1 MILLION OZ MEASURED, INDICATED AND INFERRED RESOURCE

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1 ASX RELEASE ASX:AWV 26 June 2014 HIGHLIGHTS: 1 MILLION OZ MEASURED, INDICATED AND INFERRED RESOURCE Measured, Indicated and Inferred Resource of 1.03M ounces gold defined: 16.0 million tonnes at 2.0 g/t High grade core of 415,000 ounces gold at 4.2g/t Work in progress to define JORC Reserves Open pit mining planning well advanced Underground mine studies in progress Plan of Operations lodged for first phases of mining Anova Metals Limited (ASX:AWV) ( Anova or the Company ) advises that an updated JORC Mineral Resource estimate for its Big Springs gold deposit has been completed with a contained 1.03 million ounces of gold. Big Springs is a Carlin style gold deposit located in north eastern Nevada, USA (Figure 1). The Measured, Indicated and Inferred Mineral Resource estimate and classification has been completed in accordance with the 2012 JORC Code and comprises a total resource of 16.0 million tonnes at 2.0 g/t gold. Increasing the cut off grade to 2.5 g/t gold results in a high grade core of 3.1 million tonnes at 4.2 g/t gold for 415,000 ounces. Anova s geological model was developed in house and the resource estimate prepared by specialist resource consultants Trepanier Pty Ltd as described within this announcement (Appendix 1). The Mineral Resource estimate is the basis for the underground mining studies and open pit mine planning current being undertaken by Anova and its consultants. Level 1, 8 Colin Street West Perth WA 6005 PO Box 886 West Perth WA 6872 Tel: Fax: info@anovametals.com.au

2 Figure 1: Big Springs project location in Nevada, USA Reclassification of Mineral Resource Bulk Density Prior to release of Anova s 2013 JORC Inferred Resource, consideration was given to classifying sections of the deposit in the Indicated category. However, at the time, the unverified bulk density data ultimately resulted in the entire mineral resource being classified as Inferred. The key issue was uncertainty as to whether bulk density data that existed from the previous project holder had been measured in a way as to account for any potential porosity. During the 2013 field season, Anova completed a program of collecting 1,202 bulk density measurements primarily targeting ore zones at North and South Sammy plus Beadles Creek. Measurements were completed by the hydrostatic weighting (wax coated) method to account for any potential porosity. The measurements included 1,142 from diamond core drilled by previous project holder Gateway Gold Corporation between 2003 and 2006 that is stored in a core store facility at the Big Springs site. In addition, Anova collected 60 bulk density measurements on a diamond core from a hole drilled in late 2013 as water monitoring well within the 601 zone area at South Sammy. Of the 1,202 measurements, 797 were coded as mineralised zones and 405 coded as waste zones. The measurements from waste zones primarily focused on the proposed initial open pit mining area at the 601 area (South Sammy) and are being utilised for ongoing mining studies. The 797 ore zone measurements were statistically analysed in detail by prospect areas, rock type and oxidation zone. The result of this analysis as shown in Table 1 below was then applied to the resource tonnage reporting. ASX RELEASE PAGE 2

3 Table 1: Bulk densities by zone for Big Springs Mineral Resource June 2014 Deposit Zone Oxidation Zone Bulk Density g/cm 3 No. of Measurements North Sammy Shoots Fresh Contact Zone Transition Fresh South Sammy 601 Zone Fresh Zone Fresh Southern Zones Fresh Briens Fault Transition Beadles Creek Fresh Fresh TOTAL 797 For zones where measurements could not be collected due to lack of available core (i.e. from Mac Ridge and Dorsey Creek) the calculated average bulk density (2.68 g/cm 3 ) from zones where there is data was then applied. The new bulk density information was also a primary factor used in the reclassification of the Big Springs resource. However, where new data was not collected, these zones remained classified as Inferred Re interpretation of key ore zones In addition to the collection of bulk density measurements, both the geological and mineralisation models for the 601 and 701 zones at South Sammy have been re interpreted and re estimated. These updates have been incorporated in the resource reporting shown in Table 2 and Figure 2 below and will be used for ongoing mining studies. Example cross sections through the 601 zone (South Sammy) and other key ore zones are shown in Figures 3 to 7 below. JORC classification The mineralised domains have demonstrated sufficient continuity in both geological and grade continuity to support the definition of a Mineral Resource, and the classifications applied under the JORC Code (2012 edition). As previously mentioned, consideration was given to classifying sections of the deposit in the Indicated category in April 2013, however the unverified bulk density data ultimately resulted in the entire mineral resource being classified as Inferred. As mentioned above, a key factor that has allowed reclassification of the Big Springs resource has been the collection of a significant number of bulk density measurements from key ore zones at North Sammy, South Sammy and Beadles Creek. The method used (i.e. hydrostatic weighting method with wax coating) now accounts for any potential porosity in the ore host rocks and has significantly increased confidence in the bulk density data used for reporting tonnages. Following further database checks, the geological and mineralisation models plus the grade estimations for all ore zones have been reviewed and adjustments/corrections made where required, in particular for the 601 and 701 zones at South Sammy. With consideration to the above mentioned points (in particular the new bulk density data) plus confidence in the geological and mineralisation models, continuity of mineralised zones, drilling ASX RELEASE PAGE 3

