Ann: Quarterly Activities Report, page-22

The Ore Reserve increase is based on the current inventory of 805.7 Mt of High Grade Hematite Resources at a grade of 57.3% Fe. The Ore Reserve includes 607 Mt of Indicated Mineral Resources being mined as Run of Mine ("ROM") Ore and fed to processing plants to produce 517 Mt of Saleable Product.This represents a conversion of 78 per cent of the Company’s total Indicated Mineral Resources. It is a 18 per cent increase to the previously reported Reserves figure (announced in December 2012) and will enable the Direct Shipping Ore (DSO) Stage One mine life of ten years to be extended to around 13 years..Table 1 is the Global Summary of all High Grade Ore Reserves for the Mbalam-Nabeba Project. The updated Global Ore Reserves consist of the High Grade Ore Reserves from the Mbarga, Mbarga South, Nabeba, Nabeba South and Nabeba Northwest Deposits. Table 1 Global High Grade Hematite Ore Reserve ReserveClassificationTonnes(Mt)Fe(%)SiO2(%)Al2O3(%)P(%)LOI(%)Ore Reserves Reported to ASX on 6 April 2011Probable251.563.63.642.540.082.42Ore Reserves Reported to ASX on 15 November 2011Probable352.362.452.60.092.6Ore Reserves Reported to ASX on 24 December 2012Probable436.362.64.432.550.092.78Ore Reserves Reported to ASX on 20 May 2015Probable51762.24.462.800.093.3The 2015 Ore Reserves were estimated in accordance with the JORC Code by Australian Mining Consultants Pty Ltd (AMC) and Sundance Resources. Please refer to the Competent Persons and JORC Codes (2012 Edition) statement for more information. Table 2 High Grade Hematite Ore Reserves by DepositDepositReserveCategoryTonnes of Product(Mt)Fe in Product(%))SiO2 in Product(%)Al2O3 in Product(%)P in Product(%)LOI in Product(%)MbargaProbable13463.14.982.700.082.09Mbarga SouthProbable19.661.46.393.590.063.63NabebaProbable 32862.2 4.092.800.103.35Nabeba NorthwestProbable 27.958.8 5.232.76 0.097.68Nabeba SouthProbable7.6 61.1 3.582.590.126.45Total High Grade Hematite Ore ReservesProbable51762.24.462.800.093.31Note: Ore Reserves are based on the estimated saleable product. Table 3 High Grade Hematite Ore Reserves by Process PlantDepositReserveCategoryTonnes of Product(Mt)Fe in Product(%))SiO2 in Product(%)Al2O3 in Product(%)P in Product(%)LOI in Product(%)Mbarga DSO PlantProbable77.462.14.023.920.092.79Mbarga Gravity Beneficiation PlantProbable76.463.86.321.690.061.77Nabeba DSO PlantProbable24362.73.433.030.103.23Nabeba Gravity Beneficiation PlantProbable12060.25.652.300.104.78Total High Grade Hematite Ore ReservesProbable51762.24.462.800.093.31Note: Ore Reserves are based on the estimated saleable product. High Grade Hematite ResourcesHigh Grade Hematite Resources currently total 805.7 Million tonnes at 57.3% Fe. The Indicated category of High Grade Mineral Resources represents 96% of the total, which further reinforces the assurance in drilling information and subsequent mineralogical and metallurgical studies. All Mineral Resources were estimated in accordance with the JORC Code (2012 Edition). Table 4 High Grade Hematite Mineral ResourcesDepositCategoryTonnes(Mt)Fe(%)SiO2(%)Al2O3(%)P(%)LOI(%)Mbalam(All Deposits)Indicated230.956.513.03.40.082.2Inferred28.856.616.42.90.081.3Nabeba(All Deposits)Indicated545.957.67.24.80.114.6Total High Grade Hematite Resources805.757.39.24.30.103.3Further breakdown of High Grade Resources by Deposit is detailed below, demonstrating the high confidence in the interpretation and geological continuity with 96% within the Indicated category: Table 5 High Grade Resources by DepositDepositMineralisationCategoryTonnes(Mt)Fe(%)SiO2(%)Al2O3(%)P(%)LOI(%)MbargaHighGradeHematiteIndicated206.156.812.83.20.082.1Inferred13.653.420.61.50.090.6Mbarga SouthIndicated24.854.114.34.30.063.5MetzmevinInferred15.259.512.64.10.082.0Nabeba MainIndicated485.758.17.04.80.114.2Nabeba NorthwestIndicated50.352.89.25.60.097.9Nabeba SouthIndicated9.957.36.63.80.126.6 Sub TotalIndicated776.857.38.94.40.103.9 Inferred28.856.616.42.90.081.3Total High Grade Hematite Resources805.757.39.24.30.103.8All six deposits are located close to the two proposed mining and processing centres at Nabeba in Congo and Mbarga in Cameroon, which are approximately 50km apart and will be joined by the proposed railway.Itabirite HematiteThe total Project Itabirite Hematite Resource now stands at 5.638 billion tonnes at 33.4% Fe. This massive resource underpins Stage Two of the Project, which will commence approximately 10 years after the first DSO materials are mined and exported. Stage Two is expected to operate for a further minimum 15-20 years as defined in the Feasibility Study that was completed in March 2011. Table 6 Global Itabirite Hematite ResourcesDepositMineralisationCategoryTonnes(Mt)Fe(%)SiO2(%)Al2O3(%)P(%)LOI(%)MbargaItabiriteHematiteIndicated1,84634.647.71.50.040.6Inferred2,07831.848.62.90.051.3NabebaInferred1,71434.142.32.70.052.6 Sub TotalIndicated1,84634.647.71.50.040.6 Inferred3,79232.845.82.80.051.9Total Itabirite Hematite Resources5,63833.446.42.40.051.9Sundance drilled its first exploration hole for the Mbalam Project in June 2007. The current Resource estimate now incorporates assay results from over 1,100 drill holes totalling more than 162,000 metres of drilling.The resource definition and development drilling undertaken by the company has primarily focused on the two principal deposits at Mbarga (in the Republic of Cameroon) and Nabeba (in the Republic of Congo). However the potential to increase total resources even further remains significant with numerous exploration targets identified for future drilling.