Virgo Resources Limited:An emerging Namibia and

Botswana-focused Copper-Gold Company

IPO INVESTOR PRESENTATION

ASX: VIRNovember 2019

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DisclaimerThis presentation has been prepared and issued by Virgo Resources Limited (the “Company") to inform interested parties about the Company and its progress. The material contained in this presentation sets out general background information onthe Company and its activities. It does not constitute or contain an offer or invitation to subscribe for or purchase any securities in the Company nor does it constitute an inducement to make an offer or invitation with respect to those securities. Noagreement to subscribe for or purchase securities in the Company will be entered into on the basis of this presentation.

The information supplied is in summary form and does not purport to be complete. The Company, its directors, officers, employees, agents, affiliates and advisers have not verified the accuracy or completeness of the information, statements andopinions contained in this presentation. Accordingly, to the maximum extent permitted by law, the Company makes no representation and gives no assurance, guarantee or warranty, express or implied, as to, and takes no responsibility andassumes no liability for, the authenticity, validity, accuracy, suitability or completeness of, or any errors in or omission from, any information, statement or opinion contained in this presentation.

You should neither act nor refrain from acting in reliance on this presentation material. This overview of the Company does not purport to contain all information that its recipients may require in order to make an informed assessment of theCompany's prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy, and completeness of the information, statements and opinions contained in this presentation andwhen making any decision in relation to this presentation or the Company. The information in this presentation does not take into account the objectives, financial situations or needs of any particular individual. you should consider seekingindependent professional advice based on your own objectives. To the extent permitted by law the Company, its directors, officers, employees, agents, affiliates and advisers exclude any and all liability (including, without limitation, in respect ofdirect, indirect or consequential loss or damage or loss or damage arising out of negligence) arising as a result of the use of anything contained in or omitted from this presentation.

All statements, other than statements of historical fact, included in the presentation, including without limitation, statements regarding forecast cash flows, future expansion plans and development objectives of the Company are forward-lookingstatements. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they involve subjective judgement, assumptions and analysis and are subject to significant risks, uncertainties andother factors, many of which are outside the control or, and are unknown to the Company. Accordingly, there can be no assurance that such statements or expectations will prove to be accurate and actual results and future events may differmaterially from those anticipated or described in this presentation. Historic information is not an indication or representation about the future activities of the Company.

The Company disclaims any obligation or undertaking to disseminate any updates or revisions to any information contained in this presentation reflect any change in expectations, events, conditions or circumstances on which that information isbased.

This presentation is provided on a strictly private and confidential basis, to be used solely by the recipient. Neither this presentation nor any of its contents may be reproduced or used for any other purpose without the prior written consent of theCompany. In accepting this presentation, the recipient agrees that it is provided solely for its use in connection with providing background information on the Company and that it is not used for any other purpose.

Competent Persons’ StatementsStatements contained in this presentation relating to historical exploration results and historical estimates of mineralisation are based on, and fairly represents, information and supporting documentation prepared by Dr Quinton Hills, who is amember of the Australian Institute of Mining & Metallurgy (AusIMM), Member No. 991225. Dr Hills is a consultant of the Company and has sufficient relevant experience in relation to the mineralisation styles being reported on to qualify as aCompetent Person as defined in the Australian Code for Reporting of Identified Mineral Resources and Ore Reserves (JORC) Code 2012. Dr Hills consents to the use of this information in this presentation in the form and context in which it appears.

Statements contained in this presentation relating to the Hope Copper-Gold Project Mineral Resources, are based on, and fairly represents, information and supporting documentation prepared by Mr Chris Grove, who is a member of the AustralianInstitute of Mining & Metallurgy (AusIMM), Member No 310106. Mr Grove is a full-time employee of the mineral resource consulting company “Measured Group”, who were contracted by Virgo Resources Limited to prepare an estimate of theMineral Resources on the Hope Copper-gold VMS Project. Mr Grove has sufficient relevant experience in relation to the mineralisation styles being reported on to qualify as a Competent Person as defined in the Australian Code for Reporting ofIdentified Mineral Resources and Ore Reserves (JORC) Code 2012. Mr Grove consents to the use of this information in this presentation in the form and context in which it appears.

