Chesser Resources : Returns Further Spectacular High Grade Gold at Surface Including 7.2 Metres at 20.4 g/t Gold

LINE

EASTING

NORTHING

AZIMUTH

LENGTH

Gold ppm

Silver ppm

VEIN

L14

481506

4462040

298

12.20

7.7

4.3

K1

Including

298

1.70

16.6

9.1

K1

L15

481504

4462034

298

3.70

2.6

1.3

K1

L16

481551

4461972

0

3.17

18.7

12.8

K2

L17a

481543

4461970

0

6.20

14.3

21.1

K2

Including

0

0.90

32.4

23.8

K2

L17b

481540

4461963

0

1.8

14.2

9.0

K2

L18

481530

4461970

0

5.70

10.7

8.3

K2

Including

0

2.20

16.8

11.0

K2

L19

481742

4461857

146

4.40

14.2

10.9

K3

Including

146

2.10

18.6

16.4

K3

L20

481733

4461854

146

3.30

19.5

16.1

K3

Including

146

1.70

28.1

20.1

K3

L21

481715

4461838

146

7.20

20.4

17.5

K3

Including

146

5.50

26.1

22.4

K3

L22

481704

4461835

146

4.70

8.0

5.2

K3

L24

481686

4461827

146

3.00

9.1

8.0

K3

Including

146

1.40

17.6

15.3

K3

L25

481677

4461824

146

4.70

12.3

7.3

K3

Including

146

2.90

19.2

10.5

K3

L26

481666

4461815

146

3.50

18.9

20.3

K3

L26

481666

4461815

146

1.90

34.0

33.3

K3

L27

481652

4461807

146

4.95

13.3

15.4

K3

Including

146

2.20

22.2

20.5

K3

L28

481629

4461794

146

10.45

8.0

6.6

K3

L29

481611

4461781

146

5.75

10.9

10.5

K3

Including

146

2.75

17.65

13.3

K3

Company Directors & Management

Company Information

Top Shareholders

Rob Reynolds Chairman

Rick Valenta Managing Director Simon O'Loughlin Non-Executive Director Simon Taylor Non-Executive Director Peter Lester Non-Executive Director Morrice Cordiner Non-Executive Director

Stephen Kelly CFO/Company Secretary Nigel Ricketts Project Director Kestanelik Cem Yuceer Exploration Manager

ABN:

14 118 619 042

Address:

96 Stephens Road

South Brisbane Qld 4101 Australia

Telephone:

+61 7 3844 0613

Contact: info@chesserresources.com.auChesser Website: www.chesserresources.com.au

Management Macquarie MEC Acorn Capital Baker Steel Institutions - 30% Top 40 ≈ 62%

Kestanelik Mineral Resource - August 2013

Grade

Ounces

Tonnes

Au (g/t)

Ag (g/t)

Au Oz

Ag Oz

Indicated

1,609,000

3.53

2.6

183,000

135,000

Inferred

8,584,000

1.89

1.8

521,000

493,000

Total

10,193,000

2.15

1.9

703,400

628,900

Criteria

JORC Code explanation

Commentary

Sampling techniques

 Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools

appropriate to the minerals under investigation, such as

down hole gamma sondes, or

handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling.

 Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used.

 Aspects of the determination of mineralisation that are Material to the Public Report.

 In cases where 'industry standard' work has been done this would be relatively simple.

 The Kestanelik deposit has been sampled by a mixture of diamond and RC drill holes, with a nominal drill spacing ranging from 25m by

25m to 50m by 50m.

 HQ / NQ core is cut in half using a diamond saw (100% of core recovered) and half of the core is submitted for analysis.

 All RC drilling was sampled on 1m intervals.

 Maximum HQ / NQ sample interval is 2.5m & minimum sample interval 0.5m (note: 1m of half HQ will weigh between 3 to 4kg) (0.3% of samples are less than 0.5m).

 Channel samples are taken by making two diamond saw cuts 1m long and approximately 50mm apart, to a depth of approximately 50 -

80mm across the outcrop. Each sample is then collected from between the two saw cuts, using a hammer and cold chisel.

 Zones of mineralisation defined by epithermal veining and brecciation, plus or minus sulphides or iron oxides after sulphides, are sampled separately.

