a$0.18 independent geologist’s report on the beikeng

ANNOUNCEMENTSingapore UEN 2012010180E | ARBN 158 717 492 | www.asaplusresources.com

A$0.18[6 July 2017]

ASX Code: AJY

ISSUED CAPITAL

Issued Shares: 88,000,000

Market Cap: $15,840,000

BOARD OF DIRECTORS

Ir Che Mohamed Hussein

LAU Eng Foo (Andy)

Dominic LIM Kian Gam

REGISTERED OFFICE c/- Company Matters Pty Ltd Level 4 Central Park 152 St Georges Terrace Perth WA 6000Tel: +61 8 9211 6653 Fax: +61 2 9287 0350

INDEPENDENT GEOLOGIST’S REPORT ON THE BEIKENGMINE OWNED BY HONGJI MINING CO., LIMITED, ASUBSIDIARY OF THE COMPANY

Directors of Asaplus Resources Limited (the “Company”) are pleased topresent herewith an independent geologist’s report on the Beikeng Mineowned by Hongji Mining Co., Limited, a subsidiary of the Company.

Issued for and on behalf ofASAPLUS RESOURCES LIMITED

Ir. Che Mohamed Hussein Bin Mohamed ShariffChairman7 July 2017

The information in this announcement and the accompanying report that relates toExploration Results, Mineral Resources or Ore Reserves is based on informationcompiled by Mr Peter Peebles who is a member of the Australasian Institute ofMining and Metallurgy and a member of the Australian Institute of Geoscientists.Mr Peebles is employed by Darlington Geological Services Pty Ltd. Mr Peebles hassufficient experience which is relevant to the style of mineralisation and type ofdeposit under consideration and to the activity which he is undertaking to qualify asa Competent Person as defined in the 2012 Edition of the ‘Australasian Code forReporting of Exploration Results, Mineral Resources and Ore Reserves’. MrPeebles consents to the inclusion in the report of the matters based on hisinformation in the form and context in which it appears.

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INDEPENDENTGEOLOGICALAND

RESOURCEREPORT

ON

BEIKENGIRONMINE

FUJIANPROVINCE,PEOPLE’SREPUBLICOFCHINA

PreparedforAsaplusResourcesLimited

Author:PeterA.PeeblesBSc(Geol),MAIG,MAusIMMCompany: DarlingtonGeologicalServicesPtyLtdDate: 21stMay2017

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TheDirectors Date21stMay2017AsaplusResourcesLimited21BukitBatokCrescent#15-74,WCEGATOWER,SINGAPORE,SINGAPORE,658065 DearSirs,BackgroundInformationThis independent Geological and Report has been prepared by Darlington Geological Services Pty Ltd(“DGS”)(ABN56125009725)attherequestofAsaplusResourcesLimited(ARBN158717492)(“Asaplus”)toprovideanindependentappraisaloftheBeikengIronMine(alsoreferredtoastheDatianQianPingIronMine)inFujianProvince,People’sRepublicofChina.This report has been prepared in accordancewith the Australasian Code for Reporting on ExplorationResults, Mineral Resources and Ore Reserves December 2012 edition ("JORC Code"), the Code andGuidelinesforAssessmentandValuationofMineralAssetsandMineralSecuritiesfor IndependentExpertReports (“ValminCode”),and RegulatoryGuides111and112relatingto IndependentExpertReportsbytheAustralianSecuritiesand Investments Commission (“ASIC”)and relevant requirementsof theListingRulesoftheAustralianSecuritiesExchange(“ASX”).This report has been prepared by PeterA Peebleswho is the Principal ofDGS, a qualified geologist, aMemberoftheAustralasianInstituteofMining&Metallurgy(“AusIMM”)andaMemberoftheAustralianInstitute of Geoscientists (“AIG”). He has had over 30 years’ experience in mineral exploration andevaluationandmorethan20years’experienceinmineralassetvaluation.Mr Peebles has the appropriate qualifications, experience, competence and independence to beconsidered an “Expert” under the definitions provided in the Valmin Code and “Competent Person” asdefinedintheJORCCode.The information in this report that relates toExplorationTargetsandResources isbasedon informationcompiledbyMrPeebleswhohassufficientexperiencewhichisrelevanttothestylesofmineralisationandtypes of deposit under consideration and to the activity which has been undertaken to qualify as aCompetentPersonasdefinedbythe2012editionofthe“AustralianCodefortheReportingofExplorationResults,MineralResourcesandOreReserves” (JORCCode). MrPeeblesconsents to the inclusion in thereportofinformationcompiledbyhimintheformandcontextinwhichitappears.MrPeeblesdoesnothaveanymaterialinteresteitherdirect,indirectorcontingentinAsaplusnorinanyofthemineral assets included in this report nor in any other Asaplus asset.DGS has provided geologicalservicestoAsaplusontwopreviousoccasionsbywayofa independentgeologicalreportsfor inclusion intheAsaplusprospectus(2012),andageologicalreportonanotherpotentialprojectnearDatian(2014) DGS has hadnoinput intothe formulationof any of the mineraltenements under review.This Report hasbeenpreparedbyDGS strictly in the roleof an independent consulting geologist.Thepresent statusoftenements listed in this Report is based on information provided by Asaplus and the Report has beenprepared on the assumption that the tenements will prove lawfully accessible for evaluation anddevelopment. The legal status of the tenements has not been investigated or assessed, nor have anypolitical,environmentalconsiderationsbeenconsidered.Thisreport isanIndependentGeological Reportanddealswiththeprospectivityofthetenementssubjecttothisreportonly.Asaplus has warranted to DGS that full disclosure has been made of all material information in itspossession or knowledge and that such information is complete, accurate and true. None of theinformationprovidedbyAsaplushasbeen specifiedasbeingconfidentialandnot tobedisclosed in thisReport.