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Investment Highlights Attractive portfolio of copper projects located in the stable, safe and mining

friendly jurisdictions of Namibia and Botswana

Experienced board with expertise in exploration, mineral resource/reservedelineation, feasibility studies, mine development and production in Africa

10.2Mt @ 1.9% Cu and 0.3g/t Au (~2.2% CuEq¹) JORC 2012 Resource at HopeCopper-Gold Project, Namibia - excellent growth & new discovery potential

Unrealised gold grade potential within Hope mineral resource - most historicdrilling not assayed for gold

Historic, ground EM found that copper mineralisation is conductive but no regionalEM completed – modern exploration techniques to be utilised

Extensive landholding in Kalahari Copper Belt, Botswana - major discoveries

Cupric Canyon’s Zone 5 Copper Deposit Development (91.7Mt @ 2.1% CuResource); Sandfire Resources’ Botswana Copper Project recently acquired inA$167m takeover of MOD Resources; and significant new discovery by KalahariMetals, ~60% owned by Metal Tiger (AIM: MTR), intersecting ~24m of coppersulphides immediately adjacent to Virgo project

Rhinelands Copper Project in Namibia has multiple iron-oxide copper ± gold (IOCG)prospects grading up to 3.24% Cu but not tested at depth

1 CuEq % = Cu% + ((Au ppm/10,000)*(gold price/copper price in equivalent units).

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Board and Management - experienced in copper, exploration, mining and southern Africa

Recently retired from >25 years corporate experience working for publicly listedresources companies to focus on adding value via non-executive directorships and mentorroles

Over past 12 years, was Executive Chairman, then Managing Director and CEO of ASX-listed Gold Road Resources, growing company’s market cap. from ~$5m to >$1b

B.Comm. with distinctions and PGDip in Accounting. Qualified Chartered Accountant withmembership of South African and Australia & New Zealand institutes. Member ofAustralian Institute of Company Directors and Oxford AMLP graduate

Ian Murray – Non-Executive Chairman

Dr Quinton Hills – Managing Director Qualified geologist and PhD in Structural and Economic Geology. Minerals industry

executive with 15 years experience in project generation, exploration and development inbase, precious and tech metals in Australia, Botswana, Sweden and Finland

Responsible for discovery of ~100 Mt of copper Mineral Resources at Boseto CopperProject, Botswana

Previously CEO of Metalsearch Limited; Exploration Manager and Interim CEO of AvalonMinerals Limited; Exploration Manager of Meridian Minerals Limited; and Senior Geologistof Discovery Metals

Dr Eric Lilford – Non-Executive Director Qualified Mining Engineer with PhD in Mineral Economics Significant multi-commodity and multi-jurisdictional expertise obtained >27 years in

Resources industry in technical, economic, financial and academic functions Previously Chairperson, MD and CEO of ASX and AIM listed mining, mining services and

producing mining companies Managed feasibility studies for copper and cobalt assets in Zambia, DRC and Namibia. Also

managed Lady Annie (CopperCo) and Matrix Metals copper operations in QLD on behalf ofReceivers

Martin Stein – CFO / Company Secretary Qualified Chartered Accountant Finance and corporate executive with 15 years of diverse experience

across corporate and professional services Has held positions such as Chief Financial Officer, Financial Controller or

Company Secretary for several ASX listed companies

Previously worked with the Botswana Government in the Ministry ofMines, Energy and Water Resources

Consultant metallurgist with extensive experience in mineral explorationand project development

Strong network at all levels of Government within Botswana

Modisana Botsile – Botswana Country Manager

Accounting Lecturer and Assistant Director, University of Namibia. Master’s Degree in Accounting, Post Graduate Diploma in Business

Administration, Bachelor of Commerce in Business Management &Accounting all from the University of Namibia, as well as an A+Computer Technician Diploma from the Boland Computer College in theWestern Cape, South Africa