4 density and confidence in the underlying database have all contributed to a significantly increased understanding and confidence of the entire Big Springs resource. This has allowed for reclassification of the Big Springs resource into portions of Measured, Indicated and Inferred as shown in Table 2 and Figure 2 below. Deposit Table 2: Big Springs Mineral Resource estimate June 2014 (2012 JORC Code guidelines) Resource Category Cut off (g/t Au) Tonnes (Kt) Grade (g/t Au) Contained gold (ounces) North Sammy Measured ,900 Indicated ,200 Inferred ,100 Sub total 1.0 1, ,100 North Sammy Measured 0.8 Contact Indicated ,400 Inferred ,300 Sub total 0.8 1, ,800 South Sammy Measured ,200 Indicated 0.8 3, ,900 Inferred 0.8 3, ,000 Sub total 0.8 7, ,200 Beadles Creek Measured 1.0 Indicated ,200 Inferred 1.0 2, ,500 Sub total 1.0 2, ,700 Mac Ridge Measured 0.8 Indicated 0.8 Inferred 0.8 1, ,100 Sub total 0.8 1, ,100 Dorsey Creek Measured 0.8 Indicated 0.8 Inferred ,900 Sub total ,900 Briens Fault Measured 1.0 Indicated 1.0 Inferred ,500 Sub total ,500 Total Measured ,100 Indicated 4, ,300 Inferred 10, ,400 Note: Appropriate rounding applied Total 16, ,029,900 ASX RELEASE PAGE 4

5 Figure 2: Plan projection of the Big Springs resource domains Figure 3: Cross section (East West) through the 601 zone at South Sammy ASX RELEASE PAGE 5

6 Figure 4: Cross section (North South) through the 303 Shoot at North Sammy Figure 5: Cross section (North South) through the Thumb Shoot at North Sammy ASX RELEASE PAGE 6

7 Figure 6: Cross section (North South) through the Southern Zone at South Sammy Figure 7: Cross section (South west North east) through Beadles Creek Mineralised Zone ASX RELEASE PAGE 7

8 Effect of varying cut off grade The Mineral Resource has been reported for a range of cut off grades (Table 3) in order to produce a grade vs. tonnage relationship (Figure 8). It can be seen, using a 2.5 g/t cut off grade, that a higher grade portion of the Resource exists with 40% of the overall contained gold (415,000 ounces) contained within a 3.1 million tonne, 4.2 g/t resource. Table 3: Big Springs Inferred Mineral Resource estimate at various cut off grades Cut off (g/t Au) Tonnes (Mt) Grade (g/t Au) Contained gold ( 000 ounces) , Note: Appropriate rounding applied Figure 8: Big Springs grade tonnage relationship at various cut off grades 1 Weighted average of domains estimated with 1.0 g/t and 0.8 g/t cut-off grades. ASX RELEASE PAGE 8

9 Future work Anova recently submitted its Plan of Operations for the first phase of mining operations, which encompass open pit mining of the 601 orebody and underground mining of the 701 orebody. The mine planning for both orebodies is well advanced. The work to be undertaken over the next six months will incorporate underground mine studies on the Thumb and 303 ore shoots located at North Sammy and a drilling program that will incorporate hydrological, geotechnical and exploration drilling at both North and South Sammy. Permitting of the first phase of mining operations will continue through this period with the aim to have the permits in place late this year. The company is also aiming to have a toll processing agreement finalised very shortly which will enable its ore to be processed through a third party mill and process facility in close proximity. Preferred mining contractors for the first phase of operations have been requested to provide quotations for mining of 601 orebody and transportation to the mill and process facility. Mine contractors for the 701 orebody are currently being evaluated. Big Springs project purchase terms triggered In line with the Big Springs project purchase terms previously announced to the market (ASX Announcement 28 November 2012), this JORC Mineral Resource estimation triggers the conversion of 13 million Performance Shares held by the project vendors, into Ordinary Shares. These Performance Shares were convertible upon the delineation of a JORC compliant Inferred Mineral Resource of at least 1 million ounces of gold. Competent Person Statement The information in this report that relates to Exploration Results and Mineral Resources is based on and fairly represents information compiled by Mr Lauritz Barnes (Principal Consultant Geologist, Trepanier Pty Ltd). Mr Barnes is a shareholder of Anova Metals. Mr Barnes is a member of the Australasian Institute of Mining and Metallurgy and has sufficient experience of relevance to the styles of mineralisation and types of deposits under consideration, and to the activities undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Barnes consents to the inclusion in this report of the matters based on information in the form and context in which it appears. ASX RELEASE PAGE 9