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Theauthorhastakenallcaretoensurethatthisreport isbasedonthebest informationavailableatthetimeofwriting this report, butwill not be held liable for any inaccuraciesoromissions containedwithinformationreceivedfromAsaplusorit’srepresentatives.FeesforthepreparationofthisReportarebeingchargedatnormalcommercialrateswithexpensesbeingreimbursedat cost.Paymentof feesandexpenses is innoway contingentupon the conclusionsof thisdocument.InformationusedinthepreparationofthisReporthasbeenderivedfromtechnicalinformationprovidedbyAsaplus,aswellasasitevisit.The writer is generally familiar with the various geological settings and styles of mineralisation andcombinedwith the technical data available is able tomake informed comments on theDatian BeikengMineProject.Yoursfaithfully,ForandonbehalfofDarlingtonGeologicalServicesPtyLtd

(Signed)PeterAPeebles BSc(Geol),AIG,AusIMM

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TABLEOFCONTENTS

1.Introduction2.LocationandAccess3.HistoryoftheBeikengIronMine4.Geology4.1. RegionalGeology4.2.ProjectGeology5.PreviousExploration6.Mineralisation7.Resources8.ExplorationTargetPotential9.GlossaryofTechnicalTerms10.BibliographyTablesTable1:DiamondDrillHoleCollarInformationTable2:DiamondDrillHoleAssayResultsTable3:SurfaceTrenchingAssayResultsTable4:UndergroundTrenchSamplingResultsTable5:UndergroundChannelSamplingResults(2017)Table6:InferredResourceEstimateSummaryTable7:ExplorationTargetPotentialForFe,Pb,ZnandWO3Table8:ExplorationTargetPotentialForSilver

FiguresFigure1:LocationofFujianProvinceinthePeoplesRepublicofChinaFigure2:LocationoftheBeikengProjectWithinFujianProvinceFigure3:ProjectLocationWithNearbyMinesFigure4:NearbyMiningCompaniesandInfrastructureFigure5:TenementGeologyandDrillHolePlanFigure6:LocationofDrillHoles,SurfaceTrenchingandMineEntranceFigure7:Locationof2017UndergroundChannelSamplingatRL’s675,688&792Figure8:SectionLine0Figure9:SectionLine1Figure10:SectionLine2Figure11:SectionLine3Figure12:SectionLine4Figure13:SectionLine6

