Announcement PDF 21 January 2019 ASX ANNOUNCEMENT HIGH GRADE GOLD ASSAYS AT THETA HILL Theta Gold Mines Limited (“Theta Gold” and “Company”) (ASX: TGM) is planning on recommencing mining activities at the historical TGME mine in South Africa’s Eastern Goldfields. The Company continues to make good progress with ongoing resource infill classification drilling and plans to issue a revised resource and reserve statement together with a Feasibility Study in early 2019. The Company is pleased to report there was high level of activity at the project over the past month and drilling at Theta Hill deposit for Indicated and Measured resources is now nearing completion for Mining Right, MR83. Additionally, the Feasibility Study work during the quarter included site visits from contractors and engineering groups to ensure independence and to support the costing for financial models. HIGHLIGHTS  First phase drilling at Theta Hill near completion.  High grade assays returned from the December quarter program.  Feasibility Study and Mining Reserve in progress.  Notable intersections at Theta Hill from December quarter program include:       11m @ 2.1g/t Au from 8m in DG4RCWAD16, including 1m @ 9.5g/t Au 1m @ 27.5g/t Au from 8m in DG4RCWAD20 2m @ 5.9g/t Au from 24m in DG4RCWAD21 1m @ 5.2g/t Au from 57m in RCBH73 8m @ 1.8g/t Au from 22m in RCBH24 3m @ 3.4g/t Au from 84m in RCBHTN124, including 1m @ 8.3 g/t Au  A Reverse Circulation (RC) drilling program is also completing resource delineation on satellite opencasts targets (within 2km of the TGME Plant) and will provide additional resources for the updated feasibility study resource estimate planned for Q1 2019.  2019 drill program has recommenced at Columbia Hill.  At Columbia Hill follow‐up Phase 2 intersections have confirmed more high grade shallow gold intersections on the Bevetts and Rho reefs, with notable results including:      1m @ 10.1g/t Au from 18m in RCBHI41 1m @ 5.6g/t Au from 68m in RCBHI44 1m @ 7.5g/t Au from 31m in RCBHI45 10m @ 1.9g/t Au from 36m in RCBH46 At Scammells (satellite target) an initial phase of drilling managed a number of significant intersections, although ground conditions were very broken, and a number of boreholes still require deepening to reach target. Notable results included:  1m @ 5.6g/t Au from 18m in RCBHSC3  1m @ 13.8g/t Au from 20m in RCBHSC9 Theta Gold Mines Limited ABN 30 131 758 177 Level 18, 111 Pacific Highway, North Sydney NSW 2060 Tel: +61 2 9460 2021 Email: info@thetagoldmines.com www.thetagoldmines .com Chairman, Bill Guy commented: “The last of 2018 drill assays for Theta Hill are showing continued good grades which is causing much excitement in the team. Just 3km to the west of the TGME Plant, Columbia Hill continues to show good potential, so much so that additional drilling is now underway to build up the geological model for that deposit”. “As part of the Feasibility Study, the TGM Board will develop more clearly delineated timelines and work schedules to bring the existing TGME plant back into production. The on‐site team is back at work and the 2019 work program has begun with environmental studies to support the permitting process for open cut developments,” Mr Guy said. SUMMARY The Company drilled over 7,400m during Q4 2018, and since the last resource update (26 September 2018 ASX: Theta Hill Open Cut Grows JORC Resources to 5.8 Moz). The team in country continues to use two reverse circulation (RC) drill rigs that worked up to Christmas 2018, with one being recommissioned on Columbia