ASX Announcement ASX Code: MAR 10 April 2018

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1 ASX Announcement ASX Code: MAR 10 April 2018 Significant Exploration Results - Lorena Gold Project Drill hole LMR110 increases the potential for a resource extension at depth HIGHLIGHTS: Drillhole LMR108 reports 3.81g/t Au from 35m and 12.86g/t Au from 42m; Drillhole LMR110 reports 11.32g/t Au from 48m, which is approximately 15m to 20m underneath the bottom of the current open cut design; Importantly, drillhole LMR110 intersected the projected, up-dip position of the deep mineralisation previously intersected in LMRD092 which reported 12.39g/t Au from 223m and 1.48g/t Au from 251m. Drillhole LMR110 provides additional information to support the potential for increased resources from a south east plunging shoot below the open cut leading to a possible extension of the project mine life via an underground operation; The success of LMR110 has now warranted the need for a 3D geological interpretation of the resource, which incorporates the recent results, prior to the next drill program to test the possible depth extension; The Company has a 70% joint venture interest in any resources below the open cut. Malachite Resources Limited (ASX Code: MAR) ( Malachite or the Company ) is pleased to advise the drilling recently completed at the Lorena Gold Project has intersected some significant results which now warrant further exploration to potentially increase the resources at depth. To maximise gold production from the initial open cut operation the Lorena joint venture partners planned and completed a reverse circulation drilling program. The program completed 17 holes for a total of 2,190m of reverse circulation drilling. The drilling was designed to test conceptual targets for gold mineralisation; in shears parallel to the main A-lode that is currently being mined, A-lode mineralisation below the current pit, up dip projections of high-grade mineralisation and potential extensions to A and B-lodes to the north-west. A secondary aim was to provide additional information to update the project reserve block model in order to review the final pit design prior to the completion of mining of the open cut. Assays have been received for the first ten holes LMR107 to LMR116. The drillhole locations for these ten holes are shown in Figure 1 and the drilling details and assays are shown in Table 1. Malachite Resources Limited ABN Level 4, 283 George Street, Sydney NSW 2000 P O Box R1295, Royal Exchange NSW 1225 Tel: (02) Page 1 of 7

2 Figure 2 shows a long-section showing the southern end of the A-lode, highlighting the intersections in LMR108 and LMR110. Figure 2 also shows LMRD092, which was drilled in 2012 (announced to the ASX on 19 April 2012) and reported 12.39g/t Au from 223m and 1.48g/t Au from 251m. LMR108 was drilled into a sparsely drilled portion of the A-lode, where an interpreted fault offsets the A-lode, to the east. This drillhole confirms this offset and demonstrates the high-grade gold mineralisation within the block model at the southern end of the A-lode. A review of the pit design will now be undertaken concentrating on the south east corner of the open cut to possibly extract further mineralisation. LMR110 was drilled targeting the resource below the current pit. The reported gold intersection is approximately 15m to 20m underneath the bottom of the current open cut design. LMR110 intersected the projected, up-dip position of the deep mineralisation intersected in LMRD092; 12.39g/t Au from 223m and 1.48g/t Au from 251m. Although the mineralisation is of A-lode alteration style and grade, it is difficult to confirm the continuity of mineralisation due to the distance between the two drillholes of 190m. It will be a priority of the Lorena Joint Venture to complete further drilling in this area once a further 3D geological interpretation is undertaken. It is anticipated that the 3D geological modelling will be undertaken in the current quarter. Drillholes LMR112 to LMR116, targeting mineralisation under the main A-lode, only reported narrow gold intersections. The Lorena joint venture partners are awaiting assays for the remaining drill holes in the program which will be reported at the earliest opportunity. HOLE ID ML ID MGA Z54 East MGA Z54 North MGA Z54 RL Dip Azi EOH (m) Intercept Depth: From (m) Intercept Depth: To (m) Comment LMR107 ML No significant assays LMR108 ML g/t Au LMR g/t Au LMR g/t Au LMR109 ML g/t Au LMR110 ML g/t Au LMR g/t Au LMR111 ML No significant assays LMR112 ML g/t Au LMR113 ML g/t Au LMR114 ML g/t Au LMR g/t Au LMR115 ML Failed pre-collar LMR116 ML g/t Au Intercepts calculated using a 0.5g/t Au cut-off and minimum dilution of 3m Table 1 - Lorena Gold Project - March Drilling Summary LMR107 to LMR116 Page 2 of 7

