Rex Mineral’s ('Rex') primary objective in the Pine Point Project area is to determine the potential for economic basement-hosted iron oxide - associated copper-gold mineralisation such as that found at Olympic Dam, Prominent Hill, Ernest Henry and Moonta-Wallaroo. These IOCG type deposits are associated with well-defined regional gravity, magnetic and structural targets. The central portion of EL 3874 covers a large (~6 km long) gravity complex bordering the Pine Point Fault Zone, and initial drilling of nine diamond cored holes (previously reported to PIRSA) has demonstrated the occurrence there of complex Olympic Dam style haematitic breccias. These unique breccias occur at relatively shallow depths of 150-200 m and are strongly anomalous in Cu, Au, U and REE. It was also recognised that there could be potential for base metal mineralisation hosted in younger sedimentary rocks on the licence area. Historic Cu+/-Au mines are present at several places within EL 3875 and on the adjacent EL 3874 also held by Rex, and they include the Yorke Valley, Parara, Hillside, Hart and Pine Point mines. During 2008, Rex sponsored a variety of research work undertaken by Adelaide University Honours students on the Hillside prospect features, which consisted of: • Petrological studies of the wall rock alteration, and isotope studies focussed on the provenance and fluid chemistry of ore fluids. • Calcrete sampling for systematic mapping of the areal distribution of subsurface copper anomalism. Following on from a gravity survey undertaken during the 2007-2008 reporting year, 1 vertical and 4 inclined diamond holes for 1588.4 m were drilled by Rex during March 2009 in proximity to the historic Parara mine located to the north-east of Ardrossan township. These holes were sited on subsidiary gravity highs after modelling-based recommendations made by Jim Hanneson of Adelaide Mining Geophysics (N.B. his work was reported in an appendix within the 2007-2008 Annual Report). Basement lithologies encountered are predominantly metavolcanic schists and minor granites, within which only very weak to trace copper mineralisation was observed. However, Rex considered that the drilling results as a whole were sufficiently encouraging to warrant doing further exploration on this prospect. During May-June 2009, a detailed gravity survey was acquired over an area situated just inland from Clinton township. 631 stations were read on 400 m x 400 m grid spacing, closing in to 200 m x 200 m and 100 m x 200 m in places. During July 2009, a 413.7 line km helicopter-borne high resolution aerial magnetic survey was flown over the vicinity of the Hillside prospect along east-west lines spaced 25 m apart, with a nominal 25 m sensor ground clearance. Further deep exploratory diamond drilling was undertaken at Hillside in a continuous campaign utilising two rigs, with 26 holes for 12,699.6 m completed during the 2008-2009 Project year. This drilling of predominantly eastwards inclined holes targeted gravity anomalies identified from the current and previous geophysical surveys, along with interpreted magnetic anomalies defining structures that were believed to have controlled the Cu-Au mineralisation. It penetrated a sequence of weakly altered metasediments intruded by (Hiltaba Suite) granite and granodiorite. A number of major sub-vertical faults were encountered, with associated haematite, chlorite and carbonate alteration. The granite intrusive(s) display variable earthy red haematite, chlorite, carbonate and sericite alteration, and minor steely haematite in fractures and blebs. Trace to massive chalcopyrite, with minor bornite, is present at many levels, as was recorded on the drill core logs. The deepest hole, HDD025, was taken to a TD of 838.1 m, by which point the mineralisation was seen to be thinning markedly. Elevated lanthanide series elements, along with anomalous uranium and cobalt, were detected from assaying of drill core samples, especially for those samples taken in the deeper sections of the drillholes. Cobalt in particular exhibits a strong correlation with copper values. By the end of September 2009, drilling and interpretation had allowed 3 main (haematite-magnetite rich) fault zones containing the Cu mineralisation to be defined more accurately. These fault zones were termed the Dart, Zanoni and Parsee Zones (in turn from west to east). The best mineralised holes at Hillside to date are HDD026, aggregating 268 m @ 0.7% Cu and 0.2 ppm Au, and HDD33W1, aggregating 151 m @ 1.5% Cu and 0.3 ppm Au. Both of these holes were designed to probe the central part of the Zanoni Fault Zone. Another nearby and shallowly eastwards-directed drillhole, HDD016, had