10 SUMMARY OF RESOURCE ESTIMATE AND REPORTING CRITERIA As per ASX Listing Rule 5.8 and the 2012 JORC reporting guidelines, a summary of the material information used to estimate the Mineral Resource is detailed below (for more detail please refer to Table 1, Sections 1 to 3 included below following Appendix 1). Geology and geological interpretation The Big Springs disseminated, sediment hosted gold deposits have been classified by respected scientific authors as typical Carlin style deposits. Gold is hosted predominantly within the Overlap Assemblage, which is Mississippian to Permian in age (300 to 360Ma), with structure and host stratigraphy being the primary controls on gold mineralisation. Mineralisation is typically hosted within black, highly carbonaceous siltstone and calcareous sandy siltstone. These units are typically located between the Argillic thrust in the footwall and the Schoonover thrust in the hangingwall. Individual high grade ore shoots at North Sammy generally plunge moderately to the NNW and are controlled by intersections of E W striking faults with the NE SW striking Argillic thrust. The South Sammy Creek deposit is more complex with a series of controlling structures, in particular the Briens fault along the western margin. On the eastern side of the Briens fault the thick, tabular South Sammy ore deposit forms a largely continuous zone that is semi concordant with the permeable and brittle host rocks of the Overlap Assemblage. Drilling techniques and hole spacing Data from 2,410 drill holes (289,000 metres) were used for the interpretation. Previous miner Independence Mining Company Inc (IMC) drilled both RC and diamond core and previous explorer Gateway Gold Corp (Gateway) drilled 312 holes of which 141 were RC and 171 were HQ diamond core. The majority of the IMC holes were drilled vertically while the more recent Gateway holes were inclined as in fill or extension to the deposits. The nominal drillhole spacing is approximately 50ft by 50ft (15m), reduces to 40ft by 40ft (12m) in the Measured resource zone at 601 (South Sammy) and increases up to ft (60 75m) towards the resource extremities. Sampling and sub sampling techniques Sample information used in resource estimation was derived from both RC drilling and diamond core drilling. The drill samples have been geologically logged and sub sampled for lab analysis. Sample analysis method Historical assaying was undertaken by one of the following; Monitor Geochemical Laboratory, American Assay Laboratories, Chemex Laboratory or Cone Geochemical. Most of the samples were assayed for Au by Atomic Absorption Spectroscopy after roasting and acid digestion. Selected samples were analysed by Fire Assay, or by cyanide leach on either roasted or un roasted pulps. These techniques are designed to report total gold. Gateway samples were submitted to ALS Chemex for Au by Fire Assay/atomic absorption. All samples in excess of 5g/t Au were re assayed by Fire Assay with gravimetric finish. In addition all samples were analysed for a suite of 34 elements with either an aqua regia or 4 acid digest and ICP/AES finish. ASX RELEASE PAGE 10

11 Cut off grades A 1.0 g/t gold cut off appears to be a natural grade boundary for the well defined structurally controlled shoots while a nominal 0.8 g/t gold cut off was used for the more diffuse zones with open pit potential. Samples were composited to 1.52 metre lengths. Statistical analysis showed the populations in each domain to generally have acceptable levels of variation, however each estimation domain contained outlier values that required top cut values to be applied. Estimation Methodology A block model was created using Surpac software incorporating 3.05 x 3.05 x 1.52 metre blocks, constrained by wireframes as described above. Directional variograms and Ordinary Kriging were used to estimate grades in all domains, with estimation searches governed by individual variograms for each domain. The 797 ore zone bulk density measurements were statistically analysed in detail by prospect areas, rock type and oxidation zone. The result of this analysis was then applied to the resource tonnage reporting. For zones where measurements were not able to be collected due to no available core (i.e. from Mac Ridge and Dorsey Creek) the calculated average bulk density (2.68 g/cm 3 ) from zones where there is data was then applied. The new bulk density information was also a primary factor used in the reclassification of the Big Springs resource. However, where new data was not collected, these zones remained classified as Inferred. Classification criteria The Mineral Resource has been classified on the basis of confidence in the geological model, continuity of mineralised zones, drilling density, confidence in the underlying database and new bulk density information. Considering the above factors has allowed for reclassifying the resource into portions of Measured, Indicated and Inferred Resources. Mining and metallurgical methods and parameters Open pit mining studies for the 601 zone at South Sammy are being evaluated and this is proposed to be the initial mining area. Options for underground mining are being evaluated for North Sammy, South Sammy and Beadles Creek. Factors such as a successful previous mining history, open pits still with stable walls after 20+ years since the mine closure, successful historical processing of both oxide and sulphide ore plus numerous nearby mining operations on similar styles of mineralisation and processing facilities indicate that the assumption for potential successful mining of Big Springs is reasonable. A combination of a historical period of processing both oxide and sulphide ore from Big Springs plus more recent limited metallurgical testwork by Gateway indicate that the assumption for potential successful processing of Big Springs ore is reasonable. Negotiations are in progress with a nearby toll treating facility that has capacity and ability to treat Big Springs ore. ASX RELEASE PAGE 11