 Based on the gold grain size (<100 micron) the sample size from both the RC and the diamond core are representative (refer to General Preferred Sample Mass Nomogram on p110 in Field Geologists Manual - Third Ed, 1989).

Drilling

techniques

 Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).

 Most diamond drilling has been 63.5mm diameter HQ 'standard tube' core, although some 47.6mm diameter NQ has been drilled. All RC drilling has been completed using a 4.5" or 114.3mm face sampling hammer bit. All diamond holes were drilled from surface, with no RC pre-collars being used.

 Downhole surveys have been taken every 50m down hole.

 Due to the broken nature of the core in the quartz veins / breccias core orientations are ineffective, and therefore no orientations were conducted at Kestanelik.

 IDC was the drilling contractor for the 2011 - 2012 drill program (30,000m) comprising up to four diamond drill rigs and one RC rig and the 2010 RC and diamond drill programs; Spektra was the drilling contractor for the 2013 drill program (15,000m).

 Approximately 217 RC holes and 288 diamond holes have been drilled on the property by Chesser.

Criteria

JORC Code explanation

Commentary

Drill sample

recovery

 Method of recording and assessing core and chip sample recoveries and results assessed.

 Measures taken to maximise sample recovery and ensure representative nature of the samples.

 Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.

 The core is marked up and measured by senior field assistants and geologists. Core recovered (CR) is compared with the metres drilled (MD, recorded by the drillers in their 'run sheets') and a 'core recovery' percentage is calculated; CR/MD x 100 = % recovered.

 The recovery of RC sample is roughly calculated by weighing each bulk sample comparing that with the expected weight of 1m of sample (26.5kg approx.).

 It is possible that some fine gold within clay in oxidised breccia matrix could have been lost during drilling. This could lead to an underestimate of gold. PQ core drilling might be required to determine this.

 For the channel sampling it is difficult to accurately measure recovery, but it is estimated that >90% of the sample is recovered.

Logging

 Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies.

 Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography.

 The total length and percentage of the relevant intersections logged.

 100% of core and RC samples were geologically logged.

 The logging describes the dominant and minor rocktypes, colour, mineralisation, oxidation, alteration, vein type, core recovery, basic structure (hardness has not been logged).

 Rock Quality Designation or RQD % has been noted in the core drill logs (also number of fractures per interval has been noted). The RQD% represents the proportion of core in lengths of >100mm over a given interval.

Sub-sampling

techniques and sample preparation

 If core, whether cut or sawn and whether quarter, half or all core taken.

 If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry.

 For all sample types, the nature, quality and appropriateness of the sample preparation technique.

 Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples.

 Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling.

 Whether sample sizes are appropriate to the grain size of the material being sampled.

 Core is sawn in half and one half (50%) is submitted for analysis.

 Bulk 1m RC samples are transported from site to the warehouse in Lapseki (local town) where they are split using a 'Gilson' splitter. 30% of the sample (~8kg) is submitted to ALS - Global labs in Izmir for preparation. Wet RC samples are sent to the lab for drying, and then riffle splitting down to 1kg.

 The 50% sampling of the HQ core is considered appropriate for the mineralisation type; however PQ core is planned for more rigorous metallurgical testwork.

 The 30% split of the RC samples is considered to be representative. A

10 - 12% portion of the sample would be adequate (as long as the riffle splitting is done properly), which is between 2.5 - 3kg.

 The ALS prep on the sample split includes, weighing, drying, crushing (80% passing 2mm), split to 1kg, pulverising (80% passing 75micron) using an LM2 grinding vessel (see http://www.impautomation.com/Products/Products-by-Product-Type).

 Approximately 200g of pulverised material is flown to the ALS Global lab in Vancouver Canada: A 50g split is taken for fire assay with AAS finish (Au-AA24) and a 1g sample is taken for aqua regia digest and then ICP-AES finish for 35 elements (ICP-41).

Quality of

assay data and

laboratory tests

 The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total.

 For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis

 A blank sample, a standard sample and a duplicate sample are randomly inserted approximately every 20 samples that are submitted. For RC drilling the duplicate is collected from the riffle splitter at the time of sampling. For diamond drilling samples a duplicate is made from rejects returned from the laboratory and resubmitted under a different number. It has been suggested that ¼ core would be better as a duplicate (McLean, 2012).

