25 October 2017 IP SURVEY CONFIRMS MARS PORPHYRY CU AU POTENTIAL EVIDENCE FOR A LARGE NEW DISCOVERY: Induced Polarisation (IP) survey data from the Mars Cu Au target has a chargeability anomaly consistent with the top of a mineralised porphyry system located approx. 100 150m below surface. Strong surface copper and gold assays in both soil and rock chips (up to 7.4% Copper and 1.8 g/t Gold), lie directly above the IP anomaly over a 2km strike length, providing further evidence for a large new mineralised system. The Mars prospect lies 6km to the WNW of the Zackly deposit along a mineralised structural corridor which may host several buried porphyry Copper Gold deposits including under Mars and Zackly. The structural corridor is a high priority for exploration. Page 1
MARS IP SURVEY RESULTS PolarX Limited ( PolarX or the Company ) has received results from an Induced Polarisation ( IP ) survey conducted at the Mars Prospect located within its 100% owned Stellar Project, Alaska (Figure 1). Mars is characterised by co incident copper, gold, molybdenum and silver anomalism in broadly spaced soil samples over a large area of approximately 2,000m x 1,500m. Up to 7.4% Copper and 1.8g/t Gold is evident in rock chip samples (see Table A for a full list of rock chip sample data). PolarX conducted an initial IP survey over the Mars prospect in late August 2017. Three lines of data and one short tie line were collected using a pole dipole array with 100m spaced electrodes. Inverted sections and digital data were received last week. The IP results (refer Figures 2 and 3) show a buried chargeability anomaly located 100 150m below the surface geochemical anomalism. This is consistent with a buried, mineralised porphyry Cu Au system. The full extent of the chargeability anomaly is not yet known as the anomalism extends to the edge of the 800m wide survey area which lies within the 2km long soil anomaly further IP surveying will be undertaken to map out the full extent of the IP anomaly. The Mar prospect lies 6km to the WNW of the Zackly Skarn where strong evidence for a buried porphyry system was identified in recently completed drilling, assay results for which are still pending (refer to ASX released 3 October 2017). Geological evidence indicates a WNW structural corridor extending between Mars and Zackly. This potentially hosts multiple buried porphyry Cu Au systems. This corridor will now be prioritised for further exploration, including additional IP surveys, gravity surveys and re processing of aeromagnetic data leading to extensive drilling. Figure 1. WNW trending structural corridor between Mars and Zackly plotted on an image of aeromagnetic data draped on digital terrain Page 2
Figure 2. IP survey data showing inverted sections and chargeability isosurfaces draped to 3D topography and imagery. View looking to the southwest. Figure 3. IP anomaly combined with soil and rock-chip anomalies draped on 3D topography Page 3
ZACKLY ASSAY RESULTS PolarX expects to receive assays from the first 5 holes drilled into the Zackly deposit during November. Visual indications (reported on 3 rd October 2017) were extremely encouraging. Assay results will be announced once interpreted. An additional batch of assay results for the remaining holes is anticipated in December 2017. Visual interpretation of the high grade Zackly Skarn deposit has shown strong evidence that it lies within a much larger porphyry Cu Au system. It is intended that the Zackly deposit be re modelled and a new JORC resource estimate will be published in Q1 2018. For and on behalf of the Board. For further information, please contact the Company directly on +61 8 9226 1356 The Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code ) sets out minimum standards, recommendations and guidelines for Public Reporting in Australasia of Exploration Results, Mineral Resources and Ore Reserves. The information contained in this announcement has been presented in accordance with the JORC Code. Information in this report relating to Exploration results, Mineral Resources or Ore Reserves is based on information compiled by Dr Frazer Tabeart (an employee of PolarX Limited), who is a member of The Australian Institute of Geoscientists. Dr Tabeart has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person