Year 3 Annual Report Exploration Licence EL 30280 McKinlay South Project for the reporting period 15th October 2016 to 14th October 2017

Abstract

Exploration during the year included reconnaissance of historical workings and ongoing geological review of historical data and 2016 reconnaissance results. Historical data during the year review highlighted numerous +0.1g/t Au target sites around the main Mt Ringwood prospect area, alluvial gold trap sites down flow of insitu Mt Ringwood deposits and anomalous gold and arsenic anomalies from historic RAB holes testing beneath alluvial cover in the northern half of the tenement. The company currently has the following main targets: South Alligator Group gold mineralisation associated with anticlinal structure (NE corner of the tenement), high grade gold shoots in the main Mt Ringwood area, new gold deposits hidden under alluvial cover in the central-north area of the tenement and alluvial gold deposits around the main Mt Ringwood area. The following exploration is recommended for next year: data compilation, continued surface reconnaissance in the NE corner of the tenement as well as in the main Mt Ringwood prospect area, and drilling of 3 targets: RAB drilling of alluvial areas down flow of Mt Ringwood in-situ deposits (12 holes for 120m), RC drilling to test for high grade shoots at Mt Ringwood (1 hole, 72m), RC drilling of the new northeastern prospect (2 holes for 80m). Also an initial soil programme will be completed at the northeastern prospect to assist with final drill hole positioning.