TIDMPDZ

RNS Number : 1741O

Prairie Mining Limited

06 October 2021

PRAIRIE MINING LIMITED

   NEWS RELEASE   | 6 OCTOBER 2021 

PRAIRIE ACQUIRES INTEREST IN HIGHLY PROSPECTIVE GREENLAND COPPER PROVINCE

Prairie Mining Limited (Prairie or Company) is pleased to advise that the Company has entered into an Earn-in Agreement (EIA) with Greenfields Exploration Ltd (GEX) to acquire an interest of up to 80% in the Arctic Rift Copper project (ARC or Project) in Greenland.

Highlights:

-- Significant, large-scale project ( 5,774km(2) license area) with historical exploration results indicative of an extensive mineral system with potential to host world-class copper deposits

-- The ARC mineral system is known to be prospective for basalt, fault, and sedimentary rock-hosted copper mineralisation however, it remains virtually unexplored , giving the Company a first mover advantage in a major new metallogenic province

   --     Historical field programs identified widespread copper-silver occurrences at surface: 

o geochemical sampling found that 80% of stream sediment samples contain native copper

o native copper is found in situ or as float, with individual clasts of native copper weighing up to 1 kg+

o high grade copper sulphides, grading up to 2.15% Cu and 35.5g/t Ag over 4.5m true width, are known from trench sampling of fault zones within sediments

o assay results from individual samples are much higher grade, including:

-- 53.8% Cu and 2,480g/t Ag

-- 20.7% Cu and 488g/t Ag

-- 12.5% Cu and 385g/t Ag

   --   9.0% Cu and 112 g/t Ag 
   -- 7.9% Cu and   53 g/t Ag 

-- 5.3% Cu and 112 g/t Ag

-- 5.0% Cu and 304 g/t Ag

-- 4.0% Cu and 82 g/t Ag High priority target covering 640 km(2) already identified with near-term discovery potential ( Minik Anomaly ) which has the highest copper grades that are proximal to a coincident gravity, conductivity and magnetic anomaly in the north-eastern portion of ARC

-- Greenland is a mining friendly jurisdiction with strong Government support for expanding its mining industry, simple laws and regulations, and a competitive fiscal regime

-- Greenland is increasingly recognised as one of the last great mineral resource frontiers having recently attracted interest from Rio Tinto, Anglo American, DeBeers, Glencore, Trafigura, and IGO, as well as KoBold Metals who have joint ventured with Bluejay Mining to explore in Greenland for critical materials used in EVs. KoBold is backed by Microsoft co-founder Bill Gates, Bloomberg founder Michael Bloomberg, Amazon founder Jeff Bezos, and Ray Dalio, founder of the world's largest hedge fund Bridgewater Associates

-- Strong pipeline of news flow is expected as Prairie mobilises the award-winning GEX exploration team who have extensive operating experience, including managing the Frontier Project in JV with IGO, and well-established relations with government and other key stakeholders in Greenland

-- The initial exploration program creates the potential for multiple discoveries with the objective of delineating relatively highly certain, drill-ready targets and will focus on high-resolution satellite mapping, a range of geophysical surveys, widespread geochemical sampling/analysis and hand-held core drilling

The Company will earn an 80% interest in the Project by:

   a)   spending A$3,500,000 on the Project within three years to earn a 51% interest; 

b) spending a further A$3,500,000 on the Project within four years to earn a further 19% interest (taking the total interest to 70%); and

c) spending a further A$3,000,000 on the Project within five years to earn a further 10% interest (taking the total interest to 80%).

Thereafter, the parties must contribute on a pro rata basis or be diluted. Prairie must also issue GEX 3 million shares at the commencement of the JV (escrowed for 12 months). Further terms of the EIA are outlined below in the Commercial Terms section.

Prairie's CEO Mr Ben Stoikovich commented: "The ARC project marks Prairie's first move into the energy metals space. Copper is integral to the energy transition, with copper consumption over the next 25 years forecast to be more than has ever been mined. The transaction gives Prairie a first-mover advantage in what we think is a prolific but virtually unexplored major new metallogenic province, in a pro-mining jurisdiction with a highly experienced Greenland exploration team utilising cutting-edge exploration to maximise the potential for discovery of a world class copper deposit from the outset".

Entitlements Issue

To provide funding for new and current activities the Company will undertake a one (1) for ten (10) pro rata non-renounceable entitlements issue at $0.25 (GBP0.16/EUR0.15/PLN0.72) per share ( Entitlements Issue ) to raise up to $5.8 million before costs.

Eligible shareholders will be entitled to acquire one (1) new ordinary share (New Share) for ten (10) ordinary shares held at the record date (5 November 2021). New Shares under the Entitlements Issue will be offered at $0.25 (GBP0.16/EUR0.15/PLN0.72) per share.

Dispute with the Polish Government

The Company will continue to defend its interests in Poland through International arbitration claims ( Claim ) against the Republic of Poland under both the Energy Charter Treaty ( ECT ) and the Australia-Poland Bilateral Investment Treaty ( BIT ) (together the Treaties ).

Prairie's Claim alleges that the Republic of Poland has breached its obligations under the applicable Treaties through its actions to block the development of the Company's Jan Karski and Debiensko mines in Poland which has effectively deprived Prairie of the entire value of its previous investments in Poland.

For further information, please contact:

 
 Prairie Mining Limited             Tel: +44 207 478 3900 
 Ben Stoikovich, Chief Executive   Email: info@pdz.com.au 
  Officer 
 Sapan Ghai, Head of Corporate 
  Development 
  Kazimierz Chojna, Commercial 
  Officer 
 

To view this announcement in full, including all figures and diagrams, please visit the Company's website at www.pdz.com.au

GREENLAND'S RAPIDLY EXPANDING RESOURCES SECTOR

Greenland is increasingly recognised as one of the last great mineral resource frontiers, and has recently attracted interest from mining majors.

Private mineral exploration company KoBold Metals recently signed an agreement with London-listed Bluejay Mining (JAY.L) to explore in Greenland for critical materials used in electric vehicles. KoBold's principal investors include Breakthrough Energy Ventures, a climate and technology fund backed by Microsoft (MSFT.O) co-founder Bill Gates, Bloomberg founder Michael Bloomberg, Amazon (AMZN.O) founder Jeff Bezos, and Ray Dalio, founder of the world's largest hedge fund Bridgewater Associates. Other KoBold investors include Silicon Valley venture capital fund Andreessen Horowitz and Norwegian state-controlled energy company Equinor. KoBold have committed US$15 million in exploration funding to earn a 51% interest in the Disko-Nuussuaq Ni/ PGE project on Greenland's west coast.

ARC PROJECT SUMMARY

Prairie and GEX consider the observed geological setting and features of ARC to be indicative of an extensive mineral system capable of hosting world-class copper deposits.

The large scale of the mineral system, widespread copper anomalism, combined with dual mineralising events are analogous to the largest copper systems known worldwide. Accordingly, Prairie considers that ARC has the potential to be a globally significant metallogenic province.

Very high-grade copper mineralisation identified at ARC is associated with the Minik Anomaly, a coincident magnetic-electromagnetic-gravity feature in an area where there is a change in oxidation state and widespread native copper in stream sediments. These features are presented as the footprint of a large-scale hydrothermal system. The frequency and size of the native copper clasts, and the high grade of the copper-silver sulphides that are exposed at the surface, bode well for the probability of discovery.

There are multiple additional identified targets and favourable geological settings to be tested within the ARC project area, including:

-- the highly anomalous basalt is a high priority target that has not previously been the focus of commercial exploration. These basalts are the source of the native copper.

-- the sulphide mineralised faults passing through these basalts into the overlying sediments have been subject to first pass exploration and shown to be rich in copper and silver. The high-grade sulphides in these faults will be the focus of further exploration.

-- the permeable coarse-grained sandstone within the Jyske Ås Fm has high grade copper that is effectively unexplored. This stratiform mineralisation adds the potential for significant lateral extension of the known mineralisation exposed in the faults of the Discovery Zone.

As such, the extensive ARC mineral system is known to be prospective for basalt, fault, and sedimentary rock-hosted ('sediment-hosted') mineralisation that despite the attractive grades, is virtually unexplored.

ARC PROJECT OVERVIEW

The ARC project consists of a single Special Exploration Licence, covering an area of 5,774km(2) , in northern Greenland.

ARC is located within an inner-fjord system and covers most of J.C. Christensen Land, a promontory that is flanked to the north and northwest by Independence Fjord, and to the southeast by Hagen Fjord. The expansive cliff faces of the fjords provide a unique insight into the structural geology of ARC and aid in geological interpretation.

The project area is uninhabited, with the nearest permanently inhabited site being the Station Nord military facility, located approximately 200km to the east.

The region is an Arctic desert, vegetation and wildlife are minimal and there are no designated sensitive areas within the Project. Flat, low elevations are typical of northeast J.C. Christensen Land and the rest of the area consists of high plateaus with elevations around 800m above sea level, with incised 'U' shaped valleys.

The big fjords that surround the Project reliably provide deep-water access throughout the ARC licence. An airstrip which has been used to land heavy-lift aeroplanes is adjacent to the Project, and sites suitable for smaller airstrips are located within it.

As a jurisdiction for exploration and mining, Greenland has many favourable attributes, such as being politically stable, pro mining, one of the lowest rates of corruption in the world, simple laws and regulations, low royalties, favourable tax treatment for mineral projects, and good access to markets.

Project Geology and Exploration Potential

The ARC mineral system is known to be prospective for basalt, fault, and sediment -hosted copper mineralisation however, it remains virtually unexplored. This provides the Company and GEX with essentially a first mover opportunity in a metallogenic province with the potential to host world class copper deposits.

ARC is located near an ancient triple junction that is associated with an ascending mantle plume in Mesoproterozoic times. This mantle plume emplaced a large amount of basalt lavas over a short period of time.

ARC contains a sequence of Mesoproterozoic-aged sediments sandstones belonging to the Independence Fjord Group that have been intruded by highly altered dolerites and overlain by 1.2km of Mesoproterozoic-aged flood basalts ('Zig-Zag Fm' basalts). In turn, the basalts are overlain by 1.1km of Neoproterozoic-aged clastic and carbonate sediments belonging to the Hagen Fjord Group. The lower portion of the Hagen Fjord Group is dominated by sandstones and siltstones, and the upper part by limestone and dolomites.

The metamorphic grade of the Zig-Zag Fm basalts is of the zeolite facies, and the Hagen Fjord Group sediments show lower grade metamorphism. Due to the location within a passive margin, there is adequate preservation aside from mechanical erosion.

The strata dips sub-horizontally (1-3deg) to the northeast and hosts fault orientations parallel to major regional structures Folding is almost non-existent.

Copper mineralisation occurs in both the Zig-Zag Fm basalts and Hagen Fjord Group sediments. The basalts are known to contain in situ native copper, which is found extensively in the surrounding drainage systems. Significantly, native copper specimens weighing up to 1kg have been recovered during historical exploration campaigns.

The age, setting and mineral composition makes the Zig-Zag Fm copper analogous to the copper deposits of the Michigan Upper (Keweenaw) Peninsula, and a primary source of copper for anomalies reported in the overlying sediments. Fault breccias observed to transect the basalts and overlying sediments are interpreted to represent fluid pathways. These breccias, which are up to 25m wide, also show copper mineralisation.

Copper and associated silver mineralisation occur in the source rocks, faults, and in 'classic' deposition sites. The highest copper grades are close to geophysical gravity, magnetic and electromagnetic anomalies.

Previous Work within ARC and Northern Greenland

ARC, and Northern Greenland in general, have been subject to scant exploration, with prospecting being restricted to reconnaissance-scale commercial exploration and government/academic work. No work has occurred within ARC for over a decade.

Mapping and Sampling

Initial geological expeditions took place as early as 1921, with a handful of follow-up geological expeditions taking place from the late 1940's to the late 1960's.

