Announcement PDF Annual Report 2017 Contents Corporate Directory .............................................................................................................................. 2 Chairman’s Review ................................................................................................................................ 3 Board of Directors ................................................................................................................................. 5 Operations Review ................................................................................................................................ 6 Glossary ............................................................................................................................................... 18 Directors’ Report ................................................................................................................................. 19 Independent Auditor’s Report ............................................................................................................ 23 Consolidated Statement of Profit or Loss and other Comprehensive Income for the Year Ended 31 March 2017 .................................................................................................................................... 27 Consolidated Statement of Financial Position As at 31 March 2017 .................................................. 29 Consolidated Statement of Changes in Equity for the Year Ended 31 March 2017 ........................... 30 Consolidated Statement of Cash Flows for the Year Ended 31 March 2017 ...................................... 31 Notes to the Annual Financial Statements for the Year Ended 31 March 2017 ................................. 32 Directors’ Declaration ......................................................................................................................... 74 Additional Securities Exchange Information ....................................................................................... 75 Page | 1 Corporate Directory Directors Gregory Bittar Bradley Drabsch Michael Bowen Sonja Neame Share Registry Non‐Executive Chairman Managing Director Non‐Executive Director Non‐Executive Director Company Secretary Computershare Investor Services Pty Ltd GPO Box D182 Perth WA 6841 AUSTRALIA Tel: +61 8 9323 2000 Bermuda Paolo Balen Bermuda Administrative Services Ltd Trinity Hall 43 Cedar Avenue Hamilton HM12 Bermuda Auditors Australia (Local Agent and Joint Company Secretary) Nerida Schmidt Solicitors to the Company Registered Office of Incorporation Trinity Hall 43 Cedar Avenue Hamilton HM 12 BERMUDA Bentleys (WA) Pty Ltd Level 3 216 St Georges Terrace Perth WA 6000 AUSTRALIA DLA Piper Australia Level 31 Central Park 152‐158 St Georges Terrace Perth WA 6000 AUSTRALIA Tel: +61 8 6467 6000 Website www.trekmetals.com.au Registered Office – Australia Suite 5/56 Kings Park Road West Perth WA 6005 AUSTRALIA Tel: +61 8 6555 1879 Fax: +61 8 9398 4104 Postal Address PO Box 1796 West Perth WA 6005 AUSTRALIA Page | 2 Chairman’s Review Dear Shareholders The past year has seen considerable progress in the reorganisation and recapitalisation of your Company. Importantly the Company completed the agreement with major shareholder Auctus Resources Fund resulting in the Company becoming debt free. This has enabled the Company to strengthen its balance sheet and evaluate new project opportunities. The year also saw the completion of a 1 for 4 share consolidation, new capital raised from existing and new shareholders and the Company’s name change to Trek Metals Limited. The Board has focussed on minimising costs while embarking upon its strategy of securing new base and precious metals opportunities both in Australia and abroad. The most significant of these was announced on 2 November 2016 when the Company entered into an option agreement with Battery Minerals Limited (ASX:BAT, formerly Metals of Africa Limited, ASX:MTA) to farm into the highly prospective Kroussou Zinc‐Lead Project in Gabon. The results of the maiden drilling programme conducted by the Company at Kroussou early in 2017 highlighted Kroussou’s immense zinc‐lead potential. We