Announcement PDF ASX ANNOUNCEMENT Date: 22 July 2015 No. 405/220715 Market Cap A$16.4m (0.029 p/s) JUNE 2015 QUARTERLY REPORT SUMMARY Issued Capital 1. New cornerstone investor, Squadron Resources Limited, part 566,623,160 of the Mindaroo Group, to invest up to $7.3 million in Impact (see announcement 17th July 2015.) 2. BROKEN HILL PGM-Ni-Cu PROJECT, N.S.W. (Impact 87%)   High grade rare platinum group metals including osmium, rhodium, ruthenium and iridium, as well as platinum and palladium, confirmed throughout the project area. The Moorkai Intrusive Complex is confirmed as a significant target area with high grade results over a 9 km trend. 3. COMMONWEALTH Au-Ag-Base Metal PROJECT (Impact 100%)   Results of detailed gravity and induced polarisation surveys received and being interpreted. Interpretation of regional geology completed covering the 315 sq km project. 4. MULGA TANK Ni-Cu-PGE PROJECT (Impact 100%)  Directors Peter Unsworth Chairman Dr Michael Jones Managing Director Paul Ingram Non-Executive Director Markus Elsasser Non-Executive Director James Cooper-Jones Company Secretary Compilation and review of previous exploration data. 5. CORPORATE  Cash balance at the end of June 2015 Quarter: $0.57 million.  Initial investment of $2 million from Squadron Resources expected by late July. www.impactminerals.com.au a 26 Richardson Street West Perth Western Australia 6005 t +61 (8) 6454 6666 f +61 (8) 6454 6667 e info@impactminerals.com.au 1. NEW CORNERSTONE INVESTOR: MINDEROO GROUP INVESTS UP TO $7.3 MILLION On 17 July 2015 Impact announced that it had agreed terms for the funding of up to $7.3 million from Squadron Resources Pty Ltd, the private mining investment vehicle of the Minderoo Group. The key terms of the transaction comprise:      an initial $2 million investment in exchange for: interest-free 3 year secured convertible notes, convertible only into ordinary shares at the lower of 2.1 cents per share or 80% of the 30 day VWAP; and 45 million attaching unlisted call options to acquire ordinary shares at 3.25 cents per share (a potential further investment of up to about $1.46 million); subject to shareholder approval, a $1 million placement of ordinary shares at 2.1 cents per share (a 15% discount to the 15 day VWAP) with 26,428,572 attaching 3 year unlisted call options to acquire ordinary shares at 3.25 cents per share (a potential further investment of up to about $0.86 million); the option for Squadron, at its sole discretion, to invest a further $1 million into either or both of the high grade Commonwealth gold-silver-zinc-lead and Broken Hill platinum projects in NSW, to earn a 19.9% interest after Impact has spent a combined total of $2.5 million on the two projects; the appointment of Squadron’s nominee, Mr Aaron Hood, to the Board of Impact as a non-executive director; and the engagement of Dr John Clout as a technical consultant to Impact. Securing Squadron as a new cornerstone investor is a milestone development for Impact and its shareholders and the company looks forward to benefiting from the strong commercial and technical skills that the association with Squadron will bring. The transaction is subject to formal documentation and shareholder approval of some aspects of the investment. Squadron’s investment will occur in two tranches: Tranche 1 the issue of $2 million in secured convertible notes (“Notes”) and 45,000,000 unlisted call options (“Warrants”) on the completion of formal documentation, which is expected within two weeks; and Tranche 2 the issue of 47,619,047 ordinary shares to raise $1 million (“Placement”) and 26,428,572 attaching unlisted call options (“Options”), subject to shareholder approval. Shareholder approval of the Placement, and the issue of ordinary shares on the conversion of the Notes, Warrants and Options, will be sought for the purposes of the ASX listing rules and Corporations Act requirements at Impact’s Annual General Meeting, which is expected to be convened in late September. The notice of meeting will include an Independent Expert’s Report. Following the issue of the Notes, Mr Aaron Hood, Chief Investment Officer of the Minderoo Group and the Corporate Development Director of Squadron, will be appointed to the Board of Impact. In addition Dr John Clout, Chief Geologist of Squadron, will be engaged as a technical advisor to Impact. Dr Clout played a key role in the discovery and development of the world class Pilbara iron deposits for Fortescue Metals Group Ltd (ASX: FMG) and, earlier in his career completed seminal work on the Golden Mile deposit in Kalgoorlie in WA. Further details on the terms of the investment can be found in the original announcement. 