AGM - Lorena Gold Project November 2015

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Disclaimer

This presentation may contain forward looking statements that are subject to risk factors associated with exploration and mining.

It is believed that the expectations reflected in these statements are reasonable but they may be affected by variables and

changes in underlying assumptions which could cause actual results or trends to differ materially, including but not limited to price

fluctuations, actual demand, currency fluctuations, drilling and production results, reserve estimations, loss of market, industry

competition, environmental risks, physical risks, legislative, fiscal and regulatory changes, economic and financial market

conditions in various countries and regions, political risks, project delay or advancement, approvals and cost estimates. All

references to dollars, cents or $ in this presentation are to Australian currency unless otherwise stated.

Competent Person Statement

The information in this report that relates to Exploration Results is based on information compiled by Mr Russell Meares, a

Competent Person who is a member of the Australian Institute of Geoscientists. Mr Meares is a part time employee of the

Company and has sufficient experience which is relevant to the style of mineralisation and type of deposits under consideration

and to the activities which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the ‘Australasian

Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves.’ Mr Meares consents to the inclusion in this

presentation of the matters based on his information in the form and context in which it appears.

The information in this report that relates to the Lorena Gold Project resource is extracted from the report entitled Resource

Update at Lorena created and released to the ASX on 27 January 2012 (which contained a separate Competent Person

Statement by Geos Mining). The Company confirms that it is not aware of any new information or data that materially affects the

information included in the original market announcement and, in the case of estimates of Mineral Resources, that all material

assumptions and technical parameters underpinning the estimates in the relevant market announcement continue to apply and

have not materially changed. The Company confirms that the form and context in which the Competent Person’s findings are

presented have not been materially modified from the original market announcement.

Disclaimer and Competent Person Statement

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Lorena Project

• The Lorena Gold project, 15km east of Cloncurry and

135km east of Mt Isa, Qld

• Malachite entered into a joint venture agreement

(JVA) with BCD Resources NL (ASX code: BCD) for

BCD to earn a 50% interest by developing the Lorena

project.

• A flotation gold processing plant facility was being

constructed by BCD to produce a concentrate on site

for shipment to the Beaconsfield plant (owned by

BCD) in Tasmania for further treatment to gold dore.

• BCD went into Receivership in late January 2015

• Since then the project has been on hold.

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Malachite Resources – Settling the Lorena plant

• BCD went into Receivership in late January 2015.

• A review of the capital costs and funding was carried out.

• MAR and BCD could not agree on terms for a re-negotiation of the JVA.

• BCD went into Voluntary Administration in April 2015.

• In May 2015, MAR terminated the JVA.

• In July 2015, MAR accepted a financing Letter of Offer from MKS (BCD’s secured lender) for MAR to develop

the project and sell a gold concentrate to MKS at the mine gate.

• The Offer was subject to a Project Development Plan (PDP) to be carried out by MAR.

• In September 2015, MAR completed the PDP and concluded that the costs to complete the Lorena project

were more than that assumed by BCD/MKS.

• Without further financing from MKS and without a change in concentrate terms, the MKS financing offer could

not be provided nor accepted. MKS withdrew its financing offer.

• In the last couple of months, MAR and BCD/MKS have been negotiating terms to settle the partly constructed

Lorena concentrate plant.

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Lorena – Producing gold on site

• The benefits from producing gold (rather than a gold concentrate) using a CIL plant on site after the flotation

circuit are compelling.

• An integrated processing flow sheet at Lorena – no concentrate to be produced or stored;

• No costs for the transporting of concentrate;

• Reduced overall operating costs because only running one processing site;

• Less working capital required since there is no transport and processing of a concentrate;

• The ability to mine at a lower cut-off grade because of the lower operating costs - more ounces are processed;

• Less mining risk since mining lower grade material which is now processed rather than stockpiled;

• Better economics of treating any additional resources – from a potential underground operation; and

• The ability to treat other ores in the region, both sulphides and oxides.

• In discussions for the supply of a CIL plant on a wet hire basis to produce gold dore on site at Lorena.

• The CIL plant will be mobile so that it can be constructed off-site and be transported to Lorena by truck in

modules.

• Producing gold on site reduces project risk and increases project returns.

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• High gold grade mined around 10g/t - robust.

• Gold recovered in the first year of around 35,000 ozs from an open cut operation (Stage 1).

• Overall metallurgical recovery of around 75% for sulphides.

• All in operating costs forecast at A$800/oz (includes expected leasing charge of CIL plant)

• Malachite requires A$8m of funding (including working capital) to bring project into production

• Malachite is progressing discussions with financiers to develop Lorena on the basis that gold will be

produced on site.

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Lorena Gold Project F

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Flotation Plant Primary Ball Mill installed

Site Offices

Lorena Project – Photos

Tailings Dam area grubbed

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• In November 2completed two RC holes to collect 250kg of ore samples for metallurgical test work for

CIL plant optimisation

• Commenced work on EA amendment to allow cyanide on site.

• Metallurgical test work for CIL plant to commence as soon as practicable.

• EA amendment expected to take some 4 months for approval from submission to DEHP.

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Lorena Gold Project – CIL plant F

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Lorena Project – CIL Circuit F

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Lorena Project – Development Schedule F

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• Drilling intersected 5.3m at 13g/t Au at a depth of

200m

• Survey highlighted 2 strong electromagnetic

conductors that represent sulphide targets

• Each target is similar in size to the current resource

• Excellent potential for resource additions at depth

• Significant underground mining potential

Lorena Project – Targeting Resources at Depth F

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• Portal designed to come off near bottom

of pit in competent ground

• Conventional underground mining

• 5.3m at 13g/t Au at a depth of 200m is a

mineable width for underground

• Recent study suggest plunge of ore body

steeper than previously thought.

• Initial 8-10 holes planned to test

underground potential

• Quotes being received from drilling

contractors for a 2,500m drilling program

using RC with diamond tail.

Lorena Long Section - Targeting resources at depth

Recent review of data suggests steeper plunge of ore body

5.3m @ 13g/t Au Initial Target Area

Lorena Gold Project – Underground (Stage 2) F

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Lorena – nearby EPMs

• 100% owned by Malachite

• 7km contact between the Toole Creek Volcanics and the

Mt Norna Quartzite.

• Located 5 km south and west of Lorena

• Drill targets generated from soil geochemistry at both

Lady Mary and Bloodwood prospects

• 450m strike length target at Lady Mary

• High copper and gold assays from rock chip samples

(102g/t Au and 14% Cu) at Lady Mary

• 300m strike length target at Bloodwood

• Initial exploration drilling at Lady Mary completed in

November 2015.

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Lady Mary Exploration

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• 8 hole, 558m, RC program completed in November 2015.

• Hole lengths varied between 42 and 114m.

• 323 samples sent for assaying.

• Assay results expected early December.

• Any gold oxides discovered at Lady Mary could be treated at a CIL plant at Lorena.

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