continue to be active in identifying and assessing new project opportunities. The Company announced in October 2016 the resignation of Mr David Vilensky as Chairman of the Company and in January 2017 the resignation of Mr Marinko Vidovich as Director. I would like to take this opportunity of thanking them both for their contributions to the Company. Mr Bradley Drabsch was appointed Managing Director in September 2016. Mr Drabsch is a Geologist and has over 18 years' experience in the minerals exploration industry and understands what it takes to turn a small junior exploration company into a strong mining house. Ms Sonja Neame was appointed a Non‐Executive Director in January 2017. Sonja has 23 years mining industry experience and significant international experience in Africa, South America, Asia and the Pacific. Mr Michael Bowen was appointed a Non‐Executive Director in February 2017. Mr Bowen is a partner of the law firm DLA Piper practicing primarily corporate, commercial and securities law with an emphasis on mergers, acquisitions, capital raisings and resources. The Company continued to be frustrated by the status of the appeal lodged by organisations associated with the conservation movement in Zambia on 17 January 2014 against the decision of the Minister of Lands, Natural Resources and Environment Protection to approve the Company's 100% owned Kangaluwi Copper Project. The Company continues to await the Judge of the Lusaka High Court handing down his decision on the appeal. Taking this into account, the Board has minimised holding Page | 3 costs relating to this project and has taken the conservative accounting decision to impair the Kangaluwi Copper Project. Notwithstanding that this asset may have the potential to deliver shareholder value in the future, the Directors consider it prudent, in recognition of existing market conditions, to take this step. Lastly, I would like to thank all our staff, consultants and stakeholders for their ongoing efforts on behalf of the Company and look forward to progressing the Kroussou Project and other opportunities to create value for shareholders. Greg Bittar Chairman 16 June 2017 Page | 4 Board of Directors Bradley Drabsch Michael Bowen Sonja Neame Non‐Executive Chairman Managing Director Non‐Executive Director Non‐Executive Director Mr Bittar has a Bachelor of Economics and Bachelor of Laws (University of Sydney) and Masters in Finance (London Business School), and has over 15 years investment banking and resource sector experience in Australia and overseas – having worked for Bankers Trust, Baring Brothers Burrows and following the completion of his Masters in Finance in 2000, he joined Morgan Stanley for 10 years, working in London, Melbourne and Sydney. Brad is a Geologist and has over 18 years’ experience in the minerals exploration industry and understands what it takes to turn a small junior exploration company into a strong mining house. Mr Bowen graduated from the University of Western Australia with Bachelors of Law, Jurisprudence and Commerce. He has been admitted as a barrister and solicitor of the Supreme Court of Western Australia and is an Associate and Certified Practicing Accountant of the Australian Society of Accountants. Ms Neame has 23 years’ mining industry experience and significant international experience in Africa, South America, Asia and the Pacific. She has a keen interest in corporate governance and provides consulting services to clients establishing themselves overseas. Ms Neame is Managing Director of mining and exploration consultants Ravensgate and serves as Chairman of a Perth‐based school. Ms Neame was Administration Manager for mining consultants RSG/RSG Global where she played a major role in the group’s international expansion. Gregory Bittar He has extensive experience in public and private markets mergers and acquisitions, capital markets and strategic advisory assignments across a range of sectors including general industrials, metals and mining, mining services and energy. He is also Chairman of Millennium Minerals Limited and a non‐executive director of Horizon Oil Limited and ECM Limited. Brad has previously worked as Exploration Manager for Doray Minerals