Quarterly Activities Report to 31 December 2017

Hafnium oxide exceeding 99.8% HfO2, and 99.9% (Hf+Zr)O2, was produced using a proprietary process to separate hafnium from zirconium at the demonstration pilot plant at ANSTO.
The modularised build study output is being reviewed and incorporated into an updated project execution and financial model, expected to be released in February.
Upward price movements in the zirconium chemicals and powders have continued. Rare earth magnet material prices have returned to their medium term upward trend.

Continued solid performance sees guidance for the full year lifted to 70,000 to 80,000 ounces of gold at a reduced AISC of A$1,000 to A$1,100.
Site operating cash flow for the quarter was A$4.6M1 (YTD: $22.9M) excluding increase in bullion on hand at fair value of $5.7M.
Quarter Results
- Gold production was above forecast at 16,641 ounces.
- Site operating cash costs were A$840/ounce with all in sustaining costs (AISC2) of A$1,058/ounce.
- Gold sales 13,184 ounces for revenue of A$22.3M at an average price of A$1,694/ounce.
- There were no open forward contracts at 31 December 2017.

The Group’s cash position totalled A$57.7M with A$44.8M in cash and bullion on hand at fair value of A$12.9M, an increase of A$4.4M from the previous quarter.
Gavin Smith welcomed to the Board on election by shareholders.