ASX RELEASE. Conceptual Mining Study Confirms Potential for Near Term Development of the Nuurstei Coking Coal Project

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1 Aspire Mining Limited ABN: Kewdale Road Welshpool WA 6106 PO Box 1918 Subiaco WA 6904 Tel: (08) Fax: (08) ASX RELEASE Web: For Immediate Release 20 April, 2015 For Immediate Release 19 April 2017 Conceptual Mining Study Confirms Potential for Near Term Development of the Nuurstei Coking Coal Project The Company has received an Independent Conceptual Mining Study from Bluefield Advisory which targeted a starter open pit based largely on indicated and inferred resources. On 13 April 2016, the Company reported JORC 2012 compliant 4.75Mt in Indicated Resources and 8.1Mt in Inferred Resources at the Nuurstei Coking Coal Project. Preliminary internal project development time line shows first production possible within 12 to 15 months, subject to permitting and funding availability. The Project is estimated to have a competitive delivered onto rail cost in China. The Conceptual Mining Study supports further targeted expenditure on progressing the project so that an investment decision towards mining can be made. The Company plans to confirm Conceptual Mining Study assumptions with the planned 2017 Drilling and Sampling programme which is budgeted at US$1.5 million. Conversion of Nuurstei Exploration License 13580X to a 30 Year Mining License is well advanced as the Company works towards a potential operational start in Aspire has agreed with Noble Group to extend the exercise date for the option to acquire Noble s beneficial 45% interest in Nuurstei from March until June Mongolian coal developer Aspire Mining Limited (ASX: AKM, the Company or Aspire) is pleased to announce that its 50% owned Ekhgoviin Chuluu Joint Venture (ECJV) with the Noble Group (SGX: N21) has received a Conceptual Mining Study from specialist coal engineers, Bluefield Advisory. 1 P a g e

2 Bluefield Advisory was commissioned to undertake a Conceptual Mining Study (Study) to evaluate the viability and cost of an open cut mining operation for the Nuurstei Coking Coal Project deposit. The aim of the Study was to assess the economics for a conceptual open cut pit that would enable a significant portion of the Indicated Resource to be mined. Conceptual Mining Study Parameters Cautionary Statement The Study is a preliminary technical and economic study of the potential viability of the Nuurstei Coking Coal Project. It is based on low level technical and economic assessments that are not sufficient to support the estimation of ore reserves and further evaluation work and appropriate studies are required to provide any assurance of an economic development case. This Conceptual Mining Study as well as logistics and market assessments provided by Noble Group has provided the Company with the confidence to proceed in 2017, subject to funding, with a US$1.5 million drilling and sampling programme that will look to upgrade inferred to indicated resources as well as increase overall resources. As there is a low level of geological confidence associated with inferred mineral resources there is no certainty that further exploration work will result in an increase in indicated mineral resources. To achieve the range of proposed outcomes from the Study, additional funding will be required. Investors should note that there is no certainty that the Company will be able to raise that amount of funding when needed. It is also possible that such funding may only be available on terms that may be dilutive to or otherwise affect the value of the Company s shares. The Study is based on the material assumptions outlined herein and these include assumptions on the availability of funding when needed to commence mine development and construction. Whilst Aspire and Bluefield Advisory consider all of the material assumptions to be based on reasonable grounds, there is no certainty that they will prove to be correct or that outcomes indicated in the Study will be achieved. Given the uncertainties involved, investors should not make any investment decisions based solely on the results of this Conceptual Mining Study. Conceptual Mining Study Scope The Study is a desktop concept study to determine the potential for open cut mining of the Nuurstei Coking Coal Project resource. The targeted area for this preliminary mine design is the Indicated Resource zone. Once the results of the proposed 2017 drilling and sampling programme are included in a revised resource model the mine plan will need to be updated. The pit depth has been limited to 150 metres and does not include near surface Inferred Resources in an area to the west. Infill and extension drilling is anticipated to convert Inferred to Indicated Resources in the western part of the deposit which may enable an extension of the pit design to the west. The initial scope of work for the Study included the following: 2 P a g e Mine Planning Model acquisition and set-up of structural data from the April 2016 geological model prepared by McElroy Bryan Geological Services Pty Ltd (MBGS) in preparation for mine planning Cost Inputs established a zero based cost model based on all of the activities, equipment and labour required to undertake these activities from pit preparation to coal point of sale Cost Rank Process - running the cost ranking to determine the unconstrained economic pit limits Pit Limit - establishing the economic and physical limiting factors for mining options Block Model - generating a block model for each option to determine the mining and waste quantities for scheduling Quantity Schedule - sequencing the blocks to generate a mining schedule & waste quantities

