www.nqminerals.com

MEDIA ANNOUNCEMENT

NQ HELLYER PROJECT UPDATE JUNE 2018

• NQ Minerals progresses, to plan, towards its restart of operations at it Flagship Hellyer

polymetallic project

• The refurbishment actions are now in the 5th month of the 8-month program

• Significant Milestones to June

✓ Hellyer Dredge fully refurbished and launched

✓ Mechanical work 99% completed on the floatation floor

✓ All electrical motors checked, replaced or refurbished at the Hellyer plant

✓ All launders in the float cells replaced or refurbished

✓ General Manager, Commercial Manager and Production manager employed

✓ 50% of operator personnel have previous experience at Hellyer

✓ Full safety management systems implemented

✓ Full environmental system implemented

✓ Commendation from key stakeholders on Environmental planning and innovations

✓ Ball Mill inch tested

✓ First fill materials ordered

✓ Filter press refurbishment and modifications well underway in Japan with the filters to be

shipped next month.

✓ No lost time injuries to date

✓ Excellent Environmental record

✓ Strong community support

The Hellyer project is on track to produce and ship concentrates in late 2018

Figure 1 Hellyer Processing plant

www.nqminerals.com

Figure 2 Hellyer plant - Areas of refurbishment focus

FLOATATION AREA

• Floatation area 99% mechanically completed with only dart valves to be overhauled

• All motors electrically tested

• All float tanks cleaned and refurbished

• Agitators all refurbished and run

• Pipework completed

• The offsite work for flotation launders has been completed, with all launders delivered to site and now installed.

• The final report of process equipment verification has been received from Ausenco. Confirmation of recommended pump changes have been provided and are being implemented onsite.

• Instrument testing has commenced.

• The cyclone distribution manifold has been drafted and is being fabricated to allow for 10 cyclones. This will be installed mid-June. Linings, spigots and vortex finders have been ordered for these cyclones.

• Tower Mills now undergoing refurbishment

www.nqminerals.com

Figure 5 Newly fabricated Launders installed in float cell

Figure 4 Lower float area and Tower mills in background

Figure 6 Refurbished Lead stock tank bridge being craned onto a float tank

Figure 3 Lead/Silver/Gold and Zinc Float cells

www.nqminerals.com

REAGENT AREA

• All reagents ordered

• A risk assessment has been completed on the reagent area to determine specific work required prior to first fill deliveries.

• The flocculant mixing station has been moved and electrical repair work is complete.

• Repair work completed on the wooden reagent bridge.

• Roofing repair work completed on the main reagent area.

• Concrete work underway, including stock tanks and drainage.

• Lighting repairs in the main reagent area have commenced.

• A risk assessment has been completed on the reagent area to determine specific work required prior to first fill deliveries.

• Electrical repair work on the four ventilation fans has commenced.

• Work has commenced on pump repair work and pipeline redirection work and will be completed in June.

Figure 7 Pump Installation

Figure 8 One of the three tower Mills being refurbished

www.nqminerals.com

DREDGE

• The Seabird III Dredge fully refurbished

• Dredge successfully floated 31/05

• Water pumping/Dredging tested early June and now operational

• Coxswain training completed

• Training for the Dredge Pack Software underway

• Former Seabird III dredge operator, re commenced employment at Hellyer and training new

operators

Figure 9 Fully refurbished dredge relaunched and ready for work

Figure 10 refurbished cutter head frame installation

www.nqminerals.com

Figure 11 Dredge computer guidance system installed Dredge operators are now undergoing training and upskilling

Figure 12 One of two new dredge service vessels

BALL MILL

• The Ball Mill is expected to be mechanically complete mid-July

• Ball mill Inch drive tested

• Lube system has been fully refurbished

• Gearbox has been checked and tested

• Electrical motor has been checked and tested

• The ball mill area is due to be mechanically complete on 12th July.

• NDT has been completed on the girth gear teeth.

• Ball mill clutch plates have been ordered

• Metso replaced the trunnion seals of the ball mill on 28/05.

