Highlights

• Further seven holes for 873 metres completed at Dora West .

• Significant brine flows encountered .

• Dimensions of the high conductivity brine zone constrained by surf ace water dilution factors .

• Brine chemistry amenable to SOP recovery.

• New tenement EL(A)45/4488 cover s target extension to Lake Dora.

Seven new holes (DWRC1449 – 1455) for 873m metres were drilled on EL45/4292 following the grant o f the tenement on 18 June 2014. The 7 holes were a follow up to holes DRC1401 – 1413 ( 1,218m ) drilled previously on E45/3246.

Drill hole information is provided in Table 1 below. The table includes data for holes DRC14 01 – 1413 reported in June for reference.

Results & Conclusions

Brines recovered from recent drill holes are relatively low in Total Dissolved Salts ( TDS ) indicating they are well under saturation levels , presumably due to incoming surface runoff. While the chemistry of the bri nes is favourable in terms of K: Mg, SO 4 :K and Na: K ratios, the dilution of the Palaeo channel brines by fresh ground water percolating from the margins of the valley significantly reduces the Potassium Sulfate ( SOP ) content of insitu brines . While d ilution is not ideal, favourable evaporation conditions in the region counteract the dilution effect of surface water s to a significant degree .

From the data in Appendix 1 it can be seen that the brine concentrations (TDS) also varied considerably between respective drill hole sites. An interpreted location of the Dora West Palaeo channel has been outlined on the basis of the brine (TDS) concentrations obtained.

Additional drilling and brine analysis data is required to provide more defini tive Palaeo channel depth and wid th dimensions and is somewhat subjective being dependent on a lower cut – off representing commercial potential.

From the preliminary data available and using a cut – off figure of 2g/litre Potassium ( K ) or 4.46g/litre SOP ( K 2 SO 4 ) the Palaeo channel width in the Dora West prospect is approximately 6 km . The Palaeochannel appe ars to transect the northwest/southeast ( NW/SE ) length of the tenements (~25km). Brine flows were generally low until t he holes reached around 60m vertical depth and continued to improve (cumulatively) with the depth penetration thereafter.