Test

Products

Lead Grade

%

Lead Recovery

Silver Grade

g/t

Silver Recovery

FT1

Cummulative 1st and 2nd

Rougher Concentrates

70.5

96.0%

776

93.6%

FT4

Cummulative 1st and 2nd

Rougher/Cleaner Concentrates

75.4

92.4%

932

90.8%

Test Ref

Primary Grind Size P80

Regrind Size P80

Test Type

pH

Collectors (g/t)

Frother

Test Ref

(mm)

(mm)

Test Type

pH

Collectors (g/t)

Frother

FT1

75

N/A

Rougher

Natural

(8.3)

SEX (80)

3418A (5)

MIBC

FT2

212

N/A

Rougher

Natural

(8.3)

SEX (80)

3418A (5)

MIBC

FT3

150

N/A

Rougher

Natural

(8.3)

SEX (80)

3418A (5)

MIBC

FT4

212

50

Rougher/Regrind/Cleaner

Natural

(8.3)

SEX (400)

3418A (40)

MIBC

FT5

150

50

Rougher/Regrind/Cleaner

Natural

(8.3)

SEX (400)

3418A (40)

MIBC

Element

Units

Concentrate Grades

Element

Units

Penalty Limit

Maronan Clr Concentrate

Al

%

0.1

As

ppm

5,000 to 10,000

494

Bi

ppm

200 to 500

168

Ca

%

5.0

2.7

Cd

ppm

47

Cu

%

1.0 to 1.5

0.4

F

ppm

500 to 1,000

5,440

Fe

%

2.6

Mg

ppm

92

Sb

ppm

2,000 to 5,000

877

Se

ppm

45

Sn

ppm

600 to 1,000

0

Te

ppm

0

Tl

ppm

20

11

Zn

%

0.6

Property

Soft

Medium

Hard

Very Hard

Bond Work Index (kWh/t)

7-9

9-14

14-20

>20

Maronan 75 micron

12.19

Maronan 212 micron

8.4

Criteria

JORC 2012 Explanation

Commentary

Sampling Techniques

Nature and quality of sampling

The extent of mineralisation at Maronan has been defined

by 49 HQ/NQ diamond core drill holes drilled by four different companies since 1987 until the present. The spacing between drill hole pierce points when viewed on a longitudinal section is about 200 metres both vertically and laterally but varies between about 100 and 400 metres. The 49 holes average 669m deep and range in depth between 150m and 1469m. Holes were generally angled towards grid east between -55 and -90 degrees to optimally intersect the mineralised zone. Mineralisation in MRN14004, MRN14006, MRN14007, MRN14008 was drilled with NQ2 diameter core while MRN14002, MRN14003, MRN14005 were drilled with HQ diameter core.

Physical core is available for 39 of the 49 holes. Paper copies of original laboratory reports and geological logs are available for 15 historic holes. Digital laboratory reports and geological and geophysical logs are available for the 34 more recent holes.

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

At Maronan ½ NQ2 core or ¼ HQ diameter core has been sampled to ensure sample representivity for all holes. Continuous geologically defined intervals were regularly sampled at a 1.0 meter interval locally down to 0.4 metre or up to 1.5m based on geological controls. These high quality samples were logged for lithology, density, magnetic susceptibility, structure, RQD and other attributes.

Second ¼ core duplicate samples were collected at selected intervals to check sample representativity. Quality control checks using standards, blanks or duplicates are included at a sample rate of about one in ten.

Aspects of the determination of

mineralisation that are Material to the

Public Report.

Diamond core drilling was used to obtain nominal 1 metre

samples from which up to 3kg of ½ or ¼ NQ2 or ¼ HQ diameter core was pulverised to produce a sub-sample for four-acid (near total) digest and multi-element analysis using ICP/OES and ICP/MS determinations. Gold was determined using a separate 50g charge for fire assay. High-grade base metal results >1% were repeated using an ore-grade ICP/AES technique which utilises an aqua-regia acid digest suitable for high-sulphide ores.

Drilling Technique

Drill type (eg core, reverse circulation,

open-hole hammer, rotary air blast,

auger, Bangka, sonic, etc.) and details

(e.g. 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.).

For MRN14001A to MRN14008 a conventional wire-line

core rig was utilised to extract PQ, HQ2 and then either HQ

or NQ2 diameter core samples in mineralisation. MRN14007 was drilled as an HQ wedge off previous hole MRN13002.

