PENINSULA MINES LTD QUARTERLY REPORT TO 31 DECEMBER 2017

Transcription

1 ASX:PSM 31 January 2018 PENINSULA MINES LTD QUARTERLY REPORT TO 31 DECEMBER 2017 Highlights Ubeong Zinc Project drilling intersects massive and disseminated Zinc sulphides D5 High-grade Zinc-Lead-Copper rock chip results for Ilweol Project near Ubeong D9 Super-jumbo and high-grade flake graphite at Chugwang and Eunha Projects in South Korea, with bulk sampling for metallurgy in progress and electromagnetics (EM) planned D1 Binding Agreement signed to supply graphite from Madagascar to Korean end-users D1 Highly anomalous lithium soil sample results at Tonggo Project, eastern South Korea D2 Peninsula completes AUD 2 million placement after over-subscribed capital raising D3,D4 Summary Peninsula Mines Limited ( Peninsula or the Company ) is advancing a series of mineral resource projects in South Korea (see Figure 1), targeting two groups of commodities that have positive price outlooks and strong offtake demand in Korea: i) Base and precious metals targets at its Ubeong Zinc Project and Osu Gold Project, and, ii) Graphite and lithium targets at several projects including the recently identified Chugwang and Eunha large-flake graphite projects, and the Tonggo lithium prospect. The Company s objective is to drill key targets and define resources for economic evaluation and development in the short to medium term. During the December 2017 quarter ( the Quarter ) Peninsula intersected massive and disseminated sulphides in diamond drilling on its Ubeong Zinc-Lead-Silver (and Copper-Gold) Project, following up on outstanding detailed surface geochemistry and geophysical (IP, EM and magnetics) results D5. The completion of the Company s AUD 2 million, oversubscribed, capital raising will enable Peninsula to continue drilling its currently defined targets at Ubeong and Osu, as well as carry out further geochemical and geophysical programmes to guide further drilling to define mineralisation D4. In addition, the signing of the large-flake graphite supply agreement with DNI Metals will assist the Company to finalise offtake agreements with Korean end-users, including expandable graphite producer Graphene Korea Co. Ltd D1 and other Korean manufacturers involved in lithium-ion battery anode manufacture and other downstream high-technology graphite applications.

2 Page 2 of 13 Figure 1: Peninsula Mines Project Locations Exploration projects advanced during the Quarter Ubeong Zinc - Polymetallic Project (100% owned, six granted tenements, multiple applications) The Ubeong Zinc-Polymetallic Project includes six granted tenements and multiple applications covering a 10km strike length of a mineralised limestone-skarn unit, that adjoins the operating Keumho zinc-lead-silver mine. During the Quarter, two diamond drill holes were drilled at the Chilbo Prospect to test targets defined by mapping, geophysics and geochemical sampling. Diamond drillhole UBD0002 commenced on 25 September 2017, designed to test the Taipan zinc-lead-silver and Cobra copper-gold targets. The hole was drilled to 394.8m, having intersected two significant disseminated sulphide zones consisting of arsenopyrite with sphalerite, galena and/or chalcopyrite. Hand-held XRF analyses generated encouraging spot results for silver (Ag), zinc (Zn), lead (Pb) and copper (Cu). The mineralised sections of drill core have been sent for analyses at ALS Laboratories in Perth and results are pending D6,D7. Diamond drill hole UBD0003 was drilled to test the down dip extension of massive sulphides outcropping intermittently over a 300m strike length, coincident with electromagnetic (EM) and Induced Polarisation (IP) chargeability anomalies. Two zones of massive, blebby and disseminated sulphides were intersected: 10.65m of mineralised skarn from 101.4m, showing disseminated arsenopyrite (As), pyrrhotite, galena (Pb) and minor chalcopyrite (Cu). 2.22m of massive and disseminated arsenopyrite and sphalerite from m. Selected samples have been submitted for analyses at ALS Perth with results pending. This drill hole was suspended at 279m due to snow fall and very cold temperatures, still in mineralised skarn-limestone material, and is due to be completed (at circa 300m) at the start of the new field season in late February / early March 2018 D7. Further drilling is planned in 2018 to test soil anomalies and associated magnetic anomalies, including under massive copper-bearing sulphides at the Viper Target (see Figure 2, below).

