Media Enquiries

Ian Howarth | Ph.: +61 407 822 319

GEMINI PROJECT, EL 8398 (Anchor 100%)

New South Wales - copper, lead, zinc, gold & silver

The Gemini project covers a prospective, under-explored area of the Cobar Basin south of Cobar and includes the Blue Mountain zinc-lead-copper prospect. The EL area is considered prospective for Cobar- type polymetallic base metal (zinc-lead-copper-silver-gold) deposits. The Blue Mountain zinc-lead- copper prospect, Mallee Bull copper-silver-gold deposit and Hera gold-silver-lead-zinc deposit all lie in close proximity to the regional northeast trending Nymagee-Wagga Tank lineament (Figure 1). Blue Mountain is 120km south of Cobar.

The Cobar Basin continues to yield new discoveries since the first copper discovery in 1869. The discovery rate has increased in the past few years as the geology of the region is better understood.

Figure 1: EL 8398 (Gemini) regional geology showing the location of the Blue Mountain zinc- lead-copper prospect, regional metallogenesis and Nymagee-Wagga Tank lineament

EL 8398 (Gemini) was granted on 7 October 2015 for a term of 3 years and covers an area of 289km² centred 120km south of Cobar. Mount Hope is the nearest township.

During the December Quarter Anchor reviewed previous work relating to the Gemini project area with a focus on the Blue Mountain zinc-lead-copper (Zn-Pb-Cu) prospect. The prospect has been subject to intermittent exploration since 1990 by other companies, including RAB (6,299m in 1,182 holes), RC and open hole percussion (2,165m in 20 holes), and diamond (1,375.6m in 2 holes) drilling, which has culminated in a legacy of significant, useful data which Anchor has used to re-interpret geochemical results and define anomalies for detailed follow-up work.

The Blue Mountain zinc-lead-copper prospect has a strong multi-element geochemical signature extending over a strike length of 2,200m defined by previous RAB drilling. A strong bottom hole RAB lead (Pb) anomaly defined by the 200ppm Pb contour extends over a length of 1,400m and width varying from 200m to 500m (Figure 2). Within the 200ppm Pb anomaly is an almost continuous 750ppm Pb anomaly with a peak value of 5,300ppm Pb. Historic drilling intersected numerous zones of zinc-lead- copper mineralisation averaging >0.1% Zn and/or Pb which can often be correlated with high Pb assay values in bottom hole RAB drill results. Four separate zones of Zn-Pb±Cu mineralisation, collectively named the "Pb-Zn system", within the 200ppm Pb anomaly can be interpreted from the drilling data. Significant intercepts reported from previous diamond drilling includes 47m @ 0.78% Zn, 0.24% Pb, and 0.06% Cu from 129m including 24m @ 1.29% Zn, 0.37% Pb, and 0.08% Cu from 146m in BMDD001, and 30m @ 0.61% Zn, 0.05% Pb, and 0.26% Cu from 322m including 14.8m @ 0.95% Zn, 0.06% Pb and 0.29% Cu from 337.2m in BMDD002. Approximately 350m east of the Blue Mountain "Pb-Zn system" is a linear northerly trending copper anomaly defined by the 100ppm Cu contour with a peak value of 250ppm Cu. The copper anomaly is discontinuous over a length of 1,500m and varies in width from 80 to 160m. This copper anomaly is known as the "Cu system". The "Cu system" copper anomaly has never been drilled. There is a coincident 200ppm lead anomaly in the central segment of the "Cu system" copper anomaly. Several smaller 100ppm copper anomalies proximal to the main copper anomaly may form part of the "Cu system". Copper anomalies also coincide with the lead anomaly in the "Pb-Zn system".

The anomalous multi-element Zn-Pb-Cu geochemistry and anomaly footprint, sphalerite-galena- chalcopyrite association, lensoidal geometry of the mineralisation intersected in drilling, and interpreted structural architecture of the Blue Mountain zinc-lead-copper prospect has many similarities to other Cobar-type deposits, including the major producing CSA mine at Cobar.

Further work is required by Anchor to validate this historic work and to develop an exploration program to test these anomalous zones and other possible targets in the project area.

Figure 2: Blue Mountain Zn-Pb-Cu prospect bottom hole RAB Pb and Cu geochemistry