2. BROKEN HILL PGM-Ni-Cu JOINT VENTURE PROJECT, N.S.W. (Impact 87%) During the Quarter, new rock chip assay data and a review of previous results confirmed the presence of high grade and rare platinum group metals in a wide arc stretching from the northeast to the southeast of the Broken Hill township. The results have demonstrated high to very high grades of the rare platinum group metals (PGM) osmium, iridium, rhodium and ruthenium at many prospects as well as in the Company’s recently discovered zones of high grade copper-nickel-PGM mineralisation at the Red Hill Prospect (see announcement dated 17 April 2015) at the southern end of the arc. These rare metals are used in many specialist hard-wearing metal alloys, electronics and for catalytic converters. Most of the rock chip samples, which have been variably assayed for the different PGMs, come from the Moorkai Intrusive Complex in the northern part of the project area where the host ultramafic unit can be traced for 9 kilometres along trend (Figures 1 and 2). At the Platinum Springs Prospect at the southern end of the Complex, a representative 120 kg sample of gossan returned: 19.6 g/t platinum, 50 g/t palladium, 3 g/t rhodium, 3 g/t osmium, 4.4 g/t iridium, 2 g/t ruthenium, 0.57 g/t gold, 0.34% nickel and 0.71% copper; A nearby drill hole completed by a previous explorer discovered a 2 metre thick zone of fresh massive sulphide from 45 m depth that returned: 2 m at 52 g/t platinum equivalent comprising 10.9 g/t platinum, 23.6 g/t palladium, 4.5% copper and 6.1% nickel. A one metre interval of this was sampled for the rare PGMS and returned: 1 m at 1 g/t rhodium, 1.3 g/t osmium and 1.2 g/t iridium. At two other undrilled prospects in the Moorkai Intrusive Complex, previous explorers identified rhodium in grab samples at Round Hill and Back Ridge including respectively (Fig. 2): 5.6 g/t platinum, 8.8 g/t palladium, 0.8 g/t rhodium, 2.4% copper and 0.7% nickel; and 5.2 g/t platinum, 6.5 g/t palladium, 1.0 g/t rhodium, 0.6% copper and 0.1% nickel. Figure 1. Image of airborne magnetic data showing the host rocks to PGM mineralisation (Red) At the undrilled Moorkai Prospect very high grade assays of up to 27.8 g/t platinum, 27.9 g/t palladium, 14 g/t gold, 9 % copper and 1,8% nickel were returned from gossan samples near small workings. Although these samples were not been assayed for the rare PGMs, Impact considers it highly likely that they will contain appreciable amounts of those metals. At the Little Darling Prospect in the centre of the Broken Hill Project area, a rock chip sample of gossan returned (Figure 2): 34.8 g/t platinum, 76 g/t palladium, 3.2 g/t rhodium, 1.2 g/t gold, 1.9% copper and 1.9% nickel. Figure 2. PGM-copper-nickel assays at the Moorkai Intrusive Complex All of these results add to those returned from the Red Hill Prospect at the southern end of the project where Impact has discovered a 25 to 30 metre thick near-surface layer of coppernickel-PGM mineralisation containing two zones of high grade drill intercepts called the Upper and Lower Zones which returned (Figure 3): (Note 3PGM = Platinum-palladium-gold and 7PGM = 3PGM + osmium, iridium, rhodium, ruthenium where assayed (full details in Appendix and Tables 1 and 2). Upper Zone: 9.5 m at 4.7 g/t 3PGM, 1.5% copper and 0.8% nickel including 5.1 m at 11 g/t 7PGM, 1.9% copper and 0.9% nickel (RHD001) and 5.2 m at 7.9 g/t 7PGM, 1.1% copper and 1.6% nickel (RHD006) Lower Zone: 9.9 m at 6.7 g/t 3PGM, 1.4% copper and 0.3% nickel including 4.2 m at 11.8 g/t 7PGM, 2.6% copper and 0.5% nickel (RHD001) and 13.8 m at 6.6 g/t 7PGM, 1.1% copper and 0.3% nickel (RHD006). Figure 3. Cross section at the Red Hill Mine (see Figure 4 for location) Given that the current spot metal prices in Australian dollars per ounce for these metals are: rhodium: $1,506/oz; iridium $763/oz: osmium $500/oz and ruthenium $65/oz in addition to: platinum $1,528/oz, palladium $1,015/oz and gold at $1,581/oz, the rare PGMs could be an economic credit to any resource defined within the Broken Hill project. Next Steps Impact has now identified six targets for further drilling at Red Hill (Targets T1 to T6, Figure 4 and see announcement dated 1st April 2015). Target T1 contains the newly discovered