3 Figure 1: Drillhole Locations for the Lorena Gold Project March 2018 program Page 3 of 7

4 Figure 2: Long Section at Lorena Gold Project Page 4 of 7

5 About the Lorena Gold Project The Lorena Gold Project has commenced production and it is expected that it will produce around 30,000 to 35,000 ozs of recovered gold in the eighteen months of production from an open cut operation at a forecast operating cost of around A$1000 per gold ounce (includes Malachite s share of plant and preliminary project capital ). Malachite has a 55% joint venture interest in the Lorena Gold Project following the commissioning of the processing plant. Malachite believes that the Lorena Gold Project has potential for resource extensions at depth. Proving up these additional resources will require confirmation by drilling which Malachite proposes to undertake at the earliest opportunity subject to sufficient funding being available. Malachite will have a 70% joint venture interest in any resource extensions at depth. The Company also believes that there are considerable regional opportunities which it will be able to pursue once the plant is operating to enhance the commercial return from project. 1 JORC TABLE 1 Section 1: Sampling Techniques and Data Criteria Sampling techniques Drilling techniques Drill sample recovery Explanation Reverse Circulation (RC) drill hole sampling was undertaken using a 25% split being collected from a cyclone riffle splitter on the rig, every metre. Composites combining 2 one-metre samples were made up for areas with no mineralisation or alteration present. Reverse Circulation drilling with a face sampling hammer was used. Sample recovery for the drilling program was good, although many holes had wet samples reporting to the cyclone. Logging One-metre chips are sieved through a kitchen sieve with the fines being collected in 100gm packets and the oversize visually logged by geologist and sample retained in plastic trays for later review. Chinova records geological information including lithological, alteration, mineralisation in RC drill logs. Magnetic susceptibility measurements are completed on each one-metre sample and pxrf readings are also measured when the sample is dry. The pxrf results are used to discriminate mineralised zones where arsenic and bismuth values are a good indicators of potential gold mineralisation. Sub-sampling Techniques and sample preparation Quality of assay data and laboratory tests Verification of sampling and RC chips are split from the cyclone to obtain approximately 25% sub sample around 4-5kg of material. A field duplicate, blank or certified reference standard is included every 10 samples. Samples are despatched with a maximum of 100 samples in each batch. All available QAQC data has been assessed. Chinova drilling has considerable QAQC data which includes; blanks, duplicates, standard reference material and check samples. Previous regular internal reviews by an Ivanhoe QAQC expert have ensured regular monitoring, correction and continuous improvement in sampling and assaying quality. Samples were dispatched using a security tag system and sent to ALS Mt Isa for processing. All samples were analysed for Ag, As, Bi, Cu, Co, Fe and S by ICP-AES41 with Au assayed as a 50gm fire assay by method Au-AA26. Over-range assays for As (1%) and Cu (0.5%) are reassayed by method OG-61 by ALS Townsville. All assays reporting greater than 5g/t Au are routinely collected and assayed as a group by a screen fire method; Au-SCR22AA. The information from this assaying method can be used to calculate the amount of coarse gold (>70microns) reporting from samples. These assays are not available, at this time. Assay data is imported electronically from a file sent from the laboratory into acquire database.

