Annual report Year 21 MLN 1154 Merlin Diamond Project Annual report for the period 1 January 2018 to 31 December 2018

Abstract

During the reporting period, Merlin reviewed the results of 2017 drilling program. This drill program targeted untested geophysical, soil geochemical, and indicator mineral anomalies across the Merlin mining lease. A total of 155 holes were drilled for 2,871 metres.No kimberlite pipes were intersected during the program, although the presence of a narrow kimberlite fissure between Kay and Bedevere was confirmed. In mid September 2017, rehabilitation work was undertaken at each drill target. Merlin intended to revisit the drill sites to confirm progress of rehabilitated work. Visit to the drilling area is now planned for 2019. Merlin Diamonds has identified an anomalous circular topographic feature south of Excalibur pipe on a satellite image of a Merlin Lease area (Figure 1). The Company consider that it may represent an outcrop of a kimberlite pipe. Merlin is planning to field inspect this feature and carry out sampling in 2019. Positive results will encourage the Company to conduct further investigation including drilling.