ABN 26 HIGHLIGHTS. Only. about 35% Audio Magneto. 7.5 cents. within 18. Each. The objective of

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1 ABN March 2014 Quarterly ASX Report HIGHLIGHTS Kitgum Pader Basemetals & Gold Project P Results of Geological Geochemical Geophysical integration of 2013 fieldwork were received and announced to the ASX onn 24 February These results are considered to offer compelling optimism for f the discovery of major Lead Only about 35% of the 6,358 square kilometre project has been sampled to Zinc Silver, Nickel Copper PGE, and possibly Gold, deposits. At least 12 targets, across the t commodity styles described above, have been defined. date. a Copper Project Results from earlier RAB, RC and Diamond drilling were integrated with last December s Audio Magneto Telluric (AMT) surveyy and earlier magnetic, gravity, IPP and EM surveys s to construct a 3 D Model for drill targeting at the Enigma Copper Prospect. Four quality targets resulted and upp to 11 precollared Diamond D drill holes have been planned for 3,0 metres. Entitlement Issue A 1 for 3 Entitlement Issue at 3.5 cents was announced to the ASX on 24 March Each Entitlement share has a free Option attached, exercisable at months. 7.5 cents within 18 Blue Ocean Equities have offered to manage the placementt of any shortfall, and to t provide Corporate Advice, for a period of 18 months for the fee of 7 million Options, on the same terms as the Entitlement options. Drilling at both Projects has been planned and will commence on receipt of funds. The objective of the Entitlement Issuee is accelerate exploration at both projects. Informationn in this Quarterly Report is largely drawn from previous Sipaa Announcements in particular the 24 February 2014 ASX Releasee and the 24 March 2014 Prospectus. REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 POSTAL ADDRESS: PO Box 1183 West Perth WA 6872 TEPHONE: (08) FAX: (08) info@sipa.com.au

2 2 Kitgum Pader Basemetals & Gold Project P Sipa Exploration Limited (SEUL),( which is owned by Sipa and 20% % by Geocrust Pty Ltd, a company controlled by Dr Nick Archibald, commenced systematic field exploration at Kitgum Pader in central northern in early Since thatt time SEUL has taken more than t,000 geochemica l soil samples leading to the discovery of 12 sulphide derived base and precious metal prospects. Only about 35% of SEUL s 6,358 square kilometre tenuree (Figure 1) has yet been sampled. Figure 1 Project Location Map Tectono Me etallogenic Setting of Kitgum Pad der SEUL contracted Dr Jon Hronsky to provide opinion, and report on the tectonometallogenic setting of Kitgum Pade er within the African continent context, and in particula provide a detailed assessment of the nickel copper PGE prospectivity of the project. Dr Hronsky interpretedd the Kitgum Region as forming the rifted continental margin of thee Congo Craton during a major PaleoProterozoic event that culminated in the NeoProterozoic with the overthrustingg of the West Karamoja Group metasedime entary rocks as an acretionary orogen. He recognised that this is a geodynamic environment closelyy analogouss to that of the well mineralised PaleoProterozoic Thompson andd Raglan Nickel Belts that t formedd on the margin of the Superior Craton in Canada. Figure 2 shows the Cratonic Geological setting. REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 POSTAL ADDRESS: PO Box 1183 West Perth WA 6872 TEPHONE: (08) FAX: (08) info@sipa.com.au

3 3 Figure 2 Cratonic Geological Setting of Kitgum Paderr (after Hronsky 2014) ) Using recent Nick Archibald and GTK (a consortium of geological organisations from Germany, South Africa and, led by the Geological Survey of Finland) geological mapping, SEUL s pxrf regional geochemica l data and airborne magnetics and radiometrics, Dr Hronsky H established a Lithological Structural Sequence across the northern partt of the Kitgum Pader Project P (seee Figure 3). Figure 3 Kitgum Pad der Interpretative Geological Mapp Establishing this Lithological Structural Sequence is very important, because it allows for the various geochemica l anomalies to be integrated into a coherent geological framework. Viz, the: Pamwa and Ayuu Alali basemetal BHT anomalies are on the upper Gneiss and in the overlying West Karamoja Group respectively. contact off the Kitgum Walago and 9 other Ni Cu PGwithin the Burukungg Ultramafic Formation and thee Waal Gabbroid Suite respectively. The Abwoc beel Au As Bi anomaly is within the Kitgum Gneiss. anomalies, as well as the Akelikongo and two other Ni Cu PGE anomalies, are REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 POSTAL ADDRESS: PO Box 1183 West Perth WA 6872 TEPHONE: (08) FAX: (08) info@sipa.com.au