under the 2012 Edition of the Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves. Dr Tabeart consents to the inclusion of the data in the form and context in which it appears. Forward Looking Statements: Any forward looking information contained in this news release is made as of the date of this news release. Except as required under applicable securities legislation, PolarX does not intend, and does not assume any obligation, to update this forward looking information. Any forward looking information contained in this news release is based on numerous assumptions and is subject to all of the risks and uncertainties inherent in the Company s business, including risks inherent in resource exploration and development. As a result, actual results may vary materially from those described in the forward looking information. Readers are cautioned not to place undue reliance on forward looking information due to the inherent uncertainty thereof. Page 4
TABLE A: ROCK CHIP GEOCHEMICAL SAMPLING DATA AT MARS SampleID Latitude Longitude Sample Comments Field Lithology Au_ppm Ag_ppm Cu_ppm 622311 63.237015 146.838131 OutcropGrab Gabbro 0.183 6.7 2,650 622312 63.23803 146.836469 TalusHighGrade Gabbro 0.004 0.09 62 622313 63.239305 146.833221 TalusHighGrade Basalt 0.368 4.8 16,450 622314 63.238419 146.832196 TalusGrab Andesite 0.005 0.11 142 622315 63.239618 146.831703 Unknown Basalt 0.019 0.28 349 622316 63.239415 146.829873 TalusGrab Gouge 0.016 0.12 251 622317 63.239369 146.829654 OutcropGrab Diorite 0.022 0.19 407 622318 63.239263 146.829201 OutcropGrab Diorite 0.081 0.16 155 622323 63.237191 146.84121 OutcropGrab Andesite 1.005 31.7 12,500 622324 63.237216 146.841383 OutcropHighGrade QuartzVein 0.315 7.93 1,220 622325 63.237181 146.840441 OutcropGrab Sedimentary 0.015 0.2 107 622422 63.236636 146.832618 FloatHighGrade Gabbro 0.042 0.43 1,500 622424 63.239588 146.83044 OutcropChip Andesite 0.027 0.3 964 622431 63.236462 146.83757 SubCropHighGrade Breccia 0.019 0.27 366 622608 63.236946 146.83983 OutcropGrab 0.043 0.37 536 622609 63.237092 146.840226 TalusGrab Mafic 0.512 21.6 7,690 622610 63.237114 146.840071 TalusHighGrade Andesite 0.25 7.53 3,960 626011 63.239885 146.83851 OutcropGrab Andesite 0.003 0.19 172.5 626013 63.240638 146.835826 FloatHighGrade Andesite 0.029 7.75 34,800 626014 63.240799 146.835853 OutcropGrab Andesite 0.036 13.2 74,400 626015 63.240789 146.835281 OutcropChip Andesite 0.021 5.67 44,900 626143 63.236796 146.839265 FloatHighGrade diorite 0.099 0.67 558 626145 63.237456 146.841223 OutcropHighGrade Diorite 0.049 0.63 285 626146 63.23716 146.8412 OutcropHighGrade diorite 1.08 46.2 16,600 626147 63.237225 146.841759 OutcropChipChannel MassiveQuartz 0.01 0.33 188 626152 63.23557 146.838409 FloatHighGrade diorite 0.03 0.37 1,275 626164 63.229434 146.842321 OutcropChip 0.005 0.2 115 626166 63.229499 146.841025 OutcropChip 0.037 0.24 104 626172 63.236227 146.831669 FloatGrab Diorite 0.207 2.08 5,140 626392 63.236856 146.837203 FloatHighGrade Gossan 0.478 5.17 756 626393 63.236852 146.837518 FloatGrab Gossan 0.012 0.18 407 626394 63.237322 146.837833 OutcropGrab Gossan 0.153 3.07 412 626395 63.237617 146.8374 OutcropChannel Gossan 0.025 0.89 226 626396 63.238143 146.837186 OutcropGrab Gossan 1.785 7.16 342 626397 63.238471 146.836334 FloatGrab QuartzBreccia 0.321 15.2 9,460 626398 63.239301 146.838338 OutcropChannel MassiveQuartz 0.017 0.18 195.5 626399 63.239386 146.838137 OutcropGrab Andesite 0.25 6.76 44,500 Page 5
JORC CODE 2012 EDITION TABLE 1 REPORT FOR MARS PROSPECT Section 1: Sampling Techniques and Data (Criteria in this section applies to all succeeding sections) CRITERIA JORC CODE EXPLANATION COMMENTARY SAMPLING TECHNIQUES DRILLING 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 downhole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling. 