3 The Study is constrained by the location, depth, and quantity of the resource, and is aligned with the proposed 150 tonnes per hour wash plant (CHPP). On 13 th April 2016, the Company released an initial resource report independently prepared by MBGS that identified total JORC 2012 Coal Resources of 12.85Mt comprising 4.75Mt of Indicated and 8.1Mt of Inferred Mineral Resources. The Conceptual Mine Plan based on the above geological model produces Run-of-Mine (ROM) coal within the minable pit shell based on 47% from Indicated Resources, 31% from Inferred Resources and 22% from areas adjacent to the existing Resource, with potential to add to near surface mineral resources. The area considered to have potential for economic open cut mining was defined by the sub-crop of AA seam group to the north, seam depth and the tenement boundary to the south and east. This will be a target of the 2017 drilling and sampling programme. The volume relating to this exploration potential above has been risk adjusted down by 50% for the purposes of this Study. Figure 1: Conceptual Site Layout Due to the orientation and number of thin seams, the deposit is extremely sensitive to loss and dilution. Clean mining will be essential and coal recovery and dilution will be key risks for the project. Mining equipment selection, including using small bucket sizes for coal mining, has been taken into consideration in the conceptual mine plan. Overall yields are assumed to be 50% to a hard coking coal product at <10% Ash based on existing laboratory work. Washing yield assumptions will be confirmed when the 2017 drilling and sampling programme is completed. Coal from the Nuurstei Open Pit is expected to be supplemented by purchases of raw coal from a nearby mine. This coal has been tested by the Company and has similar hard coking coal characteristics. The Company is in advanced negotiations with the owner of this mine regarding the purchase of this coal and general cooperation. 3 P a g e

4 The Study assumes that a modular 150 tonne per hour wash plant will be established on site. The wash plant will have a modular design that can be moved at the end of Nuurstei s mine life to the Ovoot Coking Coal Project or another satellite development. Bulk samples have been sent for wash plant design. The Company is in preliminary discussions regarding vendor finance for the wash plant, which will be the single largest capital item required. A conceptual mine design was completed for Nuurstei based on the resource model developed by MBGS and included: The development of a concept open cut mine, including the pit shell, strip design, location of ramps, haul-roads, and location of dumps both in-pit and ex-pit, and the location of infrastructure. The development of a mining sequence and mine waste and coal quantity schedules to deliver ROM coal to the CHPP for processing (crushing, then washing) The required equipment and infrastructure to carry out the waste removal, coal mining, and processing tasks to achieve the ROM production. The direct and in-direct operating costs to carry out the waste removal, coal mining, and processing tasks to achieve the washed coal production. The development of a cost model to establish the operating cost on the concept mine. Operating costs are at a preliminary stage and are at +\- 30% level. Transport Logistics Nuurstei sits approximately 420 kilometres along a sealed road to the rail head at Erdenet and approximately 70 kilometres to the north of the proposed Erdenet to Ovoot Railway.The Company has identified a suitable rail siding for stockpiles and wagon loading at Erdenet and has confirmed with the rail operator UBTZ that there is sufficient rail and wagon capacity to carry Nuurstei Coking Coal to the Chinese border at Erlian. It was recently confirmed that China has approved Erlian as a coal border crossing. Noble Group has assisted in providing an analysis of cross border procedures, rail transport costs and costs at Erlian to access internal Chinese rail services. Total current estimated costs to move coal from Nuurstei mine gate using trucks to Erdenet and then rail to China, has been assessed by the Company at approximately US$40 US$45\tonne. This estimated cost could fall to approximately US$32 - $37\tonne when the Erdenet to Ovoot Railway becomes available. 4 P a g e Figure 2: Nuurstei Coking Coal Project proximity to existing rail infrastructure and Moron, capital of the Khuvsgul province in Mongolia s north

