INDEPENDENCE GROUP NL SUSTAINABILITY REPORT 2017

LAKE MACKAY PROJECT Early in FY14, IGO entered into an exploration joint venture with ABM Resources NL (ABM). The project includes a 520km 2 exploration licence and a further 6,600km 2 of exploration licence applications. In addition to this, a joint venture with Castile Resources and ABM covering adjacent exploration licence applications of 900km 2 was completed. The Lake Mackay Project area is 450km west-north-west of Alice Springs and is accessed by the Gary Junction Road. The project is within the Great Sandy Desert Bioregion, which is comprised predominantly of semi-arid sand plains and sand dunes. Follow-up drilling of soil anomalies has confirmed primary gold and massive sulphide base metal mineralisation. These encouraging results confirmed the area as a new belt-scale opportunity and led to IGO triggering Phase 2 of its option agreement with ABM in May 2016. By spending $6 million on the project, IGO can earn a 70% interest by May 2020. In October 2016 base metal mineralisation was confirmed during the first drilling program at the Grapple Prospect. The land tenure falls within areas covered by the Aboriginal Land Rights (NT) Act 2006 and access by explorers is covered under various deeds for Exploration with the Central Land Council. All work programs must be submitted to the Central Land Council for approval and meetings are held with Traditional Owners to discuss the proposed activities. Sacred site clearance surveys are also completed by the Central Land Council prior to any on-ground exploration being undertaken. NORTHERN TERRITORY LAKE MACKAY PROJECT (AU) IGO 70% IGO SUSTAINABILITY REPORT 2017— 45