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METALLICA MINERALS LIMITED ABN 45 076 696 092 GPO Box 122, Brisbane QLD 4001 Tel: +61-7 32493000

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METALLICA MINERALS LIMITED ABN 45 076 696 092 GPO Box 122, Brisbane QLD 4001 Tel: +61-7 32493000 METALLICA MINERALS LIMITED ABN 45 076 696 092 GPO Box 122, Brisbane QLD 4001 Tel: +61-7 32493000 “KOKOMO” EPM 10699 FINAL REPORT HELD BY: NORNICO PTY LTD MANAGER: METALLICA MINERALS LIMITED AUTHOR: MICHAEL TYNDALL PROJECT: KOKOMO COMMODITIES: NICKEL, COBALT, SCANDIUM MAP SHEETS: 1:250,000, EINASLEIGH (SE 55-9) 1:100,000, VALLEY OF LAGOONS (7960) DATE: November 2013 DISTRIBUTION: DEPARTMENT OF NATURAL RESOURCES AND MINES (DNRM) Final Report for EPM 10699 – Kokomo 1 Table of Contents 1.0 Summary ..................................................................................................................... 6 2.0 Introduction ................................................................................................................. 9 2.1 Location, Access and Infrastructure ........................................................................... 9 2.2 Climate, Vegetation and Topography ....................................................................... 12 2.3 Relevant Landowner Contacts .................................................................................. 12 2.4 Relevant Maps .......................................................................................................... 12 2.5 Tenure ...................................................................................................................... 13 2.6 Joint Venture Agreements......................................................................................... 17 2.7 Royalties Payable ...................................................................................................... 17 2.8 NORNICO – Native Title Influences ....................................................................... 17 3.0 Tenement Geology .................................................................................................... 18 3.1 Mineralisation – Nickel and Cobalt .......................................................................... 20 3.2 Mineralisation – Scandium ....................................................................................... 20 4.0 Previous Exploration ................................................................................................. 20 4.1 Exploration by Metallica during the 2003 to 2004 period ........................................ 22 4.1.3 Drilling ............................................................................................................ 22 4.1.2 Orientation Programme ................................................................................... 23 4.1.3 Soil Sampling Programme .............................................................................. 23 4.1.4 Scoping Study ................................................................................................. 25 4.2 Exploration by Metallica during the 2004 to 2005 period ........................................ 26 4.3 Exploration by Metallica during the 2005 to 2006 period ........................................ 29 4.4 Exploration by Metallica during the 2006 to 2007 period ........................................ 29 4.4.1 Drilling ............................................................................................................ 29 4.4.2 Assay Results .................................................................................................. 35 4.5 Exploration by Metallica during the 2007 to 2008 period ........................................ 35 4.5.1 Assay Results .................................................................................................. 37 4.6 Exploration by Metallica during the 2008 to 2009 period ........................................ 41 4.7 Exploration by Metallica during the 2009 to 2010 period ........................................ 43 4.7.1 Diamond Drilling ............................................................................................ 43 4.7.2 RC Drilling Results ......................................................................................... 44 4.7.3 Mineral Resource Estimate ............................................................................. 45 4.7.4 Metallurgical Test Work ................................................................................. 48 4.7.5 Kokomo Dry and Wet Season Environmental Surveys .................................. 48 4.7.6 Mining lease Application ................................................................................ 48 4.7.7 Black Dingo Drilling – Gold Prospect ............................................................ 50 4.8 Exploration by Metallica during the 2010 to 2011 period ........................................ 51 4.9 Exploration by Metallica during the 2011 to 2012 period ........................................ 51 4.9.1 Mineral Resource Re-tabulation ..................................................................... 52 Final Report for EPM 10699 – Kokomo 2 4.9.2 Metallurgical Test Work ................................................................................. 53 4.9.3 Low Grade Ore and Waste Stockpile Environmental Test Work ................... 55 4.9.4 Dry and Wet Season Environmental Surveys ................................................. 56 4.10 Exploration by Metallica during the 2012 to 2013 period ........................................ 57 5.0 References ................................................................................................................. 58 Final Report for EPM 10699 – Kokomo 3 Table of Figures Figure 1 Tenement and Locality Map ......................................................................... 8 Figure 2 SCONI Location Map ................................................................................... 11 Figure 3 EPM 14070 Tenement Boundary and Topography ................................... 14 Figure 4 EPM 14070 Tenement Outline and Sub-blocks ......................................... 16 Figure 5 Regional Geology Map and Latest Tenement Boundaries ........................ 19 Figure 6 Kokomo Geology Map and Soil Geochemistry .......................................... 24 Figure 7 Kokomo Drill Holes and Scandium Intercepts (Prior June 2005) ........... 28 Figure 8 Kokomo Drill Hole Locations ...................................................................... 34 Figure 9 Kokomo Drilling and extent of Mineralised Areas .................................... 39 Figure 10 Kokomo Cross-Sections ................................................................................ 40 Figure 11 Kokomo Inaugural Mineral Resource Map ............................................... 42 Figure 12 Kokomo Drill Hole Locations and High Grade Zones .............................. 46 Figure 13 Cross-Section through the Mona Prospect ................................................. 47 Figure 14 MLA 10342 Location and boundary ........................................................... 49 Figure 15 Sample Sites for potential Ore Variability Metallurgical Test Work ...... 54 Tables Table 1 Schedule of Tenements (NORNICO Pty Ltd - Holder) ..................................... 15 Table 2 Kokomo EPM 10699 – latest list of Sub-Blocks ................................................ 15 Table 3 Black Dingo Drilling Results ............................................................................. 22 Table 4 Initial High Grade Scandium Intercepts ............................................................. 26 Table 5 Significant Assay Results – Kokomo drilling (May 2005) ................................ 27 Table 6: Laterite Intercepts – KKDDH-003 and 004. ...................................................... 35 Table 7: Kokomo Drilling Campaigns up until 2008 ....................................................... 36 Table 8: Inaugural Kokomo Mineral Resources ............................................................... 41 Table 9: 2009 Diamond Drill Hole Details ....................................................................... 44 Table 10: Kokomo 2010 Mineral Resource Estimate (0.7% NiEq1 COG) ..................... 45 Table 11: Kokomo Scandium Resource (using a 70ppm Sc COG) ................................ 47 Table 12: Black Dingo Drill Parameters ......................................................................... 50 Table 13: Black Dingo Significant Intercepts ................................................................. 51 Table 14: Kokomo 2012 Resource (0.70 NiEq COG) .................................................... 53 Table 15: Samples for Metallurgical Test Work on potential Ore Variability ............... 54 Plates Plate 1 Plate 2 Final Report for EPM 10699 – Kokomo 4 Note: This report complies with the MRA reporting regulations as prescribed in sections 13B, 13C or 13D of the Mineral Resources Regulation 1989. The exploration work completed on this tenement complies with the Work Program in the tenure document or variations have been lodged and approved accordingly. Final Report for EPM 10699 – Kokomo 5 1.0 Summary Since 1997, Metallica Minerals Limited (Metallica), through NORNICO Pty Ltd and Greenvale Operations Pty Ltd, acquired several projects with identified nickel-cobalt resources and areas which were thought to be prospective for nickel laterite mineralisation between Greenvale and Mt Garnet in North Queensland. All these tenements were collectively referred to as the NORNICO (North Queensland Nickel Cobalt) Project Area, but since September 2012, known as the SCONI (Scandium, Cobalt, Nickel) Project, which incorporates the following tenements:- 1. EPM 11285 “Bell Creek” 2. ML
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