The first commercial investigation of the geology in northern Greenland was conducted between 1969 and 1972 by the Greenarctic Consortium (Greenarctic). The work involved a first pass evaluation of a 40,000 km (2) area encompassing the region around Independence Fjord. The 1969 field program was successful in identifying native copper occurrences at two locations in the Mylius-Erichsen Land, to the southeast of ARC. In 1970, an airborne photogeological survey and interpretation was commissioned over the area. In 1972, Greenarctic conducted its second field mapping program over a 5,000 km (2) exploration licence on Heilprin Land and southern Peary Land, to the west of ARC, and identified occurrences of sediment-hosted copper-silver sulphides.

Between 1978 and 1980, the Greenland Geological Survey (GGS) conducted a campaign in the region. The program successfully identified sediment-hosted copper sulphides and oxides. The regional mapping program included stream sediment sampling for geochemistry, microscopy and heavy mineral analysis. Between 1993 and 1995, the GGS conducted a 1:500,000 scale geological mapping exercise, with mapping and stream sediment surveys identifying sediment-hosted copper sulphides and additional native copper bearing basalts.

Modern exploration activity was conducted between 2010 and 2011 by Avannaa Resources Limited (Avannaa). In its first year, Avannaa focussed its work in a small area in the northern part of ARC, known as Neergaard North. The work involved mapping and sampling designed to follow up on sediment-hosted copper sulphides identified by government workers in the 1990s. The program was successful in identifying the three brecciated faults that comprise the 'Discovery Zone'. In response to this success, trench sampling was also performed.

In 2011, Avannaa greatly increased its exploration by conducting a heli-supported reconnaissance program over a large area to test the copper prospectivity of various stratigraphic positions, as well as extending the length of the 'Discovery Zone'. The 2011 program extended the strike length of the Discovery Zone breccias from 800m to over 2km before disappearing undercover, and successfully identified copper anomalous stratigraphic horizons over the entire licence area.

Geochemistry

There are 549 known geochemical samples from within J.C. Christensen Land. The samples comprise a mix of Government and private sector programs:

-- 310 rock chip, trench and grab samples from the 2010-2011 Avannaa exploration program. These samples cluster in northern ARC;

-- 145 rock chip samples from 1978-1980. The samples are heterogeneously distributed and comprise 1 litre of unsieved sediment. Native copper occurs in 80% of samples from ARC; and

--

   --    94 stream sediment samples collected by the GGS from 1993-1994. 

In government storage in Copenhagen, there are 405 samples of which 311 are unique, and 40 have been subject to more recent analysis. In addition, there were 227 stream sediment samples that were analysed in the field using handheld X-ray fluorescence (XRF) equipment by Avannaa in 2011. The XRF samples were left in the field. No other analysis methods were used.

The historical field programs identified widespread copper-silver occurrences at surface:

o native copper was found in situ or as float, with individual clasts of native copper weighing up to 1 kg+

o high grade copper sulphides, grading up to 2.15% Cu and 35.5g/t Ag over 4.5m true width, are known from trench sampling of fault zones within sediments

o assay results from individual samples are much higher grade, including:

-- 53.8% Cu and 2,480g/t Ag

-- 20.7% Cu and 488g/t Ag

-- 12.5% Cu and 385g/t Ag

   --   9.0% Cu and 112 g/t Ag 
   -- 7.9% Cu and   53 g/t Ag 

-- 5.3% Cu and 112 g/t Ag

-- 5.0% Cu and 304 g/t Ag

   -- 4.0% Cu and   82 g/t Ag 

Geophysics

There are five identified geophysical surveys within or covering ARC. The most recent survey that focussed on ARC was conducted over 20 years ago. In 1971, the Greenarctic Consortium funded an airborne magnetic survey over much of northern Greenland. The first-pass, low-resolution survey flew with a grid spacing of 2.5km by 15km and at an altitude of 1.85km.

In 1978, the Geodetic Institute (Copenhagen) conducted a land-based gravity survey of North Greenland with an irregular grid. A gravity map was produced with contours of 20mgal. A gravity high was identified in the north of Hagen Fjord (within northern ARC), which was attributed to the Zig-Zag Fm and Midsommersø Intrusions.

Between 1993 and 1996, the Alfred Wegener Institute (AWI) for Polar and Marine Research conducted a high-level aeromagnetic survey of eastern and northeastern Greenland. The survey flew using inline and crossline direction from 10km to 40km and the altitudes up to 3,700m above sea level.

In 1998, the Greenland Government commissioned an airborne electromagnetic-magnetic survey (AEM1998) which focussed on the northern portion of J.C. Christensen Land. The survey had 400m line spacing with 4,977 line kms flown. The total magnetic intensity was highest in the middle of the survey area. The apparent electromagnetic conductance indicates linear anomalies that are consistent with the regional mapping of the lithology and faults in the area.

In 2009, a collaborative effort between academics and geological surveys with Arctic interests compiled new gravity and magnetic anomaly maps under the Circum-Arctic Mapping Project (CAMP). The project merged potential field data from the collaborating institutes to create seamless gravity and magnetic maps of the Arctic. The magnetic map has a grid resolution of 2km x 2km and the gravity map has a resolution of 10km x 10km.

In 2011, satellite imagery was processed over J.C. Christensen Land, Mylius-Erichsen Land, Heilprin Land, and Erlandsen Land. ASTER multispectral data was used to identify lithologies data which was processed to produce a digital elevation model (+/-10m vertical within a 15m radius).

In 2021, the Government updated its data portal to include a new gravity data set that was compiled by the Technical University of Denmark (DTU). The modelled responses in the DTU honor the ground gravity measurements shown in. The gravity high located in northeastern JC Christensen Land is also coincident with the magnetic high identified by AWI and in AEM1998.

Identified Prospects and Target Areas

Discovery Zone

The most advanced prospect within ARC is the copper-silver bearing Discovery Zone, located at the northern end of Neergaard Dal. The Discovery Zone was identified in 2010 as a follow up to a geochemical anomaly identified by the GGS in 1994.

The Discovery Zone is comprised of at least three parallel breccia faults trending northwest-southeast, with the furthest faults being around 2km apart. The faults are traced for a minimum of 2km along strike before they disappear underneath moraine. The Discovery Zone is open in both directions.

The width of the fault breccias is variable, ranging from 1m to 25m thick. The host lithology is red sandstones of the lower Jyske Ås Fm, and they are proximal to outcrops of Zig-Zag Fm. The breccias have copper sulphide and copper oxide mineralisation. The copper-bearing species include chalcocite, brochantite, bornite, chalcopyrite, and malachite. The mineralisation is expressed in two main forms, within which there are two sub-forms:

1. Breccia bound. Mineralisation occurs in thin quartz-dominated veining within the fault breccia and contains disseminated copper sulphides. Assays from this material grades up to 53.8% Cu and 2,480g/t Ag.

Within the breccia-bound mineralisation are intensely potassic, unconsolidated materials known as 'Black Earth'. The multiple but discontinuous 0.7m to 3m horizons have lengths between 2m to 50m. The Black Earth material contains high grades of copper and silver, with reported true widths of 4.5m grading 2.15% Cu and 35.5g/t Ag (Chip Line #7, sampled interval 5.25m, estimated true width 4.5m).

2. Stratiform. Mineralisation occurs immediately adjacent to the faults and comprises lenses and blebs of chalcocite and bornite measuring from mm-scale to 15cm long.

Within the stratiform mineralisation is a poorly consolidated sandstone that is identified as a potentially vast target horizon within the Jyske Ås Fm. The outcrop shows pervasive interstitial chalcocite, bornite and chalcopyrite.

Zig-Zag Formation

Native copper float frequently occurs near the Zig-Zag Fm in the area around the Discovery Zone and Neergaard Valley. Outside of ARC a 1.5m long chip sample returned a significant grade of 1.97% Cu, and a grab sample returned 3.17% Cu from chalcocite filled vesicles. The Company and GEX consider the widespread occurrence of low-grade copper mineralisation, the frequent presence of sizeable native copper, and the sampled grades within the licence to be very significant.

Campanuladal Formation

The Campanuladal Fm was known to contain anomalous copper since the late 1970s. Government work in the early 1990s managed to trace chalcopyrite and galena for several kilometres within the central part of the formation. Disseminated copper sulphides (often chalcopyrite) are widespread, and one such location is close to the Discovery Zone in the northeast corner of ARC.

Minik Anomaly

The empirical geophysical and geochemical evidence shows multifaceted anomalism within ARC. The Minik Anomaly is defined by multiple coincident, and proximal, geophysical (magnetic-electromagnetic-gravity) and geochemical anomalies over a 640 km(2) area in the north-eastern portion of ARC where high grade copper mineralisation has been identified. This large scale, high priority target area will be a key focus of the first field campaign.

Other Commodities

North Greenland contains multiple indications of mineralisation, and whilst copper is the target commodity for the ARC, the region to the north includes a large-scale zinc deposit, and there are indications of nickel-platinum group elements within the ARC licence. The known mineralisation occurs across a range of stratigraphic positions and is believed to be the result of more than one mineralising event.

The mafic intrusions of the Midsommersø Intrusions are prospective for magmatic-hosted nickel-copper-platinum group element ( Ni-Cu-PGE ) mineralisation. The Company and GEX identify supportive evidence in both the intrusions and their extrusive equivalents in the overlying Zig-Zag Fm.

The basal flows of the Zig-Zag Fm basalts show a marked depletion in nickel. Such a depletion suggests that the nickel may have been deposited into sulphides and conceptually, as nickel sulphide deposits. There has been no effective commercial work on testing the nickel sulphide potential of ARC.

Target Generation - Deposit Types

In terms of exploration targeting at ARC, the known mineralisation is ascribed to two distinct deposit types:

-- Sediment-hosted stratiform copper - within this family of deposit types, ARC is analogous to the super-giant Katangan Basin ('Copperbelt'), the Zechstein ('European Kupferschiefer') and the White Pine-Presque Isle ('White Pine') deposit models. Such deposit models account for a large proportion of the world's highest quality mineral deposits due to their potential favourable size and grade combinations.

-- Basaltic native copper - which is a comparatively poorly understood deposit type. Such deposits occur around the world however, documentation of the American and Canadian deposits is most readily available (e.g., Keweenaw, Michigan; Kennecott, Alaska; Sustut, British Columbia). Of the historical native copper districts, the Keweenaw Peninsula dominates the literature and production statistics are available. The Keweenaw Peninsula had a pre-mining endowment of 8.9Mt of native copper, of which 6.5Mt was mined for 100 years from the 1840's. Most of the commercial production of native copper was from stratiform deposits, which facilitated high production rates and early introduction of mechanisation. Notably, mining from 'fissures' produced masses of native copper weighing hundreds of tonnes.

The closest geological analogue to ARC based on present understanding is the Keweenaw Peninsula which had a known pre-mining copper endowment including both native and sulphidic copper of over 16Mt and was a prolific mining district as noted above. Whilst the Keweenaw Peninsula is notable for its native copper, the sulphidic sediment-hosted mineralisation is also significant. The endowment of the copper sulphide mineralisation contained in two well-known deposits is around 4.5Mt Cu. The copper sulphide deposits also contain substantial amounts of silver, with the White Pine deposit having yielded 50Moz of silver, as part of the 2.0Mt of copper that was mined with average grades of 1% Cu and 12g/t Ag. The White Pine mine was in production between 1953 and 1996. The other known deposit is the Copperwood copper sulphide deposit which is subject to current economic evaluation.

In addition to copper mining, the Michigan mineral province also contains a high-grade magmatic nickel-copper sulphide-bearing deposit, Eagle Mine, discovered by Rio Tinto and now operated by Lundin Mining. Commercial production commenced from Eagle Mine in 2014. The mine is expected to produce 163Kt of nickel, 134Kt of copper and accessory platinum, palladium, and cobalt over its estimated nine-year mine life.

Exploration Plan

The Company and GEX will take a systemic approach to exploring ARC in the most cost-effective and sustainable manner. The near-term forward work program includes:

-- Undertake a widespread geochemical sampling campaign i.e., stream sediment and rock chip sampling. Historical data is mainly clustered, and the southern portion of ARC is mostly unsampled. The intention is for rock samples to be collected with a handheld drill (41mm diameter) to produce core that can be subject to non-destructive analysis.

