28 JULY 2016 ASX ANNOUNCEMENT ACTIVITIES AND CASHFLOW REPORT FOR THE MONTH OF JUNE 2016 Global Fortune Investment Limited (ASX: GFI or the Company ) is pleased to provide its monthly activities report and cash flow report for the month of June 2016 in accordance with the ASX Admission Confirmation Letter dated 1 February 2016. FINANCIAL HIGHLIGHTS At 30 June 2016, total cash at bank was $2.9M. CORPORATE HIGHLIGHTS Consistent with the previous month, for the month of June 2016, the Company continued to grow sales from the distribution of Infant Formula to clients generating sales before costs of $847,000. SHENZHEN YUHUA XINNONG RESOURCES MANAGEMENT CO LTD ( SYX ) As at the date of this report, no activity has been initiated with SYX. EXPLORATION ACTIVITIES HORSE ROCK PROJECT, WESTERN AUSTRALIA (100%) Figure (1) During the month of June, a field mapping and sampling trip was completed at the Company s Horse Rock Project, Western Australia. The aim of the field trip was: 1. Assess the fertility of potential source intrusions which may contain Gold or Base metal mineralisation 2. Sample possible source rocks within the project area 3. Sample Soil near old workings 4. Develop relationships with local pastoralists 5. Create an accurate track log for future work programs In order to achieve these objectives several days were spent assessing access, meeting with the station owners, assessing the geology in the field and then undertaking a number of soil transects and rock chippings across key geological features and units. Global Fortune Investment Limited ABN:21 149 001 347 ASX:GFI Level 36, Gateway, 1 Macquarie Place Sydney NSW 2000 T: +61 2 8075 4733 F: +61 2 8075 4550 W: www.gfinvest.com.au
Figure (1) Tenement Map showing new applications (ELA31/1121 and ELA31/1122) EXPLORATION ACTIVITIES Geology The objective of the program was to evaluate high priority targets and collect orientation surface measurements. The high priorities targets were derived from historical soil anomalies, magnetic structural interpretations and historical workings. In total 40 soil samples and 33 rock chips samples were collected and submitted for analysis. Results have not yet been returned form the laboratory. Sample location details are provided in Figures 1 3 and Appendix 1 and 2. The high magnetic feature was hypothesised to be either an anticline or intrusion. From field observations, the magnetic high was discovered to be granite cross cut with quartz veins and enriched in oxidised sulphides. Several samples were taken from this area to see if Gold were to be associated with the sulphides. Upon visiting historical workings it was apparent these workings were across a sheer zone. Altered mafic units were observed looking into the shaft void suggesting these shear zoned units were a mineralising target for early prospectors. Soil samples were taken from East West from the old working to indicate the legacy gold can create in soil. Rock chips from varying units were taken from the old workings to help identify the host unit. To the north of this working lay several quartz blows in multiple successions. These quartz blows were rich in sulphides to which some were relatively fresh and unaltered. Rock chip samples of the quartz blows were collected from each location. Historical rock chips in the north of the tenement indicated a content of 1.98g/t Au. Visiting the region, quartz and silicified blows dominated the outcrops, displaying sections of disseminated sulphides and weathered carbonate within the quartz. Several rock chip samples of the silicified bedrock and quartz blows were taken from this section for assaying. Soil anomalies adjacent to the Yarri battery suggested high gold mineralisation. Based on field observations, the anomalies are likely to have been due to contamination from the battery and not a true reading of the soil. 2