been designed to probe the updip part of the Zanoni Zone, but encountered only weak copper mineralisation over the interval 11 to 64 m. It was then drilled through a broad zone of magnetite-bearing schist, gneiss and granite to 360 m, before intersecting a new zone of moderate to strong copper mineralisation within the Parsee Zone. This structure is located on the immediate eastern side of the main Hillside magnetic anomaly, approximately 200 m east of the Zanoni Zone, and it was found to contain appreciable uranium mineralisation. Several such intercepts were made averaging between 100 and 400 ppm U3O8 over aggregate widths of 50 to 80 m, with a maximum hit of 1600 ppm U3O8. In other work completed during the 2008-2009 licence year, 53 shallow vertical aircore holes were drilled to a maximum depth of 24 m to test the concealed bedrock in the Ardrossan and Port Clinton districts. At the former, 19 holes were drilled west of One Steel's operating dolomite pit, whilst at Port Clinton, 34 holes were drilled north-west of the township on the hilltops where known phosphate quarries and/or prospecting pits had once existed around the turn of the century. Lithologies encountered included sandstones and siltstones of Cambrian age, as well as Tertiary limestones and soils. Weak to trace phosphate anomalies were encountered, however, due to Rex's continued success in its drilling at the Hillside prospect, evaluating these targets was considered a low priority. Work completed by Rex on the Pine Point Project during 2009-2010 consisted predominantly of resource definition drilling (RC and diamond) carried out at the Hillside prospect. After six months, this drilling culminated in the public release of a maiden Inferred Mineral Resource estimate for Hillside of 100 Mt @ 0.7% copper and 0.2 g/t gold, which equates to 700,000 t of contained copper and 650,000 oz of gold. In addition, Rex undertook a number of different geophysical surveys that are expanding outwards from Hillside to assist with assessing the remaining parts of the Pine Point Fault Zone for any hidden IOCG mineralisation. Drill testing of these new target anomalies commenced at Parara and is scheduled to continue for another year or so. Details of the activities undertaken are as follows: - acquisition during September 2009 of a detailed airborne magnetic survey (flown along 100 m spaced E-W lines) over the Pine Point Copper Belt, and more detailed surveys (flown along 50 m spaced E-W lines) across Port Julia and Parara, using a sensor mean terrain clearance of 30 m, for a total of 11,477 line km [data to be submitted in 2011]; - drilling of 85 diamond holes at Hillside prospect for 32,901.5 m, and drilling of a further 3 holes at Parara prospect for 691 m; - drilling of 103 RC holes at Hillside for 11,451 m, and drilling of a further 20 RC holes at Parara for 1738 m; - acquisition of a regional, semi-regional to detailed gravity survey throughout both licence areas during May-June 2010 (2088 stations read at spacings varying between 1 km and 200 m) [data to be submitted in 2011]; - gyroscopic surveying of 29 drillholes at Hillside; - acquisition of downhole EM profiles totalling 2890 m within 7 drillholes in the Hillside region; - acquisition at Hillside of 3 lines of moving loop ground EM survey totalling 3.6 line km; - acquisition at Hillside, over the known deposit extent, of an IP/resistivity survey (pole-dipole and 3D arrays) totalling 6.5 line km; - acquisition of two helicopter-borne aerial EM surveys (REPTEM), the first over Hillside (flown along 25 m spaced E-W lines, for 420 line km), and the second over the Pine Point Fault Zone between Hillside and Parara (flown along 200 m E-W lines, for 769 line km); - the ongoing modelling of gravity, magnetic, structural and EM data; and - a continuation of mineral research projects performed by Adelaide University Honours students, involving petrological studies and the conduct of an orientation geochemical survey at Hillside. Work completed by Rex on the Pine Point Project during 2010-2011 consisted predominantly of ongoing resource definition drilling (RC and diamond) carried out at the Hillside prospect. 