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PlatesPlate1:MinePortalPlate2:ExplosivesMagazinePlate3:ProcessingPlantPlate4:ScheeliteUnderUltra-VioletLight

Appendix

JORCTable1Compilation

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1. IntroductionAsaplusResourcesLtd (Asaplus),holdsan80% interest intheBeikeng IronMine,which issituatedapproximately20kmfromthetown/cityofDatian,withinFujianProvinceinthePeoplesRepublicofChina(seeFigures1,2and3).ThisReportisanIndependentGeologicalReportandResourceReportoftheBeikengIronMine.DatianCounty is themainmineralproducing countyof Fujianprovince.Mineral resourceswithinDatianCountyare relatively rich,withabundant coal, ironoreand smaller copper, lead, zincandmanganesedepositsaswellaskaolin.ByAustralianstandards,thesizeoftheironoredepositsaresmall and usually of a lower grade, but generally the ore is easily able to be beneficiated to anacceptablegradeandtheinfrastructureisalreadyestablished(populationcentres,roads,power,railetc)withmanysteelmillsandpigironfacilitiesbeingcloseby.ThereisamajorsteelmillinSanming(see Figure 2) which is approximately 100 km by road from the project. This mill producesapproximately5.5milliontonnesofsteelperyearandisseekingadditionalsuitablemillfeedforit’soperations.Scatteredaround theprojectareaareseveralmuchsmaller“pig iron” facilities,whichagainareseekingsuitablefeedfortheiroperations.

Themine site is locatedon thewestern sideof theDaiYunMountainswhicharedominatedbysteephillsand lowvalleyswiththehighestpeakwithinthe licenceareaof880metresasl,andthelowestpointisat735metresasl.Withinthevalleysarescatteredagriculturalactivities(ricegrowing,sweetpotatoes)whileontheslopesthereislimitedforestryproduction(mainlypine).

Figure1:LocationofFujianProvinceinthePeoplesRepublicofChina

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2. LocationandAccess

TheProject is locatedwithinFujianProvince in thePeople’sRepublicofChina.Thenearestmajorcity/townsareSanmingandDatianbothwithpopulationsofapproximately400,000.TheBeikengIronMine is approximately 20 km from Datian,which in turn is 230km from themajor city ofXiamen.AccessfromXiamentoDatianisbyamajorfreeway,whilefromDatiantotheprojectareaisaccessedviaawellmaintainedsealedroad.Asaplus, throughoneof it’s subsidiaries (theDatianHongjiMiningCo)holds the exploration andextraction licenceaswellas theproduction safetypermitover the0.77sqkmBeikeng IronMine.Anothersubsidiarycompany(theDatianSilverstoneMiningCo.Ltd)holdstheexplorationlicencetotheSilverstoneIronProjectof5.6sqkm.TheSilverstoneProjectcontainsaninferredresourceof3.5milliontonnesatanaveragegradeof41.8%iron.ClosetotheBeikengandSilverstoneprojectsaremanyothersimilarstyledmineraldeposits,allofthem currently inproductionorhavebeenmined in thepast.Theseminesall containpotentiallycommercial amounts of iron ore, plus polymetallicmetals such as lead, zinc, copper, and silver.Figure 3 shows the locationofboth theBeikeng and Silverstone Projects aswell as someof thenearbyironmines.Othermines,notshowninFigure3aredisplayedinFigure4.

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Figure2:LocationofTheBeikengProjectWithinFujianProvince

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Figure3:ProjectLocationWithNearbyMines

3.HistoryoftheBeikengIronMineAs early as 1965 a regional geological survey team found a number of occurrences of limonite.Furtherwork conducted in 1976 identified 5 small limonite ore bodies and in 1987 a geologicalexplorationteam,whileconductingaregionalgeochemicalstreamsamplingprogrammediscoveredtheoccurrenceofcopper(Cu),lead(Pb),zinc(Zn)andsilver(Ag)polymetallicanomalies.