Limited (ASX: DRM), Montezuma Mining Company Limited (ASX:MZM) and Duketon Mining Limited (ASX:DKM) and in key exploration roles for Ivanhoe Mines (TSX: IVN) and Independence Group NL (ASX: IGO). Brad has a very strong technical and management background with a focus on remote greenfields mineral exploration. Brad has operated across Australia with experience in gold, base metals, iron ore, and rare earth metals exploration and throughout Mongolia exploring for large porphyry copper deposits. Mr Bowen is a partner of the law firm DLA Piper (formerly of Hardy Bowen which merged with DLA Piper on 1 July 2015) practicing primarily corporate, commercial and securities law with an emphasis on mergers, acquisitions, capital raisings and resources. Mr Bowen also serves as a Non‐Executive Director of IMF Bentham Limited. Ms Neame is a member of the Australian Institute of Company Directors and Governance Institute of Australia and has a Graduate Diploma of Business Management from the University of Western Australia. Page | 5 Operations Review KROUSSOU PROJECT ‐ GABON Trek Metals Limited (“TKM”, “Trek” or the “Company”) announced on 2 November 2016 that it had entered into an option agreement with Battery Minerals Limited (ASX:BAT, formerly Metals of Africa Limited) to farm into the highly prospective Kroussou Zinc‐Lead Project in Gabon (Figure 1). Intermittent historic exploration, conducted from 1962 to 1980 by the French Geological Society (BRGM), identified significant near‐surface base metal mineralisation with drill testing limited to a small portion of the target areas. Project details can be found in the TKM ASX announcement dated 2 November 2016. The key terms of the agreement are:  Drill Option – TKM to fund an initial drilling programme at Kroussou up to US$250,000.  Should TKM elect to exercise this option (prior to 31st July 2017), TKM will pay BAT US$240,000 in cash and/or shares as a reimbursement of costs and to secure the right to earn 30% of the Kroussou Project through the expenditure of US$1M within 12 months of the exercise date.  TKM can then earn a further 40% of the Project through the expenditure of US$3M in the subsequent 24 months.  TKM will then have earnt 70% of the Kroussou Project and agrees to free carry BAT through to the completion of a PFS (Pre‐Feasibility Study, as defined in JORC 2012). At that point BAT will have the option to contribute to the delivery of a DFS (Definitive Feasibility Study as defined in JORC 2012) or dilute, via standard industry formulae to 5%, whereby below that, its interest will convert to a 2.5% Net Smelter Royalty (NSR). TKM will have the option to buy back 1% of this royalty through the payment of US$1M to BAT. About the Project Zinc and lead mineralisation is hosted in Cretaceous sediments exposed on the margin of the Cotier (Coastal) Basin within preserved channels and onlapping unconformable Archaean and Paleoproterozic basement rocks (Figures 1 and 2). Base metal occurrences are mapped along the length of the Kroussou Project License (84km strike for ~1,500km2 of tenure). Only a limited number (2 of 18) of the exposed channels were drill tested by the Bureau de Recherches Géologiques et Minières (BRGM) historically, with both channels containing significant base metal mineralisation. Trek believes there is scope for the discovery of significant base metal mineralisation. Page | 6 FIGURE 1: LOCATION PLAN OF THE KROUSSOU PROJECT IN GABON The Dikaki Prospect, the area with the most historic drilling (small diameter diamond core) returned numerous shallow intersections of ore grade and width zinc plus lead mineralisation. Some of the better intersections reported included 2.3m @ 21.2% Zn+Pb from 0.9m, 8.3m @ 7.8% Zn+Pb from 13.6m and 7.0m @ 8.2% from 9.4m. These holes were drilled by the BRGM in 1979‐1980 (for further details refer to TKM’s ASX Announcement from 2 November 2016). Assaying of core by the BRGM was highly selective due to the high cost of analysis and transport back to France at the time. Only obviously mineralised (clearly visible galena – lead sulphide) core was sent for analysis, limiting defined and quantified mineralisation to these intersections. Sphalerite (zinc sulphide) is