-- Perform passive seismic over the Minik Anomaly and 3D induced polarisation ( IP ) surveys over the Discovery Zone. Seismic and IP data will also provide more context to the gravity-magnetic anomaly. Passive seismic tomography does not require explosives or vibration equipment to collect data, and has a low environmental impact.

-- Conduct high-resolution satellite mapping. Since the last exploration activity, commercial products have become available at a 30cm pixel resolution. These products include multispectral bands at coarser resolutions that can aid in identifying different types of alteration type and intensity, lithologies, and structures.

-- Re-analyse historical samples. The assay suite used in the government-funded work is very restricted. The Company has located the storage locations of 311 unique samples that are suited to comprehensive, modern analysis methods. The higher precision and additional element information, along with mineral species identification, can provide new insights that can help refine the exploration search space.

   --    Reprocess airborne magnetic data. 

-- Create a three-dimensional ( 3D ) model. The available geological maps, reprocessed geophysics and satellite imagery can be incorporated into a low-cost 3D model. The purpose of this model is to provide an initial framework design that can be easily validated by field inspection.

The intent is for the above work and resultant geological model to provide refined targets to be tested by deeper diamond drilling during a second field campaign, and to aid in generating more advanced exploration targets undercover within ARC and its immediate surrounds.

The proposed exploration above could be completed within 18 months and creates the potential for discovery from the outset. This approach has low cost per unit of information gained and permits a significant increase in the targeting accuracy. The Company envisages that the proposed work program will yield relatively high-certainty, drill-ready targets.

Exploration Team

As part of the transaction, Prairie has secured the services of GEX as project managers for an initial two-year period, including GEX founder and principal exploration geologist, Dr Jonathan Bell.

GEX have been working in Greenland since 2017, with extensive operating experience across exploration and logistics in the Arctic environment managing the Frontier project as part of the JV with ASX listed IGO Ltd (ASX:IGO) ( IGO ).

GEX are proven prospect generators with their first Greenland project, Frontier, progressing from prospect stage to drilling on the back of seven weeks of helicopter reconnaissance and no geophysics.

GEX have established a solid reputation with the Government of Greenland, other relevant stakeholders, and have a 100% safety record. In 2019 GEX was awarded Greenlandic Prospector and Developer of the Year. This award is granted by the Government of Greenland to companies or people who have been active in exploration and have shown initiative and innovation, as well as inspiring other companies in how to explore in Greenland. Other requirements for the award are good environmental practices and social responsibility. The government of Greenland commented on making the award that:

"Greenfields Exploration's projects in East Greenland, the quality and methods of exploration, attitude towards high-quality data, joint venture with IGO and ability to attract investment left no doubts or questions to be recognized by the Government of Greenland."

GREENLAND OVERVIEW

Greenland is the largest island on Earth and covers 2,170,00km(2) with a population of 60,000. A quarter of Greenland's population live in the capital city, Nuuk. Approximately 88% of Greenlanders identify as Greenlandic (i.e., of Greenlandic Inuit descent), and native title issues that occur in Australia and Canada do not arise.

Greenlandic is the official language of Greenland, however Danish and English are also widely used by government authorities.

Greenland is an autonomous territory within the Kingdom of Denmark ruled by the Government of Greenland. Whilst Greenland was a part of the European Community from 1973, through Danish membership, Greenland formally withdrew from the European Community in 1985 and is therefore not a member of the European Union. Greenland gained home-rule in 1979, and in 2009 Denmark passed the Act on Greenland Self-Government giving Greenland greater autonomy and inter alia defined the natural resources of Greenland as being the property of the Greenlandic people. The Act gave Greenland the right to self-elect a government and parliament, although Denmark retains control over items like defence, currency, policing and the courts.

The Self-Government Act gives unique nation-building opportunity to indigenous people within the framework of Western institutionalism. In addition to indigenous empowerment, Greenland has other favourable metrics (through Denmark) such as being the world's least corrupt country, 11 (th) on the Human Development Index, and 6 (th) on the Human Freedom Index.

Although Greenland has had autonomous rule since 2009, the economy depends on Danish subsidies, which represent one-third of national income. Greenland's government has identified the mining industry as a source of national revenue, local jobs, and as a means of achieving financial independence from Denmark to ultimately become a country in its own. The 2019-2023 National Mineral Strategy sets the goal of simplifying the transition from resource exploration to exploitation, and the nation is actively seeking foreign investment in the mining sector.

Greenland's corporate tax rate for exploration and mining companies is 25%. The Greenland mineral royalty rate (excluding hydrocarbons, radionuclides and gemstones) is 2.5% on the value of the mine product ('ad valorem'), less corporate income and dividend taxes. The flat personal tax rate incurred by a non-resident working on exploration or mining projects is 35%, as opposed to the 42% on individuals working outside of the mineral sector. This lower tax rate for individuals working in mining and exploration is an incentive to grow the mining industry in Greenland.

Title

ARC comprises a single Special Exploration Licence (SEL) with an area of 5,774km(2) . The license is valid until the end of 2024, at which point it can be converted into a standard Exploration Licence.

SELs are valid for three years with lower expenditure requirements compared to a conventional Exploration Licence. After a three-year term, a SEL may convert in part or whole, into a conventional Exploration License. SELs must cover more than 1,000km(2) and are only available in northern and eastern Greenland that are deemed by the government to be under-explored.

Conventional Exploration Licences are initially valid for five years, but may be renewed for an additional five years, and then three-year renewal periods after that. Exploration Licences may be converted to an Exploitation (Mining) License subject to approvals. Exploration Licences are exclusive and may not overlap. There is no mandatory area reduction requirement; however voluntary reductions are encouraged through annual increases in the minimum expenditure requirements . The Greenlandic government has led the world in pausing licence terms and expenditure obligations in response to the COVID-19 pandemic.

If economically exploitable deposits are discovered then an application is made to Greenland's Mineral Resource Authority for a Mining Licence. Mining Licences convey exclusive extraction rights for 30 years and can be renewed for a further 20 years.

COPPER MARKETS

The Agreement marks Prairie's entry into the copper sector at a time when global focus is on a green revolution paving the way to net zero emissions. Simply, there is no decarbonisation without copper.

Copper is the most cost-effective conductive material while boasting all the necessary physical attributes for capturing, storing, and transporting all sources of non-renewable and renewable energy - whether used to power an electric car or light an eco-city.

Copper is vital to numerous solutions for controlling climate change:

-- Copper is key for the performance and efficiency of solar electricity panels which are increasing in global prevalence

-- Both the generator within and cables connecting wind turbines require copper. Copper intensity in wind energy is expected to grow as offshore projects, which require twice as much copper, become more prevalent

-- Electric vehicles contain five times the copper of their petrol or diesel counterparts. Copper is a major component used in electric motors, batteries, inverters, and wiring.

-- Additionally, cabling for electric vehicle charging stations will require copper. Standard AC charging points require between 1kg to 7kg copper; a fast DC charger can contain up to 25kg copper.

According to a bottom-up model by Goldman Sachs, demand for copper used in green technologies (Green copper) will grow nearly 600% from 998kt to 5.4Mt by 2030 or 900% to 8.7Mt if green technologies are adopted faster. For the 2020s, this would imply the strongest phase of global copper demand in history.

The copper market is already facing a clear market deficit in both 2021 and 2022. Despite increases in supply from production expected to come online, market analysts estimate significant copper supply deficits from the second half of 2024 onwards culminating in a long-term supply gap of 8.2Mt. This is nearly double the long-term supply gap peaks in the 2000s and 2010s, when real copper prices were at US$10,420/t and US$11,440/t respectively.

During the last 5 years, there has been negligible increases in global copper production averaging approximately 1% per year as estimated by Goldman Sachs. Moreover, there have been no new significant copper discoveries in the past five years.

COMMERCIAL TERMS OF THE EARN-IN AGREEMENT

Prairie will earn an interest of up 80% interest in ARC through an EIA between Mineral Investment Pty Ltd, a wholly owned subsidiary of the Company, and GEX.

Key terms of the EIA provide:

   1.   The Company, via its subsidiary, will earn its interest in ARC by: 

a. spending A$3,500,000 on ARC within three years to earn a 51% interest (First Earn-in Milestone);

b. spending a further A$3,500,000 on ARC within four years to earn a further 19% interest (taking the total interest to 70%) (Second Earn-in Milestone); and

c. spending a further A$3,000,000 on ARC within five years to earn a further 10% interest (taking the total interest to 80%) (Third Earn-in Milestone).

   2.   Post the Third Earn-in Milestone: 
   a.   Each Party must contribute on a pro rata basis or be diluted. 

b. If a party dilutes down below 10%, then its interest in ARC automatically converts into a 1.75% Net Smelter Royalty (at this stage GEX can also elect to convert straight to the royalty rather than co-contributing or diluting down).

3. Prairie may withdraw from the earn-in in once it has spent a minimum of A$1,000,000 prior to 31 December 2022.

4. To secure the services of the GEX exploration team, Prairie will pay GEX a monthly services fee of A$54,167 per month for a period to 31 December 2023 or such longer time period as agreed between GEX and the Company. The GEX services will terminate if the EIA is terminated or where both parties mutually agree in writing.

   5.   Further consideration in the form of Prairie equity securities to GEX as follows: 

a. 3 million Prairie shares on completion (subject to 12 months voluntarily escrow from date of issue);

b. 5 million class A performance rights which vest and convert into Prairie Shares (which will be subject to 6 months voluntary escrow from the date of issue of the Prairie Shares upon conversion of the Performance Rights) upon the announcement of an independently assessed JORC Code inferred resource of at least 250,000 tonnes of copper equivalent at a minimum resource grade of 1% Cu Equivalent(**) (or equivalent, with a cut-off grade of 0.5% Cu equivalent) at ARC and expire 5 years from date of issue; and

c. 6 million class B performance rights which vest and convert into Prairie Shares (which will be subject to 6 months voluntary escrow from the date of issue of the Prairie Shares upon conversion of the Performance Rights) upon the announcement of an independently assessed JORC Code inferred resource of at least 500,000 tonnes of copper equivalent at a minimum resource grade of 1% Cu Equivalent(**) (or equivalent, with a cut-off grade of 0.5% Cu equivalent) at ARC and expire 5 years from date of issue.

CHANGE OF DIRECTOR

Ms Carmel Daniele, founder and Chief Executive Officer of CD Capital, will be stepping down as CD Capital's nominee to the Prairie Board as a non-executive Director and will be replaced by Mr Garry Hemming, a highly experienced exploration geologist, effective immediately. Mr Hemming is a senior resource geologist at CD Capital and brings over 40 years experience in exploration and as a mining executive of public companies.

Mr Hemming has been involved in all aspects of discovering projects and taking them from detailed exploration and through feasibility study. Mr Hemming has lead teams that have discovered, acquired and/or developed ore-bodies including the Yilgarn Star Gold deposit in Western Australia, Hadleigh Castle/Rishton in Queensland and the Acoje Nickel PGE deposit in the Philippines.

Mr Hemming joins the Prairie Board as a non-executive Director. Fees for non-executive Directors are presently set an annual fee of A$20,000. In addition, Mr Hemming will provide specialist geological and exploration consulting services to Prairie by way of a separate consultancy contract with an annual consulting fee of A$40,000.

ENTITLMENTS ISSUE

The Company will undertake a one (1) for ten (10) pro rata non-renounceable Entitlements Issue at $0.25 (GBP0.16/EUR0.15/PLN0.72) per share to raise up to $5.8 million before costs.

Eligible shareholders will be entitled to acquire one (1) New Share for ten (10) ordinary shares held at the record date (5 November 2021). New Shares under the Entitlements Issue will be offered at $0.25 (GBP0.16/EUR0.15/PLN0.72) per share.

Directors will reserve the right to offer any shortfall shares from the Entitlements Issue at their discretion (subject to applicable regulatory requirements).

Further details of the Entitlements Issue and the timetable will be announced separately in an Appendix 3B.