3 Page 3 of 13 Viper Taipan H69 H70 H59 H60 Figure 2: Ubeong Project, Chilbo area, drilling, rockchip & soil sample results on ground magnetics TMI image 27.9% Zn, 958 g/t Ag 2.22m from m massive & blebby aspy & sphalerite 10.65m from 101.4m of mineralised skarn blebs/patches aspy, galena, cpy Figure 3: Cross Section 513,600mE with diagrammatic interpretation and sulphide zones intersected by UBD0003 D5 The Ilweol prospect, located 4km south of Chilbo, has granted tenure over historical mine sites where channel sampling in adits during the Quarter generated high-grade zinc, lead and copper results, including 0.7m@ 6.26% Zn, 5.11% Pb and 0.36% Cu. A systematic programme of rock chip and soil sampling as well as geophysics (Magnetics and EM/IP) is planned to define drill targets at Ilweol D9.

4 Page 4 of 13 Graphite Projects Business Development Post Quarter-end, Peninsula secured a Binding Supply Agreement with Canadian Stock Exchange ( CSE ) listed DNI Metals Inc ( DNI ). Subject to various conditions, DNI will supply up to 24,000 tonnes per year of flake graphite to Peninsula s 100% owned subsidiary, Korea Graphite Company Limited ( KGCL ) D1, for onsale to Korean end-users. This agreement will enable Peninsula, via KGCL, to advance and finalise offtake agreements to supply Korean end-users with high-purity flake graphite (>95% graphite) for use in high-technology applications such as expandable graphite, non-flammable, building products manufacture, lithium-ion battery anode production and potentially refractories. Peninsula, through KGCL, is actively negotiating offtake agreements with Korean graphite consumers, including furthering the MOU with Graphene Korea, a manufacturer of innovative expandable graphite products, such as fire-retardant building cladding D1,D15. Peninsula and DNI are discussing options to assist fast-tracking the development of one of DNI s large-flake graphite projects in Madagascar, which is situated close to port access and saprolite hosted - with low cost mining and processing potential D1. Chugwang Graphite Project, South Korea (100% owned, two tenement applications) The Chugwang (formerly Daeheung) Project includes two tenement applications located south of Seoul in Chungnam Province, where KORES previously reported surface exposures of graphitic units over a 1km strike length and sample analyses ranging from 13% to 50% CG. The Company s rock-chip samples, collected in the vicinity of previous mining, produced very-high grade results of CH0001: 16.2% Cg, CH0002: 24.4% Cg and CH0003: 19.2% Cg (averaging 20% Cg) D10. Polished thin section petrography conducted by Townend Mineralogy Laboratory in Perth identified coarse single flakes and sometimes bunches with long dimensions frequently exceeding 750 micron (super-jumbo = >500 micron) and widths >100 micron, as shown in Figure 4, below. The material is likely to be suitable for production of high-purity, large-flake graphite concentrate required by the fast-growing market in South Korea for non-flammable, expandable graphite building products D10. A bulk sample, totalling ~140 kg, has now been collected from the site of historic mining at Chugwang and submitted for metallurgical testing at IMO in Perth, in order to generate a concentrate sample of >95% graphitic carbon (Cg). It is intended that the large-flake (>180µ) portion of the concentrate will be subjected to expandable graphite testing and the fine flake (<180µ) fraction for sphericalised graphite testing. Figure 4: Photomicrograph 1: Super-Jumbo graphite flakes (>500µm) from Chugwang Graphite Project

