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Darwin Mining & Exploration Pty Ltd A.C.N. 151 529 145

38 Turnmill St, Macgregor, QLD 4109, Australia Tel: +61 2 91917587 Fax: +61 2 49575502 Email: zhiyu.jiang830@gmail.com

EL 29029

SECOND ANNUAL REPORT

FOR THE PERIOD

6 June 2013 to 5 June 2014

By Company Geologists

Dr Zhiyu Jiang

June 26 2014

Copyright

Darwin Mining & Exploration Pty Ltd owns the copyright of all the annual report. The document has been written for submission to the Northern Territory Department of Mines and Energy in accordance with the Mineral Titles Act (NT). Darwin Mining & Exploration Pty Ltd authorise the department to copy and distribute the report and associated data.

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TABLE OF CONTENT Summary…………………………………………………………………………..…3

Introduction……………………………………………………………………….….4

Tenure Details……………………………………………………………………….4

Geological Setting ..……………………………………………………………...…5

Reconnaissance and Mineralisation in the Tenement of EL29029 ................................……….……………............………5

Work Planned ………………………………………………………………..….…8

References........................................................................................................9

Appendix I Handheld XRF analysis results of the samples from Mt Irene expecting area.

Appendix II Re-analysed XRF analysis results of the samples from Mt Irene expecting area.

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Summary Exploration title EL29029 was granted to Darwin Mining & Exploration PTY LTD on 6 June 2012. During the last twelve months, geological reconnaissance has been carried out in October and early November. Two local people had been organised to join us for the geochemical sampling using their vehicals or motorcycles because our hired vehicle was not suitable to drive into the bush. Unfortunately, the local people were not available when we first arrived in the field in October 2013. For this reason, we had to change our schedule. Three weeks later when we returned, the locals had had an accident and could not go with us. A short geological reconnaissance was undertaken by us. We failed to access Clark Cu1-3 old mining area with our hired vehicle and did not find the old Ringer mine. Twelve rock chip samples were taken from the Mt Irene old pit area by us on foot. It was slow and ineffective. We had to give it up and plan the sampling for next year.

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Introduction

Exploration Licence EL29029 was granted to DARWIN MINING & EXPLORATION PTY LTD by NT State DEPARTMENT OF MINES AND ENERGY on 6 June 2012 for a period of six years. This report summarises work carried out on EL29029 during the period 6 June 2013 to 5 June 2014.

Tenure details

EL29029, total of 127 units (Table 1), is located northwest of Alice Springs in distance of approximately 328km, accessing by Tanami Road and local 4WD tracks (Fig. 1).

-2 1 o5 5

-2 2 o0 0

SF5 2 17 17 H, J, K, N, O , P, R, S, T, U, W, X, Y, Z SF5 2 17 18 F, L , Q, V SF5 2 17 89 B, C, D, E, G , H, J , K, M , N, O , P, R, S, T, U SF5 2 17 90 A, B , C, D, E, F, G, H, J, K, L, M, N, O, P, Q , R, S, T, U SF5 2 17 91 AL L SF5 2 17 92 A, F, G, H, J, L , M , N, O , Q, R, S, T, U, V, W, X, Y, Z SF5 2 17 93 Q , V SF5 2 18 63 A, B , C, D, E, F, G, H, J, L, M , N, O , Q, R, S, T SF5 2 18 64 A, B , C, D, E, G , H, J SF5 2 18 65 A, F

-2 2 o0 5

EL29029 487 1

-2 2 o1 0 1 3 1o 00

1 3 1o 05

1 3 1o 10

1 3 1o 15

1 3 1o 20

13 1o 25

Figure 1 EL29029 Location Diagram

Table 1 EL29029 unite BLOCK NO UNITS SF52 1717 H, J, K, N, O, P, R, S, T, U, W, X, Y, Z SF52 1718 F, L, Q, V SF52 1789 B, C, D, E, G, H, J, K, M, N, O, P, R, S, T, U SF52 1790 A, B, C, D, E, F, G, H, J, K, L, M, N, O, P, Q, R, S, T, U SF52 1791 ALL SF52 1792 A, F, G, H, J, L, M, N, O, Q, R, S, T, U, V, W, X, Y, Z SF52 1793 Q, V SF52 1863 A, B, C, D, E, F, G, H, J, L, M, N, O, Q, R, S, T SF52 1864 A, B, C, D, E, G, H, J SF52 1865 A, F

