North East Tasmania, Australia.

The mining operation is contained within three mining leases for a total of 132 hectares. Leases 7M/2001, 14M/1998 and 18M/2009 are 100% owned by Creekco Pty Ltd, and are unencumbered. The Mining operation uses a “cut and fill” type method of operation. This simple process involves the extraction from one ore “block/panel”, processing it and using the tailings from that “block” to be returned to fill the void left from the previous“block”. Alluvium/ore is dug by excavator and hauled via trucks to the mobile, processing plant which has a capacity of up to 80 cubic metres an hour. The alluvium is then fed into the processing plant and undergoes a system of washing and screening via trommel screen to produce a washed pebble +8mm screen oversize product, with the undersize mineral bearing (-8 mm) product reporting to the onboard jigs for removal of the heavy mineral component. This results in the tailings being returned by gravity back to the previous excavation pit to allow for synchronous rehabilitation.

Tin:
JORC resource of 365 tonnes of 70% cassiterite concentrate from sampling 28% of two of the three tenements 7M/2001 and 14M/1998.

Pebbles:
An estimated resource of a minimum 635 thousand tonnes of pebbles are indicated to exist on the tenements. The Pebble component (+8mm) equates to approx 50% of the volume of wash, and is currently being wholesaled as a byproduct from the Mining operations. The company who is currently purchasing the pebbles wholesale are upgrading the product by sizing and distribution. Significant opportunities exist for this value adding to take place on site; markets already exist for “provinced” pebbles that are produced in an environmentally responsible manner. Allowing for major market expansion and export opportunities. The Pebble by product has a potential wholesale value in excess of $AUD6.68 Million.

Gold:
The recoverable Gold content of the Cassiterite concentrate averages approx 1.2 Ounces Gold per tonne of Concentrate. Therefore it is estimated that in excess of 440 Ounces of Gold exists on the tenements.

Sapphires:
Gemstones including Topaz, Zircon, Spinel and Sapphire are a common accessory product of North East Tasmania Tin fields. Samples of the Sapphires have been sent for examination and it was found that the Sapphires although small were of a commercial size and colour for the Gemstone cutting houses in Thailand and India. The North East Tasmanian Sapphires are sought after for the very high percentage of blue gems and because of the almost total lack of the not so desirable green and parti coloured stones. The Gemstones accumulate on the processing plants jig beds and the gemstone concentrate is cleaned off from time to time, and is being stockpiled, to be further upgraded by magnetic separation.

Native Title: There are no Native Title issues (current or pending) relating to the site. Leases: Mining Leases 7M/2001, 14M/1998 and 18M/2009 are 100% owned by Creekco P/L. The leases have been surveyed by registered surveyors “Survey Resources Launceston”. Grid and lease boundaries have been surveyed and permanent bench stations erected throughout the leases. Charts available on request. Mining lease 18M/2009 was formally granted on the 22 August 2013 and will be due for renewal on the 10 Dec 2017.

Mining leases 7M/2001 and 14M/1998 were both renewed on the 23 August 2013 and will be due for renewal on the 10 Dec 2017. All environmental bonds were updated and paid up at this time and the bond currently held by Mineral Resources Tas is $AUD88.000 cash. Environment: Mining leases 7M/2001 and 14M/1998 carry all the necessary work permitting etc, “Land Use Permit” No 122/07P was issued for the leases on 5th December 2007. A full independent threatened species survey was conducted of the tenements prior to the granting of the “Land use permit” detailed report is available upon request. Granted mining lease 18M/2009 does require a land use permit to be issued, but the lease has had flora/fauna surveys done and significant consulting work done by SEMF to enable the granting of the mining lease, and so the issue of a land use permit is a straight forward matter.

Bonds: Current environmental rehabilitation bond held by Mineral Resources Tasmania is $AUD88,000 cash. The simple cut and fill mining method allows for filling of the worked out blocks synchronous with mining and allows for a greatly reduced on ground footprint, reduced environmental rehabilitation requirements and therefore bonds. There are no chemicals used in the mining or processing on site.

Labour Requirements: The operation requires 2 to 3 full time operators, depending on
desired throughput capacity.