Dragon Mining Limited ly Activities Report For ended 31 December 2014 For personal use only Overview at a Glance Safety, improvement in safety continues in Finland with Vammala Plant achieving 388 days accident free. One Lost Time Injury (LTI) occurred during quarter when a contractor truck driver slipped when climbing from cabin injuring his coccyx. A comprehensive follow up was completed with contractor. Gold Production C1 Cash Cost US/Oz (1) 14,690 ounces US$956 Gold production of 14,690 ounces was higher than budget by 2,227 ounces due to higher grades from both Jokisivu and Orivesi Gold Mines. The higher ore grades also resulted in higher than budgeted recoveries in Vammala Plant, furr boosting gold production. C1 Cash Costs of US$956/oz achieved during quarter. This achievement was driven by higher grades, improved recovery from Vammala Production Centre and lower refining costs through processing of Jokisivu concentrate at Svartliden Production Centre. A metallurgical breakthrough was achieved during quarter with benchscale testwork indicating that processing of Orivesi concentrate at Svartliden can be completed economically. 100% of concentrate from Finland can now be processed at Svartliden with significant savings compared to smelting. A 1000t production test was successfully completed on material sourced from Fäboliden Gold Project which is located 25km south east of Svartliden Plant. This test forms part of Company s review of nearby gold deposits that could extend operating life of Svartliden Production Centre. A$2.6M generated in cash during quarter. Available cash (bank accounts plus trade receivables less accounts payable) amounted to A$20.3m at end of quarter. Safety Performance Available Cash (2) ( end) 1 LTI A$20.3m Notes: (1) The group uses C1 Cash Cost definitions as set out by Mackenzie Wood (2) Available Cash = Cash at bank plus Receivables less Accounts Payable Ounces 20,000 15,000 10,000 5,000 0 Dragon Mining ly Gold Production and C1 Cash Cost 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Ounces Produced (Oz, LHS) C1 Cash Cost (USD/Oz, RHS) 3,000 2,000 1,000 0 USD/Oz The Orivesi Gold Mine decline reinforcement project progressed during Q4 and is expected to be completed during Q1 2015. The project will improve safety and reduce production risks associated with rock stresses in Orivesi. Improved stability in caved stope at Orivesi was achieved with commencement of backfilling of stope. Improved stope designs have been implemented for future mining areas. The positive outcome of environmental case against Svartliden was not appealed and legal costs have been reimbursed by environmental agency. The Sale of non-core Norrn Finland interests progressed with Aurion Resources Limited issuing Company with Second, and subsequent to quarter end Third Tranche of Common Shares, lifting Dragon Mining s holding in Aurion to 9.40%. 300,000 200,000 100,000 Ore Mined vs Ore Milled 0 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 Ore Mined (t) Ore Milled (t) Page 1
Dragon Mining Limited ly Activities Report ended 31 December 2014 Operations Review Gold production for quarter was 14,690 ounces with a C1 Cash Cost of US$956/oz, including refining costs of US$130/oz. The gold production for quarter was higher than budgeted by 2,227 ounces due to higher grades from Jokisivu Gold Mine ( Jokisivu ) and Orivesi Gold Mines ( Orivesi ), in particular Orivesi achieved milled grades over 5.12g/t gold, 11% higher than budget. The higher head grades also resulted in higher recoveries in Vammala Plant, furr boosting gold production. While higher grades and recovery were main contributors to improved C1 Cash Cost, processing of Jokisivu concentrate at Svartliden Production Centre continued to impact positively on refining costs during quarter. Vammala Production Centre, Sourn Finland Ore Mined (t) Ore Milled (t) Head Grade (g/t) Recovery (%) Plant Utilisation (%) Total Gold Production (Ounces) C1 Cash Cost USD/oz Mar 2014 70,164 79,869 4.4 81.6 98.9 9,322 Jun 2014 73,874 74,048 4.1 77.4 99.8 7,436 1 1,159 1 1,056 Sep 2014 50,954 75,753 4.6 86.9 97.7 10,466 797 Dec 2014 86,224 73,499 5.5 80.6 98.2 11,022 793 1 The C1 Cash Costs for March and June 2014 have been changed from those reported in 30 June 2014 quarterly Report. The change was caused by an error that resulted in restatement of Company s 2013 Audited Financial Statements as announced to ASX on 5 August, 2014 Restatement of 2013 Audited Financial Statements. Safety A new safety record of 388 days without an LTI was achieved by Vammala Production Plant on 22 December 2014. This can be attributed to overhaul of safety in Finnish operations that was initiated in early 2014 as part of a Company-wide focus on safety and safety procedures. A total of 14 reportable incidents were reported during quarter; 6 at Orivesi, 7 at Vammala and 1 at Jokisivu. One LTI took place at Orivesi when a contractor s truck driver was stepping down from truck s cabin and his foot slipped from footstep. The driver lost his balance and his grip of truck causing driver to fall. The Company has held safety discussions with contractor to ensure future incidents of this nature can avoided by maintaining three points of contact. The rolling 12 month accident frequency rate per 1 million working hours reduced significantly from 42.6 in Q1 to 20.3 by end of Q4. Backfilling of cave in at 820-840 L5 stope at Orivesi began during quarter, (presently back fill is on 840 metre level). A miner s risk assessment workshop was held during quarter at Orivesi. The safety committee had a meeting at Jokisivu with following issues discussed: Smoke free work place; Alcohol testing post-accident; Avoid working alone at high places; Mapping of cables and pipes; and The organisation of a crisis management course. Page 2
