Quarterly Activities Report – 30 Sept 2019

QUARTER HIGHLIGHTS o Phase 1 Metallurgical testwork complete o Positive results from gravity circuit o Successful capital raise of 3.6M o First gold and concentrate produced from pilot plant o Terra Firma proposal under review Following commissioning of the pilot processing plant in the June quarter, the Company focused resources on testing the plant in an attempt to reproduce the results achieved in preliminary tests conducted offshore. The ability to replicate the results, as was outlined at the recent AGM, is of primary importance to the consent, design and commissioning of a gold processing plant capable of processing the mines planned output. The Company is pleased to announce that the results of this phase 1 testwork have been successful and have provided the confidence to proceed with the design and preliminary procurement stage of a commercial plant. Key results o On average 64% of the gold and 38% of the silver is recovered into 15% of the ore i.e. each tonne of ore treated yields 150kg of primary concentrate; o The average feed grade for Maria Ore was 10.05 g/t and for the Mystery Vein 9.61g/t both measured through sampling of mill output; o A primary concentrate grade of 41.5g/t was achieved for the Maria vein and 40.7g/t for the Mystery Vein; o There was no significant difference in recovery between the two ore types; o The effectiveness of further processing concentrate over the shaker table was quantified through the treatment of approximately 40kg of primary concentrate in two batches which yielded 650g and 600g of secondary concentrate at grades of 989g/t gold and 4,120g/t silver, and 876g/t gold and 2800 g/t silver respectively. Approximately 1.8kg of this concentrate has been produced to date. End CA:00343566 For:NTL Type:GENERAL Time:2019-10-31 15:17:03