5 Page 5 of 13 Eunha Graphite Project (100% owned, two tenement applications) The Eunha Project consists of two tenement applications over an historically reported graphite deposit, also located south of Seoul in Chungnam Province. Sampling and reconnaissance indicates a 10m thick graphitic unit with evidence of coarse flake and sampled grades of up to 19% Cg, intermittently outcropping over 1km next to Motorway 15. Initial geochemical analysis of a rock chip sample generated 19.3% Cg. Initial petrography includes a population of >500 micron flake graphite D10. A total of 64 channel samples have been sent to Nagrom for geochemical analyses, which will be followed by metallurgical testing at IMO in Perth, aimed at producing a >95% Cg concentrate sample for expandable graphite and sphericalised graphite testing. EM surveys have been planned for Eunha (and Chugwang) to map the graphitic units at depth. This work is planned to commence in the current quarter. Mapping and further sampling is also planned to enable the grant of tenements at Eunha (and Chugwang). Other Graphite Projects in South Korea: - Yongwon Graphite Project (100% owned, one granted tenement and four applications) Drilling has been planned to test the previously defined, 400m strike length, graphitic unit at Yongwon. The Company has now obtained support from the Korean Ministry of Trade Industry and Energy (MOTIE) to assist discussions with the local Chungju City officials to resolve access issues D15. - Daewon Graphite Project, South Korea (100% owned, one granted tenement and three applications) An initial EM survey is planned as part of the programme to test multiple graphite projects in Korea during February/ March 2018 D15. - Gapyeong Graphite Project, South Korea (100% owned, one tenement application) A new tenement application over a 1km strike length flake-graphite unit next to the North Han River reserve, 50km east of Seoul. A Mineral Deposit Survey (MDS) report has been completed in order to enable Ministry inspections and grant of the tenement. Rock chip sampling results from four samples averaged 18.7% Cg D15. - Wolmyeong Graphite Project, South Korea (100% owned, 5 tenements granted) No further work at Wolmyeong. Mapping and additional petrography planned, with the objective of locating areas of coarser flake graphite. Lithium Projects (100% owned, six tenement applications) A total of 568 ridge and spur soil samples were collected across the mapped pegmatite corridor at the Tonggo prospect on the Dongsugok tenement applications, that previously produced highly anomalous lithium (Li) stream sediment sampling results. All samples were initially tested with hand-held XRF for pathfinder elements such as rubidium ( Rb ), (Li is not detectable with hand held XRF), then 214 samples were selected for a full suite of elemental analyses, including lithium, at Nagrom laboratories in Perth D2. Highly anomalous results of >200ppm lithium defined a northeast trending corridor, of dimensions 1.2km x 200m, associated with regionally mapped pegmatites. A cluster of >300ppm Li results centred at approximately 516,200mE, between 4,084,200mN and 4,084,000mN, stands out as the most anomalous zone requiring further field investigation with the objective of locating lithium bearing pegmatite D2. Osu Gold Project (100% owned, one granted tenement and three applications) In late July 2017, the Company received approval from the Korean Forest Service to access two, separate, drilling sites to enable the Company to test the continuation of mineralisation below the Pal Gong West and Pal Gong East Lodes on the Osu Gold Project D12. However, the forested sites require a low-impact, man-