PGM-copper-nickel mineralisation which is interpreted to dip at a shallow angle to the south, and is close to true width. In addition the mineralisation may be increasing in width and grade with depth and is in part coincident with an Induced Polarisation (IP) chargeability anomaly identified in a ground geophysical survey (Figures 3 and 4). IP chargeability anomalies may be associated with disseminated sulphides and magnetite. Follow up drill holes are required at T1 to test the mineralisation along trend and at depth. Figure 4. Geology and drill targets at the Red Hill Prospect. The other five drill targets consist of a ground (T2) and down hole (T3) electromagnetic anomaly, a rock chip geochemical anomaly (T4), an induced polarisation (IP) anomaly (T5) and an airborne magnetic anomaly (T6) (see announcement dated 1st April 2015). Statutory approvals for a drill programme have been received. Work for the next Quarter A ground gravity survey to cover the Red Hill prospect will start shortly. This information will be used to help finalise drill hole locations for a 1,000-1,500 m drill programme that will commence later this Quarter, subject to Board approval. About the Broken Hill Joint Venture Project Exploration Licence E7390 is owned by Golden Cross Resources Limited (GCR) and is the subject of two joint ventures, one between GCR and Impact and one between GCR and Silver City Minerals Limited (ASX:SCI). Impact has earned 87% of the rights to nickel, platinum and any other metals, occurring in, emanating from, or which are otherwise associated with, mafic or ultramafic complexes. Should Golden Cross dilute to less than a 5% interest in these rights then it has to transfer its interest to Impact for $1 (one dollar). Silver City has the rights to base metal, silver and gold mineralisation associated with Broken Hill style mineralisation. The drill intercepts in RHD001 and RHD006 are the first significant drill intercepts of PGM, nickel and copper within Impact’s project area away from the high grade drill intercept of 2 m at 6.1% nickel, 4.5% copper, 10.9 g/t platinum and 23.6 g/t palladium in fresh sulphide discovered some years ago by previous explorers at the Platinum Springs prospect located about 15 km to the north east. There are many strike kilometres of the same ultramafic host rock that contain high grade nickel-copper-PGM rock chip assays similar to those at Platinum Springs and Red Hill that have never been drilled. These results at Red Hill confirm Impact’s belief that there is potential for a significant discovery near Broken Hill. Of interest, CRA Exploration completed two diamond drill holes under the Red Hill workings in 1969 with no significant results (Figures 3 and 4). However these holes were drilled from north to south and detailed work by Impact has now demonstrated that these holes were drilled parallel to and below the mineralised zone (Figure 3) Table 1. Drill Hole Summary for Red Hill Collar ID Prospect Drill type Easting Northing Dip Azimuth Depth RHD001 Red Hill Mine Diamond 555379 6454298 -55 10 94.5 RHD002 Red Hill Mine IP Diamond 555372 6454303 -75 300 243.5 RHD003 Simons Find Diamond 555431 6454598 -80 225 220 RHD004 Central IP Diamond 555517 6454391 -60 255 170 RHD005 Northern EM Diamond 555250 6454700 -60 90 131.2 RHD006 Red Hill Mine Diamond 555377 6454301 -50 0 103.1 Table 2. Significant assay drill intercept results and cut off grades Hole ID From To Interval Cu Ni Pt Pd Au Ag 3PGE RHD001 12.9 19.5 6.6 0.12 0.11 1.5 2.3 0.1 1.9 1 46.0 78.0 32.0 0.97 0.45 1.5 2.3 0.1 10.6 3.9 including 46.0 49.7 3.7 0.44 0.65 0.5 1.6 0 3 2.1 and 53.7 55.6 1.9 2.01 1.19 1.1 3.4 0.2 15.9 4.7 including 53.7 63.2 9.5 1.53 0.79 2.2 2.4 0.1 13.6 4.7 also including 57.3 62.4 5.1 1.9 0.88 3.2 2.9 0.2 17.6 6.2 including 67.0 76.9 9.9 1.44 0.3 2.5 3.9 0.3 19.2 6.7 also including 71.6 75.8 4.2 2.59 0.49 4.9 5.4 0.4 0 10.6 RHD002 10.0 26.0 16.0 0.18 0.27 2.2 1.4 including 16.0 21.5 5.5 0.31 0.37 4.1 2.7 also including 16.0 19.2 3.2 also including 24.3 25.0 0.7 0.12 0.12 4.9 5.4 0.4 3.5 2.5 52.0 77.5 25.5 0.84 0.56 0.5 1.6 0 7 4.3 including 54.2 59.4 5.2 1.14 1.57 4.9 5.4 0.4 7.2 including 63.2 77.0 13.8 1.07 0.34 4.9 5.4 0.4 9.9 4.9 5.4 0.4 Au Pd Pt Os Ir Rh Ru 7PGE 0.2 3.3 3.7 1.1 1.2 0.9 0.5 11 0.34 5.11 4.35 0.58 0.70 0.51 0.27 11.85 0.16 2.17 1.25 0.08 0.10 0.09 0.04 3.89 3.45 0.17 3.89 0.78 1.03 1.17 0.93 0.65 7.87 6.34 0.37 3.68 1.99 0.14 0.17 0.14 0.07 6.55 3. COMMONWEALTH GOLD-SILVER-BASE METAL