Bungarra Delivers First Profitable Open Pit Gold Mine at Bullseye s North Laverton Gold Project

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1 Bullseye Company Announcement Bungarra Delivers First Profitable Open Pit Gold Mine at Bullseye s 10 November 2014: The Board of Bullseye Mining Limited ( Bullseye or the Company ) are delighted to announce the positive outcomes of the Company s recent drilling program, resource estimation works and completion of a favourable concept mining feasibility study from the - particularly focussing on the Bungarra deposit. Following the Company s recent 11,000 metre reverse circulation drilling program at the Bungarra deposit, extensive resource estimation works were then undertaken by elite resource estimation specialists, QG Consulting Group, followed by a concept mining study undertaken by GEMS (Glockner Engineering & Mining Services). The outcomes of the concept mining study have yielded positive results for Bullseye, with the Bungarra deposit proving to be a viable open-pit mining operation, capable of delivering strong cash flow for the Company once in production. Key outcomes of the concept mining study on the Bungarra deposit are outlined in the table below: Bungarra - Key Outcomes Contained Indicated Resource (Gold Ounces) 63,202 Mined Ore Grade (Grams per tonne Gold) 2.34 Recovered Gold (Gold Ounces) 54,878 Capital Cost to Production AUD$ 5-7 million Total Revenue (@ AUD$ 1,400 per ounce) AUD$ 76,829,200 Total Costs (no capital or govt royalty) AUD$ 39,080,348 Cash Cost Per Ounce (no capital or royalty) AUD$ 712 Cash Cost Per Ounce (inc capital & royalty) AUD$ 855 Net Present Value (pre-tax, no capital or royalty) AUD$ 37,748,852 State Government Royalty (2.5%) AUD$ 1,920,730 Contingency (10%) AUD$ 3,908,035 Net Present Value (pre-tax, excluding capital) AUD$ 31,920,087

2 Mining and Processing Following extensive optimisation works and given the close proximity of Gold ore to the surface, the Bungarra deposit is proposed to be mined as an open pit with this method chosen for its economics and ready availability of mining equipment to carry out the works. Bullseye has held discussions to date with six mining contractors to potentially undertake the mining works at the Bungarra project and has received quotations from all of the mining contractors. Given the current highly competitive environment, the Company has received some very favourable quotations, which have been used in the concept mining study. Fortunately for Bullseye, the is located in a well developed Gold region with a number of existing Gold processing plants, which are relatively close in proximity to the project. Processing of Gold from the Bungarra deposit will most likely be undertaken via a toll milling arrangement to an existing local processing facility, with haulage proposed via standard road trains. This toll milling approach offers Bullseye a relatively low start-up capital cost, by not having the requirement to initially establish an expensive Gold processing facility. Bullseye has had advanced favourable negotiations with a number of existing mill operators in the region, with these toll milling rates used in the concept study. Whilst toll processing is the most favourable initial mining start-up scenario for Bullseye, the Board is of the view that with further exploration and development, the could have the potential in the future to host enough Gold reserves to justify the Company developing its own Gold plant. The Company continues to undertake feasibility works on developing a future Gold plant at the North Laverton, in parallel with the development of likely toll milling options. Ore and Weathering Characteristics Gold mineralisation at the Bungarra deposit consists of a well defined horizontal flat lying ore body, with three lesser defined vertically oriented ore shoots (see Figure 1 below). The concept mining study undertaken primarily encompasses mining of the well defined horizontal ore body. It should be noted that the Bungarra deposit still remains open along strike and at depth and offers further potential to increase the size and profitability of the project with further drilling. Limited drilling to date into the three identified ore shoots shows encouraging potential and these areas are intended to be targeted with future planned drilling of the Bungarra deposit. Deposit Figure 1: Gold mineralisation at the Bungarra deposit, showing the well defined horizontal ore body (Gold colour) and the three vertically oriented ore shoots.