Dragon Mining Limited ly Activities Report ended 31 December 2014 Production Gold production at Vammala Production Centre for quarter was 11,022 ounces, which is 3,236 ounces above budget. This was driven by 16% higher feed grades from Orivesi, and 56% higher feed grades from Jokisivu. A 3.6% decrease in gold recovery levels for Orivesi ore in Vammala Plant is due to large variation of ore types processed during quarter. Mill feed at Vammala comprised 48,051 tonnes from Orivesi at 5.38 g/t gold and 25,448 tonnes from Jokisivu at 5.65 g/t gold. Orivesi Gold Mine Production from Orivesi was 51,397 tonnes of ore, mined from Kutema lode system, Pipe 2 and 5. Orivesi achieved higher mined grades in spite of dilution that resulted from stope cave in. By end of quarter decline had reached 1080 metre level. A decision to extend decline will be made pending results of a diamond drilling program, expected to be completed in March 2015. Backfilling of cave-in of 820-840 L5 stope began during quarter with backfilling presently at 840 metre level. The 960-940 L5 stope has been mined out and backfilled successfully. Development works advanced a total of 545 metres during quarter. Decline development was affected by unfavourable (high stressed) rock conditions and a 2 day break caused by unavailability of contractor s shotcrete truck. The contract negotiations between Maakasi Oy (ore haulage) and Company have taken place and are ongoing. A remote controlled hydraulic breaker and loader were delivered to Orivesi in December. This will be used to improve safety of breaking big boulders inside stope. The decline reinforcement project has advanced as follows: Meshed 57% (vs planned 100%); Shotcreted 46% (vs planned 48%); and Cable bolted 76% (vs planned 100%). Sludge transport from surface to bottom of Sarvisuo was stopped due to winter conditions. Transport will recommence in norrn spring. 3D-modelling of Orivesi by Aalto University was completed during quarter. The modelling concluded decline rock burst that occurred in 2013 and 2014 was not caused by stoping. Jokisivu Gold Mine Ore mined totalled 34,827 tonnes (48% above target) and development advanced 387 metres (as planned) during quarter (refer to Advanced Projects section). Jokisivu s mill feed grades exceeded planned grades by 2.0 g/t gold and was a major driver for quarter s positive result. The relocation of ramp away from open pit wall to improve safety was completed. A surface drilling program targeting at Arpola deposit was completed during quarter with results still pending. The Company continued its heating gas contract with ADVENT. The agreement is now valid until October 2016 with a six month notice period. Presently, Jokisivu has two stoping areas which will improve mines productivity. The stopes, despite ir irregular geometry have remained stable. Contract negotiations with mining contractor, SK-Kaivin, are ongoing. Vammala Plant Ore milled totalled 73,499 tonnes and mill recovery averaged 80.6%. The processing of Orivesi ore is still proving difficult with ph controls in use every second day. A longer unplanned stoppage took place during quarter. A bearing on a vibrating screen broke and was repaired later that same day. The following occurred during quarter: The second half of annual overhaul was completed on schedule and included installation of a new hydraulic unit and electricity feed to Page 3
Dragon Mining Limited ly Activities Report ended 31 December 2014 horizontal feeder. This will support fine ore silo, new lifters to ball mill, new cyclone and many or smaller items. An audit of Vammala laboratory was completed by CRS Kemia, a service based laboratory, with new valuable processing data being received since ore tracking was implemented. Independent consultants, Ramboll Oy have inspected tailings dam works and will write a recommendation letter to ELY. The sample preparation room is now ready for use and commissioning of new cyclone is progressing. A new high quality supplier for milling balls was sourced. The contract of hauling concentrate with Ranta-Pere was signed with savings over existing contractor. The ELY Centre has requested additional information relating to potential environmental impacts in event Company exceeded its permitted ore production rate of 200,000 tonnes per annum by end of January 2015. Environment Orivesi Gold Mine In 2013, environmental organisation Friends of Earth measured elevated uranium concentrations, compared to background levels, in sediments downstream of Orivesi. These observations were later confirmed by new measurements carried out by environmental authorities. However, according to STUK, The Finnish Radiation and Nuclear Safety Authority, uranium