Phoenix Copper Limited

ABN 67 127 446 271

Level 1, 135 Fullarton Road

Rose Park, SA 5067

Australia

Telephone +61 (0) 8 8364 3188

Facsimile +61 (0) 8 8364 4288 [email protected] www.phoenixcopper.com.au

ASX Announcement 8 December 2014

EXTENSIVE MASSIVE SULPHIDE ZONES INTERSECTED AT IRON BLOW

• First hole drilled by Phoenix Copper at Iron Blow intersected two thick zones of massive sulphides

o an upper 49.6m zone from 156.5m to 206.1m downhole; and

o an underlying second zone of 38.6m from 220.1m downhole

• From 258.7m to 354m sulphides are still present but disseminated in nature

• Downhole EM survey to follow to potentially identify additional massive sulphide zones

• Core is being logged, cut and sent for assay with results expected shortly

Phoenix Copper Limited (ASX:PNX) is pleased to report that the first diamond drill hole at Iron Blow, IBDH023 has been completed and visual results are very encouraging.

Excellent First Hole

IBDH023 was drilled to a depth of 365.8m and was targeting the central zone of mineralisation at the Iron Blow resource. The hole intersected typical Mount Bonnie Formation siltstones and mudstones with a thick upper zone of massive sulphides of approximately 49.6 metres from 156.5m to 206.1m downhole (Figure 1). This is underlain by a unit of silicious siltstone containing disseminated sulphides with quartz veins, pyrite and a small amount of arsenopyrite.

A second lower zone of massive sulphides of approximately 38.6 metres was intersected between

220.1m and 258.7m downhole. Below this zone, quartz veined and brecciated siltstones and mudstones with appreciable amounts of disseminated and stringer sulphides were intersected.

The massive sulphide intercepts comprise pyrrhotite, sphalerite, arsenopyrite, galena and chalcopyrite and are visually consistent with core from diamond drill hole IBDH007 where exceptional grades were previously recorded:

• IBDH007 - 20.3m @ 5.89g/t Au, 481.6g/t Ag, 13.92% Zn, 3.10% Pb and 0.61% Cu from 193m1

The true thickness of the massive sulphides is estimated to be approximately 65% of the downhole thickness, this will be confirmed by structural interpretation.

Downhole surveys show that the hole remained on or very close to the planned path and tested the massive sulphides at the planned pierce point.

Samples are being prepared for assay and results will be released when available.

1 Refer ASX release 18 August 2014

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Ongoing Work

A second hole, IBDH024, has commenced with the aim of testing the section 50m to the north of IBDH023 and will be drilled to a depth of approximately 375m (Table 1). This hole is designed to test for any extensions of the mineralisation intersected in IBDH015 and, like hole IBDH023, will also test the system to a sufficient depth to enable downhole EM to probe for possible extensions beyond the known depths of mineralisation (Figure 3).

Figure 1: Iron Blow drill hole IBDH23 showing interval of massive sulphides from 182.8m (top left) to 190.7m (bottom right). This is from an interval of massive sulphides from 156.5m to 206.1m downhole. The brassy coloured sulphides are massive pyrrhotite with darker zinc sulphide (sphalerite). Bands of yellow chalcopyrite are clearly visible.

A further two holes were planned as part of this drill program at Mount Bonnie (Figure 3) to test the strike extent of the known mineralisation. Due to the onset of the wet season in the Northern Territory, Phoenix Copper and its drilling contractor have made the decision to delay this work until 2015. The surface and downhole EM surveys will also be conducted in the new year.

An Inferred Mineral Resource Estimate (reported in accordance with 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves) was recently completed for the Iron Blow deposit (Table 2).

Managing Director Comment

Managing Director of Phoenix Copper, James Fox said, "It is very pleasing to see in our first hole extensive downhole massive sulphide mineralisation in thicker zones than defined by previous drilling. We look forward to seeing the assay results shortly. Structural interpretation, re-logging of the existing core and surface and downhole EM surveys will all assist in targetting new areas of mineralisation at Iron

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Blow. QEMSCAN test work has also commenced which will allow us to construct and customise a flotation program, to maximise payable metals into marketable products."

IBDH023

IBDH015

IBDH024

IBDH007

Area of possible mineralisation, along strike, not closed off by previous drilling

Figure 2: Drill plan of Iron Blow deposit showing proposed holes highlighted by red stars.

Colour-coded mineralisation outlines have been taken from AMC Consultants Pty Ltd's resource model.

Prospect	Hole ID	MGA East	MGA North	Dip	MGA Azimuth	Depth
Iron Blow IBDH023 776238 8504403 -60 276 365.8m
Iron Blow IBDH024 776335 8504441 -60 276 375m*

Table 1: Drill hole details for Iron Blow. * hole in progress, exact end of hole depth may vary ±8m.

