MOD.L Regulatory News (MOD)

26 April 2019

MOD Resources Limited

Quarterly Report - March 2019

MOD Reports Outstanding T3 Open Pit Economics

· T3 Feasibility Study confirms high-margin open pit mine with outstanding economics

· Strong T3 open pit infill drilling results support the resource model 

· Targeting growth opportunities at T3 Underground and at A4 Dome

· Strengthened balance sheet with successful share placement and entitlements issue

· Received non-binding, indicative proposal for 100% of MOD shares

· MOD continues to advance discussions with potential strategic partners

· Strong, positive indicative support from top-tier, global debt institutions

· MOD received prestigious Craig Oliver Award for all-round excellence

MOD Resources Ltd. (ASX/LSE: MOD) ("MOD" or "the Company") is pleased to release this first quarter report for the period ended 31 March 2019.

MOD's Managing Director, Julian Hanna said, "Just three years since discovery, MOD achieved a significant milestone with completion of the T3 Copper Project Feasibility Study during the quarter. The Feasibility Study confirmed the potential for a high-margin, low capital cost copper mine expected to generate significant cash flows over 11.5 years. We envisage the T3 open pit is the beginning of a much larger opportunity and are now moving towards defining potential additional, near-mine resources within the Expansion Project which could provide the opportunity to increase production through the T3 process plant in the medium-term."

"As we move towards a decision to mine at the T3 open pit mine, we are looking at satellite growth opportunities, initially focussing drilling at the T3 Underground and nearby A4 Dome prospect where previous results have indicated strong potential."

During the quarter, the Company completed the T3 Copper Project Feasibility Study ("T3 Feasibility Study") on time and on budget. The study confirmed the outstanding economics of the T3 Copper Project, expected to become MOD's first mine. The Environmental and Social Impact Assessment ("ESIA") is nearing completion and the Company is targeting application for the Mining Licence in mid-2019.

The Company also progressed the T3 open pit resource infill drilling program, with assays confirming strong copper mineralisation at relatively shallow depths. Drilling to date demonstrates the presence of wide, high-grade vein hosted copper mineralisation within the boundaries of the initial stages of the open pit, validating the accuracy of the resource model while identifying new, near surface copper intercepts which could have a positive impact on early production.

The Company strengthened its balance sheet, raising ~$15.2 million (before costs) following the completion of a share placement and entitlement issue. As announced 21 January 2019, MOD received an unsolicited, non-binding, indicative, conditional proposal from Sandfire Resources NL (ASX: SFR) equivalent to $0.38 per share for 100% of MOD shares, which the Board believes undervalues MOD's assets.

Following a successful listing on the Main Board of the London Stock Exchange in November 2018, the Company is pleased to announce the appointment of BMO, Numis and Tamesis as our UK Corporate Brokers to enhance the reputation of MOD and the T3 Copper Project globally and potentially diversify its shareholder base.

OVERVIEW

During the first quarter of 2019, the Company recorded a Lost Time Injury Frequency Rate ("LTIFR") of 1.36 per million hours worked. These statistics include both contractors and employees.

MOD continued to deliver on its commitments including significantly upgrading the T3 Ore Reserve, completing the T3 Feasibility Study, strengthening the balance sheet and presenting impressive infill results from the T3 infill drilling program.

On 25 March 2019, as announced, the Company significantly increased the T3 open pit Ore Reserve by 61% to 34.4Mt at 1.0% copper and 13.2g/t silver. The Ore Reserve contains 342.7kt (~756mlb) of copper, up 57% and 14.6Moz of silver, up 107% compared to the Pre-Feasibility Study.

On 28 March 2019, the Company released the findings of the T3 Feasibility Study, identifying a copper mine with a planned production rate of approximately 3Mtpa which is expected to produce an annual average of 28kt of copper over the 11.5-year mine life, at an All-In Sustaining Cost ("AISC") of US$1.56/lb copper. The project is expected to generate life of mine revenue of US$2.3 billion and an EBITDA of US$1.1 billion, assuming a long-term copper price of US$3.08/lb.