6 Page 6 of 13 portable drilling rig yet to be sourced in-country. An extension to the drilling access will be applied for once a suitable rig is available D12. Daehwa Molybdenum-Tungsten Project (100% divested, granted mining tenements) The Daehwa Project tenements have been transferred to the Korean purchaser of the project following a further payment of KRW 100 million / ~AUD 118,000 to Peninsula subsidiary Suyeon Mining Co. Ltd. The remaining and final instalment of KRW 400 million / ~AUD 470,000 is due on 20 February Camel Hills Joint Venture (CHJV), WA (Aurora Minerals Ltd 51.29% / Peninsula 48.71%) No field exploration was undertaken at Camel Hills during the Quarter. Corporate During the Quarter, the Company completed a capital raising from new and existing shareholders that was oversubscribed and raised AUD 1.9 million pre-costs. In addition, a further AUD 100,000 (total placement AUD 2 million) was received from major shareholder, Aurora Minerals Ltd (ASX:ARM), following shareholder approval on 24 January The Company is now fully funded to carry out its planned 2018 programme of diamond drilling and geophysical and geochemical sampling to define additional drill targets. The funding will also enable metallurgical testing and advancement of strategic agreements to supply flake-graphite to Korean end-users D3,D4. Peninsula s expenditure for the Quarter was approximately AUD 0.71 million, over 72 percent (AUD 0.52 million) of which was direct exploration expenditure. The company retained approximately AUD 1.9 million in cash with no debt at the end of the Quarter. For further information, please contact: Jon Dugdale Managing Director Phone: jdugdale@peninsulamines.com.au Summary list of all previous Peninsula ASX releases referenced in this announcement: D1 Binding Agreement to Supply Graphite for Korean End-Users, 15 January 2018 D2 Highly Anomalous Lithium Soil Results at Tonggo, 22 December 2017 D3 Peninsula Completes $1.9 Million Placement of its $2 Million Capital Raising, 19 December 2017 D4 Peninsula Raises $2.0 Million in Oversubscribed Capital raising, 11 December 2017 D5 Ubeong Drilling Intersects Massive and Disseminated Sulphides, 19 December 2017 D6 Ubeong Massive Sulphide Cu-Au Zone and further drilling, 6 September 2017 D7 Drilling Intersects Two Significant Sulphide Zones at Ubeong Project, 24 November 2017 D8 Drilling to test Key Cu-Au, Zn-Pb-Ag Targets at Ubeong, 26 September 2017 D9 Ilweol Trend High-Grade Zn-Pb-Cu Results, 28 November 2017 D10 Super Jumbo and High-Grade Flake Graphite at New Projects, 20 October 2017 D11 Peninsula Signs MOU to Develop and Supply Large-Flake Graphite to Korean End-Users, 15 August 2017 D12 Osu Gold-Silver Project Drilling Access, 26 July 2017 D13 Daehwa Mo-W Project Sale, 29 August 2017 D14 MOU Signed with Graphite End-User in Korea, 14 June 2017 D15 Quarterly Report to 30 September 2017 Other than the information included in this report, there has been no material change to the information contained in the above releases. Full versions of all the company's releases are available for download from the company's website

7 Page 7 of 13 About Peninsula Mines Peninsula Mines is an Australian listed (ASX:PSM) exploration/development company focused on developing the outstanding opportunities for mineral discovery in South Korea. Peninsula s strategy is to focus on mineral commodities that have a positive price outlook and offer potential for off-take/strategic partnerships in Korea. The Company is drilling a highly prospective zinc-lead-silver and copper-gold project at Ubeong and advancing a lithium prospect at Tonggo in eastern South Korea. The Company also has a dual focus on advancing a series of flake-graphite projects that offer potential to be advanced and developed to supply high technology lithium-ion battery and/or expandable graphite applications for which South Korea is the major global end-user. Forward looking Statements This report contains certain forward-looking statements. These forward-looking statements are not historical facts but rather are based on Peninsula Mines Ltd s current expectations, estimates and projections about the industry in which Peninsula Mines Ltd operates, and beliefs and assumptions regarding Peninsula Mines Ltd s future performance. Words such as anticipates, expects, intends, plans, believes, seeks, estimates potential and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Peninsula Mines Ltd, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forwardlooking statements. Peninsula Mines Ltd cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of Peninsula Mines Ltd only as of the date of this report. The forward-looking statements made in this report relate only to events as of the date on which the statements are made. Peninsula Mines Ltd does not undertake any obligation to report publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this report except as required by law or by any appropriate regulatory authority. Competent Persons Statements The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Daniel Noonan, a Member of the Australian Institute of Mining and Metallurgy. Mr Noonan is an Executive Director of the Company. Mr Noonan has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity 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 Noonan consents to the inclusion in the report of the matters based on this information in the form and context in which it appears. The information in this release that relates to metallurgical test work is based on information compiled and / or reviewed by Mr Peter Adamini who is a Member of The Australasian Institute of Mining and Metallurgy. Mr Adamini is a full-time employee of IMO Project Services. Mr Adamini consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this release that relates to Geophysical Results and Interpretations is based on information compiled by Mr William Peters, a Consulting Geophysicist (Crosmin Pty Ltd) at Southern Geoscience Consultants. Mr Peters is a Fellow of the Australasian Institute of Mining and Metallurgy and Chartered Professional (Geology) and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity 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 Peters consents to the inclusion in the release of the matters based on this information in the form and context in which it appears.

