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1 ASX ASX ANNOUNCEMENT ANNOUNCEMENT APRIL APRIL PACIFIC BAUXITE TO ACQUIRE NEW BAUXITE PROJECT For personal use only IN SOLOMON ISLANDS HIGHLIGHTS Pacific Bauxite to expand its DSO-prospective bauxite project area in the Solomon Islands via acquisition of a new project. The Company s Solomon Islands JV has received conditional approval for a new Prospecting Licence on the western end of New Georgia Island, known as the Noro Bauxite Project. Pacific Bauxite will now proceed to complete standard land access negotiations with traditional land owners, to enable commencement of exploration. Historic exploration in the area indicates widespread DSO grade bauxite, similar to that being targeted at the Company s Nendo Bauxite Project. The Noro Bauxite Project has advantageous infrastructure and complements the existing Nendo Bauxite Project. Next phase of exploration at the Nendo Bauxite Project to commence during current quarter proposed exploration activities at both projects fully funded. Pacific Bauxite Limited (ASX: PBX) ( Pacific Bauxite or the Company ) is pleased to announce it has received conditional approval from the Minerals Board of the Solomon Islands Government for the acquisition of the prospective Noro Bauxite Project, in the Solomon Islands. A Prospecting Licence application was made in the name of Australian Pacific Bauxite Pty Ltd, a wholly owned subsidiary of AU Capital Mining Pty Ltd, a joint venture between Pacific Bauxite Limited (50% ownership and operator) and private Australian entities. Conditional approval has now been granted for the Prospecting Licence, which covers the Noro Bauxite Project, situated on the western end of New Georgia Island (see Figures 1 and 2). The Company believes the Noro Bauxite Project is prospective for large tonnage, DSO, bauxite mineralisation. This style of mineralisation provides the opportunity for inexpensive resource definition and potentially a simple, low cost dig-load-ship style mining operation. The conditional approvals provided by the Solomon Island Government include a Letter of Intent which allows the Company to negotiate standard surface access agreements with traditional land owners and stake holders within the licence area. Upon successful completion of surface access agreements, the documents will be submitted to the Department of Mines, Minerals and Rural Electrification for final approval. The Company intends to commence field exploration activities including auger drilling once the Prospecting Licence is granted, which is anticipated to occur in the current quarter. Level 3, 33 Ord Street West Perth WA 6005 PO Box 186 West Perth WA 6872 t + 61 (8) f +61 (8) e info@pacificbauxite.com.au ACN:

2 ASX ANNOUNCEMENT 27 APRIL 2017 Noro Bauxite Project For personal use only The Noro Bauxite Project Prospecting Licence application covers an area of 236km² and targets uplifted limestone reef, analogous in nature to the Company s lead asset, the Nendo Bauxite Project, also in the Solomon Islands (ASX announcement, 27 September 2016). The Noro Bauxite Project is adjacent to commercial port facilities which offer significant infrastructure advantages for any future export mining operation. The Noro Port can accommodate Handymax and Supermax bulk cargo ships. Exploration over much of the tenure is undocumented, however local geologists have identified significant exploration opportunity for the Company. This early work demonstrated bauxite occurrences related to an ancient uplifted coral lagoon, similar in style to the Rennell, Nendo and Vaghena bauxite deposits within the Solomon Islands. Prior exploration by Australian companies in the early 1970 s identified extensive areas of bauxite mineralisation close to the coast and postulated potential for economic deposits. This work targeted the southern part of the application, north of the town of Munda, and included several hand-auger drilling and test pitting programs (refer to Table 2 for details). The main historical drilling campaign focused on an area of approximately 3.5km by 1km and included 39 auger holes for 101 samples. Substantial tonnages of material were identified, with grades of between 40% and 45% total Al2O3 and 5% to 10% total SiO2. The tenor of this mineralisation is in line with that expected of DSO bauxite in the Asia-Pacific region and comparable to that defined at the Company s Nendo Bauxite Project (Table 1). Nendo Bauxite Project Next Phase of Exploration to Commence The Nendo Bauxite Project has demonstrated extensive areas of potentially high-grade DSO bauxite mineralisation (ASX announcement, 27 September 2016). While much of the project area remains unexplored, the Company has delineated an initial priority target area of approximately 12km by 2km. The Company is pleased to advise that its next phase of exploration at the Nendo Bauxite Project will commence in the immediate future. This phase of exploration will target higher grade areas of bauxite and provide sufficient data to allow determination of an exploration target, and possibly interim resource estimates. Exploration will also continue to test prospective new areas with auger drilling. Level 3, 33 Ord Street West Perth WA 6005 PO Box 186 West Perth WA 6872 t + 61 (8) f +61 (8) e info@pacificbauxite.com.au ACN:

3 ASX ANNOUNCEMENT 27 APRIL 2017 For personal use only Table 1 Nendo Bauxite Project average of auger sample results for Field and Lab assays as reported in ASX announcement dated 27th September Table Notes: Al2O3 = Total Alumina Av_Al2O3 = Available Alumina = Gibbsite Alumina + Kaolinite Alumina = Low Temperature Desilication Product totsio2 = SiO2 = Total Silica rxsio2 = Reactive Silica Figure 1 Project Locations Level 3, 33 Ord Street West Perth WA 6005 PO Box 186 West Perth WA 6872 t + 61 (8) f +61 (8) e info@pacificbauxite.com.au ACN:

