IGO Interactive Annual Report 2018

Exploration activities increased during FY18, including extensive regional airborne electromagnetic (EM) surveys across the Fraser Range utilising SpectremAir, the world’s most powerful airborne EM system, and the completion of Australia’s largest ever hard- rock 3D seismic survey, which has imaged 300 cubic kilometres of geology around the Nova- Bollinger deposit. Other key exploration activities include extensive regional aircore drilling, to map the geology under cover and for detecting geochemical anomalies, regional ground gravity surveys, an audiomagetotelluric survey, and extensive ground moving loop EM surveys. Recently IGO initiated the use of Low- Temperature SQUID EM, which is a superior deep-penetrating ground EM system. Numerous moving loop EM conductors and combined drill hole geology and geochemistry anomalies require follow-up drill testing in FY19, both proximal to Nova and elsewhere in the Fraser Range. Diamond drilling was also completed on a number of targets including Andromeda (formerly called Pygmy) and Phoenix prospects, the latter of which is immediately west of Nova. Downhole EM was completed in all diamond drill holes. Follow-up drilling is required on both Andromeda and Phoenix. At Andromeda, significant copper and zinc mineralisation was intersected in the first holes drilled to test a strong EM anomaly. The second hole, 18AFRD004 1 , intersected 29.9 metres grading 1.36% copper, 2.51% zinc, 0.35 grams per tonne gold, 19.9 grams per tonne silver (the true width is unknown at this early stage). A third hole tested a stronger part of the EM conductor, approximately 100 metres north of the above intersection, with final assay results pending. Another highlight was the identification of several magmatic nickel-copper sulphide prospects on the Nova mining lease that require follow- up downhole EM surveys and diamond drill testing. LAKE MACKAY JOINT VENTURE - NORTHERN TERRITORY Base Metals-Gold Project (IGO Manager and Option to Earn 70%) The Lake Mackay Joint Venture with Prodigy Gold (formerly ABM Resources) is located 400 kilometres northwest of Alice Springs. The JV has approximately 7,600 square kilometres of granted exploration licences and a further, approximately, 5,200 square kilometres of licence applications over an unexplored Proterozoic terrane, characterised by polymetallic base and precious metal mineral systems. Exploration is at an early stage and, until recently, has been limited to a single tenement. Work programs during FY18 included diamond drilling at the Grapple Prospect, where reverse circulation drilling in FY17 led to the discovery of copper- gold (zinc-lead-silver-cobalt) mineralisation. The diamond drilling in FY18 intersected the best mineralisation discovered to-date, with a highlight being hole 17GRDD001 2 : • 11.4 metres grading 7.9 grams per tonne gold, 21 grams per tonne silver, 0.8% copper, 1.1% zinc, 0.5% lead and 0.1% cobalt from 284.9 metres; • including 3.5 metres grading 18.3 grams per tonne gold, 14 grams per tonne silver, 1.1% copper, 0.3% zinc and 0.2% lead from 288.8 metres; • 14.4 metres grading 1.8 grams per tonne gold, 6 grams per tonne silver, 1.1% copper, 0.3% zinc, 0.1% lead and 0.03% Co from 348 metres; • including 2 metres grading 7.2 grams per tonne gold, 1 gram per tonne silver, 0.2% copper and 0.1% zinc from 348 metres. Elsewhere on the project, ongoing regional soil sampling is delivering encouraging polymetallic geochemical anomalies that require follow- up in FY19. In addition, ongoing regional Spectrem airborne EM surveys are delivering anomalies for ground EM follow-up and drilling. 1 See ASX Release – 2018 Mineral Resources and Ore Reserves Update dated 26 July 2018. 2 See ASX Release - Lake Mackay JV – Grapple Prospect Drilling Update dated 18 September 2017. 22 — IGO ANNUAL REPORT 2018