Hill. Since the Theta Hill drill program began over 13,000m of drilling has been completed using 297 vertical boreholes (Diamond/RC). The drilling spacing is now nominal 45m forming systematic grid. Over 14,300 samples have been dispatched for assay at SGS Laboratories at Barberton. During Q4 2018 the RC infill resource drilling was completed at Theta Hill. Evaluation was initiated on a number of other targets on 83MR (vis Columbia Hill, Day Mine and Scammells ‐ Figure 1). At Columbia Hill initial resource estimations will be completed during February 2019. Figure 1: Locality of Opencast Targets on 83 MR (Historical underground working pink & white, yellow MR 83 Farm boundary) 2 Theta Hill Indicated Resource Drilling Resource drilling at Theta Hill (Figures 2 & 3) has now been completed. During Q4 2018, a further infill program was completed at Theta North to bring the Lower Theta (Block 7) and the Beta Reef (Blocks 6 & 10) into an Indicated resource category. Figure 2: 31st December 2018 Distribution of Boreholes at Theta Hill North Figure 3: Theta Hill cross section looking north showing thick Bevetts / lense development and Upper and Lower Theta mineralized zones. All assays have been returned for December 2018 drilling (Table 1), and a further phase of shallow drilling was completed testing continuity of stratigraphically higher level Bevetts and U Theta 3 mineralisation previously delineated by Lower Theta drilling and Bevetts trenching and RC drilling. The distribution of drilling is shown in Figure 2. Currently the geological model is being updated, and incremental resources estimated. Table 1: Theta Hill ‐ intersections (> 1 g/t Au) BHID THETA DG4 From m To m DG4RCWAD3 DG4RCWAD4 DG4RCWAD5 4.00 11.00 7.00 5.00 13.00 12.00 Width m Au g/t Au Comments 1.00 2.00 5.00 2.52 1.95 1.39 Bevetts Bevetts Bevetts Au Content Cm.g/t Back calc in situ Reef g/t over 25cm 252 389 697 10.08 7.78 5.58 EOH Comments DG4 Bevetts & U Theta DG4 Bevetts & U Theta DG4 Bevetts & U Theta DG4RCWAD5 incl 7.00 8.00 1.00 4.45 Bevetts 445 17.80 DG4 Bevetts & U Theta DG4RCWAD5 DG4RCWAD5 DG4RCWAD7 DG4RCWAD15 DG4RCWAD16 31.00 36.00 35.00 14.00 8.00 34.00 37.00 37.00 16.00 19.00 3.00 1.00 2.00 2.00 11.00 1.20 1.23 1.87 1.55 2.13 U Theta L Theta L Theta Bevetts Bevetts 359 123 373 309 2,343 4.79 4.92 7.46 6.18 8.52 DG4 Bevetts & U Theta DG4 Bevetts & U Theta DG4 Bevetts & U Theta DG4 Bevetts & U Theta DG4 Bevetts & U Theta DG4RCWAD16 Incl 8.00 9.00 1.00 9.52 Bevetts 952 38.08 DG4RCWAD16 DG4RCWAD17 DG4RCWAD17 DG4RCWAD18 DG4RCWAD20 DG4RCWAD21 DG4RCWAD21 40.00 7.00 17.00 9.00 8.00 16.00 24.00 45.90 8.00 18.00 10.00 9.00 17.00 26.00 5.90 1.00 1.00 1.00 1.00 1.00 2.00 7.34 2.10 1.19 0.61 27.50 2.27 5.92 L Theta Bevetts U Theta? U Theta? Bevetts U Theta L Theta 4,331 210 119 61 2,750 227 1,184 29.36 8.40 4.76 2.44 110.00 9.08 23.68 DG4 Bevetts & U Theta BHID THETA N BLK 10 From m To m Width m Au g/t Au Comments Au Content Cm.g/t Back calc in situ Reef g/t over 25cm RCBHTNBB10 RCBHTNBB14 RCBHTNBB16 RCBHTNBB16 RCBHTNBB17 RCBHTNBB17 RCBHTNBB2 8.00 21.00 31.00 50.00 12.00 35.00 2.00 9.00 23.00 34.00 52.00 13.00 36.00 4.00 1.00 2.00 3.00 2.00 1.00 1.00 2.00 2.88 2.88 1.03 1.58 1.35 2.95 1.42 Beta? L Theta Bevetts L Theta? Bevetts L Theta? Bevetts/U Theta 288 576 310 316 135 295 283 11.52 11.52 4.13 6.32 5.40 11.80 5.66 BHID THETA NORTH From m To m Width m Au g/t Au Comments Au Content Cm.g/t Back calc in situ Reef g/t over 25cm EOH Comments RCBH73 RCBH73 RCBH73 RCBH92 RCBH13 RCBH24 RCBH24 RCBHTN122 RCBHTN122 RCBHTN123 RCBHTN124 