4 4 Key outcomes from the 2013 exploration programme are: The recognitionn of rocks strikingly similar to the host Mine Series sequence Broken Hill Lead Zinc Silver Deposit inn NSW, Australia led to the discovery of: at the giant the Pamwa and Ayuu Alali Prospects, which are two standoutt Broken Hill Type (BHT) soil geochemical anomalies, within 75 kilometres k of Fertilee BHT Geochemical Corridors. The anomalies are interpreted as being derivedd from base metal sulphides. Discovery of two standoutt Nickel Copper PGE prospects, both b interpreted as derived nickel copper sulphides, each in different geological settings: Akelikongo is interpreted as a chonolith, within an a intrusivee mafic ultramafic complex. There are only 61 chonoliths known world wide 58 are mineralised and 29 are, or have been, mines. Examples include the giantt Norilsk camp in Russia, Jinchuan in China, and Voiseys Bay in Canada. Existing data are suggestive of the presence of additional bodies of this type within SEUL tenure. Walago is within reworked Archaean or PaleoProterozoic, supracrustal rocks with striking similarities to thee giant Thompson Belt environmene nt of Canada. In addition to Akelikongo and Walago, there are anotherr 9 fertile ultramafic targets. Discovery of Abwoc bell, a 2.5 kilometre long gold arsenic bismuth metamorph hic terrane hosted deposits, like Tropicana in Western Australia. anomaly, which may have typical characteristics of some high grade mafic Planned Work Preparation s for drilling, and recommencing the regional geochemical surveys of the recently granted s, are complete and await funding from thee Entitlement Issue. Twelve targets are planned to receive the first ever drill testing. REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 POSTAL ADDRESS: PO Box 1183 West Perth WA 6872 TEPHONE: (08) FAX: (08) info@sipa.com.au

5 5 Copper Project The Enigma Prospect, within Sipa s owned Copperr Project in Western Australia, has similarities to the great sediment hosted copper deposits of the Central C African Copperbelt Mt Isa Nifty spectrum of deposits. Enigma is a very large copper anomaly, covering some 5 km by up to t 2 km andd is mostly expressed as a blanket of secondary copper carbonates, generally 80m to 100mm below ground surface and mostly defined by Aircore drilling. There are 39 holes with >10%/metres of Cu intersections, ranging up to 34m grading 2.8% Cu, including 11m grading 7.6% Cu in the same hole. There are 9 holes with primary copper sulphide intersections, ranging up to 63m grading 1.1% 1 Cu. Various, and extensive, geological, geochemical and geophysical data sets collected by Sipa have been used to define four key diamond drillingg targets at Enigma for the next round of drilling. Figure 4 Project Location map The Project is located in the t PalaeoProterozoic intracratonic Yerrida rift basin between the northern margin of the Archaean Yilgarn Craton and the southern margin m of the Archaean Marymia granite gree enstone dome (Figure 5). REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 POSTAL ADDRESS: PO Box 1183 West Perth WA 6872 TEPHONE: (08) FAX: (08) info@sipa.com.au

6 6 The rift basin is bound by major northeast tr rending structures, thee Jenkin Fault to the north and the Lone Hill Fault to the south and forms a regional syncline. The Archaean Marymia granite greenstone dome is thrust on top of the Yerrida sediments, presumably during basin inversion. Sipa ss recent AMT survey shows that the basin was inverted as a double verging thrust and fold belt. A major set of northwest t rending accommodation structures cross cuts the NE trending faults. Based on regional geological, magnetic and gravity data, Sipa now interprets the Enigma (northeast) to Three Rivers (southwest) section of the basin to be a continuous upward younging sequence from the Juderina Formation through the t Johnsons Cairn and Formationss (in Sipa s ground) and the Naracoota Karalundi Formation to the Robinson Range Formation at the top. This opens the possibility of the De Grussa Copper Gold Deposit being related too basin brine formation, controlled by the Jenkin, and other, Faults, ass is postulated for Enigma. Figure 5 Regional Geological Setting The Enigma prospect is transected by northeast to eastnortheast trending, southeast verging thrusts. Most of the Enigma mineralization is hosted in a gently southwest plunging anticline. A major set of northwest trending accommodation structures transects the t prospect. The location of the mineralizatio on is controlled by both the northeast trending thrusts and the northwest trending accommoda ation structures and the anticlinal fold closure. Figure 6 shows, in cartoon style, the initial extensional development, through compressional inversion during whichh shale, breccia and dolomite hosted copper was deposited, to later orogenic overprint during which Green Dragon style shear fault mineralizationn was deposited. REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 POSTAL ADDRESS: PO Box 1183 West Perth WA 6872 TEPHONE: (08) FAX: (08) info@sipa.com.au