12 Appendix 1: JORC Code, 2012 Edition Supporting tables. The following section is provided to ensure compliance with the JORC (2012) requirements for the reporting of the Mineral Resource estimates for the Big Springs gold deposit in Nevada. Section 1: Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.) Criteria JORC Code explanation Commentary Sampling techniques Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Samples were routinely collected at 5 foot (1.52m) intervals from Reverse Circulation (RC) and diamond drill holes (DDH). Independence Mining Company Inc (IMC) drilled 2,098 holes between 1982 and 1993 primarily on a nominal 50ft by 50ft (15.2m) spacing, increasing to about 100ft (30.5m) by 50ft in places. Gateway Gold Corp ( Gateway ) drilled 312 holes between 2003 and 2008 as infill to these grids. Drilling techniques Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where industry standard work has been done this would be relatively simple (eg reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay ). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information. Drill type (eg core, reverse circulation, open hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face sampling bit or other type, whether core is oriented and if so, by what method, etc). Gold occurs as very fine inclusions within finely disseminated sulphide mineralisation resulting in a moderate nugget effect. The sampling intervals are considered sufficiently small to yield statistically valid results given the nature of mineralisation encountered. Based on statistical analysis of field duplicates, there is no evidence to suggest samples are not representative. Sampling procedures followed by all historic operators were in line with industry standards at the time (personal communication with senior staff and drilling companies in charge of previous work). All RC samples were split at the rig using either a riffle or cone splitter to produce between 3 and 5kg of sample for shipment to the laboratory. Diamond core was HQ size, and cut in half over mineralised intervals, using either a core splitter or core saw. All samples were analysed. Data from 2,410 drill holes (289,000 metres) were used for the interpretation. IMC drilled both RC and diamond core however the exact proportion of each is in the process of being verified from the hardcopy logs. Gateway drilled 312 holes of which 141 were RC and 171 were HQ diamond core. The majority of the IMC holes were drilled vertically while ASX RELEASE PAGE 12

13 Criteria JORC Code explanation Commentary the more recent Gateway holes were inclined as in fill or extension to the deposits. Drill sample recovery Logging Sub sampling techniques and sample preparation Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. Core recovery data are available for 160 of the Gateway holes. Nearly 90% of these data have recoveries above 80%. Core recovery is described as good to excellent by previous workers. For the historic component of the database, it has not been possible to check sample recoveries and sampling methods. However, for Gateway drill holes, recovery data has been recorded, and field duplicates submitted and analysed. It was not possible, given the historical nature of the bulk of the database to make these types of assessments. It is planned that future drilling will target these issues. Detailed lithological logs exist for the vast majority of the holes in the database. Where these only exist in hard copy, they have been scanned and stored digitally. There is an ongoing work program where additional information from these logs that is not currently in the digital database (minerals, geotechnical, structural data) is being collated and included for future resource estimation and study work. Logging of diamond core and RC samples recorded lithology, mineralogy, mineralisation, structure (DDH only), weathering and colour. Core photographs also exist for some of the Gateway holes and for core from the recent Anova water monitoring wells. The total length and percentage of the relevant intersections logged. Lithological data exists for 2,149 of the 2,410 holes in the database (90%). These drill holes were logged in full. If core, whether cut or sawn and whether quarter, half or all core taken. Diamond core was cut in half on site using a mechanical splitter or a If non core, whether riffled, tube sampled, rotary split, etc and whether diamond saw. Some quarter core has been sampled to perform check sampled wet or dry. For all sample types, the nature, quality and assaying by previous workers. appropriateness of the sample preparation technique. RC samples were generally wet and split at the rig using a rotary device which was standard industry practice in Nevada at the time. Large samples weighing between 3 and 5kg each were dried, crushed and pulverized using industry best practice at that time. Quality control procedures adopted for all sub sampling stages to maximise representivity of samples. Field QC procedures for Gateway drill holes and the recent Anova water monitoring wells involve the use of certified reference material assay standards and blanks; as well as rig, reject and assay duplicates. ASX RELEASE PAGE 13