142 diamond drillholes totalling 65,498 m and 147 RC holes totalling 26,920 m were completed, and 218 holes were gyroscopically surveyed to provide spatial input to the Hillside orebody 3D geological model. This culminated on 27/7/2011 with the release of a second, updated Inferred and Indicated Mineral Resource estimate for the deposit of 217 Mt @ 0.7% copper and 0.2 g/t gold, which equates to 1.5 Mt of contained copper and 1.4 M oz of gold. Also on 27/7/2011, Rex released the results of a conceptual mining study for Hillside. It contemplates a staged development plan, with a minimum 12-year mine life. Stage one production is projected to grow to over 40,000 t copper, 35,000 oz gold and 700,000 t of iron core concentrate (magnetite fines), with annualised production ramping up in Stage two to more than 70,000 t copper, 50,000 oz gold and 1.3 Mt of iron ore concentrate. The study has identified start-up capital cost estimates of between A$650-800m for Stage one, with the second stage self-funded. The results from the study also indicate attractive economics for the project, with estimated cash costs of approximately US$1/lb copper, after by-product credits. Other significant activities undertaken by Rex during the year included: • Compilation and review of historical and recent exploration efforts across the entire area of the tenements. Consultant geophysicist Chris Moore was engaged to perform 3D inversion modelling of linear aeromagnetic and gravity target anomalies, to boost Rex's confidence in choosing where to conduct exploratory diamond drilling. • Completion of a further 9 exploratory inclined diamond drillholes at regional prospects, for a total penetration of 4363 m. At Parara South, up to 0.60% Cu was intersected in silicified hydrothermally brecciated metasediments, disseminated in cavities. No significant mineralisation was found in steeply dipping felsic to mafic metavolcanic rocks at Hillside West, where combined magnetic and IP anomalies were tested. Some encouraging disseminated and semi-massive chalcopyrite was encountered in altered felsic and mafic volcanics and metasediments at the Equis prospect magnetic feature located ~4 km north-west of Hillside. • Completion of 116 vertical aircore holes at regional prospects (2907 m). This drilling was planned to intersect the cover/basement interface, to obtain geochemical samples at the interface and geologically map the basement rocks. Often the Precambrian basement lithology was difficult to determine due to its highly weathered nature. Lithologies intersected included saprolitic to saprock weathered versions of metasediment, gneiss, schist, felsic to mafic intrusive rocks and possible mafic volcanic rocks. Dispersed minor trace metal anomalies in Cu, Ce, Co, Pb and Zn, of the order of 500 ppm maximum, were disclosed. • A trial DHEM survey was conducted in mid-July 2011 in cased hole HDD162, with readings taken over the full length of the hole from a 200 m x 200 m surface transmitter loop. • Development of a preliminary bedrock geochemical dispersion model for Hillside, which will have application to subsurface geochemical exploration elsewhere in the project area. One immediate strategic outcome has been to quantify the optimal hole spacing to use for regional bedrock aircore drilling. • Commencing regional soil geochemical sampling, in areas having interpreted <25 m depth of cover on basement. 272 samples were collected over the Ranald target within the PPFZ, on a 100 m x 500 m grid. The assay results obtained appeared to reflect a basement origin response, indicating that soil sampling is an effective geochemical method locally. • Ongoing modelling of gravity, magnetic, structural and EM data. • A petrological investigation of uranium-bearing mineral phases occurring at the Hillside deposit was carried out by consultant Graham Teale, using a scanning electron microscope at the Adelaide Microscopy Centre, Adelaide University to examine 15 specially prepared thin sections. Primary zone, supergene zone and oxide zone samples were studied. The dominant uranium-bearing phase appears to be coffinite. It is developed in the following textural and mineralogical associations: - replacing and rimming uraninite and pitchblende - as discrete, crystalline grains within clay-phyllosilicate-carbonate gangue - within micro-fractures throughout the groundmass and in fractured quartz - as intergrowths with sericite, clay minerals and altered chlorite - intergrown with chalcopyrite - rimming quartz and pyrite - developing along mineral grain boundaries - intimately associated and intergrown with haematite. In summary, uraniferous minerals tend to be associated with highly oxidised “veins” and carbonate-flooded domains or highly oxidised (hypogene haematite) chalcocite-bornite mineralisation. Uranium minerals were also searched for inside massive chalcopyrite mineralisation, but were not located. There is a wide array of very fine-grained inclusions of trace to rare minerals associated with the uraniferous phases. During 2011-2012, Rex focussed its attention on the Hillside prospect, where encouraging mineralisation reported in previous years culminated in the calculation