With this in mind, no soil samples were taken from this location. A rock chip sample of granite was taken from nearby as this will not be contaminated. To the mid west of the tenement; a soil sample transect was undertaken across an old historic working. The historical workings in this region were observed to focus on a shallow horizontal horizon. Soil samples were undertaken in an identical manner to as mentioned above in an East West direction. Rock chips were also taken from the dumps created from the historic workings. Rock chip samples taken to the mid east of the tenement were taken from outcrops of quartz blows mottled with carbonate and oxidised sulphides. Further scouting of the region showed more workings on top of the radio hill to the central south of the tenement. Several rock chips samples were taken from this location of surrounding Geology, although no obvious host units were apparent. Sampling Bulk soil samples (2 3 kg) were collected across prospective areas with old workings at 10 20meter intervals in an East West striking transect. Bulk samples were sieved through 200 µm sieves upon return to Perth after being dried. Rock chips were collected at outcrops of interest and 2 3 kg samples were broken off outcrop and put into numbered calico bags. Sample locations were taken with a Garmin hand held GPS and locations were in GDA1994, MGA zone 51 UTM format. Sample descriptions and locations were recorded in a field notebook. Sample locations and descriptions were entered into an excel spread sheet and the track log from the GPS was downloaded. No field standards or duplicates were collected for the purposes of this program. Results Samples were dispatched to Intertek Genalysis upon arrival back in Perth. Contact Information Intertek Genalysis 15 Davidson Street Maddington WA 6109 Frazer Fallens Business Development Manager 08 9251 8100 Rock chip samples were submitted for Li borate fusion / XRF (14 element) and Four Acid Digest / ICP MS (48 elements) and Fire Assay ICP MS (Au, Pt, Pd). The rock chip samples will be analysed by the following codes: LITH/204X & LITH/205X Soil samples were submitted for Pb collection fire assay (Au, Pt, Pd) and Four Acid Digestion / ICP MS (48 elements). The soil samples will be analysed by the following codes: FA25/MS & 4A/OM48 Results are currently pending and should be received early August 2016. 3
For personal use only Figure (2) Sample Location Plan on Satellite Photo 4
For personal use only Figure (3) Sample Location Plan on Airborne Magnetic Image 5
Figure (4) Sample Location Plan on Fact Geology 6
TENEMENT SUMMARY During June 2016 a Compulsory Partial Reduction was required for E31/859. The reduction required 8 blocks to be dropped from the existing 21 block tenement (remaining 15 blocks). The least prospective areas were selected for the reduction. Tenement Status Current Holder Area Grant Expiry (Blocks) E31/00859 Granted Global Fortune Investments Limited 15 15 07 10 14 07 20 E31/00887 Granted Global Fortune Investments Limited 14 15 02 11 14 02 21 E31/01121 Application Global Fortune Investments Limited 52 Pending N/A E31/01122 Application Global Fortune Investments Limited 52 Pending N/A For further information, please contact: Corporate matters: Eric Yuan Lin Managing Director, CEO T: +61 2 8075 4733 E: admin@gfinvest.com.au Technical matters: Peter Langworthy OMNI GeoX Pty. Ltd. T: +61 418 958 660 E: peter.langworthy@omnigeox.com Competent Persons Statement The information in this report that relates to Exploration Results or Mineral Resources is based on information compiled or reviewed by Mr. Peter Langworthy, Managing Director (Principal Consultant) OMNI GeoX Pty Ltd. Mr. Peter Langworthy is a Member of the Australian Institute of Mining and Metallurgy and has sufficient experience, which is relevant to the style of mineralisation and types of deposit under consideration and to the activities undertaken, to qualify as a Competent Person as defined in the 2012 Edition of the Australasian Code of Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr. Peter Langworthy consents to the inclusion in the report of the matters based on the information in the form and context in which it appears 7
APPENDIX (1) ROCK CHIP SAMPLING DETAILS SAMPLE EASTING NORTHING DATE TENEMENT LITHOLOGY YAR001 436,832 6,705,160 21/06/16 E31/859 Granite with Qtz veins YAR002 436,897 6,705,174 21/06/16 E31/859 Silicious Granite Pegmatitic with Qtz Vein adjacent YAR003 436,704 6,705,161 21/06/16 E31/859 Granite with visible biotite YAR004 436,704 6,705,161 21/06/16 E31/859 Granite with Ox. Py. (Sulfide) cubes on fracture planes YAR005 436,880 6,705,088 21/06/16 E31/859 YAR006 438,570 6,704,643 21/06/16 E31/859 Monzogranite YAR007 438,570 6,704,643 21/06/16 E31/859 Monzogranite "Fresh" granite biotite +fspar medium large grained. Equigranular. YAR008 440,336 6,701,856 21/06/16 E31/859 Carbonate calcrete w/ mafic around old collapsed shaft YAR009 440,336 6,701,856 21/06/16 E31/859 Carbonate calcrete w/ mafic around old collapsed shaft YAR010 440,336 6,701,856 21/06/16 E31/859 Carbonate calcrete w/ mafic around old collapsed shaft YAR011 440,361 6,701,821 21/06/16 E31/859 