Three Phase Plan for Growth

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Phase 1: Swift Low Cost Cash Flow

Adjacent to the Orient Well open pit and close to infrastructure lies potential for + 3,000,000t of gold mineralised laterite. More than 500,000 tonnes are already drilled on 10mX10m grid spacing and sampled at one metre depths.

Laterite, varying from 1 to 7 metres in thickness, covers an area of 1.5 km² in the Orient Well area. A total of 7% of this area has already been exploited @ a +1.5g/t cut off grade.

The laterites have no waste overburden and grade from 0.3 to 1.5 g/t un-mined. The current data is non digital and therefore the database is being updated and incorporated with the results of the current grade control infill drilling program. These laterite gold ounces are not within the above calculated resources.

The gold mineralised laterite is freely available to mine on a pre native title granted mining lease. Nex is currently working on grade control plans, government permits and metallurgy to commence mining at the earliest.

Laterites provide a low cost high profit mining option for Nex start-up gold production. Gold production from laterites are easy, no waste to move, ore rippable with a dozer no blasting required, soft to crush with excellent heap leach (low cost) ore recoveries.

This will occur at the Admiral, Butterfly location, which includes King, Danluce, Clark and Redlake prospects. For historical non JORC gold estimates please refer to the project page.

The fully drilled (20X20m) prospects, Clark, Red Lake, along with Admiral (extention) and Butterfly open pits to provide the basis for phase 2. Nex expect to convert approximately one third of the non JORC historical resource estimates into JORC reserves within 12 months.

Salient points:

• Recent preliminary static bucket leach testing on a 25mm crush size, carried out by Nex, has recovered + 68% of the head grade of 2.4g/t gold, indicating this style of gold mineralisation has a high probability of successful extraction via heap leach technology.
• The non JORC historical resources were calculated at a gold price of (AUS$) gold price between $300 and $550. Gold is now more than $1,150 per ounce.
• The original open pits were mined when the gold price sat between (Aus) $240 and $400 per ounce of gold.

The author has high confidence in these resources even though they are classified as non-JORC (Joint Ore Reserve Committee (AIMM)) for the following reasons:

• They are classified as non-JORC because much of the drilling data is pre-digital in age with the data only preserved on paper cross sections and no record of the QA/QC required for JORC classification.
• The drilling spacing between holes is very close, between 10 X 10m and 25 X 25m.
• There is a lot of confidence provided by this data because the ore bodies are of lower grade and do not rely on 1 or 2 better cross sections.
• Most of the drilling cross sections, provided in the dataset, display gold mineralisation.
• Geostatistical analysis, (probability plots etc.), of the assay population suggest that the data is legitimate.

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