Depth	AuEq cut-off (g/t)	Tonnes	AuEq (g/t)	Au (g/t)	Ag (g/t)	Cu (%)	Pb (%)	Zn (%)	ZnEq %
> -90 mRL	0.7	2.2Mt	6.7	2.4	140	0.3	1.0	4.9	11.8
	3.0	0.4Mt	5.6	2.7	71	0.4	0.4	4.1	10.0
Total Inferred Mineral Resource	2.6Mt	6.5	2.4	130	0.3	0.9	4.8	11.5
Total Contained Metal	543,000 oz	203,000 oz	10,700,000 oz	7,000 t	23,000 t	125,000 t	300,000 t

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Table 2: Iron Blow Inferred Mineral Resource Estimate as at 8th October 2014. See ASX release 3 November 2014,

'High Grade Mineral Resource Estimate for Iron Blow Deposit', where further details are provided. Note there has

been no material change in the Mineral Resource Estimate since it was first reported.

Iron Blow

Mt Bonnie

Figure 3: Iron Blow and Mount Bonnie deposits at the Hayes Creek Project

Competent Person's Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Graham Ascough, a Competent Person who is a Member of the Australasian Institute of Mining and Metallurgy (AusIMM) and a Director of the Company. Mr Ascough has sufficient experience relevant to the style of mineralisation and the type of deposits under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Ascough consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

James Fox Peter Taylor

Managing Director & CEO Investor Relations

Telephone: +61 (0)8 8364 3188 Telephone: +61 (0) 412 036 231

Email: [email protected] Email: [email protected]

Website: www.phoenixcopper.com.au

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JORC Code, 2012 Edition - Table 1

Section 1 Sampling Techniques and Data

Criteria JORC Code explanation Commentary

Sampling techniques

Drilling techniques

Drill sample recovery

• Nature and quality of sampling (e.g. cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as downhole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

• Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

• Aspects of the determination of mineralisation that are Material to the

Public Report.

• In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

• Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

• Method of recording and assessing core and chip sample recoveries and results assessed.

• HQ3 diamond core samples.

• All core has been geologically logged by the onsite geologist.

• Magnetic susceptibility measurements taken using a Fugro GSM-2 instrument.

• Field portable XRF measurements taken for 32 elements (Ca, Ti, V, Cr, Mn, Fe, Co, Ni, Cu, Zn, As, Rb, Sr, Zr, Mo, Ag, Cd, Sn, Sb, W, Hg, Pb, Bi, Th, U, P, S, Cl, K, Se, Y and Au) using an Olympus-InnovX "DELTA Premium DP4000C" with a Ta/Au anode. The instrument conducts a self-calibration prior to each use and is also checked against standard reference samples

• Mineralised intercepts have been verified using the field portable XRF

instrument which gives a qualitative measure of the relevant elemental abundances.

• Diamond drilling from surface with HQ3 (61.1 mm) coring utilising a triple tube. Drilling was carried out by May Drilling of Humpty Doo, Northern Territory using a track-mounted HD900 drilling rig.

• All holes will be inclined diamond drill holes.

• Core orientations were measured by May Drilling personnel using a Reflex Digital Ori tool. Orientation measurements allowed most core to be successfully oriented. Some broken core resulted in minor sections of core not being oriented but this is insufficient to cause any uncertainty in the overall structural interpretation.

• A Reflex Easy Track survey tool was used by May Drilling at regular intervals (on average approximately every 20m downhole) as instructed by Phoenix's on-site geologist to monitor the location of the bottom of hole.

• Core recovery was measured for each core run (typically 3 to 6 m), significant core loss was recorded for the first 32 metres (within the

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Criteria JORC Code explanation Commentary

• Measures taken to maximise sample recovery and ensure representative nature of the samples.

• 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 geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

• Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

• The total length and percentage of the relevant intersections logged.

oxidized and weathered material), with little or no core loss noted within fresh rock.

• No relationship is noted between core recovery and grade - sampling is yet to be carried out.

• All core has been geologically logged by the onsite geologist,

• RQD was measured for each metre.

• All core has been photographed prior to cutting for assay.

• Mineralised intersection widths and grades yet to be determined as assays have not been completed.

Sub-sampling techniques and sample preparation

Quality of assay data and laboratory tests

• If core, whether cut or sawn and whether quarter, half or all core taken.

• If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

• For all sample types, the nature, quality and appropriateness of the sample preparation technique.

• Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

• Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

• Whether sample sizes are appropriate to the grain size of the material being sampled.

• The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

• For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc.

• Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

• All core was cleaned and metre intervals marked up prior to cutting and sampling.

• All samples to be submitted for assay will comprise sawn quarter core samples.