InApril2005theFujianGoldHoldingsGroupinitiatedregionalexplorationwhichincludedmapping,the drilling of 5 diamond drill holes (in September 2006), some surface trenching as well ashydrogeologicalstudies.Otherstudiesincluded

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�� Studiesoftheregionalgeologyandmineralization�� thebasicidentificationoftherockstrata,tectonics,andtherelationshipswiththe

mineralization.�� Thebasicidentificationoftheorebodyandit’soccurrence,shape,size,thickness

distribution,andtounderstandthepost-mineralizationstructuresandprocesses.�� thebasicidentificationoforemineraltypes�� Hydrologicalgeologicalmapping,thebasicidentificationwithintheareaofaquifersandto

studytherechargeofgroundwater.�� Undergoresourceestimations

ThesestudieswereconcludedbyJune2007.

DevelopmentoftheBeikengIronMinewascommencedin2008bytheFujianDatianChiXinMiningCowhichdevelopedtwodeclinestoaccesstheundergroundorezones,wherelimitedundergroundsamplingwasconductedandanestimated25,000tonnesoforeextracted.Themineoperated forabout2years(from2008to2010)whenminingceasedastheMiningExtractionPermitfortheminewasfrozenandsubsequentlyseized.An80%interestwasthenacquiredbytheDatianHongjiMiningCoin2015.

Oncetheexplorationlicence,extractionlicenceandtheproductionsafetypermitwereissued,thenminedevelopmentwasabletobecommenced.Sincethen,themaindeclinehasbeenrefurbished,theminehasbeende-wateredandventilationsystemshavebeeninstalledandfurtherdevelopmentundertaken.Themineportalhasalsobeenrefurbished(plate1)

Plate1:MinePortal

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Anexplosivemagazinehasbeenbuiltandoneoftwoexistingprocessingplantsisbeingrefurbished.(see plates 2 and 3 and Figure 4). In addition, a new purpose built processing plant is beingconsideredandthesiteforsuchaplanthasbeenselectedandacquired.(seeFigure4)

Plate2:ExplosivesMagazine

Plate3:ProcessingPlantFor

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Figure4:NearbyMiningCompaniesandInfrastructure

4. Geology4.1Regional GeologyJusttothewestoftheprojectarea,thelithologiesconsistoftheDevonianTaoZiKengGroupwhichisabout550metresthickandconsistsofshallowmarinegreyquartzconglomerates,sandstonesandgravellyquartzsandstones.

OverlyingtheToaZiKengGroupistheTongLinDoGroupofCarboniferousageandconsistsofquartzsandstone,quartzite,sereciticsiltstoneandmudstones.

ThePermianWenBiShanGroup,whichoccupiesthecentralpartoftheProjectareaconsistsofgrey-blackmudstones,calcareoussiltstonesandsandstones.

ThewholesequencehasthenbeenintrudedbytheYanShangranodioriteintrusives.

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4.2ProjectGeology

TheWenBiShanGroup,hasbeenalteredbyhotfluidsemanatingfromthegranodioriteintrusives,close to the boundary of the sediments and the granodiorite. The interaction of the fluidswithcalcareoussediments formsaskarnwhichactstoconcentratevariousmetals intovariouspartsoftheskarn,thusformingtheorebody,whichtrendsinaN-Sdirection,withasteep(approximately75to80deg)diptothe west.Themetallicmineralsfoundinskarnsareusually,butnotalways,intheformofsulphides.Figure5showsthesimplifiedgeologyaswellasthelocationofthediamonddrillholesandthemainmineentrance.

Figure5:TenementGeologyandDrillHolePlan

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5.PreviousExplorationAsoutlinedearlierinthisreport,thedetailedexplorationoftheBeikengIronOreMinescommencedinearnestin2005andconcludedin2007.TheexplorationwhichhasenabledanInferredResourceto be estimated, included surface mapping, surface and underground trenching of some 1,138metres,5diamonddrillholestotally553metresand100samplesbeinganalysedforFe,Pb,ZnandWO3. In 2017, channel samplingwas conducted over the entirewidth of the ore body in threelocations at varyingRL’s.The resultsof the channel sampling, trenchinganddiamonddrillingaresummarisedinSection7(Resources).6. MineralisationThe skarn is poly-metallic ie containsmany differentmetallic elements, some of which are incommercialconcentrationswithin theProjectarea.Theelementswhicharepresent inpotentiallycommercial concentrations are iron (Fe), lead (Pb), zinc (Zn), tungsten (W) and silver (Ag). Lesseramountsofcopperarepresentandareunlikelytobeofcommercialinterest.Elsewhereinthearea,thecopperconcentrationsarehigherandareofcommercialinterest.