8 Page 8 of 13 MINERAL TENEMENT INFORMATION (as at 23 January 2018) WESTERN AUSTRALIA Project Tenement PSM Holding See Note 1 Joint Venture with Aurora Minerals Title Holder or Applicant Tenements held in the names of Peninsula Mines Ltd (48.7%) and Aurora Resources Pty Ltd (51.3%) Beancounter E09/ % Refer above Granted Sub Licenced from Aurora Minerals Glenburgh E52/1983 Note 1 Aurora Resources Pty Ltd Granted Note 1: The licences referred to above are subject of a Deed of Sub Licence with Aurora Minerals Limited, for Peninsula Mines Ltd to acquire the rights to calcrete uranium on the tenements SOUTH KOREA Deposit Mine Land Ledger No. Mining Right No. PSM Holding % *Grant/Application Title Expiry Date Granted Tenements Donsan Mokgye % 23-Jan Aug-28 # Licence Transferred to Mr Lee Manjo on 5 Dec 2017 Daehwa Mokgye % 23-Jan Aug-28 # Licence Transferred to Mr Lee Manjo on 5 Dec 2017 Daehwa Mokgye % 23-Jan Jun-27 # Licence Transferred to Mr Lee Manjo on 5 Dec 2017 Daewon Yangdeokwon % 14-Sep Sep-21 The Company s wholly owned subsidiary SMCL was notified of the grant an Exploration Right over this block for graphite on 24 July The Company was formally granted the title on 13 Sep 2017 and has 1 year from this date to file a Prospecting Plan with the Local Government Office for the grant of an up to 6 year period for exploration over the title block. Ilweol Dogyedong % 27-Sep Sep Notes Notes The Company s wholly owned subsidiary SMCL was notified of the Ministry s intention to grant an Exploration Right over this block for Zn, Pb & Ag exploration on the 27 September The Company has until 23 November 2018 to file a Prospecting Plan with the Local Government. The submission of the Prospecting Plan will then give the Company an up to 6 year period for exploration over the title block.

9 Page 9 of 13 Deposit Mine Land Ledger Mining PSM *Grant/Application Title Expiry Notes No. Right No. Holding % Date Pal Gong & Baegun Osu % 17-Dec Dec-18 Granted 17 December Exploring Plan lodged with the Ministry of Trade Industry and Economics 15 December Initial 3-year period to complete 50% of proposed work, then Company can apply for 3-year extension or file report outlining the exploration results. Ubeong Hyeondong % 26-April April-21 The Company s wholly owned subsidiary SMCL was notified of the Ministry s intention to grant an Exploration Right over this block for Zn, Pb & Ag exploration on the 13 March The Company was formally granted the title on 26 April The Company has 1 year from this date to file a Prospecting Plan with the Local Government Office for the grant of an up to 6 year period for exploration over the title block. Ubeong Hyeondong % 26-April April-21 The Company s wholly owned subsidiary SMCL was notified of the Ministry s intention to grant an Exploration Right over this block for Zn, Pb & Ag exploration on the 13 March The Company was formally granted the title on 26 April The Company has 1 year from this date to file a Prospecting Plan with the Local Government Office for the grant of an up to 6 year period for exploration over the title block. Ubeong Hyeondong % 26-April April-21 The Company s wholly owned subsidiary SMCL was notified of the Ministry s intention to grant an Exploration Right over this block for Zn, Pb & Ag exploration on the 13 March The Company was formally granted the title on 26 April The Company has 1 year from this date to file a Prospecting Plan with the Local Government Office for the grant of an up to 6 year period for exploration over the title block. Ubeong Hyeondong 70 Pending 100% 25-August August- 21 The Company s wholly owned subsidiary SMCL was notified of the Ministry s intention to grant an Exploration Right over this block for Zn, Pb & Ag exploration on the 25 August The Company has 1 year from this date to file a Prospecting Plan with the Local Government Office for the grant of an up to 6 year period for exploration over the title block. Ubeong Hyeondong 70-1 Pending 100% 25-August Dec-21 The Company s wholly owned subsidiary SMCL was notified of the Ministry s intention to grant an Exploration Right over this block for