OPTIONS

Long-Term Employee Equity Incentive Plan

The Company advises that it will implement a new long-term incentive employee equity incentive plan (LTIP), to attract and retain directors and other key employees and consultants who will be involved with the Project going forward.

Subject to shareholder approval the Company will issue incentive options to the following Company directors (and others):

 
 Director                  $0.45 options expiring   $0.55 options expiring 
                                 30 November 2025         30 November 2026 
------------------------  -----------------------  ----------------------- 
 Mr Benjamin Stoikovich                 1,500,000                1,500,000 
 Mr Mark Pearce                           500,000                  500,000 
 Other key employees 
  and consultants                       3,375,000                3,375,000 
------------------------  -----------------------  ----------------------- 
 

RISK FACTORS

Whilst Prairie has undertaken a due diligence process (including title and other risks) with respect to the Project, it should be noted that the usual risks associated with companies undertaking exploration and development activities of projects in Greenland will remain at completion of the acquisition.

A number of additional risk factors specific to the Project and associated activities have also been identified, including, but not limited to:

(a) The Project is located in Greenland, and as such, the operations of the Company will be exposed to related risks and uncertainties associated with the country, regional and local jurisdictions. Opposition to the Project, or changes in local community support for the Project, along with any changes in mining or investment policies or in political attitude in Greenland and, in particular to the mining, processing or use of copper, may adversely affect the operations, delay or impact the approval process or conditions imposed, increase exploration and development costs, or reduce profitability of the Company.

(b) The project is remotely located in an area that has an Arctic Climate and that is categorised as an Arctic Desert, and as such, the operations of the Company will be exposed to related risks and uncertainties of Arctic exploration.

(c) The Company's exploration and any future mining activities are dependent upon the grant, maintenance and/or renewal from time to time of the appropriate title interests, licences, concessions, leases, claims, permits and regulatory consents which may be withdrawn or made subject to new limitations. Transferring title interests, maintaining title interests or obtaining renewals of or getting the grant of title interests often depends on the Company being successful in obtaining and maintaining required statutory approvals for its proposed activities (including a licence for mining operations) and that the title interests, licences, concessions leases, claims, permits or regulatory consents it holds will be maintained and when required renewed.

There is no assurance that such title interests, licences, concessions, leases, claims, permits or regulatory consents will be granted, or even if granted, not be revoked, significantly altered or granted on terms or with conditions not acceptable to the Company, or not renewed to the detriment of the Company or that the renewals thereof will be successful.

Shareholders should note that some of the risks may be mitigated by the use of appropriate safeguards and systems, whilst others are outside the control of the Company and cannot be mitigated. Should any of the risks eventuate, then it may have a material adverse impact on the financial performance of the Project, the Company and the value of the Company's securities.

Competent Persons Statement

Information in this announcement that relates to Exploration Results is based on information compiled by Dr Jonathan Bell, a Competent Person who is a member of the Australian Institute of Geoscientists (AIG). Dr Bell is the Managing Director of Greenfields Exploration Limited and holds an indirect interest in performance rights in Prairie. Dr Bell has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken, 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'. Dr Bell consents to the inclusion in this announcement of the matters based on his information in the form and context in which it appears.

References

Technical Assessment Report: Arctic Rift Copper - Part of world's newest metallogenic province: Kiffaanngissuseq - Greenfields Exploration Ltd - November 2020 ( https://www.researchgate.net/publication/346029727_ARCTIC_RIFT_COPPER_Part_of_world%27s_newest_metallogenic_province_Kiffaanngissuseq )