Prior to theDatianHongjiMiningCo takingcontrol in2015, theonlymetals identifiedasbeingofcommercial interestwere iron, lead and zinc.However, since 2015 tungsten, in the formof themineral scheelite (calcium tungstate - CaWO4) has been discovered. Scheelite fluoresces whenexposedtoultravioletlight.Plate4showsthescheeliteunderultravioletlight.

The iron is in the formofmagnetite (Fe3O4),arelativelycommon ironore,whilenearsurface thedominantironoreisweatheredmagnetiteintheformoflimoniteandgoethite.

The zinc ore consists of sphalerite, zinc sulphide (ZnS) and it can be in the form of fine graineddisseminatedmaterialorintheformofcoarsercrystallinematerial.

Leadoreconsistsofgalena,leadsulphide(PbS)andittoocanbeeitherasfinegraineddisseminatedmaterialaswellascoarseraggregates.

Therehavebeennomineralogicalstudiesconductedonthesilveranditisuncertainastoit’sform.

Fromtheresultsofthedrilling,surfacetrenchingandundergroundchannelsamplingconductedsofar itwouldappear that the iron, lead, zinc, tungstenand silverareevenlydistributedacross thewholewidthoftheorebody.

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Plate4:ScheeliteUnderUltra-VioletLight

7. ResourcesResourcestudies havebeenundertakenandtheresourceestimateisshownasTable6.Theresourcesare inthe“Inferred”Category.Theresource estimate isbasedonthegeologicalunderstanding of the ore body, the previous drilling of 5 diamond drill holes, 5 surfacetrenchesand5undergroundchannelsampleprofiles.Thecollar information,assayresultsfordrillholes,surfacetrenching,undergroundtrenchingandundergroundchannelsamplingareshown inTables1to5.The locationofthedrillholes,surfacetrenchingandthemineentrance (and decline) is shown in Figure 6 while the underground channel samplingundertaken inApril2017whichwasconductedat the792m,688mand675mRL levels isshownonFig7,withtheanalyticalresultsshownasTable5.ThischannelsamplingshowsthatthesilverisuniformlydistributedacrosstheentirewidthoftheorebodyandatallRLlevelssampled.

HoleID Latitude(Deg) Longitude(Deg) RL Dip Azimuth EOH(m)ZK001 25.86308 117.84810 841.23 -90 0 128.0

ZK101 25.84871 117.86329 816.53 -90 0 123.4

ZK201 25.84739 117.86291 824.24 -90 0 120.74

ZK301 25.84955 117.86341 780.6 -90 0 42.81

ZK401 25.84667 117.86238 789.46 -90 0 138.45

Table1:DiamondDrillHoleCollarInformation

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HoleNo From(m) To(m) Interval(m) Fe% Pb% Zn% WO3%ZK001 0 101 101 NSR

