Annual Tenement Report Mining Lease 23812 Spring Hill Project for the period 16 January 2017 to 15 January 2018

Abstract

This annual tenement report provides a synthesis of the activities undertaken across ML 23812 ('the Lease') for the period of 16th January 2017 through to the 15th of January 2018. The Lease was granted on the 16th of January 2004 and was managed by TM Gold Pty Ltd, formerly a wholly owned subsidiary of Thor Mining PLC since mid 2011 under a farm in agreement with Western Desert Resources Limited. On the 16th of December 2016, Thor Mining PLC entered into an option agreement to sell 100% of Spring Hill Project via the sale of TM Gold Pty Ltd. During the reporting period PC Gold acquired 100% of the Spring Hill Gold Project. The Lease includes the historical Spring Hill Gold Mining Centre and is highly prospective for gold in addition to tin and base metals. Gold was initially discovered within the region in the 1870's and mining was undertaken between 1880 to 1905 and intermittently until 1966. Total reported production was approximately 22,000 ounces of gold, the majority of which was derived prior to 1900. Mining predominantly took place on the Main and Middle lodes with the oxidised ore being worked to depths exceeding 100m. Historical exploration undertaken across the Lease has focussed towards gold exploration. Activities have included airborne geophysical surveys, geological mapping, geochemical sampling, construction of exploration adits, drilling, feasibility studies and metallurgical testwork. Recent exploration activities undertaken across the lease has included mineral resource estimation, resource definition drilling and exploration targeting. Thor Mining PLC commissioned a high resolution helimag and radiometric survey across the lease in 2012 which aimed to identify the structures associated with gold mineralisation and potentially identify additional targets. Mineral resource estimation was conducted by Thor Mining PLC which defined an Indicated Mineral Resource of 6.9Mt at 1.74g/t Au for 389,000oz. During the the 2016 exploration season, exploration activities focused on: Infill RC drilling; High resolution airborne imagery survey; Metallurgical testing; Mineral Resource estimation; Mine Permitting. A mineral resource of 9.8Mt at 1.37g/t Au for 429,000oz Au at a 0.5g/t Au cut off grade was reported. During the reporting period, the following activities were undertaken: Re-optimisation of the block model was undertaken; Ongoing metallurgical work including composite sample bottle roll testing; Mine permitting continued; and A clean up of the old waste stockpiles and mullock dumps was undertaken which resulted in the production of 953 ounces of gold from 13,249t of material processed at the Union Reef plant. Reconciled head grade was 2.33gpt Au at 96.1% recovery.