gryphon melanesia targeting world class gold/copper

Gryphon Melanesia

Commercial in Confidence 1

Gryphon Mining & Energy Melanesia Pty Ltd ACN 607 077 654

This presentation, memorandum of information or advisory circular (“document”) is intended only for “sophisticated investors” outside of the USA, under the relevant definitions of Chapter6 ASIC regulations or a “wholesale client” under Chapter 7 of the relevant ASIC regulations or “self-certified sophisticated investors” in the form of Schedule 5 Part II of the UK FinancialServices and Markets Act (Financial Promotion) Order 2005 or High Net Worth individuals pursuant to the UK Financial Services and Markets Act 2000 (Financial Promotion) Order 2001or holders of Financial Services licences and qualified investors under any relevant legislation in any jurisdiction. Any investment into The Company or Companies should be regarded asspeculative and any investors should carefully consider their financial position with the aid of professional advisors unless they are regarded as “sophisticated investors” in the internationalsense of the phrase. You should seek independent legal and professional financial advice before making any investment in the Company or Companies especially to investigate anyrelevant regulations that may disqualify either you or this document from being distributed or perused. This document is not intended for prospective investors and does not purport toprovide all of the information an interested party may require in order to investigate the affairs of The Company or Companies or referenced second or third parties. This presentation doesnot attempt to produce profit forecasts for The Company or Companies or referenced second or third parties and should not be relied upon as a forecast or as a basis for investment intoThe Company or Companies or referenced second or third parties. It may present details of scoping studies and does not present and should not be construed to present financialforecasts for potential shareholders or investors. The conclusions reached in this document are based on market conditions at the time of writing and as such may not be relied upon as aguide to future developments. The Company or Companies or referenced second or third parties does not own nor control any resources or reserves at the time of publication. Theinformation herein is provided to recipients on the clear understanding that neither The Company or Companies or referenced second or third parties nor any of its agents or advisers takesany responsibility for the information, data or advice contained or for any omission or for any other information, statement or representation provided to any recipient. Recipients of thisdocument must conduct their own investigation and analysis regarding any information, statement or representation contained or provided to any recipient or its associates by TheCompany or Companies or referenced second or third parties or any of its representatives, officers, agents or advisers. Each recipient waives any right of action, which it has now or in thefuture against The Company or Companies or referenced second or third parties or any of its representatives, officers, advisers or agents in respect of any errors or omissions in or fromthis presentation, however caused. Unless otherwise annotated or clearly independently certified by Competent Persons, potential recoverable petroleum numbers are estimates only untilthe prospects are evaluated further by drilling and/or seismic and may be unrisked and deterministically derived. This document is the property of The Company or Companies orreferenced second or third parties and it is not authorised for distribution, copying or dissemination to the general public by any means or for any reason whatsoever by parties other thanThe Company or Companies or referenced second or third parties. The recipient of this presentation should take appropriate legal advice as to whether such receipt contravenes anyrelevant jurisdiction’s financial or corporate regulatory regimes, and, if so, immediately destroy this material or return it to the sender. Neither the ASX Limited or the AIM or the LSE or anyother stock exchange or regulatory authority in any jurisdiction takes any responsibility for this document or any conclusions or information herein. As new information comes to hand fromdata processing and new drilling and seismic information, preliminary results may be modified. Resources estimates, reserves, assessments of exploration or production results and otheropinions expressed by The Company or Companies or referenced second or third parties in this presentation or report may not have been reviewed by relevant Joint Venture partners.Exploration and or development or production programmes which may be referred to in this document are subject to several contingencies inclusive of force majeure, access, funding,appropriate crew and equipment and may not have been approved by and relevant Joint Venture partners and accordingly constitute a proposal only unless and until approved. Anypotential mention of listing in foreign jurisdictions or the raising of capital anywhere is subject to various contingencies inclusive of the state of the markets, commodity prices, appropriatesupport and the rules of the jurisdictions involved. This document may contain forward-looking statements. Forward looking statements are only predictions and are subject to risks,uncertainties and assumptions which are outside the control of The Company or Companies or referenced second or third parties. These risks, uncertainties and assumptions include (butare not limited to) commodity prices, currency fluctuations, economic and financial market conditions in various countries and regions, environmental risks and legislative, fiscal orregulatory developments, political risks, project delay or advancement, approvals and cost estimates. Actual values, results or events may be materially different to those expressed orimplied in this document. Given these uncertainties, readers are cautioned not to place reliance on forward looking statements. Any forward looking statement in this document is valid onlyat the date of issue of this document. Subject to any continuing obligations under applicable law and any stock exchange listing rules in any jurisdiction or Financial Regulators’ rules, TheCompany or Companies or referenced second or third parties, its agents, directors, officers, employees, advisors and consultants do not undertake any obligation to update or revise anyinformation or any of the forward looking statements in this document if events, conditions or circumstances change or that unexpected occurrences happen to affect such a statement.Sentences and phrases are forward looking statements when they include any tense from present to future or similar inflection words, such as (but not limited to) "believe," "estimate,""anticipate," "plan," "predict," "may," "hope," "can," "will," "should," "expect," "intend," "is designed to," "with the intent," "potential," the negative of these words or such other variationsthereon or comparable terminology, may indicate forward looking statements.

