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1 ASX RELEASE QUARTERLY REPORT FOR THE PERIOD ENDING 30 JUNE 2017 Highlights 28 July 2017 R&D Rebate of $2.6 million received. ASX CODE RWD Groundwater licence application for abstraction of 63 G/L of brine per annum submitted to Department of Water. SHARE PRICE $0.185 Completion of Process Water Borefield, Drilling and Flow Testing. Draft Environmental Study Reports received from Environmental and Hydrogeological Consultants in preparation for Environmental Submissions. SHARES ON ISSUE 135,760,396 MARKET CAPITALISATION $25.1M (undiluted) Pilot Pond and Laboratory Seepage Trials in progress. Project Flowsheet/Mass Balance review completed. DIRECTORS & MANAGEMENT LD sufficiently dry for on-lake bore hole and long term trench pumping to recommence. Colin McCavana Chairman Michael Ruane Managing Director Rod Della Vedova Non-Executive Director Daniel Tenardi Projects Director Bianca Taveira Company Secretary KEY PROJECT Corporate Expenditure of $1.5 million was incurred during the quarter primarily on studies related to environmental submissions for the LD Project. Cash on hand at the end of the period was approximately $2.084 million. Shortly after the close of the period the Company received $2.6 million R&D rebate via the Australian Government R&D Incentive Program. Lake Disappointment - LD SOP Project In the March quarter, Reward announced upgraded SOP resource data for the LD Project including: an in situ Mineral Resource estimate of 596 million tonnes of SOP in brines within the sediments of LD; HEAD OFFICE 159 Stirling Highway Nedlands WA 6009 a Drainable (extractable) Resource estimate of 153 Mt of SOP in LD brine averaging kg SOP/m3 of brine; and a shallow (0-6 metres) Resource of 7.48 Mt SOP in brine grading 13.4 kg SOP/m3 brine recoverable by surface trenching. See ASX release 7 February Lake Disappointment Project PO Box 1104 Nedlands WA 6909 ACN ABN T: F: E: admin@rewardminerals.com Environmental Submissions A. Process Water Borefield Development For an SOP output of 400,000 TPA the LD project requires approximately 3.4 GL of low salinity Process Water per annum (100 l/sec). For Environmental Approval of a project the developer is required to demonstrate that an adequate water resource exists and that drawdown of the resource will have negligible or manageable detrimental effect on flora and fauna in the development area. For LD and Reward, establishing the supply and hydrogeological parameters for a Process Water Supply has involved a major exploration and development program. Analysis of the data point to a viable resource being achieved. Licence applications to the DOW are now in final stage of preparation.

2 Two borefields have been identified with different geology but both providing Process Water of around 3,000 mg/litre total dissolved solids (TDS) and with satisfactory chemistry for use in the final SOP crystallisation process. Detailed analysis of water samples recovered from the program is still in progress. Results will be provided as they come to hand. Plans of the two fields are shown in Figures 1 and 2. Cory Borefield is centred around 16 km north of the LD process plant while the Northern Borefield is some 8 km further north. Figure 1 Figure 2 2

3 Locations, hole depths and test pumping details are provided in Tables 1 and 2. An additional four core holes were drilled to variable depths to provide regional geological control. Logging of the cores is in progress and will be reported on when the geological model has been finalised. Table 1 NORTHERN BOREFIELD Hole ID Easting Northing Drilled Depth (m) Ream Ream To (m) Casing Airlift Flow Rate (L/s) Stabilized Constant Rate During Pump Test (L/s) PRODUCTION BORES P P P NA P P P NA 5 LDMR0117PB NA NA LDMR2017PB LDMR0817PB MONITORING BORES P26MB NA NA NA P50MB NA NA 50 2 NA P54MB NA NA 50 NA NA P60MB NA NA 50 NA NA LDMR0117MB NA NA 50 NA NA LDMR2017MB NA NA 50 NA NA LDMR2017MB NA NA 50 NA NA LDMR0817MB NA NA 100 NA NA LDMR0817MB NA NA 50 NA NA EXPLORATION HOLES P NA NA 50 0 NA P14A NA NA 50 2 NA P NA NA 50 0 NA P NA NA NA P NA NA NA P NA NA 50 0 NA P NA NA NA P NA NA NA P NA NA NA P NA NA NA P NA NA 50 2 NA LDMR1517MB NA NA NA LDMR1717MB NA NA NA LDMR2617MB NA NA 50 NA NA STYGOFAUNA MONITORING HOLES LDMR1317STYGO NA NA 100 NA NA P56STYGO NA NA 100 NA NA 3