29.00 57.00 60.00 50.00 26.00 22.00 34.00 10.00 39.00 18.00 84.00 30.00 58.00 61.00 51.00 28.00 30.00 38.00 16.00 40.00 19.00 87.00 1.00 1.00 1.00 1.00 2.00 8.00 4.00 6.00 1.00 1.00 3.00 1.02 5.25 1.50 1.22 1.07 1.77 1.51 1.05 3.35 4.74 3.40 Quartz in Shale Bevetts Bevetts Bevetts L Theta Bevetts/U Theta L Theta Quartz in shale U Theta Quartz in shale Bevett's / U Theta 102 525 150 122 213 1,415 605 630 335 474 1,019 4.08 21.00 6.00 4.88 4.26 7.08 6.05 4.20 13.40 18.96 13.59 Theta N Bevetts & U Theta Theta N Bevetts & U Theta Theta N Bevetts & U Theta Theta N Bevetts & U Theta Theta N Bevetts & U Theta Theta N Bevetts & U Theta Theta N Bevetts & U Theta Theta N Bevetts & U Theta Theta N Bevetts & U Theta Theta N Bevetts & U Theta Theta N Bevetts & U Theta DG4 Bevetts & U Theta DG4 Bevetts & U Theta DG4 Bevetts & U Theta DG4 Bevetts & U Theta DG4 Bevetts & U Theta DG4 Bevetts & U Theta DG4 Bevetts & U Theta EOH Comments Theta N Beta Block 10 Theta N Beta Block 10 Theta N Beta Block 10 Theta N Beta Block 10 Theta N Beta Block 10 Theta N Beta Block 10 Theta N Beta Block 10 RCBHTN124 incl 84.00 85.00 1.00 8.27 Bevett's / U Theta 827 33.08 Theta N Bevetts & U Theta RCBHTN125 RCBHTN126 RCBHTN127 66.00 ‐ 37.00 67.00 5.00 38.00 1.00 5.00 1.00 2.63 1.78 1.19 Bevett's / U Theta Quartz in shale Bevetts 263 891 119 10.52 Theta N Bevetts & U Theta 7.13 Theta N Bevetts & U Theta 4.76 Theta N Bevetts & U Theta Theta Hill Geology Theta Hill is a significant historic gold producer in the Pilgrim’s Rest area with production from mostly Lower Theta and Beta Reefs totalling 500koz Au from previous underground operations. The geological setting of the area includes a capping of Pretoria Group shales, pyroxenite sill and the Bevetts quartzite and conglomerate which rest on the Bevetts angular unconformity. This sequence is underlain by the Eccles Formation of the Malmani dolomites, which comprises fluctuating shallow water dolomites with interbedded narrow shale horizons that mark packages of cyclic sedimentation (deep water to tidal deposition). Within this package are a number of regional stratigraphic markers ‐ namely the Giant Chert, Middle Chert and the Beehive Chert. The general attitude of the rock sequence is 7 degrees dip to the south west. Gold mineralisation at Theta Hill has mostly developed on the bedding plane parallel thrusts hosting Beta, Lower Theta and Upper Theta "flat reefs", as well as within the Bevetts thrust packages, and quartz veining in the Pretoria shales which is controlled by the thrust related structures and splays. 4 Structural features of the area include: o bedding plane thrusts on the intercalated shale horizons in the dolomites, which are host to "flat reef" gold mineralisation; o Thrusting with a SE vergence around the Bevetts Unconformity, which leads to localised repetition of the Giant Chert ‐ Bevetts Conglomerate/Quartzite; o Post mineralisation subvertical faulting trending NNW‐SSE and NNE‐SSW. The Fraser Morgan Graben is a conspicuous NNE trending feature that separates Theta Hill and Browns Hill with a down throw of over 150m. Columbia Hill and Scammells Reverse Circulation Drilling The second rig has been progressing investigations on satellite opencast targets on 83MR. Phase 1 drilling at the Scammells workings was completed and the rig is currently in progress on Phase 2 at Columbia Hill Mine (see Figure 1). In total a further 1,216m RC drilling was completed at Columbia Hill over 17 holes during December 2018. This follows on from previous drilling during