Commercial in Confidence

2

Disclaimer

Gryphon Mining & Energy Melanesia Pty Ltd ACN 607 077 654


Outstanding Benchmark Value Proposition Gryphon’s arguably closest PNG peer in terms of prospectivity, geological context & tenor of

results to date is ASX listed Gold Mountain (ASX:GMN) with ground in the PNG mobile belt closeto Gryphon’s.

GMN’s ASX market cap. is US$35 million (17.08.21)

Gryphon’s valuation before Pre-IPO raising is c.US$12 million based on Pre-IPO raising of US$6million at US$0.20/FPO Share (post Pre-IPO raising c.$18 million)

The total area of GMN’s PNG tenements granted to date is c.940 km2 nett (c.1,780 km2 inclusiveof a recent application) plus an Inferred Resource in NSW of c.37kOz. valued at c.US$2.0M NPVbased on a gold value of US$1,350/oz.

Market cap of GMN attributable to PNG acreage then is estimated at $33M.

Total area of Gryphon tenements granted to date is c.7,450 km2nett, c.7,700 km2nett inclusive ofan application.

Based on these parameters & estimates :

A clear “see through” comparative benchmarked valuation of Gryphon based on granted PNGacreage is US$260 million before Pre-IPO raising;

A comparative benchmark valuation of Gryphon based on Gryphon & GMN’s total granted plusacreage under application PNG is US$140 million before Pre-IPO raising.

There are many ways to value mineral properties, this is an estimated benchmarked market value comparative method & should notbe used as a basis for investment. Consult your own qualified financial advisor. This is not an offer to invest in Gryphon Melanesia.


4

Where? Focus-New Guinea Mobile Belt

One of the most prospective porphyry copper/gold mobile belts in the world.


5

Context


How? Proven & Emerging Technology

Traditional geophysics have incrementally improved greatly but new technology- ZTEM, 3Dairborne IP (AIIP), ULTRAMAG-DGPR, dronemag, drone LIDAR etc is literallygroundbreaking! New & incrementally improved technology delivers ability to rapidlydevelop well defined prioritised, (often “blind”) drilling targets without unreliable, longterm & expensive ground geochemistry and sampling, inappropriate in the 150” rainfall,deeply leached, rugged terrain of PNG.


Els 2419, 2431, 2444 : 5,040 km2 / 1,250,000 acres

Largely unexplored, major crustal scale lineaments

Significant areas of relatively unexplored ultramafics, someof which may have mineralised lateritic profiles such asRamu Nickel’s deposits along strike

EL 2419 CPR reported 21 major structural hardrock targets,many with probable mineral alteration haloes & concept forprecious & base metal mineralisation associated with theRamu-Markham Suture

Recent CPR recon. stream sediment panned concentratesaveraged > 60 g/t gold

Widespread gold values in stream sediment sampling

ELs 2419, 2431 & 2444 : independent CPR reports palaeo-alluvials over at least 1,000 km2, ranging from 1.7 to 5.3 Bn m3

in volume

Visible gold in palaeo-alluvial concentrates where tested todate

ELA 2431, 17 May 2013 Pilbara Minerals reported :

Alluvial gold deposit with 2M oz potential over 20 km Plan to produce 65,000 oz pa Investment of $4.45 million to deliver 15,000 oz pa Hardrock gold geochem/rockchip anomalies Bulk sampling averaged 2.3 g/m3

Central -High Gold Values/Ni Co potential

EL 2401 Au & Pt 3-6g/t Mostly stream sediment sampling, some hard rock

EL 2401 2,500 km2

Au 0.20-220g/tPt 0.10-39 g/tStream sediment pan cons, some hard rock

EL 2401/ELA 2468 : 2,600 km2/640,000 acres.Gryphon’s focus is on hardrock majorgold/copper/base metal targeting with theintention to farm out prolific alluvial potential.