101 103 2 18.32 1.71 2.07 0.57

103 105 2 23.56 1.53 1.86 0.48

105 107 2 26.41 1.64 1.93 0.37

107 109 2 21.92 2.13 1.38 0.77

109 111 2 17.46 1.02 1.23 0.9

111 113 2 22.36 1.46 1.52 0.5

113 115 2 23.95 1.51 1.64 0.61

115 117 2 26.01 0.74 1.01 0.43

117 119 2 27.43 1.27 1.45 0.7

119 121 2 28.52 1.58 1.76 0.32

121 123 2 31.8 1.75 2.23 0.53

123 125 2 29.88 1.32 0.8 0.68

125 127 2 35.78 2.53 2.81 0.7

127 128 1 41.2 1.71 3.59 0.21

ZK101 0 93.6 93.6 NSR

93.6 95.6 2 19.86 1.03 2.71 0.26

95.6 97.6 2 23.65 1.54 2.36 0.47

97.6 99.6 2 26.04 1.33 2.11 0.35

99.6 101.6 2 22.89 1.48 2.29 0.66

101.6 103.6 2 24.62 1.47 1.08 0.73

103.6 105.6 2 27.89 1.52 1.63 0.81

105.6 107.6 2 29.01 1.75 1.84 0.54

107.6 109.6 2 28.73 1.69 1.76 0.66

109.6 111.6 2 26.08 2.72 2.04 0.27

111.6 113.6 2 25.93 2.31 1.94 0.61

113.6 115.6 2 23.19 1.87 1.65 0.66

115.6 117.6 2 24.89 1.79 1.54 0.76

117.6 119.6 2 24.38 2.46 3.15 0.49

119.6 121.6 2 26.1 2.32 2.78 0.53

121.6 122.5 0.9 31.62 2.43 2.1 0.7

122.5 123.4 0.9 NSR

ZK201 0 92.6 92.6 NSR

92.6 94.6 2 19.46 3.68 0.31 0.49

94.6 96.6 2 23.52 2.15 0.78 0.53

96.6 98.6 2 28.37 2.53 1.04 0.51

98.6 100.6 2 25.69 1.04 1.25 0.67

100.6 102.6 2 29.71 1.26 1.31 0.61

102.6 104.6 2 26.73 1.2 1.17 0.76

104.6 106.6 2 24.11 1.66 1.59 0.44

106.6 108.5 1.9 27.52 0.81 1.02 0.57

108.5 120.74 18.34 NSR

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ZK301 0 42.81 42.81 NSR

ZK401 0 138.45 138.45 NSR

Note:NSRmeansNoSignificantResultsTable2:DiamondDrillHoleAssayResults

TrenchFrom(m) To(m) Interval(m) Fe% Pb% Zn% WO3%

TC001 0 1.8 1.8 NSR 1.8 3.8 2 27.62 0.47 1.23 0.51 3.8 5.8 2 30.36 0.72 1.13 0.36 5.8 7.8 2 35 0.83 1.31 0.45 7.8 9.8 2 34.92 0.78 1.26 0.63 9.8 11.8 2 34.82 0.28 0.08 0.51 11.8 13.8 2 38.52 0.31 0.62 0.7 13.8 15.8 2 33.78 0.42 0.73 0.38 15.8 17.8 2 31.27 0.56 0.92 0.53 17.8 19.6 1.8 NSR

TC101 0 2 2 NSR 2 3.1 1.1 25.21 0.39 0.47 0.48 3.1 5.1 2 34.56 0.56 0.72 0.4 5.1 7.1 2 41.07 0.93 1.22 0.36 7.1 9.1 2 39.03 0.85 1.13 0.52 9.1 11.1 2 40.32 1.12 1.34 0.71 11.1 13.1 2 42.61 0.1 0.15 0.63 13.1 15.1 2 45.1 0.25 0.31 0.41 15.1 17.1 2 37.45 0.34 0.43 0.83 17.1 19.1 2 58.92 0.05 0.04 0.52 19.1 21.1 2 43.61 0.51 0.72 0.63 21.1 23.1 2 38.78 0.73 0.96 0.67

23.1 25.0 1.9 NSRTC201 0 2 2 NSR

2 4 2 30.76 0.39 0.47 0.54 4 6 2 35.67 0.31 0.37 0.71 6 7.5 1.5 32.14 0.43 0.69 0.7 7.5 9 1.5 31.26 0.52 0.83 0.68 9 10.6 1.6 NSR

TC301 NSRTC401 0 2 2 NSR

2 4 2 34.65 0.46 0.1 0.63 4 5.9 1.9 32.1 0.35 0.42 0.51

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TC601 0 2 2 31.45 0.41 0.82 0.45 2 4 2 33.86 0.37 0.63 0.67 4 5.8 1.8 37.26 0.05 0.1 0.52

