Annual Tenement Report EL 22957 Spring Hill Project for the period 13 January 2015 to 12 January 2016

Abstract

This annual tenement report provides a synthesis of the activities undertaken across EL 22957 ('the Licence') for the period of 13th January 2015 through to the 12th of January 2016. The Licence was granted on the 13th of June 2003 and was managed by TM Gold Pty Ltd, formerly a wholly owned subsidiary of Thor Mining PLC since mid 2011 under a farm in agreement with Western Desert Resources Limited. On the 16th of December 2016, Thor Mining PLC entered into an option agreement to sell 100 percent of Spring Hill Project via the sale of TM Gold Pty Ltd. At this stage PC Gold Pty Ltd ('PC Gold') has purchased a 60 percent interest in TM Gold Pty Ltd and complete operator control of the project. PC Gold Pty Ltd can purchase the remaining 40 percent interest in TM Gold Pty Ltd via paying $1.5M cash consideration within 12 months of signing. The Licence is underlain by sediments of the South Alligator Group and the Finniss Group of Palaeoproterozoic age. These lithologies have been folded along a north westerly trending axes and the folds are tight isoclinal. The Spring Hill Anticline occurs within the project area and plunges to the south. The Pine Creek Shear, a regional north west trending structure, trends through the eastern portion of the Licence. The Licence surrounds the historical Spring Hill Gold Mining Centre and is highly prospective for gold in addition to tin and base metals. During the reporting period, extensive due diligence activities were conducted across the Licence whereby all available open file data was reviewed and an audit was conducted in terms of reviewing any data which may not have been captured in the digital database. The work to digitise geological mapping, geological interpretation and geochemical sampling surveys is underway. The process of digitising is expected to be finalised in the upcoming reporting period. In addition a review of the available geophysical coverages and a preliminary interpretation of the underlying geology was undertaken. Upon finalisation of both processes a final copy of the data will be submitted.