4 Table 2 CORY BOREFIELD Hole ID Easting Northing Drilled Depth (m) Ream Ream To (m) Casing Airlift Flow Rate (L/s) Stabilized Constant Rate During Pump Test (L/s) PRODUCTION BORES LDRC LDRC EXPLORATION HOLES LDRC NA NA NA 1.8 NA LDRC NA NA NA LDRC NA NA NA MONITORING BORES LDRC1601M NA NA 50 NA NA LDRC1602M NA NA 50 NA NA Table 3 GEOLOGICAL CORE HOLES - REGIONAL Hole ID Easting Northing Drilled Depth (m) Casing LDCH HQ - 95mm 50 LDCH HQ - 95mm 50 LDCH HQ - 95mm 50 LDCH HQ - 95mm 50 B. LD Potash Resource Hydrogeological Modelling During the period, Reward received the final report from Strategic Water Management/Global Groundwater on the hydrogeological parameters associated with the proposed LD SOP operation. Hydrogeological modelling indicated a drawdown of the brine level (Static Water Level SWL) in LD of less than 1.7 metres associated with a brine extraction of 63 GL per annum (400,000 TPA/SOP) even assuming zero recharge over a ten year period. See Figure 3. Assuming an average rainfall for the region of 300 mm per annum (Bureau of Meteorology) the annual recharge of water into LD via rainfall alone is 372 GL per annum or approximately six times the maximum abstraction proposed. From an environmental viewpoint the modelling predicts that the extraction of brine by Reward from LD is unlikely to have any adverse effect on Flora and Fauna existing in the shoreline zone of LD or the Lake development area. 4

5 Figure 3 Numerical Model Output 10 Years Abstraction With No Recharge 5

6 Figure 4 Figure 5 LD Pilot Pond Site 6

7 Figure 6A Pilot Pond 1 First Lift Final Wall Closure Figure 6B Pilot Pond 1 First Lift Trimmed 7

8 Figure 7 Pilot Pond 4 C. Flora/Fauna Base Line Environmental Reporting During the June quarter, Reward received draft reports from Environmental Consultants in respect of: Level 2 Flora Identification/coverage in the Project Development Area. Growth and Evaporative Transpiration parameters for vegetation within the Project Development area including the LD shoreline (Tecticornia) vegetation. Fauna Survey Impact Assessment of Talawana Track upgrade. Stygofauna/Troglofauna occurrence and identification in the proposed LD Process Water borefield sites. Study of Lake Biota and Migratory bird occurrences at LD following record rainfall in January Reward is reviewing the data contained in the respective reports prior to their compilation into the final EPA and DotEE submission documents which are due for lodgement around the end of July