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Geological Setting Geologically EL29029 sets at Mount Doreen Mineral Field in the Arunta Region of the Aileron Province. The major rock types include Mesoproterozoic-Paleoproterozoic variably metamorphosed clastic sediments, meta volcanic rock, calc-silicate rocks, dolerite, mafic rock and intrusion granite. Minerals hosted by the rocks include metamorphosed VMS and carbonate replacement Pb-Zn-Cu, iron- oxide Cu-Au, orogenic Au, W(-Mo), Sn, mafic-hosted Ni-Cu, vermiculite, hydropthermal U, and apatite- and pegmatite-hosted REE-U(-P). Major explorations in the region target for base metals, Ni-Cu, uranium, mafic-hosted vanadiferous magnetite, REE and orogenic gold. Unfortunately, still large areas remain significantly under-explored.

Reconnaissance and Mineralisation in the tenement of EL29029

Mineralisation occurring in the tenement of EL29029 and adjacent area includes tungsten at Mount Doreen mine, base metal (Cu-Pb-Zn-Ag) at Silver King mine, Tungsten at Ringer mine, base metal (Cu-Pb-Zn-Ag) at Mount Irene mine and Clark Cu No’s 1,2 &3 mines (Fig. 2).

Cl a rk Cu 1, 2 , 3

Mo u nt Ir e ne Ri n g er

Mo u n t Do re e n

Si l ve r K i ng

Fig. 2 Mineralisation in the tenement of EL29029 and adjacent area. It had been planned to take geochemical samples systematically at the eastern Silver King mine area along the northern wing of the big fault where there is an uranium anomaly (Fig. 3) and high contents of uranium in the rock chip samples taken by Rio Tinto Ltd in 1998 (Fig. 4).

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UU

SSSiillvvveee rr KKKiinnn ggg

UUU mmmiinnneee

UU aannoommaall yy

Fig. 3 Relationship of Silver King Mine, major W-E fault and uranium anomaly.

EL29029

Silver King

330p p m

4 6 0p p m 2550p pm

EL29 980

Fig. 4 Uranium contents of the rock chips samples taken by Rio Tinto Ltd in 1998 near the Silver King Mine and the major fault.

Unfortunately the local’s we organised had to travel away for a funeral when we arrived to the field in October 2013. When we returned three weeks later, the local’s had an accident and were not able to do the sampling for us.

In this case we carried out the geological reconnaissance ourselves on the western mineral occurrences; Ringer W mine, Mount Irene and Clark Cu 1,2 &3 base metal mines which we failed to access by our hire vehicle previously. Due to the local’s not being available, we had to use the hire vehicle again. Like before, the vehicle could not be driven in the bush and we had to walk several kilometers to the sites each day. We failed to access Clark Cu No’s 1, 2, & 3 mines and the Ringer W mine. The Ringer W mine area is all flat and the old mine pit could have been refilled as the mine has been closed for decades. Only the Mount Irene old mining area was visited during the reconnaissance. A shallow old open pit can be seen (Fig. 5).

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Fig. 5 old open pit at Mt Irene.

Some abandoned ore had been found several metres away. Most of the ore are iron rich, like gossan sample, with some malachite (Fig. 6).

Fig. 6 Ore samples from Mt Irene

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Fig. 7 Locations of the samples from Mt Irene mine.

Generally the ore bodies are present in small size stockwork or small veins which are controlled by a shear zone. Twelve samples have been taken from the old open pit and near the area. The results are listed in the Table 2.

