Annual Technical Group Report Burnside Group - Brocks Creek UG and Rising Tide, Davies Prospect, Fountain Head, Cosmo Howley, Grove Hill, Howley Ridge and Yam Creek Year Ending 15 February 2017 Group Report GR187/11

Abstract

The Burnside group of tenements consist of 29 mineral leases that are located approximately 150km south-southeast of Darwin. The group is made up of tenements from the Brocks Creek/ Rising Tide, Davies Prospect, Fountain Head, Cosmo/Howley, Howley Ridge and Yam Creek project areas. During the reporting period, steps were taken by the Company to increase activates within the Cosmo underground mine. Within 2016, it was found that the Lantern Project, which is situated in close proximity to the current drives associated with the Cosmo mine, was a separate project capable of being another pit resource or open pit resource. Exploration drill programs conducted within the Cosmo mine were focused around the target area confirmed in 2015/2016, which located further opportunities with the footwall associated with the F1 fault. These lodes (Redbelly, Taipan and Keelback) were advanced to mining, with further growth exploration drilling. Also during the reporting period, a number of the tenements within the Burnside Mining group were converted into compliant Mineral Leases. The Woolwonga leases (MCN 3705, MCN 3706 and MCN 3707) were relinquished during the latter part of 2016 and the leases associated with Good Shepherd were sold to PNX Metals.