not always easy to identify in hand specimen and zinc rich core may not have been sent for assay. Further, BRGM limited their drill program to shallow holes (average depth of 16m) with numerous holes ending in mineralisation. The BRGM drill holes confirm multiple horizons of flat lying mineralisation. Numerous intersections of massive sulphide were reported in drill logs adding to the potential for significant zinc and lead mineralisation at the Kroussou project. The style of mineralisation is likely Mississippi Valley Type, however some Sedex Type characteristics are also observed. Petrology undertaken by BAT indicates relatively equal proportions of zinc and lead minerals and the sphalerite appears to have low iron content, making it more attractive for beneficiation. Page | 7 A field visit by Trek, identified significant zinc and lead mineralisation within modern drainage systems outcropping within the historically drilled channels. BAT previously announced confirmation of high grade rock chips at the Dikaki and Kroussou Prospects with results returning grades as high as 9.7% zinc and 33.1% lead (see ASX announcement by BAT from 7 April 2015). Trek released further positive rock chip results from the project area in an ASX announcement from 14 February 2017. Drilling As announced by the Company on the 11 May 2017 the drilling programme within the Dikaki Prospect at the Kroussou Project in Gabon is complete with results highlighting Kroussou’s immense zinc‐lead potential and provides Trek with confidence that the historic drilling information is reliable and can be used to assist future targeting. The drilling programme was designed to confirm the presence of near‐surface zinc‐lead mineralisation originally identified by the French Geological Survey (BRGM) as early as the 1960’s and provide Trek with the confidence that the broader basin was a viable exploration target. Assays returned from the drilling programme include (Figures 2, 3 and 4, Table 1): • • 24.7m @ 2.9% Zn eq from 2.0m (DKDD003) Incl. 2.8m @ 20.1% Zn eq from 7.7m 37.1m @ 2.0% Zn eq from 2.3m (DKDD001) Incl. 1.3m @ 8.6% Zn eq from 11m and 12.5m @ 4.0% Zn eq from 14.5m The twin of S1 (DKDD005), a hole drilled historically for which assaying was not undertaken, returned several broad, low‐grade intersections. This is pivotal because it shows the mineralisation may be present within the broader Cotier Basin, meaning the entire basin is now a target for exploration. This materially extends the target area for the project and demonstrates the prospectivity of the basin. Trek Managing Director Brad Drabsch said the results painted an extremely promising picture for several reasons. “The assays are strong in their own right with significant widths and grades,” Mr Drabsch said. “But they are also important because they show that the historic drilling results are relatively accurate and are a reliable means of identifying new drilling targets. “The result from the twin hole of S1 (DKDD005) is particularly crucial because it confirms that the entire basin at Dikaki, rather than just the channels, could be mineralised and is now a target. Page | 8 FIGURE 2: KROUSSOU PROJECT REGIONAL GEOLOGY WITH ROCK CHIP RESULTS SHOWING EXTENT OF SURFACE MINERALIZATION “This result, combined with the existing regional targets and those we expect to generate from historical drilling and upcoming geophysical surveys, highlights the outstanding potential to establish a substantial resource within the project.” A zone along the northern edge of the Dikaki Channel (Figure 3) has, in historical drilling, and now as part of the recently completed programme, yielded stratabound bands of high grade zinc and lead within a broad halo of lower grade mineralisation (Figure 4). The work conducted by the French Geological Survey (BRGM) did not highlight the broader lower grade, zinc rich zone, as their assaying was lead focussed and restricted to visually obvious lead Page | 9 mineralisation (galena, the main lead ore sulphide mineral is very easy to see in hand specimen whereas sphalerite, the main zinc sulphide ore mineral is more difficult to identify). Trek engaged Perth based consultancy CSA Global to evaluate