Speciality Metals International Limited Annual Report 2019

Page | 7 SAMPLE DRILLHOLE INTERVAL LITHOLOGY ANALYTICALSUMMARY Au As Sb Mo W ppm ppm ppm ppm ppm CM1801 ICK001 141.7 -145 Carbonaceous intervals 0.47 782 9320 1 16 CM1802 155.1 -155.3 Highlyaltereddyke 0.1 94 50 1 18 CM1803 157.75 -160 Unaltereddyke <0.01 6 22 1 3 CM1804 163 -163.2 Unaltereddyke+alt band 0.01 80 108 1 7 CM1805 169.35 Stibniteveining 2.91 5760 >10000 3 25 CM1806 ICK002 85.6 -85.7 Listwanite+ fuchsite 0.05 137 172 0 2 CM1807 137.5 -139 Carbonaceousbroken zone 4.02 3090 65 1 25 CM1808 139 -140.5 Carbonaceousbroken zone 2.66 2270 153 163 2180 CM1809 ICK003 113.6 -115 Carbonaceous+dykebands 1.84 2690 93 2 47 CM1810 115 -117 Mixed carb /grey dyke zone 1.17 2070 76 1 32 REVIEW OF OPERATIONS Speciality Metals has recently undertaken a comprehensive review of the Magnesite Hill geological, geochemical and geophysical data and completed preliminary re-sampling of selected drill core from the 2010 Icon program to better define the lithologies hosting the gold mineralisation and the suite of associated pathfinder elements to further develop the exploration model. The re-sampling indicates that the highest gold grades are associated with intensely sheared carbonaceous fault gouge intruded by strongly altered quartz monzodiorite dykes. This zone separates the variably altered ultramafic rocks from the sedimentary sequence to the west and represents the local expression of the crustal-scale Peel Fault structure. Gold is spatially associated with the dykes which intrude both the graphitic (fault) material and listwanite altered ultramafics but it is unclear if all mineralisation / alteration is genetically related to the intrusive event. The preliminary multi-element sampling confirms an elevated arsenic-antimony signature with some anomalous W + Mo associated with gold within the fault zone. The fact that the gold mineralisation is strongest in carbonaceous fault gouge adjacent to altered late intrusive dykes has now focused future exploration on sampling this zone with the aim of determining potential resources. Away from the Fault, in the zone between the two belts of serpentinite where most historical workings occur, and where most previous exploration was focused, there is a significant body of geochemical data from extensive surface sampling of rock chips, soils and waste dumps. Interval assaying 8m at 1.27g/t Au from 140m in hole ICK001, showing carbonaceous gouge (dark grey) intruded by altered quartz monzodiorite dykes (light grey). It is now thought that most of the gold in this interval is in the carbonaceous gouge and this will be confirmed by further sampling. Analysis of this data indicates that in this zone, there appears to be no statistically significant relationship between gold values and the pathfinder elements and that gold is the only reliable geochemical indicator of mineralisation. The Company plans to complete extensions and infilling of the existing soil geochemical coverage to delineate targets both within the major fault zone and related splay structures for follow-up drilling. Interval assaying 3.69g/t Au from 138.5m to 140.65m in the dark grey/black carbonaceous fault gouge adjacent to altered monzodiorite in Icon drill hole ICK 002. Image showing IP chargeability at 100m below surface in part of Crow Mountain EL6648. The yellow (low) to dark red (high) represents chargeability implied to be due to the presence of conducting minerals in the subsurface. Sulphide mineral grains disseminated in listwanite may be causing the chargeability response.