Speciality Metals International Limited Annual Report 2019

Page | 14 MINERAL RESOURCES AND ORE RESERVES STATEMENT The Exploration Targets at Mt Carbine are summarised in Table 1 below: Mineralisation system Exploration target tonnes Exploration target grades Main sheeted quartz vein system – wolframite dominated 12Mt-16Mt 0.08% WO 3 to 0.16% WO 3 Iron Duke prospect – scheelite dominated 3.5Mt-6.5Mt 0.13% WO 3 to 0.59% WO 3 Hole No. From (m) To (m) Interval (m) %WO 3 (XRF analysis) CB18 163 198 35 0.299% CB51 130.25 146.5 8.73 0.57% CB52 94.5 112.5 18 0.18% CB53 160.5 172.5 12 0.49% CB54 162.5 169.35 6.85 0.59% CB66 113.3 127.62 14.32 0.13% Table 2. Drill intersections in the Iron Duke prospect adjacent to the open pit at Mt Carbine. GOVERNANCE AND INTERNAL CONTROLS The Company has followed the practice of obtaining independent, geostatistically based estimates of resources, which themselves have been independently audited. These estimates have been qualified in-house where geometallurgical research, economic modelling involving mine and processing studies and/or reconciliations of historical mine data justify modification. The prime concern in this deposit is the extreme nugget character of the mineralisation and in this respect considerable confidence is placed on existing resource estimates that they are (a) conservative with respect to grade estimation, and (b) that the previous mine operation and a nearly complete set of records of this operation document what is in effect a 10Mt bulk sample of the ore body. COMPETENT PERSON STATEMENT (a) The above Mineral Resources and Ore Reserves Statement is based on, and fairly represents, information and supporting documentation prepared by competent persons; and (b) The information in this document relating to Exploration Targets and Mineral Resources is based on information compiled by Dr Andrew White, who is a Fellow of the Australian Institute of Geoscientists and principal consultant for Andrew White & Associates. Dr White has sufficient experience relevant to the style of mineralisation, mining and processing the type of deposit under consideration to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the JORC code). Dr White consents to the inclusion of matters based on his information in the form and context in which it appears in the Annual Report. APPENDIX 1. TABLE 1, JORC CODE 2012 Section 1. Low Grade Stockpile Sampling Techniques and Data Sampling techniques 1. Bulk sampling by means of 8 costeans dug with an excavator around the perimeter of the stockpile, costeans ranging up to 10m deep and 50m long. 2. Grab sampling at 80 locations (samples approximately 20kg each of minus 100mm material) for mineralogical and chemical characterisation of mineralised rock for environmental permitting purposes. Drilling techniques N/A Drill sample recovery N/A Logging N/A