African entrepreneur with business interests in Mining, HardwareRetail, Oil, Agriculture, Property, Hospitality and Transport

Strong network at all levels of Government within Namibia

Tango Kandjaba – Namibia Country Manager

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Indicative IPO Timeline

Note: dates are indicative and may be subject to change

June-Sept 2019: Pre-marketing

Early October 2019: Finalise Independent Geologists Report (IGR), Namibian and Botswanan legal/accounting reports, Investigating Accountants Report (IAR)

Mid October 2019: Finalise Prospectus

29 October 2019: Prospectus lodged with ASIC

6 November 2019: Offer opens

4 December 2019: Offer closes

20 December 2019: Expected ASX Listing date

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Number of Shares(Minimum)

Funds Raised($) %

Number of shares(Maximum)

Funds Raised($) %

Existing Shares on Issue 16,882,501 $823,941 35.9% 16,882,501 $823,941 32.4%

Vendor Shares to be Issued 4,600,000 - 10.0% 4,600,000 - 9.0%

Lead Manager IPO Success Shares 2,500,000 - 5.4% 2,500,000 - 4.9%

Unallocated pool of Broker Shares 1,000,000 - 2.1% 1,000,000 - 1.9%

IPO Capital Raising at $0.20 22,500,000 $4,500,000 48.7% 27,500,000 $5,500,000 53.7%

Total Shares on Issue at IPO 47,482,501 $5,323,941 100.0% 52,482,501 $6,323,941 100.0%

Market Capitalisation at IPO $9.5 million $10.5 million

Enterprise Value at IPO $4.2 million ASX : VIROther Securities:Deferred Consideration shares (2 classes with milestones) 9,000,000 Performance Rights Pool (6 classes, 8,782,000 issued) 8,782,000Issued unlisted options attached to 1st Seed Offer (25c / 12 October 2021) 2,400,000Issued unlisted options attached to 2nd Seed Offer (25c / 17 June 2022) 380,500Issued unlisted options attached to 2rd Seed Offer (25c / 17 June 2022) 625,000Issued unlisted founder options (25c / 4 yr from listing) 5,300,000Issued unlisted Board and Management options (25c / 4 yr from listing) 900,000Issued unlisted Conversion of Borrowings Options (25c / 2 yr from listing) 230,625Unlisted Lead Manager Success Options (25c / 3 yr from listing) to be issued 2,000,000

Loyalty Options Issue:

VIR intends to undertake a loyalty issue of listedoptions 3 months post Quotation on a 1-for-4basis with an exercise price of 25 cents and aterm to expiry of 3 years

Indicative Capital Structure

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Indicative Use of Funds

Capital Allocation Category Minimum Raised (AUD$) % Maximum Raised (AUD$) %

Cash Balance $152,488 $152,488

IPO Capital Raised $4,500,000 $5,500,000

Total Capital Reserves $4,652,488 $5,652,488

Use of Funds (over 2 years):

Initial Exploration, Environmental and Geophysical Programs at Hope-Matchless/Rhinelands/Kalahari projects $736,833 15.8% $736,833 13.0%

Drilling and Mineral Resource estimation at Hope-Matchless/Rhinelands/Kalahari projects $2,080,000 44.7% $3,000,000 53.1%

Update the Hope Copper Project Scoping Study $110,000 2.4% $110,000 1.9%

Vendor Cash Payments $150,000 3.2% $150,000 2.7%

Administration and Management $989,808 21.3% $989,808 17.5%

Costs of the Offer $450,392 9.7% $515,616 9.1%

Loan Repayment $110,000 2.4% $110,000 1.9%

Working Capital $25,455 0.5% $40,231 0.7%

Total Funds Allocated $4,652,488 $5,652,488

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Hope Copper-Gold Project 70% interest (with option to 90%) in the Hope Copper-Gold Project located on

the Matchless Copper Belt in Namibia

JORC 2012 mineral resource: 10.2Mt @ 1.9% Cu & 0.3g/t Au (~2.2% CuEq1), 193kt of contained copper plus 103koz of gold and possible silver credits