PROJECT (IPT 100%) The Commonwealth Project comprises three exploration licences that cover about 315 sq km of the highly prospective Lachlan Fold Belt about 100 km north of Orange in NSW. The belt is host to many major gold-silver-copper mines including the Cadia-Ridgeway deposits that contain 25 million ounces of gold and 12 million tonnes of copper. On 19 February 2015 Impact announced a maiden Inferred Mineral Resource at the Company’s 100% owned Commonwealth gold-silver-zinc-lead-copper project located 95 km north of Orange in New South Wales (Figure 5). The Inferred Resource, prepared in accordance with the JORC 2012 Code by independent resource consultants Optiro at a 0.5 g/t gold cut off is: 720,000 tonnes at 4.7 g/t gold equivalent for a contained 110,000 gold equivalent ounces and comprising 2.8 g/t gold, 48 g/t silver, 1.5% zinc, 0.6% lead and 0.1% copper. The resource, which is open along trend and at depth, contains both massive sulphide mineralization at the Main Shaft prospect and disseminated, vein and lesser massive sulphide mineralization at the Commonwealth South prospect. It extends from surface to an average depth of 90 m, has a strike length of 400 m and is up to 25 m thick. Figure 5. Location of the Commonwealth Project within the Lachlan Fold Belt of NSW, home to many significant gold and copper mines. A separate Inferred Mineral Resource (included within the overall resource) has also been calculated for the massive sulphide lens at Main Shaft to demonstrate the high grade nature of such deposits that are the principal target for Impact’s exploration programme. The Main Shaft Inferred Resource is: 145,000 tonnes at 10 g/t gold equivalent for a contained 47,000 gold equivalent ounces and comprising 4.3 g/t gold, 142 g/t silver, 4.8% zinc, 1.7% lead and 0.2% copper. Gold Equivalent Calculation Gold equivalent calculation represents the total metal value for each metal, multiplied by the conversion factor, summed and expressed in equivalent gold percentage. These results are exploration results only and no allowance is made for recovery losses that may occur should mining eventually result. However it is the Company’s opinion that elements considered here have a reasonable potential to be recovered as evidenced in similar multi-commodity natured mines elsewhere in the world. Gold equivalent conversion factors and long-term price assumptions used are as follows: Gold $1581/ ounce, silver $22.21/ounce, copper $7,320/tonne, lead $2,345.94/tonne; zinc $2,74/ tonne. Further details on the resource may be found in the original ASX release dated 19th February 2015. At Main Shaft the massive sulphide lens is still open at depth and in particular to the south east along strike from drill hole CMIPT021 which returned a best intercept of: 8.1 m at 6 g/t gold, 193 g/t silver, 5.9% zinc, 2.3% lead and 0.16% copper from 71 m including 2.9 m at 9.3 g/t gold, 201 g/t silver, 11.6% zinc, 4.7% lead and 0.25% copper from 74.9 m down hole. During the Quarter final reports for a ground gravity survey and ground IP survey were received together with the results of a follow-up soil survey over the Silica Hill and Doughnut target areas. A land access agreement is being negotiated with a new land holder at Commonwealth following the recent sale of the underlying property. Work for the September Quarter All of this data will be synthesised and used to define new targets for drilling. Further field work to the east of Silica Hill is also warranted. 4. MULGA TANK NICKEL-COPPER-PGE PROJECT (IPT 100%) Impact owns 100% of 13 exploration licences that cover 425 sq km of the highly prospective Minigwal greenstone belt, 200 km east of Kalgoorlie in the emerging mineral province of the south east Yilgarn Block, Western Australia (Figures 6 and 7). Impact has discovered three styles of nickel sulphide mineralisation within the dunite and surrounding rocks (see announcement dated 29th January 2014): 1. High tenor veins at the base of the Mulga Tank Dunite with drill results of: 0.25 m at 3.8% nickel, 0.7% copper and 0.7 g/t PGE and 0.3 m at 0.7% nickel. 2. High tenor nickel sulphide in multiple komatiites in a flow channel with drill results of: 0.75 m at 0.85% nickel, 0.35% copper and 0.28 g/t PGE (Pt+Pd+Au); and 6.7 m at 0.5% nickel. 