Q4 2018 that had encouraging Rho Reef intersections. At Columbia Hill (Figure 4), the Iota (Rho Reef) underground workings are located on the eastern extension and the current RC drilling is targeting ground peripheral to these zones. In total 18 RC boreholes have been completed for 890m (2017‐2018). The target mineralisation zones embrace the Bevetts thrust and Lense style reefs plus the underlying Rho Reef (Figures 5 & 6 Columbia Hill cross‐ section). Figure 4: December 31st 2018 distribution of RC drilling at Columbia Hill (Iota Mine workings) Columbia Hill continues to demonstrate good potential as a satellite resource. Columbia Hill is similar to Theta Hill in mineralization and geometry, with a thrusted “lense” package located around the Bevetts unconformity, and a flat to shallowly dipping Rho reef system in the Malmani dolomite footwall. At Columbia Hill, the Rho Reef mineralization is hosted in bedding plane shears with the gold associated 5 with quartz and oxidized sulphides. Columbia Hill (Iota Mine) results > 1 g/t Au from assays received to date for Phase 1 are encouraging, and are shown below in Table 2. Table 2: Columbia Hill (Iota) Q4 2018 Phase 1 RC drilling results > 1 g/t Au BHID From m To m Width m Au g/t Au Comments Au Content Cm.g/t Back calc in situ Reef g/t over 25cm EOH Comments RCBHI12B 43.00 61.00 18.00 2.81 Bevetts / Lense 5,057 11.24 RCBHI12B incl 47.00 59.00 12.00 3.65 Bevetts / Lense 4,384 14.61 Iota Mine P1 Iota Mine P1 RCBHI12B RCBHI14 RCBHI14 RCBHI14 76.00 ‐ 16.00 28.00 77.00 1.00 17.00 33.00 1.00 1.00 1.00 5.00 8.76 1.09 2.20 3.69 Rho Quartz in shale Bevetts Rho 876 109 220 1,843 35.04 4.36 8.80 14.74 Iota Mine P1 Iota Mine P1 Iota Mine P1 Iota Mine P1 Rho 1,778 23.71 Iota Mine P1 Bevetts Rho 123 4,126 4.92 41.26 Iota Mine P1 Iota Mine P1 RCBHI14 incl 28.00 31.00 3.00 5.93 RCBHI15 RCBHI15 29.00 35.00 30.00 39.00 1.00 4.00 1.23 10.31 RCBHI15 incl 37.00 39.00 2.00 19.76 Rho 3,953 79.05 Iota Mine P1 RCBHI16 ‐ 6.00 6.00 2.32 Bevetts 1,393 9.29 Iota Mine P1 RCBHI16 incl ‐ 4.00 4.00 3.19 Bevetts 1,274 12.74 Iota Mine P1 RCBHI17 RCBHI17 RCBHI17B 9.00 53.00 58.00 10.00 54.00 69.00 1.00 1.00 11.00 1.45 4.08 0.91 Quartz in shale Bevetts? Rho 145 408 999 5.79 16.32 3.63 Iota Mine P1 Iota Mine P1 Iota Mine P1 RCBHI17B incl 58.00 63.00 5.00 1.29 Rho RCBHI18 RCBHI19 16.00 1.00 17.00 13.00 1.00 12.00 1.07 2.53 Bevetts Bevetts / Lense 647 5.18 Iota Mine P1 107 3,036 4.28 10.12 Iota Mine P1 Iota Mine P1 RCBHI19 incl 1.00 8.00 7.00 3.50 Bevetts / Lense 2,448 13.99 Iota Mine P1 RCBHI19B RCBHI19B RCBHI20 21.00 38.00 41.00 22.00 39.00 62.00 1.00 1.00 21.00 19.40 4.79 3.61 Bevetts Rho Bevetts Lense 1,940 479 7,581 77.60 19.16 14.44 Iota Mine P1 Iota Mine P1 Iota Mine P1 RCBHI20 incl 46.00 57.00 11.00 5.95 Bevetts Lense 6,545 23.80 Iota Mine P1 RCBHI20 RCBHI21 RCBHI22 RCBHI22B RCBHI24 RCBHI24 RCBHI26 RCBHI26 67.00 19.00 ‐ 7.00 ‐ 19.00 46.00 62.00 68.00 25.00 1.00 8.00 4.00 24.00 48.00 68.00 1.00 6.00 1.00 1.00 4.00 5.00 2.00 6.00 5.12 5.17 1.57 1.42 1.25 1.99 4.89 1.79 Rho Rho Quartz in shale Bevetts Bevetts Lense Rho Bevetts Rho 512 3,102 157 142 500 995 978 1,073 20.48 20.68 6.28 5.68 5.00 7.96 19.56 7.15 Iota Mine P1 Iota Mine P1 Iota Mine P1 Iota Mine P1 Iota Mine P1 Iota Mine P1 Iota Mine P1 Iota Mine P1 RCBHI26 incl 63.00 65.00 2.00 3.89 Rho 777 15.54 Iota Mine P1 RCBHI9C_1 ‐ 1.00 1.00 1.17 Quartz in shale 117 4.68 Iota Mine P1 Table 4 illustrates a number of significant thicker intersections (up to 21m; vis RCBI12b and RCBHI20) which have intersected Bevetts thrust controlled Lense deposits. The geometry of these intersections is being interpreted, but brings a significant exploration potential into play going westwards. Current Rho Reef intersections are supporting a split (Upper and Lower Rho) reef. Effectively the Rho Reef bedding plane shear locates on 2 “bounding” structures, leading to drill intercepts collectively being up to 6m wide (eg RCBHI21and RCBHI15; Figures 5 and 6). 