Ann: Exercise of Option over Western Shaw Pilbara Lithium Project, page-4

Following this site visit, QXR confirms the following:

• Geologically the tenement is in a region dominated by ‘nested’ granite plutons, many of which are known to host lithium bearing pegmatite dykes.

• A pegmatitic granite occupies a portion of the tenement area, and may be potentially prospective for lithium bearing pegmatite dykes.

• A steeply dipping Banded Iron Formation ridge some 11km in strike was drilled by Atlas Iron showing evidence of high grade iron ore mineralisation.

• There are two nickel occurrences reported some 4km apart and associated with mafic rocks. This could be evidence of mafic intrusion hosted nickel sulphide mineralisation.

• A gold prospect on the western margin of the tenement is associated with a structure that extends into the tenement. The apparent spatial association with two larger gold prospects outside of the tenement is potential evidence of a larger mineralisation system.