Adelaide Resources : Ounce per tonne gold rock chips from South West Limey Dam

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 hand held 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 (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.

• Rock chip samples were collected on an opportunistic basis from outcropping veins displaying epithermal textures and the vein host rocks.

• By their nature rockchip samples are not considered to be samples of high representivity.

Drilling

Techniques

• Drill type (air 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 orientated and if so, by what method, etc).

• No drilling results are included in the report.

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 sample.

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

• No drilling results are included in the report.

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.

• No drilling results are included in the report.

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

• No sample preparation was completed on the rock chips other than crushing and pulverising by the analytical laboratory, which is the standard preparation used for

appropriateness of the sample preparation

technique.

• Quality control procedures adopted for all sub- sampling stages to maximise representativity 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.

rockchip samples.

• A portion of each sample has been retained as a geological record and for photographic purposes.

• The sample sizes are considered appropriate for epithermal gold which is present as very fine (micron sized) grains.

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 including instrument make and mode, reading times, calibration factors applied and their derivation, etc.

• Nature and 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.

• Rock chips were assayed in a commercial lab using standard methods.

• Gold was determined by fire assay with AAS finish utilising a 30gm charge weight.

• Other metals were determined using four-acid digest with ICP-AES finish.

• Laboratory QA/QC samples were introduced into the rock chip assay stream.

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 or electronic) protocols.

• Discuss any adjustment to assay data.

• No drilling results are included in the report.

• No assay results have been adjusted.

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.

• Rock chip sample location points were collected using a Trimble Juno 3D GPS with autonomous accuracy of +/- 5 meters.

• GDA94 (Zone 55)

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 classification applied.

• Whether sample compositing has been applied.

• The samples were collected on an opportunistic basis. The

data is not appropriate for use in estimating a Mineral Resource and is not intended for such use.

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 orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material.

• The samples were collected on an opportunistic basis and it is unknown if this results in biased or unbiased sampling.

Sample

security

• The measures taken to ensure sample security.

• The samples were collected, packaged and delivered to the laboratory by senior company staff.

Audits or

reviews

• The results of any audits or reviews of sampling techniques and data

• No audits or reviews have been completed.

Criteria

JORC Code explanation

Commentary

Mineral

tenement

and land tenure status

• Type, reference name/number, location and ownership including agreements of material issues with third parties such as joint ventures, overriding royalties, native titles 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 license to operate in the area.

• The area the subject of this report falls within EPM

18090, which is 100% owned by Adelaide Exploration Pty Ltd, a wholly owned subsidiary of Adelaide Resources

Limited.

• There are no third party agreements, non govt royalties, or historical sites known. Underlying land title is Pastoral leasehold. The tenement area is covered by a Native Title claim and an Exploration Agreement has been executed with the Native Title Claimants. The report advises that an aboriginal heritage survey has been completed and did not locate any areas that are required to be excluded

form exploration. Part of the tenement falls within Restricted Area 206 - Burdekin Falls Dam Catchment.

• EPM 18090 is in good standing.

Exploration

done by other parties

• Acknowledgement and appraisal of exploration by other parties.

• The general area the subject of this report has been explored in the past by various companies including Cormepar Minerals, Otter Exploration, Hunter Resources, Poseidon Gold, Dalrymple Resources and MIM Exploration. The Company has reviewed past exploration data generated

by these companies.

Geology

• Deposit type, geological setting and style of mineralisation.

• Deposits in the general region are considered to be of low sulphidation epithermal vein style.

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 collar

o Elevation or RL (Reduced Level - elevation above sea

level in meters) of the drill collar.

o Dip and azimuth of the hole.

• The report does not include drilling results.

o Down hole length and interception depth.

o Hole length.

• If the exclusion of this information is justified on the axis that the information is not Material and this exclusion does not

detract from the understanding of the report, the Competent

Person should clearly explain why this is the case.

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 some detail.

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

• The report does not include drilling results.

Relationship

between mineralisati on 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').

• The report does not include drilling results.

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.

• Appropriate maps are included as Figures 1 to 3 in the report.

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 Results.

• Results of all geochemical data are presented in Table

1 of the report.

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, ground water, geotechnical and rock characteristics; potential deleterious or contaminating substances.

• Historic rock chip sample results are discussed and shown on Figure 2.

Further

work

• The nature and scale of planned further work (eg tests of 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.

• The report advises that the company is planning to drill test the South West Limey Dam prospect in 2015.