Table 2 XRF Analysis results of the samples from Mt Irene mine area (please see Appendix I for detail)

ID Easting Northing Au P S Mn Fe Co Cu Zn As Ag Sn Pb Bi U

1

718221 7562497 <LOD

<LOD

<LOD

339

1178114

1019

8476

349

280

<LOD

313

<LOD

101

93

2

718220 7562498 <LOD

<LOD

<LOD

304

1632491

1937

11306

421

481

<LOD

994

<LOD

362

110

3

718219 7562499 <LOD

<LOD

<LOD

817

1252256

1203

5943

347

320

<LOD

440

<LOD

<LOD

104

4

718218 7562500 <LOD

<LOD

<LOD

202

1483284

1617

8662

429

366

<LOD

638

<LOD

144

163

5

718217 7562501 <LOD

<LOD

<LOD

138

1836294

2258

10266

390

561

<LOD

444

<LOD

163

127

6

718104 7562515 76

15298

4954

277

51016

<LOD

504174

3770

<LOD

<LOD

158

655

195

<LOD

7

718104 7562515 79

26010

10675

572

55576

25

721937

3754

150

<LOD

224

1067

<LOD

<LOD

8

718104 7562515 18

6424

3693

141

72063

15

157849

1457

<LOD

<LOD

87

269

131

<LOD

9

718104 7562515 84

33614

13275

593

22325

24

840048

4051

<LOD

<LOD

<LOD

1216

246

<LOD

10

718106 7562517 <LOD

6760

2791

319

93211

13

111345

1393

<LOD

<LOD

116

767

102

<LOD

11

718106 7562517 <LOD

6193

2703

109

114027

22

209255

2139

<LOD

20

102

505

215

<LOD

12 718106 7562517

29

10226

5654

183

108819

35

300979

1600

<LOD

23 69

592

<LOD

<LOD

Two of the twelve samples have been re-analysed by XRF and the results are listed in Table 3. It has been confirmed that these samples contain gold with copper, but not significant lead and zinc.

Table 3 Analysis results of two samples from the twelve samples from Mt Irene area (please see Appendix II for details)

Sample ID Easting Northing Cu（%） Pb(%) Zn(%) W(ppm) Sn(ppm) V(ppm) Nb(ppm) Ta(ppm) Th(ppm) U(ppm) REO(ppm) Au(ppm)

AJ-29029-1 718220 7562498 21.02 0.14 0.23 2.1 300 5.5 0.29 0.91 0.20 12.1 8.65 0.22

AJ-29029-2 718217 7562501 1.39 0.0017 0.062 2.4 126 10.2 0.81 2.40 0.47 156 73.66 0.20

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During the field investigation, geologists had to walk on foot for several kilometres to the mining sites without the help of the local people. It took so long for the field investigation and the program was ineffective on foot. Eventually, Darwin Mining and Exploration P/L geologists run out of time in the NT and had to give up the further investigation and leave all the work for next year with help from the local people.

Work Planned

1. Geological survey and sampling in the Ringer tungsten mine and Clark Cu 1,

2 & 3 base metal mines which we failed to find and access; 2. Geochemical and geophysical methods will be used to target subsurface

structures, unexposed granite and associated mineralisation if the initial reconnaissances in the area returns interesting results;

3. Ground investigation of the major E-W fault and its secondary shears at south of the Silver King Mine. Rock chip and soil geochemical sampling will be carried out.

4. Testing the anomalies targeted by geological, geophysical and geochemical surveys by drilling.

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References Claoué-Long, J., 2003. Event chronology in the Arunta region. In Annual Geoscience Exploration Seminar (AGES) 2003. Record of Abstracts. Munson, T.J., and Scrimgeour, I. (editors). Northern Territory Geological Survey, Record 2003- 0001.

Claoué-Long, J., Fraser, G., Huston, D., Neumann, N., and Worden, K., 2005, Towards a correlation of the earliest Proterozoic evolution in central Australia. In Annual Geoscience Exploration Seminar (AGES) 2005. Record of Abstracts. Munson, T.J., and Scrimgeour, I. (editors). Northern Territory Geological Survey, Record 2005-001.