• The cyclone distribution manifold fabrication is ongoing and expected onsite late June

• Spares for the Mill are on stock and located in the well-stocked Hellyer Store warehouse

www.nqminerals.com

Figure 13 Ball Mill clutch plates being replaced

CONCENTRATE HANDLING (filters, conveyors and Concentrate Shed)

• The Ishigaki Filter and Filter parts have been ordered and will be shipped from Japan in July

• CV08 and CV09 conveyors have been installed

• CV06 and CV07 conveyors are progressing

• Fabrication of the stock tanks progress at TEC

• Stock tanks expected to be on site in early July

• Civil works have commenced for stock tanks

• Stock tank bearing assemblies are on order

• Bulka bag bagging system has been ordered and will be delivered in August

• Bulka bags have been ordered for Lead concentrate

• Cladding replacement on the Concentrate shed continues

Figure 14 refurbished Conveyor 8 and 9 to Hellyer Concentrate shed

www.nqminerals.com

THICKENERS AND DEWATERING

• Repair work on the thickener structures completed in May. Mesh and chequer plate work is ongoing.

• Frother crowders for the thickeners have been fabricated at TEC, with installation of one thickener commenced in May.

• Installation of one of the froth crowders has been completed

• Fabrication of new thickener feed wells has commenced at TEC.

• Installation of the second slip ring and cable trays is underway

• New thickener feed well for the pyrite thickener has commenced at TEC

Figure 15 Feed Thickener has had new replacement Frother crowders and has been fully mechanically refurbished.

INFRASTUCTURE (Buildings, control room, MCCs, roads, pipelines)

• Roads have been graded and re sheeted

• Safety and instructive signs have been installed

• Two new bridges on the roads to the tails dam have been engineered and installed

• Specialised guide posts which are activated by moving vehicles and alert native wildlife have been installed

• New Atlas Copco compressors have been ordered and are expected in late august

• Vegetation clearing under and around utilities has been completed

• All transformers have been tested and their oils changed

• Power poles have been inspected and some replaced

• The old Exploration buildings have commenced refurbishment and will be converted to accommodation units for eight personnel

• The HV breaker is being rebuilt and is expected on site late June

• Fire suppression has been installed in the MCCs

• Fire suppression is to be installed on the Mill lube system

• Fire extinguishers have all been replaced

• Overhead cranes have been tested and certified

• All lifting equipment has been certified

• New Pipe poly welding equipment has arrived and is being used on the tails lines

• Tailing dam pipes are being checked and tested with minor refurbishment underway

www.nqminerals.com

Figure 17 Concentrate shed has been reclad and conveyors refurbished

Figure 18 Pipework team welding poly pipe

Figure 16 Overhead gantry crane being tested and certified

Figure 19 Conversion of Exploration offices to accommodation units is underway

www.nqminerals.com

VEHICLES AND MOBILE EQUIPMENT

• New fleet of Hilux utilities have been leased based on a fully maintained basis

• New Merlo Telehandler has been delivered

• 125 foot telehandler has been purchased

• Yard crane has been fully serviced and certified

• Scissor lifts have been tested and certified

• 25ton excavator has been purchased to move dredge moorings

• 4wd Ambulance vehicle has been refurbished and refitted

Figure 20 new leased Merlo telehandler

Figure 21 New Fleet of 5 work vehicles and service vehicles has been delivered on a fully maintained lease agreement

Figure 22 new 125-foot elevated work platform

www.nqminerals.com

HELLYER PERSONNEL

• General Manager, Commercial Manager and production Superintendent, all employed under

Hellyer

• Other technical roles now being advertised

• Programmed Services now providing the permanent operator team under contract

• Over 50% of all personnel have had previous experience at Hellyer

• All personnel have or will be trained and certified for multiple competencies

• Operational work rosters have been planned

Figure 23 Hellyers local workforce are all very experienced and skilled

SAFETY AND ENVIRONMENT

• No lost time injuries to date

• Hellyer Safety Management System implementation underway

• Strong focus on training and development of operators

• No reportable environmental incidents to date

• Clear and concise environmental protocols are now being implemented

• Significant environmental improvements and initiatives have been implemented

• A Tasmanian mining first - Wildlife alert guideposts installed

• Momentous environmental improvement to be realised over the course of the project

• Concerted effort to engage all stakeholders in Tasmania including government, regulators and local

community groups

www.nqminerals.com

OTHER

• The metallurgical accounting system has been created in MS Access. This system will provide a database for storing daily data and provide the required data for the mill operational daily report.

• Hellyer has a very comprehensive and valuable store. The store has now all the critical spares on stock or on order.

• Hellyer On line analyser tested and checked

Figure 26 Hellyer Electric motor replacement spares –

including tower mill motor, dredge motor and Ball Mill motor

Figure 25 All critical spares are either in store are on order for start-up in the Hellyer store

Figure 24 Hellyer has an extensive stores and spare part building