ASX ANNOUNCEMENT By e-lodgement 30 October 2012 QUARTERLY ACTIVITIES REPORT SEPTEMBER 2012 Apollo Consolidated Limited (ASX: AOP, Company) is pleased to provide an update on activities for the quarter ended 30 September 2012. 1. Australia Rebecca Gold Project (Apollo 100%) Bombora RC Drilling During the Quarter exciting results were returned from two programs of reverse circulation (RC) drilling executed at the early-stage Bombora prospect, which is situated in a soil-covered area in the northeastern part of the Rebecca project area (Figure 1). Twelve drillholes were completed around minor historical drilling at this location, for a total of 1,481m. Results demonstrated good potential at the prospect. Better intercepts included: Ø 42m @ 7.75g/t Au (including 2m @ 22.39g/t Au from 67m, and 3m @ 65.21g/t Au) in drillhole RCLR161 Ø 22m @ 2.80g/t Au (including 2m @ 13.41g/t Au), and 8m @ 3.40g/t Au in drillhole RCLR170 Ø 1m @ 15.69g/t Au and 4m @ 4.76g/t Au in drillhole RCLR169 Apollo Consolidated Limited ABN 13 102 084 917 ASX:AOP Level 3, 3 Ord Street, West Perth, WA 6005 PO Box 1140, West Perth, WA 6872 Telephone: Facsimile: Email: Web: +61 8 9226 0714 +61 8 6314 1557 info@apolloconsolidated.com.au www.apolloconsolidated.com.au
Figure 1: Rebecca Project location of Bombora Prospect All drillholes returned wide zones of gold anomalism in fresh rock associated with disseminated sulphides in gneiss and granodiorite. Higher grades are related to zones of coarse disseminated pyrite, increased silica and mafic alteration minerals. Coarse free gold was observed in the higher grade intercepts (Figure 2). Figure 2: Panned Concentrate in RCLR161 84-85m showing gold, coarse pyrite grains in finer grained sulphides and magnetite 2
The drilling has shown that the Bombora prospect has the potential to deliver strongly-mineralised positions, and the Company sees good potential to locate new mineralisation in the surrounding undrilled area. Mineralised intercepts and broader anomalous zones are listed in Table 1, and the location of drillholes is shown in Figure 3. Sulphide mineralisation and alteration was particularly prevalent in holes RCLR161 and RCLR170, which are interpreted to be located in the vicinity of a local northeast trending structure or fold (Figure 4). Geological interpretation suggests potential for a south-plunging shoot at this location, and this represents a strong target for future diamond drilling. Figure 3: Bombora Prospect Drillhole Plan and Significant Gold Intercepts 3
Aeromagnetic imagery at Bombora shows a number of northeast trending features similar to that at RCLR161 and RCLR170 (Figure 4), and the intersection point between these and the trend of the Bombora mineralised zone presents targets for first-pass drill-testing. For example Apollo s drillholes on the northernmost traverse both intersected strong sulphide alteration, wide anomalous zones (to 49m @ 0.57g/t Au to EOH), and intercepts to 8m @ 2.28g/t Au. The area immediately north of this section presents a strong structural target (Figure 4). Table 1 Bombora drillhole details and gold intercepts September Quarter 2012. Hole AMG N AMG E Dip Azimuth EOH Depth Intercept From RCLR0160 6641310 486760-60 90 118 anomalous (33m @ 0.20g/t Au) 40 RCLR0161 6641310 486710-60 90 118 42m @ 7.75g/t Au* 61 including 2m @ 22.39g/t Au 67 including 3m @ 65.21g/t Au 84 RCLR0162 6641410 486765-60 90 119 anomalous (36m @ 0.21g/t Au) 47 RCLR0163 6641410 486715-60 90 142 anomalous (10m @ 0.36g/t Au) 45 RCLR0164 6641560 486750-60 90 118 5m @ 1.68g/t Au 34 within anomalous (47m @ 0.47g/t Au) 24 and anomalous (23m @ 0.24g/t Au) 76 RCLR0165 6641560 486700-60 90 122 8m @ 2.28g/t Au 80 within anomalous (59m @ 0.57g/t Au EOH) 63 RCLR0166 6641160 486692-60 90 118 anomalous (13m @ 0.13g/t Au) 41 and anomalous (11m @ 0.17g/t Au) 97 RCLR0167 6641160 486750-60 90 118 anomalous (13m @ 0.36g/t Au) 43 RCLR0168 6641310 486680-60 90 142 1m @ 2.58g/t Au 117 and 1m @ 1.02g/t Au 119 within anomalous (33m @ 0.29g/t Au) 99 RCLR0169 6641337 486730-60 90 136 1m @ 15.69g/t Au 65 and 1m @ 2.37g/t Au 85 4m @ 4.76g/t Au 89 1m @ 1.41g/t Au 103 1m @ 1.78g/t Au 114 1m @ 1.24g/t Au 118 within anomalous (53m @ 0.79g/t Au EOH) 83 RCLR0170 6641285 486710-60 90 130 22m @ 2.80g/t Au 78 including 2m @ 13.41g/t Au 79 8m @ 3.40g/t Au 105 RCLR0171 6641285 486735-60 90 100 1m @ 2.73g/t Au 57 within anomalous (59m @ 0.21g/t Au EOH) 41 *Intercepts are calculated at a 1.0g/t Au cut off, with a max 2m internal dilution. All samples were collected at 1m intervals through a cyclone and riffle splitter and are dry and of good quality. Analysis was by fire assay. AOP QC (standards and duplicate samples) support reported analyses. The Company is awaiting environmental approvals to allow additional RC and diamond drilling at the project. Geological interpretation is continuing in preparation for a further drill program in the Bombora environs. Apollo has also noted that there is a considerable strike length of folded ultramafic stratigraphy underlying its Rebecca tenements, including several outcrops of silica cap developed over olivine 4
cumulate (channelised) ultramafic rocks. Historic nickel sulphide exploration data is being compiled, but initial indications are that much of the interpreted ultramafic sequence is under cover and therefore effectively unexplored. The Company may consider targeted exploration for nickel sulphides should valid targets emerge. Figure 4: RC drilling on aeromagnetic image Bombora Prospect. Interpreted NE structures in the Bombora area. A high priority strike extension RC target is seen at the northern end of the current drilling. Linear magnetic trends represent mafic or ultramafic units in gneiss. 5