the drill core from Dikaki. CSA commented in their report, specifically referring to Dikaki that: “The recent results show that the mineralisation at Dikaki reaches potentially economic grade and thickness, and also highlights that the limited BRGM sampling has not adequately outlined the extent of mineralisation. As a result, the channel target at Dikaki is far from fully tested, while the scale of the target zone is substantial. Considering the low strip ratio, there may still be potential for a substantial body of low to moderate grade economic mineralisation at Dikaki…” “Mineralisation at Kroussou shows great lateral extent along the Cretaceous unconformity, over 30 kilometres in the project area, indicating that the basin was productive for zinc‐lead‐silver mineralising fluids and experienced a major focused fluid flow event of uncertain timing and trigger. The location of Kroussou coincides with a major right‐step relay and transform zone that would have acted to focus fluid flow out of the basin onto the rift‐shoulder basin high, with additional focus provided by pinch out of basin aquifer units. High‐grade mineralisation is hosted in coarse clean high‐energy clastic sediments deposited in palaeochannels in the embayments, as well as replacing lacustrine carbonate rocks. Low‐grade halo mineralisation extends through the clastic stratigraphy with zinc more widely distributed than lead. Mineralisation is characterised by replacement of carbonate cement‐and open‐space fill in clean clastic units and subsidiary replacement of dolostone horizons. Chemistry and mineralogy are simple, characterised by Zn‐Pb‐Ag with anomalous Cu, with generally low‐iron sphalerite and associated with marcasite. The gangue is calcite and locally barite with no dolomite.” Further Exploration Dikaki Trek now plans to continue exploring the Dikaki Prospect in order to further scope out the mineralisation discovered to date. Additional surface sampling throughout the Dikaki channel will be completed as part of the broader regional survey that is underway. The higher grade zones are still open in most directions and present an excellent opportunity as near surface targets. In conjunction with this work, ground based geophysics (IP/EM) will be tested in order to establish it’s effectiveness in directly detecting the sulphide rich mineralised zones. Page | 10 Figure 3: Drilling within the Dikaki Channel Hole ID DKDD001 DKDD002 Easting Northing (WGS84 32S)* (WGS84 32S)* RL Dip/Azimuth Max Depth From (m) To (m) Interval Zn eq (%) Zn (%) Pb (%) 640,275 9,832,165 91 ‐90/000 39.4 2.3 39.4 37.1 2.1 1.1 1.2 Including 11.0 12.3 1.3 8.6 4.9 4.5 and 14.5 27 12.5 4.0 2.1 2.4 2.0 29.8 27.8 1.0 0.6 0.4 5.5 6.4 0.9 5.0 1.2 4.6 2.0 26.7 24.7 2.9 0.9 2.5 7.7 10.5 2.8 20.1 4.3 20.2 0.1 639,467 9,832,559 90 ‐90/000 47 Including DKDD003 639,704 9,832,495 102 ‐90/000 42.2 Including DKDD004 638,206 9,832,501 71 ‐90/000 49.87 2.0 27.9 25.9 0.6 0.5 DKDD005 637,305 9,832,491 64 ‐90/000 137.85 17 30 13 0.8 0.7 0.1 72.4 120 47.7 0.3 ǂ 0.2 0.1 0.2 and DKDD006 639,782 9,832,466 94 ‐90/000 25.75 Including DKDD007 640,075 640,330 639,782 Including 23.6 0.7 0.5 2.4 3.6 2.3 1.5 2.9 26.3 23.4 0.9 0.7 0.1 93 ‐90/000 27.7 5.4 10.7 5.3 1.9 1.7 0.3 9,832,164 77 ‐90/000 39.55 3.0 36.8 33.8 1.6 0.8 1.0 19 30.5 11.5 3.8 1.6 2.6 9,832,471 94 ‐90/000 41.45 7.1 31.5 24.4 0.8 0.6 0.2 15.2 18.2 3.0 2.1 1.2 1.0 Including DKDD009 25.8 18.6 9,832,349 Including DKDD008 2.2 16.2 Table 1: Significant assays from the recently completed drilling by Trek at the Dikaki Prospect Intervals reported using a minimum assay of 0.2% Zn eq and a maximum of 2m internal dilution except as indicated ǂ ‐ Internal dilution up to 4m included in this intersection * ‐ Some co‐ordinates differ slightly from previous reporting due to better GPS coverage Page | 11 Regional With the recognition that the broader Cotier basin is now a live target for more extensive base metal mineralisation, a surface sampling survey has been initiated. Samples will be collected within channels forming the priority 1 region (Figure 2) at a nominal spacing of 100m x 200m with the broader basin being sampled at 400m x 400m. Soil anomalies generated will be infilled