**Cu Equivalent means any combination of Cu, Ag, Ni, Co, Cr, Pt, Pd, Au, Rh, Ru, Ir, Os, Zn and/or Pb.

Appendix A: Summary of Significant Historical Sample Results

 
 Sample     Type        Latitude      Longitude     ASL     Cu      Ag                  Description 
   ID                                                (m)    (%)    (ppm) 
  3705      Float     not recorded   not recorded    -     100      0      Native copper, not assayed 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Massive chunk of bn + 
                                                                            cpy. The largest mass 
                                                                            of Cu sulphides found 
  3620      Float        512529        9099902      127    53.8   2,480     to date 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Lenses of bn + cc in 
                                                                            mineralised shear zone. 
                                                                            Lenses are 1cm thick 
  3594      Grab         513826        9101136       99    20.7    488      and 13cm long 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chunks of heavy mineralised 
                                                                            sandstones taken from 
                                                                            black pit. Malachite 
                                                                            + primary Cu-sulphides. 
                                                                            Clay coating. Appears 
                                                                            to be mineralised fault 
  3540      Grab         512253        9099628      138    12.5    385      zone 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #2: only 0.2m. 
                                                                            Quartzite with stratabound 
                                                                            Cu-sulphide mineralisation. 
                                                                            0.5m long chip lines. 
                                                                            White to light red quartzite/arenite 
                                                                            with planar bedding features 
                                                                            - containing rounded 
                                                                            elongated chunks and 
                                                                            blebs of cc + bn - up 
                                                                            to 20cm long. Chunks 
            Chip                                                            are black with rims of 
  3533       line        512359        9099583      175    8.99    112      malachite 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Sandstone with stratiform 
  3704      Grab         512177        9099668      146    7.85     53      bn, in situ 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Trench #1. 3m long trench. 
                                                                            Chunks of quartzites 
                                                                            from trench containing 
                                                                            mud laminas with mud 
                                                                            cracks + up to 2cm thick 
                                                                            dark lenses of bn with 
                                                                            disseminated native copper 
                                                                            + malachite + cpy + pyrite 
  3609     Trench        512470        9099914      125    5.28    112      +/- cc 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Pit #5. Black and black-greenish 
  3604       Pit         512468        9099926      137    4.98    304      dirt 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Stratiform cc + bn blebs 
  3596      Grab         511631        9099924      210    4.03     82      1x5cm 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Pit #3. Black Earth - 
                                                                            weathering product of 
  3567       Pit         513263        9101410      150    3.60    106      mineralised fault 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Trench #1. Black Earth 
                                                                            mixed with olive-green 
  3608     Trench        512470        9099914      125    3.55    263      earth. From 3m long trench 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #7: Disseminated 
            Chip                                                            malachite throughout. 
  3633       line        512181        9099672      140    3.42     34      1cm bands of cc 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Stockwork veins on mineralised 
                                                                            breccia. Blebs of cc 
  3597      Grab         511631        9099924      210    3.35     71      + bn 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Decomposed/crumbled block 
                                                                            of black dirt. Crushed 
                                                                            zone - extensive jointing 
                                                                            1-3m wide area. Malachite 
  3526      Float        511973        9099762      175    3.19     73      grains within 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #7: Malachite 
            Chip                                                            + stratiform and blebs 
  3631       line        512179        9099670      140    3.12     77      of bn +/- pyrite 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Pit #5. Crushed up quartzite 
                                                                            fragments (5-20cm large). 
                                                                            Malachite + bn + pyrite 
                                                                            + cc. Interbedded clay 
  3605       Pit         512468        9099926      137    2.94    151      sheets few mm thick 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Medium-grained sandstone 
  3621      Float        512497        9099902      127    2.35     59      with bn cement 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #7: across 
                                                                            1.5m brecciated shear 
                                                                            zone and 1m into above 
            Chip                                                            normal bedded mineralised 
  3629       line        512177        9099668      140    2.22     79      sandstone 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Calcite + prehnite + 
  3626      Float        502496        9069442      600    2.02     4       native Cu 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Composite grab of Black 
  3665      Grab         511937        9099778      185    2.01     40      Earth 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Qtz-calcite, radiating 
                                                                            white minerals? Grains 
                                                                            of native copper. GEX 
                                                                            note: The original description 
                                                                            is not clear, but it 
                                                                            is likely to be a basalt 
  3601      Float        510567        9098866      307    1.89     13      sample 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #8: 0.5m chip 
                                                                            lines. Mineralised bedding 
            Chip                                                            low-angle sheared block 
  3635       line        512099        9099706      153    1.85     53      with blebs of bn + cc 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Quartzite of Jyske Ås 
                                                                            with diffuse bedding 
                                                                            plane bn mineralisation 
  3501      Grab         512333        9099910      150    1.64     72      crosscut by thin veins 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #4: Brecciated 
                                                                            with stockwork of qtz 
                                                                            + sulphide veins. Cc 
                                                                            + bn in veins and distinct 
                                                                            sand-size black sulphide 
            Chip                                                            grains. Disseminated 
  3578       line        513811        9101141      115    1.42     17      malachite throughout 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Pit #4. Black Earth with 
                                                                            small malachite grains 
                                                                            - Taken from 45cm depth 
  3569       Pit         513838        9101130      150    1.41     35      in the pit 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Brecciated sandstone 
  3714      Grab         512330        9099580      135    1.34     51      with bn, in situ 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #7: Grab form 
            Chip                                                            pit of quartzite with 
  3630       line        512178        9099669      140    1.33     37      malachite + bn + cpy 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
            Chip                                                           Chip line #10: 1m chip 
  3656       line        511974        9099763      179    1.18     60      line. Black Earth 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Quartzite breccia filled 
  3616      Float        512486        9099914      133    1.14     39      with bn + cc 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Pit #4. Crushed up fist-sized 
                                                                            quartzites. Taken from 
                                                                            Black Earth pit. Heavily 
                                                                            copper-stained. Heavy 
  3570       Pit         513838        9101130      150    1.14     27      density 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #4: Brecciated 
                                                                            with stockwork of qtz 
                                                                            + sulphide veins. Most 
                                                                            sulphides + malachite 
            Chip                                                            staining occurs between 
  3577       line        513810        9101140      114    1.10     15      samples 3575 - 3583 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Cu-mineralised sandstone 
                                                                            from 125deg-striking 
  3706      Grab         513831        9101138      107    1.07     15      breccia zone 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
            Chip                                                           Chip line #8: Mineralised 
  3636       line        512100        9099707      153    1.07     46      bedding. Dipping 20deg/north? 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Sandstone with stratiform 
                                                                            Cu-mineralisation, in 
  3703      Grab         512360        9099574      122    1.02     19      situ 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #4: Brecciated 
                                                                            with stockwork of qtz 
                                                                            + sulphide veins. Most 
                                                                            sulphides + malachite 
            Chip                                                            staining occurs between 
  3576       line        513810        9101139      114    0.94     10      sample 3575 - 3583 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Black Earth shear zone. 
                                                                            Sample of near rotated 
                                                                            block of grey sandstone 
                                                                            with Cu sulphides and 
                                                                            malachite. Mineralised 
                                                                            thin veins. Small (1-2mm) 
          Composite                                                         in diameter blebs of 
  3664       grab        511937        9099778      185    0.92     28      cc / bn 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #4: Brecciated 
                                                                            with stockwork of qtz 
                                                                            + sulphide veins. Cc 
                                                                            + bn in veins and distinct 
            Chip                                                            sand-size black sulphide 
  3580       line        513812        9101143      116    0.91     14      grains 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Grab sample of detached 
                                                                            block in shear zone near 
                                                                            chip line sample 3580. 
                                                                            Stockwork of malachite 
                                                                            + cc + bn mineralised 
  3595      Grab         513826        9101136       95    0.89     22      qtz veins 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #4: Brecciated 
                                                                            with stockwork of qtz 
                                                                            + sulphide veins. Cc 
                                                                            + bn in veins and distinct 
            Chip                                                            sand-size black sulphide 
  3579       line        513811        9101142      115    0.81     15      grains 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
            Chip                                                           Chip line #7: Stratiform 
  3634       line        512182        9099673      140    0.79     33      bn / cc - 1mm layers. 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #2: Quartzite 
                                                                            with stratabound Cu-sulphide 
                                                                            mineralisation. 0.5m 
                                                                            long chip lines. White 
                                                                            to light red quartzite/arenite 
                                                                            with planar bedding features 
                                                                            - containing rounded 
                                                                            elongated chunks and 
                                                                            blebs of cc + bn - up 
                                                                            to 20 cm long. Chunks 
            Chip                                                            are black with rims of 
  3532       line        512358        9099582      175    0.76     13      malachite 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Coarse-grained quartzite 
                                                                            with interstitial Cu-sulphide 
                                                                            mineralisation - but 
  3619      Float        52514         9099904      127    0.74     16      minor cpy + bn 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #4: Brecciated 
                                                                            with stockwork of qtz 
                                                                            + sulphide veins. Cc 
                                                                            + bn in veins and distinct 
            Chip                                                            sand-size black sulphide 
  3581       line        513812        9101144      116    0.74     16      grains. 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Sandstone with disseminated 
                                                                            bn, scree block 5m below 
  3712      Float        512547        9099808      135    0.72     9       3710 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #9: 1m chip 
                                                                            lines. North of 9m-wide 
                                                                            breccia zone. Malachite 
                                                                            stained yellow-grey sandstones. 
                                                                            Few mm-thick discordant 
            Chip                                                            veins and veinlets of 
  3649       line        512007        9099774      172    0.68     28      qtz 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
            Chip                                                           Chip line #7: Less mineralised 
  3632       line        512180        9099671      140    0.66     9       than 3631. Still bn blebs 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Medium-grained quartzite. 
                                                                            Rust and malachite staining. 
                                                                            Many black greasy spots 
  3561      Grab         513259        9101420      150    0.62     22      (clay?). Sulphides found 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Pit #2. Black clay/dirt. 
                                                                            Very greasy and wet. 
  3562       Pit         513259        9101420      150    0.62     77      Picked up from 20cm depth 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Loose block in fault 
                                                                            zone. Grey quartzite 
  3566      Float        513263        9101410      150    0.62     15      with bn + cc mineralisation 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Coarse-grained quartzite 
                                                                            with interstitial Cu-sulphide 
  3618      Float        512512        9099910      125    0.61     24      mineralisation 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Pit #9. Medium-grained 
                                                                            quartzite. Rust and malachite 
                                                                            staining. Black greasy 
                                                                            spots (clay?). Sulphides 
  3560       Pit         513259        9101420      150    0.61     17      found 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #9: 1m chip 
                                                                            lines north of 9m-wide 
                                                                            breccia zone. Malachite 
                                                                            stained yellow-grey sandstones. 
                                                                            Few mm-thick discordant 
            Chip                                                            veins and veinlets of 
  3650       line        511998        9099773      172    0.51     16      qtz 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #4: Brecciated 
                                                                            with stockwork of qtz 
                                                                            + sulphide veins. Most 
                                                                            sulphides + malachite 
            Chip                                                            staining occurs between 
  3575       line        513809        9101138      113    0.48    3.5      sample 3575 - 3583 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #9: 1m chip 
                                                                            lines north of 9m-wide 
                                                                            breccia zone. Malachite 
                                                                            stained yellow-grey sandstones. 
                                                                            Few mm-thick discordant 
            Chip                                                            veins and veinlets of 
  3651       line        511994        9099772      173    0.48    19.8     qtz 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #4: Brecciated 
                                                                            with stockwork of qtz 
                                                                            + sulphide veins. Cc 
                                                                            + bn in veins and distinct 
            Chip                                                            sand-size black sulphide 
  3582       line        513813        9101145      117    0.48    8.3      grains 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Dissimenated sulphides 
  3598      Grab         511631        9099924      210    0.47    2.6      in quartzite 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #9: 1m chip 
                                                                            lines north of 9m-wide 
                                                                            breccia zone. Malachite 
                                                                            stained yellow-grey sandstones. 
                                                                            Few mm-thick discordant 
            Chip                                                            veins and veinlets of 
  3654       line        511982        9099768      175    0.46    4.7      qtz 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #9: 1m chip 
                                                                            lines north of 9m-wide 
                                                                            breccia zone. Malachite 
                                                                            stained yellow-grey sandstones. 
                                                                            Few mm-thick discordant 
            Chip                                                            veins and veinlets of 
  3652       line        511990        9099771      174    0.46    10.3     qtz 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #9: 1m chip 
                                                                            lines north of 9m-wide 
                                                                            breccia zone. Malachite 
                                                                            stained yellow-grey sandstones. 
                                                                            Few mm-thick discordant 
            Chip                                                            veins and veinlets of 
  3653       line        511986        9099770      174    0.45     6       qtz 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Light quartzite with 
  3568      Float        513863        9101114      150    0.44    2.1      significant malachite 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Medium-grained quartzite. 
                                                                            Rust and malachite staining. 
                                                                            Black greasy spots (clay?). 
  3565      Grab         513259        9101420      150    0.43    10.2     Sulphides found 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #9: 1m chip 
                                                                            lines north of 9m-wide 
                                                                            breccia zone. Malachite 
                                                                            stained yellow-grey sandstones. 
                                                                            Few mm-thick discordant 
            Chip                                                            veins and veinlets of 
  3647       line        512017        9099778      167    0.40    18.7     qtz 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #9: 1m chip 
                                                                            lines north of 9m-wide 
                                                                            breccia zone. Malachite 
                                                                            stained yellow-grey sandstones. 
                                                                            Few mm-thick discordant 
            Chip                                                            veins and veinlets of 
  3648       line        512012        9099776      170    0.40    24.1     qtz 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Brecciated quartzite 
                                                                            at base of cliff. 3m 
                                                                            wide. Cu sulphides. Chip 
  3613      Chip         512502        9099910      126    0.37    14.6     sample of 2m(2) area. 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #5: 0.5cm long 
                                                                            sections. Fine-grained 
                                                                            reddish sandstone with 
            Chip                                                            laminated mud cracks. 
  3606       line        512488        9099908      131    0.36    19.1     Bn along apparent vein 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Sandstone with disseminated 
                                                                            interstitial bn + cc 
  3622      Grab         512528        9099902      123    0.34    23.1     and 1mm blebs of cc 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Brecciated quartzite. 
                                                                            Open space breccia. Cu 
                                                                            sulphides. Chip sample 
  3614      Chip         512490        9099914      132    0.33    21.1     of 2 m(2) area 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Quartzite with bn + qtz 
  3617      Float        512506        9099896      125    0.32    13.9     filling veins 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Shale with disseminated 
  3882      Float        510756        9101073      275    0.32    0.12     pyrite/cc 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #9: 1m chip 
                                                                            lines north of 9m-wide 
                                                                            breccia zone. Malachite 
                                                                            stained yellow-grey sandstones. 
                                                                            Few mm-thick discordant 
            Chip                                                            veins and veinlets of 
  3646       line        512022        9099780      164    0.31    11.9     qtz 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Grab sample of two float 
                                                                            samples with malachite 
                                                                            mineralisation. Stockwork 
                                                                            veins. Other side of 
  3628      Float        513848        9099350      130    0.31    4.5      Neergaard valley 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #1: 0.5m long 
                                                                            chip lines. Trending 
                                                                            60deg. Small thrust faults 
                                                                            trending 290deg. Dip 
            Chip                                                            of slope 10deg - 150deg 
  3518       line        512336        9099927      136    0.30    19.9     SE 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #1: 0.5m long 
                                                                            chip lines. Trending 
                                                                            60deg. Small thrust faults 
                                                                            trending 290deg. Dip 
            Chip                                                            of slope 10deg - 150deg 
  3515       line        512333        9099924      136    0.30    14.4     SE 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #5: 0.5 cm 
                                                                            long sections. Fine-grained 
                                                                            reddish sandstone with 
            Chip                                                            laminated mud cracks. 
  3607       line        512489        9099909      131    0.30    16.8     Bn along apparent vein 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #2: Quartzite 
                                                                            with. stratabound Cu-sulphide 
                                                                            mineralisation. 0.5m 
                                                                            long chip lines. White 
                                                                            to light red quartzite/arenite 
                                                                            with planar bedding features 
                                                                            - containing rounded 
                                                                            elongated chunks and 
                                                                            blebs of cc + bn - up 
                                                                            to 20cm long. Chunks 
            Chip                                                            are black with rims of 
  3531       line        512357        9099581      175    0.29    8.1      malachite 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
  3527      Grab         511973        9099762      175    0.27    611     Mineralised quartzite 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Sandstone with blebs 
                                                                            of bn, scree block 5m 
  3713      Float        512547        9099808      135    0.26    12.6     below 3710 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #2: Quartzite 
                                                                            with stratabound Cu-sulphide 
                                                                            mineralisation. 0.5m 
                                                                            long chip lines White 
                                                                            to light red quartzite/arenite 
                                                                            with planar bedding features 
                                                                            - containing rounded 
                                                                            elongated chunks and 
                                                                            blebs of cc + bn - up 
                                                                            to 20cm long. Chunks 
            Chip                                                            are black with rims of 
  3534       line        512360        9099584      175    0.25    3.4      malachite 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #1: 0.5m long 
                                                                            chip lines. Trending 
                                                                            60deg. Small thrust faults 
                                                                            trending 290deg. Dip 
            Chip                                                            of slope 10deg - 150deg 
  3514       line        512332        9099923      136    0.23    11.9     SE 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #1: 0.5m long 
                                                                            chip lines. Trending 
                                                                            60deg. Small thrust faults 
                                                                            trending 290deg. Dip 
            Chip                                                            of slope 10deg - 150deg 
  3519       line        512337        9099928      136    0.22    10.5     SE 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #10: 1m chip 
                                                                            lines across 9m breccia 
                                                                            zone with Black Earth. 
            Chip                                                            Brecciated zone trending 
  3655       line        511975        9099764      179    0.21    10.2     120deg 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #9: 1m chip 
                                                                            lines north of 9m-wide 
                                                                            breccia zone. Malachite 
                                                                            stained yellow-grey sandstones. 
                                                                            Few mm-thick discordant 
            Chip                                                            veins and veinlets of 
  3645       line        512027        9099782      161    0.20    3.9      qtz 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #1: 0.5m long 
                                                                            chip lines. Trending 
                                                                            60deg. Small thrust faults 
                                                                            trending 290deg. Dip 
            Chip                                                            of slope 10deg - 150deg 
  3513       line        512331        9099922      136    0.20    15.8     SE 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
                                                                           Chip line #2: Quartzite 
                                                                            with stratabound Cu-sulphide 
                                                                            mineralisation. 0.5m 
                                                                            long chip lines. White 
                                                                            to light red quartzite/arenite 
                                                                            with planar bedding features 
                                                                            - containing rounded 
                                                                            elongated chunks and 
                                                                            blebs of cc + bn - up 
                                                                            to 20cm long. Chunks 
            Chip                                                            are black with rims of 
  3535       line        512361        9099585      175    0.20    4.2      malachite 
         ----------  -------------  -------------  -----  -----  -------  -------------------------------------- 
 

Legend:

Cu - copper, cc - chalcocite, cpy - chalcopyrite, bn - bornite, qtz - quartz

Notes:

   1.   Co-ordinates are in UTM Zone 26N (WGS 84) and have been measured by hand-held GPS 
   2.   Positional measurements (northing, easting, and RL) that are calculated by GEX are in italics 