Early cash flow potential 20,000 oz pa initialestimates, alluvials with hardrock upside

EL2401 hardrock gold chip samples to 38 g/t-MRA & Harmony Gold reports

Biaka/Kanobasi area up to 1,340, 266, 735 ppmCu, Pb, Zn in hardrock chip samples-CPR

EL 2401 & ELA 2468 0.74-2.2 Bn m3 variouslyauriferous palaeo-alluvials estimated fromfield reconnaissance & remote sensing studies-

Recent CPR recon. stream sediment samplesrecorded up to 358 g/t Au, average > 100 g/tAu.

No exploration off the “beaten track”, confinedto easily accessible areas, no comprehensivegeophysical survey work

220 g/t maximum alluvial pan conc. reported-MRACommercial in Confidence

8

Western Group Widespread High Grade Au

Accomplished Board and Management with track record ofglobal identification &/or development of Tier 1 assets

Massive tenement holdings 2 million acres (c.8,000 km2), one ofthe biggest onshore position in PNG- 100% ownership

Tenements relatively unexplored; located in the highlyprospective New Guinea Mobile Belt hosting world classgold/copper operations including the world’s biggest-Grasberg &others such as Ok Tedi, Porgera, Frieda & Star Mountain

Lateritic Ni/Co potential over unexplored ultramafics

Potential for Thermal Aureole Gold (“TAG”-Sukhoi Log, Telfer,Obuasi, Muruntau, Campbell-Red Lake pluton related gold)-analogies drawn with the Ramu-Markham suture & theCalifornian Motherlode and Alaskan Juneau crustal sutures.

Focus on hardrock gold, known quartz veins up to 38 g/t Au &alluvials up to 200 g/t Au

Existing gold & platinum results from readily accessible areas,not based on fundamentals of geology

Broad acre geophysics (ZTEM/Ultramag) strategy to deliverdrilled hard rock discovery results 12 months from surveycommencement

Numerous artisanal alluvial mining, but CPR estimates of 2.5 to7.3 Bn m3 palaeoalluvials & alluvials estimate, no palaeoalluvialexploitation to date


9

Company Overview


10

Raising Pre-IPO US$6.0 Million at US$0.20 a share with one attaching 20c option for every two shares subscribed. Listing planned for late 2017/early2018. Historic expenditure on tenement areas c.US$8 million. PNG : 1 major discovery/4,000 km2 of well explored ground, Gryphon : 8,000 km2 at 100%ownership. Neighbouring package of comparable ground : 1,000 km2 but company market cap AU$35M (ASX : GMN) Top 5 deposits average 40 Moz. gold+ 1 Mt copper credits ie 100 Moz. gold equivalent in basic in-ground metal value.

World class Management with global experience, capable of discovery success & fast tracked development, good balance of corporate, commercial &

technical expertise, acknowledged discovery success in PNG with significant operating experience.

Scale! A strategic acreage position in a truly world class mining province : c. 8,000km2 (c. 2 million acres), in the prolific New Guinea Mobile Belt hosting

such major porphyry deposits as Grasberg (100 Moz), Ok Tedi, Porgera, Frieda, Wafi-Golpu et al. Also prospective for Thermal Aureole Gold (TAG) deposits

(Sukhoi Log, Obuasi, Muruntau, Telfer, Tanami, etc), epithermal quartz stockwork gold & skarn deposits-additional potential in lateritic nickel/cobalt over

unexplored ultramafics.

