Ann: Exploration Update, page-10

Guys,

Apologies for the ignorance, have been away for too long, I just wanted to know whether we were provided with an update on the exploration results for target 18. The last I read was that it had again encountered external failures which halted the drilling process, however if my memory serves me correctly MRD did mention that the results for the target holes would be out at the end of November 2016. I may have completely missed an update.

Credit to the team for persevering, they are using all techniques to possibly define a deposit. Todays announcement is a validation of that. Just remember guys that a larger siemens conductor reading does not necessarily mean that we have massive sulphides, Sirius resources bedrock conductor was 10,000 siemens from memory and the last conductor identified although small in size 15 * 15 was 5000 siemens by MRD which correlates to the geological structure of the Fraser range rocks.

- The presence of graphite has been eliminated due to disseminated nickel and copper sulphides, presence of iron which BOA had intersected as part of their conductor has not been entirely ruled out due to identification of pyrite (announcement 14 November 2016). The presence of water could be another possibility however the continuous intersections of blebby, disseminated nickel and copper will rule out thus possibility as well.

If all of the above are eliminated then the conductors identified will hopefully have a deposit or two bearing in mind that it is massive sulphides which are economically viable to mine, Sirius had identified Nova at 150 m however ours will be a deeper find if any. The proximity to well maintained roads and ports will definitely be of advantage. Also Cobalt is on the rise and since 95% of cobalt is mined as a byproduct of nickel and copper and due to the ethical issues surrounding DRC, finding a nickel and copper deposit which could replicate Nova be the best thing yet.

Nickel prices are also hovering around the 10,500$ tonne mark. When Nova was discovered nickel prices were 12000 $ per tonne. Which means that a discovery will reignite the lost faith in the Fraser ranges.