14 Criteria JORC Code explanation Commentary Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/secondhalf sampling. For all Gateway drill holes, in the case of RC samples, rig duplicates were collected at regular intervals. Diamond core was duplicated every 60 to 70 core samples by submitting the remaining half core for analysis. Personal communication with senior staff supervising the IMC drilling indicates that industry best practice was employed at the time. Anova s duplicates were created for every 20 th sample during the coarse crushing sample preparation process. Whether sample sizes are appropriate to the grain size of the material being sampled. The sample sizes are considered appropriate for the style of mineralisation, which is fine grained disseminated gold with minimal nugget effect. Quality of assay data and laboratory tests The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. Historical assaying was undertaken by one of the following; Monitor Geochemical Laboratory, American Assay Laboratories, Chemex Laboratory or Cone Geochemical. Most of the samples were assayed for Au by Atomic Absorption Spectroscopy after roasting and acid digestion. Selected samples were analysed by Fire Assay, or by cyanide leach on either roasted or un roasted pulps. These techniques are designed to report total gold. Gateway samples were submitted to ALS Chemex for Au by Fire Assay/atomic absorption (FA/AA). All samples in excess of 5g/t Au were reassayed by Fire Assay with gravimetric finish (FA/Grav). In addition all samples were analysed for a suite of 34 elements with either an aqua regia or 4 acid digest and ICP/AES finish. Anova followed the same analysis regime as Gateway. No geophysical tools were used to determine any element concentrations used in this resource estimate. Hard copy logs of historical drilling show that umpire laboratory checks were undertaken to check the Monitor Geochemical Laboratory results. Previous workers have verified historical assay data by re assaying of IMC diamond holes. The Gateway drilling contains QC samples including field duplicates, coarse crush laboratory duplicates and laboratory pulp splits, certified reference materials and blanks. The Anova water monitoring wells drilling contains QC samples including coarse crush laboratory duplicates and laboratory pulp splits, certified reference materials and blanks. ASX RELEASE PAGE 14

15 Criteria JORC Code explanation Commentary The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Verification of sampling and assaying Location of data points Data spacing and distribution Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data. Accuracy and quality of surveys used to locate drill holes (collar and downhole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control. Data spacing for reporting of Exploration Results. Independent consultant reports have been viewed that verify significant intersections in diamond core. Twinned holes have been drilled along with drill holes fanned about a central collar. Visual inspections have been completed with original and twin holes showing comparable results. Anova water monitoring wells were drilled nearby historic holes and produced comparable assay results. Primary data was sourced from an existing digital database and compiled into an industry standard drillhole database management software (DataShed ). Records have been made of all updates that have been made in cases of erroneous data. The database is in the process of being enhanced with additional data sourced from both digital and hard copy logs. Data verification has been ongoing with historical assays and surveys being checked back against hard copy logs. All Gateway and Anova assays were sourced directly from original electronic laboratory files. No adjustments or calibrations were made to any assay data used in this estimate. Collar surveys have been used from the supplied database. Where discrepancies occurred, these coordinates were edited only after checking against hard copy logs. This process will continue as part of the database enrichment. Downhole survey records have been checked against digital and hardcopy survey logs and where necessary additional surveys have been added to the database. All edits have been documented. All holes have been checked spatially in 3D and all obvious errors addressed. The grid system uses the NAD 27 Datum, and the Nevada East State Plane projection in feet. The topographic surface was sourced from digitized scanned pit maps from mine closure. Comparisons against current surface imagery were made and appear very accurate. GPS readings were also made during site visits as an approximate check. Further surveying work is planned prior to potential mining. The nominal drillhole spacing is approximately 50ft by 50ft (15m), is down to 40ft by 40ft in the Measured resource zones at 601 and increases in places. Correspondingly, as the drillhole spacing increases and confidence ASX RELEASE PAGE 15