Significant hard rock ‘company making’ potential : 21 targets defined so far within EL2419 alone, with 8 large ‘Priority A’ targets & interpreted alteration

halos. New generation but proven ZTEM/ULTRAMAG/AIIP/3D IP technology to define hardrock drilling targets & discovery drill in less than 1 year from

survey start; ZTEM now used by Harmony (Kile Teke/Wafi-Golpu), Highland/Anglo (Star Mt), Rio (Watu River, Lorengau) & Niuminco in PNG. Airborne 3D IP

& dromemag, drone LIDAR, DGPR now possible.

Early cash flow potential : CPR report completed on EL2401. Initial high grade alluvial mining target (estimate 30 million tonnes, with a grade range of 1g/t

to 8g/t) plus over 4.7km of quartz vein hardrock gold potential identified. Fast-track plan for JV/Farm-in/tribute miner to start cashflow leaving Gryphon

free to concentrate on company making hardrock targets. (Total of 2.5-7.3 Bn m3 alluvials identified across acreage).

Strategic PNG Relationships & Ownership : Via local groups incorporated as shareholders in Gryphon, the company has developed a strong network of

contacts within the PNG Mining Industry and Government. Sustainability Advisory Council inaugurated to ensure local communities are catered for and

advanced with essential services, health, education et al.

Certainty of Tenure: PNG Mining Law based on Australia’s Mining Law, government may back in at audited pro-rata cost for a minority - no forced

resumption at zero cost, cost-stable regulatory regime, modest 2.0% Net Smelter Royalty, 2%, 0.25-0.5% MRA levy on assessable income. PNG rated better

mining investment destination than NSW, Australia, in latest Fraser Institute rankings of jurisdictions for mining investment

Executive Summary

Gryphon Melanesia Pty Ltd-Australia

El Dorado Mining & Energy Ltd-PNG

EL 2401

EL 2419

EL 2444

EL 2431

Gryphon Melanesia Pty Ltd has contractural rights over 100% of El Dorado, the PNG registered holder of 100% of c.8,000km2 (2 million acres) within the highly prospective New Guinea mobile belt

ELs 2401, 2419, 2431, 2444 already granted, anticipated grant ELA 2468 Q4 2017

Initial global Year One plus Year Two expenditure/rent requirements all tenements total c.US$700,000

Historical information and independent geological reports show the areas under license have :

Hardrock gold potential with historical rock chip gold values up to 38 g/t quartz veining systems

Historical expenditure on tenement areas & relevant environs c.$8 million Demonstrated alluvial/palaeoalluvial gold over vast areas, (2.4-7.4 Bn m3),

recent sampling shows pan concentrate grades averaging over 30 g/t in one area and over 100 g/t in another.

Historical grades range up to over 200 g/t in panned concentrates.

ELA 2468

100%

100%


11

Structure & Status

Pre-IPO USD$6,000,000 private placement of up to 30,000,000 fully paid ordinary shares at USD$0.20, with one attaching option (exercisable at USD$0.20) for every two shares subscribed

Historical expenditure c.US$8 million, very positive results

Planned IPO 2018, anticipated/indicative US$25 million @ US$0.50/FPO minimum

Pre-IPO available to sophisticated and professional investors only

All allocations discretionary including oversubscriptions

Shares on issue include Directors, Promoters, Funders and early Seed investors

Pre-raising valuation US$12.9 million, post Pre-IPO raising : US$18.9 million, post IPO : US$73.3 million


12

Pre-IPO Capital Structure Shares/% Options

Currently on Issue1 64,419,039/68 78,064,869

US$6 million @ $0.20 30,000,000/32 15,000,000

Pre-IPO Total 94,419,039/100 93,064,869

Investment Overview

1 Includes promoters, directors & funders issues

2 Anticipated minimum raising at minimum price, final raising & pricing subject to target definition number & size

Post-IPO Capital Structure Shares/% Options

Anticipated on Issue1 96,502,372/66 93,064,869

US$25 million @ $0.502 50,000,000/34 -

Post IPO Total 146,502,372/100% 93,064,869

July 2017 –Feb 2018 inclusive US$All technical budget items c.+25% contingency

All other items c.+15% contingency

Use of Funds Description Funding (US$)

CPR Data SynthesisFull data acquisition & analysis, remote sensing, integration geophysics $100,000

G&A Social Mapping Consultants, fees, rentals, legals, travel, promo, IPO CPR, prospectus. $1,000,000

