Competent Peron’s Report

In September 2016, the Company commissioned MSA Group to prepare an independent competent person’s report on the Gakara Project. Despite considerable historic mining activities, the Gakara Project is considered by MSA Group to be an Exploration Target, as defined in the JORC Code.

An Exploration Target is defined as a statement of the exploration potential of a mineral deposit in a defined geological setting for which there has been insufficient exploration to estimate a Mineral Resource. MSA Group concluded “that the characteristics of the REE veins within the Gakara Project with respect to their width, spatial continuity and compositional variability cannot be easily quantified to the level of confidence required for the reporting of a Mineral Resource”. Accordingly, MSA Group has calculated an Exploration Target of between 20,000 and 80,000 tonnes of mineralised material grading 47-67% total REO. The potential tonnage and grade is conceptual in nature as there is insufficient exploration data to define a Mineral Resource and it is uncertain if future exploration will result in the Exploration Target being reported as a Mineral Resource. MSA Group notes that there is scope for further exploration in the Gakara Project area which may result in additional potential being identified.

Table for Rainbow