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 1m samples from which 3kg was pulverised to produce a 30g 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, facesampling bit or other type, whether core is oriented and if so, by what method, etc.). Prior to 2010 (when Millrock Resources Inc. acquired the project) exploration activities were confined to the Zackly Cu-Au skarn system on the Stellar Project. Multiple soil, trenching, geophysical and drilling programs have been completed at the Zackly Project between 1980 and 1994. All programs employed different methodologies from program to program. Previous work programs appear to have been undertaken in accordance with industry standard practices at the time they were implemented. Since 2010, Millrock Resources Inc. have undertaken stream sediment (56 samples), rock chip (187 samples) and soil (340 samples) sampling over the entire Stellar Project area using industry standard practices for collection, sample preparation and analytical procedures. Soil samples were collected on a notional 500m spaced grid due to the large nature of the project and the rugged terrain. Rock-chip samples have been collected at multiple locations, with the nature of the sample (e.g. random grab vs talus vs high grade outcrop sampling etc) noted on sample data forms. IP surveying was undertaken in August 2017 at Zackly, Mars and Senator prospects. The IP survey comprised a DC resistivity and IP survey using a DIAS32 system with 2 x 3.6kW transmitters coupled to produce 7.2kW input at 0.125Hz. Data was read using 100m spaced electrodes on a pole-dipole array, with local infill to 50m electrode spacing on certain lines. Apparent resistivity, apparent chargeability and inversion models were supplied to PolarX in mid-october in digital format. No drilling has been completed at the Mars prospect. No drilling to date at Mars Page 6
DRILL SAMPLE RECOVERY 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 LOGGING 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. The total length and percentage of the relevant intersections logged SUB-SAMPLING TECHNIQUES AND SAMPLE PREPARATION QUALITY OF ASSAY DATA AND LABORATORY TESTS If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc. and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. 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 (e.g. standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (i.e. lack of bias) and precision have been established No drilling to date at Mars No drilling to date at Mars Routine resampling and/or duplicate sample analysis was not undertaken for the Millrock surface sampling program between 2010 and 2012. Soil samples were collected by Millrock and are believed to be representative of the soils at each sample site. The average soil sample weighed 0.5kg. Rock chip samples were taken as representative grab samples at each outcrop, at specific areas identified as high grade and as random talus chip sampling. The usual interval for chip sampling is 1.54m, unless there is a change in lithology. Stream sediment samples were collected in low velocity depositional environments, and tools were cleaned between samples to minimize contamination. Minimum sample weight was 2kg. Surface samples taken by Millrock were analysed by ALS Chemex laboratories in Fairbanks, Alaska, an ISO 9001:2000 accredited laboratory. Page 7
VERIFICATION OF SAMPLING AND ASSAYING LOCATION OF DATA POINTS DATA SPACING AND DISTRIBUTION ORIENTATION OF DATA IN RELATION TO GEOLOGICAL STRUCTURE SAMPLE SECURITY AUDITS OR REVIEWS The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. 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 drillholes (collar and down- hole 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. 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 measures taken to ensure sample security The results of any audits or reviews of sampling techniques and data Digital data has been acquired from Millrock and loaded into the Company s database via a digital data validation procedure. Sample locations were recorded using handheld GPS and are believed to be accurate to +/-10m Soil samples have been collected on a nominal 500m spaced grid. This is suitable for the broad definition of anomalous areas, but not for the delineation of individual deposits. No sample compositing has been documented. The 500m x 500m soil grid is unlikely to have introduced any sampling bias. In 2010, all stream sediment and soil samples collected by Millrock were stored in a secure storage facility at the Maclaren River Lodge and transported to ALS Chemex laboratories in Fairbanks, Alaska by Millrock personnel. In 2012, all samples collected by Millrock were stored in a secure storage facility at Millrock s office in Anchorage, Alaska and transported to ALS Chemex laboratories in Anchorage by ALS personnel. The Company is unaware of any sampling audits adopted previously. Page 8
