Central Queensland Gold Projects

(70%, with option to earn up to 90%)

Highlights

Strategically located within the Drummond Basin, Central Queensland, a region that has >6.5moz gold endowment and a long history of ongoing mining
Mines historically produced ~93,000 oz Au (86,000 oz Au from Belyando and 7,000 oz Au from Lucky Break) from shallow open cut operations in late 1980’s/early 1990’s1
Compelling geology, vastly under-explored and under-developed :
Lucky Break:
- Open on all sides and mined to only ~30m depth – 2 known deposits within a 10km radius
- Considerable potential for the delineation of further significant economic resources as only oxidized ore was mined
Belyando:
- Deposit is situated in an envelope of gold mineralisation 280m long and up to 160m wide – drill tested to a maximum depth of 150 metres
- Ore zone is open at depth and laterally
Potential to delineate new virgin gold mineralisation through the assessment of multiple high-order Au/As soil anomalies

Transaction Terms

QX Resources has entered into an earn-in agreement with Zamia Resources Pty Ltd (Zamia Resources), a wholly-owned subsidiary of Zamia Metals Limited (Zamia) which owns four (4) exploration licenses (Permits) in the Central Queensland goldfields covering ~115km2 and housing two open pit historical gold mines, the Belyando and Lucky Break Mines, as well as multiple unexplored targets.

QX currently owns 70% of Zamia Resources and has the ability to earn up to a 90% interest by spending a further $1m on exploration and project development works.

Project Overview

Zamia Metals Ltd (ZM) holds via its 100% owned subsidiary Zamia Resources Pty Ltd (ZR)mineral assets comprising Four Exploration Permits for Minerals (EPMs) situated in the Clermont district of Central Queensland. Clermont is situated approximately 750km northwest of Brisbane and 250km southwest of Mackay. The area is accessed via the Peak Downs Highway from Mackay to Clermont, the sealed Gregory Development Road and unsealed country roads. The region consists of scattered low-rising hills surrounded by black soil and alluvium plains. The hills have proven to be good exploration targets due to quartz veining and silicification related to mineralisation.

The Charters Towers to Clermont belt in Central Queensland has been a significant gold-producing area since the 1860s, when gold was discovered at Clermont. The gold deposits are of epithermal style. Zamia’s 2008 discovery of the Anthony molybdenum deposit demonstrates the potential of the region to also host significant porphyry-style systems.

Figure 1: Drummond Basin regional endowment

Figure 2: Map of Locations of Zamia’s Exploration Tenements in Australia

Figure 3: Locations of Zamia’s Exploration Tenements in Central Queensland

Project Background

Lucky Break Gold Mine

The Lucky Break gold mine was mined in 1987/88, with 90,000 tonnes processed for ~7,000 ounces of gold production (see figure 4). The mine was built on a bulk low- to moderate-grade quartz vein systems. Lucky Break lies in the Lucky Break Shear Zone (LBSZ) and contains several slightly narrower tabular zones of altered, veined and brecciated LBSZ, termed Lucky Break Metasomatised Zone(s) (LBMZ). There are two LBMZ, with the eastern LBMZ strike-limited to the south end of the pit.

Mining by open pit stopped at the base of oxidation. The mineralisation is hosted by brecciated and silicified, haematitic quartz veins within a sheared fault zone of phyllitic schists of the Anakie Metamorphics. Unfortunately, as the old Lucky Break Mine was worked under a mining lease, no open file exploration reports have been located which may provide detailed exploration and evaluation information. The main structural trend in the region is north- north-west, at approximately 350 degrees true north, however, the dominant orientation of the mineralised quartz veins is approximately 070 degrees true north.²

Zamia employed Laing Exploration Pty Ltd (“Laing”) to conduct a detailed structural and metasomatic assessment of the mine. The Lucky Break shear zone is described as a classic brittle-ductile shear zone with significant internal local dilational sites. The veins dip at 60 to 75 degrees westerly but Laing interprets secondary dilational linear structures which plunge shallowly at about 25 to 30 degrees: to the north at the north end of the pit and to the south at the south end of the pit.¹

Sample lines at the north-west and south-east walls of the open cut where some of the mineralisation is well exposed showed that the highest grade gold was present in a “milled breccia” rock type which occurs in narrow veins and lenses within the vein system.²

Figure 4: Lucky Break Gold Mine partly backfilled with tailings (looking north). Pit excavated to original depth of 15-30m

Belyando Gold Mine

Discovered in the 1980’s by rock chip sampling and shallow drilling, the historical Belyando gold mine has previously produced ~86,000 ounces of gold between the mid 1980’s and early 1990’s (see figure 5).³ The gold from the Belyando mine was processed initially by carbon-in-pulp and subsequently by cyanide heap leaching. The mine was developed on multiple quartz-sulphide lodes, with the lode system at Belyando remaining open down dip, down plunge and along strike from historical mining areas.

