New Age Exploration : Otago South Gold Updte

Otago South Gold Project Update‌‌‌

ASX Release | 31 July 2017

ASX Code | NAE

New Age Exploration Limited ("NAE" or "the Company") provides the following update on its Exploration Program on the Otago South Gold Project in New Zealand.

The following additional soil and rock chip sampling has now been completed on the Mahinerangi and Teviot Permits in Otago:

• 2 new lines over historic gold workings on the Mahinerangi Permit using a man-portable drill with depths up to 6 meters, successfully penetrating thick loess cover in the majority of cases (15 of the 21 man-portable drill holes penetrated loess with the remainder still in loess at 6m depth).

• A number of new lines in the southern part of the Teviot permit where additional conductivity feature targets were identified.

A total of 73 soil sampling lines with 877 soil samples have now been collected and analyzed using a portable XRF instrument. The results of the soil sampling completed are shown in Appendix 1 (Mahinerangi Permit) and Appendix 2 (Teviot Permit). 246 rock chip samples were also collected and analyzed. The 6 soil lines planned in the northern part of the Teviot permit were not able to be completed as track conditions were too difficult to access this area.

The soil and rock chip results are inconclusive in that they have not identified any significant anomalous levels of arsenic (a pathfinder mineral for gold) for follow up exploration.

The pXRF results show that soil sampling the most prominent conductivity highs from the airborne survey flown by Glass Earth NZ Ltd in 2007, within the Lower Greenschist Facies schist, has not been an effective exploration targeting method to date.

The rock chip sample on line 27 on the Teviot Permit with a 193ppm Arsenic result was followed up and it was not possible to reproduce the result from other nearby rock chip or soil samples. The anomalous arsenic result was taken from a quartz-rich schist with a chert protolith and these rocks generally have higher than background arsenic concentrations relative to other local schist types.

Further geological mapping has been undertaken by Dr MacKenzie on both permits. The mapping undertaken to date has better resolved the regional structure of the metamorphic basement rocks but has not identified any significant shear zones that have the potential to host gold mineralisation.

Mapping and petrographic study of the gold-bearing quartz veins in the historic gold workings around Lake Mahinerangi has shown that these appear to be relatively late stage, post-metamorphic, brittle features that are hosted in well defined, high angle, extensional faults. To date there is no evidence of any late metamorphic ductile shearing that would be indicative of any shear zone gold targets.

Due to the results to date and the increased annual permit fees, on 27 July 2017 NAE lodged an application to NZP&M for partial relinquishment of its Prospecting Permit areas as follows;

• Mahinerangi Permit reduced from 418 km2 to 154 km2

• Teviot Permit reduced from 458 km2 to 66 km2

  The 27 July 2017 application retains 25% of the total area of both permits and relinquishes 75% of the total area of both permits. The partial relinquishment application is expected to be accepted by NZP&M in the coming weeks and is expected to reduce the annual permit holding costs from NZ$51,000 p.a to approx. NZ$13,000 p.a.

  NAE Prospecting Permit Partial Relinquishment Application 27 July 2017

  The southern areas retained in both permits contain the most promising ground as;

• The historic workings associated with gold-bearing quartz veins are all located in the southern areas retained.

• The retained areas are the most proximal to known local alluvial gold deposits, such as Gabriels Gully (>0.5Moz Au).

• The retained permits cover the most complex zone of intersecting and converging conductivity lineaments that are oriented NW parallel to significant regional-scale faults and boundary features in the basement rocks (like the Tuapeka Fault zone and textural zone boundaries to the north and south, respectively). Furthermore, using our analogy with the Hyde Macraes Shear Zone, these NW-trending lineaments define the most favorable structural trend and orientation for potential shear zone hosted gold deposits.

To date a total of approximately NZ$112,000 has been spent on the Otago South Gold Project, inclusive of NZ$26,000 in permit fee increases charged by the NZ Government in January. Expenditure on the project is under the budget of NZ$150,000 set for the Initial Exploration Program.

NAE is currently working with Dr MacKenzie and its technical consultants CRL Energy to determine the exploration strategy and work plan that may be most effective to further explore the retained areas. Future work will concentrate on further defining the nature of the schist basement rocks in the area of the southern conductivity lineaments and testing whether their spatial association with historical gold and arsenic bearing veins in this area is related to any pre-existing metamorphic fabric and/or potential ductile shearing of the basement rocks. Further field work will not be undertaken until Q4 at the earliest (after the winter season) and will be contained within a small budget.

COMPETENT PERSON'S STATEMENT

The information in this report that relates to Exploration Results is based on information compiled and reviewed by Dr Doug MacKenzie, who is a Senior Research Fellow at the University of Otago, Geology Department and is a Member and Chartered Professional Geologist of the Australasian Institute of Mining and Metallurgy. Dr MacKenzie has over 20 years research experience in the Otago Schist and related rocks with emphasis on relationships between structure, metamorphism and gold mineralization. Dr MacKenzie has sufficient experience which 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'. Dr MacKenzie consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.

FORWARD LOOKING STATEMENTS

This report contains "forward-looking information" that is based on the Company's expectations, estimates and forecasts as of the date on which the statements were made. This forward-looking information includes, among other things, statements with respect to the Company's business strategy, plans, objectives, performance, outlook, growth, cash flow, earnings per share and shareholder value, projections, targets and expectations, mineral reserves and resources, results of exploration and related expenses, property acquisitions, mine development, mine operations, drilling activity, sampling and other data, grade and recovery levels, future production, capital costs, expenditures for environmental matters, life of mine, completion dates, commodity prices and demand, and currency exchange rates. Generally, this forward-looking information can be identified by the use of forward-looking terminology such as "outlook", "anticipate", "project", "target", "likely", "believe", "estimate", "expect", "intend", "may", "would", "could", "should", "scheduled", "will", "plan", "forecast" and similar expressions. The forward looking information is not factual but rather represents only expectations, estimates and/or forecasts about the future and therefore need to be read bearing in mind the risks and uncertainties concerning future events generally.

New Age Exploration Limited ACN 004 749 508

Level 3, 480 Collins Street Melbourne, VIC 3000 Australia Phone: +61 3 8610 6494

Email: info@nae.net.au