Section 2: Reporting of Exploration Results (Criteria listed in section 1 also apply to this section) CRITERIA JORC CODE EXPLANATION COMMENTARY MINERAL TENEMENT AND LAND TENURE STATUS EXPLORATION DONE BY OTHER PARTIES 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, wilderness or national park and environmental settings. 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 Acknowledgment and appraisal of exploration by other parties. GEOLOGY Deposit type, geological setting and style of mineralisation DRILLHOLE INFORMATION DATA AGGREGATION METHODS A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drillholes: easting and northing of the drillhole collar elevation or RL (Reduced Level elevation above sea level in metres) of the drillhole collar dip and azimuth of the hole downhole length and interception depth 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 (e.g. 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 The Stellar Project comprises 181 contiguous State Mining Claims in the Talkeetna District of Alaska. The claims cover a total area of 28,960 acres (11,720 hectares), and are registered to Vista Minerals Alaska Inc a wholly owned subsidiary of PolarX Limited. The Caribou Dome Project comprises 196 contiguous State Mining Claims covering an area of 25,560 acres (10,344 hectares) in the Talkeetna District of Alaska. The Company controls 80% of the Claims via option agreements with Hatcher Resources Inc. and SV Metals LP. While the Claims are in good standing, additional permits/licenses may be required to undertake specific (generally grounddisturbing) activities such as drilling and underground development. A brief history of previous exploration was released to the market on 24 th May 2017. A brief description of the deposit type, geological setting and style of mineralisation is included in the body of this announcement. Not applicable as no drilling data are reported in this release. Not applicable this report only provides qualitative assessments of drilling observations to date and does not include any information from assays as these have not yet been received. Page 9
examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated RELATIONSHIP BETWEEN MINERALISATION These relationships are particularly important in the reporting of Exploration Results. WIDTHS AND INTERCEPT LENGTHS If the geometry of the mineralisation with respect to the drillhole angle is known, its nature should be reported. If it is not known and only the downhole lengths are reported, there should be a clear statement to this effect (eg, down hole length, true width not known ). DIAGRAMS 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 drillhole collar locations and appropriate sectional views BALANCED REPORTING OTHER SUBSTANTIVE EXPLORATION DATA 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 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. 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. No reporting on drill data in this report. Summary plans and oblique representations of 3D models are included in this announcement. This report includes a table listing all assay results from rock-chip sampling undertaken over the Mars prospect. This report shows the chargeability inversion model results for the Mars prospect in their entirety. Two lines of IP surveying were undertaken to the west of the Zackly Main Skarn in late 2016 by Vista Minerals Pty Ltd. Additional IP surveying was undertaken in August 2017 at Zackly, Mars and Senator prospects. The IP survey comprised a DC resistivity and IP survey using a DIAS32 system read using 100m spaced electrodes on a pole-dipole array, with local infill to 50m electrode spacing on certain lines. Apparent resistivity, apparent chargeability and inversion models were supplied to PolarX in mid-october in digital format. Iso-surfaces depicting IP chargeability shells was produced using AranzGeo Leapfrog software. A suitable work program will be developed following more comprehensive review, compilation and interpretation of previously acquired data. Diagrams highlighting potential drilling target areas are included in this announcement. Page 10