Core orientation measurements were attempted every 3 to

6 metre core run using a Reflex ACT orientation tool. The

majority of measurements were successful.

Drill Sample Recovery

Method of recording and assessing core

and chip sample recoveries and results

assessed.

The length of recovered core and the core rock quality are

logged for each core run. Core recovery throughout the

fresh sulphide mineralised zones in MRN14001A to

MRN14008 is very good (100%).

Measures taken to maximise sample

recovery and ensure representative

Diamond core is reconstructed into continuous runs on an

Criteria

JORC 2012 Explanation

Commentary

nature of the samples.

angle iron cradle and marked with orientation lines.

Depths are checked against depths marked on the core blocks and rod counts are routinely performed by the drillers.

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.

Insufficient data is available to determine a bias relationship between poor sample recovery and grade. Not relevant with respect to MRN14001A to MRN14008 samples.

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.

Quantitative geotechnical logging including RQD, core

recovery, fracture frequency, and qualitative hardness are measured for each core run.

Qualitative and quantitative codes and descriptions are used to record geological data such as lithology, mineralisation, alteration and structure prior to sampling. Magnetic susceptibility is quantified for every assay sample interval (about 1 metre) within the mineralised section and every core run (3 to 6 metres) within the hanging wall and footwall rocks. Density is quantified for every assay sample interval.

Core photography

Core is photographed wet and dry.

The total length and percentage of the relevant intersections logged.

The total mineralised length of drill holes MRN14001A to MRN14008 has been geologically and geotechnically logged.

Sub-sampling

techniques and

sample preparation

If core, whether cut or sawn and whether

quarter, half or all core taken.

MRN14001A to MRN14008 were sampled using either

sawn ½ NQ2 or ¼ HQ2 diameter core. All core was cut so

as to preserve the orientation mark.

Pre-collar material is logged but not assayed and preserved as a record in either chip trays, bags or PQ core.

For all sample types, the nature, quality

and appropriateness of the sample preparation technique.

The sample preparation of recent diamond cores follows

industry best practice and sample preparation involving oven drying, coarse crushing of the ½ NQ2 core or ¼ HQ core sample to 70%

Quality control procedures adopted for

all sub-sampling stages to maximise representativity of samples.

QC controls have been variable during the life of the

project. Recent field QC procedures, including drill holes MRN14001A to MRN14008, involve using certified reference materials as assay standards along with blanks and sample duplicates. In weathered zones with native copper quartz washes were used. The insertion rate for standard, blanks and duplicates in the mineralised zones is about 1 in 10 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.

MRN14001A to MRN14008 were sampled using ¼ HQ or ½ NQ2 core. Second ¼ core NQ2 and HQ duplicate samples were assayed to check sample representativity at selected intervals. ¼ core NQ2 duplicates show a good correlation to about 5% lead but a higher variance for lead grades >

5%. ¼ HQ duplicates show a good correlation.

MRN14001A to MRN14008 show a variability of between

10% and 15% in areas of gold >1g/t.

Whether sample sizes are appropriate to

the grain size of the material being

sampled.

The ½ NQ2 and ¼ HQ sample size are considered

appropriate to correctly represent the sulphide

mineralisation based on the styles of mineralisation

(medium-coarse-grained, bedded lead sulphide and

Criteria

JORC 2012 Explanation

Commentary

medium-grained copper vein zones), the thickness and consistency of the intersections, the sampling methodology and the percent assay grade range of the mineralisation.

Quality of assay data

and laboratory tests

The nature, quality and appropriateness

of the assaying and laboratory procedures used and whether the technique is considered partial or total.

Recent samples use four acid (near total) digest techniques

and multi-element analysis using an ICP/MS determination. The acids used are hydrofluoric, nitric, perchloric and hydrochloric acids suitable for silica and sulphide based samples. High-grade base metal results

>1% were repeated using an ore-grade ICP/AES technique which utilises an aqua-regia acid digest suitable for high- sulphide ores.

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.

No geophysical tools were used to determine element

concentrations at Maronan

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

Although variable through the projects history, industry standard QA and QC controls have been applied to most of the 34 more recent holes. No QC data is available for the

15 historic holes

For recent samples certified reference materials with a good range of values and blanks were inserted blindly and randomly at a rate of 1 in 10 over the mineralised intervals while the laboratory routinely runs duplicate checks from the pulverised sample. All base metal results greater than

1% are re-assayed using an ore-grade technique. Results

highlight that the sample assay values are accurate and that contamination has been contained. Routine repeat or duplicate analyses by the laboratory reveal the precision of the analysis is within acceptable limits.