Appendix B: Historical Full Trench, Pit, and Chip Line Sampling Results

 
 Sample   Sample   Northing   Easting   ASL     Cu      Ag                Description 
   ID      type       (m)       (m)      (m)    (%)    (ppm) 
           or 
           Line 
           # 
 Trench #1 
                                                               Black Earth mixed with 
                                                                olive-green earth. From 
  3608    Trench    512470    9099914   125    3.55    263      3m long Trench #1. 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
                                                               Chunks of quartzites from 
                                                                trench containing mud laminas 
                                                                with mud cracks + up to 
                                                                2cm thick dark lenses of 
                                                                bn with disseminated native 
                                                                copper + malachite + cpy 
                                                                + pyrite +/- cc. From 3m 
  3609    Trench    512470    9099914   125    5.28    112      long Trench #1. 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
 Pit #1 
                                                               Chunks of heavy mineralised 
                                                                sandstones taken from black 
                                                                pit. Malachite + primary 
                                                                Cu-sulphides. Clay coating. 
                                                                Appears to be mineralised 
  3540     Grab     512253    9099628   138    12.5    385      fault zone 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
 Pit #2 
                                                               Black clay/dirt. Very greasy 
                                                                and wet. Picked up from 
  3562     Grab     513259    9101420   150    0.62     77      20cm depth 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
                                                               Black Earth - weathering 
                                                                product of mineralised 
  3567     Grab     513263    9101410   150    3.60    106      fault 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
 Pit #3 
                                                               Black Earth with small 
                                                                malachite grains - Taken 
                                                                from 45cm depth in the 
  3569     Grab     513838    9101130   150    1.41     35      pit 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
                                                               Crushed up fist-sized quartzites. 
                                                                Taken from Black Earth 
                                                                pit. Heavily copper-stained. 
  3570     Grab     513838    9101130   150    1.14     27      Heavy density 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
 Pit #4 
                                                               Black and black-greenish 
  3604     Grab     512468    9099926   137    4.98    304      dirt. 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
                                                               Crushed up quartzite fragments 
                                                                (5-20cm large). Malachite 
                                                                + bn + pyrite + cc. Interbedded 
  3605     Grab     512468    9099926   137    2.94    151      clay sheets few mm thick 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
 Pit #5 
                                                               Composite grab of Black 
  3665     Pit      511937    9099778   185    2.01     40      Earth 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
 Pit #6 
                                                               Medium-grained quartzite. 
                                                                Rust and malachite staining. 
                                                                Black greasy spots (clay?). 
  3560     Grab     513259    9101420   150    0.61     17      Sulphides found 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
 Chip line #1 
                                                               0.5m long chip lines. Trending 
                                                                60deg. Small thrust faults 
                                                                trending 290deg. Dip of 
  3502      1       512321    9099912   136    0.01    9.2      slope 10deg - 150deg SE 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3503      1       512322    9099913   136    0.04     5      " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3504      1       512323    9099914   136    0.03    6.3     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3505      1       512323    9099914   136    0.03    4.8     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3506      1       512324    9099915   136    0.06    3.2     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3507      1       512325    9099916   136    0.05    8.1     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3508      1       512326    9099917   136    0.03    7.7     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3509      1       512327    9099918   136    0.02     8      " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3510      1       512328    9099919   136    0.08    10.7    " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3511      1       512329    9099920   136    0.07    13.5    " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3512      1       512330    9099921   136    0.05    6.9     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3513      1       512331    9099922   136    0.20    15.8    " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3514      1       512332    9099923   136    0.23    11.9    " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3515      1       512333    9099924   136    0.30    14.4    " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3516      1       512334    9099925   136    0.01    0.7     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3517      1       512335    9099926   136    0.02    0.5     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3518      1       512336    9099927   136    0.30    19.9    " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3519      1       512337    9099928   136    0.22    10.5    " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3520      1       512338    9099929   136    0.19    13.1    " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3521      1       512339    9099930   136    0.03    8.3     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3522      1       512340    9099931   136    0.01    6.7     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3523      1       512341    9099932   136    0.00    1.4     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3524      1       512342    9099933   136    0.00    1.6     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3525      1       512343    9099934   136    0.00    1.3     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
 Chip line #2 
                                                               0.5m long chip lines. Quartzite 
                                                                with stratabound Cu-sulphide 
                                                                mineralisation. 0.5m long 
                                                                chip lines. White to light 
                                                                red quartzite/arenite with 
                                                                planar bedding features 
                                                                - containing rounded elongated 
                                                                chunks and blebs of cc 
                                                                + bn - up to 20cm long. 
                                                                Chunks are black with rims 
  3528      2       512354    9099578   175    0.02     2       of malachite 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3529      2       512355    9099579   175    0.02     16     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3530      2       512356    9099580   175    0.01    1.1     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3531      2       512357    9099581   175    0.29    8.1     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3532      2       512358    9099582   175    0.76     13     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3533      2       512359    9099583   175    8.99    112     Chip line only 0.2m 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3534      2       512360    9099584   175    0.25    3.4     Same as 3528 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3535      2       512361    9099585   175    0.20    4.2     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3536      2       512362    9099586   175    0.04    0.7     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3537      2       512363    9099587   175    0.04    1.1     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3538      2       512364    9099588   175    0.10     2      " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3539      2       512365    9099589   175    0.01    2.2     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
 Chip line #3 
                                                               0.5m long chip lines. Massive 
                                                                brecciated. No malachite. 
  3542      3       513269    9101416   143    0.06     1       No primary bedding features 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3543      3       513269    9101418   143    0.03    0.6     " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
                                                               0.5m long chip lines. Malachite. 
  3544      3       513269    9101420   143    0.04    0.4      Stockwork qtz-veins 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3545      3       513269    9101422   144    0.01    0.3     " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
                                                               0.5m long chip lines. Minor 
  3546      3       513269    9101424   144    0.01     1       malachite. Bedding features 
         -------  ---------  --------         -----  -------  ---------------------------------- 
                                                               0.5m chip lines. Malachite. 
  3547      3       513269    9101426   144    0.11    3.4      Stockwork qtz-veins 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3548      3       513269    9101428   145    0.09    2.3     " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
                                                               0.5m long chip lines. Variable 
                                                                malachite. Discordant sulphide 
                                                                veins. Minor qtz Stockwork 
  3549      3       513269    9101430   145    0.04    0.8      qtz-veins 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3550      3       513269    9101432   146    0.04    0.3     " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3551      3       513269    9101434   146    0.10    0.9     " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3552      3       513269    9101436   147    0.02    0.3     " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3553      3       513269    9101438   147    0.06    0.6     " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3554      3       513269    9101440   148    0.00    0.3     " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3555      3       513269    9101442   148    0.01    0.3     " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3556      3       513269    9101444   149    0.03    0.3     " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3557      3       513269    9101446   149    0.03    0.3     " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3558      3       513269    9101448   150    0.01    0.3     " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3559      3       513269    9101458   150    0.00    0.3     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
 Chip line #4 
                                                               1 m long chip line sections 
                                                                across shear zone. Dip 
  3571      4       513808    9101132   112    0.01    0.3      20-25deg/SW 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3572      4       513808    9101135   112    0.01    0.4     Same as 3571 
         -------  ---------  --------  -----         -------  ---------------------------------- 
  3573      4       513808    9101136   112    0.01    0.4     " 
         -------  ---------  --------  -----         -------  ---------------------------------- 
  3574      4       513809    9101137   113    0.01    0.4     " 
         -------  ---------  --------  -----         -------  ---------------------------------- 
                                                               1m long chip line. Brecciated 
                                                                with stockwork of qtz + 
                                                                sulphide veins. Most sulphides 
                                                                + malachite staining occurs 
  3575      4       513809    9101138   113    0.48    3.5      between sample 3575 - 3583 
         -------  ---------  --------  -----         -------  ---------------------------------- 
  3576      4       513810    9101139   114    0.94     10     " 
         -------  ---------  --------  -----         -------  ---------------------------------- 
                                                               1m long chip line. Brecciated 
                                                                with stockwork of qtz + 
                                                                sulphide veins. Cc + bn 
                                                                in veins and distinct sand-size 
  3577      4       513810    9101140   114    1.10     15      black sulphide grains 
         -------  ---------  --------  -----         -------  ---------------------------------- 
                                                               1m long chip line. Brecciated 
                                                                with stockwork of qtz + 
                                                                sulphide veins. Cc + bn 
                                                                in veins and distinct sand 
                                                                size black sulphide grains. 
                                                                Disseminated malachite 
  3578      4       513811    9101141   115    1.42     17      throughout 
         -------  ---------  --------  -----         -------  ---------------------------------- 
  3579      4       513811    9101142   115    0.81     15     Same as 3577 
         -------  ---------  --------  -----         -------  ---------------------------------- 
  3580      4       513812    9101143   116    0.91     14     " 
         -------  ---------  --------  -----         -------  ---------------------------------- 
  3581      4       513812    9101144   116    0.74     16     " 
         -------  ---------  --------  -----         -------  ---------------------------------- 
  3582      4       513813    9101145   117    0.48    8.3     " 
         -------  ---------  --------  -----         -------  ---------------------------------- 
  3583      4       513813    9101146   117    0.02    0.4     " 
         -------  ---------  --------  -----         -------  ---------------------------------- 
  3584      4       513814    9101147   118    0.07    0.7     " 
         -------  ---------  --------  -----         -------  ---------------------------------- 
                                                               1m long chip line. No malachite 
  3585      4       513814    9101148   118    0.05    0.7      staining 
         -------  ---------  --------  -----         -------  ---------------------------------- 
  3586      4       513815    9101149   119    0.04    0.8     " 
         -------  ---------  --------  -----         -------  ---------------------------------- 
  3587      4       513815    9101150   119    0.01    0.3     " 
         -------  ---------  --------  -----         -------  ---------------------------------- 
  3588      4       513816    9101151   120    0.01    0.3     " 
         -------  ---------  --------  -----         -------  ---------------------------------- 
  3589      4       513816    9101152   120    0.01    0.3     " 
         -------  ---------  --------  -----         -------  ---------------------------------- 
                                                               1m long chip line. Sheared 
  3590      4       513817    9101153   121    0.00    0.3      and brecciated 
         -------  ---------  --------  -----         -------  ---------------------------------- 
  3591      4       513817    9101154   121    0.00    0.3     " 
         -------  ---------  --------  -----         -------  ---------------------------------- 
  3592      4       513818    9101155   122    0.02    0.3     " 
         -------  ---------  --------  -----         -------  ---------------------------------- 
  3593      4       513818    9101156   122    0.01    0.3     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
 Chip line #5 
                                                               0.5cm long chip lines. 
                                                                Fine-grained reddish sandstone 
                                                                with laminated mud cracks. 
  3606      5       512488    9099908   131    0.36    19.1     Bn along apparent vein 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3607      5       512489    9099909   131    0.30    16.8    " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
 Chip line #6 
                                                               0.5m long chip lines. Homogenous 
                                                                quartzite with disseminated 
  3610      6       512490    9099866   120    0.06    5.4      bn 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3611      6       512491    9099867   120    0.11    12.5    " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3612      6       512492    9099868   120    0.05    9.3     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
 Chip line #7 
                                                               Black dirt from 0.75m wide 
  3629      7       512177    9099668   140    2.22     79      pit. Grab from pit 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
                                                               Representative grab from 
                                                                same 0.75m wide pit as 
                                                                above of quartzite with 
  3630      7       512178    9099669   140    1.33     37      malachite + bn + cpy 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
                                                               1.5m across breccia zone. 
                                                                Malachite + stratiform 
  3631      7       512179    9099670   140    3.12     77      blebs of bn +/- cpy 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
                                                               0.75m vertical. Less mineralised 
  3632      7       512180    9099671   140    0.66     9       than 3631. Still bn blebs 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
                                                               0.75m. Disseminated malachite 
                                                                throughout. 1cm bands of 
  3633      7       512181    9099672   140    3.42     34      cc 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
                                                               0.75m. Stratiform bn/cc 
  3634      7       512182    9099673   140    0.79     33      - 1mm layers 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
 Chip line #8 
                                                               0.5m long chip lines. Mineralised 
                                                                bedding low-angle sheared 
                                                                block with blebs of bn 
  3635      8       512099    9099706   153    1.85     53      + cc 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
                                                               Mineralised bedding. Dipping 
  3636      8       512100    9099707   153    1.07     46      20deg/north? 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
 Chip line #9 
                                                               1m long chip line. Only 
  3637      9       512095    9099794   152    0.03    1.8      minor malachite 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3638      9       512082    9099793   153    0.06    1.6     " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3639      9       512073    9099792   154    0.06    1.1     " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3640      9       512064    9099791   155    0.02    1.1     " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3641      9       512055    9099790   156    0.11    2.2     " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3642      9       512046    9099789   157    0.06     3      " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3643      9       512037    9099788   158    0.09    3.9     " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
                                                               1m long chip line. Breccia 
  3644      9       512028    9099786   158    0.02    1.1      zone starts. Striking 120deg 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3645      9       512027    9099782   161    0.20    3.9     " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3646      9       512022    9099780   164    0.31    11.9    " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3647      9       512017    9099778   167    0.40    18.7    " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3648      9       512012    9099776   170    0.40    24.1    " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3649      9       512007    9099774   172    0.68     28     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
  3650      9       511998    9099773   172    0.51     16     " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3651      9       511994    9099772   173    0.48    19.8    " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3652      9       511990    9099771   174    0.46    10.3    " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3653      9       511986    9099770   174    0.45     6      " 
         -------  ---------  --------         -----  -------  ---------------------------------- 
  3654      9       511982    9099768   175    0.46    4.7     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
 Chip line #10 
                                                               1m long chip lines across 
                                                                breccia zone. The 9m brecciated 
  3655      10      511975    9099764   179    0.21    10.2     zone trends 120deg 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
                                                               1m long chip line. Black 
  3656      10      511974    9099763   179    1.18     60      Earth 
         -------  ---------  --------  -----         -------  ---------------------------------- 
                                                               1m long chip line across 
  3657      10      511973    9099762   178    0.09    2.4      breccia zone 
         -------  ---------  --------  -----         -------  ---------------------------------- 
  3658      10      511972    9099761   178    0.05     2      " 
         -------  ---------  --------  -----         -------  ---------------------------------- 
  3659      10      511971    9099760   177    0.18    4.5     " 
         -------  ---------  --------  -----         -------  ---------------------------------- 
  3660      10      511970    9099759   177    0.18    5.1     " 
         -------  ---------  --------  -----         -------  ---------------------------------- 
  3661      10      511969    9099758   176    0.01    0.3     " 
         -------  ---------  --------  -----         -------  ---------------------------------- 
  3662      10      511968    9099758   176    0.01    0.3     " 
         -------  ---------  --------  -----         -------  ---------------------------------- 
  3663      10      511966    9099758   175    0.01    0.5     " 
         -------  ---------  --------  -----  -----  -------  ---------------------------------- 
 