During the quarter, the Company received feedback on the ESIA for the T3 Copper Project from the Department of Environmental Affairs ("DEA"). The review of the draft ESIA did not reveal any material issues. MOD is in the process of responding to the comments and expects to submit a final ESIA to the DEA in the second quarter. Upon DEA approval the ESIA will be released for public comment with final approval expected mid-2019. Once an approved ESIA is received, MOD expects to apply for the T3 Mining Licence.

Infill drilling of the early stages of production within the T3 open pit continued and to date 40 holes were completed, using up to three diamond drill rigs for approximately 6,500 metres (Table 1).

Table 1: Holes Drilled Within MOD 100% and MOD 70% JV Licenses

During the second quarter, the T3 pit infill drilling program is expected to be completed within the first two stages of the planned open pit to upgrade early production into the higher confidence, JORC compliant Measured Resource category. The Company expects to utilise three diamond drill rigs to complete this program during the second quarter.

Following completion of the T3 pit infill drilling, the Company will resume drilling at the T3 Underground Project to follow-up previous high grade, vein hosted intersections which could support a potential underground development below and down dip from the planned T3 pit. Subsequent to the T3 Underground Project drilling, the Company plans to conduct follow-up drilling within the T3 Expansion Project area, including the very encouraging intersections within the large A4 Dome, 8km west of T3.

In addition, the Company plans to expand its regional exploration drilling campaign to follow-up drilling of very encouraging shallow mineralisation within the T4-T23 area as well as drill highly prospective exploration targets within the T20 Exploration Project area (Figure 1).

Please see image in the full version of the announcement at www.modresources.com.au

Figure 1: Licence plan showing T3 Copper Project, T3 Expansion Project and the T20 Exploration Project

T3 Copper Project - Feasibility Study (100% MOD)

On 28 March 2019 MOD announced the T3 Feasibility Study which includes a proposed six stage open pit mine with an 11.5-year mine life, a 3Mtpa conventional processing plant and all associated infrastructure with a total capital cost of US$182 million with a payback period of 3.7 years. The compelling pre-tax net present value ("NPV") of the project is US$368 million with an Internal Rate of Return of 33%.

The proposed six stage open pit (Figure 2) is based on an ore reserve of 34.4Mt and will utilise conventional equipment to support an average annual mining rate of 3Mtpa of ore with a LOM strip ratio of 5.7:1.

Please see image in the full version of the announcement at www.modresources.com.au

Figure 2: T3 Open Pit Design - Showing 6 Development Stages and current T3 Underground Resource Drill Holes

Pre-strip activities are expected to commence during the first half of 2020 and ore from the first stage of the open pit is targeted to be processed during the first half of 2021. The bulk of waste movement is expected between 2020 and 2024 resulting in a higher strip ratio during these early years. Following this, the strip ratio will reduce to an average of 2:1 and mining costs should follow this general downward trend.

The open pit is located less than 1 kilometre from the process plant and ore will be either directly fed into the primary crusher or directed to a Run of Mine ("ROM") stockpile (Figure 3).

Please see image in the full version of the announcement at www.modresources.com.au

Figure 3: Process Plant Layout

The T3 orebody is comprised of chalcopyrite, bornite and chalcocite sulphides. Ore will be processed through a conventional process plant with an annual throughput of up to 3.2 million tonnes at a head grade of 1.0% copper and 13.2g/t silver. The flow sheet includes a primary crusher / SAG mill / Ball mill comminution circuit to achieve a grind size of P80 180µm, a natural pH rougher flotation circuit, a rougher concentrate re-grind circuit to achieve a grind size of P80 90µm and a cleaner flotation circuit.