The QA/QC procedures of the historic assay data are

unknown and their level of accuracy and precision is unknown.

Verification of

sampling

and assaying

The verification of significant

intersections by either independent or alternative company personnel.

Core from MRN14001A to MRN14008 has been visually

verified by the Managing Director and a Senior Geologist.

The use of twinned holes.

No holes have been twinned at this stage of exploration.

Documentation of primary data, data

entry procedures, data verification, data storage (physical and electronic) protocols.

Primary data was entered in the field into a portable

logging device using standard drop-down codes. Text data files are exported and stored in an Access database. Mapinfo software is used to check and validate drill-hole data.

Discuss any adjustment to assay data.

No adjustments or calibrations were used in any of the assay data.

Location of data

points

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.

The collar position for MRN14001A to MRN14008 has been

surveyed by Handheld GPS using MGA_GDA94, Zone54

datum.

All holes in the Maronan database have been surveyed down-hole using Reflex style and conventional Eastman down-hole cameras. Gyroscope surveys have been completed on 9 of the recent Maronan holes. The collar positions of historical holes were located using a locally established grid with an AGD66 datum. Location accuracy of the historical holes is estimated at 1-5 metres. Recent holes have been located using hand held GPS systems accurate to about 2-5 metres.

Criteria

JORC 2012 Explanation

Commentary

Holes MRN14002, MRN14003, MRN14004, MRN14007 and MRN14008 were re-surveyed using a Reflex down-hole gyroscope. Results from the gyro survey indicate that the end-of-hole position determined by the Reflex survey instrument is typically within 5 metres to 30 metres of the gyroscopically surveyed locations.

Specification of the grid system used.

All recent holes use MGA_GDA94_Zone54 datum. Historic

holes used a local grid with an AGD66 datum and have

been converted to a MGA_GDA94 datum.

Quality and adequacy of topographic

control.

Topographic relief has been surveyed during a detailed 50

metre x 50 metre gravity survey. The region is flat with relief varying less than 3 metres over the project area.

Data spacing and

distribution

Data spacing for reporting of Exploration

Results.

The spacing between drill hole pierce points when viewed

on a longitudinal section at Maronan is about 200 metres

both vertically and laterally but locally varies between about 100 and 400 metres. MRN14007 is about 31 metres north and 66 metres vertically below the pierce point of MRN13002.

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.

The drill pierce point spacing is sufficient to outline the broad extent of mineralisation and grade variations in the mineral system however no Mineral Resources or Reserves have been defined to date.

Whether sample compositing has been

applied.

No sample compositing has been applied

Orientation of data in

relation to geological

structure

Whether the orientation of sampling

achieves unbiased sampling of possible

structures and the extent to which this is

known, considering the deposit type.

Bedded mineralisation appears folded about steep

plunging tight to isoclinal fold structures. Limbs of the

folds and the axial planar foliation are sub-parallel and dip between 60 and 80 degrees towards the west northwest. Structural remobilised mineralisation in MRN14007 and other holes appears to parallel the axial plane to the northern fold structure which dips between 60 and 80 degrees towards the west northwest. East directed drilling provides a representative, unbiased sample across the isoclinal folded bedded mineralisation and axial planar, structure remobilised mineralisation. The core to bedding angle of mineralisation typically varies between 20 and 50 degrees but can be locally more or less were bedding is folded

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.

Continuity of the lead and silver mineralisation appears to have a steep bias, in the down dip-direction of the bedding, down the plunge direction of the northern fold structure. Fold structures, mineral and intersection lineations measured from the core indicate a steep plunge of about

70 degree towards 284 degree (grid). Causes of lateral and

vertical variations of the grade and thickness of mineralisation within the bedding planes have not been resolved because of the wide spacing of the drilling.

Sample security

The measures taken to ensure sample

security.

Chain of custody is managed by Red Metal. Samples from

Maronan are packaged and stored at the company's field house in Cloncurry. The company's personal deliver the samples to NQX freight office in Cloncurry for deliver to a laboratory in Townsville. The freight company and laboratory provide an online tracking service for all samples.

Audits or reviews

The results of any audits or reviews of sampling techniques and data.

