Ann: LORRAINE MINE GOLD DRILLCORE SAMPLING AND ASSAYING UPDATE, page-6

CM-19-07 – DHEM Target Depth 270m: Prior to the commencement of drilling a review of the
2004/2005 diamond drill programme (holes L01-L06) at the Lorraine mine site indicated that that there
was consistent north-east uplift of the holes (Figure 2 - purple traces).The target DHEM plate is an
off-hole conductor sitting above hole L01. The historic deviation was factored into the collar
azimuth/inclination for CM-19-07. However, the hole remained ‘true’ and missed the target plate as
shown in Figure 2 and in the 3D model of the drill hole in Figure 3.
The upper section of the hole comprised intercalated mafic volcanics and microdiorite to 85m then
**bro with minor feldspar porphyry and mafic volcanics to 310m. The hole finished at 354m in mafic
volcanics. At ~272m downhole a mineralised shear zone approximating the edge of the historic DHEM
plate returned 30cm @ 0.47% Ni + 0.22% Cu* (Figure 3).
Although no gold mineralisation was encountered in this hole, the footwall was intersected well above
and north of the known 6-Level ‘gold mineralised’ drifts at ~300m vertical depth. Follow-up drilling
beyond 300m depth will be required to accurately target the known gold mineralisation at the 6-Level
and the Company has not downgraded the gold potential at Lorraine.
The follow-up DHEM and drilling will further target the historic DHEM anomaly given that the drill hole
appears to have missed the target plate but still encountered an encouraging narrow nickel
mineralised intercept in CM-19-07