INDEPENDENCE GROUP NL ANNUAL REPORT 2017

Directors' report 30 June 2017 (continued) Operating and financial review (continued) • The Jaguar Operation, 100% owned, is located 60km north of Leonora and 300km north of Kalgoorlie in Western Australia and was acquired by the Company in 2011 through the acquisition of Jabiru Metals Limited. The Jaguar Operation comprises approximately 475 square kilometres of tenements situated on tenure that hosts a corridor of prospective stratigraphy. The prospective corridor has hosted three economically viable volcanogenic massive sulphides (VMS) ore bodies. The first deposit discovered was Teutonic Bore in 1976. The Jaguar deposit was discovered in 2002 (now mined out), approximately 4km south of Teutonic Bore. All mining is from the Bentley deposit located another 4km south of Jaguar, which was discovered in 2008. The Operation now consists of the Bentley zinc-copper-silver-gold underground mine, the Jaguar processing facility, administration infrastructure and the accommodation village. All ore is processed at the Jaguar concentrator, producing both a copper concentrate and a zinc concentrate, which is trucked to the port of Geraldton for export. The copper concentrate contains significant levels of silver and gold as by-products, which attract precious metal credits that contribute significantly to the Group’s revenues and cash flows. The zinc concentrate has minor amounts of silver in its concentrate. The Jaguar Operation has more recently undergone a number of value enhancement programs, one of which has demonstrated possible additional value through the discovery of the Triumph ore deposit, which pre-feasibility studies indicate will extend the Jaguar Operation’s mine life to at least 2022. In addition, a new lens, the Bentayga lens which is a down plunge of the Arnage lens at the Bentley deposit, has been discovered with a number of high grade intersections. • The Long Operation, 100% owned, located near Kambalda in Western Australia. The Company acquired the Long Operation from BHP Billiton Nickel West Pty Ltd (BHPB Nickel West) in September 2002. The mine was successfully re-commissioned in October 2002 and has been operating successfully and safely since then. Since recommissioning, and through to 30 June 2017, the Long Operation has mined 3.4Mt ore for 133,000t of contained nickel metal and has achieved exploration success with the discovery of the McLeay (2005) and Moran (2008) ore bodies. At the time of purchasing the Long Operation, the Group entered into an offtake agreement with BHPB Nickel West whereby the ore produced from the mine is delivered to the adjacent BHPB Nickel West Kambalda Nickel Concentrator for toll treatment and production of nickel concentrate. The current offtake agreement with BHPB Nickel West expires in February 2019. Based on current life of mine plans, the Long Operation will reach the end of its Ore Reserves and cease mining operations towards the end of FY18. The mine life has not been able to be extended due to recent near mine drilling and exploration programs being unsuccessful. The Company currently expects the mine will go into Care and Maintenance and to continue exploration. • The Nova Operation, 100% owned, was acquired as a development stage project via the acquisition of Sirius Resources NL (Sirius) in September 2015. Sirius was an ASX listed minerals exploration and development company with a key focus on the development of the Nova Project, located east of Norseman in Western Australia. The Nova Operation comprises an underground mine consisting of two orebodies, Nova and Bollinger, as well as a 1.5Mtpa processing facility that will produce a nickel concentrate and a copper concentrate, and associated infrastructure. Significant progress on Nova was achieved during FY17, with commercial production declared with effect from 1 July 2017, and progression of the ramp up of mining and processing activities towards the 1.5Mtpa nameplate production capacity. The Company is committed to transformational value creation through exploration discovery. During FY17, the Group has continued to build and develop its unique portfolio of highly prospective brownfields opportunities and belt scale greenfield projects. Key work activities completed during this period include: Independence Group NL 3 34 — IGO ANNUAL REPORT 2017 DIRECTORS’ REPORT 30 JUNE 2017 (continued)