Target PrioritisationAeromag, ZTEM, ULTRAMAG

Air/ground geophysics (3D IP/AIIP/DGPR/Lidar) to prioritisehardrock/alluvial targets, pre-drilling logistics, drilling planning

$4,500,000

Pilot Sampling/Alluvial JVs Definition alluvial targets pilot sampling, promo, farmout/JV/tribute deals $400,000

Total Pre IPO All allocations & oversubscriptions on a discretionary basis $6,000,000


13

Use of Funds

John Heugh – Executive Chairman, BSc (Hons-Geology), Cert. Exp. Mgt. (AIM), MAICD,MAAPG, MPESA, MAFAP, MAIPN, MAusIMM,MAWAL. Mr Heugh, a UNE honours graduate,with c. 40 years experience in the resourcesindustry. He has worked for/consulted to Yilgarnfocused gold & base metals explorer, TullochResources (tenements vended in to WesternAreas Ltd), the NSW Geological Survey, Exxon,Ampolex, Central Petroleum, AMAX,Pancontinental, ARCO, Merlin Minerals andmany others in PNG, Indonesia, China &Thailand. His involvement with PNG started in1966 with training Papuan (PIR) Army Cadets. Hehas raised over $600 million in equity, potentialfarmout and hybrid securities capital. As MD &team leader, he has discovered major tonnagesof coal, gas & the first commercial oil discoveryin central Australia (Western Amadeus) for over50 years. He has completed extension courses indrilling engineering with the University of Texas,holds a commercial pilot’s licence & is a keenhunter of feral animals. He is also Executive Vice-chaiman of PetroAfrique Oil & GaS Limited.

Alan Davies - Director, BBus (Acctcy), LLB (QUT),LLM (Syd), MAICD, FCA. Mr Davies has had astellar career in the resources industry.Commencing with Rio Tinto as their ManagingDirector Global Development and Chief FinancialOfficer in 2007 he has held the positions ofPresident International Operations (Iron Ore),Chief Executive Officer (Diamonds and Minerals)and Chief Executive Officer (Energy and Minerals).He holds formal qualifications in Business/Accountancy and Law and is a member of theAustralian Institute of Company Directors as wellas a Fellow of the Institute of CharteredAccountants (Australia). Board positions he hasheld include a Non-executive Directorship of RollsRoyce, the iconic aerospace, nuclear, marine andpower systems company operating in 52countries throughout the world. He is a Directorand CEO of Zambian copper player MoxicoResources Plc, owners of the Mimbula copperdeposit previously owned by Verdanta Resources.Alan has also joined the board of listed ASXLithium player Global Geoscience Limited (GSC).

Peter Swiridiuk – Technical Director BSc (Hons-Geophysics), Dip Ed, MAIG. Mr Swiridiuk, a UNEhonours graduate, has over 30 years internationalexperience with 20 years of PNG focus includingthe discovery of the Frieda River porphyry Cu/Au(2.7 Bn.t 0.42% Cu/0.23g/t Au for 11 Mt Cu & 20Moz Au). He takes credit in the discovery of over12 Mt Cu, 20 Moz Au, 1.5 Mcts diamonds, 15 MozAg,, 12kt Mo, coal & base metals including theBarrick JV’s 2 Bn lbs of discovered Cu. Mr Swiridiukhas participated in the discovery of : Frieda RCu/Au porphyry PNG, Nakru-1 PNG - breccia Au,NPV $291 million; Nakru-2 PNG - discoveryintersections [email protected]% Cu, 73m@1% Cu; SimukuPNG Cu/Au porphyry; Hatta Oman, Shinas &Ghuzayn Oman: VMS Cu deposits; Seppelt (1.5Mcts) & Nabberu Australia diamond pipes; CerroDel Gallo Mexico, Imwauna PNG & theNarrawa/Stormont Tasmania Au/Ag/Bi & basemetals deposit. Mr Swiridiuk has worked, inter aliawith Solgold, Barrick, Coppemoly, Frontier,Highlands Pacific, Vangold, Kings Minerals,DeBeers, Macarthur, New Guinea Gold, PapuanPrecious Metals, Caldedonian Pacific &Quintessential Resources.


