Ishine International Resources : Quarterly Activities Report

Date: 28 April 2017

The Leonora project area is located in the Eastern Goldfields Province of the Archaean - aged Yilgarn Craton of Western Australia. Rocks of this area are the most ancient on earth and commonly form the core of the world's major continents.

Large nickel laterite deposits on Mining leases M39/878, 879 are situated to the west of the project about 6Km away (Figure 1). Based on regional and local geological analysis, and reviews from historical and Ishine's previous exploration undertaken including data from surface geochemical sampling and shallow drilling programs, this project is prospective for Nickel, Cobalt and Gold.

Figure 1 Tenement Location & Topography

Tenement E39/1582 is located 80 km SW of Laverton, and approximately 55km east southeast of the town Leonora. It is accessible by way of the Leonora to Laverton sealed main road, 40km east of the Leonora and thence 25km south via Minara road that runs approximately 3km to the north of the project. The Glenorn to Yundamindera road and numbers other unsealed truck allow easy access to the tenements.

The project in located on the western side of the Murrin-Margaret Sector of the Eastern Goldfields Province within the Laverton 1:250 000 map sheet.

The Archaean rocks of the Yilgarn Craton are broadly subdivided into granites and greenstones. The granites form large, coalescing, ovoid-shaped regions up to several hundreds of kilometers in length and width, generally separated by narrow elongated 'greenstone belts' composed of ancient volcanic rocks and sediments that have subsequently been deformed and metamorphosed by complex tectonic and mineralizing events. Such processes are believed to have been responsible for the formation of major gold, nickel and base metal deposits in a wide variety of rock-types. Greenstone successions of the Province are divided into elongate terranes based on the regional NNW-trending faults. The Greenstone terranes do not include widespread intrusive granites, and may be further divided into fault bounded domains. The faults and intrusions contribute to a pronounced regional structural trend. These boundary faults are poorly exposed but can be traced as lineaments or breaks, defined by large scale truncations of stratigraphy. The best known terrane is the Kalgoorlie Terrane.

E39/1582 lies on the eastern flank of a relatively open north-northeast plunging anticline that is composed of conformable mafic and ultramafic bodies. It is relatively low-lying with a gentle northeast south-west striking undulation.

The local geology of the project area comprises a basaltic package that has been intruded by differentiated mafic sill, comprising gabbro and dolerite, and felsic porphyry stocks and dykes. The host basaltic package may be pillowed and includes inter-bedded metasediment layers of dark "cherty" shale and slate. All rocks have been extensively weathered and lateritised thence the central and western sectors of the E39/1582 are almost completely covered by ferruginous colluvial sediments.

Figure 2

GSWA 1:100k Geology Map

The Leonora-Laverton region is second only to Kalgoorlie-Kambalda in Western Australia for its number and size of economic gold and nickel deposits. Known gold resources (including historic production), total around 35 million ounces within nine deposits containing greater than 1 million ounces of gold including two deposits in excess of 5 million ounces. Gold mineralisation is associated with pyritic, chloritic and quartz veined tonalite and basalt. Although no significant (> 100,000 oz) gold mineralisation is known in

the area, the occurrence of felsic porphyry dykes close to the margin of Granodiorite and the extensive network of linked trust faults within area are attractive targets that potentially could host gold deposit.

Adjacent to the very west of the project, GME Resources reported in 2007 significant defined lateritic nickel - cobalt resources within tenement E39/1107 (Figure 1), It ndicated and inferred resources for the GME managed Mt Kikenny project area as stated by Sullivan (2006) are:

• Indicated 13.73MT at 1.29% Ni, 0.10% Co

• Inferred 1.38MT at 1.14% Ni, 0.07% Co

  With widely distributed Archaean-aged mafic and ultramafic rock suits across the tenement area, combined with significant mineralisation zones to the west of the project. It warrants further exploration for Nickel, Cobalt and Gold mineralization.

  Recent Exploration/Studies

  Ishine conducted further desktop studies for potential minerals during the quarter. The recent success of NiWest Nickel/Cobalt project provides a new direction for EL39/1582.

• Adjacent Successful Project - Niwest Nickel/Cobalt

NiWest Limited, a wholly owned subsidiary of GME Resources Ltd, holds the NiWest Nickel Cobalt Project. The Project is in the North Eastern Goldfields of Western Australia and is comprised of seven separate deposits located on mining leases. E39/1582 is about 30 to 70 kilometres to the Niwest Nickel/Cobalt project.

Subsection of the project is tabled below: