INDEPENDENCE GROUP NL ANNUAL REPORT 2017

LOCATION 300km north of Kalgoorlie, 60km north of Leonora, Western Australia PRODUCT Copper (Cu), Zinc (Zn), Silver (Ag), Gold (Au) MINING Owner operated underground mine PROCESSING METHOD Single stage crushing, SAG/Ball milling, differential flotation and filtration SALES Through offtake agreements with various parties FY17 PRODUCTION 32,638t Zn 4,565t Cu 1,376,521oz Ag 2,532oz Au contained in 88,444t of zinc and copper concentrate FY17 CASH COSTS A$0.76/lb Zn RESOURCES 1 (in-situ metal) 364,000t Zn 55,000t Cu 18Moz Ag 90,000oz Au RESERVES 1 (in-situ metal) 161,000t Zn 16,000t Cu 8Moz Ag 36,000oz Au ESTIMATED MINE LIFE 3-5 years GROWTH POTENTIAL Jaguar Value Enhancement Study Bentayga Discovery 1 See Resources and Reserves section on pages 23 to 30 of this report BACKGROUND IGO acquired and commenced management of the Jaguar operation in 2011. Since FY14, mining has been solely from the Bentley mine and processed through the Jaguar concentrator to produce a copper concentrate rich in silver and gold credits, plus a high-grade zinc concentrate. FY17 PRODUCTION A total of 444,700t (FY16: 497,751t) of ore at 8.16% Zn, 1.28% Cu, 137g/t Ag and 0.58g/t Au was mined from the Bentley underground mine in FY17. In addition, advancement of 2,046m of capital development was undertaken. The processing facility treated 443,485t of ore at 8.27% Zn, 1.30% Cu, 134g/t Ag, 0.52g/t Au (FY16: 505,578t of ore at 8.90% Zn, 1.70% Cu, 128g/t Ag, 0.75g/t Au). Metal production was 32,638t Zn (FY16: 39,335t), 4,565t Cu (FY16: 7,412t), 1,376,521oz Ag (FY16: 1,603,565oz), 2,532oz Au in 88,444t of concentrate. Both zinc and copper concentrate production were below FY17 guidance. BUSINESS IMPROVEMENT A major focus for Jaguar over the past year has been the feasibility study of the Triumph deposit and the Jaguar Process Plant Value Enhancement Study to produce a third product from the Jaguar Operation, being a high precious metal (HPM) concentrate. Both projects aim to increase the operational cash flow and mine life to 2022. All permitting and regulatory approvals have been obtained and the projects are awaiting final internal approvals. NEAR MINE EXPLORATION The discovery of a new massive sulphide lens named Bentayga was made in FY17 and is situated 250m to the south of the Arnage lens at a depth of approximately 800m below surface. Drilling is continuing around the high-grade core of Bentayga to deliver an economic envelope for mining feasibility studies. Exploration is set to continue by defining the massive sulphide extents and possible extensions of Bentayga at depth and to the south. Additional near mine exploration is planned at Triumph to test down plunge continuation and potential mineralisation directly below Stag lens. Previous work has focused on the delivery of a reserve for the Stag lens with limited focus on a potential repetition of Stag lens mineralisation at depth. JAGUAR OPERATION ZINC-COPPER-SILVER IGO 100% 20 — IGO ANNUAL REPORT 2017