16 Criteria JORC Code explanation Commentary in geological and mineralisation continuity decreases, the resource classification changes from Measured to Indicated to Inferred. Gateway holes have been drilled as infill to these grids as confirmation of mineralisation. Orientation of data in relation to geological structure Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied. Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. The mineralised domains have demonstrated sufficient continuity in both geological and grade continuity to support the definition of Mineral Resource and Reserves, and the classification applied under the 2012 JORC code. No sample compositing has been applied out of 2,410 holes were drilled vertically (88%). The remainder were drilled at angles of between 85 0 and 30 0 and azimuths of between 0 0 and The orientation of the mineralisation is variable and no bias has been detected. No orientation based sampling has been identified to date. Sample security The measures taken to ensure sample security. Gateway and Anova samples are stored at the Doheny Ranch located east of the Big Springs property. All samples were sorted here before being sent by a dedicated truck to ALS Chemex in Elko. After analysis, all samples were returned and archived and coarse sample rejects discarded. Core is stored in wooden or plastic boxes and racked for reference, as are chip trays. There is no information regarding security of samples for work previous to Gateway s tenure at the project. Audits or reviews The results of any audits or reviews of sampling techniques and data. Gateway completed checks of historic assays with favourable comparisons. Anova has checked 5% of the collar and assay data in the supplied digital database against hard copy logs and found no material discrepancies. ASX RELEASE PAGE 16

17 Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Criteria JORC Code explanation Commentary Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites Mineral tenement and land tenure status Exploration done by other parties The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. The Big Springs project tenements, comprising a total of 702 unpatented Lode Mining Claims (14,002 acres or 5,666 ha) are all owned by Anova. Anova also owns acres ( ha) of fee land (private or freehold land) within and adjacent to the Big springs group of mining claims. The fee land includes all mineral rights and exclusive private surface rights. All claims are subject to a 3% Net Smelter Return to the original vendors. There are no known adverse surface rights. There are no known impediments. All liabilities with respect to the decommissioning of the open pit mines are the responsibility of AngloGold Ashanti N.A Inc. Acknowledgment and appraisal of exploration by other parties. Independence Mining Company Inc (IMC) drilled 2,098 holes between 1982 and These holes were both, reverse circulation (or RC ) and diamond core. There was also detailed blast hole drilling and sampling in the open pits. Gateway Gold Corporation (Gateway) drilled 312 holes between 2003 and 2008 of which 141 were RC and 171 were diamond core. These holes were drilled as in fill or extension to the IMC drilling grids. Geology Deposit type, geological setting and style of mineralisation. The Project s disseminated, sediment hosted gold deposits have been classified by several authors as typical Carlin type deposits. The Big Springs deposits are hosted predominantly within the flaser bedded siltstone of the Overlap Assemblage, which is Mississippian to Permian in age (30Ma to 360Ma), with structure and host stratigraphy being the primary controls on gold mineralisation. Mineralisation is typically hosted within black, highly carbonaceous siltstone and calcareous sandy siltstone. These units are generally located between the Argillic thrust of the footwall and the Schoonover thrust in the hangingwall. Individual high grade ore shoots at North Sammy generally plunge moderately to the NNW and are controlled by intersections of E W striking faults with the NE SW striking Argillic thrust. The South Sammy Creek deposit is more complex with a series of controlling structures, in particular the Briens fault along the western margin. On the eastern side of the Briens fault, the thick, tabular South ASX RELEASE PAGE 17

18 Criteria JORC Code explanation Commentary Sammy ore deposit forms a largely continuous zone that is semiconcordant with the permeable and brittle host rocks of the Overlap Assemblage. Drill hole Information Data aggregation methods Relationship between mineralisation widths and intercept lengths Diagrams Balanced reporting A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes, including easting and northing of the drill hole collar, elevation or RL (Reduced Level elevation above sea level in metres) of the drill hole collar, dip and azimuth of the hole, down hole length and interception depth plus hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated. These relationships are particularly important in the reporting of Exploration Results. If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg down hole length, true width not known ). Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. The drillhole database comprises over 2,000 historical drillholes completed between 1982 and Every attempt has been made to validate this drilling, and it has been compiled into an industry standard, relational database. The inclusion of every drillhole collar in the historical data compilation does not contribute any additional information to this report, as it does not constitute new exploration drilling which Anova was responsible for undertaking. Not reporting exploration results. No metal equivalent values are used. Not reporting exploration results. Modelled ore zones have intersected in multiple orientations by the difference generations and types of drilling (e.g. RC vs. diamond core) and as such, there is high confidence in both the geological and mineralised zone orientations and nature. See Figures 2 to 7 show a plan map of the drilling and the interpreted ore zone plus example cross sections through key zones at North Sammy (303 and Thumb shoots), South Sammy (601 and Southern zones) and Beadles Creek. Not reporting exploration results. The Big Springs database includes over 2,000 intersections used for estimation within the interpreted ore zones. ASX RELEASE PAGE 18