6 Figure 5: Columbia Hill (Iota Mine) Cross Section RCBHI41‐I18 looking north Figure 6: Columbia Hill (Iota Mine) Cross Section RCBHI39‐I30 looking north Combined with the Lense style and Rho Reef intersections all above 80m below surface the opencast target is taking shape. As a consequence, a follow up Phase 2 programme is underway and is increasing the footprint of opencastable mineralisation. Table 5 shows the Phase 2 intersections > 1g/t Au to 31st December 2018: 7 Table 5: Columbia Hill (Iota) December 2018 Phase 2 RC drilling results > 1 g/t Au BHID From m To m Width m Au g/t Au Comments Au Content Cm.g/t Back calc in situ Reef g/t over 25cm RCBHI32 RCBHI32 RCBHI34 RCBHI34 RCBHI34 RCBHI34 RCBHI39 RCBHI41 RCBHI41 RCBHI43 RCBHI43 RCBHI44 RCBHI44 8.00 65.00 1.00 26.00 36.00 77.00 32.00 18.00 36.00 7.00 70.00 4.00 66.00 9.00 66.00 2.00 27.00 37.00 78.00 35.00 19.00 37.00 8.00 71.00 5.00 69.00 1.00 1.00 1.00 1.00 1.00 1.00 3.00 1.00 1.00 1.00 1.00 1.00 3.00 3.71 1.33 2.91 1.24 1.26 2.44 1.87 10.10 1.58 1.18 3.88 1.03 3.34 Bevetts Thrust Rho ? Quartz in Shale U Rho? L Rho? ? Bevetts Bevetts Rho Quartz in Shale Rho Bevetts Rho 371 133 291 124 126 244 560 1,010 158 118 388 103 1,001 14.84 5.32 11.64 4.96 5.04 9.76 7.47 40.40 6.32 4.72 15.52 4.12 13.34 RCBHI44 incl 68.00 69.00 1.00 5.99 Rho RCBHI45 RCBHI45 RCBHI46 RCBHI46 ‐ 31.00 28.00 36.00 1.00 32.00 29.00 46.00 1.00 1.00 1.00 10.00 1.10 7.51 1.34 1.93 Surficial Rho U Rho L Rho EOH Comments Iota Mine P2 Iota Mine P2 Iota Mine P2 Iota Mine P2 Iota Mine P2 Iota Mine P2 Iota Mine P2 Iota Mine P2 Iota Mine P2 Iota Mine P2 Iota Mine P2 Iota Mine P2 Iota Mine P2 599 23.96 Iota Mine P2 110 751 134 1,927 4.40 30.04 5.36 7.71 Iota Mine P2 Iota Mine P2 Iota Mine P2 Iota Mine P2 Results and geology of the Scammells drilling (see Figures 1 and 7) are still being processed, and will be published later in Q1 2019, after reaming and deepening of 8 boreholes that had collapsing ground issues have been completed. Figure 7 (below) shows the distribution of Scammells RC drilling collars. Figure 7: Scammells Reef distribution of RC boreholes as at 31st December 2018 8 For more information please visit www.thetagoldmines.com or contact: General Enquiries Rob Thomson, Managing Director Theta Gold Mines Limited M: +61 409 843 963 robt@thetagoldmines.com or Investor Enquiries Bill Guy, Chairman Theta Gold Mines Limited T: + 61 2 9460 2021 billg@thetagoldmines.com Competent Persons Statement Theta Hill, Columbia Hill (Iota Mine ) and Scammells Drilling Results The information n in this report relating to the Theta Hill and 83MR drilling results is based on, and fairly reflects, the information and supporting documentation compiled by Mr Phil Bentley (MSc (Geol), MSc (MinEx), Pr.Sci.Nat. No. 400208/05, FGSSA), a consultant to the Company and a member of the South African Council for Natural Scientific Professions. Mr Bentley has sufficient experience that is relevant to the style of mineralisation under consideration and to the activity being undertaken to qualify as a Competent Person as defined in the 2012 Edition of the Joint Ore Reserves