Calcrete breccia w/ Greenstone YAR012 440,749 6,702,832 21/06/16 E31/859 Schist w/ Qtz YAR013 440,749 6,702,832 21/06/16 E31/859 Qtz w/ oxide (pyrite cubes?) YAR014 440,770 6,702,766 21/06/16 E31/859 Qtz w/ silicified schist trending NNE oxidixed sulfide YAR015 440,837 6,702,810 21/06/16 E31/859 Qtz (Opaques brecciated) YAR016 440,818 6,702,841 21/06/16 E31/859 Silica foliated (Chl + Cte Jasp?) YAR017 439,031 6,702,247 21/06/16 E31/859 Biotite granite Qz veins YAR018 437,442 6,705,773 22/06/16 E31/859 Qtz Slag YAR019 439,143 6,706,695 22/06/16 E31/859 Silicious + Qz veined w/ mafics + Qtz blow. YAR020 439,143 6,706,734 22/06/16 E31/859 Silicious + Qz veined w/ mafics + Qtz blow. YAR021 439,125 6,706,760 22/06/16 E31/859 Silicious + Qz veined w/ mafics + Qtz blow. w/ oxidised sulphide. YAR022 439,075 6,706,809 22/06/16 E31/859 Silicifed w/ mica veins & oxides. YAR023 439,075 6,706,809 22/06/16 E31/859 Silicifed w/ mica veins & oxides. YAR024 438,978 6,706,850 22/06/16 E31/859 Silicified veins (felsic?) YAR025 438,852 6,706,906 22/06/16 E31/859 YAR026 438,987 6,707,425 22/06/16 E31/859 Qtz w/ Fe ox messy. YAR027 438,987 6,707,425 22/06/16 E31/859 Schist Yellow Qtz blow w/ sulfide (fresh) & oxidized. Potential start to shaft? YAR028 437,572 6,705,696 22/06/16 E31/859 Qtz vein trends 65* w/sulfide YAR029 437,572 6,705,696 22/06/16 E31/859 Qtz vein trends 65* w/sulfide YAR030 437,783 6,705,496 22/06/16 E31/859 Old working silificied rock w/ veins & oxides. YAR031 437,783 6,705,496 22/06/16 E31/859 Old working silificied rock w/ veins & oxides. YAR032 437,783 6,705,497 22/06/16 E31/859 Mafic, then alt from Dump YAR033 436,550 6,703,568 22/06/16 E31/859 Old workings mafics from the Dump 8
APPENDIX (2) SOIL SAMPLING DETAILS SAMPLE_ID EASTING NORTHING DATE TENEMENT YARS001 437659 6705436 22/06/16 E31/859 YARS002 437681 6705445 22/06/16 E31/859 YARS003 437701 6705453 22/06/16 E31/859 YARS004 437715 6705463 22/06/16 E31/859 YARS005 437734 6705470 22/06/16 E31/859 YARS006 437743 6705477 22/06/16 E31/859 YARS007 437752 6705480 22/06/16 E31/859 YARS008 437760 6705485 22/06/16 E31/859 YARS009 437772 6705486 22/06/16 E31/859 YARS010 437781 6705490 22/06/16 E31/859 YARS011 437789 6705497 22/06/16 E31/859 YARS012 437796 6705505 22/06/16 E31/859 YARS013 437802 6705509 22/06/16 E31/859 YARS014 437812 6705517 22/06/16 E31/859 YARS015 437819 6705522 22/06/16 E31/859 YARS016 437827 6705528 22/06/16 E31/859 YARS017 437837 6705533 22/06/16 E31/859 YARS018 437852 6705545 22/06/16 E31/859 YARS019 437869 6705554 22/06/16 E31/859 YARS020 437887 6705566 22/06/16 E31/859 YARS021 436427 6703598 22/06/16 E31/859 YARS022 436447 6703592 22/06/16 E31/859 YARS023 436461 6703579 22/06/16 E31/859 YARS024 436469 6703575 22/06/16 E31/859 YARS025 436478 6703572 22/06/16 E31/859 YARS026 436492 6703569 22/06/16 E31/859 YARS027 436506 6703570 22/06/16 E31/859 YARS028 436526 6703566 22/06/16 E31/859 YARS029 436540 6703566 22/06/16 E31/859 YARS030 436548 6703565 22/06/16 E31/859 YARS031 436558 6703565 22/06/16 E31/859 YARS032 436568 6703567 22/06/16 E31/859 YARS033 436579 6703567 22/06/16 E31/859 YARS034 436588 6703568 22/06/16 E31/859 YARS035 436597 6703568 22/06/16 E31/859 YARS036 436606 6703569 22/06/16 E31/859 YARS037 436616 6703570 22/06/16 E31/859 YARS038 436634 6703574 22/06/16 E31/859 YARS039 436655 6703572 22/06/16 E31/859 YARS040 436680 6703574 22/06/16 E31/859 9
MONTHLY CASH FLOW REPORT Mining exploration entity monthly report Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10, 01/05/2013 Name of entity Global Fortune Investment Limited ABN Month ended ( current month ) 21 149 001 347 30 June 2016 Consolidated statement of cash flows Cash flows related to operating activities Current month $A 000 Year to date (12 months) $A 000 1.1 Receipts from product sales and related debtors 847 930 1.2 Payments for (a) exploration and evaluation (87) (b) development (c) production (d) administration (121) (995) 1.3 Dividends received 1.4 Interest and other items of a similar nature received 2 12 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Other payments for stock (193) (226) Net operating cash flows 535 (366) Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets (72) 1.9 Proceeds from sale of: (a) prospects (b) equity investments (c) other fixed assets 1.10 Loans to other entities 1.11 Loans repaid by other entities 1.12 Other Office lese security deposit (3) Net investing cash flows (75) 1.13 Total operating and investing cash flows (carried forward) 535 (441) 10
