4th Annual Group Technical Report Roper River Iron Ore Project GR260/12 covering EL 24101, EL 24102, EL26412, EL 28497, EL 30618 for the period 27 February 2015 to 27 February 2016

Abstract

This is the Fourth Group Technical Report for Sherwin Iron's Roper River Iron Ore Project covered under Group Reporting GR260-12 of ELs 24101, 24102, 26412, 30618 and 28497 to 27th February 2016 (Group Reporting date). This Annual Project Report covers exploration activity conducted since 28th February 2015. Sherwin Iron Limited was placed in to Voluntary Administration and Receivership on 10 July 2014. The Company was subsequently placed in to Liquidation on 5 November 2015. The Roper River Iron Ore Project has been on care and maintenance throughout 2015 while the Receivers have managed a sale process. At Receivers' request in April 2015 the DME approved a two year reduction in the required minimum covenant Project Expenditure. Sherwin Iron had a strong history of exceeding its covenant expenditure over several years, which supported that request. Receivers have also asked for sale purposes to maintain the Project Status and tenement area in its entirety. This has been critical in order to facilitate a successful sale in the current iron ore market. Since the appointment of Receivers, the Company has been operating on a limited budget with minimal personnel. Exploration in 2015 was limited to two programmes of reconnaissance rock chip exploration within geologically favourable prospects in accessible areas of the project. This was deemed the most cost effective, safe and practical form of exploration under the circumstances. The programme was designed to add value by sampling areas where previous exploration had been limited or inconclusive, but excluded areas of known resources or where previous drilling had discounted resource potential. Proposed exploration sites were accessible from camp to minimise cost and safety risk for exploration personnel. The exploration personnel were still responsible for caretaking the Sherwin Iron camp and therefore returned each night to secure the site. The two areas considered for possible DSO potential were Mt Scott West, on the Mt McMinn Pastoral Station, and Deposit P, on the Numul Numul Pastoral Station. Both areas explored in 2015 are located within EL 24101 There was virtually no field exploration activity conducted on other Sherwin tenements in 2015. At Mt Scott West Prospect previous, very limited helicopter based rock chip sampling had shown possible high grade potential. The area has difficult terrain with very rough and near intolerable track access at mid distance from the Sherwin Iron camp. Mt Scott East, adjacent to Mt Scott West, had confirmed DSO potential from previous diamond core drilling. Therefore Mt Scott West required confirmation of DSO potential from additional rock chip sampling to add to the future resource potential. At Deposit P limited drilling in 2011had produced inconclusive results. BHP identified Sherwin Formation here named this prospect but seemingly with limited evidence of significant iron ore potential. The primary aim of this programme was to confirm the grade potential in each area for either future resource drilling or little or no follow up exploration. The two areas covered the main Sherwin Formation ironstone units: Mt Scott West Mesa included the Lower and Middle Ironstone Units whilst Deposit P is reportedly associated with the Basal Ironstone Unit. Aside from the interpreted geological setting neither area had been adequately explored. The conclusion from sampling and XRF assaying of 25 rock chip samples is that Deposit P has little iron oxide resource potential, beyond a small low grade resource, whilst Mt Scott West Mesa has significant potential for a large near surface high grade iron oxide resource. There was no on-ground exploration conducted on other Project ELs during the reporting period. Activity included ongoing rehabilitation (without machinery assistance) of previous exploration drilled areas.