Halls Creek Project

Halls Creek Project consists of the Nicolsons Project, located approximately 35 km south west of Halls Creek in the Kimberley, Region of Western Australia. The highly prospective area remains largely under-explored with minimal drill testing of targets outside of the existing resources.

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Project Overview

Pantoro, through its wholly owned subsidiary Halls Creek Mining Pty Ltd (HCM), owns a majority interest in the Halls Creek Project in joint venture with Bulletin. HCM holds an 80% interest in the project whilst Bulletin holds the remaining 20% interest.

Upon Completion of the Joint Venture Sale Agreement announced on 2 May 2016, HCM will purchase Bulletin’s remaining 20% joint venture interest in the Halls Creek Project thereby taking ownership over the whole of the project.

The Halls Creek Project includes the Nicolsons Mine and the Rowdies and Wagtail open pits (35 km south west of Halls Creek), and a pipeline of exploration and development prospects located east of Halls Creek in the Kimberley Region of Western Australia.

Pantoro acquired its initial interest the Halls Creek Project during April 2014, and took possession of the site in May 2014 as manager of the project enacting its rapid development plan for the project. First production was achieved at the Nicolsons Mine in September 2015.

The Nicolsons Mine has encountered strong overcalls to the pre-mining JORC Ore Reserve Estimates.1

As of 30 May 2016 the Nicolsons Mine JORC Mineral Resource estimate is 719,914 tonnes at 7.41 g/t Au for 171,581 ounces Au.[2] The Nicolsons Mine JORC Ore Reserve estimate is 418,897 tonnes at 7.17 g/t Aug for 96,551 ounces Au.2

Underground diamond drilling is continuing with strongly developed quartz veining typical of the ore system having been intersected both from holes within, and in extensions to the current mineral resource and ore reserve boundaries. Core is currently being processed ahead of dispatch for assay.

Production activities have also resulted in silver production with approximately one ounce of silver recovered for every two ounces of gold produced to date.

On 12 May 2016 Pantoro defined a maiden open pit JORC Ore Reserve of 96,500 tonnes @ 5.5 g/t Au at the Rowdies and Wagtail deposits approximately 1.5 km south of the Nicolsons processing plant.[3] Subject to government permitting requirements, Pantoro intends to commence mining the open pits during the second half of 2016.

[1] For further details see the Company’s Quarterly Activities Report and Appendix 5B for the quarter ending 31 December 2015 released to ASX on 27 January 2016 and the Company’s Quarterly Activities Report and Appendix 5B for the quarter ending 31 March 2016 released to ASX on 29 April 2016.

[2] For further details see project update entitled ‘Mineral Resource and Ore Reserve Upgrade’ released to ASX on 30 May 2016.

[3] For further details see project update entitled ‘Open Pit to Expand Nicolsons Production’ released to ASX on 12 May 2016.