Life of mine metallurgical recoveries are 92.9% copper and 88.0% silver, producing a concentrate with grades that peak at 34.7% Cu and 601 g/t Ag, averaging 30.4% Cu and 383 g/t Ag (Figure 4).

Please see image in the full version of the announcement at www.modresources.com.au

Figure 4: Quarterly Forecast Concentrate Production and Cu Concentrate Grade

Average annual production over LOM is expected to be ~28kt of copper and 1.1Moz of silver however for the first seven full years of production (between 2021 and 2028), plant throughput, feed grades and recoveries are expected to be higher than LOM average, supporting copper production averaging over 30ktpa.

All-In Sustaining Costs over the life of mine are highly dependent on mining costs and waste movement. Over the life of mine, average AISC are expected to be in the lowest quartile of the cost curve at $1.56 per pound of copper produced, after silver credits.

This high-margin copper concentrate production will result in an expected total revenue of US$2.3 billion, generating excellent cash flows with EBITDA of US$1.1 billion at a robust margin of 47%.

The Project Execution Schedule defines a 19-month design, construction and commissioning timeframe targeting first concentrate production during the first half of 2021.

T3 Environmental and Social Impact Assessment (ESIA)

At the end of 2018, the Company submitted the draft ESIA to the DEA. Following the submission, members of the ESIA review panel attended site and held discussions with key stakeholders as a part of the project review process. The DEA provided the Company with comments and feedback on the draft ESIA. The feedback and comments received from the DEA in relation to the ESIA did not require material amendments or additions to the ESIA and as such, the Company is compiling a response to the comments and questions raised.

Subject to a favourable public consultation period and a final review, the Company targets receipt of approval of the ESIA mid-2019.

Mining Licence Application

On receipt of the approved ESIA the Company expects to submit an application to the Ministry of Mineral Resources, Green Technology and Energy Security for the T3 Copper Project Mining Licence.

T3 Accommodation Village

Currently, the T3 Accommodation Village located 5km east of Ghanzi on the A3 Highway (Figure 5) includes individual rooms for 40 persons with a substantial kitchen and mess complex and an administration office. However, during construction, mine development and production, a 400-person village is required. Following engagements with the DEA, the Company was advised that the village expansion requires an Environmental Management Plan ("EMP"), rather than a more onerous ESIA. The Company expects to submit this EMP to the DEA during the second quarter of 2019.

Design work for the camp expansion and associated services and infrastructure will be carried out during the EMP approval process. The company is targeting the commencement of construction activities in the third quarter of 2019 with a schedule that aims to accommodate the growing number of personnel through the T3 site pre-works, mining and construction activities and into production.

Please see image in the full version of the announcement at www.modresources.com.au

Figure 5: Stage 1 Accommodation Village near Ghanzi. (Office and Kitchen/Mess complex located to right of picture)

T3 EXPANSION PROJECT

The T3 Copper Project (Figure 6) is centrally located within the T3 Expansion Project (963km2) comprising PL 189/2008, PL 190/2008, PL 074/2017. It includes the T1 (100% MOD), A1 Dome (70% MOD), A4 Dome (70% MOD) and the T3 Underground (100% MOD) Projects. The T3 Expansion Project forms part of a strategy to explore for additional resources within transport distance of the planned T3 Copper Project process plant, to benefit from significant infrastructure being established at T3 and provide the opportunity to add substantial value to the project.

Please see image in the full version of the announcement at www.modresources.com.au

Figure 6: T3 Expansion Project Area showing current priority exploration targets

T3 Open Pit (100% MOD)

On 28 March 2019, the Company announced a significant upgrade to the T3 open pit Ore Reserve, delivering a 61% increase in ore tonnes to 34.4Mt (Table 2). The T3 open pit Ore Reserve increased contained copper by 57% to 342.7kt (~756mlb) Cu while significantly increasing contained silver, up 107% to 14.6Moz Ag, supporting a 11.5-year mine life from a six-stage open pit mine.

Ore Reserves were calculated using US$2.91/lb copper and US$16.81/oz silver.