appropriately with ground based geophysical follow‐up and then drill tested where necessary. Access to Infrastructure Access into the Kroussou project area has been greatly enhanced in recent times by the presence of several logging companies operating in the area. New, high quality roads and tracks have been established that allow for easy passage into the project from the bitumen highway that runs south from the capital city of Libreville. A river port at Yeno (Figure 1), approximately 65km, by vehicle, to the west of the project area along a good quality road, is used by the timber and the oil industries to barge equipment and product to Gabon’s main commercial shipping base at Port Gentil. This barge system presents an ideal, relatively cheap logistical solution for operations within the project to and from the main export facilities at Port Gentil. Figure 4: Section 640260mE across a zone of high‐grade mineralization within the Dikaki channel Page | 12 LAWN HILL PROJECT – NORTHERN TERRITORY As announced on 16 September 2016, Trek entered into a share sale agreement to purchase 100% of TM Resources Pty Ltd (“TM Resources”) which holds two exploration tenement applications in the Northern Territory known as the Lawn Hill Project. The tenements contain highly prospective geology with the potential to host large scale sediment hosted zinc‐lead deposits similar in style to the World Class Century deposit (> 150Mt @ 8.2% Zn + 1.2 % Pb + 33g/t Ag). FIGURE 5: LOCATION PLAN OF THE LAWN HILL PROJECT SHOWING THE MAJOR GEOLOGICAL REGIONS AND THE LOCATION OF THE CENTURY ZN+PB DEPOSIT Rocks of the Lawn Hill Platform, hosting the Century Zinc Deposit to the south‐east of the tenement applications in Queensland (Figure 5) are mapped across much of the tenement applications that form the Lawn Hill Project. In addition to being correlated with the rocks hosting Century, the Fickling Group sediments within the Lawn Hill Project can also be correlated with those of the McArthur Group which contain one of the World’s largest sediment hosted base metal deposits at McArthur River (HYC Deposit, > 200Mt @ 13% Zn+Pb). Page | 13 Almost No Previous Exploration Previous exploration has been sparse across the tenement applications with only one major phase of work being completed during the 1980’s. This work was very broad‐brushed and resulted in only two drillholes being completed. Numerous Zn, Cu and Pb occurrences are described on the Queensland side of the border (Figure 6), including the Walford Creek Project (73 Mt @ 1.4% Cu eq) currently being explored by Aeon Metals Limited, with nothing on the Northern Territory side, due, simply, to a lack of exploration. Key Deal Terms  AUD $10,000 cash payment up‐front  AUD $50,000 in TKM shares to be issued upon the grant of the tenements  AUD $1,000,000 upon the public release of a JORC 2012 Compliant Resource in respect of the Lawn Hill Project of between 550Kt Zn eq – 1.1Mt Zn eq  AUD $3,000,000 upon the public release of a JORC 2012 Compliant Resource in respect of the Lawn Hill Project of between 1.1Mt Zn eq – 2.2Mt Zn eq TKM anticipates the grant process may take between 12 – 24 months and looks forward to then progressing an aggressive exploration strategy at the Lawn Hill Project. The process involves negotiations with the Native Title holders in the area, the Waanyi/Garawa Aboriginal Land Trust. TM Resources commenced discussions with the Waanyi/Garawa Aboriginal Land Trust to facilitate the granting process and TKM looks forward to continuing these negotiations. Page | 14 FIGURE 6: PLAN OF THE LAWN HILL PROJECT TENEMENT APPLICATIONS SHOWING THE GEOLOGICAL UNITS HOSTING THE PROJECT. NOTE THE MINERAL OCCURRENCES ON THE QUEENSLAND SIDE OF THE BORDER STOPPING DUE TO THE LACK OF EXPLORATION ON THE NORTHERN TERRITORY SIDE Tenement Applications TKM is currently in the process of negotiating access arrangements to allow for the grant of the Lawn Hill Project Tenements. This process is expected to continue for the remainder of 2017. KANGALUWI COPPER PROJECT ‐ ZAMBIA Court Case The Company is awaiting written judgement by the Judge of the Lusaka High Court on the appeal lodged by organisations associated with the conservation