Note:NSRmeansNoSignificantResultsTable3:SurfaceTrenchingAssayResults

Trench From(m) To(m) Interval(m) Fe% Pb% Zn% WO3%PD1 0 4 4 NSR 4 6 2 18.9 3.99 0.71 0.51 6 8 2 22.43 4.01 0.75 0.46 8 10 2 27.3 2.85 1.31 0.49 10 12 2 27.43 1.82 2.06 0.61 12 14 2 29.72 1.72 1.83 0.73 14 16 2 31.16 1.97 1.64 0.7 16 18 2 28.69 1.23 0.99 0.52 18 20 2 27.81 1.45 1.37 0.8 20 22 2 25.06 1.34 1.26 0.7 22 24 2 20.12 1.46 0.69 0.65 24 25.8 1.8 19.4 1.03 0.54 0.33 25.8 27.7 1.9 NSR

PD1-0 0 2 2 NSR 2 4 2 17.86 2.16 3.04 0.58 4 6 2 25.32 1.87 2.15 0.61 6 8 2 27.35 1.13 1.74 0.63 8 10 2 29.43 1.65 1.98 0.81 10 12 2 31.21 1.89 2.01 0.69 12 14 2 29.32 1.71 1.36 0.63 14 15.3 1.3 24.62 0.89 1.09 0.59 15.3 16.5 1.2 NSR

Note:NSRmeansNoSignificantResultsTable4:UndergroundTrenchSamplingResults

RL From(m) To(m) Interval(m) Cu% Pb% Zn% WO3% Mo% Agg/t792 0 1 1 NSR 1 3 2 0.24 0.23 2 0.97 0.006 51.3 3 5 2 0.18 0.11 1.36 0.58 0.001 29.4 5 7 2 0.12 0.13 3.54 0.54 0.001 41.3 7 9 2 0.13 0.18 2.6 0.36 0.001 37.9 9 11 2 0.19 0.12 1.71 0.6 0.002 24.8 11 13 2 0.013 0.17 1.5 2.57 0.001 34.1 13 15 2 0.036 0.067 2.04 1.63 0.001 20.8

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15 17 2 0.016 0.087 2.93 0.92 0.003 23.7 17 19 2 0.013 0.064 1.54 1.23 0.003 13.4 19 21 2 0.012 0.049 1.29 1.71 0.003 11.2 21 22 1 NSR

688 0 1 1 NSR 1 3 2 0.011 0.042 1.84 1.68 0.001 11.6 3 5 2 0.017 0.23 1.83 1.28 0.002 43.8 5 7 2 0.13 0.055 2.06 0.58 0.001 18.7 7 9 2 0.044 0.056 2.04 0.74 0.002 16.3 9 11 2 0.068 0.1 1.55 0.86 0.002 20 11 12 1 NSR

675 0 1 1 NSR 1 3 2 0.013 0.005 2.3 1.07 0.002 15.1 3 5 2 0.011 0.062 2.77 0.93 0.005 15.7 5 7 2 0.024 0.11 3.45 1.04 0.002 27.8 7 9 2 0.038 0.043 0.73 1.16 0.001 9.4 9 10 1 NSR

Note:NSRmeansNoSignificantResultsTable5:UndergroundChannelSamplingResults(2017)

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Figure6:LocationofDrillHoles,SurfaceTrenchingandMineEntrance

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Figure7:Locationof2017UndergroundChannelSamplingatRL’s675,688&792Figures8,9,10,11,12and13showcross-sectionsalonglines0,1,2,3,4and6.RefertoFigure6fortheirlocation.

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Figure8:SectionLine0

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AsummaryoftheResourceEstimateisshowninTable6andthewholeresourceisinthe“Inferred”category.Theresourceestimateincludesthe25,000tonnesalreadymined,asthismaterialwasneverprocessedandisstockpiledattheminesite.

Tonnes Fe(%) Pb(%) Zn(%) WO3(%)1,058,100 27.52 1.53 1.22 0.58Table6:InferredResourceEstimateSummary

8.ExplorationTargetPotentialTheorebodyisopenatdepth,andthereisnogeologicalreasontosuggestthattheoredoesnotcontinuebelowtheorebodythatmakesupthe“Inferred”Resource. Therehasbeenvery limitedassaying forsilver,but theundergroundchannelsamplingconducted in2017

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(seeTable5)indicatesthatthesilverisdistributedacrosstheentirewidthsoftheorebodyandatalldepthswithsamplestakenfromRL’s756,688and792.Table7showstheExplorationTargetPotentialwithrespectforFe,Pb,ZnandWO3withtherangesof tonnagesandpotentialgrades for the respective commodities.TheExplorationTargetPotentialwithrespecttosilverisshownbelowasTable8

Table7:ExplorationTargetPotentialForFe,Pb,Zn andWO3

Table8:ExplorationTargetPotentialForSilver

With respect to The Exploration Target Potential the potential quantity and grade isconceptual in nature as there has been insufficient exploration to estimate aMineralResource. It isuncertain if furtherexplorationwill result in the estimationofaMineralResource.

