Annual Group Technical Exploration Report Year 3 The Moroak Project EL 29349, EL 29490, EL 29493 and EL 30115 period 4 January 2015 to 3 January 2016

Abstract

This Group Annual Report outlines exploration activities undertaken on Exploration Licences EL 29349, EL 29490, EL 29493 and EL 30115 from 4th January 2015 to 3rd January 2016. This period represents Year Three of the Combined Reporting Group Licenses. The Exploration Licences are situated on the Urapunga (SE53-03) 1:250,000 mapsheet, and Moroak 1:100,000 topographic mapsheet in the Roper Region of the Northern Territory. They are located approximately 100 kilometres east of Mataranka and are accessed via existing sealed road. During this period, the original partners entered into a Joint Venture Agreement with a new incoming partner, Kalyan Resources Pty. Ltd. to which, Kalyan Resources also became Operator. Furthermore, application was made and approved for the inclusion of EL 30115 to form part of this Group Annual Report for the Moroak Project. On-ground activities were also completed during the reporting period. These included a further ground reconnaissance which was focused on detailed mapping, and determining the location of historic drill collars and access tracks, for the purposes of planning a drilling program. The results from the 2014 sampling program which were incomplete at the time of the year 2 reporting became available. After conducting the on-ground activities and receiving the results from the 2014 sampling program, we were able to commence preparing a Risk Management Plan and Mining Management Plan for submission to the relevant government departments in order to conduct drilling. The Risk Management Plan was finalized and lodged during this period. We look forward to conducting further and more intensive exploration activities in the coming year. Exploration activities planned for Year Four of the Moroak Project include the submission of the Mining Management Plan in the near future in order to conduct a limited drilling program in the ensuing months.