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MARCH 2016 QUARTERLY REPORT The Directors of Pacific Ore Limited (“Pacific” or “Company”) are pleased to present its quarterly report for the period ended 31 March 2016. Highlights during, and subsequent to, the quarter were as follows:  Progressed the Company’s proposed acquisition of Syntonic Wireless, Inc. (“Syntonic”), a leader in mobile connected services, by completing due diligence on Syntonic, exercising Pacific’s option to acquire Syntonic, and dispatching a Notice of General Meeting to seek approval of the acquisition of Syntonic at a shareholder meeting on 23 May 2016;  Syntonic is a Seattle-based software company which has developed two technology services: Freeway by Syntonic®, allows free-of-charge, mobile internet access on smartphones by having advertisers sponsor the data; and Syntonic DataFlex®, allows businesses to manage split billing expenses for employees when using their personal mobile phones for work;  Syntonic announced that it had entered into an agreement with Tata Communications Inc. (“Tata Communications”) to license Syntonic’s platform services for deployment across their worldwide network of mobile operator partners. Tata Communications is the world’s largest wholesale voice carrier connecting more than 70% of the world’s mobile carriers and handles more than 24% of the world’s internet traffic;  Syntonic announced that its Freeway by Syntonic application will be made available in Southeast Asia shortly. Southeast Asia represents the world’s highest concentration of smartphones as well as prepaid data plans, making it the most attractive market for sponsored data services. The market expansion will enable leading mobile operators the opportunity to offer subscribers in the region with free mobile access to an inaugural list of popular messaging and social media applications including Clash of Clans, WhatsApp, BBM, WeChat, and Twitter;  Syntonic unveiled Freeway by Syntonic 2.0, a major update of its Freeway by Syntonic 1.0 solution that was first introduced on the AT&T network as the world’s first sponsored content store. In addition to sponsored data, Freeway by Syntonic 2.0 offers “data rewards” where sponsors can provide data credits to the consumer as a reward for taking some action such as installing an application, subscribing to a music service, or purchasing a product;  Syntonic appointed Mr. John Landau, former Senior Vice President of Technology and Services Evolution at Tata Communications, to its Advisory Board. Mr. Landau will work with existing advisory board members Mr. Bill Richter, former President at EMC, Mr. Rudy Gadre, former VP and General Counsel at Facebook, and Mr. Steve Elfman, former President at Sprint;  Syntonic’s CEO and Co-Founder, Mr Gary Greenbaum, attended and presented at the Consumer Electronics Show (Las Vegas) in January, Mobile World Congress (Barcelona) in February, and TechKnow Invest Roadshow (Melbourne, Sydney and Brisbane) in April, which resulted in accelerated business opportunities for Syntonic. A recording of the presentation given by Syntonic’s CEO, Mr Gary Greenbaum, at the TechKnow Invest Roadshow is available at:  Substantial news flow is expected over the next several months as Syntonic expands its worldwide operations and captures its growing sales pipeline in key markets; 2  Successfully renegotiated the consideration payable by Pacific to acquire 100% of Syntonic which will now comprise 1,200 million Pacific ordinary shares and 500 million performance shares subject to achievement of key business milestones;  Cancelled the Company’s planned capital raising of A$7 million, due to sooner than expected revenues from Syntonic’s business (including Syntonic’s distribution and license agreement with Tata Communications and Freeway by Syntonic’s service launch in Southeast Asia) and accelerated sales pipeline opportunities with global tier-1 mobile carriers and major content providers seeking to expand their audience reach with sponsored data;  With the sooner than expected revenues and Pacific’s existing cash reserves, Syntonic will have sufficient funding for its business expansion plans. The Company will now only undertake a A$1 million capital raising through the issue of 50 million shares at not less than A$0.02 per share, with provision to raise an additional A$1 million in oversubscriptions on the same terms at the Directors’ discretion;  The Company will lodge a prospectus for the capital raising with ASIC before Pacific’s shareholder meeting on 23 May 2016 to approve the acquisition of Syntonic; and  As at 31 March 2016, the Company had cash reserves of approximately A$2.0 million placing the Company in a strong position to conduct its current activities