19 Criteria JORC Code explanation Commentary Other substantive exploration data Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. All meaningful & material exploration data has been reported. Further work The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large scale step out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. Further work planned includes drilling for purposes to support mining studies including geotechnical analysis and metallurgical sampling. Some infill and extensional resource drilling has also been planned. Section 3 Estimation and Reporting of Mineral Resources (Criteria listed in section 1, and where relevant in section 2, also apply to this section.) Criteria JORC Code explanation Commentary Database integrity Measures taken to ensure that data has not been corrupted by, for example, transcription or keying errors, between its initial collection and its use for Mineral Resource estimation purposes. Data have been compiled into a relational SQL database, the setup of this database precludes the loading of data which do not meet the required validation protocols. The data are managed by DataShed Management Software, which also has inbuilt validation checks. Data, where possible, has been loaded from original data sources. Remaining data has also been checked against original hard copies for 5% of the data. Data validation procedures used. Data validation was carried out on import to the DataShed database, as well as using 3D visualization techniques. Data were also validated against hard copy data sources. Site visits Comment on any site visits undertaken by the Competent Person and the outcome of those visits. Lauritz Barnes, the Competent Persons, visited the Big Springs site on 7 November During the visit historical pits were inspected, geological units within pits compared to mapped geology, grab samples were taken, photos were taken, diamond core was viewed, GPS checks were carried out on selected drillhole collar sites. ALS Global s minerals laboratory in Elko, Nevada was visited and inspected (where the majority of Gateway s samples were prepared and analysed between 2003 and 2008). Anova s check grab samples from 2012 and samples collected from water ASX RELEASE PAGE 19

20 Criteria JORC Code explanation Commentary monitoring wells drilled in late 2013 were submitted for analysis with this laboratory. Geological interpretation Dimensions Estimation and modelling techniques Confidence in (or conversely, the uncertainty of) the geological interpretation of the mineral deposit. Nature of the data used and of any assumptions made. The effect, if any, of alternative interpretations on Mineral Resource estimation. The use of geology in guiding and controlling Mineral Resource estimation. The factors affecting continuity both of grade and geology. The extent and variability of the Mineral Resource expressed as length (along strike or otherwise), plan width, and depth below surface to the upper and lower limits of the Mineral Resource. The nature and appropriateness of the estimation technique(s) applied and key assumptions, including treatment of extreme grade values, domaining, interpolation parameters and maximum distance of extrapolation from data points. If a computer assisted estimation method was chosen include a description of computer software and parameters used. The availability of check estimates, previous estimates and/or mine production records and whether the Mineral Resource estimate takes appropriate account of such data. The historical digital database used for the interpretation included logged intervals for the key stratigraphic zones. Detailed geological logs were available in hardcopy and reviewed where necessary. Litho geochemistry for the Gateway holes assisted to confirm the validity of the historic stratigraphic interpretation with good confidence. Drill density (50ft by 50ft) for the majority of the Big Springs area allows for confident interpretation of the geology and mineralised domains. More recent infill/verification drilling by Gateway confirms positions of key mineralised zones. Geological and structural controls support modelled mineralised zones. Continuity of mineralisation is affected by proximity to structural conduits (allowing flow of mineralised fluids), stratigraphic position, lithochemistry of key stratigraphic units and porosity of host lithologies. All remaining mineralisation is considered to be transitional to fresh material as the vast majority of oxide ore has been mined previously. Both the geological and mineralisation models for the 601 and 701 zones at South Sammy have been re interpreted and re estimated since the Inferred Resource from April These updates have been incorporated in the resource reporting in and will be used for ongoing mining studies. The Mineral Resource areas vary however mineralised zones modelled have dimensions of up to 4,000ft (north) by 1,000ft (east) and 1,000ft (elevation) for North Sammy, South Sammy and Beadle Creek. The other zones are smaller than these. Grade estimation using Ordinary Kriging (OK) was completed using Gemcom Surpac software for gold only. Drill spacing typically ranges from 50ft (15.2m) to 100ft (30.5m). Drillhole samples were flagged with wireframed domain codes. Sample data was composited for gold to 5ft using a best fit method. The very minor number of residuals were checked, considered immaterial and were excluded. Influences of extreme sample distribution outliers were reduced by topcutting on a domain basis. Top cuts were decided by using a combination of methods including grade histograms, log probability plots and statistical ASX RELEASE PAGE 20

