Ann: Quarterly Activities Report and Appendix 5B, page-3

Columbus Marsh Project During the quarter under review, the Company announced that drilling equipment was moved to the Columbus Marsh Lithium Brine Project to commence the Phase One Drilling campaign (CSM-1) to test stratigraphy and nature of the groundwater. The Company commenced drilling following delays due to heavy unseasonal rainfall in the area. On the 19 September 2017, the Company announced the discovery of highly anomalous concentrations of lithium brines within a shallow aquifer. Lithium bearing brines were intersected at a depth of 79.25 meters (260 feet) and continued to a depth of 79.25 meters (340 feet) resulting in a width of the aquifer of 24.38 meters (80 feet). Assay of the brine returned a high of 95.9 mg/l lithium (95.9ppm Li or 510.5ppm LiCO3 equivalent*) with a minimum assay of the same brine returning 56.3 mg/l lithium (56.3ppm Li or 299.7ppm LiCO3 equivalent*).
The brine also assayed up to 3,670 mg/l potassium and 1,100 mg/l boron. Following the significant discovery, the Company immediately applied for water rights to the area and is planning a program of following up drilling. After several delays due to poor ground conditions, the initial exploration hole (CSM-1) has been completed and had reached target depth. Drill casing and screens have been installed and sampling of brines for the interval 253 to 402 meters (830 to 1320 feet) is underway. Once brines samples from this lower zone has been received the Company will make decisions regarding the collection of a bulk sample and/or pump testing. The Company has encountered further lithium brines in the lower zone for intervals 115.8 to 253 meters (380 to 830 feet). Lithium concentrations for the interval varied from 25.8 mg/l lithium (25.8ppm Li or 137.3ppm LiCO3 equivalent*) at 380 feet, gradually increasing to approximately 41.3 mg/l lithium (41.3ppm Li or 219.8 ppm LiCO3 equivalent*) at 830 feet.
Further details and results for the interval 380 to 830 feet and from 830 to 1320 feet will be reported as soon as they are received.