4 ASX ANNOUNCEMENT For personal use only 27 APRIL 2017 Figure 2 Noro Bauxite Project Location Bauxite in the Solomon Islands The presence of bauxite in the Solomon Islands has been known since shortly after World War II. However, until recent mining on West Rennell Island by Asia Pacific Investment & Development Limited (APID), plans to develop these deposits has never proceeded further than bulk samples for pilot plant test work. Bauxite in the Solomon Islands is predominantly the favoured gibbsite (low-temperature, trihydrate) type of mineralisation. These bauxite deposits typically occur as discontinuous pockets that fill depressions within the uneven karst surface of the uplifted Pliestocene coral limestone basement. Bauxite profile depths vary considerably due to the uneven and discontinuous nature of the pockets, which are typically marked by fern clearings and not the usual tropical flora. Level 3, 33 Ord Street West Perth WA 6005 PO Box 186 West Perth WA 6872 t + 61 (8) f +61 (8) e info@pacificbauxite.com.au ACN:

5 ASX ANNOUNCEMENT 27 APRIL 2017 For personal use only Exploration activity for this style of bauxite deposits has increased significantly in recent years, largely due to the increase in demand for bauxite to feed the growing alumina demand in China and the Asia Pacific region. In addition to the mining activity on Rennell Island by APID, Australian company South West Pacific Bauxite Pty Ltd recently received mining approvals for its Vaghena Bauxite Project, located approximately 110km northeast of the Noro Project. The Vaghena Project has reported JORC 2012 resources of 30.1Mt at 46.9% Al 2O3 and 3% total SiO2. There remains enormous scope to explore and validate historically reported occurrences of bauxite in the Solomon Islands with a view to establishing a premium grade DSO bauxite operation for export into the Asian market. END For further information, visit or contact: Mark Gwynne Chairman Pacific Bauxite Ltd. P: +61 (8) E: info@pacificbauxite.com.au James Moses Media and Investor Relations Mandate Corporate M: +61 (0) E: james@mandatecorporate.com.au Competent Persons Statement The information in this report that relates to Exploration Results and Targets is based on information compiled by Mr Brett Smith, B.Sc Hons (Geol), Member AusIMM, Member AIG and an employee of Pacific Bauxite Limited. Mr Smith has sufficient experience that is relevant to the style of mineralization and type of deposit under consideration and to the activity which 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 Smith consents to the inclusion in the report of the matters based on this information in the form and context in which it appears. Forward Looking Statements This announcement contains certain statements that may constitute forward looking statement. Such statements are only predictions and are subject to inherent risks and uncertainties, which could cause actual values, results, performance achievements to differ materially from those expressed, implied or projected in any forward looking statements. Level 3, 33 Ord Street West Perth WA 6005 PO Box 186 West Perth WA 6872 t + 61 (8) f +61 (8) e info@pacificbauxite.com.au ACN:

6 Section 1 Sampling Techniques and Data Sampling techniques Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where industry standard work has been done this would be relatively simple (eg reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay ). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information. Historical Auger Drilling Sampling Several exploration campaigns were conducted on the Noro Project in the early 1970 s by Australian company SOL Explorations Pty Ltd. This work is recorded in hardcopy reports retained by the Department of Mines, Minerals and Rural Electrification, in Honiara, the Solomon Islands. Samples were taken from pits (hand dug) or hand auger drills. Typically, the augers were 2 inches in diameter and tested to maximum depths of 8 feet. Some of the early reconnaissance augering only tested to a maximum of 3 feet in depth. Sampled intervals were typically 3 feet maximum. Samples were shipped to Australian Mineral Development Laboratories (AMDEL) in Frewville, South Australia. Samples were dried and split and analysed for Total Alumina (Al3O2) and Soluble Silica (SiO2). Duplicate samples were reportedly stored in Honiara. So possibly there was a field split of the original whole sample. Drilling techniques Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). Hand auger drilling. An auger drill with 3 foot extension rods (1.5 inch diameter) and with a spiral steel bit (2 inch diameter). It is presumed the auger bit was not cased and as such the sample would be subject to contamination from the walls of the drill hole. Drill sample recovery Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Information is not available; however, it is accepted that this method of drilling and the shallow depths, would result in good sample recoveries. 1

7 Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. Logging Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. Sub-sampling techniques and sample preparation Quality of assay data and laboratory tests If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels Samples were logged by a geologist. Information includes colour, moisture, texture and content of the soil material. Duplicate samples were reportedly stored in Honiara. So possibly there was a field split of the original whole sample. There is no record of the methodology for this sampling. Samples would have been wet/moist until dried in the laboratory in Australia. It is assumed the sample grain size of the soil would have been very fine and that the analysis of the sample would have been a good/fair representation of the grade of that sample. No information is provided for this criteria. The reporting of standards and quality control measures in the 1970 s is considered substandard to that required today. 2