No external audits have been undertaken at this early stage.

Criteria

JORC 2012 Explanation

Commentary

Mineral tenement and land tenure status

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 settings.

Maronan is located within EPM 13368 situated in the Cloncurry region of north-west Queensland. EPM 13368 is owned 100% by Red Metal Limited. No material ownership issues or agreements exist over the tenement. An ancillary exploration access has been established with the native title claimants and a standard landholder conduct and compensation agreement has established with the pastoral lease holders

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.

The tenements are in good standing and no known

impediments exist

Exploration done by

other parties

Acknowledgment and appraisal of

exploration by other parties.

The extent of mineralisation at Maronan has been defined

by 49 diamond core drill holes drilled by five different

companies since 1987 until the present. Shell/Billiton/Acacia discovered base metal mineralisation on the project in 1987 and completed 12 shallow holes to

1993. From 1995 to 1996 MPI completed 3 holes into the

northern and southern fold hinge structures. From 2001 to 2004 Phelps Dodge completed 5 holes. BHP Cannington undertook a campaign of silver-lead exploration from 2006 to 2008 completing 13 holes. Red Metal Limited has completed 16 holes from 2011 to the present seeking depth extensions to the bedded silver-lead and separate copper-gold mineralisation.

Geology

Deposit type, geological setting and style

of mineralisation.

Exploration on Maronan has identified two separate styles

of mineralisation, bedded lead-silver mineralisation

partially overprinted by structurally controlled, copper-gold mineralisation.

The silver-lead mineralisation is of a similar style to the nearby Cannington deposit, one of the world's largest silver and lead producing operations. The Maronan silver- lead mineralisation occurs in two separate but sub-parallel banded carbonate-lead sulphide-magnetite-calcsilicate units referred to as the Upper Banded Lead Sulphide (Upper BLS) and Lower Banded Lead Sulphide (Lower BLS) horizons. The two horizons can be separated by up to 100 metres of quartz clastic meta-sediments (psammites, pelites and quartzite). At the northern fold structure the horizons are folded forming a steep plunging tight to isoclinal fold structure with attenuated or transposed limbs and a thickened hinge zone region.

The overprinting copper-gold mineralisation can be compared with the IOCG mineralisation styles at the nearby Eloise and Osborne ore bodies. Mineralisation is associated with intense silica alteration within a bedding- parallel structure focused between the Upper LBS and Lower LBS and comprises strong pyrrhotite with variable chalcopyrite and minor magnetite.

Both mineralisation styles have shown improvement in grade and widths at depth and remain open down-plunge and at shallow levels between the existing wide spaced intercepts.

Criteria

JORC 2012 Explanation

Commentary

Drill hole Information

A summary of all information material to

the understanding of the exploration results including a tabulation of survey information for all Material drill holes:

Refer to Table 2 for drill hole survey data for all the 2014

drill holes.

Data aggregation

methods

In reporting Exploration Results,

weighting averaging techniques, maximum and/or minimum grade truncations (e.g. cutting of high grades) and cut-off grades are usually Material and should be stated.

The assumptions used for any reporting of metal equivalent values should be clearly stated.

All mineralised intervals have been length weighted. No

top-cuts have been applied. A nominal 1% lead, 0.1 % copper and 0.5g/t gold lower cut-off grade is applied unless stated otherwise.

None are reported.

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').

True widths for each hole are estimated by measuring the

alpha and beta values relative to the oriented core axis for

bedding, banding or veining throughout the footwall, hangingwall and mineralised zone. Where possible measures are taken every sample interval throughout the mineralised zone. Estimates of the true width are calculated using the detailed orientation data and presented with the intercept width when assays are reported, refer to Table 1.

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 Figures 1 to 5 in this report

Balanced reporting

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.

Refer to Tables 2 for a summary of assay data from the

2014 drill program.

Other substantive

exploration data

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.

The specific gravity of the lead and silver mineralisation

from the 2014 program ranges from 2.37 to 4.28 and averages about 3.17. Preliminary metallurgical test results are presented in this announcement.

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).

Interpreted grade shells are currently being used to

generate a three dimensional block model of the lead-silver mineralisation over the whole deposit.. The block model together with the preliminary metallurgical results will aid underground mining studies and scenario modelling which are scheduled to begin shortly. This work will enable Red Metal to better assess the geological and commercial significance of the deposit. Future work programs will be designed once this interpretation is complete.