6 assaying Location of data points Data spacing and distribution Orientation of data in relation to geological structure Sample security Audits or reviews Assay priorities are assigned by assay method if different methods were used for the same interval. Best assay is assigned the highest priority. Au duplicates and repeats are not averaged to produce the best assay; this conforms to standard industry practice. All certified reference standards reported within a 2-standard deviation tolerance. The blank standard composed of Mt Dore granite reported no anomalous assays and the duplicate samples all report within accepted limits. All collar locations were surveyed in by the Lorena Mine surveyor. Drill hole data was composited to 2m intervals for zones with limited alteration or sulphide mineralisation. One metre samples were assayed for areas of interest. To intersect the main zone drillhole s azimuth was orientated to the ENE Two holes designed to intersect potential mineralisation along the NE Fault and the NW Fault were drilled to the SW, parallel to the assumed SW dip. This was done because the optimum position to drill was not accessible, within the pit. All samples are dispatched with tamper proof seals and locks and only opened when supervised by the laboratory manager along with the dispatch sheet that is issued separately. Chinova sample security processes go beyond normal Australian exploration practice. The ALS Mt Isa lab was audited in March 2018 by Chinova staff and the ALS Townsville lab was also audited by Chinova staff, in December The competent person made two visits to the Lorena site during the drilling campaign and assisted with the sampling procedure and despatch of samples to the ALS Mt Isa lab. Section 2: Reporting of Exploration Results Criteria Explanation Mineral tenement and land tenure status Exploration done by other parties The drilling took place on two ML s owned by Volga Elderberry Pty Ltd a subsidiary of Malachite Resources Pty Ltd listed on the ASX. The two ML s are ML90192 and ML Chinova Resources is part of the Lorena Joint Venture, currently mining and processing gold on the two ML s. Since 1985 a number of companies have explored and drilled at the Lorena Mine. Chinova Resources managed the RC drilling program for the Lorena Joint Venture. Geology Mineralisation at Lorena is located in a SW steeply dipping Fault system, composed of silicified and brecciated shale and siltstone of the Toole Creek Volcanic Formation. The Toole Creek Volcanic Formation is a carbonaceous siltstone and shale package with numerous intrusive, doleritic dykes and or sills. Dolerite is found in the footwall of both the A-lode and B-lode gold mineralisation. To the south, calc-silicate units ascribed to the Corella Formation, striking approximately East-West, dip about 40 degrees to the south. Gold mineralisation is associated with arsenopyrite, minor chalcopyrite and pyrite and bismuth minerals in a brecciated silicified carbonate rich zone. Pyrite is more commonly found in the footwall Drill hole Information Data aggregation methods All holes were drilled by reverse circulation using a face sampling hammer. All hole collars were surveyed by the Lorena Mine Surveyor. Downhole reflex gyro was used to track the inclination and azimuth of all holes. The initial AA gm fire assay was used in calculating intercepts. Exploration intercept reports for gold were by weighted averaged over intervals above 0.5g/t Au. A maximum dilution factor of 3m was applied. Page 6

7 Relationship No comment is made on True thickness in this report and all intercepts are reported as between mineralisation downhole intervals. widths and intercept lengths Diagrams A map (Figure 1) and a long-section (Figure 2) is presented to show the relationship of the mineralised intervals in LMR108, LMR110 and the previous intersection in LMRD092. Balanced reporting Exploration results only, are presented in this report. Other substantive exploration data No other substantive information is presented in this report. Mining at Lorena along the A-lode is continuing. Further work Further work will concentrate on the depth potential of extensions of the A-lode to the south east and confirming the connection between LMR110 and LMRD092. The information in this report that relates to exploration results is based on information compiled by Mark McGeough, a Competent Person who is a Fellow of the Australasian Institute of Mining and Metallurgy, and a full time employee as General Manager Geology of Chinova Resources Pty Ltd. Chinova Resources is a joint venture participant in the Lorena Gold Project. Mr McGeough has sufficient experience that is relevant to the style of mineralisation and the type of Exploration Results under consideration and to the activity which he has undertaken to qualify as a Competent Person as defined in the 2012 edition of the 'Australasian Code for the Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mark McGeough consents to the inclusion in the report of the matters based on his information on the form and context in which it appears. Page 7