Regionally, Zamia has uncovered coincident gold and arsenic soil anomalism as a vector to gold mineralisation close to Belyando. Four untested, virgin gold-in-soil geochemical anomalies present as early targets of particular interest is the partially defined Ibis gold anomaly with its associated, well-developed coincident arsenic soil anomaly. These targets could be followed up with RAB bedrock-interface geochemical sampling.

Figure 5: Belyando pit and tailings

¹ Zamia Gold Mines Limited initial public offering prospectus page 54
^{2 3} Zamia Gold Mines Limited initial public offering prospectus page 56

Recent Exploration

QX Resources has recently commenced a soil sampling program at the Disney tenement. A reverse circulation (RC) drill program will be undertaken following interpretation of the soil samples with the results determining the final scope of the drill program.

The soil sampling program is being undertaken to confirm the previously defined gold (Au) and arsenic (As) anomalies at the Ibis prospect and the Au anomaly at Big Red to the SW of the previously drilled prospect and better define the extent of the anomalies.

Sampling will mirror the previous methodology (-1mm B horizon) but on nominal 50m infill. The program will comprise approximately 300 samples with additional sampling of mineralized float / sub-crop areas identified.

The Big Red prospect (refer Figure 6 yellow circle) was discovered by BMA Gold Ltd (BMA) during reconnaissance traversing. BMA are said to have identified a N-NE- trending zone of hydrothermal breccia/vein float and sub crop on a subdued rise of red brown granitic soils (refer Figure 6 yellow line inferred trend). The quartz vein/breccia apparently exhibited multiple phases including open space, comb, cockade and crystalline textures hosted by a silicified hornblende granite.

BMA carried out some shallow costeaning of the vein system which returned anomalous values between 0.28g/t and 0.92g/t Au from quartz veins in a weakly mineralised 4m wide alteration zone with sporadic sub crops of quartz veins protruding through the soil for 200 metres along strike. Three RCP holes were drilled by BMA in 2005 (black triangles) at -60° to 285° to test the zone to 120m vertical depth. All holes intersected a quartz-veined zone. Gold-anomalous intervals typically occurred within or adjacent to the main quartz vein zone within 5-15% by volume of crustiform-comb textured milky quartz +/- pyrite veinlets.

The quartz zones occur within silica-sericite altered granite with trace fluorite noted at the bottom of RCP hole WBRRC-001. Zamia’s gold soil samples over the BMA Big Red prospect fall within the range of 10 to 19ppb. This soil expression correlates with stated anomalous gold in costean and drill holes (refer to Zamia’s announcement 31 July 2015 at

www.zamia.com.au)

Figure 6: Classified gold assay results from Zamias 2015 infill soil sampling over the Big Red Gold Project. Yellow lines represent new lines of soil samples and the white lines infill samples

Central Queensland region – an excellent address

Zamia Resources Pty Ltd’s mineral assets comprise four Exploration Permits for Minerals (EPMs) situated in the Clermont district of Central Queensland. Clermont is situated approximately 750km northwest of Brisbane and 250km southwest of Mackay. The area is accessed via the Peak Downs Highway from Mackay to Clermont, the sealed Gregory Development Road and unsealed country roads. The region consists of scattered low-rising hills surrounded by black soil and alluvial plains. The hills have proven to be good exploration targets due to quartz veining and silicification related to mineralisation.

The Charters Towers to Clermont belt in Central Queensland has been a significant gold-producing area since the 1860s, when gold was discovered at Clermont. The gold deposits are of epithermal and/or mesothermal style. Zamia’s 2008 discovery of the Anthony molybdenum deposit demonstrates the potential of the region to also host significant porphyry-style systems.

Tenement ID	Project Name	Grant	Expiry	Area km2
EPM 14790	Mazeppa	12.01.2006	10.01.2026	25
EPM 15145	Mazeppa Extended	11.08.2006	10.08.2022	57
EPM 17703	Disney	30.01.2012	29.01.2022	20
EPM 19369	Amaroo South	30.01.2012	29.01.2022	13

Table 1: Tenement Details

Tenement No	Prospect	Commodity	Mineralisation style
EPM 14790	Lucky Break	Au	Multiple quartz lodes on structures
	Dead Horse Bore	Mo	Porphyry, extensions to Anthony deposit
EPM 15145	Anthony	Mo	Porphyry
	Belyando	Au	Multiple quartz lodes on structures
EPM 17703	Apache	Au	Epithermal / quartz lodes
	Bendee	Au	Epithermal / quartz lodes
	Big Red	Au	Epithermal / quartz lodes
EPM 19369	Amaroo South		Porphyry / intrusive related gold
Source: Zamia Metals Limited

Table 3: Significant identified prospects

Central Queensland Gold Projects

Highlights

Transaction Terms

Project Overview

Project Background

QX Resources Ltd