Mineral Resources Estimate: Grade estimations for THM, slimes and oversize have been carried out using ordinary kriging. Grade estimations of mineral assemblage (zircon, rutile, leucoxene and ilmenite) have been carried out using inverse distance cubed. The Mineral Resource estimate has been classified according to the guidelines of the JORC Code (2012), into Indicated and Inferred Resources on the basis of confidence in geological and grade continuity and taking into account data quality (historical nature and lack of QAQC data for some drilling data), data density, and confidence in estimation of heavy mineral content and mineral assemblage.

In general, Indicated Mineral Resources are defined where drill sections are at a spacing of up to 200 m and Inferred Mineral Resources are defined where the drill section are up to 800 m apart. The assigned classification of Indicated and Inferred at the West Mine North deposit reflects the Competent Person's assessment of the accuracy and confidence levels in the Mineral Resource estimate. Cut-off Grade: Image Resources selected a cut-off grade to represent the resource that may be considered for eventual economic extraction, based on the Company's experience as a mineral sands producer.

The Mineral Resource has been reported above a total HM cut-off grade of 2.0%. Mining Factors: In determining the criteria for reasonable prospects for eventual economic extraction, potential mining methods considered are wet dredge mining or dry dozer-trap operations, similar to those commonly and currently in use in HM mining operations both in Australia and globally. It is considered that the West Mine North project has a reasonable prospect of eventual economic extraction when considered in the context of the deposit location and existing infrastructure and taking into consideration the depth, thickness and grades of the deposit.

Metallurgical Factors: Metallurgical scoping test work was completed by Robbins Metallurgical. Produced primary and secondary ilmenite products are of typical chloride grade ilmenite quality. Zircon produced from the West Mine North material contain acceptable levels of TiO2, Fe2O3 and U+Th but contain elevated levels of Al2O3, requiring further gravity processing to reduce to <0.5%.

Based on grade data and recovery data it can be concluded that material from West Mine North when processed will produce products of high quality. To date, the Company considers there are no metallurgical factors which are likely to significantly affect the assumption that the deposit has reasonable prospects for eventual economic extraction.