Table 2: T3 Open Pit Ore Reserve (25 March 2019)

Notes:

1. The Probable Ore Reserve is based on the Indicated category of the Mineral Resource. No Inferred category has been included.

2. No Proven Ore Reserve has been defined.

3. The lowest grade of ore added to the process plant feed was 0.22% Cu.

4. Ore Reserves are calculated based on a copper price of US$2.91/lb and a sliver price of US$16.81/oz.

5. Ore loss and dilution were applied to the Mineral Resource model in a two-step process which resulted in an ore loss of approximately 9% and a diluted tonnage addition of approximately 8%.

6. Metallurgical testwork recoveries were applied in accordance to the recovery algorithms developed from the variability testwork program conducted during the feasibility study

7. Appropriate modifying factors were applied. All Material Assumptions for the T3 Open Pit Ore Reserve are given in Appendix 1.

During the first quarter the Company progressed with the planned 60-hole infill drilling program which is expected to upgrade early production into the higher confidence, JORC compliant Measured Resource category and may result in upgrading part of the current Probable Ore Reserve to the Proved Ore Reserve category.

As announced on 12 March 2019, the Company completed 25 drill holes and received assays for 11 of these holes. At the end of the quarter, a total of 40 holes had been completed, with the infill drilling program expected to be completed during the second quarter, utilising up to three diamond drill rigs.

As expected, assay results indicate the presence of wide, high-grade intersections of vein hosted copper. To date, results from the infill drilling program continue to support and validate the accuracy of the resource model while identifying new, copper intercepts within the early stages of the planned open pit.

Significant intersections from results announced on 12 March 2019 include:

· MO-G-188D with 31.5m at 2.0% Cu, 36g/t Ag from 85.6m including 10m at 4.7% Cu, 98g/t Ag from 105m;

· MO-G-191D with 47m at 0.9% Cu, 7g/t Ag from 89m including 15.3m at 1.6% Cu, 15g/t Ag from 104m;

· MO-G-192D with 13.7m at 1.6% Cu, 6g/t Ag from 52.8m

· MO-G-192D with 33m at 2.0% Cu, 14g/t Ag from 88m including 16m at 3.3% Cu, 20g/t Ag from 99m;

· MO-G-193D with 17.7m at 1.4% Cu, 21g/t Ag from 97.8m including 6.5m at 2.5% Cu, 36g/t Ag from 108.1m;

· MO-G-197D with 22m at 1.1% Cu, 10g/t Ag from 95m

A further revision to the T3 open pit resource will be carried out when all results of the infill drilling program are received.

T3 Underground Project (100% MOD)

The T3 resource remains open along strike and at depth and the previously announced results from drilling has indicated the potential for high-grade vein hosted mineralisation at depth and down-dip from the current planned T3 open pit (Figure 2).

During the second quarter, the Company expects to commence a resource definition drilling program aimed at delineating a potential underground resource which could support the mining of additional ore from a number of underground, high-grade veins to blend or supplement the T3 open pit ore and possibly incrementally increase T3 annual copper production. SUSTAINABILITY

Health and Safety

One of the most significant risks posed to the health and safety of our contractors and employees relates to vehicles and travel. As a result, during the first quarter the Company focused on an awareness campaign to educate and engage employees and contractors on the importance of ensuring drivers adhere to road rules at all times and that all vehicles are well maintained and contain appropriate equipment for driving on bitumen and off-road. The Company expects to provide off-road driver training for staff and contractors during the second quarter of 2019.

During the quarter the fire truck purchased at the end of 2018 was delivered to site and is currently being fitted out to suit local conditions, so it becomes available for use by the Company and the local community (Figure 7). A collaborative fire and emergency response training program with the Ghanzi Fire Brigade is planned during the second quarter.

Please see image in the full version of the announcement at www.modresources.com.au

Figure 7: Tshukudu Fire Truck Mobilised to Site

Environment

During the first quarter, the Company there were no reportable environmental incidents.