14

Who? The Board


15

Board & Management

Shane McBride – CFO/Company Secretary,BBus (Acct), FCPA, FGIA, FCIS, MAICD.Mr McBride has over 30 years experience withASX listed resource companies as an ExecutiveDirector, CFO or Company Secretary includingVimy Resources, Matrix Metals, GlengarryResources,Valiant Consolidated,Zapopan/Pegasus and Metana Minerals which employedover 600 people. Mr McBride is experienced inmanaging organisations from IPO through toproduction. He has been instrumental in theraising of over $100 million in equityplacements, seed capital, bank debt and hybridsecurities and has been involved in themanagement of exploration activities,feasibility studies, project construction and/ormineral production of significant gold,uranium, manganese & copper deposits inAustralia.

Gibson Porkime-Director, B.Min.Eng, PGCert Geothermal Energy, Cert.Fin.Modelling, Grad.Cert. BusinessAdministration QUT, Grad.Dip. Pet.Eng &Dip.Project Mgt. (current). Mr Porkime, aPNG National & resident in Darwin NT, is aprofessional engineer with c.12 yrs.experience in the mining, petroleum,geothermal and government sectors. He hasworked with Newcrest on the PNG Lihir &Barrick Gold Porgera mines. He is aprofessional member of the Society ofPetroleum Engineers, Engineers Australia,the Institute of Engineers PNG and the NewZealand Geothermal Association.

Gregory Malien-Inaugural Councillor of theGryphon Melanesia PNG SustainabilityAdvisory Council BSc. Mr Malien, a geologistby profession & a PNG national resident, holdsa Bachelors Degree in Science (Geology) fromUPNG and has twenty years of experience inthe mineral and oil & gas industries, both inthe private and public sectors in PNG. He hassixteen years of experience with the FriedaCopper-Gold deposits & good public relationswith seven high impact villages of Frieda Riverwith landowners; he has worked both as ageologist and later with the government ofWest Sepik Province on both mineral &petroleum resource policies. He is currentlycompleting a Masters Degree in GIS andRemote Sensing from Unitech.

Gerard Farley +61 408 999 889

Managing Director - Empire Securities Group

[email protected]

Tom Farley +61408 998 201

Analyst - Empire Securities Group

[email protected]

John Heugh +61 427 107 690

Executive Chairman - Gryphon Melanesia

[email protected]

Alan Davies +44 739 117 4475

Director-Gryphon Melanesia

[email protected]

Peter Swiridiuk +61 41 643 199

[email protected]

Technical Director-Gryphon Melanesia

Shane McBride +61 417 938 570

Finance Director, CFO & Company Secretary - Gryphon Melanesia

[email protected]


16

Contacts

Continues


17

Existing Access


18

Infrastructure Development

Gryphon is targeting c.100 Moz gold equivalent deposits in one of the most prospective terranes in the world utilising the mostadvanced developments in sophisticated airborne and ground surveys to dramatically reduce the timeline from exploration toexploitation.

Typical large scale deposits in the New Guinea Mobile Belt average 40 Moz. gold with copper credits to total c. 100 Moz. of goldequivalent metal values in the ground.

Such deposits discovered to date include the world’s biggest gold deposit, ie Grasberg and several in PNG such as Ok Tedi, Porgera,Frieda River, Star Mountains and Wafi Golpu.

Deposits of this magnitude inherently involve many decades of development and production with billions of dollars of expenditureresulting in total NPV values typically being in the multi-billion dollar range and infrastructure costs of c.$0.5 to $1 billion.

Local and regional communities & the sovereign nations concerned need to benefit from mega-mines such as these on an ongoingbasis or the project will fail, sooner or later.

Co-incident with target definition via airborne and ground surveys, drill out of reserves, mine development, commissioning and longterm production, local and regional infrastructure development are key elements.

Commencing initially with detailed social mapping, detailed community needs evaluation and the incorporation of ILGs, as targetdefinition leads to mine development and production Gryphon will, (in conjunction with Development Bank & probably internationalBOT, BOO & BOOT project collaborations), progress infrastructure development starting with local community infrastructure such asclean water, improved communications, medical & educational support, employment training facilities, road and airstriprejuvenation/construction in time leading to major regional works such as river barge loadout facilities, all weather roads, workeraccommodation, medical clinics, educational facilities, warehouses, airstrips capable of handling large transport and passenger aircraftand in some cases possibly rail facilities.