1.13 Total operating and investing cash flows (brought forward) 535 (441) Cash flows related to financing activities 1.14 Proceeds from issues of shares, options, capital raising etc. 4,008 1.15 Proceeds from sale of forfeited shares 1.16 Proceeds from borrowings 539 1.17 Repayment of borrowings (29) (881) 1.18 Dividends paid 1.19 Other capital raising costs (333) Net financing cash flows (29) 3,333 Net increase (decrease) in cash held 506 2,892 1.20 Cash at beginning of month/year to date 2,425 39 1.21 Exchange rate adjustments to item 1.20 1.22 Cash at end of month 2,931 2,931 Payments to directors of the entity and associates of the directors, related entities of the entity and associates of the related entities Current month $A'000 1.23 Aggregate amount of payments to the parties included in item 1.2 38 1.24 Aggregate amount of loans to the parties included in item 1.10 1.25 Explanation necessary for an understanding of the transactions Item 1.23: Director s fees and salaries $38K Noncash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows None 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest None 11
Financing facilities available Add notes as necessary for an understanding of the position. Amount available $A 000 Amount used $A 000 3.1 Loan facilities 3.2 Credit standby arrangements Estimated cash outflows for next month $A 000 4.1 Exploration and evaluation 36 4.2 Development 4.3 Production 4.4 Administration 150 Total 186 Reconciliation of cash Reconciliation of cash at the end of the month (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. Current month $A 000 Previous month $A 000 5.1 Cash on hand and at bank 88 425 5.2 Deposits at call 1,843 5.3 Bank overdraft 5.4 Other (Term deposit): 1,000 2,000 Total: cash at end of month (item 1.22) 2,931 2,425 Changes in interests in mining tenements Tenement reference Nature of interest Interest at beginning of month Interest at end of month 6.1 Interests in mining tenements relinquished, reduced or lapsed None 6.2 Interests in mining tenements acquired or increased None 12
Issued and quoted securities at end of current month Description includes rate of interest and any redemption or conversion rights together with prices and dates. Total number Number quoted Issue price per security (see note 3) Amount paid up per security (see note 3) 7.1 Preference + securities(description) 7.2 Changes during month (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions 7.3 + Ordinary securities Fully Paid 63,360,296 13,360,295 N/A N/A 7.4 Changes during month (a) Increases through issues (b) Decreases through returns of capital,buybacks 7.5 Convertible debt securities (description) 7.6 Changes during month (a) Increases through issues (b) Decreases through securities matured, converted 7.7 Options (description and conversion factor) Exercise price Expiry date 850,000 $0.40 29 Jan 2019 7.8 Issued during month 7.9 Exercised during month 7.10 Expired during month 7.11 Debentures (totals only) 7.12 Unsecured notes (totals only) 13
Compliance statement 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX (see note 5). 2 This statement does give a true and fair view of the matters disclosed. Sign here: Date: 28 July 2016 Company Secretary Print name: Anne Adaley Notes 1 The monthly report provides a basis for informing the market how the entity s activities have been financed for the past month and the effect on its cash position. An entity wanting to disclose additional information is encouraged to do so, in a note or notes attached to this report. 2 The Nature of interest (items 6.1 and 6.2) includes options in respect of interests in mining tenements and petroleum tenements acquired, exercised or lapsed during the reporting period. If the entity is involved in a joint venture agreement and there are conditions precedent which will change its percentage interest in a mining tenement or petroleum tenement, it should disclose the change of percentage interest and conditions precedent in the list required for items 6.1 and 6.2. 3 Issued and quoted securities The issue price and amount paid up is not required in items 7.1 and 7.3 for fully paid securities. 4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of Mineral Resources and AASB 107: Statement of Cash Flows apply to this report. 5 Accounting Standards ASX will accept, for example, the use of International Financial Reporting Standards for foreign entities. If the standards used do not address a topic, the Australian standard on that topic (if any) must be complied with. 14