concentrations in measured sediment samples do not cause any risk to humans and uranium levels in water are well below standards established for drinking water. The situation was subject to furr investigations. The investigations were carried out by an external consultant according to a plan agreed with ELY. The study report, completed in October, discusses source of uranium and its transportation and enrichment processes. The report confirms that uranium levels in bedrock are at background levels and that uranium levels in water discharged from mine site are below requirements set for drinking water standards. The study and its contents were accepted by ELY in November. The yearly environmental inspection at Orivesi was carried out in October, which resulted in a request for more detailed information relating to extension of waste rock pile, its design and potential environmental impacts as a result of extending waste rock pile (in direction of Lake Ylä-Jalkajärvi). During quarter, an external consultant carried out planning of extension to waste rock pile. The work is expected to be completed during Q1 2015 and will be submitted to ELY for approval. During quarter, signs of water originating from mine site were observed in Sarvisuo area (next to eastern side of mine area). Water quantities are very minor but actions for preventing water discharging to east are planned immediately following winter. A supplement to Environmental Permit application that was filed in 2010 was submitted to Regional State Administrative Agency at end of December. The main content of supplement was Natura assessment. In addition, uranium study report, information on noise levels and general environmental compliance was also filed. Vammala Plant In June, Company received an Environmental Permit to increase ore production to 300,000 tpa, use of A-pond and processing of material from Kaapelinkulma. The decision was appealed by Company with a few or parties. The primary reason for appealing was because Permit does not allow Company to discharge water to Ekojoki River. In September, Company was provided an opportunity to respond to appeals made by or parties. The Company s reply was filed in October. Page 4
Dragon Mining Limited ly Activities Report ended 31 December 2014 In October, re was a discussion with ELY who advised Company needs to ensure it complies with its effective Environment Permit of 200,000 tpa. The Company agreed to undertake a furr study to determine differences on environmental impact, from operating Vammala Plant at a 200,000 tpa level and at a 300,000 tpa level. Kaapelinkulma Gold Project An application for a review of current Environmental Permit was filed in August. A request to complete application was received in November. The Permit setting authority, Regional State Administrative Agency has requested additional information to be included in application in addition to a waste management plan. The due date for completing application is end of February 2015. Svartliden Production Centre, Sweden Ore Mined (t) Ore Milled (t) Head Grade (g/t) Recovery (%) Plant Utilisation (%) Total Gold Production (Ounces) C1 Cash Cost USD/oz Mar 2014 0 82,650 2.9 90.7 98.0 7,094 Jun 2014 0 79,850 2.6 93.3 98.6 6,223 1 848 1 849 Sep 2014 0 73,619 1.9 94.7 95.6 4,424 998 Dec 2014 0 75,818 1.7 87.6 99.3 3,669 2 1,448 1 The C1 Cash Costs for March and June 2014 have been changed from those reported in 30 June 2014 quarterly Report. The change was caused by an error that resulted in restatement of Company s 2013 Audited Financial Statements as announced to ASX on 5 August, 2014 Restatement of 2013 Audited Financial Statements. 2 The C1 Cash Cost was impacted negatively due to an out of court settlement of a claim arising from underground mining contract in addition to lower ore grades and lower recovery. Safety The Svartliden Production Centre was free from Lost Time Injuries (LTI s) for quarter. Despite this rolling 12 month accident frequency rate per 1 million working hours (including contractors) was 10.9. By comparison, Swedish Mining Industry average was 8.0 for 2013. Svartliden has had one accident in last 12 months and is currently 286 days LTI free. During quarter: A detailed risk assessment for processing of concentrate was performed; Process Plant pipework was remarked to ensure visible and legible markings; and Q4 Site Safety Committee meeting was held. Production With completion of underground mining in 2013, Svartliden Plant is now processing stockpiled low grade material through to Q1 2015. Svartliden produced 3,669 ounces of gold from 75,818 tonnes of ore milled from stockpiles at an average head grade of 1.7 g/t gold for quarter at a C1 Cash Cost of US$1,448/oz. The C1 Cash Cost was impacted negatively due to an out of court settlement of a claim arising from underground mining contract from 2013; removing this impact C1 was US$1,281/oz. Or significant factors contributing to high C1 were lower grades and recovery. Gold recovery for ore was only 87.6%, this low level was caused by heavily oxidised stockpiled ore as older parts of stockpile are progressively excavated. This effect is expected to continue. The process plant utilisation was very high at 99.3% with successful identification and rectification of intermittent mill motor fault reported in Q3. In addition, only a short planned stoppage was performed to inspect ball mill liners. Page 5
