Ann: Response to ASX Query, page-2

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Dear Ms Wutete
ASX Limited query letter relating to BBX Minerals Ltd announcement dated 14 August 2017.

As requested enclosed is BBX’s response to the following questions in your query letter dated 21 August 2017, and also related email to BBX on 18 August 2017.

Your letter dated 21 August 2017 repeats a number of the questions required to be responded to in your email dated 18th August 2017, therefore BBX has submitted one response to all matters.

BBX also encloses an updated JORC Compliance table as requested in your email dated 18 August 2017.

In your email dated 18 August 2017 the ASX stated “It appears that the company has conducted metallurgical test-work without the release of assay results. It would be helpful if the company could provide a reason in the announcement as to why it preferred this course of action”.

BBX Response: Despite extensive development work conducted in laboratories in Brazil, Australia and Canada BBX has been unable to produce consistent, reproducible analytical results from mineralised rock located on its Apui projects. The Company is therefore focusing on extracting the precious metals from bulk samples of this complex mineralisation in order to provide a reliable estimate of the recoverable precious metal content.

BBX continues to work on developing an analytical method that can reliably reproduce the levels of precious metals currently being extracted from bulk samples.

Responses to your letter of 21 August 2017.
1. The location co-ordinates of all grab sample material that was collected for the 150kg bulk sample
UTM co-ordinates (WGS84 UTM21S) of the centre and four vertices of the sampled areas are as follows:
Três Estados: Centre: 224957E 9198539N
Vertices: 224941E 9198661N
225035E 9198622N
224950E 9198415N
224855E 9198454N
Ema: Centre: 184189E 9174945N
Vertices: 184115E 9174957N
184154E 9174989N
184232E 9174895N
184193E 9174863N

2. Full details of the grab sample methodolgy and confirmation of the basis for selecting the grab sample material.

BBX Response: A large rock chip, or a series of chips weighing from 0.5kg to 1kg was/were arbitrarily taken from every unweathered (fresh) boulder and outcrop within the sampled areas. No visual basis was used in selecting individual sample points.

3. Full details of the logging of the samples setting out the following
a. The rock type
BBX response The rock type is an equigranular **bro, comprising pyroxene, placioclase and anciliary magnetite.
b. The degree of weathering and
BBX Response The bulk sample was taken from totally unweathered (fresh) rock
c. The nature of the mineralisation:

BBX response The nature of the mineralisation is currently unknown. A finely-disseminated, unidentified silver-gold mineral, possibly a sulphide, comprising around 0.5% of the rock mass has been observed in the majority of chip samples, but it is not clear if this mineral is directly linked with the precious metals recovered from the samples. There is no visible sign of hydrothermal alteration in the rock mass.

4. Confirmation of whether the grab sample material was loose material upon the ground or rock chips taken from in-situ outcropped material, of the two or some other sample type.

BBX Response: The "grab samples" at both Três Estados and Ema are in fact a combination of surface grab samples and bulk chip samples (see point 2).

5. Full details of sub-sampling methodology clearly stating how the bulk sample was aggregated and the methods used to generate the 5kg sample for analysis.

BBX response: The 5kg sample for metallurgical test work was a split from a 150kg bulk sample which was crushed and ground in a ball mill to 70% -100# and split using a riffle splitter.

6. The wording of the g/t assay results imply a total analysis of the 5kg bulk sample. Is this the case or is this an analysis of a sub-sample or leached product back calculated to the original bulk sample weight? A detailed clarification of the calculation methodology needs to be disclosed to adequately explain the “combined gold result”.

BBX response: The results announced for the 5kg bulk sample was not an assay result but a metallurgical extraction test result, representing the total gold and silver extracted from the 5kg sample following smelting of the entire sample. The result therefore, effectively represents a total analysis of the sample. The combined weight of contained gold and silver in the five recovered buttons, as shown in the table, was back-calculated to the original weight.

The g/t value for the original bulk sample is calculated by dividing the combined weight in grams of each metal in the buttons by the weight of the sample in grams (5,000) and then multiplying the result by 1,000,000 (grams in 1 tonne).

The five buttons were assayed by conventional fire assay having been scanned by SEM (scanning electron microscope) prior to assay to confirm the presence of precious metals.

7. The analytical methods used for determination of Au/Ag/Pt/Pd should be clearly outlined in section 1 of JORC table 1. For example, was Ag determined by titration and was any additional silver added to samples in fire assay?

BBX response: The analytical method used for the three Três Estados assays was routine fire assay with a lead collector on a 25g sub-sample following a proprietary pre-leach step and precipitation of precious metals with aluminium and sodium hydroxide.

The sub-sample was generated as a second split from a previously split 100g pulverised sample from an original 300kg bulk sample. Silver was not determined in this case and no silver was added to the sample.

Recovery of the products of the Ema metallurgical test was carried out as follows. After smelting, the resulting metallic buttons were dissolved in nitric acid, filtered and sodium chloride added to the solution to precipitate silver. The resultant precipitate was cupelled to form a silver button which was weighed on a micro-balance. The filtered residue was dissolved in aqua régia and ferrous sulphate added to the solution to precipitate gold, which was cupelled and weighed on a microbalance. Ammonium chlorate was added to the solution to precipitate PGM´s but no precipitate was obtained.

8. We note variations in processes are noted for Test 3 at the Nomos Facility. Please clarify in full any different analytical methods

BBX Response: The variation referred to in test 3 was a slight modification in the fire assay flux, involving the addition of potassium hydroxide.

9. Explanation of any QAQC completed and verification of sampling and assaying methods should be clearly outlined in Table 1 for results of this significance. If this work has not been completed it should be clarified as to why not and what further work is planned to verify the results.

BBX Response: The three Três Estados samples were assayed in conjunction with a blank and a certified standard for gold, platinum and palladium. The blank reported levels below detection limit for all three metals and the results of the standard are within acceptable limits. (+/- 10%)

The field sampling at both localities was supervised by the Company´s Senior Geologist, A. Moreira. The entire Ema metallurgical extraction process was personally supervised by the Company´s Exploration Manager and CP, A. de Castro.

The QAQC for EMA bulk samples was undertaken through personal supervision by Mr.de Castro of the whole process ensuring that no potential sources of contamination were present, including checking that the bulk smelting process was conducted after the furnace had been completely relined and that new crucibles were used for each determination. The metal buttons were weighed and photographed prior to being personally transported by Mr. de Castro to the Nomos laboratory for final analysis.

10. Please confirm that BBX is in compliance with Lisiting Rules and in particular, Listing Rule 3.1

BBX Response : The board of BBX confirms that it is in compliance with the ASX Listing Rules and in particular Listing Rule 3.1.

11. Please confirm that BBX’s responses to the questions above have been authorised and approved in accordance with its published continueous disclosure policy or otherwise by its board or an officer of BBX with delegated authority from the board to respond to ASX on disclosure matters.

BBX Response: The BBX board confirms that all the above responses have been approved and authorised in accordance with its published continuous disclosure policy.

An updated version of the JORC table is attached (see below):
Yours Sincerely