Tonnes Fe(%) Pb(%) Zn(%) WO3(%)Upper Lower Upper Lower Upper Lower Upper Lower Upper Lower350,000 250,000 37.0 21.8 2.20 0.48 2.09 0.57 0.71 0.43

Tonnes Ag(g/t)Upper Lower Upper Lower

1,408,000 1,308,000 50 10

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9.GlossaryofTechnicalTermsAdit Ahorizontaltunnelexcavatedfromthesurface,normallyusedtoaccessundergroundorebodies

Alluvium Transporteddetritalmaterialwhichhasbeendepositedbywind,movingwateretc

Alteration Azonewithinarockthathasundgonephysicalorchemicalchange

Argillaceous Containinghighproportionsofclaylikeminerals

Azimuth Thecompassdirectionthatadrillholeisaimedat

Beneficiation Aprocessbywhichmineralconcentrationscanbeincreased

Calcareous Containingcalciumcarbonate

Carboniferous Aperiodofgeologicaltimefromabout360millionto300millionyearsago.

ChannelSampling Asampletakeneitheracrossoralongageologicalstrucure.Canbeonthesurfaceorinanundergroundopening

Collar Thelocationofadrillhole

Conglomerate Coarsegrainedsedimentaryrocksinwhichtheclastsarewellrounded.

Decline Aninclinedroadtoaccessdeeperpartsofanundergroundmine.

Devonian Aperiodofgeologicaltimefromabout395millionto345millionyearsago.

Diamonddrilling Amethodofdrillingwithadiamondimpregnatedbit,givingacylindricalcoreofrock.

Dip Theangleatwhicharocklayerorfeatureisinclinedfromthehorizontal

Drive Ahorizontaltunnelwithinundergroundworkings

Galena Leadsulphide-animportantoreoflead

Goethite ��

Granodiorite Agranitewithalowersilicacontent

Intrusives Abodyofigneousrockwhichinvadesolderrocks

Limestone Asedimentaryrockconsistingofcalciumcarbonate

Limonite Atypeofironore-Hydratedironoxide.FeO(OH)·nH2O

Litholgy Rocktype

Mafic Anigneousrocktypethatisdarkincolourandconsistsessentiallyofmineralsrichinironandmagnesium

Magnetite Amagneticformofironore

Mineralisation Theprocessandconcentrationofmineralswithinarockwhichmaybeofeconomicsignificance

Mudstone Asedimentaryrockformedbytheconsolidationofmuds

PigIron Impuresteelwhichhasahighcarboncontent

Polymetallic Morethanonemetal

Portal Openingtoaccessanundergroundmine

Quartzite Ametamorphosedsandstone

Sandstone Asedimentaryrockmadeupofsandsizedparticles

Scheelite Anoreoftungsten-oftenfloursescent

Sericite Afinemicaformedbymetamorphism

SG(SpecificGravity) Ameasureofdensity-tonnes percubicmetreSiltstone Asedimentaryrockmadeupofsiltsizedparticles

Skarn Arockformedbytheinteractionoffluidsfromanigneousintrusionandnearbysediments-usuallylimestones

Sphalerite Zincsulphide-animportantoreofzinc

Strike Horizontaltrendordirectionofageologicalfeature

Sulphides Metallicorecontainingsulphur

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10.Bibliography1.FujianProvinceDatianQianPingNorthPitDetailedGeologicalReport.ZhandZhiChen,WuWenSen.June2007

Appendix–JORCTable1data

JORCCode,2012Edition–Table1

Section1SamplingTechniquesandData(Criteriainthissectionapplytoallsucceedingsections.)

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