AYR Tenement, page-4

"I know nothing about geology/geochemistry, but I wonder if the imaginary line below could represent the cobalt link between the 3 tenements? "

No-idea2016,

I can demonstrate a copper-cobalt-gold link from the Mutooroo Cobalt District to the cobalt-copper-gold soil anomaly at AYR's Ophara project area (lower left hand corner). I am unable to demonstrate one across the 3 tenements based on the available public information available.

The black rectangle (at an angle) across the Silver City Suite-Mutooroo Granite Gneiss for mineral tenement EL3382, in the map below, is where the Mutooroo project copper-cobalt-gold JORC arises.

The Silver City Suite-Mutooroo Granite Gneiss crosses the SA/NSW border at grid reference ~6,435,000 mN (see map below). On the AYR release yesterday at ~6,435,000 mN was the cobalt-copper-gold soil anomaly (Ophara project area) in the lower left hand corner of Figure 2.

While the Silver City Suite-Mutooroo Granite Gneiss on which the Mutooroo project sits pinches out before it hits the SA/NSW border at grid reference ~6,444,000 mN, the Silver City Suite-Mutooroo Granite Gneiss to the east of the Mutooroo project crosses the SA/NSW border at grid reference ~6,435,000 mN.

The AYR geologists will need to locate a 'Mutooroo Shear Zone' in the amphibolite body on that eastern Silver City Suite-Mutooroo Granite Gneiss, which is where the copper-cobalt-gold mineralisation occurs at the Mutooroo project.

Note: the Mutooroo copper-cobalt-gold JORC mineralisation occurs as located structured remobilised, sulphide rich, breccia zones/lodes developed within a locally altered shear/fracture zone largely confined to an amphibolite body.



Source of map: HAV Annual Report EL3382 'Mutooroo Mine' for period 28th July 2009 - 27th July 2010 (available on SARIG), page 13

It should be remembered that COB's Thackaringa project does not have any copper or gold in any of the assay information I have seen on its website.

However, the Great Goulburn prospect is very similar to the Mutooroo project mineralisation, IMLTHO, in that both include cobalt, copper and gold assays.

So I would be very surprised if COB's cobalt mineralisation runs for 20 kms between Ophara project area and COB's Thackaringa project without pinching out.

If further AYR testing of cobalt-copper-gold anomaly shows positive results, it provides the basis for possible future co-operation between HAV and AYR around grid reference ~6,435,000 mN with development of a mine if the mineralisation proves economic.

Hope this helps.

P.S. In terms of your imaginary line, I have done the same thing in the past but I normally extend it to Broken Hill.

I can get a straight line going from BH, through Thackaringa to Mutooroo on Figure 1 from AYR's release yesterday.

Cheers

These are only my random thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.