9 Other Development Works Pilot Evaporation Ponds Seepage Trials A key factor in development of a solar evaporation (pond) operation is in sizing the evaporation ponds required hence cost of construction. The size of ponds is obviously related to evaporation rates, overall process recovery and to brine seepage losses from the ponds during the evaporation cycle. Based on results of initial auger hole sampling, Reward selected an area (approximately 3,000 hectares) on the northern fringe of LD for its evaporation ponds. See Figure 4 for proposed ponds layout plan. Geotechnical work by Pendragon Environmental in 2016 indicated a variable sedimentary matrix in the pond area with a stratified sandy gypsiferous layer from 0-1 metre (variable) underlain by a high clay layer from approximately 0.8 metres with potential to form a vertical seepage barrier acceptable for evaporation pond operations. The study also suggested that the composite material derived from trenches 0-2 metres in depth with appropriate drying and compacting would form bund walls of adequate strength and low lateral seepage parameters. testwork and site trial ponds were proposed to confirm these conclusions. However, further Construction of an access causeway and three pilot ponds was undertaken in A further lined pond was installed in June Several design models were to be tested including a pond with an internal plastic membrane around the bund walls to minimise lateral seepage from the pond. The pilot program was halted by flooding in late January 2017, with Ponds 1 and 2 still requiring closure of their fourth bund wall (Figure 5). The first lift of this final wall was undertaken recently. Following compaction a new round of seepage trials will commence. Trimming of the first lift walls on Ponds 1 and 2 has taken place and the bund walls are able to support compacting equipment without problem (Figures 6A and 6B). Pond 4 with the peripheral plastic liner has been completed and filled with brine. Seepage data for this pond is now being compiled (Figure 7). Laboratory Seepage trials using composited site materials and LD brine have provided encouragingly low seepage data. The LD 0-2 metre matrix material has a sufficiently high clay content which should result in low brine seepage rates from the ponds when established and conditioned. Laboratory settling tests indicated favourable (low) settling rates for the matrix material. Subsequent column trials using LD matrix material demonstrated a rapid decline in seepage rates within a two week period to below 5 mm per day and trending toward the target seepage rate of less than 1 mm per day. Follow up of these trials will commence on site shortly with the flooding of the Pilot Ponds. Data from pipe seepage trials currently in progress at a number of locations in the evaporation pond area at LD will be available shortly. In view of the encouraging outcome of seepage mitigation trials to date and the favourable implications for reducing pond construction costs, finalisation of the capital cost of the LD Project has been delayed. Potential reduction of this cost centre is of major significance in the feasibility study for the project. Project Flowsheet Mass Balance Reward has considered a number of process flowsheet options for the LD project over the recent years and has conducted numerous in house evaporation trials to evaluate these options and establish a preferred route to SOP from LD brine. This work has been completed and a Flowsheet and Mass Balance for the total processing route has been developed. Harvest grade expected is approximately 8.8% K and overall K recovery approximately 60% allowing for assumed brine seepage and process losses. 9

10 The Mass Balance calculations have been developed in conjunction with Elemental Engineering Pty Ltd and directly related to results of the laboratory evaporation trials undertaken by the Company. The pilot pond trials in progress on site will provide more definitive data for the assumptions utilised in the Flowsheet/Mass Balance calculations referred to above for inclusion in the project Pre-Feasibility Study. Michael Ruane Director on behalf of the Board Competent Persons Statement This information in this report that relates to Resource Estimation and hydrogeology is based on information compiled by Mr Robert Kinnell, a hydrogeologist and Competent Person who is a Member of The Australian Institute of Mining and Metallurgy and a Fellow of the Geological Society of London. Mr Kinnell is employed by Strategic Water Management and is a consultant to Reward Minerals and has sufficient experience that is relevant to the style of mineralisation and type of deposit under consideration and to the activity being undertaken 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 Kinnell consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. The information in this report that relates to Metallurgical Flowsheet Design and Analyses is based on information compiled by Dr Geoff Browne, a Competent Person who is a Member of The Australasian Institute of Mining and Metallurgy. Dr Browne is a consultant to. Dr Browne has sufficient experience that is relevant to the activity being undertaken 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. Dr Browne consents to the inclusion in the report of the matters based on his information in the form and context in which it appears. 10

11 Tenement Holdings as at 30 June 2017 Tenement Status RWD Ownership at Quarter End % Interest Acquired During the Quarter % Interest Disposed During the Quarter Lake Disappointment, Western Australia E45/2801 Granted 100% - - E45/2802 Granted 100% - - E45/2803 Granted 100% - - E45/3285 Granted 100% - - E45/3286 Granted 100% - - E45/4090 Granted 100% - - E45/4121 Granted 100% - - E45/4257 Granted 100% - - E45/4258 Granted 100% - - E45/4259 Granted 100% - - E69/2156 Granted 100% - - E69/2157 Granted 100% - - E69/2158 Granted 100% - - E69/2159 Granted 100% - - E69/2902 Granted 100% - - L45/302 Granted 100% - - M45/1227 Granted 100% - - LA46/128 Application 100% - - Dora West, Western Australia E45/3246 Granted 100% - - E45/4292 Granted 100% - - ELA45/4321 Application 100% - - ELA45/4488 Application 100%