Speciality Metals International Limited Annual Report 2019

Page | 6 DRILL HOLE From (m) To (m) Interval (m) Au g/t ICK001 76.3 78.45 2.15 1.85 117.4 172 54.6 0.45 Including: 140 148 8 1.27 ICK002 113.4 119.4 6 0.67 137 151 14 1.00 Including 139 141 2 3.69 ICK003 113.6 117 3.4 1.23 REVIEW OF OPERATIONS GOLD C ROW M OUNTAIN – EL6648 Target: Structurally controlled bulk tonnage and related vein gold systems As announced in the September 2019 Quarterly Activities Report the Crow Mountain tenement covers part of the Great Serpentine Belt in the western New England province of north eastern NSW. Shallow marine sediments of late Devonian age on the western side of the tenement are separated from much older deep marine sediments and intrusive rocks on the eastern side of the tenement by a major north-south trending structure, the Peel Fault. The Fault is well known for the belt of serpentinite, formed by alteration of pre-existing ultra-mafic intrusives exposed for several hundred kilometres along the Fault. In the Crow Mountain tenement there is many historical shallow gold workings dating from the 1860’s. Records indicate that most of the historical workings were dug to extract gold from small, discontinuous quartz veins. Recent mapping by Speciality Metals’ precursor companies showed that the serpentinite along the Peel Fault bifurcates in the Crow Mountain tenement and the majority of workings are between the two belts of serpentinite. Several models of potential foci for gold mineralisation have been proposed for the Crow Mountain occurrences, but until now no satisfactory explanation or prediction of where economic gold might occur has been achieved. The Company has been reviewing all data and collecting some new data in order to derive a cogent model for the gold mineralisation in the tenement. Speciality Metals’ predecessor Icon Resources Ltd carried out geophysical and geochemical surveys concentrating mostly in the area of historical workings. In addition to the geochemical and geophysical data, surface mapping had shown that extensive hydrothermal alteration of the serpentinite to form a distinctive rock called listwanite had taken place along the Fault. The close resemblance of the features defining the geophysics, geochemistry and alteration in the Crow Mountain tenement to those of the Californian Motherlode, where gold is closely associated with listwanite alteration, led Icon Resources to drill three diamond core holes in mid-2010 at Magnesite Hill. The holes were sited to test for gold mineralisation associated with a large IP chargeability anomaly coincident with surface geochemically anomalous gold, arsenic and antimony found in soil sampling, and a belt of listwanite. Magnesite Hill Gold Prospect – Icon 2010 Drill Hole Locations The holes were collared in serpentinite on the eastern side of the Peel Fault and drilled through the fault into Devonian sediments on the western side of the fault. Each hole passed through zones of intense listwanite alteration, but also intersected intensely altered quartz monzodiorite dykes, mostly intruded into the Peel Fault zone itself. The Peel Fault was shown to be a zone up to 20m true width of intensely sheared, carbonaceous fault gouge, containing bleached fragments of the rocks adjacent to the fault. Highly anomalous gold was intersected in each hole, with the best gold grades being found in metasediments in ICK002 (14m at 1.00g/t from 137m, including 2m at 3.69g/t from 139m), and in the altered dykes in ICK001(8m at 1.27g/t from 140m including 5m at 1.6g/t from 140m). Magnesite Hill anomalous gold intercepts (extracted from Icon Resources June 2010 Quarterly Report) Magnesite Hill Gold Prospect – Drilling targeting gold soil geochemical anomalies