EXPLORATION LICENCE 50/2008 Mt. Selina Project Western Tasmania FIFTH ANNUAL PROGRESS REPORT for the period 17 March 2014 – 16 March 2015 Yunnan Tin Australia TDK Resources Pty Ltd Authors: Joe Xie, Laurie Veska Supervisor: Mr. Xiang Tong Signed: Date: March 2015 Distribution: Yunnan Tin Australia TDK Resources Pty Ltd Yunnan Tin Group, Yunnan, China Mineral Resources Tasmania Abstract The primary exploration target within the licence is Cambrian Volcanic-Hosted Massive Sulphide (VHMS), also known as Volcanogenic Massive Sulphide (VMS). Located immediately to the west of the tenement area is the Henty gold mine (2.83Mt @ 12.5 g/t Au), which has been interpreted as being related to Cambrian VHMS mineralisation and possible Cambrian granite-related mineralisation. Yunnan Tin Australia commissioned Geotech Airborne Pty Ltd to undertake a regional VTEM helicopter-borne geophysical survey over their tenements located on the west coast of Tasmania during late 2012/2013. Based on the geophysical results obtained, a number of VTEM anomalous zones were identified across the two blocks, one anomaly was selected in each block for drill testing. Two helicopter-supported diamond drill holes were drilled in late 2014 for a total of 1004 metres. No mineralisation of note was intersected, and the source of the VTEM anomalies has not been fully explained. Exploration expenditure for the two drill holes during the reporting period totalled $480,000. EL50/2008 Fifth Annual Report to 16/03/2015 Contents 1.Introduction................................................................................................................4 2.Geology and Mineralisation.......................................................................................7 2.1. Regional Geology.................................................................................................7 2.1.1.Mount Read Volcanics........................................................................................8 2.1.2.Owen Group........................................................................................................8 3.Exploration Completed..............................................................................................9 4.Work Plan for Year 6................................................................................................13 5.Environment.............................................................................................................14 6.Expenditure Statement............................................................................................15 7.References...............................................................................................................16 Tables Table 1: Collar details (GDA94), Lake Plimsoll and Lake Burbury areas.....................9 Table 2: Annual exploration expenditure EL50/2008 Mt Selina..................................15 Figures Figure 1: Location of EL50/2008 and MIRLOCH deposits shown in red.....................4 Figure 2: EL50/2008 location showing topography......................................................5 Figure 3: EL50/2008 displaying land tenure.................................................................6 Figure 4: Regional geology, EL50/2008.......................................................................7 Figure 5: Collar details hole YT01 – near Lake Burbury..............................................9 Figure 6: Collar details hole YT02..............................................................................10 Figure 7: Helicopter airlift of drill rig and fuel - YT01..................................................10 Figure 8: Rig mobilisation YT01..................................................................................11 Figure 9: Rig mobilisation YT02..................................................................................11 Figure 10: Drill hole YT02 in progress, November 2014............................................12 Appendices (Supplied on digital media) EL502008_201503_01_FifthAnnualReport_to_16_03_2015.pdf EL502008_201503_02_Appendix1_Drill_Sections.pdf Drill Core photographs (YT01 and YT02). EL50/2008 Fifth Annual Report to 16/03/2015 1. Introduction EL50/2008, Mt. Selina, is located between Rosebery and Queenstown, on the West Coast of Tasmania. Figure 1: Location of EL50/2008 and MIRLOCH deposits shown in red The tenement is located on the Selina, Tyndall and Gormanston 1:25,000 map sheets, with a combined area of 55 sq. km comprising two blocks as shown in Figure 1. Access to the area is via 4WD track off Anthony Rd, opposite the Henty Gold Mine turn-off. The track provides access to an area close to Mt. Selina in the northern part of the tenement, and to the historical Dora Lake workings to the