10 Page 10 of 13 Deposit Mine Land Ledger No. Mining Right No. PSM Holding % *Grant/Application Date Title Expiry Ubeong Hyeondong 78 Pending 100% 25-August August- 21 Notes Limestone exploration on the 29 December The Company has 1 year from this date to file a Prospecting Plan with the Local Government Office for the grant of an up to 6 year period for exploration over the title block. The Company s wholly owned subsidiary SMCL was notified of the Ministry s intention to grant an Exploration Right over this block for Zn, Pb & Ag exploration on the 25 August The Company has 1 year from this date to file a Prospecting Plan with the Local Government Office for the grant of an up to 6 year period for exploration over the title block. Wolmyeong Cheongsan % 20-Dec Dec-20 The Company s wholly owned subsidiary SMCL was granted an Exploration Right over this sub-block for graphite exploration on the 19 December The Company filed Prospecting Plan with the Local Government Office for the grant of a 6 year period for exploration over the title block on 12 Dec Wolmyeong Cheongsan % 20-Dec Dec-20 The Company s wholly owned subsidiary SMCL was granted an Exploration Right over this sub-block for graphite exploration on the 19 December The Company filed Prospecting Plan with the Local Government Office for the grant of a 6 year period for exploration over the title block on 12 Dec Wolmyeong Cheongsan % 20-Dec Dec-20 The Company s wholly owned subsidiary SMCL was granted an Exploration Right over this sub-block for graphite exploration on the 19 December The Company filed Prospecting Plan with the Local Government Office for the grant of a 6 year period for exploration over the title block on 12 Dec Wolmyeong Cheongsan % 20-Dec Dec-20 The Company s wholly owned subsidiary SMCL was granted an Exploration Right over this sub-block for graphite exploration on the 19 December The Company filed Prospecting Plan with the Local Government Office for the grant of a 6 year period for exploration over the title block on 12 Dec Wolmyeong Cheongsan % 20-Dec Dec-20 The Company s wholly owned subsidiary SMCL was granted an Exploration Right over this sub-block for graphite exploration on the 19 December The Company filed Prospecting Plan with the

11 Page 11 of 13 Deposit Mine Land Ledger No. Mining Right No. PSM Holding % *Grant/Application Date Title Expiry Local Government Office for the grant of a 6 year period for exploration over the title block on 12 Dec Yongwon Eumseong % 20-Dec Sep-20 The Company s wholly owned subsidiary SMCL was granted an Exploration Right over this sub-block for graphite exploration on 20 December The Company filed a Prospecting Plan with the Local Government Office on 27 September 2017 for the grant of up to 6 year period for exploration over the title block. Tenement Applications Chugwang Daeheung % 23-Oct Apr-18 SMCL must lodge Mineral Deposit Survey (MDS) prior to expiry date to extend the tenement life up to additional 7 years Chugwang Daeheung % 23-Oct Apr-18 SMCL must lodge Mineral Deposit Survey (MDS) prior to expiry date to extend the tenement life up to additional 7 years Daewon Yangdeokwon % 1-Nov Apr-18 SMCL must lodge Mineral Deposit Survey (MDS) prior to expiry date to extend the tenement life up to additional 7 years Daewon Yangdeokwon % 1-Nov Apr-18 SMCL must lodge Mineral Deposit Survey (MDS) prior to expiry date to extend the tenement life up to additional 7 years Dongsugok Hyeondong % 1-Nov Apr-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Dongsugok Hyeondong % 1-Nov Apr-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Eepo Eepo % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Eunha Hongseong % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Eunha Hongseong % 1-Nov Apr-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Eunha Hongseong % 1-Nov Apr-18 A MDS report was submitted to the Ministry on 15 November 2017 and the Company is awaiting feedback from the MRO regarding the status of the application. Eunha Hongseong % 1-Nov Apr-18 A MDS report was submitted to the Ministry on 15 November 2017 and the Company is awaiting feedback from the MRO regarding the status of the application. Gapyeong Gapyeong % 22-Sep Mar-18 A MDS report was submitted to the Ministry on 15 November 2017 and the Company is awaiting feedback from the MRO regarding the status of the application. Goeseon North Seobyeok % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Goeseon North Seobyeok % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Goeseon South Seobyeok % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Goeseon South Seobyeok % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Notes