5 Coal Quality Observations Coal sampling and analysis undertaken in 2015 and 2016 provided an indicative suite of coal quality parameters showing Nuurstei as having a quality hard coking coal with excellent plastic properties. The 2017 drilling and sampling programme will provide the information required to provide a more definitive coal specification as well as marketing samples for sales negotiations. Noble has 100% of the marketing rights in relation to Nuurstei product. Noble Group has a well established marketing and logistics trading platform between Mongolia and China. Coking Coal exports from Mongolia are now priced against both internal Chinese and international seaborne coking coal price indices. For the purposes of the Study, a long term hard coking coal seaborne price benchmark of US$150 per tonne was used. Noble s Coal Marketing team believes Nuurstei Coking Coal will attract significant demand but until the coal can be branded within China, pricing will be dependent on the domestic-seaborne pricing spread. Over time Noble believes the coal will have a pricing advantage over domestic competitors [on delivered to end user basis]. Risks The key risks identified and requiring further study work and definition for the project are: Resource: there is uncertainty surrounding the location of the sub-crops, seam thickness, and the potential for difficult mining conditions and coal loss brought on by the existence of faults, sills, and dykes if they were to be present. The mitigation for this risk is to carry out more drilling and to continue to validate existing data. This risk has been partially mitigated in the study by applying a 50% confidence factor to all coal outside of the Resource areas. Resource Sterilisation: Given there is uncertainty to the extent of the coal seams within the areas surrounding the concept mine, there is a risk that the location of infrastructure and waste dumps may overly potentially economic coal resource. This risk can be mitigated through further exploration drilling. Coal Quality: there is a limited amount of coal quality data available at the time of this study. Additional drilling and sampling of both cored and open exploration holes is required to develop an improved understanding of the raw quality and the processing and product options. Coal Processing: There is currently only limited information available on the washability of the coal Resource. This risk has been mitigated by adopting an average 50% wash plant yield. Further drilling, coal quality analysis, and process design and simulation is required. Geotechnical: Limited available data and understanding of the geotechnical conditions in the area with respect to open cut mining represents a risk. This does not infer that open cut mining could not be successfully adopted; however a better understanding of the conditions will enable the correct design criteria to be determined for pit, ramp, and dump designs. The mitigation is to carry out geotechnical drilling within the resource area, and to carry out a geotechnical study for key aspects of the excavation and dump design. This is recommended for the next stage of study work. Hydrogeological: Limited available data and understanding of the hydrogeological conditions in the area with respect to open cut mining represents a risk. This does not infer that open cut mining could not be successfully adopted; however a better understanding of the conditions will enable the design criteria to account for the hydrogeological conditions and manage the risk. The mitigation is to carry out a hydrogeological study for the project area. Environmental: There is a risk that environmental factors will adversely impact the open cut project. These may include constraints impacting dump heights, proximity to town developments, dust and noise management, river diversions, and blasting limitations. These aspects will need to be addressed in future study work. 5 P a g e

6 Operational Performance: There is a risk that the skills required to develop and operate an open cut mine will be difficult to source, leading to higher costs or reduced production levels. This could be mitigated through early recruitment and training, recruitment strategies and perhaps using an established, reputable mining contractor to establish the open cut mine. While these risks and uncertainties are typical of all open pit coal mining projects, investors should not make any investment decision based solely on the results of the Study Drilling and Sampling Programme The 2017 Drilling and Sampling Programme has been prepared by MBGS and reviewed by Bluefield Advisory as being appropriate. The objective is to increase the total resource and convert the Inferred Resource