Committee (JORC) Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves. Mr Bentley consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. Mineral Resources The information in this report relating to Mineral Resources is based on, and fairly reflects, the information and supporting documentation compiled by Mr Uwe Engelmann (BSc (Zoo. & Bot.), BSc Hons (Geol.), Pr.Sci.Nat. No. 400058/08, MGSSA), a director of Minxcon (Pty) Ltd and a member of the South African Council for Natural Scientific Professions. The original report titled “Theta Hill Open Cut Grows JORC Resources to 5.8 Moz” was dated 26 September 2018 and was released to the Australian Securities Exchange (ASX) on that date. The Company confirms that –  it is not aware of any new information or data that materially affects the information included in the ASX announcement; and  all material assumptions and technical parameters underpinning the estimates in the ASX announcement continue to apply and have not materially changed. 9 ABOUT THETA GOLD MINES LIMITED Theta Gold Mines Limited (ASX: TGM) is a gold development company that holds a range of prospective gold assets in a world‐renowned South African gold mining region. These assets include several surface and near‐surface high‐grade gold projects which provide cost advantages relative to other gold producers in the region. Theta Gold Mines core project is TGME, located next to the historical gold mining town of Pilgrim’s Rest, in Mpumalanga Province, some 370km east of Johannesburg by road or 95km north of Nelspruit (Capital City of Mpumalanga Province). Following small scale production from 2011 – 2015, the Company is currently focussing on the planned refurbishment of the existing CIL plant and nearby mines/prospects with the intention of resuming gold production and is considering open pit mining where it has identified mineral resources amenable to open pit production. The Company is presently concluding a detailed feasibility study and is also in the process of seeking approvals for open pit mining on the existing mining licences held. The Company aims to build a solid production platform to over 100kozpa based primarily around shallow, open‐cut or adit‐entry hard rock mining sources. Theta Gold Mines has access to over 43 historical mines and prospect areas that can be accessed and explored, with over 6.7Moz of historical production recorded. 10 ANNEXURE 1 MINERAL RESOURCES, SEPTEMBER 2018 Gold Grade Tonnage Gold Content Resource Classification Type of Operation Measured Underground 0.09 5.37 0.09 5.37 489 15.7 Underground 4.77 6.21 29,661 953.7 Open Pit 2.72 2.44 6,644 213.6 Mt Total Measured Indicated Tailings Total Indicated Underground g/t Kg 489 koz 15.7 5.24 0.83 4,373 140.6 12.74 3.19 40,678 1,307.8 21.45 5.22 111,880 3597 Open pit 4.72 5.40 25,472 819 Tailings 0.02 0.57 13 0.4 Rock Dump 0.12 1.64 199 6.4 Total Inferred 26.32 5.23 137,564 4,422.7 Grand Total 39.14 4.57 178,732 5,746.3 Inferred Note: 1. Gold price used = USD 1,500/oz 2. Depletions have been applied 3. Geological losses of 5% for Indicated and 10% for Inferred were applied 11 ANNEXURE 2 Table 1: JORC Checklist – Table 1 Assessment and Reporting Criteria Criteria SECTION 1: SAMPLING TECHNIQUES AND DATA Explanation Detail Nature and quality of Surface exploration over the Q4 2018 period has involved Reverse Circulation sampling (e.g. cut (“RC”) drilling. channels, random chips, or specific The RC drilling has focussed on resource delineation of Indicated resources at the specialised industry