Project hosts multiple high-grade copper-gold-silver VMS sulphide lenses, characteristic of Matchless Copper Belt: Otjihase Copper Mine >16Mt @ 2.2% Cu & 1.2g/t Au, Matchless Copper Mine ~3Mt @ 2.2% Cu & 0.5-1.5g/t Au

Metallurgical test work: excellent recoveries of 96% copper and 84% gold to a 28% Cu grade concentrate via conventional floatation

Gold upside potential: most historic drilling not assayed for gold but newer drill holes and surface rockchip samples indicate gold grades of 0.1 - 6.8g/t Au

Environmental Clearance Certificate received: exploration to proceed as soon as listing complete - resource drilling, EM surveys, exploration drilling, etc

Underground mining scoping study by SRK in 2012 indicated further studies warranted – study to be updated to include current metal prices, increased mineral resources, gold potential and new discoveries

Excellent infrastructure: well-maintained gravel roads, rail and power facilities in close vicinity and only 150km from Walvis Bay port and rail

1 CuEq % = Cu% + ((Au ppm/10,000)*(gold price/copper price in equivalent units)

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Hope Copper-Gold Project: JORC 2012 Mineral Resources

Hope Copper Project: Copper and Gold Mineral Resources December 20180.7% Cu cut-off

Hope Mineral ResourcesClassification Tonnes (Mt) Cu (%) Contained Cu (kt) Au (g/t) Contained Au (kg)

Indicated 3.09 2.53 78.3 0.84 2,598.9TOTAL 3.09 2.53 78.3 0.84 2,598.9

Hope East (Extension) Mineral ResourcesClassification Tonnes (Mt) Cu (%) Contained Cu (kt) Au (g/t) Contained Au (kg)

Inferred 1.22 1.77 21.6 0.36 439.9TOTAL 1.22 1.77 21.6 0.36 439.9

Gorob-Vendome Mineral ResourcesClassification Tonnes (Mt) Cu (%) Contained Cu (kt) Au (g/t) Contained Au (kg)

Inferred 3.83 1.91 73.2 0.04 153.3TOTAL 3.83 1.91 73.2 0.04 153.3

Anomaly Mineral ResourcesClassification Tonnes (Mt) Cu (%) Contained Cu (kt) Au (g/t) Contained Au (kg)

Inferred 2.03 0.97 19.7 0.00 0.0TOTAL 2.03 0.97 19.7 0.00 0.0

Total Mineral ResourcesClassification Tonnes (Mt) Cu (%) Contained Cu (kt) Au (%) Contained Au (kg)

Inferred 7.09 1.62 114.5 0.08 593.2Indicated 3.09 2.53 78.3 0.84 2,598.9TOTAL 10.18 1.89 192.8 0.31 3,192.1

Sample name Location (Lens) Cu (%) Au (g/t) Sample description

HP001 Hope >10 4.7 Cu carbonate and sulphides in quartzite

HP002 Hope 2.89 0.84 Amphibolite with Cu carbonate

HP003 Hope 1 0.05 Schist with Cu. carbonate

HP004 Hope >10 6.76 Schist with Cu carbonate

HP005 Hope >10 6.04 Magnetic quartzite with Cu carbonate

HP006 Hope 1.89 0.29 Cu carbonate in quartzite

HP007 Du Preez >10 3.22 Schist with Cu. carbonate

LUG001 Luigi 8.57 1.03 Schist with Cu. carbonate

GR001 Gird 1.99 0.05 Schist with Cu. carbonate

BRU001 Bruna >10 1.39 Schist with Cu. carbonate

GH001 Gorob 4.55 0.99 Cu carbonate in quartzite

GH002 Gorob >10 2.43 Magnetic quartzite with Cu carbonate

GH003 Gorob 7.1 0.11 Schist with Cu. carbonate

GH004 Gorob 9.85 5.43 Schist with Cu. carbonate

GH005 Gorob >10 1.74 Schist with Cu. carbonate

GH006 Gorob 1.48 0.03 Schist with Cu. carbonate

GH007 Gorob 4.04 0.91 Magnetic quartzite with Cu carbonate

GH008 Gorob 4.77 1.18 Cu carbonate in quartzite

GH009 Gorob 6.93 0.68 Magnetic quartzite with Cu carbonate

GH010 Gorob >10 4.58 Schist with Cu. carbonate

Rock chip sampling assay results on known copper occurrences found within EPL 5796. 9

