Ann: Lake Torrens IOCG Project - Drilling Commenced, page-63

Hi,

With regard to FMG's current drilling programme at Vulcan North (earlier called the northern target area by TAS) , it is well worthwhile going back to some of TAS's previous drilling related announcements, in particular hole VUD015, which was drilled just outside and to the west of Vulcan North (this area was actually defined somewhat later by TAS).

Vulcan North (the green ellipse) can be seen in Figure 3 in the following TAS announcement from June 14th, 2019:

https://www.tasmanresources.com.au/announcements/07da6e9cb2e2af63659f9dc03a88df2e.pdf

By my reckoning, Vulcan North measures 2.5 kms from north to south and 750 meters from east to west. It is therefore a very large area.

The following assay results from VUD015 were received by TAS in 2013:

- 145 meters of Copper at 0.49%

- 52 meters of Copper at 0.87%

- 21 meters of Copper at 1.69% Cu


Here is a link to the VUD015 assay results etc. which were contained in TAS's ASX announcement from August 15th, 2013:

https://www.tasmanresources.com.au/announcements/5831693dd7f4e71bf993bb8ace48c68c.pdf

As you can see from the above announcement, VUD015 was drilled in order to find mineralisation in the northern part of Vulcan. VUD015 was slanted at 80 degrees towards the south west (see Figure 1). The hole reached a depth of 1,378 meters and finished just inside the northern target area (now called Vulcan North). There are some very impressive photos of the drill cores in Figures 2 to 4.

I anticipate that FMG are currently drilling their first two holes at Vulcan North slightly to the west of where the end of the VUD015 hole finished.

Given that VUD015 intersected mineralisation at around 900 meters in depth, and that this mineralisation continued for more than 400m down the hole, I would suggest that FMG will probably be reaching this target depth during the coming week (as long as there are no technical difficulties). Therefore, I believe that if significant mineralisation has been found, this will be announced within the next 1-2 weeks. Having said this, the final assay results will probably be announced sometime in January.

Depending on whether FMG finds significant mineralisation in this initial 2 hole drilling programme, IMVHO, they may well decide to immediately drill further within Vulcan North using the existing rigs that are already on site.

It will certainly be a very interesting next few weeks, and quite possibly a very merry Christmas.

Cheers.