Cross, A.J., Fletcher, Crispe, A.J., Huston, D.L., and Williams, N., 2005. New constraints on the timing of deposition and mineralisation in the Tanami Group. In Annual Geoscience Exploration Seminar (AGES) 2005. Record of Abstracts. Munson, T.J., and Scrimgeour, I. (editors). Northern Territory Geological Survey, Record 2005-001, 44-45.

Cutovinos, A., Kruse, P.D., Abbott, S.T., Beier, P.R., and Dunster, J.N., 2002. Limbunya, Northern Territory, sheet SE 52-07. Northern Territory Geological Survey 1:250 000 Geological Series.

Etheridge, M.A., Rutland, R.W.R., and Wyborn, L.A.I., 1987. Orogenesis and tectonic process in early to middle Proterozoic of Northern Australia. Geodynamic Series, 17, 131-147.

Fraser, G., 2002. Geochronology of Tanami ores and host rocks. In Annual Geoscience Exploration Seminar (AGES) 2002. Record of Abstracts. Munson, T.J., and Scrimgeour, I. (editors). Northern Territory Geological Survey Record 2002/0003.

Hussey, K.J., Huston, D.L., and Claoué-Long JC, 2005. Geology and origin of some Cu-Pb- Zn (Au-Ag) deposits in the Strangways Metamorphic Complex, Arunta region Northern Territory. Northern Territory Geological Survey, Report 17.

Huston, D.L., Hussey, K.J., Clauoe-Long, J., and Wygralak, A.S., 2003. Lead isotope constaints on the ages and metal sources of lode gold and base metal deposits from the Tanami Warumpi and southeast Arunta Provinces. In Annual Geoscience Exploration Seminar (AGES) 2003. Record of Abstracts. Munson, T.J., and Scrimgeour, I. (editors). Northern Territory Geological Survey, Record 2003- 001.10

Marshall, T., and Dunster, J., 2004. New advances in the Amadeus Basin. In Annual Geoscience Exploration Seminar (AGES) 2004. Record of Abstracts. Munson, T.J., and Scrimgeour, I. (editors). Northern Territory Geological Survey, Record 2004- 0001.

Page, R., Sun, S.-S., Blake, D., 1995. Geochronology of an exposed late Archæ an basement terrane in The Granites-Tanami region. AGSO Research Newsletter, 22, 19-20.

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Scrimgeouer, I., 2003. Developing a revised framework for the Arunta region. In Annual Geoscience Exploration Seminar (AGES) 2003. Record of abstracts. Munson, T.J., and Scrimgeour, I. (editors). Northern Territory Geological Survey, Record 2003-001.

Scrimgeour, I.R., Kinny, P.D., Close, D.F., and Edgoose, C.J., 2005. High-T granulites and polymetamorphism in the southern Arunta region, central Australia: evidence for a 1.64 Ga accretional event. Precambrian Research, 142, 1-27.

Shaw, R.D., Wellman, P., Gunn, P., Whitaker, A.J., Tarloski, C., and Morse, M., 1995. 'Australian crustal elements' map. AGSO Research Newsletter, 23, 1-3.

Vandenberg, L.C., Hendrickx, M.H., and Crispe, A.J., 2001. Structural geology of the Tanami region. Northern Territory Geological Survey Record 2001-004. Warren, R.G., and Shaw, R.D., 1985. Volcanogenic Cu-Pb-Zn bodies in granulites of the central Arunta Block, central Australia. Journal of Metamorphic Geology, 3, 481-499.

Wyborn, L., Hazell, M., Page, R., Idnurm, M., and Sun, S., 1998. A newly discovered major Proterozoic granite-alteration system in the Mount Webb region, central Australia, and implications for Cu-Au mineralisation. AGSO Research Newsletter, 28, 1-6.11