of an Inferred and Indicated Mineral Resource estimate of 330 Mt @ 0.6% Cu + 0.16 g/t Au + 13.7% Fe, equating to approximately 2.0 million tonnes of copper, 1.7 million ounces of gold and 44 million tonnes of iron ore. Work completed during the year was largely dominated by continuance of the resource, metallurgy and geotechnical drilling of the Hillside deposit. In addition, Rex undertook exploratory drilling of targets beyond the Hillside area that had been identified by regional soil sampling, through performing roadside aircore traverse drilling and diamond drilling. Other regional exploration techniques utilised included IP/resistivity profiling, acquiring semi-detailed airborne magnetic survey coverage followed by detailed helimag surveying, and running DHEM surveys in certain completed drillholes. Baseline environmental impact studies were conducted to inform the mining project planning prefeasibility process. During 2012-2013, Rex continued drilling the Hillside resource for resource assessment, metallurgical, hydrogeological and geotechnical purposes, together with conducting the feasibility studies required to progress intended development of a mining operation at the Hillside deposit. In addition, the company undertook exploratory drilling of targets further away from Hillside area, including some diamond drilling, plus extensive grid-based soil geochemical sampling. On EL 5055 Ardrossan, a summary of new work done then is as follows: • for resource assessment, 139 diamond holes (33,378.5 m) were drilled at Hillside; • for metallurgy sampling, 4 diamond holes (822.4 m) were drilled at Hillside; • for hydrogeological testing, 7 PCD holes (1530 m) were drilled at Hillside; • for geotechnical data, 7 diamond holes (2685 m) were drilled at Hillside; • 17 diamond holes (527.7 m) were drilled at Hillside for tailings dam and infrastructure geotechnical test work; • 1 exploratory diamond hole (427.5 m) was drilled at the Hillside North prospect; • 1 exploratory diamond hole (339 m) was drilled at the Hillside South prospect; and • 1452 regional soil geochemical samples were collected for assaying. On EL 4514 Ardrossan coastal area, a summary of new work done there is as follows: • for resource assessment, 4 diamond holes (1872.5 m) were drilled at Hillside; • for hydrogeological testing, 9 PCD holes (2173 m) including 3 diamond tail extensions (589.9 m) were drilled at Hillside; • for geotechnical investigations for planned infrastructure on Viterra’s property near Ardrossan, 3 diamond holes (66 m) were drilled; and • for geotechnical data, 3 diamond holes (1442.1 m) were drilled at Hillside. On EL 5056 Maitland, new work done comprised the collection of 465 regional soil geochemical samples for assaying. A prefeasibility study (PFS) for developing the proposed mine at Hillside was completed during the fourth quarter of 2012, which reconfirmed the mine model as financially robust, low operational cost and low capital expenditure. The outcomes of the PFS, which defined Hillside as the largest undeveloped open-pit copper project in Australia, are summarised below: • a minimum mine life of 15 years; • a production capacity of 70,000 t of copper, 50,000 ounces of gold and 1.2 million t of iron per annum (100+kt Cuequiv); • processing plant capacity of 15 Mt per annum; • average cash costs (after by-product credits) of approximately US$1.20/lb; • base case pre-tax operating cash flows of A$240m and scope to yield over A$340m; • annual average revenue of A$710m, or A$11b over 15 years; • estimated operating cash flow before tax of A$240m, or A$3.6b over 15 years. During 2013-2014, activities on the Pine Point Project mainly comprised preparing mine design options for the Hillside resource and undertaking a bankable feasibility study. A proposal for the issue of a Mining Lease at Hillside was submitted to DMITRE by Rex in September 2013. On EL 5055, 3434 soil samples from above the Hillside orebody were analysed in situ on a 25 m x 25 m grid spacing using a handheld Delta Innov-X field portable x-ray fluorescence (FPXRF) spectrometric instrument. Another 370 FPXRF soil samples were tested on a 100 m x 500 m grid from above the known historic Westbrook calcrete copper-gold anomaly, where the follow-up also produced anomalous copper values warranting further work. In January 2014, two 3.5 km long E-W lines across the Hillside orebody were surveyed using dipole-dipole IP and audio magnetotelluric (AMT) geophysical arrays. This coverage produced some varied quality results, but a preliminary data interpretation indicated that vertical structures and bodies conducive to electrical charge could be recognised in 2D space.