3. Extensive disseminated nickel in the Mulga Tank Dunite with drill results of: 2 m at 1.3% nickel including 1 m at 2% nickel and multiple zones of 0.5 m at 0.5% to 1.2% nickel within an intercept of 115 m at 0.3% nickel; other thick intercepts of 21 m at 0.4% nickel and 59 m at 0.3% nickel. The style of mineralisation and the nature of the ultramafic rocks are similar to those that host the significant nickel deposits found at the Perseverance (45 Mt at 2% nickel), Rocky’s Reward (9.6 Mt at 2.4% Ni) and Mt Keith >2 Mt of contained nickel) mines near Leinster in Western Australia (Figure 6 and Figure 8). Impact’s results come from one 15 sq km area within a very large greenstone belt that extends for 20 km along strike and which has not been explored for nickel (Figure 10). The area is also highly prospective for gold deposits. During the Quarter a detailed synthesis and review of all previous exploration data was completed. This will be used to generate new targets for follow up work. A detailed programme and budget for the next phase of work is now being prepared. In the December Quarter Impact was awarded a grant of $150,000 as part of the Western Australian Government’s Exploration Incentive Scheme for drilling at the Mulga Tank Project. The EIS, a co-funding initiative for exploration in under explored areas and awarded on a dollar-for-dollar basis for direct drilling costs, has been designed to encourage innovative exploration and prioritised high quality, technically sound proposals that demonstrate new exploration concepts. The grant was awarded to drill test the basal contact of the Mulga Tank dunite for high grade nickel-copper-PGM deposits. Figure 6. Location of the Mulga Tank Project and significant nickel sulphide mines and prospects including Perseverance and Rocky’s Reward and with new nickel-copperPGE discoveries in the emerging nickel-copper province to the east. Figure 7. Geology and licences of the Mulga Tank Project Figure 8. Conceptual cross-section for the Mulga Tank Dunite and surrounding area showing the Perseverance and Rocky’s Reward exploration model. 4. CORPORATE Cash balance at the end of the 30 June 2015 was $0.57 million. On the 21st July 2015 the Company issued 142,045 Company shares each to Dr Markus Elsasser and Mr Paul Ingram in accordance with Resolutions 4 and 5 of the Annual General Meeting held on 27th November 2014. Dr Michael G Jones Managing Director The review of exploration activities and results contained in this report is based on information compiled by Dr Mike Jones, a Member of the Australian Institute of Geoscientists. He is a director of the company and works for Impact Minerals Limited. He has sufficient experience which is relevant to the style of mineralisation and types of deposits under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mike Jones has consented to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report which relates to Mineral Resources is based upon information compiled by Ian Glacken, who is a Fellow of the Australasian Institute of Mining and Metallurgy. Ian Glacken is an employee of Optiro Pty Ltd and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 edition of the Australasian Code for Reposting of Exploration Results, Mineral resources and Ore Reserves. Ian Glacken consents to the the inclusion in the release of a summary based upon his information in the form and context in which it appears. BROKEN HILL APPENDIX 1 - SECTION 1 SAMPLING TECHNIQUES AND DATA Criteria Sampling techniques Drilling techniques Drill sample recovery Logging Sub-sampling techniques and sample preparation JORC Code explanation Commentary Nature and quality of sampling (e.g. 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. Random rock samples were taken at surface which represented favourable geology and alteration to known mineralisation in the region. Samples are variably weathered. Soil samples were taken at 50 m intervals from a hole 15-20 deep and sieved to -2mm to collect about 250 g of material. A handheld XRF instrument was used to analyse the drill core at 50 cm intervals. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used Representative rock chip samples at each sample site weigh between 0.8 and 1.2 kg. Soil samples are taken at a consistent depth below surface and sieved. The XRF measurements were taken to prevent a bias towards mineralised intervals. 