Legend:

Cu - copper, cc - chalcocite, cpy - chalcopyrite, bn - bornite, qtz - quartz

Notes:

   1.   Co-ordinates are in UTM Zone 26N (WGS 84) and have been measured by hand-held GPS 
   2.   Positional measurements (northing, easting, and RL) that are calculated by GEX are in italics 

Descriptions:

Trench: A prospecting trench is used to investigate and sample the subsurface. At ARC, a 3m wide trench was dug to approximately 0.5m depth in 'Black Earth' mineralisation (extremely altered, poorly consolidated, high-grade mineralisation).

Pit: A prospecting pit is used to access fresher rock at depth. At ARC, six historical pits were set in 'Black Earth' and varied in depth from 0.45m to 0.8m.

Chip line: A line of rock chips broken off across a mineralised outcrop to provide a representative measure of width and grade of mineralisation. The chip line will cover a mineralised zone as well as the unmineralized wall rock on either side. At ARC, chip lines have intervals of 0.5m or 1m, where the rock chips from each interval making one sample. In each interval, chips of rock are broken off the outcrop along a line (i.e., a chip line) and sampled. The objective of this method is to provide a representative measure of mineralisation grade and width.

Appendix C: JORC Code, 2012 Edition - Table 1 Report

 
                                                                                                 JORC Table 1, section 
                                                                                                 1 
                    Criteria   Arctic Rift Copper project 
         Sampling techniques   Assay data presented in this document largely 
                                relate to the historical geochemical sampling 
                                of trench samples, rock chips, grab samples, and 
                                stream sediments. For the 2010 work by Avannaa: 
                                " A total of 202 samples were collected during 
                                the field program. Of these, 199 samples were 
                                bagged and send to Actlabs, Ancaster Canada for 
                                chemical analyses. Some 182 of these samples represent 
                                mineralisations, whereas the rest were taken as 
                                reference samples. To access the grade of copper 
                                and silver mineralisation at J.C. Christensen 
                                Land [GEX: effectively the entire ARC licence], 
                                semicontinuous chip lines were undertaken through 
                                the most pronounced mineralised rocks. The length 
                                of individually chip line samples varies but the 
                                standard length is 0.5 m or 1.0 m. The entire 
                                chip line lengths presented in this report are 
                                all estimated as true stratigraphic thickness 
                                across the samples structure. Ten chip lines were 
                                laid out, resulting in a total of 117 chip samples. 
                                A representative hand sample of each chip line 
                                section was collected for reference". The weight 
                                of the samples sent for chemical analyses were 
                                usually in the 1.5 to 2.4kg range, and chip lines 
                                were typically taken over 0.5m to 1.0 m lengths. 
                                In 2011, Avannaa collected 249 rock samples and 
                                227 stream sediment samples across a 4,051km(2) 
                                licence package. The rock samples were submitted 
                                to ALS laboratories for wet-assay analyses, however 
                                the stream sediment samples were only subject 
                                to hand-held XRF analysis. To the best of Greenfields' 
                                knowledge, the XRF readings were never submitted 
                                to the authorities. The weight of the 2011 samples 
                                is typically in the 200g to 300g range. Standards 
                                and duplicates were used in both the 2010 and 
                                2011 programs. 
            Drill techniques   No drilling has ever occurred within the ARC. 
                Drill sample   No drilling has ever occurred within the ARC. 
                    recovery 
                     Logging   No drilling has ever occurred within the ARC, 
                                and as such no logging records exist. 
                Sub-sampling   The Company is unaware of any sub-sampling techniques 
                  techniques    or sample preparation. 
                  and sample 
                 preparation 
                  Quality of   Avannaa used commercial assay-labs that supply 
                  assay data    quality certificates as part of the deliverable. 
              and laboratory    Greenfields has no concern about the wet assays. 
                       tests    However, XRF information should be treated with 
                                caution due to the small sample window available 
                                to hand-held devices and the need for in-field 
                                calibrations depending on the order of magnitude 
                                of the element quanta. Furthermore, as stream 
                                sediments may be highly variable and elements 
                                of interest having very low levels of detection, 
                                Greenfields does not use the 2011 stream sediment 
                                XRF readings. 
                Verification   No third-party verification of the historical 
                 of sampling    assay results has been undertaken. 
                and assaying 
                 Location of   The data locations and topographic control are 
                 data points    based on information that is publicly disclosed 
                                by the Government. Grids are based on UTM Zones 
                                26 and 27N using the WGS84 Datum. 
                Data spacing   The geochemical sampling is erratically distributed 
            and distribution    and based visual anomalism or physical/topographical 
                                availability. Much of the licence area is undercover 
                                which often prevents a grid approach. 
                 Orientation   Historical assays appear to have been collected 
                  of data in    across geological features as opposed to lengthwise. 
                 relation to    The Company considers this to be an appropriate 
                  geological    practice. 
                   structure 
             Sample security   Greenfields has no information on the measures 
                                taken to ensure sample security. Given the age 
                                of the sampling and the low probability of sample 
                                tampering, the Company has no cause for concern. 
           Audits or reviews   Greenfields is unaware of any audits or reviews 
                                within ARC. 
 
 
                                                               JORC Table 1, section 2 
          Criteria   Arctic 
                      Rift 
                      Copper 
                      project 
  Mineral tenement           The Arctic Rift Copper project ('ARC') comprises 
   and land tenure             a single Special Exploration Licence ('MEL-S' 
            status          2021-07, 'SEL'). The spatial area of the application 
                              is 5,774km(2) , the boundary of which is defined 
                                               by the points: 
                                  82deg3'N, 29deg18'W 81deg35'N, 26deg8'W 
                                  82deg3'N, 25deg41'W 81deg30'N, 26deg8'W 
                                  82deg0'N, 25deg41'W 81deg30'N, 26deg54'W 
                                  82deg0'N, 25deg43'W 81deg25'N, 26deg54'W 
                                 81deg59'N, 25deg43'W 81deg25'N, 28deg20'W 
                                 81deg59'N, 25deg44'W 81deg21'N, 28deg20'W 
                                 81deg58'N, 25deg44'W 81deg21'N, 29deg35'W 
                                 81deg58'N, 25deg46'W 81deg19'N, 29deg35'W 
                                  81deg56'N, 25deg46'W 81deg19'N, 31deg0'W 
                                  81deg56'N, 25deg48'W 81deg27'N, 31deg0'W 
                                 81deg55'N, 25deg48'W 81deg27'N, 31deg42'W 
                                 81deg55'N, 25deg50'W 81deg34'N, 31deg42'W 
                                  81deg53'N, 25deg50'W 81deg34'N, 32deg7'W 
                                  81deg53'N, 25deg52'W 81deg51'N, 32deg7'W 
                                  81deg50'N, 25deg52'W 81deg51'N, 31deg0'W 
                                  81deg50'N, 25deg54'W 81deg54'N, 31deg0'W 
                                 81deg46'N, 25deg54'W 81deg54'N, 30deg18'W 
                                 81deg46'N, 25deg55'W 81deg58'N, 30deg18'W 
                                 81deg35'N, 25deg55'W 81deg58'N, 29deg18'W 
 
                              A SEL confers an exclusive right to explore for 
                                mineral for three years at a reduced holding 
                                cost, provided each licence covers more than 
                               1,000km(2) . After three years, the holder of 
                                Special Exploration Licence has the right to 
                            convert the area, whole or in part, to conventional 
                                Exploration Licences. Due to the Coronavirus 
                               pandemic, all licence obligation in Greenland 
                                have been paused until the end of 2021, such 
                                that the SEL can convert to a normal licence 
                                            at the end of 2024. 
 
                                The minimum expenditure obligation for a SEL 
                            is DKK500/km(2) indexed to Danish CPI as at January 
                          1992. Greenfields estimates the expenditure requirement 
                               will be approximately AUD1,080,000 per annum. 
                             However, the Government has waived all expenditure 
                               obligations for 2020 and 2021, and as such, no 
                                holding cost of the licence will crystallise 
                              until 31 December 2022. The obligation for 2022 
                               will be calculated on 1 January 2023 based on 
                           the area under licence on a preceding day. Expenditure 
                            above the minimum regulatory requirement is carried 
                                forward for a maximum of three years. ARC is 
                                             in good standing. 
 
