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Mac Equity Partners

Equity Capital Markets

August 2019

Yandal Resources | Company Summary

COMPANY OVERVIEW

CAPITAL STRUCTURE

GICS Industry Group Materials

Shares on Issue 64.44m

Share Price $0.20

52 week low/high $0.19/

$0.25

Cash $5.7m

Market Capitalisation

(undiluted) $12.89m

Unlisted Options ~11.9m

MAC EQUITY PARTNERS

Hugh Pilgrim | + 61 449 581 256

hpilgrim@macequity.com.au

Author

Hugo Shervington | +61 409 912 074

hshervington@macequity.com.au

Yandal Resources Limited (“YRL” or “the Company”) is an emerging Australian gold company focused on the discovery and development of tier 1 gold projects in the highly prospective Yandal and Norseman-Wiluna Greenstone Belts of Western Australia. The Company’s flagship project is its 100% owned Ironstone Well Project, containing the Flushing Meadows Prospect, located 60km South West of Wiluna. The Project is located adjacent to and along strike from several existing mines and well established infrastructure including:

Northern Star’s (ASX:NST) Jundee >10Moz

Echo Resource’s (ASX:EAR) Bronzewing 2.3Moz

Bellevue’s (ASX:BGL) Bellevue project >2.5Moz

Blackham Resources (ASX:BLK) Wiluna >11Moz

Red 5’s (ASX:RED) Darlot >3Moz

MANAGEMENT

Lorry Hughes Managing

Director

Katina Law Non-Executive

Chair

Kelly Ross Non-Executive

Director

MAJOR SHAREHOLDERS

Kesli Chemicals Pty Ltd 17.5%

Northern Star Resources

Ltd 15.5%

AU Xingao Investment Pty

Ltd 10.9%

Abadi Investments Pty Ltd

<VK &ML Datt Super A/C> 7.3%

Top 20 79.1%

TARGETING “TIER 1” GOLD DISCOVERIES

Strategic tenement package located within multi-million oz gold province & projects

adjacent/along strike from existing >1Moz deposits & well established infrastructure.

ENCOURAGING EARLY STAGE SUCCESS

RC drilling at the Company’s flagship Flushing Meadows Project has returned shallow,

high grade intercepts including 27m @ 2.32g/t Au from 89m, 16m @ 2.72g/t Au from

24m & 16m @ 2.26g/t Au from 5m.

TIGHT & STRATEGIC SHARE REGISTER

Northern Star’s 15% stake proves the quality of YRL’s tenement package & presents

exciting future growth opportunities for the Company.

WELL FUNDED FOR FUTURE EXPLORATION & DEVELOPMENT

Rights Issue and Shortfall Placement completed in June/July currently raised $2.9m. The

Company currently has $5.7m cash on hand for future progress.

AUD GOLD PRICE AT RECORD HIGH

Gold soaring well beyond A$2,000/oz & Australian dollar continuing to fall presents

exciting times for the industry.

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MAC EQUITY PARTNERS | Equity Research Yandal Resources Limited

FLAGSHIP PROJECT | FLUSHING MEADOWS

Figure 1: Flushing Meadows Cross Section

Figure 2: Location of Flushing Meadows & other YRL prospects

The Company has recently undertaken an extensive RC drilling program targeting shallow oxide gold intersections at Flushing Meadows. Encouraging results have been returned defining shallow gold mineralisation over a identified strike length of 1.9km, whilst remaining open along strike and at depth. Significant drill intercepts from recent drilling include:

16m @ 2.26g/t Au from 91m including 12m @ 3.02g/t Au;

16m @ 2.72g/t Au from 24m;

27m @ 2.32g/t Au from 89m;

16m @ 2.26g/t Au from 5m;

4m @ 9.09 g/t Au from 24m;

96m @ 0.26 g/t Au from 72m.

Looking forward, YRL’s next step is compiling the results to

develop a maiden JORC Resource Estimate, set to be

completed in August. From here, the Company plans to

continue drilling, targeting untested ground which has the

potential to grow and define the resource further. Exploration

costs at Flushing Meadows appear to be ~$5/oz. Extremely

cheap discovery costs will continue to be beneficial for the

Company’s cash levels as future exploration will target further

mineralization across a number of known deposits including

Oblique and Quarter Moon. The current geological and

structural understanding of Flushing Meadows presents an

opportunity for low cost, easy access, open pit mining which

should create significantly lower costs for future mining

operations. With the mining license already granted, mining

could start in H2 of 2021.

With an abundance of operating mines, processing plants and

other infrastructure within a close proximity to Flushing

Meadows, the Company is in a healthy position to benefit from

any potential future corporate activity. A number of currently

operating mills within close proximity to Flushing Meadows are

working below capacity, which presents the opportunity for

toll treating or JV arrangements, which could create significant

cost benefits for the Company.

The Wiluna mill owned by Blackham Resources (BLK.ASX) is

currently operating at half capacity and the company is actively

trying to build its stockpile. While Echo’s (EAR.ASX) Yandal

Gold Project includes the Bronzewing Processing Hub, centred

around a 2.0 million tonnes per annum conventional CIL gold

treatment plant. The mill is currently on care-and-

maintenance, however detailed studies undertaken by Echo

demonstrate it can be refurbished in a six month timeframe.