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 (e.g. ‘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 (e.g. submarine nodules) may warrant disclosure of detailed information Rock samples were sent to Intertek Adelaide where they were crushed, dried and pulverised (total prep) to produce a 25-30 g sub-sample for analysis by four acid digest with an ICP/AES finish for ore grade base metal samples and lead collection fire assay with AAS finish for gold and precious metals. Weathered samples contained gossanous sulphide material. Soil samples were sent to SGS Perth for analysis by the MMI digest. The XRF data is qualitative only. A comparison between the XRF results and wet chemical assay data will be completed on receipt of final results. Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (e.g. 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). No drilling results are reported. Method of recording and assessing core and chip sample recoveries and results assessed No drilling results are reported. Measures taken to maximise sample recovery and ensure representative nature of the samples No drilling results are reported. 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. No drilling results are reported. 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. No drilling results are reported. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. No drilling results are reported. The total length and percentage of the relevant intersections logged No drilling results are reported. If core, whether cut or sawn and whether quarter, half or all core taken. No drilling results are reported. Criteria Quality of assay data and laboratory tests Verification of sampling and assaying Location of data points Data spacing and distribution JORC Code explanation Commentary If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. No drilling results are reported. For all sample types, the nature, quality and appropriateness of the sample preparation technique. The sample preparation techniques follow industry best practice. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Laboratory QC procedures for rock sample assays involve the use of internal certified reference material as assay standards, along with blanks, duplicates and replicates. 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. Field duplicates were taken at selected sample sites. Whether sample sizes are appropriate to the grain size of the material being sampled. This is not relevant to soil and rock chip results. The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. Industry standard assay techniques were used. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. No geophysical tools were used to determine material element concentrations. Nature of quality control procedures adopted (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established. For the rock chips, quality control procedures for assays were followed via internal laboratory protocols. Accuracy and precision are within acceptable limits. The verification of significant intersections by either independent or alternative company personnel. The results have not been verified by independent or alternative companies. This is not required at this stage of exploration. The use of twinned holes. No drilling results are reported. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Primary assay data for rock chips has been entered into standard Excel templates for plotting in Mapinfo. Discuss any adjustment to assay data. There are no adjustments to the assay data. Accuracy and quality of surveys used to locate drillholes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Sample locations were located by hand held GPS. Specification of the grid system used. The grid system for Broken Hill is MGA_GDA94, Zone 54. Quality and adequacy of topographic control. Standard government topographic maps have been used for topographic validation. The DGPS is considered sufficiently accurate for elevation data. Data spacing for reporting of Exploration Results. Sample spacing for the soil survey was on a 50 m by 50 m grid. 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. Estimations of grade and tonnes have not yet been made. Criteria JORC Code explanation Commentary Whether sample compositing has been applied. Sample compositing has not been applied. Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. Not relevant to soil and rock chip results. 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. Not relevant to soil and rock chip results. Sample security The measures taken to ensure sample security. Chain of custody is managed by Impact Minerals Ltd. Samples for Broken Hill are delivered by Impact Minerals Ltd by courier who