7 7 Figure 6 Cartoons of Basin Development and Setting and Timing of Copper Mineralization Style s. REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 POSTAL ADDRESS: PO Box 1183 West Perth WA 6872 TEPHONE: (08) FAX: (08) info@sipa.com.au

8 8 Drill Targets Figure 7 shows the position of the 4 drill targets and planned drill holes. Figure 7 Geological map of the Enigma Prospect showing the Target Locations and Drill Holes Target 1 is a steeply dipping siliceous breccia zone striking northeast over about 500 metres and is up to 90 metres thick. Target 2 is also a siliceous breccia zone, steeply dipping and striking northwest before it intersects Target 1. Hole THD012 returned 63 metres grading 1.1% Cu beneath Target 1 mid Target 3 the Horn are two AMT conductors dipping towards each e other much largerr conductive body below. and connecting with a Target 4 is an extensive near horizontal zonee of copper mineralised pyrite mineralisation, unusually perched within a very deeply weathered profile. The target is the root zone of the pyrite. Planned Work Drilling is planned to commence upon receiptt of funds from the Entitlement Issue. REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 POSTAL ADDRESS: PO Box 1183 West Perth WA 6872 TEPHONE: (08) FAX: (08) info@sipa.com.au

9 9 The information in this report that relates to Exploration Results, Mineral Resources orr Ore Reserves is based on information compiled by Mr M G Doepel who is a Member of The Australasiann Institute of Mining and Metallurgy. Mr Doepel is a full time employee of Sipa Resources Limited. Mr Doepel has sufficient experience which is relevant r 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 Editionn of the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Doepel consents to the inclusion in this report of the matters based on his information in the form and context in which they appear. The information in this report that relates to Exploration Results for the Kitgum Pader Project and the t Exploration Results for the Audio Magneto Telluricc (AMT) geophysical survey at is based on information compiled by Michael Doepel, a Competent Person who is a Member or Fellow of Thee Australasian Institute of Mining and Metallurgy. Michael Doepel is a full time employee of the Company. Michael Doepel hass sufficient experience that is relevant to the style of mineralisation and type of deposit underr consideration and to the activity beingg undertaken to qualify as a Competent Person as defined in the Edition of the Australasian Code for Reporting R of Exploration Results, Mineral Resources and Ore Reserves. Michaell Doepel consents to the inclusion in the report off the matterss based on his information in the form and context in which it appears. The information in this report that relates to all other Exploration Results at, except for the AMT geophysical survey, is based on information compiled by Mr Michael Doepel, who is a Member M of The Australasian Institute of Mining and Metallurgy. Mr Doepel iss a full time employee of Sipa Resources Limited.. Mr Doepel has sufficient experience which is relevant to the style of mineralisation and type of depositt under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the Australasian Code for Reporting of Exploration Results, Mineral Resourcess and Ore Reserves. Mr Doepel consents to the inclusion in this report of the matters based on his information in the form and context in whichh they appear. Sipa states and continues to report exploration results as definedd under the edition of the JORC Code. To date, exploration results have not been reported to comply with the 2012 edition of the JORC Code on the basis that the information has not materially changed since it was last reported For more information: Mike Doepel, Managing Director Sipa Resources +61 (0) info@sipa.com.au om.au REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 POSTAL ADDRESS: PO Box 1183 West Perth WA 6872 TEPHONE: (08) FAX: (08) info@sipa.com.au

10 APPENDIX ASX LISTING RULE Mining Tenements Acquired during Quarter: 10 Tenement eference Project Nature of interest Interest at beginning of quarter Interest at end of quarter Mining Tenements Surrendered during this t Period: Tenement eference E28/1483 E28/1484 E63/1043 Project Woodline Woodline Woodline Nature of interest Interest at beginning of quarter Interest at end of quarter Mining Tenements Held at End of Quarter: Tenement eference E52/1673 E52/1674 E52/1858 E52/2356 E52/2357 E52/2405 Project Nature of interest Interest at beginning of quarter Interest at end of quarter REGISTERED OFFICE: Ground Floor, 6 Thelma Street, West Perth WA 6005 POSTAL ADDRESS: PO Box 1183 West Perth WA 6872 TEPHONE: (08) FAX: (08) info@sipa.com.au