Ann: Annual Financial Report, page-2

Good summary of the 3 main exploration areas AQD are pursuing

1. Peru: I still think this will be the main share price driver on the short term as attracting a farm in partner to fund the drilling of High Impact Copper Porphyry targets will be a great result for the company.

"In Peru, exploration continued over the Company’s porphyry copper and IOCG copper-gold projects, albeit at a reduced pace following the termination of the joint venture with Cliffs Natural Resources Inc. Applications for drill permits over three of the identified prospects were submitted to the appropriate authorities with approvals received for drilling at the Cardonal, Puite and Lana prospects. Geological mapping and sampling continued in several areas with further porphyry targets identified for systematic ground geophysical surveys and subsequent target drilling. The Company recently initiated discussions with several parties who have expressed interest in the projects, with the aim of negotiating a joint venture agreement to fund drilling operations at one or more of the prospects. AusQuest is aiming to conclude a suitable agreement that will allow initial drill testing of at least one of the prospects to commence before the end of 2014. The Company’s copper-gold exploration venture in Peru represents an exciting growth opportunity in one of the world’s most prospective countries for the discovery of major new porphyry copper and iron-oxide copper-gold (IOCG) deposits."



2. Fraser Range/Sirius area: Another SIR wannabe will provide plenty of high impact interest on drilling

"Exploration efforts in Australia were focused in the Fraser Range area of Western Australia, which has become one of the country’s premier exploration hot spots following the discovery by Sirius Resources of the world-class Nova- Bollinger nickel-copper deposit. New prospects were identified and new title applications submitted during the year south of Nova-Bollinger, following initial drilling at the Company’s Dundas Nickel Project which identified prospective stratigraphy but no significant base metals. Exploration activity on these projects will accelerate in the months ahead once the new titles are granted."


3. West African Gold: Carried exploration by an experienced mid tier player that know what they are doing in the area. Assays due

"Exploration activity for gold in Burkina Faso, West Africa received a major boost during the year as a result of a joint venture agreement completed in April 2014 with Ressources Burkinor SARL, a wholly-owned subsidiary of TSX-listed SEMAFO Inc. This agreement will see Burkinor spend up to US$7.5 million on the Banfora Gold Project over the next three years to earn an 80% equity in the project. Field work recommenced in Burkina Faso in April 2014 and the new joint venture is looking forward to the upcoming results from these programs."