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Hope Copper-Gold Project: Exploration Potential

Multiple copper prospects already identified: mostly discovered dueto outcrop, mapping/ trenching and soil surveys

Existing prospects have excellent potential to extend mineralresources down-plunge and along strike

Historic, ground EM survey over main deposits found coppermineralisation very conductive

However, modern regional-scale airborne EM has not beencompleted over this area – significant exploration/discoveryopportunity

First phase exploration: regional Heli-EM survey with 200-250 metredepth penetration to delineate further exploration targets alongstrike and at depth

Hope Project hosted in an Exclusive Prospecting Licence (EPL 5796)covering 345km2 in Namib Naukluft Park: Multiple mines located instate protected areas including Langer Heinrich, Husab Mine,Skorpion Zinc Mine + multiple advanced exploration projects

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Additional Matchless Copper Belt tenure acquired: Exploration Potential

Acquired 80% of adjacent tenure to Hope Copper-Gold Project: covers another 70+ strike km of Matchless Copper Belt & ~900km2 in area

Four copper prospects already identified

Prospects mostly discovered due to outcrop mapping/trenching and soil surveys

1.1km long copper in soil anomaly at Aros not drill tested

Very minor prospect-scale ground geophysics at Aros only. No regional scale geophysics or drilling yet – exploration upside potential

Matchless copper mineralisation is typically very conductive

First phase exploration: regional Heli-EM survey with 200-250 metre depth penetration to delineate further exploration targets along strike and at depth

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Kalahari Copper Belt Project

100% interest in the Kalahari Copper Belt Project covering 15,035km2 inwestern Botswana

Interpreted to cover a strike length of more than 200km of favourablegeology with the multiple targets

Kalahari Copper Belt is an emerging, underexplored copper province:host to major development projects including Cupric Canyon’s Zone 5and Zone 5 North and Sandfire Resources’ T3 copper deposits

Sandfire Resources recently acquired MOD Resources in an A$167mscrip and cash takeover

Cupric Canyon recently secured US$650m project funding for thedevelopment of its massive, high-quality Khoemacau Copper-SilverUnderground Mining Project

Botswana is a stable, pro mining jurisdiction, supportive of mineralexploration and development

VIR’s licences are marked in black outline

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Kalahari Copper Belt Project: Exploration Rationale

VIR licences are marked in red outline

Known deposits generally occur on the margins of elongated, magnetic dome features

Magnetic domes are juxtaposed by major structures that were part of the original extensional rift architecture and have focused mineralising fluids

Virgo’s tenure contains three key areas interpreted to cover the prospective copper mineralisation stratigraphic level (yellow outline)

Northernmost license is proximal and in the same geological setting as the largest and highest grade copper resources in the entire Kalahari Copper Belt:

Zone 5 (100Mt @ 2% Cu and 20g/t Ag)

Zone 5 Nth (26Mt @ 2% Cu and 40g/t Ag)

Northern Licences are also along strike of Sandfire‘s T3 and Cupric‘s Banana Zone and Eland Zone copper resources

Northern area has the most favourable infrastructure setting along the entire belt - power and water

KCB Geology Map interpreted from the Aeromagnetic data

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Kalahari Copper Belt Project: New Discovery

VIR licences are marked in red outline

Airborne EM and aeromagnetic data clearly map the T3/Banana Zone stratigraphic copper target horizons extending onto PL40/2018 for ~35kms

New Discovery: Kalahari Metals has intersect ~24m of copper sulphides (assay pending) at fold hinge target (purple outline) immediately adjacent and along strike of PL40/2018