12 Page 12 of 13 Deposit Mine Land Ledger Mining PSM *Grant/Application Title Expiry Notes No. Right No. Holding % Date Goseong Ganseong % 1-Nov Apr-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Goseong Ganseong % 1-Nov Apr-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Ilweol Dogyedong % 6-Dec-17 5-Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Ilweol Dogyedong % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Ilweol Dogyedong % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Ilweol Dogyedong % 29-Dec Jun-18 An MDS application was filed on 27 December 2017 and the results of the submission are pending with the MRO. Janggi Jang giri % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Pal Gong Osu % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Pal Gong Osu % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Pal Gong Osu % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Tonggo Hyeondong % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Tonggo Hyeondong % 1-Nov Apr-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Tonggo Hyeondong % 1-Nov Apr-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Tonggo Hyeondong % 1-Nov Apr-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Ubeong Hyeondong % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Ubeong Hyeondong % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Ubeong Hyeondong % 23-Nov May-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Ubeong Hyeondong % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Ubeong Hyeondong % 2-Aug-17 1-Feb-18 SMCL lodged a Mineral Deposit Survey (MDS) report on 2 August 2017 the Ministry field inspection is expected to take place by quarter end. Ubeong Hyeondong % 6-Dec-17 5-Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Ubeong Hyeondong % 6-Dec-17 5-Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Ubeong Hyeondong % 6-Dec-17 5-Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Ubeong Hyeondong % 6-Dec-17 5-Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Ubeong Hyeondong % 6-Dec-17 5-Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Ubeong Hyeondong % 6-Dec-17 5-Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Ubeong Hyeondong % 6-Dec-17 5-Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Ubeong Dogyedong % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Ubeong Dogyedong % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Ubeong Dogyedong % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Ubeong Dogyedong % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend

13 Page 13 of 13 Deposit Mine Land Ledger Mining PSM *Grant/Application Title Expiry Notes No. Right No. Holding % Date Ubeong Dogyedong % 23-Nov May-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Ubeong Dogyedong % 23-Nov May-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Ubeong Dogyedong % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Ubeong Dogyedong % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Ubeong Dogyedong % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Wolmyeong Cheongsan % 1-Nov Apr-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Wolmyeong Cheongsan % 1-Nov Apr-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Wolmyeong Cheongsan % 1-Nov Apr-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Wolmyeong Cheongsan % 1-Nov Apr-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Wolmyeong Cheongsan % 1-Nov Apr-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Yongduri Yongduri % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Yongwon Eumseong % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Yongwon Eumseong % 29-Dec Jun-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Yongwon Eumseong % 1-Nov Apr-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend Yongwon Eumseong % 1-Nov Apr-18 Lodge Mineral Deposit Survey (MDS) prior to the expiry to extend *For all tenement applications, SMCL must lodge a Mineral Deposit Survey (MDS) prior to the expiry date to facilitate the grant of an exploration permit for up to 7 years. # The titles are subject to sale agreement. The purchaser must commence mining activity and generate more than 2 tonnes of molybdenum sulphide concentrate grading 90% MoS2 by 18 May 2018 or the Daehwa Project licences will be revoked. If this production is reported to the Ministry by that date the licence will remain valid until the expiry date provided similar annual concentrate production is achieved in each of the intervening years. At the title expiry date, the tenement life can be extended by a further 20 years provided these specified production commitments are met each year.