Echo is currently exploring ground around Bronzewing to build

on it’s total resource of 1.7 Moz Au.

In addition to this, M&A activity has been highly prominent

within the mining sector in recent years as major miners look

to replenish their resources. The majors’ have been particularly

eager to add further resources to their inventory to take full

advantage of the current record high gold prices. Northern

Star’s 15% stake in the Company shows their confidence in

YRL’s assets and willingness to progress further exploration to

help delineate and define gold mineralisation across these.

THE YANDAL GOLD RUSH

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MT MCCLURE

The Mt McClure Project contains some highly prospective

ground, including three shallow open pit mines that

produced 110koz Au.

The Success pit was mined between 1993-2010 for 38,000

oz to a depth of 80m. The mine remains open at depth

with drilling indicating high grade plunging shoots;

5m @ 16.08g/t; and

5m @ 11.56g/t at the base of the pit

6.6m @ 4.12g/t (154.8m);

4.6m @ 3.61g/t (185.9m);

7.1m @ 3.09g/t (180.9m);

8.0m @ 3.23g/t (140.0m);

5.0m @ 4.04g/t (204.0m).

MAC EQUITY PARTNERS | Equity Research

The Gordons Dam Prospect is located 16km North of NST’s

Kanowna Belle mine. The Company has undertaken early

stage drilling to gain a better understanding of

mineralisation trends which discovered new paleochannel

and porphyry hosted mineralisation. Intercepts included;

8m @ 7.33 g/t Au from 35m;

3m @ 18.30 g/t Au from 33m;

15m @ 0.95 g/t Au from 80m;

8m @ 1.16 g/t Au from 100m.

The company is targeting extensions to both shallow oxide

mineralisation and primary mineralisation related to a

porphyry and mafic contact zone.

Yandal Resources Limited

GORDONS GOLD PROJECT

The company has recently undertaken a new SAM Survey

over 750m of strike covering the mineralised area. The

results are currently being interpreted and will be used to

plan the next RC drill program set for August/September.

Further drilling programs for Mt McClure are in line for the

future to test between 150m –250m depth.

The added advantage to this project is that it is located ex-

tremely close to the 2Mtpa Bronzewing processing plant,

owned by Echo Resources (ASX:EAR), presenting the oppor-

tunity for toll-treating arrangements or any other corporate

activity that mat be beneficial to the Company.

Figure 3: Mt McClure underground drilling

Figure 4: Gordons Dam Prospect

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AUSSIE GOLD PRICE AT RECORD HIGH

DISCLAIMER

DISCLAIMER | This research note has been prepared for and is intended for Wholesale Investors only as defined by Section 761G of the Cor po-

rations Act, 2001. In accordance with Section 949A of the Corporations Act 2001, this document contains unsolicited general financial information

only. In preparing this document Mac Equity Partners Pty Ltd (AFSL 338731, ABN 32 126 369 640) did not consider the investment objectives, fi-

nancial situation and particular needs (‘financial circumstances’) of any particular person and no recommendation (whether express or implied)

contained in this document should be considered reliable. Accordingly, before acting on any information contained in this document, you should

assess whether the information is appropriate in light of your own financial circumstances or contact your Mac Equity Partners Pty Ltd adviser.

The company featured in this document should be considered speculative in nature and carry a high degree of investment risk. Please consider if

investments in these types of companies are appropriate for your personal circumstance. Mac Equity Partners seeks to and does business with

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conflict of interest that could affect the objectivity of this report. Investors should consider this as only a single factor in making their investment

decisions.

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MAC EQUITY PARTNERS PTY LTD AFSL: 338731 ABN: 32 126 369 640

The Australian dollar gold price has recently been tracking

well above the $2,000/oz mark, setting new record highs

for the precious metal. Analysts are predicting this to

strengthen well into the future, creating significant growth

in returns for Australian based gold miners.

To add to this, the Australian dollar declined 5.1% over the

2018/2019 financial year and this trend is predicted to

continue with the Reserve Bank continuing to slash the cash

rate.

SUITE 7, 29 THE AVENUE, NEDLANDS, WA 6009, AUSTRALIA

T: +618 9386 9577 F: +618 9389 1464 E: ADMIN@MACEQUITY.COM.AU WWW.MACEQUITY.COM.AU

KEY RISKS

Exploration Risk: Mineral exploration is inherently high risk and there is the potential that Yandal’s exploration programs may not yield economically feasible mining projects. Market Risks: Declines in equity markets may put pressure on junior resource companies as investors move away from the sector into safe haven investments. Capital Risk: The Company will likely need to raise capital in the future. An inability to raise capital could significantly affect the Company, its operations and future exploration programs. Commodity Risks: Whilst Yandal is not financially exposed to movements in the gold price, as it does not have any production at this stage, movements in the gold price are likely to impact sentiment towards the company and its projects.

MAC EQUITY PARTNERS | Equity Research Yandal Resources Limited

UPCOMING CATALYSTS

Ongoing – Continued news flow from drilling

across all deposits

JORC compliant Resource Estimation set to

be announced in August

Following the maiden JORC Resource Estimation

announcement, the Company is expected to have

a PEA for Flushing Meadows completed in the

December Quarter