2. Cote d Ivoire Apollo holds exploration and mining rights to five exploration permit applications in the West African nation of Cote d Ivoire, through its acquisition of private Australian explorer Aspire Minerals Pty Ltd (Aspire). The applications cover highly prospective Birimian greenstone belts (Figure 5, in an underexplored portion of the West African goldfields. The permit applications cover exploration opportunities ranging from advanced prospects at Seguela where there are drill ready geochemical targets, to early-stage geochemical encouragement on permits such as Korhogo, Tengrela and Vavoua. 6
Figure 5. Cote d Ivoire Project Locations No exploration work was undertaken during the quarter as a review of all licence applications across the country runs its course. In recent months the Ministry has issued exploitation licences and has processed a number of exploration licence renewals, and the Company sees this activity as a positive sign that new and existing exploration licence applications will in turn be processed. Several applications have been amended to conform with new maximum permit size regulations under a revised mining code, and the Company has been active in representing its technical and financial capacity to the Government agencies. Apollo remains hopeful that permits such as Seguela and the northern applications Tengrela and Korhogo will be granted in time to allow field work in the coming dry season. At the lead Seguela Project, past geochemical exploration by Aspire and others has delineated zones of strong gold anomalism, including continuous >50ppb gold values over an area 6.3km in strike and up to 1.40km in width (Figure 6). 7
Figure 6. Seguela Project Prospect Locations and Soil Anomalism on Digital Terrain Model A number of prospects are recognized in this anomalous area, the more advanced of which have progressed to trenching. Bedrock gold mineralisation has been identified at the Gabbro, Porphyry and Barana prospects, and each of these areas are considered to be RC drill-ready. No previous drilling has been carried out on the property. Earlier stage prospects include Kwenko and Goma where there are significant areas of >50ppb Au gold anomalism in soil-covered terrain in highly prospective structural positions. Results of soil and trench sampling completed early 2012 continue to be received and compiled, including samples from the Western Shear soil grid, infill sampling in parts of the northern soil grids, and trenches at Barana, Gabbro and Boulder. 8
On grant of permits the Company will move to immediately step-up its exploration activity, including detailed geochemical sampling in the northern permits, and the initiation of first-round drilling in the Seguela area. 3. Burkina Faso In southwest Burkina Faso the Company s wholly-owned subsidiary holds rights to acquire 100% ownership of two granted permits totalling 500km2 near the historic Poura gold mine (Figure 7). Figure 7. Burkina Faso Regional Geology and Location of Bredie and Kapa Permits The permits lie on the eastern side of the prospective Birimian aged Boromo greenstone belt, 15km east of Poura (>850,000oz gold endowment) and offer good greenfield prospectivity with exposures of altered sedimentary rocks, gold workings and substantial quartz vein outcrops in an otherwise soil-covered terrain. Artisanal quartz vein workings at Bredie lie on structures with a similar orientation to Poura, and have returned gold values between 0.33g/t and 21.0g/t Au in the Company s reconnaissance rock-chip sampling. 9
Since the acquisition of the project the Company has completed regional soil sampling on a 400m x 200m grid, and 100m x 100m prospect-scale soil sampling over two zones of artisanal workings and anomalous rock-chip results. Regional grids cover areas of aeromagnetic responses considered to represent greenstone terrain (Figure 8). This work was carried out by its Ivorian geological staff. Figure 8. Bredie and Kapa Permits Regional Magnetic Imagery and Interpretation Assay results have been received for approximately 60% of the first-pass geochemical program and are being compiled and interpreted as results are obtained. Preliminary interpretation shows coherent anomalies are emerging in the regional sampling grids, with results to 833ppb Au at Bredie and 782ppb Au on the Kapa permit. These are seen as highly encouraging given the soil-covered 10
terrain and wide-spaced nature of the sampling. A number of samples are being reprocessed to verify anomalous results Assays for one of the prospect-scale (100m x 100m) soil grids on the Bredie permit have been returned, showing anomalous areas extending over more than 1km in length that lie parallel to known lines of artisanal workings and regional vein sets (Figure 10). The anomalies in this area have an orientation similar to the Poura vein field and are considered ready for first-pass RAB drilling. Once remaining results are received, infill soil sampling will commence over anomalous portions of the regional grids in order to define and prioritize additional targets for RAB drilling during the 20122013 dry season. Figure 10. Bredie Soil Assays - Artisanal Grid The information in this release that relates to Exploration Results, Minerals Resources or Ore Reserves, as those terms are defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserve", is based on information compiled by Mr. Nick Castleden, who is a director of the Company and a Member of the Australian Institute of Geoscientists. Mr. Nick Castleden has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a Competent Person as defined in the 2004 Edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserve". Mr. Nick Castleden consents to the inclusion of the matters based on his information in the form and context in which it appears. 11