• After cutting the half or three quarter core remaining in the trays contains the orientation and metre marks.

• Samples of all mineralised intercepts will be submitted for assay.

Intervals not submitted for assay are not expected to be mineralised.

• Individual samples will be placed in individual sample bags and clearly identified prior to submission to the laboratory for assay.

• The sample sizes are appropriate for the grain size of the material being sampled.

• Samples will be submitted to Northern Australian Laboratories (NAL)

in Pine Creek, Northern Territory.

• After crushing and pulverizing to - 100 microns, each sample is roll mixed on a rubber mat after pulverizing, a barren flush is pulverized between each sample, the samples are subjected to a four acid

digest (considered a total digest for the elements of interest) and read using ICP-MS and OES for a suite of elements (lab methods G400).
A sub-sample of the pulverized sample is also submitted for conventional fire assay for gold (FA50).

• Selected density determinations will be carried out by the laboratory.

Measurements are made using the Archimedes method (weight in air versus weight in water). Each sample is dried at 140 degrees C for 2 hours and weighed in air. Then each sample is coated with lacquer

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Criteria JORC Code explanation Commentary

(that does not interfere with assay processes) and weighed in water.

• NAL's internal standards and blanks results will be reviewed to verify the accuracy of the assays.

• In addition to the laboratory standards, Phoenix Copper will insert duplicate samples at appropriately spaced intervals. These will be collected by cutting another quarter of the core, leaving half core remaining in the tray for that interval.

• Commercially obtained standard reference samples will be submitted with the assay samples as part of the sample number sequence.

• Blank samples are also included to check against contamination between samples in the laboratory.

• Approximately 1 QA/QC sample (duplicate, blank, or standard) is included every 16th sample on average.

• No assays have been received as yet so no assessment of accuracy is possible.

Verification of sampling and assaying

Location of data points

• The verification of significant intersections by either independent or alternative company personnel.

• The use of twinned holes.

• Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

• Discuss any adjustment to assay data.

• Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

• Specification of the grid system used.

• Quality and adequacy of topographic control.

• No twinned holes have been carried out. Drill hole IDBH023 is drilled between previous drill holes and IBDH006 and IBDH007. While assay results are yet to be received, the massive sulphide zones intersected are consistent with previous drill results.

• Independent verification of the significance of the drilling intercept is yet to be carried out.

• All logging has been carried out using standardised logging codes to professional standards. All geological, geotechnical and sampling information has been entered into a digital database. Validation of the digital data is yet to be carried out.

• All hard copies of information are stored on site. Digital copies are held on site and at Phoenix's Adelaide office.

• Assays have not been received so no data adjustments have been made.

• Downhole surveys are considered accurate. Several azimuth readings from within the massive sulphide are affected by the magnetic pyrrhotite mineralisation. Once through the magnetic sulphides the azimuth readings are considered accurate and no excessive drill hole deviation has been noted. Any unreliable azimuth readings have been corrected by extrapolating between accurate surveys.

• The drill collars were located using a Garmin GPS Map 60 hand-held

GPS unit and verified using a second unit. The drill hole locations are

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Criteria JORC Code explanation Commentary

considered accurate to within 7 m and this is sufficient for the nature of the drilling. All coordinates are quoted using the GDA94 datum and projected to MGA zone 52.

• Topographic variation at Iron Blow is minimal and not considered significant.

Data spacing and distribution

Orientation of data in relation to geological structure

• Data spacing for reporting of Exploration Results.

• Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

• Whether sample compositing has been applied.

• Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

• If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

• The sample spacing is sufficient to establish the grade continuity.

Intervals are determined from geological contacts and then at metre intervals within a particular unit. Where isolated samples are less than one metre in width they have been cut to geological boundaries.

• No sample compositing has been carried out.

• The mineralisation appears to be folded and some parts of the drill hole have intersected the mineralisation at low angle. Further geological interpretation and structural analysis is required to determine the exact relationship.

• Any biasing effect is yet to be determined.

Sample security

Audits or reviews

• The measures taken to ensure sample security. • Logging and sampling has been carried out by Phoenix Copper personnel on site and samples submitted to the laboratory by the same people.

• No third parties have been allowed access to the cores or samples.

• The logging and sampling area is within a locked compound when

Phoenix Copper personnel are not on site.

• The results of any audits or reviews of sampling techniques and data. • Auditing of the duplicate and standard samples will be carried out when assays are received.

• Comparison of the assay results versus the field portable XRF

analyses will also be carried out.

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria JORC Code explanation Commentary

Mineral tenement and land tenure

• Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental

• The Iron Blow deposit is located within MLN214 which covers an area of some 6.27 hectares, and the Mount Bonnie drilling is within MLN1033 which covers an area of 4.75 hectares and MLN1039

which covers an area of 1.23 hectares and forms part of the Burnside

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Criteria JORC Code explanation Commentary

status settings.