21 Moisture Criteria JORC Code explanation Commentary The assumptions made regarding recovery of by products. Estimation of deleterious elements or other non grade variables of economic significance (eg sulphur for acid mine drainage characterisation). In the case of block model interpolation, the block size in relation to the average sample spacing and the search employed. Any assumptions behind modelling of selective mining units. Any assumptions about correlation between variables. Description of how the geological interpretation was used to control the resource estimates. Discussion of basis for using or not using grade cutting or capping. The process of validation, the checking process used, the comparison of model data to drill hole data, and use of reconciliation data if available. Whether the tonnages are estimated on a dry basis or with natural moisture, and the method of determination of the moisture content. tools. Directional variograms were modelled by domain using traditional variograms and correlograms. Nugget values are moderate and grade ranges generally short (approximately 50 60m). Domains with limited samples used variography of geologically similar domains. Previous open pit mining activity produced approximately 380,000 oz of gold. Historical pit shapes and mined zones match mineralised zones (modelled using drilling data) well. No underground mining has been conducted at Big Springs. A published 2006 NI resource is available on SEDAR. No by products have historically been produced, or are expected to be produced, from Big Springs. No other elements are estimated to date due to the limited availability of multi element assays this exists for the more recent Gateway drilling only. Block model was constructed with parent blocks of 10ft (E) by 10ft (N) by 5ft (RL) and sub blocked to 5ft (E) by 5ft (N) by 2.5ft (RL). All estimation was completed to the parent cell size. Discretisation was set to 5 by 5 by 2 for all domains. Three estimation passes were used. The first pass had a limit of 125ft (38.1m), the second pass 250ft (76.2m) and the third pass searching a large distance to fill and blocks within the wireframed zones. Reporting was limited to Passes 1 and 2. Each pass used a maximum of 24 samples, a minimum of 8 samples and maximum per hole of 5 samples Search ellipse sizes were based primarily on a combination of the variography and the trends of the wireframed mineralised zones. Hard boundaries were applied between all estimation domains. Validation of the block model included a volumetric comparison of the resource wireframes to the block model volumes. Validation of the grade estimate included comparison of block model grades to the declustered input composite grades plus swath plot comparison by easting, northing and elevation. Visual comparisons of input composite grades vs. block model grades were also completed. Tonnes have been estimated on a dry basis. ASX RELEASE PAGE 21

22 Criteria JORC Code explanation Commentary Cut off parameters The basis of the adopted cut off grade(s) or quality parameters applied. Zones more likely to be mined by underground methods (primarily at North Sammy and Beadle Creek) have been wireframed to a 1.0g/t gold cut off. For these shoots, this cut off also tends to be very close to a natural cutoff. All other zones have been reported inside the mineralisation wireframes constructed at an approximately 0.8g/t gold cut off, either by wireframing or indicator modeling methods. Mining factors or assumptions Metallurgical factors or assumptions Environmental factors or assumptions Bulk density Assumptions made regarding possible mining methods, minimum mining dimensions and internal (or, if applicable, external) mining dilution. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential mining methods, but the assumptions made regarding mining methods and parameters when estimating Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the mining assumptions made. The basis for assumptions or predictions regarding metallurgical amenability. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider potential metallurgical methods, but the assumptions regarding metallurgical treatment processes and parameters made when reporting Mineral Resources may not always be rigorous. Where this is the case, this should be reported with an explanation of the basis of the metallurgical assumptions made. Assumptions made regarding possible waste and process residue disposal options. It is always necessary as part of the process of determining reasonable prospects for eventual economic extraction to consider the potential environmental impacts of the mining and processing operation. While at this stage the determination of potential environmental impacts, particularly for a greenfields project, may not always be well advanced, the status of early consideration of these potential environmental impacts should be reported. Where these aspects have not been considered this should be reported with an explanation of the environmental assumptions made. Whether assumed or determined. If assumed, the basis for the assumptions. If determined, the method used, whether wet or dry, the frequency of the measurements, the nature, size and representativeness of the samples. The bulk density for bulk material must have been measured by methods that Open pit options for the 601 zone at South Sammy have been evaluated and this is the proposed initial mining area. Options for underground mining are being evaluated for North Sammy, South Sammy and Beadles Creek. Factors such as a successful previous mining history, open pits still with stable walls after 20 years since the mine closure, successful historical processing of both oxide and sulphide ore plus numerous nearby mining operations on similar styles of mineralisation and processing facilities indicate that the assumption for potential successful mining of Big Springs is reasonable. A combination of a historical period of processing both oxide and sulphide ore from Big Springs plus more recent limited metallurgical testwork by Gateway indicate that the assumption for potential successful processing of Big Springs ore is reasonable. Permitting with relevant agencies is well advanced for designated waste disposal options at the Big Springs site. It is expected that processing of ore will by a toll treatment arrangement so process residue disposal options will be required. Bulk density had previously been estimated from measurements carried out by Gateway drilling on 98 core samples using weight in air and weight in water. Samples were tested from different rock types, as well as within mineralised zones (Gateway reported 61 to be from within mineralised ASX RELEASE PAGE 22