These fold hinges are interpreted to represent thrust folds that result from reactivation of basin-defining extensional faults that controlled the copper mineralising fluids

This area is Virgo’s highest priority exploration target on the Kalahari Copper Project

First phase exploration: soil sampling and ground/airborne geophysics to identify targets for maiden drilling program

Airborne EM data map (from Kalahari Metals Limited’s Exploration Update announcement dated 6th February 2019 on www.kalaharimetals.com/investor-info/)

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Kalahari Copper Belt Project: Other Priority Targets

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VIR licences are marked in red outline

Historic Airborne EM and aeromagnetic data clearly map the stratigraphic target horizons extending onto Virgo’s tenure: PL253/2018

The AEM data contains three highly prospective, conductive dome anomalies in the correct geologically setting for copper mineralisation in the KCB stratigraphy

One of these conductive dome anomalies extends on to Virgo’s tenure and another is in close proximity (circled in green highlight)

These two areas are also high priority exploration targets for Virgo on the Kalahari Copper Project

First phase exploration: soil sampling and ground/airborne geophysics to identify targets for maiden drilling program

Airborne EM targets overlain on lithostructural interpretation map from magnetic data (figure from Kalahari Metals Limited’s Exploration Update announcement

dated 5th March 2019 on www.kalaharimetals.com/investor-info/)

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Rhinelands Copper Project

90% interest in Rhinelands Copper Project (185km2) situated ~400km northwest of Windhoek, Namibia

Excellent infrastructure: well-maintained roads, powerline within 10km and rail within 100km

Positive surface trench sampling results:

Block E: 8m @ 1.7% Cu

Block G: 25m @ 0.95% Cu

Historical drilling on Block G returned high grades up to 3.24% Cu at shallow depths, including:

RG1: 19.3m @ 1.5% Cu & 36g/t Ag from 25m including 11.6m @ 2% Cu and 50g/t Ag

RG2: 4.8m @ 0.9% Cu & 18g/t Ag from 86.4m depth

IOCG-style: copper-magnetite-hematite-quartz veining and brecciation

Historic IP target to be followed up with drilling: IP target anomaly underlain by magnetic anomaly at 350m below surface

First phase exploration: EIA and then drilling historic IP target

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Indicative post-IPO Exploration ScheduleJan-20 Feb-20 Mar-20 Apr-20 May-20 Jun-20 July-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21

Fieldwork/Geophysics at Hope/Matchless, Rhinelands and Kalahari Copper Belt

Drilling at Hope/Matchless to extend Mineral Resources and test best EM anomalies

Drilling at Rhinelands

Drilling at best targets at Kalahari Copper Belt

Upgrade Hope Mineral Resources with drill results

Upgrade and expand Hope Scoping Study

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Conclusions

Right Commodities: Copper and Gold

Right Place: stable, safe and mining friendly Namibia and Botswana

Right Team: expertise in exploration, mineral resource/reservedelineation, feasibility studies, mine development and production inAfrica

High Grade JORC Resources: Hope Copper-Gold Project: 10.2Mt @1.9% Cu and 0.3g/t Au (~2.2% CuEq¹)

Excellent prospectivity for mineral resource growth and furtherdiscoveries at Hope/Matchless Projects

Excellent prospectivity for further discoveries on the KalahariCopper Project

Clear Plan to deliver value: resource growth and new discoveries1 CuEq % = Cu% + ((Au ppm/10,000)*(gold price/copper price in equivalent units).

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Contacts

www.virgoresources.com.au

Virgo ResourcesDr Quinton HillsManaging DirectorVirgo ResourcesE: quinton@virgoresources.com.auM: +61 409 852 907

Lead ManagerBan FaulknerSanlam Private WealthE: ben.faulkner@privatewealth.sanlam.com.auM: +61 402 298 030

Media and Investor RelationsJames MosesMandate CorporateE: james@mandatecorporate.com.auM: +61 420 991574

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RisksIntroduction An investment in the Company is not risk free and prospective new investors

should consider the risk factors described below, together with informationcontained elsewhere in this Presentation, before deciding whether to apply forShares. The Company is at start-up stage with the objective of exploration anddevelopment of copper resources. Any profitability in the future from theCompany’s business will be dependent upon the successful drilling andexploitation of the Company’s tenements, together with the successful sales andmarketing of the product. Shares being offered in the Company are consideredspeculative due to the present stage of establishment of the Company and therisks inherent in a start-up Company. The following is not intended to be anexhaustive list of the risk factors to which the Company is exposed.

