LOCATION & ACCESS; The project is located 240klms from Cairns, 4-5 hour, & 90km North of Chillagoe and 100km west of the Mareeba-Cooktown section of the Peninsula Development Road. Mareeba and Atherton are the nearest industrial and retail service centres. The project is located just four hours from Cairns City by road, which is the commercial and industrial hub for the region. The Cairns International airport connects to 31 national and international destinations.

Access is by the Hurricane/Karma Waters Road off the Peninsula Development Road from Mareeba to Cooktown; to the Hurricane road leading to Groganville; and then by registered mine- access roads. The road is graded annually by Mareeba Council each year. Access may be restricted during wet season (December to March).

OVERVIEW/HISTORY Gary Donovan (owner) has mined and prospected the area over a 28 year period, culminating in securing rich alluvial ground. Mr Donovan has an intimate knowledge of the subject area and its history. He was Operations Manager for Madden ResourcesNL (AUR/ADR) 1988/89) and worked for CRA as Operations Manager at Mt Kare in the highlands of Papua New Guinea. Using this experience, the Donovan family has mined in the area for 27 years and accumulated significant leases and exploration areas for future production. In the historic account of mining in the Palmer River goldfields including the watersheds of McGann’s and Kennedy’s the following excerpt makes interesting reading– in 1874 an estimated 10000 men busily working the rich alluvial gravel the Palmer River recorded production of between 1-2 million ounces of gold from 1878 through to the early 1880s. In the historic account of mining in the Palmer River goldfields including the watersheds of McGann’s, Kennedy and Cannibal Creeks. (ref: de Havelland D published 31.12.1986) . ESTIMATED RESOURCE and RESERVES An estimated resource of 1,863,000 LCM(Loose Cubic metre) within the granted mining leases; average grade 1 oz per 80/100 LCM. On todays Gold price this equates to $47,572,800.00 million AU. On review of the method of mining conducted by ADR/AUR; creek beds previously mined by that company were re-tested by G Donovan & G Robinson. Results proved up significant gold reserves remaining in creek beds and on some higher terraces. Some of this resource has been secured under granted mining leases. The current mining operation relocated to this group of tenures beginning 2016 and is currently working on other ground in the area, consistently producing 1 ounce to 80/100 per m³. HISTORIC EXPLORATION HISTORY Company Reports (CR) are available through Queensland Mines Department (GEORES);using relevant EPM numbers. See attached appendices. Historically, exploration and drilling for hard-rock has been carried within the subject area by several companies; BHP, Strike Exploration, Carpentaria Gold, Shell, Solomon Pacific to name a few. Donovan’s held a JV with BHP for over 9 years under EPM:9795 (Kennedy’s,McGann’s/Jabiru Creek area) under which extensive exploration was carried out within the subject areas. BHP withdrew when they joined BHPBilliton as at that time as their focus was away from gold. HISTORIC COMPANY REPORTS AVAILABLE ON REQUEST The following company reports filed from 1988-2001 are of particular interest to this area: Company Period Company Report appendix BHP MINERALS December 1997 CR29822 Appendix 1 STRIKE EXPLORATION/BHP December 1998 CR30689 Appendix 2 STRIKE EXPLORATION December 1999 CR31461 DIAMTREME RESOURCES December 2000 CR33024 SOLOMON PACIFIC RESOURCES December 1988 CR18389 Appendix 3 CARPENTARIA EXPLORATION 1986/1987 CR16544 Appendix 4

GEOLOGY The following sections are a quote from CR20418( A to P 4048) Hamilton. G, 1988 Solomon Pacific ResourcesNL (reference)

REGIONAL GEOLOGY The area is underlain by Middle Devonian to Lower Carboniferous rocks of the Hodgkinson Formation. This formation is a thick accumulation of micaceous greywacke, siltstone and slate with intercalcations of basic volcanics, cherts and conglomerates. These lithologies have been metamorphosed to greenschite facies and are steeply folded and strongly cleaved. They consist of micaceous schist, phyllite, slates, greywacke and siltstone.

LOCAL GEOLOGY The principal lithologies making up the Hodgkinson Formation in this area are the strongly cleaved phyllites and sandstones which, being the least resistant units, are exposed only within the creeks. Areas between the creeks, along the ridges and spurs are generally covered in quartz and chert float derived from pyritic quartzites (recrystallized chert),cherts and the quartz veins and quartz fault infilling which form the more resistant interfluves.

Located within the Historic Palmer River Goldfield North Queensland, Kennedy’s/McGann’s/Jabiru Creek. Renown as one of the richest alluvial goldfields in Queensland.
In the historic account of mining in the Palmer River goldfields including the watersheds of McGann’s and Kennedy’s the following excerpt makes interesting reading "in 1874 an estimated 10000 men; many of whom were Chinese busily working the rich alluvial gravel the Palmer River recorded production of between 1-2 million ounces of gold from 1878 through to the early 1880's. In the historic account of mining in the Palmer River goldfields including water sheds of McGann's " (ref: de Havelland D published 31.12.1986)

Exploration History- Open Company Reports (CR) are available through Queensland Mines Department (QDEX) website. Historically, exploration and drilling for hard-rock has been carried out within the subject area by several companies; BHP, Strike Exploration, Carpentaria Gold, Shell, Solomon Pacific to name a few.
The owners held a JV with BHP for over 9 years under EPM:9795 under which extensive exploration was conducted(McGann's/Kennedy/Jabiru Creek areas). The following annual CR's filed from 1988-2001 are particularly interesting:
BHP MINERALS December 1997 CR29822; STRIKE EXPLORATION/BHP December 1998 CR30689; STRIKE EXPLORATION December 1999 CR31461;
DIAMTREME RESOURCES December 2000 CR33024; SOLOMON PACIFIC RESOURCES December 1988 CR18389; CARPENTARIA EXPLORATION 1986/1987 CR16544;
It is important to note that the price of gold 1997/2000 was considerably lower (AUD350 per ounce) compared to the current price.

Copies of the above Company Reports are available on request.

On completing a review on the manner in which mining was conducted by AUR/ADR, Creek beds previously mined by that company were re-tested by G Donovan & G Robinson. Results proved up significant gold reserves remaining in creek beds & some higher terraces, some of which has been secured under granted Mining Leases.
The project currently works this ground, consistently producing 1 ounce of gold to 80/100 per m3. Kennedy Creek/McGanns bullion represents 97-98% pure gold.
There remains further resources to be secured covered by exclusive exploration areas.