Exploration Targets

To achieve the 500,000oz Ore Reserve target, aggressive exploration programs will proceed with two parallel priorities. These are firstly testing for high grade extensions of defined deposits (such as Westralia, Transvaal, Craic and Ramornie) and secondly testing regional targets (including the Wallaby –style Jupiter and Cameron Well prospects as well as the broader regional areas). The key prospects and exploration targets are outlined below.

Westralia

The main target is the south plunging Millionaires Shoot at the southern end of the Westralia pit where historic and recent Dacian drilling has intersected high grade gold mineralisation within a zone 1000m in length and around 600m in vertical extent. Drilling by Dacian returned high grade intersections including:

13MMRD003 – 17.08m @ 7.5g/t from 218.7m  and 5m at 6.8g/t from 202m

13MMRD008 – 1.17m at 19.9g/t from 545.22m

13MMRD010 – 2.45m at 7.6g/t from 204.55m

13MMRD011 – 7.39m at 10.2g/t from 212.96m

13MMRD013 – 4.41m at 7.6g/t from 344m

13MMRD017 – 3.85m at 3.0g/t from 351.7m

13MMRD019 – 10.99m at 3.1g/t from 328.37m

13MMRD020 – 4.6m @ 4.2g/t Au from 519m

13MMRD021 – 4.0m @ 21.9g/t Au from 490m

13MMRD022 – 5.0m @ 1.8g/t Au from 468.8m

This drilling was incorporated in a resource update for the Westralia deposit and the current Mineral Resource now stands at 3.2Mt at 5.9g/t Au for 610,000oz.

Transvaal

The steep dipping, multi-lode system hosting the Transvaal deposit was not closed off by historic drilling. Dacian drilling into the potential northern extension to the deposit has returned intersections including 5m @ 5.0g/t, 22m @ 1.5g/t and 6.5m @ 2.2g/t.

A program of deep diamond drilling was completed by Dacian during 2013 to test for depth extensions to the main lode system. These were targeted at least 100m below the previous drilling and confirmed that gold mineralised structures were present beneath the Mineral Resource. Further assessment of the data is required to identify any potential for shoot development at depth.

The current resource at the Transvaal deposit is 327,000oz including a defined Ore Reserve of 130,000oz at a grade of 5.9g/t.

Ramornie

Gold mineralisation in the Ramornie area occurs within a zone of biotite-pyrite alteration associated with shearing in a basalt host rock. Dacian has completed an initial program of RC drilling over a 500m strike extent testing for depth-extensions of the high grade shoots defined in the shallow Ramornie and Ramornie North open pits (less than 50m deep, see Figure 3). Better intersections from the recent drilling include 4m @ 10.4g/t, 3m @ 6.2g/t, 3m @ 4.5g/t and 8m @ 1.5g/t (eoh). The mineralisation displays excellent continuity and remains open along strike and down plunge of the two highest grade intersections. Drilling will continue targeting the high grade mineralisation at depth.

Modelling of the historic and recent drilling data has allowed a Mineral Resource of 34,000oz at a grade of 3.3g/t to be estimated by Dacian.

Craic

The Craic deposit is a high grade quartz lode within basalt rocks. It has been mined by open pit to a depth of approximately 60m. Underground development was then carried out to a depth of approximately 150m below surface but the mining operation closed before any substantial stoping could be carried out. As a consequence, the developed underground mine could be rapidly brought back into production.

This development work and underground diamond drilling by the previous operator has confirmed the continuity of the high grade lode. It has also demonstrated that the lode remains open and untested along strike to the north and down plunge of the current Mineral Resource. Dacian intends to carry out extensional drilling to define further extensions to the defined mineralisation.

Jupiter

The Jupiter deposit is related to a series of hematite altered syentite intrusive bodies within a deformed package of basalts and dolerites. The gold mineralisation is associated with disseminated pyrite-ankerite and quartz micro veining hosted mostly by the syenite with the strongest grades associated with brittle fracture systems related to the Jupiter Fault Zone which cuts the syenite intrusive.

The syenites have a strong magnetic signature and the application of this “Jupiter exploration model” resulted in the discovery of the +7Moz Wallaby deposit in the late 1990s. Since discovery of the world-class Wallaby deposit, little exploration work has been carried out at Jupiter and the potential for a Wallaby scale system had not been tested.

During 2013, Dacian commenced a broad spaced program to test the Jupiter Corridor to outline the structural framework of the area and to test the potential for Wallaby-style mineralisation. Initial work has been very encouraging, with high grade gold mineralisation defined from diamond drilling. Results from the Dacian drilling include:

13JURD006 – 6.1m @ 4.8g/t Au from 166.9m within16.8m @ 2.1g/t

13JUDD007 – 6.9m @ 8.3g/t Au from 154.1m within 26m @ 3.0g/t

13JUDD018 – 17.2m @ 4.8g/t Au from 160m

Follow-up of the these intersections and continued broad scale assessment of the Jupiter corridor will be carried out during 2014.

Regional

The majority of historic exploration at Mt Morgans was carried out in the 1980s and 1990s. Numerous gold occurrences and prospects were identified by this work and many of the prospects remain at early stage assessment and require further evaluation.

Much of the project area is covered with transported sequences including lake clays, paleo-channels and Permian sediments. The transported cover has resulted in areas of the tenements remaining untested, and has caused substantial portions of the early exploration work to be ineffective as it did not penetrate to bedrock.

Work programs are being developed to assess and prioritise the numerous regional targets for systematic evaluation and testing. This work is expected to commence in 2014.