3 The weathering profile of the Bungarra deposit is shown below to a depth of approximately 80 metres: Deposit Figure 2: Long sectional view of the Bungarra weathering profile, with the laterite horizon shown in pink, the clay horizon in brown and the saprock-transitional horizon in green. An oblique view of the current Bungarra open pit shell looking South East is shown in Figure 3 below. The overall dimensions of the pit shell are 400 metres long, 240 metres wide, with a current proposed depth of 80 vertical metres. Deposit Pit Shell Figure 3: Oblique view looking South East of the current Bungarra open pit shell.

4 Deposit Pit Shell Figure 4: View looking inside the current Bungarra open pit shell. The horizontal flat lying part of the Gold ore body which has so far been delineated at the Bungarra project offers the following mining benefits: Characteristic Benefit Shallow Gold mineralisation at the Bungarra deposit is reached within metres from the surface, allowing the project to generate cash flow quickly and reducing start-up capital requirements. Horizontal Lying Ore Body Majority Ore Hosted in Clay Horizon Significant Further Upside The horizontal flat-lying nature of the main area of the Bungarra ore body, enables an open pit to be developed to extract the ore body typically more cost effectively than mining of vertically oriented ore bodies. Approximately 85% of the currently defined Bungarra ore body is hosted in the clay horizon, which offers relatively easy digging, minimal blasting and potentially lower cost mining. A further 10% of the currently defined Bungarra ore body is hosted in transitional saprock and the remaining approximately 5% is hosted in fresh rock. The Board of Bullseye are extremely encouraged by the outcomes of the Company s first drill program and positive concept mining study at the. As previously outlined, the Bungarra deposit offers exciting potential to further increase the size and profitability of this deposit alone with planned additional future drilling. Given that the Bungarra deposit is only the first of eight known Gold mineralised areas to be drilled within Bullseye s, the Board are optimistic that further commercially viable open pit operations may be proven with further drilling works in the future. In addition, Bullseye also holds approximately 400km 2 of tenements on the Dingo Range Greenstone Belt, offering significant further exploration upside and the ability to potentially develop a long mining life in the region.

5 Should further commercially viable open pits be proven at the, this could then positively influence the overall economics of Bullseye s mining activities in the area, as mining more than one open pit operation at the same time can potentially offer attractive cost saving benefits to the overall project. Bullseye has recently lodged a number of new drilling applications with the West Australian Department of Mines and Petroleum to undertake further drilling works at key targeted areas of the Gold Project. It is intended to undertake further mine scheduling and drilling works with the objective of proving up an acceptable life of mine to enable the Company to progress a number of liquidity options for shareholders which the Company is currently working on. Next Steps The works undertaken in the concept mining study have been undertaken to a sufficient level of detail to provide an approximate accuracy of +/- 20%, with an additional contingency of 10% added to all capital and operating costs. Recommended further works following completion of the concept mining study are: to further address geotechnical and metallurgical considerations, undertake a final pit design and undertake further mine production scheduling. Conclusion Commenting on the positive outcome of the Bungarra concept study, Bullseye Chairman, Peter J Burns stated, Within less than one year of acquiring the we are extremely pleased to have advanced the project a major step closer to achieving our objective of delivering a strong cash flow for Bullseye. The shallow flat lying nature of the Gold ore body delineated at Bungarra, coupled with the fact that the majority of Gold ore sits within the clay horizon close to the surface, requiring minimal blasting, offers Bullseye the opportunity to develop a relatively technically uncomplicated, low cost, open-pit Gold mining operation. Mr Burns concluded, With projected revenue in the order of AUD$77 million, a low operating cash cost per ounce and relatively low start-up capital requirement of AUD$5 - $7 million, the Bungarra deposit makes a compelling case for Bullseye to proceed towards becoming a Gold miner. Further information and capabilities of QG Consulting, can be viewed at: Further information and capabilities of Glockner Engineering & Mining Services (GEMS), can be viewed at: For further information and investor enquiries, please contact: Peter G Burns peter.burns@bullseyemining.com.au Peter J Burns peter@bullseyemining.com.au Mobile: Mobile: Cautionary Statement The Concept Study referred to in this document is based on a low order technical and economic assessment. It is insufficient to support the estimation of ore reserves, or to provide assurance of an economic development case at this stage, or to provide certainty that the conclusions of the Concept Study will be realised.