“MINING FOR SUSTAINABLE COMMUNITIES” is indeed the key platform for Gryphon’s project ambitions within Papua New Guinea


19

Geological Setting

Porphyry Copper/Gold deposits occur in convergent continental plate margins or in oceanic/continentalcrust plate collisions (island arc settings) such as in New Guinea illustrated here.


20

Geological Setting

New Guinea porphyry copper/gold deposits frequently host associated Mo, Ag, Pb & Zn ores in breccia, skarn, stockwork & epithermal structures


“Gold reserves of the majors (havebeen) declining 15% over the pastthree years and production is on the

wane.” - Joe Mazumdar, Exploration Insights, as

reported by Michael Quinn, PDAC 7 March 2017

“Discovery exploration has been inthe doghouse for 15 years”, and“many of the established long-goldplays don’t cut-it because even ifgold gets to $US3000/oz, they’re

still uneconomic” - John Kaiser, Kaiser

Research, as reported by Michael Quinn, PDAC 7 March2017

“It is estimated that on average inrecent years, 4% of the world’scopper production capacity falls offthe table each year” and “Copperhead grades are falling along withreserve grades” - Western Copper and Gold

TSX:WRN, as presented by Jeff Desjardins, The VisualCapitalist June 23, 2015 & Value Walk Oct 2016

Why? Exploration Rationale

- as presented by Stephen McIntosh, Rio tinto Citigroup Exploration Conference Sydney June 2016

Instability in the Middle East & Korean Peninsula-gold, the safe haven


22

It is estimated that on average in recent years, 4% of the world’s copper production capacity falls off the table each year.

Recent production blockages include Grasberg New Guinea, Codelco in Chile, Las Bambas Peru, BHP Brazil & new local red tape restrictions in Columbia.

With a lack of new mines in the pipeline, the market will have, as estimated by Wood Mackenzie, a 10 Mt supply deficit by 2025.

Copper head grades are falling along with reserve grades.

The average lead time historically in recent years has been c. 20 years from discovery to production

But low prices continue to hold back new investment

(Western Copper and Gold TSX:WRN As presented by Jeff Desjardins, The Visual Capitalist June 23, 2015 & Value Walk Oct 2016)

Energy & Capital Feb 2016

CRU March 2015

Copper Dynamics

Supply gap

Sep 2017

Identify prioritised high value hardrock and alluvial targets for on-ground development by :

Interpreting all historical geological, sampling and Mining Regulation Authorities data

Evaluating all known remote sensing data (Landsat, aeromagnetics, other imagery), in progress

Utilising remote sensing results to prioritise various highly prospective areas for hardrock and alluvial deposits

Flying closely spaced helimag/ZTEM/ULTRAMAG-dronemag, drone LIDAR to define major hardrock deposits & outline alluvials

Flying VTEM and conducting onground DGPR/3D IP surveys selected hardrock targets to prioritise targets

On ground drilling and sampling of high priority targets

The results of the above will prioritise the targets

Priority A - Company Making Targets-hardrock for additional drilling

Priority B – High Value - JV

Priority C – Medium Value - Divestment of assets-alluvial, lower priority hardrock targets

Potential early smaller scale combined hardrock & alluvial mining development within EL 2401 (Biaka Mining Project) for early cash flow

Use cash flow from early mining development if possible to offset the overall de-risking and exploration strategy, feed development data into exploration models


23

Development/Funding Strategy

Independent geological report completed – Dr Richard Russell

EL2401 :

estimated over 750,000m3

of variously auriferous alluvial material

estimated over 4.7 km of variously gold bearing quartz veins in hard rock identified

historic and company sampling returned results of 0.25g/t to 200g/t gold

Primary mining development target identified for early cash flow


24

2401/2468 Prospectivity

First target mining area – c.60km2 in the Biaka / Kanobasi area

Estimated 30 million tonnes of alluvial gold bearing material

Estimated grades 1g/t to 8g/t

Over 4.7km of hardrock quartz veins strike estimated, up to 500 ppm Au in pan cons., up to 1,340, 266, 735 ppm Cu, Pb, Zn rock chips

Accessible by 2 roads, airstrip and river barge

Low capital, fast track development : Bulk sampling of alluvials Hardrock mapping and sampling Feasibility study Environmental approvals Mining license approval Appoint a JV/tribute miner

Mining plan benefits : Minimal capex and opex Share profit or fixed % of

production In discussions with possible

partners Planned c.20,000oz pa alluvial,

c.8,000oz pa hardrock operationCommercial in Confidence

25

EL 2401 Biaka Mining JV Plan

Topsoil profile Palaeoalluvia

l profile

Palaeoalluvials- widespread, flat lying, low strip ratios < 0.1!

