Annual Technical Report ML 29678 and ML 29679 Redbank and Glencoe 27 September 2013 to 26 September 2014

Abstract

The Glencoe and Redbank tenements fall within the Archaean to Paleoproterozoic Pine Creek Orogen (PCO), one of the major mineral provinces of Australia. The PCO is a deformed and metamorphosed sedimentary basin up to 14 km maximum thickness covering an area of approximately 66,000 km2 and extending from the Katherine area in the south to Darwin in the north. It hosts significant resources of gold, uranium and platinum group elements ('PGEs'), as well as substantial base metals, silver, iron and tin-tantalum mineralisation. Gold production at the Glencoe mine began in 1989 with Magnum Gold N.L. with the extraction of ore from the four pits (West open pit, North Central, Mid Central and South Central). From 1989 to 1990, a total of 49,000 tonnes of ore at 2.44 g/t Au was mined, which was milled at the Mount Bonnie plant for a 87% recovery. In late 2012 Crocodile Gold transported roughly 32,000 of low grade stockpiles from the Glencoe deposit to the Union Reefs Mill. The average grade of the material was around 1g/t and recovery was around the 90% mark. Around 900 ounces of gold were produced from these stockpiles. Glencoe has a reported Mineral Resource and Mineral Reserve as detailed in the 2013, NI43-101 report titled 'Report on the Mineral Resources and Mineral Reserves of the Burnside Gold and Base Metal Project in the Northern Territory Australia for Crocodile Gold Corp.' This report is available on the website SEDAR.com. During the past reporting period much work has been completed on releasing this Mineral Resource and Reserve publicly. The final results were an indicated resource of 187,000 tonnes at 2.12g/t Au for 13,600 ounces and an inferred resource of 33,000 tonnes at 2.47g/t Au for 2,600 ounces. The mineral reserve for the Glencoe deposit is recorded as 60,000 tonnes at 2.48g/t Au for 4,720 ounces at a cut-off of 0.95g/t Au. Exploration activity for the previous 12 months included tenement reporting for ML29678, which included a complete review of the historic data pertaining to the area. Activity for ML 29679 included a review of the mineral resources as well as a compilation for the Reserves and Resources report. The historic drilling pertaining to the area was also reviewed with the generation of a new resource model underway. Rehabilitation work over the stockpile area and historic drill holes associated with ML 29679 was also conducted during the reporting period. Worked planned for the next reporting period includes a complete review of the historical drilling data pertaining to both ML 29678 and ML 29679. A small grab sample program will also be developed for ML 29679 and ML 29678.