movement in Zambia on 17 January 2014 against the decision of the Minister of Lands, Natural Resources and Environment Protection to approve the Company's 100% owned Kangaluwi Copper Project. The stay of execution remains in place pending the outcome of the appeal against the Minister’s decision. TKM continues to lobby to have the decision handed down, however, the Board has determined that it is unlikely that this situation will be resolved in the near term and has taken the conservative accounting decision to impair the capitalised exploration and evaluation expenditure for this asset to $Nil. Page | 15 CORPORATE Change of Name and Employee Share Option Plan (ESOP) The Company changed the Company name from Zambezi Resources Limited to Trek Metals Limited, effective on 18 January 2017. On that date, the ASX code changed from “ZRL” to “TKM”. The Company also established an Employee Share Option Plan (ESOP) which was approved and adopted at a General Meeting held on Friday, 30 December 2016. Changes to the Board The following changes to the Board occurred during the financial year ended 31 March 2017 and to the date of this report:‐  17 August 2016: Appointment of Mr Bradley Drabsch as Managing Director  30 September 2016: Resignation of Mr David Vilensky as a Non‐Executive Director and Chairman, and appointment of Mr Gregory Bittar as Chairman  17 January 2017: Appointment of Ms Sonja Neame as a Non‐Executive Director  31 January 2017: Resignation of Mr Marinko Vidovich as Non‐Executive Director  22 February 2017: Appointment of Mr Michael Bowen as Non‐Executive Director Change of Local Agent / Office On 19 January 2017 the Company announced the appointment of Ms Nerida Schmidt as Joint Company Secretary and Local Agent. Nerida holds a Bachelor of Commerce from the University of Western Australia, is a Certified Practising Accountant, a Fellow of FINSIA, is a Chartered Secretary and holds a Graduate Diploma in Company Secretarial Practice. Nerida has 25 years’ professional experience as the company secretary of a number of ASX and AIM listed companies in a variety of industries. Trek also advised of the new Administrative Office in Australia being relocated to Suite 5/56 Kings Park Road, West Perth WA 6005 Australia. Page | 16 TENEMENTS 1 Tenement Location G4‐569 1 Gabon G4‐588 1 Gabon EL31260 (appl.) Northern Territory EL31261 (appl.) Northern Territory 15547‐HQ‐LML Zambia 13170‐HQ‐LPL Zambia 13171‐HQ‐LPL Zambia 8573‐HQ‐LPL Zambia Holder Select Explorations Gabon SA (Wholly owned subsidiary of Battery Minerals Limited) Select Explorations Gabon SA (Wholly owned subsidiary of Battery Minerals Limited) TM Resources (100% owned subsidiary) TM Resources (100% owned subsidiary) Mwembeshi Resources Limited (100% owned subsidiary) Cheowa Resources Limited (Incorporated JV‐ 51% Glencore 49% TKM) Cheowa Resources Limited (Incorporated JV‐ 51% Glencore 49% TKM) Cheowa Resources Limited (Incorporated JV‐ 51% Glencore 49% TKM) Current Interest 0% 0% 100% 100% 100% 49% 49% 49% Option agreement to enter into JV to earn up to 70% COMPETENT PERSONS STATEMENT The information in this report that relates to exploration results is based on information compiled by Mr Bradley Drabsch, Member of the Australian Institute of Geoscientists (“AIG”) and Managing Director of Trek Metals Limited. Mr Drabsch has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity that is being undertaken to qualify as a competent person as defined in the JORC Code 2012. Mr Drabsch consents to the inclusion in the report of the matters based on the information in the form and context in which it appears. Page | 17 Glossary “ASX” Australian Securities Exchange Limited “geophysical” The application of physics to geological exploration, such as aeromagnetic, induced polarity or gravity surveys. "Inferred Mineral Resource" Classification within the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” (the JORC Code) that refers to that part of a Mineral Resource for which quantity and grade (or quality) are estimated on the basis of limited geological evidence and sampling. Geological evidence is sufficient to imply but not verify geological and grade (or quality) continuity. It is based on expl