Following submission of the ESIA to the DEA in December 2018, the DEA completed a site tour and conducted stakeholder engagement meetings as a part of the review process. Subsequently, the Company received feedback and comments and will consider these and submit a second draft ESIA for review by mid-2019.

Community Relations

Following the employment of a Community Relations Manager within the Tshukudu Metals ("Tshukudu") Ghanzi Office, Tshukudu commenced a review of its strategic engagement and communication plan, identifying improvement opportunities for:

· The timely provision of information to stakeholders;

· Responding to social incidents, complaints and grievances; and

· Effective identification and implementation of social and community initiatives or investments.

During the quarter, Tshukudu renewed the sponsorship of the Kanabo Vulture Conservation program. This sponsorship significantly contributes to the protection of endangered vulture species through the provision of wildlife research while providing education on the importance of environmental conservation to schools in the Ghanzi District.

Additionally, during the quarter Tshukudu participated in the review of the Ghanzi District Development Plan, providing input into socio-economic development plans and participated in key events at local schools and learning centres. MOD also continued to support the Ghanzi Library through the donation of books.

Looking to the second quarter, Tshukudu will continue to develop a formal procedure, outlining the application and approvals process for the Community Social Investment Program, to ensure that any social investment is made following strong stakeholder engagement in order to ensure that any initiative will deliver lasting, positive outcomes.

Awards

On 20 February 2019, the Company was awarded the Craig Oliver Award at the 2019 RIU Explorers Conference in Perth. The Craig Oliver Award is presented each year to an "all-round" small to mid-cap Australian mining company, that has excelled in areas including exploration, corporate activity as well as being recognised as a leader in social and environmental performance throughout the year.

Previous recipients of the Craig Oliver Award have gone on to become some of the most recognisable names in the Australian and global resources sector, including Evolution Mining (ASX:EVN), Independence Group (ASX:IGO), Northern Star (ASX:NST), Metals X (ASX:MLX) and Pilbara Minerals (ASX:PLS). MOD Resources is very proud to have been recognised for its achievements to date with the T3 Copper Project, while continuing to work towards proving up the potential copper-belt scale opportunity of the Kalahari Copper Belt in Botswana (Figure 8).

Please see image in the full version of the announcement at www.modresources.com.au

Figure 8: Craig Oliver Award

On 7 March 2019, MOD Resources Non-Executive Director, Bronwyn Barnes was inducted to the WA Women's Hall of Fame, recognising and celebrating her contribution to the resources sector over 20 years.

Investor Relations

To capitalise on the positive momentum generated with the significant upgrade of the T3 Ore Reserve and the release of the outstanding results of the T3 Copper Project Feasibility Study, the Company embarked on a global investor relations campaign, with executives and senior management meeting with existing and potential investors in Australia, Asia, London, Europe, and North America.

CORPORATE

Cash & Debt Position

At the end of the quarter, the cash balance was $13.8 million. The Company remains debt free.

During the quarter, the Company successfully completed an equity raise of $10 million (before costs) through placement of 33.33 million shares to institutional and sophisticated investors at $0.30 per share. On 25 February 2019, the Company finalised a fully underwritten Entitlement Issue, priced at $0.24 per share offered to existing shareholders at 1 new share per 13 held. The Rights Issue raised $5.1 million (before costs) from approximately 21.4 million shares.

The funds raised from the Placement and Entitlement Issue will be used for;

· Completion of purchase of the farm on which the T3 Copper Project is located;

· Commencement of T3 pre-works and construction of initial infrastructure;

· Infill drilling to upgrade a part of the early stages of T3 production to a JORC compliant Measured Resource;

· Resource drilling and conceptual underground mining studies for the T3 Underground project and A4 Dome;

· Conducting follow-up drilling of initial, shallow copper and silver intersections at the T4 - T23 Dome; and

· Initial shallow drilling of selected targets within extensive T20 soil anomaly.