 The analysis for gold is by 50g fire assay with an AAS finish which is considered a 'total' technique. A 30g charge is probably sufficient, but

Criteria

JORC Code explanation

Commentary

including instrument make and model, reading times,

calibrations factors applied

and their derivation, etc.

 Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.

50g is more representative.

 ALS-Global have their own rigorous 'in lab' QAQC procedures and are ISO 17025 accredited for precious metal and base metal analyses.

Verification of

sampling and assaying

 The verification of significant intersections by either independent or alternative company personnel.

 The use of twinned holes.

 Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols.

 Samples have been re-submitted to other labs to check the main laboratory for accuracy.

 Some strongly anomalous holes have been twinned and / or re- submitted for assay, however this has not been done for every anomalous hole. It is more likely that an anomalous RC hole will be twinned by a diamond hole.

 The early drill holes were logged on paper and then 'key punched' into a computer; KERC001 - 118 and KED001 to 170.

 From KED171 the logging was entered directly into a computer ('Logchief' software), typed in by the geologist with verification conducted via 'Datashed'.

 The sampling is written down in a notebook and then 'key punched'

into the computer (also part of Datashed).

Location of

data points

 Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation.

 Specification of the grid system used.

 Quality and adequacy of topographic control.

 At the completion of the drill hole the collar was surveyed using a Trimble R6 which gives 0.25m horizontal and 0.5m vertical accuracy (http://trl.trimble.com/docushare/dsweb/)

 The coordinates used are coordinate system ED50 / UTM Zone 35/ Central Meridian 27

 The Kestanelik project has a digital terrain model (DTM) which has been constructed using Quickbird data, processed by Arcasoy Consulting, Turkey. The main Kestanelik zone, from Karakovan to the central area was surveyed by surveyors, who created 1 to 10m spaced contours. Ortho-rectification was completed by recent Quickbird image, with 59 field markers (white crosses).

Data spacing

and distribution

 Data spacing for reporting of

Exploration Results.

 Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied.

 Whether sample compositing has been applied.

 The drill hole spacing is in vertical and horizontal fans, not on an even grid, due to the steep terrain and limitation of permitted drill sites. However, in most cases there are drill intercepts along strike and down dip of 20 to 35m on the dominant veins.

 The mineralized domains for Kestanelik have demonstrated sufficient continuity in both geology and grade to support the definition of Mineral Resources and Reserves, and the classifications applied under the 2012 JORC Code.

Orientation of data in

relation to geological

structure

 Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type.

 If the relationship between the drilling orientation and the

 The drilling has been targeted to intersect mineralised veins at a steep angle, although some oblique holes have been drilled due to the locations of permitted drill sites. However, this has been taken into account in such a way as to eliminate sampling bias.

 No significant sample bias based on drill hole orientation is noted

Criteria

JORC Code explanation

Commentary

orientation of key mineralised structures is considered to

have introduced a sampling

bias, this should be assessed and reported if material.

Sample security

 The measures taken to ensure sample security.

 The chain of custody is managed by Chesser. The core / RC samples are transported directly to the yard at Lapseki where the RC retain samples and all the core (half core) is in a secured facility (fenced with

24 hr guards).

Audits or reviews

 The results of any audits or reviews of sampling techniques and data.

 An independent audit of the Kestanelik project was conducted by consultant Neil McLean of Geodiscovery in 2012, and Mining Associates also conducted a review as part of their site visit in 2013.

Criteria

JORC Code explanation

Commentary

Mineral

tenement and land tenure status

 Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings.

 The security of the tenure held at the time of reporting along with any known impediments

to obtaining a licence to operate in the area.

 The Kestanelik property is located on Operating licences:

58380 & 58467, which are held in the name of Batı Anadolu Madencilik Sanayi ve Ticaret A.Ş., a wholly-owned Turkish subsidiary of Chesser Resources Ltd. A 2.5% Net Smelter Return Royalty is payable to the group from whom Chesser originally optioned the property.

 Chesser Resources, through its 100% owned Turkish Subsidiary, has vested 100% ownership in the Kestanelik tenements.