Green River Palaeoalluvial Terrace

-flat-amenable to focused mega-scale operations-generally auriferous where tested


26

EL 2401 Alluvials


27

Hardrock Targets ELs 2419,2431,2444


28

Alluvial Gold ELs 2419,2431,2444


29

Alluvial/Hardrock Gold ELs 2419,2431,2444

Locus of possible hardrock gold and base metals (TAG?) deposits-Ramu Markham Suture

Total alluvial/palaeoalluvial volumes range from 1.77 billion m3 to 5.17 billion m3, preferred median value in excess of 2 billion m3. Where very limitedsampling has been carried out, there is encouraging evidence of visible gold in pan concentrates. Two hard rock plays are recognised thus far in thisarea :

1. Fault-emplaced slices of ultramafic rocks into the metasediments on the northeast flank of the Schrader Mountains. Gold and platinummineralisation appears to be associated with late stage dioritic inrusions on the faulted margins of the ultramafic bodies. River systems draining theultramafic provenances, such as the Tupuka/Kokum and Um systems, are thought likely to be carrying alluvial gold. The deposits on these riversystems are therefore prioritised.

2. The Ramu/Markham Fault system, (a crustal suture analogous to the Californian Motherlode & Alaskan Juneau crustal sutures) where underlyingsediments of the Kabenau Formation are exposed. Mineralising fluids migrating up the Ramu/Markham Fault may have invaded the carbonate andvolcanic facies of the Kabenau Formation, producing precious and base metal mineralisation.

30


Ramu-Markham Suture

Intense modern stream sediment alluvial artisanal mining

Many stream sediment samples show widespread gold values

Some hard rock chip sampling by Pilbara Minerals

Granodiorite/diorite plugs emplaced along lineaments of structural weakness bounding and within previously emplaced mafics/ultramafics

Hardrock gold is thought to be associated with late stage fluids accompanying a series of granodiorite/diorite plugs

Some very fine grained alluvial gold in PNG derived from erosion of much older conglomeratic sediments

Commercial in Confidence31


Harsh terrain & jungle/forest cover in much of PNG : both conventional on-ground exploration & helicopter supported groundoperations difficult, very expensive & frustratingly slow. Gryphon plans major airborne closely spaced modern aeromags followed by“ZTEM” surveys assisted by ULTRAMAG technologies to focus on the discovery of world class company-making hardrock deposits andto delineate areas with the greatest palaeoalluvial potential.

First Quantum Mineral’s Balboa porphyry copper/gold discovery, (Panama-similar jungle cover/weathering profile to PNG) : 4 months from start of ZTEM survey! - “Blind” target, no surface geochem signature, negative aeromag anomaly

Anglo Gold/Highlands Pacific Star Mountain project : recently employed ZTEM as part of a suite of airborne geophysics to site drilling locations.

ZTEM Technology has proven capability to : Progress results from survey commencement to drilled discovery results in less than 12 months Find “blind” ore deposits with no or little geochem signature &/or negative aeromag anomaly Distinguish barren from mineralised structures Find Au/Cu/Mo porphyries, SEDEX base metal, graphite, structurally controlled gold/silver, unconformity uranium, VMS &

magmatic Ni-PGE deposits Penetrate to over 800m

Terrain Profile ELs 2419 &2444


32

Fastrack Hardrock Discovery Plans

South North

33

Gold & Copper Focus

IPO Planned 2018

Scale

c. 8,000 km2 -2 million acres in world class New Guinea Mobile Belt

Strategic relationships with Federal,

Provincial governments

& local communities

Dominant Ownership

Structure-100% of El Dorado, the tenement

ownerEarly cash flow planned from mining deal in area with high grade gold in hardrock &

alluvials

Stable tenement

tenure-PNG Mining Law modelled on

Australian legislation

Fast tracked geophysics

based company making target

hardrockstrategy

Key Takeaways

gryphon melanesia targeting world class gold/copper

Documents