to Indicated Resource with regional drilling and through infill and cored holes. A total drilling programme of 10,000 metres is planned with 58 holes, including 18 cored holes. Results of this Programme will be fed back into the geological model and mine plans will be re-run. Additional washability and coal quality data will also be incorporated into a feasibility study prepared for a final investment decision. The 2017 Drilling and Sampling Programme can commence in June 2017, subject to funding availability. Summary and Next Steps The Company is now reviewing the next steps to take the Nuurstei Coking Coal Project forward. The Study along with preliminary logistics analysis suggest an internationally competitive delivered cost onto Chinese rail for a washed hard coking coal based on owner miner assumptions. Given Coking Coal price expectations for the medium term, the Study provides encouragement for the Company to complete feasibility work and firm up operating and capital assumptions. The Company is currently engaged in a discussion with Mongolia based mining contractors on a schedule of rates so that a comparable contractor cost model can be assessed. The Company is also engaged in a discussion with the potential provider of a modular wash plant solution and has been provided with coal sizing and washability data to complete this work. Work has also commenced on formulating an infrastructure budget to support an operation of this scale. The Company has received very preliminary advice that capital expenditure requirements, assuming the use of a mining contractor, maybe in the range of US$20 US$25 million with the modular wash plant being the largest component. The Company is engaged with the wash plant provider regarding the provision of Export Credit backed funding to support this capital investment, as well as the provision of a full externally funded toll treatment solution. Under the Noble Alliance Agreement, Noble had previously offered US$20 million in trade finance and working capital facilities to support the development of the Ovoot Coking Coal Project. Once the commercial assumptions are confirmed Aspire will follow up on this offer of funding to apply to Nuurstei. There will be a requirement for development funding and the Company will look to the equity market and/or a coal pre-sale arrangement to support this. Tithe infill drilling campaign will be completed prior to making a final investment decision and decisions for the balance of debt and equity sourced funding in the latter part of It should be noted that there is no certainty that Aspire will be able to raise the funding for the 2017 Drilling and Sampling Programme or Nuurstei Mine development for the amounts required and as and when needed. It is also possible that the funding may be dilutive to or otherwise affect the value of Aspire s existing shares. 6 P a g e

7 The Company is considering acquiring Noble s beneficial 45% interest in the Nuurstei Coking Coal Project. The time limit for executing the option has been extended to June The acquisition cost is US$1 million and a royalty. The Company has had a preliminary discussion with Noble regarding including the option fee in an overall funding plan with Noble. The application for the conversion to a mining license is currently taking its course and is expected to be received in May Given a successful 2017 Drilling and Sampling Programme and availability of funding as and when needed, it is possible for a 2018 start to mining operations. Nuurstei can be viewed as a starter project which assists with the development of Aspire s much larger and 100% owned Ovoot Coking Coal Project which is 160 kilometres further to the west. It also assists with developing logistical capabilities and market development for coking coals from northern Mongolia. Aspire s Managing Director, David Paull, said that the Nuurstei Coking Coal Project provides a potential path to production and associated rail connectivity and a long term cashflow source while the Company continues to evaluate the world class Ovoot Coking Coal Project. Nuurstei also provides the opportunity to generate useful operational and logistics knowledge to assist in the development of the much larger Ovoot project. Nuurstei could also benefit through future access to the planned Northern Rail Line just 70 kilometres to the south.. Ends. Forward-looking statements: This announcement contains certain forward-looking statements. The words anticipate, believe, expect, project, forecast, estimate, likely, intend, should, could, may, target, plan, consider, foresee, aim, will and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on capital expenditure, operating expenditure and financial position and performance are also forward-looking statements. