Ann: March 2017 Quarterly Activies and Cash Flow Reports, page-2

Extract from Google Translate

Language - Hawthorn Resources
- During the quarter Hawthorn further refined the proposed mining schedule of the Anglo Saxon deposit to reflect recently obtained geotechnical data. Additionally an increase in proposed ore block sizes and incorporation of a greater proportion of Primary mineralisation has necessitated an updated Resource estimation to be commissioned.

- When this updated Resource estimate is complete Hawthorn will complete and release a maiden Reserve statement for the Anglo Saxon Deposit. These updated Resource and Reserve announcements are expected during May and June 2017.

- Negotiations continue with stakeholders and contractors to confirm mobilisation dates to site.

Translation - Reality
- During the quarter Hawthorn staff members did nothing to progress the now 2 year overdue plan to mine at Trouser Legs post mining approval being granted. We actually had no intention to mine but what else can we do to keep ourselves employed and keep a carrot in front of shareholders.

- When we have spent more time doing nothing we'll then do some more drilling spending some more of what little money remains whilst keeping ourselves employed at excessively high salaries on an input vs output basis.

- We'll run our fingers down the yellow pages at some point and see when Jim's drilling is available to get on site and scratch themselves for a week or two. We do guarantee though that come next quarterly and the one after that we'll be no closer to mining or delivering shareholders any return on their investment, hey, we may even hit them up for some more money as our current pot is about to run dry