• The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area.

Project.

• The deposit and drilling is situated within Pastoral Lease No. 903, Douglas, held by Tovehead Pty Ltd.

• The Mineral Leases are in good standing and no known impediments exist.

• A Sale and Purchase Agreement and Heads between Phoenix

Copper Ltd and Crocodile Gold Australia Pty Ltd was signed on 15
August 2014, the Agreement includes the 100% acquisition of 15 (now 14 with conversion of two MCNs to a single ML) mining leases containing the Iron Blow and Mount Bonnie deposits. Formal
completion occurred on 20 November 2014.

Exploration done by other parties

• Acknowledgment and appraisal of exploration by other parties. • Previous exploration at Iron Blow and Mount Bonnie has consisted of geological mapping, surface geochemical sampling and diamond drilling.

• Crocodile Gold Limited carried out an extensive drilling program at both deposits. Cores for these holes have been inspected and reclogged (thereby verified) by Phoenix Copper Ltd personnel and all work was carried out to the appropriate professional standard.

• Extensive exploration on the broader tenement package by previous explorers has focused on gold exploration. Numerous base metal prospects have been identified in surface geochemical sampling by these explorers that have not been adequately followed up due to the lower gold values.

• The previous focus on gold has likewise meant that little or no ground geophysical prospecting has been carried out. Several airborne EM (VTEM) surveys have previously been flown over parts of the tenement package. Numerous conductors prospective for base metals have been identified by Phoenix Copper Ltd for further ground trothing and follow-up work.

Geology • Deposit type, geological setting and style of mineralisation. • Iron Blow and Mount Bonnie are stratabound base metal, silver and gold massive sulphide deposits. They are located within the Mount Bonnie Formation of the South Alligator Group, within the Pine Creek Orogen of the Northern Territory. Both deposits appear to be located at similar stratigraphic positions on opposite limbs of the roughly

north-south trending Margaret Syncline.

• Mineralisaton is hosted within carbonaceous siltstones and mudstones within the Mount Bonnie Formation. It appears to have formed early in the basin development and has associated footwall

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Criteria JORC Code explanation Commentary

alteration consisting of variable proportions of chlorite, amphibole, calcite, silica, and talc with associated vein and disseminated sulphides. The mineralisation appears to be of sedimentary exalative style (SEDEX) with affinities to volcanic hosted massive sulphide deposits (VHMS). Further work is required to determine the exact association.

• The massive sulphide mineralisation is dominantly massive pyrrhotite with zones of coarse-grained, high-grade sphalerite, arsenopyrite, chalcopyrite, with lesser galena. Significant silver and gold grades

are also present in previous drillholes within the massive sulphide and within adjacent quartz-veined and brecciated sediments containing significant disseminated and stringer sulphides.

• Mineralisation at both Iron Blow and Mount Bonnie is structurally complex and appears to be deformed by the regional deformation events. Structural mapping and logging is in progress to determine the precise nature, timing, and geometry of the mineralized bodies.

Drill hole

Information

Data aggregation methods

• A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

o easting and northing of the drill hole collar

o elevation or RL (Reduced Level - elevation above sea level in

metres) of the drill hole collar

o dip and azimuth of the hole

o down hole length and interception depth

o 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.

• In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated.

• Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation 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.

• Refer to Table 1 of main announcement for drill summary details.

• No aggregation or averaging has been carried out.

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Criteria JORC Code explanation Commentary

Relationship between mineralisation widths and intercept lengths

• These relationships are particularly important in the reporting of

Exploration Results.

• If the geometry of the mineralisation with respect to the drill hole angle is known, its 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 (e.g. 'down hole length, true width not known').

• The core to bedding relations ships suggest that the true widths of the sulphides are estimated to be approximately 65% of the downhole widths quoted, however further structural interpretation will be

required to confirm this.

• The structural geometry is still uncertain and further structural analysis and interpretation is required to better understand the true mineralisation widths.

Diagrams • Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views.

• Refer to main announcement.

Balanced reporting

Other substantive exploration data

• Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results.

• Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

• All matters of importance have been included.

• All relevant information has been included.

Further work • The nature and scale of planned further work (e.g. tests for lateral extensions or depth extensions or large-scale step-out drilling).

• Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

• Surface and DHEM is planned to refine the geometry of the massive sulphides and to search for extensions at depth and along strike.

• Further mapping, rock chip and soil sampling is planned for next field season over selected targets followed by diamond drill or RC drill testing.

• Detailed structural mapping and logging at Mount Bonnie and Iron

Blow is in progress.

• Detailed geological interpretations will be done following modelling of the geophysical data and integration with drilling and mapping results.

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