8 of accuracy (ie lack of bias) and precision have been established. Verification of sampling and assaying The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data. No information is provided in the historical reports for this criteria. Location of data points Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control. Location of sampled sites are very descriptive and no real-world coordinates have been provided. Caution is required with respect to the location of samples and targets within the historical reports. In general, the description of the areas and their location with respect to major landmarks is considered reliable. Data spacing and distribution Orientation of data in relation to geological structure Sample security Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied. Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. No information is provided in the historical reports for this criteria. Auger drill hole spacing is consistent with exploration that would be considered reconnaissance in nature. Wide-spaced vertical hand-auger drilling was completed. No directional bias was identified. The measures taken to ensure sample security. No information is provided in the historical reports for this criteria. 3

9 Audits or reviews The results of any audits or reviews of sampling techniques and data. No information is provided in the historical reports for this criteria. Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section.) Mineral tenement and land tenure status Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. Secure mineral tenure has yet to be granted. A Prospecting Licence application was made in the name of Australian Pacific Bauxite Pty Ltd, a wholly owned subsidiary of AU Capital Mining Pty Ltd, a joint venture between Pacific Bauxite Limited (50% ownership and management) and private Australian entities. The conditional approvals provided by the Department of Mines, Minerals and Rural Electrification consists of a Letter of Intent which allows the Company to negotiate Surface Access Agreements with traditional land owners and stake holders within the licence area. Upon successful completion of surface access agreements, these documents are submitted to the Department of Mines, Minerals and Rural Electrification for final approval. Exploration done by other parties Acknowledgment and appraisal of exploration by other parties. Several exploration campaigns were conducted on the Noro Project in the early 1970 s by Australian company SOL Explorations Pty Ltd. This work is recorded in hardcopy reports retained by the Department of Mines, Minerals and Rural Electrification, in Honiara, the Solomon Islands. 4

10 Geology Deposit type, geological setting and style of mineralisation. The style of mineralisation is bauxite as a residual soil over ancient limestone reef (karst environment). Such deposits are also known as Karst or carbonate bauxites and are well documented throughout tropical and sub-tropical regions. These deposits are formed by lateritic weathering and residual soils (clay) over or interbedded with limestone. Typically, deposits consist of low temperature gibbsite (trihydrate or tropical bauxite). Drill hole Information Data aggregation methods Relationship between A summary of all information material to the understanding of the exploration results including a tabulation of the following information for all Material drill holes: o easting and northing of the drill hole collar o elevation or RL (Reduced Level elevation above sea level in metres) of the drill hole collar o dip and azimuth of the hole o down hole length and interception depth o hole length. If the exclusion of this information is justified on the basis that the information is not Material and this exclusion does not detract from the understanding of the report, the Competent Person should clearly explain why this is the case. In reporting Exploration Results, weighting averaging techniques, maximum and/or minimum grade truncations (eg cutting of high grades) and cut-off grades are usually Material and should be stated. Where aggregate intercepts incorporate short lengths of high grade results and longer lengths of low grade results, the procedure used for such aggregation should be stated and some typical examples of such aggregations should be shown in detail. The assumptions used for any reporting of metal equivalent values should be clearly stated. These relationships are particularly important in the reporting of Exploration Results. Bauxite is aluminium-rich ore that is used for aluminium production. No information is provided with respect to accurate auger hole location within the historical reports. All auger holes were vertical. Several campaign phases of auger drilling were conducted. Some of the early phases were a maximum of 3 feet in depth. The main auger programme, targeting a specified area, tested up to 8 feet in depth.. Not applicable to this report The bauxite deposits are flat lying. 5

11 mineralisation widths and intercept lengths If the geometry of the mineralisation with respect to the drill hole angle is known, its nature should be reported. If it is not known and only the down hole lengths are reported, there should be a clear statement to this effect (eg down hole length, true width not known ). Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts should be included for any significant discovery being reported These should include, but not be limited to a plan view of drill hole collar locations and appropriate sectional views. Balanced reporting Other substantive exploration data Where comprehensive reporting of all Exploration Results is not practicable, representative reporting of both low and high grades and/or widths should be practiced to avoid misleading reporting of Exploration Results. Other exploration data, if meaningful and material, should be reported including (but not limited to): geological observations; geophysical survey results; geochemical survey results; bulk samples size and method of treatment; metallurgical test results; bulk density, groundwater, geotechnical and rock characteristics; potential deleterious or contaminating substances. Further work The nature and scale of planned further work (eg tests for lateral extensions or depth extensions or large-scale step-out drilling). Diagrams clearly highlighting the areas of possible extensions, including the main geological interpretations and future drilling areas, provided this information is not commercially sensitive. True total depth of these deposits have not been tested or recorded, unless the soil depth to basement was less than the length of the auger. Appropriate diagrams have been included in the announcement. The quantity and quality of historical exploration is accurately portrayed in this report. Exploration at Noro is expected to commence as soon as title is granted for the Prospecting Licence currently under application. Initial work will focus on areas with known bauxite mineralisation and include Auger Drilling and hand-dug test pits. 6