                             There are no third-party royalties or other rights 
                                              relating to ARC. 
       Exploration   ARC 
              done    was 
                by    subject 
             other    to 
           parties    commercial 
                      exploration 
                      by 
                      Avannaa 
                      Resources 
                      Limited 
                      ('Avannaa') 
                      in 
                      2010 
                      and 
                      2011. 
                      In 
                      its 
                      first 
                      year, 
                      Avannaa 
                      focussed 
                      its 
                      work 
                      in 
                      a 
                      small 
                      area 
                      in 
                      the 
                      northern 
                      part 
                      of 
                      the 
                      licence 
                      area 
                      known 
                      as 
                      Neergaard 
                      North. 
                      This 
                      work 
                      focussed 
                      on 
                      historical 
                      government 
                      and 
                      academic 
                      work 
                      that 
                      had 
                      identified 
                      highly 
                      anomalous 
                      copper 
                      mineralisation. 
                      In 
                      2010, 
                      the 
                      work 
                      included 
                      geochemical 
                      soil 
                      sampling, 
                      rock 
                      chipping 
                      and 
                      trenching 
                      of 
                      high-grade 
                      material 
                      associated 
                      with 
                      a 
                      NW-SE 
                      trending 
                      fault 
                      breccias. 
                      Based 
                      on 
                      the 
                      success 
                      of 
                      the 
                      2010 
                      program, 
                      Avannaa 
                      undertook 
                      a 
                      much 
                      larger 
                      regional 
                      reconnaissance 
                      program 
                      in 
                      2011. 
                      This 
                      program 
                      involved 
                      a 
                      heli-supported 
                      geochemical 
                      sampling 
                      program 
                      over 
                      a 
                      large 
                      area 
                      designed 
                      to 
                      test 
                      the 
                      copper 
                      prospectivity 
                      of 
                      various 
                      stratigraphic 
                      positions, 
                      as 
                      well 
                      as 
                      extending 
                      the 
                      length 
                      of 
                      the 
                      'Discovery 
                      Zone' 
                      identified 
                      in 
                      2010. 
                      Both 
                      aspects 
                      of 
                      this 
                      program 
                      were 
                      successful 
                      in 
                      that 
                      the 
                      Discovery 
                      Zone 
                      was 
                      shown 
                      to 
                      have 
                      a 
                      minimum 
                      strike 
                      length 
                      of 
                      2km 
                      before 
                      disappearing 
                      undercover; 
                      and 
                      that 
                      certain 
                      stratigraphic 
                      horizons 
                      show 
                      copper 
                      anomalism 
                      over 
                      a 
                      significant 
                      lateral 
                      extent. 
                      However, 
                      much 
                      of 
                      the 
                      extended 
                      area 
                      explored 
                      by 
                      Avannaa 
                      was 
                      located 
                      to 
                      the 
                      southeast 
                      of 
                      the 
                      ARC 
                      and 
                      is 
                      now 
                      located 
                      in 
                      a 
                      Government-mandated 
                      no-go 
                      zone 
                      for 
                      mineral 
                      exploration. 
           Geology   ARC contains a sequence of Mesoproterozoic-aged 
                      sediments sandstones belonging to the Independence 
                      Fjord Basin that have been intruded by highly-altered 
                      dolerites, and overlain by 1.2km of Mesoproterozoic-aged 
                      flood basalts ('Zig-Zag Fm' basalts). In turn, 
                      the basalts are overlain by 1.1km of Neoproterozoic-aged 
                      (1,000M to 541M years ago) clastic and carbonate 
                      sediments belonging to the Hagen Fjord Group. 
                      The lower portion of the Hagen Fjord Group is 
                      dominated by sandstones and siltstones, and the 
                      upper part by limestone and dolomites. Based 
                      on stream sediment samples, the iron oxide minerals 
                      switch from magnetite to the east of ARC, to 
                      haematite within ARC, which reflects a change 
                      in fluid oxidation state (from reduced to oxidised). 
                      Fluid flow is from east to west which implies 
                      that oxidation is a component of the copper dropping 
                      out of solution. The oxidation of a reduced fluid 
                      is consistent with the chemistry required to 
                      form native copper such as that observed in ARC. 
                      The metamorphic grade of the Zig-Zag Fm basalts 
                      is of the zeolite facies, and the Hagen Fjord 
                      Group sediments show lower grade metamorphism. 
                      There is adequate preservation aside from mechanical 
                      erosion. 
 
                      Commercially interesting copper mineralisation 
                      occurs in both the basalts and Hagen Fjord Group 
                      sediments. The basalts are known to contain in 
                      situ native copper, and native copper is found 
                      extensively in the surrounding drainage systems. 
                      Significantly, the native copper specimens recovered 
                      by Avannaa in 2010 weigh up to 1kg. Greenfields 
                      considers that the age, setting and mineral composition 
                      makes the Zig-Zag Fm copper analogous to the 
                      copper deposits of the Michigan Upper (Keweenaw) 
                      Peninsula, and a primary source of copper for 
                      the anomalies reported in the overlying sediments. 
                      The fault breccias that transect the basalts 
                      and Neoproterozoic sediments are interpreted 
                      by the Company to represent fluid pathways as 
                      there are zones of intense potassium alteration 
                      within the surrounding quartz dominated sedimentary 
                      rocks. These breccias, which are up to 25m wide, 
                      show copper mineralisation. The chalcocite and 
                      chalcopyrite copper-bearing minerals are significant 
                      as they demonstrate that sulphur has been added 
                      into a previously sulphur-undersaturated system. 
                      A source of sulphur is generally considered an 
                      important factor in the sediment-hosted copper 
                      'deposit model'. Other important components of 
                      the deposit model are also reported, including 
                      pseudomorphed gypsum (a source of sulphur, and 
                      copper mobilising salts), hydrogeologic seals, 
                      and contrasting oxidation states. Copper sulphides 
                      occur in the predicted geological lithological 
                      settings. The highest copper grades are close 
                      to geophysical gravity, magnetic and electromagnetic 
                      anomalies. The 640 km(2) area of geophysical 
                      and geochemical anomalism is dubbed the Minik 
                      Anomaly (or 'Singularity' in the supporting Technical 
                      Assessment Report) 
 
                      The age of the known mineralisation concerns 
                      at least two episodes. The Company identifies 
                      the Elzevirian Orogeny (c. 1,250Ma) as the likely 
                      event associated with the native copper mineralisation 
                      in the basalts. However, the Neoproterozoic-aged 
                      sediment-hosted copper sulphides demonstrate 
                      that there was a second mineralising event associated 
                      with the waning Caledonian Orogeny (c. 390 to 
                      380 Ma) The Elzevirian and Caledonian orogenies 
                      have a similar orientation. The c. 385 maximum 
                      age is supported by the absence of mineralisation 
                      known to younger than the Silurian Period (443.8 
                      Ma to 419.2 Ma). The Silurian is associated with 
                      the formation of the Citronen zinc deposit, currently 
                      licenced by Ironbark Zinc Ltd. Greenfields considers 
                      Citronen and ARC's copper sulphides to have formed 
                      due to the same event. The known copper and zinc, 
                      combined with a Greenfields interpreted geological 
                      history, geochronology and hydrothermal fluid 
                      temperatures, to define the +60,000km(2) Kiffaanngissuseq 
                      Metallogenic Province. 
 
                      The basal flows of the Zig-Zag Fm basalts show 
                      a marked depletion in nickel. Such a depletion 
                      suggests that the nickel may have been deposited 
                      into sulphides and conceptually, as nickel sulphide 
                      deposit. There has been no effective commercial 
                      work on testing the nickel sulphide potential. 
                      Pentlandite, a nickel-bearing sulphide, is observed 
                      in at least one of the intrusions beneath the 
                      basalts. There is no other evidence upon which 
                      the nickel-sulphide prospectivity can be evaluated 
                      at this stage. 
 
                      An interactive Government portal that contains 
                      the geology, and supporting reports can be accessed 
                      via: http://www.greenmin.gl/home.seam . A fully 
                      referenced Technical Assessment Report on ARC, 
                      can be accessed at http://dx.doi.org/10.13140/RG.2.2.18610.84161 
                      . 
             Drill   No 
              hole    drilling 
       information    has 
                      ever 
                      occurred 
                      within 
                      the 
                      ARC 
                      or 
                      in 
                      the 
                      surrounding 
                      area. 
  Data aggregation   All historical results presented in this release 
           methods    are based on those published by third parties. 
                      Greenfields has made a point of reporting the 
                      weighted-averages and has avoided individual 
                      high-grade results that may not be representative 
                      of the mineral system. No bottom- or top-cuts 
                      have been applied. No metal equivalent calculations 
                      have been performed. 
                     The 
      Relationship    reported 
           between    historical 
    mineralisation    trenching 
             width    and 
               and    channelling 
         intercept    results 
          lengths.    are 
                      presented 
                      on 
                      both 
                      'as 
                      is' 
                      sub-perpendicular 
                      intersection, 
                      and 
                      where 
                      available 
                      estimates 
                      are 
                      available, 
                      true-width 
                      basis. 
                      Accompanying 
                      statements 
                      accompany 
                      all 
                      true-width 
                      estimates. 
                      No 
                      sub-parallel 
                      or 
                      parallel 
                      sample 
                      intervals 
                      were 
                      collected 
                      or 
                      disclosed. 
          Diagrams   All relevant maps are presented in the main body 
                      of this document, with additional tables and 
                      figures available in the Technical Assessment 
                      Report. 
          Balanced   Greenfields 
         reporting    has 
                      sourced 
                      and 
                      reasonably 
                      presented 
                      the 
                      relevant 
                      results, 
                      where 
                      available. 
                      The 
                      reader 
                      is 
                      cautioned 
                      that 
                      geochemical 
                      rock 
                      chip 
                      samples, 
                      by 
                      their 
                      nature, 
                      are 
                      not 
                      representative 
                      samples. 
                      Geochemical 
                      rock 
                      chip 
                      samples 
                      are 
                      erratically 
                      collected, 
                      lack 
                      scale 
                      and 
                      design. 
                      Geochemical 
                      results 
                      must 
                      be 
                      viewed 
                      as 
                      empirical 
                      evidence 
                      of 
                      anomalism, 
                      and 
                      not 
                      as 
                      a 
                      representative 
                      indication 
                      of 
                      mineralisation. 
                      Furthermore, 
                      due 
                      to 
                      the 
                      historical 
                      nature 
                      of 
                      the 
                      samples, 
                      it 
                      is 
                      not 
                      possible 
                      at 
                      the 
                      time 
                      of 
                      publication, 
                      to 
                      perform 
                      checks 
                      and 
                      balances 
                      on 
                      the 
                      numbers 
                      quoted 
                      in 
                      the 
                      literature. 
 Other substantive   In 1998, the Government conducted an airborne 
       exploration    electromagnetic survey in the north of the ARC. 
              data    The flight lines were carried out at an altitude 
                      of 120m above ground on a 400m line spacing. 
                      The geophysical data is freely available on the 
                      Government portal. Sediment-hosted copper typically 
                      does not respond to most geophysical methods 
                      and as such, the data is not suited to direct-detection. 
                      The only exception is 3D induced polarisation 
                      methods that have not been conducted in ARC. 
                      However, Greenfields identifies that the magnetic 
                      anomaly is coincident with a gravity anomaly 
                      and interprets this signature to represent an 
                      iron-enriched hydrothermal footprint. Native 
                      copper and copper sulphides occur within this 
                      anomaly. No bulk density, geotechnical, metallurgical, 
                      rock characterisation, or groundwater analysis 
                      has been performed. Greenfields is unaware of 
                      any deleterious or contaminating substances associated 
                      with the known mineralisation. 
           Further   Despite 
              work    the 
                      highly 
                      encouraging 
                      results 
                      and 
                      strong 
                      indications 
                      of 
                      a 
                      large 
                      mineral 
                      system, 
                      the 
                      ARC 
                      is 
                      at 
                      an 
                      early 
                      stage 
                      of 
                      exploration. 
                      Greenfields 
                      has 
                      tightly 
                      constrained 
                      the 
                      main 
                      mineralising 
                      events, 
                      but 
                      currently 
                      only 
                      2D 
                      data 
                      are 
                      available. 
                      Obtaining 
                      3D 
                      data 
                      down 
                      to 
                      the 
                      basement 
                      of 
                      the 
                      basins 
                      will 
                      help 
                      in 
                      modelling 
                      the 
                      movement 
                      of 
                      metal 
                      rich 
                      fluids. 
                      Passive 
                      seismic 
                      is 
                      identified 
                      as 
                      a 
                      low-cost 
                      method 
                      for 
                      acquiring 
                      deep, 
                      broad 
                      3D 
                      data. 
                      This 
                      method 
                      required 
                      around 
                      30 
                      days 
                      of 
                      collection, 
                      during 
                      which 
                      geochemical 
                      sampling 
                      and 
                      site 
                      visits 
                      can 
                      occur. 
                      In 
                      areas 
                      of 
                      known 
                      anomalism, 
                      such 
                      as 
                      the 
                      Discovery 
                      Zone, 
                      a 
                      3D 
                      induced 
                      polarisation 
                      survey 
                      is 
                      recommended. 
                      The 
                      program 
                      is 
                      intended 
                      to 
                      provide 
                      enough 
                      contextual 
                      information 
                      to 
                      build 
                      a 
                      3D 
                      model, 
                      with 
                      higher-resolution 
                      data 
                      available 
                      over 
                      the 
                      Discovery 
                      Zone. 
                      It 
                      is 
                      also 
                      recommended 
                      that 
                      geochemical 
                      in 
                      situ 
                      sampling 
                      be 
                      performed. 
                      Before 
                      a 
                      field 
                      program 
                      satellite 
                      data 
                      acquisition 
                      and 
                      historical 
                      sample 
                      analysis 
                      should 
                      be 
                      conducted. 
 

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