14 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report Appendix 5B +Rule 5.5 Mining exploration entity and oil and gas exploration entity quarterly report Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/13, 01/09/16 Name of entity PENINSULA MINES LTD ABN Quarter ended ( current quarter ) DECEMBER 2017 Consolidated statement of cash flows 1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) exploration & evaluation (b) development (c) production (d) staff costs* Current quarter $A 000 Year to date 6 months) $A 000 (516) (1,029) (e) administration and corporate costs (197) (407) 1.3 Dividends received (see note 3) 1.4 Interest received Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Research and development refunds 1.8 Other (provide details if material) 1.9 Net cash from / (used in) operating activities (712) (1,432) * The company s accounting policy allocates staff costs to activities and are accordingly included in items 1.2 (a) and 1.2 (e). 2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) tenements (see item 10) (c) investments See chapter 19 for defined terms 1 September 2016 Page 1

15 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report Consolidated statement of cash flows (d) other non-current assets 2.2 Proceeds from the disposal of: (a) property, plant and equipment (b) tenements (see item 10) (c) investments (d) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) Current quarter $A 000 Year to date 6 months) $A Other (provide details if material)* Net cash from / (used in) investing activities *Includes 100,000,000 Korean Won paid as part deposit on sale of Daehwa Project per agreement announced 29 August Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from issue of convertible notes 1,900 1, Proceeds from exercise of share options Transaction costs related to issues of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities (136) (138) 1,795 2, Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of period 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of period 683 1,039 (712) (1,432) ,795 2, ,875 1,875 + See chapter 19 for defined terms 1 September 2016 Page 2

16 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report 5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts Current quarter $A 000 Previous quarter $A Bank balances Call deposits 1, Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above) 1, Payments to directors of the entity and their associates Current quarter $A' Aggregate amount of payments to these parties included in item Aggregate amount of cash flow from loans to these parties included in item Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2 Fees to directors - 7. Payments to related entities of the entity and their associates Current quarter $A' Aggregate amount of payments to these parties included in item Aggregate amount of cash flow from loans to these parties included in item Include below any explanation necessary to understand the transactions included in items 7.1 and See chapter 19 for defined terms 1 September 2016 Page 3

17 Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report 8. Financing facilities available Add notes as necessary for an understanding of the position 8.1 Loan facilities 8.2 Credit standby arrangements 8.3 Other (please specify) Total facility amount at quarter end $A 000 Amount drawn at quarter end $A Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well. 9. Estimated cash outflows for next quarter $A Exploration and evaluation Development 9.3 Production 9.4 Staff costs 9.5 Administration and corporate costs Other (provide details if material) 9.7 Total estimated cash outflows Changes in tenements (items 2.1(b) and 2.2(b) above) Tenement reference and location Nature of interest Interest at beginnin g of quarter Interest end of quarter 10.1 Interests in mining tenements and petroleum tenements lapsed, relinquished or reduced Daehwa Project Mining Rights 76166, and Titles transferred to purchaser on 5 Dec % 0% (but subsidiary SMCL holds a mortgage over the titles pending final payment expected in Feb 2018) 10.2 Interests in mining tenements and petroleum tenements acquired or increased Hyeondong 70-1 (Ubeong) 100% via South Korean subsidiary Suyeon Mining Company Ltd (SMCL) Application 100% + See chapter 19 for defined terms 1 September 2016 Page 4

18 Compliance statement Appendix 5B Mining exploration entity and oil and gas exploration entity quarterly report 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. 2 This statement gives a true and fair view of the matters disclosed. Sign here: Date: 31 January 2018 (Company secretary) Print name: Eric Moore Notes 1. The quarterly report provides a basis for informing the market how the entity s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report. 2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standards apply to this report. 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity. + See chapter 19 for defined terms 1 September 2016 Page 5