Exploration

done by other parties

 Acknowledgment and appraisal of exploration by other parties.

 Tuprag (the 100% owned Turkish subsidary of Eldorado) was the previous owner of the Kestanelik tenements and they conducted mapping, rockchip sampling and shallow RC drilling.

 Tuprag intersected some high grade gold intercepts but due to some poor results at depth in Karakovan and Kara Tepe areas they decided that the system was deeply eroded and the exposure was below the high grade gold zone.

 There are historical workings of unknown age with open stopes and inclined shafts and drives in and around the mineralised quartz veins. The workings do not exceed a depth of ~20m.

Geology

 Deposit type, geological setting and style of mineralisation.

 The gold deposit type is low sulphidation epithermal vein system hosted within a package of mica schists of reported pre-Permian age in proximity to the western contact of a hornblende dacite porphyry stock of probable Oligocene or Miocene age. Serpentinised ultramafic rock occurs within the schist package along the eastern side of the stock.

Drill hole

Information

 A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes:

o easting and northing of the drill hole collar

o elevation or RL (Reduced

 Refer to table 1

Criteria

JORC Code explanation

Commentary

Level - elevation above sea level in metres) of the

drill hole collar

o dip and azimuth of the hole

o down hole length and

interception depth

o hole length.

Data

aggregation methods

 In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut- off grades are usually Material and should be stated.

 Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail.

 The assumptions used for any reporting of metal equivalent values should be clearly stated.

 In all previous ASX press releases the assays are given 'un- cut' unless otherwise stated & weighted averaging of results is used: in which the average grade is the sum of the products of length and grade for each sample in the interval, divided by the total length of the interval. A nominal cutoff of

0.2g/t is used for identification of potentially significant intercepts for reporting purposes, though a 0,5g/t cutoff has been used in resource modelling.

 Most of the reported intercepts are shown in sufficient detail, including gold maxima and subintervals, to allow the reader to make an assessment of the balance of high and low grades in the intercept.

 Informing Samples have been composited to two metre lengths honouring the geological boundaries and adjusted where necessary to ensure that no residual sample lengths have been excluded (best fit).

 Metal equivalents are not used.

Relationship

between mineralisatio n widths and intercept lengths

 These relationships are particularly important in the reporting of Exploration Results.

 If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported.

 If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg 'down hole length, true width not known').

 Mineralised structures at Kestanelik are variable in orientation, and therefore drill orientations have been adjusted from place to place in order to allow intersection angles as close as possible to true widths.

 Exploration results have been reported as an interval with

'from' and 'to' stated in tables of significant economic intercepts. Tables clearly indicate that true widths will generally be narrower than those reported.

 An estimate of true width can be made based on the known strike of mineralised quartz veins or quartz breccias, although it should be noted that these features are not absolutely planar and anastomosing does occur, with variable strike and dip.

Diagrams

 Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being

reported These should include, but not be limited to a plan

view of drill hole collar

locations and appropriate sectional views.

 See figures 1 and 2

Balanced reporting

 Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration

 Every drillhole completed on the property has been reported, regardless of whether it has returned high or low grades. Higher grade drillholes are reported with significant detail, while lower grade drillholes generally have fewer reported intercepts. Holes with no economically significant intercepts are reported as such in each release of results, with the label "No Significant Intercept".

Criteria

JORC Code explanation

Commentary

Results.

Other substantive

exploration data

 Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples - size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances.

 Geophysical survey results and surface geochemistry results have been reported.

 All samples are measured for bulk density, which at

Kestanelik ranges from 2.1 g/cm3 to 2.85 g/cm3.

 Multi element assaying is conducted routinely on all samples for a suite of potentially deleterious elements including Arsenic, Sulphur, Zinc and Magnesium.

 Some geotechnical study has been undertaken on the project, with the aim of determining rock strength and planning pit wall angles.

 Metallurgical testing has been carried out on bulk samples of drillcore and RC chips.

 Tests of the ground water have been made.

Further work

 The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step- out drilling).

 Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive.

 Future drilling will continue to test known mineralisation along strike and down dip at close spacing (20 x 40m approx) and will also target untested zones of potential mineralisation (based on surface geochemistry, geology or resistive targets from IP).