Theta Hill project (Theta North and the DG4 area on Browns Hill) and Columbia Hill standard measurement (Iota Mine). tools appropriate to the minerals under Theta N Drilling as at Dec 31 2018 investigation, such as down hole gamma sondes, or handheld XRF instruments, etc.). These examples should not be taken as limiting the broad meaning of sampling. Theta Hill DG4 Drilling as @ 31 Dec 2018 Sampling techniques The drilling has supported the completion of a scoping study and initiation of a feasibility study on the viability of opencasting target reefs including the Bevetts Reef, Upper Theta Reef, Lower Theta Reef and Beta Reef. The reef widths are generally between 20 cm and 40 cm but the RC drilling at 1 m interval samples was utilised optimise recoveries to test the mineralisation and position of the potential reefs in the Project Area. During December 2018 a total of 2,088 RC rock chip samples were sent for analysis; of these, 209 were QAQC samples. All samples were sent to an accredited laboratory in Barberton, South Africa. Include reference to measures taken to ensure The gold bearing reefs have a fairly flat geometry, with an average westerly dip of approximately 8 degrees. The -90 holes therefore allowed for the samples to be 12 Criteria Drilling techniques Drill sample recovery Logging SECTION 1: SAMPLING TECHNIQUES AND DATA Explanation Detail sample taken normal to the reef. At this stage, the 1 m sample will dilute the reef grade and representivity will not provide true reef thicknesses but is deemed to be sufficient for this drilling and the programme. The plan below shows the initial drilling completed in relation to the appropriate total drilling plan. 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 (e.g. ‘reverse circulation drilling was The RC drilling samples were taken in 1 m intervals. The entire drillhole was used to obtain 1 m sampled. Each sample was weighted and then quartered by means of a riffle samples from which 3 splitter to collect a sample, which is stored at the Sabie core yard for future kg was pulverised to testwork if required. This sample is between 2 kg and 6 kg in weight. produce a 30 g charge for fire assay’). In other Another 2 kg sample is collected for analysis at the accredited laboratory. The 2 kg cases more explanation sample is used to produce a 50 g aliquot for the fire assay. may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (e.g. submarine nodules) may warrant disclosure of detailed information. Drill type (e.g. core, reverse circulation, open-hole hammer, rotary air blast, auger, Torque Africa Exploration (Pty) Ltd is doing the reverse circulation (RC) drilling on Bangka, sonic, etc.) site using a track-mounted and a 6x6 truck mounted Thor drilling machines with and details (e.g. core cyclone. diameter, triple or RC drilling was utilised during the initial drilling phase. The drillhole was not standard tube, depth surveyed down the hole as maximum depth of the drilling is 132 m. The collar of diamond tails, facepositions were initially determined with a Garmin 78s handheld GPS, and finalised sampling bit or other with a Trimble differential GPS survey. type, whether core is oriented and if so, by what method, etc.). The RC chips were weighed before splitting and compared to an estimated weight for the 1 m sample if there was 100% recovery in the dolomites. A density of 2.84 Method of recording 3 t/m was used for the dolomite in the weight estimate. and assessing core and chip sample Owing to the natural cavities occurring