Resource Estimates The Company has JORC compliant resources. JORC resource estimates are an

expression of judgment based on knowledge, experience and industry practice.Estimates which were valid when originally calculated may alter significantly whennew information or techniques become available. As further information becomesavailable through additional fieldwork and analysis, the estimates are likely tochange. This may result in alterations to development and mining plans whichmay, in turn, adversely affect the Company’s operations.

Investment Speculative The above list of risk factors ought not to be taken as exhaustive of the risks faced

by the Company or by investors in the Company. Potential investors shouldconsider that the investment in the Company is speculative and should consulttheir professional advisers.

Regulatory risk Political, taxation, economic, legislative or regulatory change in Australia or Botswana

(including the proposed mining tax and the proposed tax and trading system for carbonemissions) or in other countries where the Company invests may have an adverse effecton the Company’s investments and operations.

Industry risk The industry in which the Company invests carries with it individual risks associated with

that industry. It is not possible to detail all of the risk factors that the Company may beexposed to in respect of that industry, but may include factors related to coal commodityprices, currency exchange rates, native title claims and the availability of necessaryresources to undertake work programs.

Timing The timing of the completion of drilling and testing programs, any bankable feasibility

studies or the commencement (or rate) of copper shipping is dependent on many factorsand unknown. Accordingly the Directors can give no assurance as to the ultimate timingof such events.

Environmental Risks The operations and proposed activities of the Company are subject to laws and

regulation concerning the environment. As with most exploration Tenements and miningoperations, the Company’s activities are expected to have an impact on theenvironment, particularly if advanced exploration or mine development proceeds. It isthe Company’s intention to conduct its activities to the highest standard of environmentalobligation, including compliance with all environmental laws.

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Risks

Economic risks and external market factors General economic conditions, movements in interest and inflation rates and

currency exchange rates may have an adverse effect on the Company’sactivities, as well as on its ability to fund those activities.

No liquid market for securities Shareholders will not immediately have a ready market to sell Shares in the

Company. Accordingly, it may be difficult for Shareholders to realise the valueof their investment.

Future capital needs The raising of additional funds by the Company to further invest in the

exploration and development of any assets may not be possible, or not onsufficiently attractive terms. This may be due to reasons such as generalmarket conditions and investor sentiment and confidence. No assurance canbe given that future funding will be available to the Company on favourableterms, or at all.

Achievement of objectives

The Company’s initial investments may not be successful in delivering the outcomes andreturns contemplated in the Company’s business plan. In addition, other investments which theCompany may make in the copper exploration area may not generate the financial returnsanticipated at the time the investment and/or acquisition is undertaken. The Directors areunable to provide investors with information as to the ultimate size and scale of the Company’spotential resource base and accordingly, investors must make their decision to invest on thebasis of the skills of the Directors.

Dependence on Directors and management

The Company is dependent on its Directors and management to drive the drilling, testing,marketing and selling programs and manage the path to fully commercialising the resourcebase. The loss of services of such Directors and management could have an adverse effect onthe proposed operations of the Company.

Title Risk

The Tenements are governed by legislation relating to grant, renewal and forfeiture. There isno guarantee that current or future applications, conversions or renewals of tenure will beapproved. The Tenements will be subject to a number of specific legislative conditionsincluding payment of rent and meeting minimum annual expenditure commitments. The inabilityto meet these conditions in relation to the Tenements could affect the standing of Tenements orrestrict its ability to be renewed, adversely affecting the operations, financial position andperformance of the Company.

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