Corporate Brokers

Subsequent to listing on the Main Board of the London Stock Exchange ("LSE") in November 2018, during the first quarter, MOD appointed three London and European based Corporate Brokers including BMO, Numis and Tamesis.

The number of brokers that provide research on MOD is now eight. The Company believes that the addition of these London and European based brokers will significantly improve the global understanding and recognition of MOD and the excellent investment opportunity that exists in the Kalahari Copper Belt.

Additionally, as announced on 31 October 2018, MOD continues to advance discussions with potential partners to unlock value at the T3 Copper Project and MOD's strategic ~11,700km2 land package, and during the first quarter the Company appointed BMO Capital Markets and Sternship Advisers as Financial Advisers to assist with this ongoing global process.

T3 Copper Project Funding

During the quarter, the Company received a number of Expressions of Interests ("EOI") from global, top-tier debt institutions for the funding of the T3 Copper Project. This follows preliminary due diligence and site visits conducted by several of these institutions. During the second quarter, the Company will approach selected debt providers with a Request for Proposal with the intention of creating a short-list, targeting the finalisation of debt agreements by the end of the third quarter of 2019.

The Company is also engaging with independent technical experts and expects to confirm the appointment of an Independent Technical Engineer and Independent Environmental & Social Consultant in the second quarter.

In addition, the Company and its advisers continue to advance non-debt funding options while simultaneously progressing discussions with a range of other interested parties that can provide debt and/or equity funding. The Company will update the market with any material developments.

Other Developments

During the quarter, the other major copper developer in the Kalahari Copper Belt in Botswana, Khoemacau Copper Mining, announced on 25 February 2019 that it had secured funding of US$565 million, which includes a US$275 million senior debt facility and an advance of US$212 million for 80% of silver production, to develop the large Zone 5 Underground Copper/Silver mine located ~120km northeast from T3.

Sams Creek Gold JV, New Zealand (80% MOD)

Sams Creek is a substantial undeveloped gold project with >1 million-ounce porphyry hosted gold resource (see Appendix 1 - Table 3) which remains open at depth and along strike, supporting significant additional exploration potential. The Company remains focussed on advancing its T3 Copper Project in Botswana and is considering opportunities to divest this non-core project.

- ENDS -

For and on behalf of the Board.

Subscribe at: www.modresources.com.au   

About MOD Resources

MOD Resources Ltd (ASX/LSE: MOD) is a dual listed copper exploration and development company with a dominant land position within the Kalahari Copper Belt in Botswana. The Company is focussed on the 100% MOD owned T3 Copper Project, expected to be a high-margin, low-cost copper mine. In parallel with the development of the T3 Copper Project, MOD continues its exploration program across several priority drill targets and within untested areas of interesting and potentially significant Cu-Zn soil anomalies.

A substantial in-fill drilling program is in progress with the objective to upgrade a portion of T3 Indicated Mineral Resources to the higher confidence Measured Resource category.

The Company is continuing to advance discussions with interested parties in relation to T3 funding opportunities and is targeting to commence development of the T3 Copper Project in the second half of 2019, with a vision of first copper concentrate production in the first half of 2021. In the mid-term MOD will focus on generating value for shareholders.

MOD has a social licence to operate within Botswana as well as within the host community of Ghanzi. MOD will continue to work collaboratively with Government regulators and members of the Ghanzi District community to ensure that any social investments and developments are targeted to create a positive and lasting legacy.

Competent Person's Statement

The information in this news release that relates to Mineral Resource estimates (excluding prior estimates) is based on and fairly represents information and supporting documentation compiled by Dr Matthew Cobb; an employee of CSA Global Pty Ltd. Dr Cobb is a member of both The Australasian Institute of Mining and Metallurgy and Australian Institute of Geoscientists. Dr Cobb has sufficient experience relevant to the style of mineralisation under consideration and to the activity which he is undertaking 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". Dr Cobb consents to the inclusion in this announcement of the matters based on their information in the form and context in which it appears.