in the dolomites, the recoveries were recoveries and results monitored to note the natural cavities or, possibly, an area of historical mining. This assessed. was crucial as one of the aims of the drilling programme was to test for the extent of historical mining stopes. The RC rock chips were collected via a cyclone directly into a sample bag in order Measures taken to to collect the maximum sample. Care was taken by the drillers to drill slower maximise sample through areas which had bad ground conditions. recovery and ensure representative nature In order to ensure the representative nature of the drilled intersections and due to of the samples. the dip of the reef being very shallow at around 3° to 9° to the west, drillholes were drilled vertically in order to obtain an intersection as close to normal as possible. Whether a relationship exists between sample recovery and grade Sample recovery versus grade has not been assessed to date. However, it has and whether sample been noted that grade has been observed in higher and lower chip recovery bias may have samples. Further diamond drilling will assist in this respect. occurred due to preferential loss/gain of fine/coarse material. Whether core and chip samples have been All drilled and completed drillholes have been geologically logged in field on the geologically and drilling site. Geological logging of rock chips is done “on the go” as soon as sample geotechnically logged bags containing rock chips are obtained from the drillers. Geological logging is 13 Criteria Explanation to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. SECTION 1: SAMPLING TECHNIQUES AND DATA Detail done on a standard log sheet in the field and the data is captured on computer onto an MS Excel spreadsheet. Using a sieve, the geologist scoops a portion of the sample and cleans it in a bucket of water until the rock chips are free of dust, mud or clay. The geologist uses a hand lens to check the lithology types and alteration and mineralisation such as pyrite, arsenopyrite, chalcopyrite, sericite etc. All identified minerals, alterations and lithologies are then captured onto a geological log sheet for the particular drillhole. The cleaned rock chips are then put in a sample-chip tray in order of drill depths. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc.) photography. Initial geotechnical logging or studies have been completed at this stage. The rock chip logging is both qualitative and quantitative. The drillhole logs are TM captured in StudioEM for electronic logs and the rock chips are stored in chip trays and stored at the Sabie core yard as well as photographed for electronic filing. Project to date 284 RC boreholes have been completed totalling 11,483 metres, The total length and and all the rock chips have been logged and sampled. percentage of the relevant intersections logged. Subsampling techniques and sample preparation 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. Quality of assay data and laboratory tests Project to date 18 Diamond core boreholes have been completed, totalling 485 metres. The core was largely broken, and sampling consisted of either split recovered broken core or split by diamond saw. The 1 m samples were collected via a cyclone and the total sample was collected. The sample was quartered by means of a riffle splitter and one quarter was kept for achieving purposes at the Sabie core yard. The remaining sample was then split further until a sample of approximately 2 kg was collected for assay purposes. Th