Group Annual Report EL 9250, EL 26619, EL 26634, EL 27125, EL 27126, EL 27979, EL 31330 and EL 31331 Suplejack Project GR166 from 30 November 2016 to 29 November 2017 and for EL 26634, 23 August 2016 to 29 November 2017

Abstract

All on ground exploration activities took place on EL 9250 and comprised the collection of 3 rock chip and 628 drill spoil samples as well as the completion of 185 AC holes for 8,538m and 33 RC holes for 5,560m (total 14,098m). In total 8682 samples were assayed and 8,425 XRF readings were recorded. A total of 12,859 magnetic susceptibility readings were recorded. A lithogeochemical study, co-founded with the CSIRO, was based on the drill spoil sampling and EOH sampling from the AC drilling. It confirmed that the Suplejack to be Mt Charles Formation. The aim of the 2017 drilling was threefold. It screened for new target locations (AC),-defined shoot controls and envisioned to grow the Hyperion resource. The reconnaissance AC drilling revealed: At Seuss North the drill hole traverses extended the interpreted strike length to a total of 820 metres. At Suplejack EW the targeted structure was not mineralised in the areas tested. At Pandora and Brokenwood results correlated to east-west magnetic breaks in the stratigraphy but had a small footprint of mineralisation. At Dry River area the target showed an absence of gold and arsenic anomalies. At Hyperion West no significant gold assay values were returned. The RC drilling at Seuss indicated 2 mineralised shoots with higher grade than previously intersected in the area (up to 5 metres at 60.9g/t gold in SSRC100008). One plunging shallowly south and a second representing the intersection of the Tethys and Seuss structures. At Hyperion South the RC drilling has increased the strike length of mineralisation to over 600m to the east beyond the contact of the Killi Killi to Mt Charles Formation. In February 2017 ABM requested Optiro Pty Ltd (Optiro) to prepare a Mineral Resource update for the Suplejack Project comprising the Hyperion-Tethys, Seuss and Hyperion South deposits. In February 2017 the Hyperion -Tethys, Seuss and Hyperion South Prospect combined inferred resource estimate, utilising 0.8 g/t Au cut-off above the 230 m RL (180 m below surface), produced a model which infers 239,600 ounces of gold at an average grade of 2.08 g/t gold for a total tonnage of 3,587,000t. The 2017 estimate was compared with the 2012 estimate. The comparison showed an increase to 309,900 ounces, representing a 53% increase in ounces of gold contained in the Suplejack Mineral Resource. It was recommended to continue with the ongoing update and reinterpretation before the 2018 drilling and surface sampling programs. It was also advised to complete a resource update and extend the litho chemical study to EL 31331. 3D modelling of structure and stratigraphy and geochemistry is recommended to optimise the next drilling program.