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are outside the control of Aspire. ABOUT ASPIRE MINING LIMITED Aspire Mining Limited is listed on the ASX (ASX: AKM) and is the largest coal tenement holder in Mongolia s Northern provinces and is focused on identifying, exploring and developing quality coking coal assets. Aspire currently owns a 50% interest in and is the operator of the Ekhgoviin Chuluu Joint Venture (ECJV), and has an option to increase its ownership to 100% of the ECJV. The ECJV owns a 90% interest in the Nuurstei Coking Coal Project (Nuurstei), and following a successful 2014 exploration program conducted additional exploration work through 2015 with the aim of identifying JORC 2012 coal resources. Nuurstei could commence production as a road based operation and access the new Erdenet to Ovoot railway as early as two years from the commencement of rail construction. Aspire is also the owner of the world class Ovoot Coking Coal Project (Ovoot) which is the second largest coking coal project by reserves in Mongolia. The Ovoot project development is dependent on the construction of the Erdenet to Ovoot railway which is being progressed by Northern Railways LLC (Northern Railways). Northern Railways has been granted a rail concession in August 2015 and is progressing the negotiations and completion of a bankable feasibility study, funding, EPC contract, applications for licences, permits and approvals to commence railway construction. Production from the Ovoot project can coincide with the commissioning of the Erdenet to Ovoot railway. About Ekhgoviin Chuluu Joint Venture The Ekhgoviin Chuluu Joint Venture (ECJV) is currently a 50/50 joint venture arrangement between Aspire and Singapore listed Noble Group (SGX: N21, Noble). Aspire is the operator of the ECJV and has an option to purchase Noble s 50% interest, exercisable by March The ECJV owns a 90% interest in its flagship Nuurstei Coking Coal Project (Nuurstei) located in northern Mongolia and a 100% interest in the Erdenebulag Coal Project located in the South Gobi region of Mongolia. 7 P a g e

8 The ECJV is assessing Nuurstei s development potential and has commenced the process to apply for a Mining License over the deposit. Nuurstei s close proximity to existing infrastructure (town, road, rail and services) provides an excellent opportunity to assess the economics of a road-based operation, prior to the completion of the Erdenet to Ovoot railway construction. Access to a paved road from Moron to Erdenet is now available and Aspire owns land at Erdenet that could be used as a coal stockpile and train load-out area. Competent Person Statement Conceptual Mining Study The information in this report relating to the Concept Study Mine Plan is based on information compiled by Mr Jim Mahood who is a full time employee of Bluefield Advisory. Mr Mahood is a qualified Mining Engineer with over thirty years coal industry experience, is a member of the Australian Institute of Mining and Metallurgy (211103), and who has no conflict of interest with Aspire Mining Limited. Mr Mahood has the relevant experience in relation to coal mineralisation being reported to qualify as a Competent Person as defined in the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (The JORC Code 2102 Edition). The Concept Study Mine Plan coal quantities are derived from coal Resource and Project information provided by Aspire Mining Limited and MBGS, and as such Bluefield Advisory makes no guarantees in regard to the coal Resource. Where and if the Concept Study refers to coal quantities, these quantities are not JORC compliant Reserves. Mr Mahood consents to the inclusion in this report of the matters based on the information, in the form in which it appears. Competent Persons Statement Coal Resources The information in this report that relates to Reporting of Exploration Results and Coal Resources at Nuurstei Project, is based on information compiled under the supervision of, and reviewed by, the Competent Person, Mr Parbury, who is a full time employee of McElroy Bryan Geological Services, is a Member of the Australasian Institute of Mining and Metallurgy (101430) and who has no conflict of interest with Aspire Mining Limited. The reporting of Coal Resources for 13580X presented in this report has been carried out in accordance with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, The JORC Code 2012 Edition prepared by the Joint Ore Reserves Committee of the Australasian Institute of Mining and Metallurgy, Australian Institute of Geoscientists and Minerals Council of Australia (JORC). The report of the estimate was based on geological data results as of 31 December 2015 and were released in the ASX Announcement dated 13 April There has been no additional exploration since that time and there has also been no change in the reported Resources since then. Mr Parbury has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 JORC Code. Mr Parbury consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. For more information contact: Corporate & Investor Relations David Paull Aspire Mining Ltd Managing Director info@aspiremininglimited.com. 8 P a g e