Ann: Salobo West Drilling Licence Update, page-16

So CTM have escalated the approval process to a higher authority to review. Company have stated their has been no change in Brazilian Government environmental regulations since the Salobo tenements were last drilled in 2010, so are questioning why the refusal of permit!

Positives to take away is CTM management has confirmed Assay results form Itapitanga Nickel-Cobalt play due any day.

CTM will now proceed with drilling campaign at Pebas Cu-Au tenement which has drilling permit issued. Located close to AVB high grade Copper deposit.

Salobo will get sorted in the near term and drilling to commence once all permits issued later this year!

Pebas looks to have very good potential:

2km long, +500ppm copper‐in‐soils anomaly generated with +750m long +1000ppm high‐grade zone
Historical drilling in 2010 returned intersections of up to 3.7% Cu within broad zones of mineralisation such as: *
– 146.9m at 0.21% Cu and 0.08 g/t Au from surface in PRN‐DD‐37; and
– 105.0m at 0.23% Cu from surface in drill‐hole PRN‐DD‐36
Project is located in open pasture, less than 10km from the regional centre of Parauapebas – allows for easy year‐round access.

Gossan outcrop returned rock chip grades of27.6% Cu, 4.6g/t Au, and 73.1g/t Ag.

Fault‐related IOCG target that remains untested, INV drill spacing in 2010 was on 300m sections and didn’t test fault
Comparable soils anomaly (+1000ppm Cu) and hosted in a similar geological setting to the Antas Norte Cu‐Au Mine (Avanco)
Just 25km away, Antas Norte’s high‐grade ore is roughly 60m thick, has a strike of 700m and is one of the highest grade copper mines in the world with a mine head grade of ~2.6% Cu
Ground EM combined with soil geochem has been successful for Avanco in identifying high‐grade Cu sulphide targets in the Carajás, including Antas Norte.

Two new targets to the east and north‐east of the main Pebas Project area
The Pebas East zone consists of a 1.2km long, +300ppm copper anomaly coincident with a magnetic signature
The second of the new targets (Pebas North‐east) is located 2.5km to the north‐east of Pebas and is a 500m long and up to 500m wide, +500ppm copper anomaly