south. Other areas of the tenement require foot access and/or helicopter support. EL50/2008 Fifth Annual Report to 16/03/2015 Most of the tenement area is covered by the Tyndall Range Regional Reserve and the Lake Beatrice Conservations areas. The topography in the area is characterised by rugged, steep wooded slopes, deep valleys and grassed flat plateaus and broad plains. Pleistocene glacial deposit fill low valley areas. A number of lakes and closed catchment basins are located throughout the tenement area. Figure 2: EL50/2008 location showing topography EL50/2008 Fifth Annual Report to 16/03/2015 Figure 3: EL50/2008 displaying land tenure EL50/2008 Fifth Annual Report to 16/03/2015 2. Geology and Mineralisation 2.1. Regional Geology The basement rock in the region is Proterozoic Tyennan Metamorphics, which outcrops extensively to the east of the tenement area. The Mt. Read Volcanics (“MRV”) unconformably overlie Tyennan Metamorphics. The MRV hosts a number of significant poly-metallic Volcanic Hosted Massive Sulphide (“VHMS”) deposits in the region. Owen Group sediments overlie these volcaniclastic units in the central and western portion of the licence areas. Cambrian Murchison Granite lies to the north of the tenement area, and has been also identified within the tenement area as smaller intrusive bodies. Figure 4: Regional geology, EL50/2008 EL50/2008 Fifth Annual Report to 16/03/2015 2.1.1. Mount Read Volcanics The deposition of Mount Read Volcanics, from the early Middle Cambrian to early Late Cambrian, coincided with the most important metallogenic event in Tasmania (Seymour, et al. 2007). The MRV hosts Tasmania’s world-class VHMS deposits, including Rosebery, Mt Lyell, Hellyer and Que River. The main mineralised belt of the MRV between Mt Darwin and Hellyer is the Central Volcanic Complex (CVC), which is dominated by proximal volcanic rocks, andesite and rare basalt deposited in a marine environment. This MRV is flanked to the west by the coeval Western Volcano-Sedimentary sequence (WVS)Convert 2 of lithicwacke turbidite, mudstone, siltstone, shale and subordinate intrusive rock and lavas. A small area in the northern-most licence area is mapped as belonging to WVS (Bates, 2008). These units are overlain by the Tyndall Group, a unit of quartz-bearing volcaniclastic sandstone and conglomerate of mixed felsic and andesitic province. Considerable erosion took place locally before deposition of the Tyndall Group. Mineralisation was concentrated within a short time interval during the late Middle Cambrian at the top of the CVC and in places in the immediately overlying Tyndall Group rocks (Seymour, et al. 2007). 2.1.2. Owen Group The Owen Group is Cambrian to Ordovician in age and sits unconformably on the MRV. This unit typically includes large volumes of coarse siliciclastic conglomerates composed dominantly of meta-quartzite clasts derived from the Tyennan Proterozoic sequence. EL50/2008 Fifth Annual Report to 16/03/2015 3. Exploration Completed Two diamond drill holes were completed within the licence during late 2014. No significant base metal or gold mineralisation was intersected. Hole Id Easting Northing RL Total Depth Azimuth (Mag) Dip YT01 386797 5361643 586 350.7 077 -50 YT02 387918 5345995 245 653 077 -50 Table 1: Collar details (GDA94), Lake Plimsoll and Lake Burbury areas. Drill hole YT01 intersected a series of volcaniclastics, schists and conglomerate/breccias, however these intersected lithologies failed to adequately explain the source of the targeted EM anomaly. Drill hole YT02 was collared in a green and purple chloritic and hematitic volcaniclastic lithology, and intersected a zone of disseminated magnetite in chloritic schist (which may partially explain some of the geophysical response) and then was halted in what was interpreted as Precambrian basement rocks at a depth of 653m. Only selected samples of hole YT02 was submitted for assaying by multi-element ICP-AES, with the main aim of testing for the presence of gold. No anomalous gold was detected in the samples. Complete digital core photo records of both holes have been included with this report. Figure 5: Collar details hole YT01 – near Lake Burbury EL50/2008 Fifth Annual Report to 16/03/2015 Figure 6: Collar details hole YT02 Figure 7: Helicopter airlift of drill rig and fuel - YT01 EL50/2008 Fifth Annual Report to 16/03/2015 Figure 8: Rig mobilisation YT01 Figure 9: Rig mobilisation YT02 EL50/2008 Fifth Annual Report to 16/03/2015 Figure 10: Drill hole YT02 in progress, November 2014 EL50/2008 Fifth Annual Report to 16/03/2015 4. Work Plan for Year 6 The exploration work for Year 6 will be focused on interpretation and general consideration of follow-up drilling on the licence. 13 5. Environment Yunnan Tin Australia TDK Resource Pty