Third Annual Technical Report ML 29584 9 July 2016 to 8 July 2017

Abstract

This is the Third Annual Technical Report for ML 29584, which is now owned by Northern Territory Iron Ore Pty Ltd ('NTIO'), formally Al Rawda Resources (Australia) Pty Ltd, who purchased the Roper River Iron Ore Project from Sherwin Iron Limited (Receivers and Managers Appointed) ('Sherwin Iron') in September 2016. The ML covers the largest iron oxide resource in the Project - Deposit C. All technical activity conducted on the ML during the first reporting period from 9 July 2014 to 8 July 2015 is contained within the First Annual Technical Report. During the second reporting period from 9 July 2015 to 8 July 2016, the Project was reviewed by NTIO who undertook limited technical activity as part of its due diligence on Sherwin Iron's assets and future valuation. In that reporting period there had been no mineral production on the ML. The Project was acquired in September 2016 by NTIO. The 2016 to 2017 third reporting period activity included further metallurgical testwork to assess the optimisation potential from composite samples of existing diamond core (stored at Nagrom Laboratories) at various Fe grades. The result of this testwork on grade composites was inconclusive in finding an optimum blend/feed grade and overall flow sheet process. It was considered important to separate Middle and Lower Ironstone horizons in testwork as, possibly, different mineralogical and textural characteristics and not just Fe grade has affected results. An RC drill programme was planned in this reporting period because the Deposit C resource was not definitively closed off at depth, or along strike to the west and south. This proposed RC drilling, both within the ML and extending into the adjacent EL, was therefore submitted for MMP approval and required expiry of notification period to Mt McMinn owners. Drill sites were pegged and a photographic record pre site disturbance was conducted for the Environmental Register record. The drilling will be conducted in the upcoming 2017- 2018 reporting period.