DAVENPORT RESOURCES LIMITED TECHNICAL REPORT ON THE MINERAL RESOURCES OF THE KÜLLSTEDT EXPLORATION LICENCE SOUTH HARZ POTASH PROJECT THURINGIA, GERMANY Report Date: 15th March 2019 Effective Date: 13th February 2019 Prepared By Micon International Co Limited Suite 10 Keswick Hall, Norwich, NR4 6TJ, United Kingdom Davenport Resources Ltd Table of Contents 1.0 EXECUTIVE SUMMARY ..................................................................... 1 1.1 INTRODUCTION ................................................................................. 1 1.2 PROPERTY DESCRIPTION AND LOCATION ................................. 2 1.3 LICENCES AND PERMITS ................................................................. 3 1.4 INFRASTRUCTURE ............................................................................ 3 1.5 GEOLOGY AND MINERALISATION ............................................... 4 1.6 EXPLORATION ................................................................................... 4 1.7 MINERAL RESOURCE ESTIMATION .............................................. 6 2.0 INTRODUCTION.................................................................................... 2 2.1 PURPOSE AND SCOPE OF REPORT ................................................ 2 2.2 CAPABILITY AND INDEPENDENCE............................................... 2 2.3 DISCLAIMER ....................................................................................... 3 3.0 GENERAL INFORMATION ................................................................. 5 3.1 KALI-INSTRUKTION AND THE GKZ SYSTEM ............................. 5 3.2 MICON APPROACH TO RESOURCE/RESERVE CLASSIFICATION ............................................................................... 7 3.2.1 Mineral Resources ......................................................................... 7 4.0 PROPERTY DESCRIPTION AND LOCATION ................................ 9 4.1 PROPERTY DESCRIPTION ................................................................ 9 4.2 PROPERTY LOCATION ...................................................................... 9 4.3 LICENCES ............................................................................................ 9 4.3.1 Exploration Licences ................................................................... 12 4.3.2 Surface Rights .............................................................................. 12 4.4 ROYALTIES ....................................................................................... 12 4.5 ENVIRONMENTAL LIABILITIES, LEGISLATIVE AND PERMITTING REQUIREMENTS ..................................................... 12 4.6 MATERIAL AGREEMENTS ............................................................. 13 4.7 OTHER SIGNIFICANT FACTORS AND RISKS ............................. 13 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ................................. 14 5.1 PROPERTY ACCESS ......................................................................... 14 5.2 CLIMATE ............................................................................................ 14 5.3 LOCAL RESOURCES AND INFRASTRUCTURE .......................... 14 5.4 PHYSIOGRAPHY ............................................................................... 15 5.5 FLORA AND FAUNA ........................................................................ 15 6.0 REGIONAL GEOLOGY ...................................................................... 16 6.1 DEPOSIT TYPES ................................................................................ 16 6.2 REGIONAL GEOLOGY AND STRUCTURAL SETTING .............. 16 6.3 LOCAL GEOLOGY ............................................................................ 17 6.4 MINERALISATION ........................................................................... 22 6.5 ECONOMIC MINERALS ................................................................... 23 6.5.1 Sylvinite – ‘Hartsalz’ ................................................................... 23 Küllstedt Project, March 2019 i Davenport Resources Ltd 6.5.2 Carnallitite.................................................................................... 24 6.5.3 Rock-Salt...................................................................................... 25 7.0 HISTORICAL EXPLORATION ......................................................... 26 7.1 HISTORY OF THE SOUTH HARZ POTASH DISTRICT ............... 26 7.2 HISTORIC OWNERSHIP ................................................................... 27 7.3 SOURCE DATA .................................................................................. 28 7.4 EXPLORATION ................................................................................. 29 7.5 DRILLING ........................................................................................... 39 7.6 LOGGING ........................................................................................... 39 7.7 SAMPLE PREPARATION AND ANALYSIS ................................... 40 7.7.1 Sampling ...................................................................................... 40 7.7.2 Analysis Procedures ..................................................................... 40 7.8 HISTORICAL MINERAL RESOURCE ESTIMATES.................. 4142 8.0 DATA VERIFICATION ................................................................... 4344 9.0 MINERAL PROCESSING METALLURGY AND TESTING ..... 4445 10.0 MINERAL RESOURCE ESTIMATE ............................................. 4546 10.1 INTRODUCTION ........................................................................... 4546 10.2 GEOLOGICAL MODELLING AND INTERPRETATION .......... 4546 10.3 MINERAL RESOURCES ............................................................... 5152 11.0 MINING METHODS ........................................................................ 5759 12.0 CONCLUSIONS AND RECOMMENDATIONS ........................... 5860 13.0 DATE AND SIGNATURE PAGE .................................................... 6062 14.0 REFERENCES ................................................................................... 6163 15.0 CERTIFICATE .................................................................................. 6264 16.0 GLOSSARY AND ABBREVIATIONS ........................................... 6365 16.1 GLOSSARY .................................................................................... 6365 16.2 ABBREVIATIONS ......................................................................... 6668 17.0 APPENDIX 1 ...................................................................................... 6870 Küllstedt Project, March 2019 ii Davenport Resources Ltd List of Tables Table 1.1: Historical Resources for the Küllstedt Project (Kästner et al., 1980) .......... 6 Table 1.2: Exploration Target Mineral Resource Estimate for the Küllstedt Project (Ercosplan, 2015) ................................................................................. 7 Table 1.3: Inferred Mineral Resource Estimate for the Küllstedt Project (Micon, 13th February 2019) ..................................................................................... 1 Table 4.1: Küllstedt Exploration Licence ............................................................... 1211 Table 6.1: Zechstein Series Geology (after Ercosplan, Jan 2018) .............................. 19 Table 6.2: Evaporite Rock Types within the Küllstedt Project .................................. 22 Table 7.1 Historically Significant South Harz Potash District Mines ........................ 26 Table 7.2: Küllstedt Drill hole Database Summary .................................................... 30 Table 7.3: Exploration Drill Holes Data within the Küllstedt .................................... 30 Table 7.4: Historical Resources for Küllstedt ............................................................. 42 Table 7.5: Exploration Target Mineral Resource Estimate for the Küllstedt Exploration Licence (Ercosplan, 2015) ......................................... 4243 Table 10.1: Average Seam Thickness Per Fault Block........................................... 5152 Table 10.2: Küllstedt Mineral Resources as at 13th February 2019 ........................ 5658 Küllstedt Project, March 2019 iii Davenport Resources Ltd List of Figures Figure 1.1: Location Map of the Küllstedt Exploration Licence .................................. 2 Figure 3.1: Comparison of GKZ and JORC Code Resource/Reserve Classification ... 6 Figure 3.2: Exploration Results, Mineral Resources and Ore Reserves as Defined by the JORC Code .................................................................................... 7 Figure 4.1: Regional Location Map of the South Harz Potash Project ....................... 10 Figure 4.2: Location Map of the Davenport Mining and Exploration Licence Areas 10 Figure 6.1: Thuringian Basin Geology (Frank, 2011) ................................................ 17 Figure 6.2: Geological Map of the Küllstedt Project .................................................. 20 Figure 6.3: Interpreted fault blocks of the Küllstedt Project ...................................... 21 Figure 6.4: 3D View of Fault Blocks on the Küllstedt Project ................................... 21 Figure 6.5: Kieserite content within the Hartsalz layer of the Küllstedt Project ........ 24 Figure 7.1: Location of historical shafts on Küllstedt................................................. 27 Figure 7.2: Drill Hole Kal Eigenrode 3/1977 Graphical Log ....................................