The information in this announcement that relates to Geological Data and the T3 Mineral Resource described in this release is reviewed and approved by Mr Bradley Ackroyd, BSc (Hons), Manager Mine Geology for MOD Resources Ltd. Mr Ackroyd is a registered member of the Australian Institute of Geoscientists and has reviewed the technical information in this report. Mr Ackroyd has sufficient experience, which is relevant to the style of mineralisation and type of deposit under consideration and the activity, which it is undertaking 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. Mr Ackroyd consents to the inclusion in this announcement of the matters based on information in the form and context in which it appears.

The information in this announcement that relates to Geological Data and Exploration Results at the Sams Creek Gold Project is based on and fairly represents information compiled by Mr Paul Angus, Project Manager of Sams Creek and a Director of MOD Resources Limited's subsidiary, Sams Creek Gold Limited. Mr Angus is a member of the Australasian Institute of Mining and Metallurgy and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration to qualify as a Competent Person as defined in the December 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (JORC Code). Mr Angus has approved the Statement as a whole and consents to the inclusion in this announcement in the form and context in which it appears.

No New Information

To the extent that this announcement contains references to prior exploration results and Mineral Resource estimates, which have been cross referenced to previous market announcements made by the Company, unless explicitly stated, no new material information is contained. The Company confirms that it is not aware of any new information or data that materially affects the information included in the relevant market announcements and, in the case of estimates of Mineral Resources that all material assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and have not materially changed.

Forward Looking Statements and Disclaimers

This announcement includes forward-looking statements that are only predictions and are subject to risks, uncertainties and assumptions, which are outside the control of MOD. Actual values, results, interpretations or events may be materially different to those expressed or implied in this announcement. Given these uncertainties, recipients are cautioned not to place reliance on forward-looking statements in the announcement as they speak only at the date of issue of this announcement. Subject to any continuing obligations under applicable law and ASX Listing Rules, MOD does not undertake any obligation to update or revise any information or any of the forward-looking statements in this announcement or any changes in events, conditions or circumstances on which any such forward-looking statement is based. This announcement has been prepared by MOD. The document contains background information about MOD current at the date of this announcement. The announcement is in summary form and does not purport to be all inclusive or complete. Recipients should conduct their own investigations and perform their own analysis in order to satisfy themselves as to the accuracy and completeness of the information, statements and opinions contained in this announcement. The announcement is for information purposes only. Neither this announcement nor information contained in it constitutes an offer, invitation, solicitation or recommendation in relation to the purchase or sale of shares in any jurisdiction. The announcement may not be distributed in any jurisdiction except in accordance with legal requirements applicable in such jurisdiction. Recipients should inform themselves of the restrictions that apply to their own jurisdiction as a failure to do so may result in a violation of securities laws in such jurisdiction. This announcement does not constitute investment advice and has been prepared without taking into account the recipient's investment objectives, financial circumstances or particular needs and the opinions and recommendations in this announcement are not intended to represent recommendations of particular investments to particular persons. Recipients should seek professional advice when deciding if an investment is appropriate. All securities transactions involve risks, which include (among others) the risk of adverse or unanticipated market, financial or political developments. To the fullest extent of the law, MOD, its officers, employees, agents and advisers do not make any representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of any information, statements, opinion, estimates, forecasts or other representations contained in this announcement. No responsibility for any errors or omissions from the announcement arising out of negligence or otherwise is accepted.

APPENDIX 1

Table 1: T3 Infill Drilling Results (announced 12 March 2019)

Table 2: T3 Infill Drill Collar Parameters (12 March 2019)

Table 3: Sams Creek Resource Table (9 October 2013)

APPENDIX 2

Schedule of Prospecting Licences

Botswana Copper/Silver Project

Sams Creek Gold Project