Penny’s Gold Project

A SEQUENCE OF MAFIC-ULTRAMAFIC VOLCANIC ROCKS WITH INTERCALATED HORIZONS OF FELSIC VOLCANIC ROCKS AND METASEDIMENTS.

The Penny’s Gold Project is located 50km east of Kalgoorlie, Western Australia within the north-northwest trending Gindalbie greenstone belt consisting of a sequence of mafic-ultramafic volcanic rocks with intercalated horizons of felsic volcanic rocks and metasediments.

GOLD MINERALISATION AT PENNY’S OCCURS WITHIN A LOWER ORDER NORTHWEST TRENDING SHEAR

The sequence has been subjected to multiple deformation events resulting in significant folding, pronounced foliation, and a northerly plunging mineral lineation. To the east of the project is the GMQ shear where subsidiary structures are common and locally appear to influence spatial distribution of gold mineralisation, particularly where structures intersect or bifurcate. Outcrop within the project area is poor with the regolith dominated by a deeply dissected laterite weathering profile and the subsequently derived colluvial products.

Gold mineralisation at Penny’s occurs within a lower order northwest trending shear that intersects a northerly trending structure. This structure is interpreted to continue to the north through the project area. To the east of this structure and within the project area lie multiple northerly and northwest trending structures interpreted from reprocessed aeromagnetic data.

During the June 2019 quarter the Company engaged an independent geological consultant to complete a comprehensive geological review of the Company’s Penny’s Gold Project. The review included the collection, collation and interpretation of geochemical (surface and drilling), geological mapping and geophysical datasets (aeromagnetic and electromagnetic surveys) from Company and historical sources.

The review has identified two broad, previously untested areas (refer ASX:ERL “Exploration Projects Update” 11 September 2019) by targeting structurally controlled gold mineralisation comparable to the Penny’s Find open pit mine (now excluded from the Project area), where 18,356oz was recovered by Empire from 138,272 tonnes grading 4.47g/t Au between 2017 and 2018.

Potential for the area has been demonstrated in previous drilling, in particular 1.7km to the north of the Penny’s Find open pit mine where previous drilling intercepted elevated gold mineralisation, e.g. RC hole PFRC10-07 – 4m @ 1.63g/t Au from 32m (refer ASX:ERL “Quarterly Report Period Ending 30 June 2010” 28 July 2010).

Figure 1 – Penny’s Northern Prospects – Highlighting an area of >1.5km strike of geochemical anomalism coincident / proximal to an interpreted fault / shear zone.

Figure 2 – Penny’s Central Prospects – Highlighting an area of >2km strike of geochemical anomalism coincident to an interpreted fault / shear zone.

COMPETENT PERSON STATEMENT

The information in this report that relates to Exploration Results for the Penny’s Project review is based on information compiled and/or reviewed by Shane Tomlinson, who is a Member of the Australian Institute of Geoscientists.

Mr Tomlinson is an independent geological consultant and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”.

Mr Tomlinson consents to the inclusion in the report of the matters based on this information in the form and context in which they appear.