INDEPENDENCE GROUP NL SUSTAINABILITY REPORT 2017

EXPLORATION The discovery of new resources creates the greatest value for IGO and, in turn, our stakeholders. As a result, IGO’s primary focus is on exploration. However, the period between discovery and mine production is rarely quick. Nova was an exception with only five years between the two events. Often the process takes much longer. As a consequence, IGO also looks to accretive mergers and acquisitions. Typically, mergers and acquisitions create lesser overall value. However, they do provide relatively quick access to cashflow. As a result, IGO has and will continue to explore both options to grow the business. In FY17 our new business activities were focused on the consolidation and growth of our exploration landholdings in the Fraser Range and Lake Mackay regions. Both regions are relatively under-explored and are highly prospective. In December 2016, IGO acquired Windward Resources Ltd (Windward) by way of an off-market takeover. Windward was a listed public company holding several tenements in the Fraser Range region. In FY17, IGO also entered into a number of joint venture arrangements with exploration companies including Sheffield Resources Limited (Sheffield Resources), Buxton Resources Limited (Buxton Resources) and Orion Gold NL (Orion Gold). IGO Mineral Tenements Units 2016 2017 Prospecting licences ha 2,945 2,480 Exploration licences ha 964,100 1,596,600 Mining leases ha 49,404 49,254 Miscellaneous and other licences ha 286,969 286,969 Freehold ha 569 1,329 Total* ha 1,303,987 1,936,632 Exploration is core to IGO’s business development strategy. We remain committed to our search for opportunities to increase our portfolio. To this end, IGO continues innovative studies on prospectivity designed to increase IGO’s probability of delivering exploration success. MINERAL TITLES In FY17 IGO’s total landholding under tenements increased from approximately 1,304,000ha to 1,936,000ha. The significant increase in land tenure was through the acquisition of Windward Resources and joint venture agreements with Orion Gold, Buxton Resources and Sheffield Resources within the reporting period. At the end of FY17, exploration licences represented the majority of mineral tenements held by IGO, followed by miscellaneous licences (which includes general purpose leases). The number of exploration licences held by IGO for FY17 represents an increase of 66% on FY16, with no significant increases to mining leases or miscellaneous licenses. A breakdown of total landholdings for FY16 and FY17 is presented below. OVERVIEW FOCUSED ON AREA SELECTION AND GROWTH * Including joint venture landholdings. 42 — IGO SUSTAINABILITY REPORT 2017