Dragon Mining Limited ly Activities Report ended 31 December 2014 During quarter Svartliden successfully processed 100% of Jokisivu concentrate generating a benefit of approximately US$70/oz. The Company, in conjunction with independent Western Australian based consultants Minnovo, achieved a major breakthrough in leaching testwork on Orivesi Pipe 5 concentrates, with bench work tests indicating Orivesi concentrate leaching is more economical than smelter. Based on above, Company has commenced full scale testing of Orivesi concentrate in Svartliden. During quarter County Administrative Board accepted notification of processing mixed ore and concentrate, with up to 20,000t of concentrate in 2015, sufficient for Jokisivu, Orivesi, and or potential third party sources. Options for securing additional feed for Svartliden Plant are continuing to be investigated. During quarter, discussions continued with third parties regarding possible toll processing of ir concentrates at Svartliden. In conjunction with this, evaluation work and discussions continued with or various parties regarding options to acquire nearby gold deposits. Evaluation work included a 1,000t production test of material from Fäboliden Gold Project ( Fäboliden ) located 25km south east from Svartliden Plant. The production test of material stockpiled at surface, collected from a test mining and processing campaign undertaken in 2005, has shown that material from Fäboliden is amenable to processing through Svartliden Plant. The stockpiled material, which was originally sourced from a near surface zone of higher grade mineralization, had a head grade of 3.02 g/t gold and yielded gold extraction levels of 79.4%. This production test confirmed recent bench scale leach test work carried out by Company on representative drill core that indicated gold extraction levels exceeding approximately 75% are unlikely for material from Fäboliden at Svartliden. Environment For quarter, all discharge levels were lower than Environmental Permit constraints. The Water Treatment Plant ( WTP ) remained on standby with onset of colder winter months and normal water levels in Tailings Storage Facility (TSF). This water treatment is part of site s continuing rehabilitation. The or year round water treatment processes ran effectively during quarter, se include arsenic and cyanide removal from process water discharged to TSF and removal of heavy metals from runoff water from Waste Rock Storage Facility. With respect to 2009 allegations related to environmental offenses, Swedish Court of Appeal proceedings took place 23-24 September 2014 in Umeå, Sweden. The Court ruling released on 15 October 2014 upheld Lycksele District Court ruling and acquitted Company on all counts and ruled that Company s legal costs be refunded by State. No appeal was made and ruling gained legal force. Legal costs were accordingly reimbursed to Company. Advanced Projects Drilling campaigns directed at defining and upgrading Mineral Resources continued at Orivesi and Jokisivu mining operations, whilst drilling activities recommenced at Kaapelinkulma Gold Project during December quarter. Three underground diamond core rigs and one surface diamond core rig were active during quarter, completing a total of 9,845 metres (Total 2014: 19,790 metres) Sourn Finland Orivesi Gold Mine Underground diamond core drilling continued at Orivesi with 29 holes drilled for an advance of 4,841 metres during quarter. Available results from drilling campaigns undertaken have previously been released to ASX subsequent to end of quarter on 19 January 2015 Encouraging Results from Sourn Finland Drilling Activities. This announcement can be found at www.asx.com.au (Code: DRA). Drilling commenced on a 12 hole program during quarter that was designed to assist with stope definition at Kutema. Four holes, 157.1 metres were completed, with results returning better intercepts of 31.50 metres @ 15.89 g/t gold and 13.50 metres @ 4.56 g/t Page 6
Dragon Mining Limited ly Activities Report ended 31 December 2014 gold at approximately 1040m level (Appendix 1). Drilling of program will resume when drilling positions are available at 1060m and 1080m levels. The drilling of a 30 hole underground diamond core program is now in progress from 1020m and 1040m levels. This program has been planned to better define extent and geometry of Kutema lode system between 1060m and 1220m levels. Eighteen holes have been drilled to end of quarter for an advance of 3,814 metres. Assay results have been received for 11 holes returning better intercepts of 20.40 metres @ 5.64 g/t gold, 5.00 metres @ 21.68 g/t gold and 5.00 metres @ 5.70 g/t gold, whilst returning significant results down to 1165m level, deepest recorded to date from Kutema lode system (Appendix 2). Results from 7 holes are pending. Drilling continued on a 12 hole campaign of underground diamond core drilling that was designed to test continuation of Kutema lodes between levels 980m and 1020m. A furr 7 holes were completed during quarter in addition to 4 holes completed in previous quarter. Results have been received for 5 holes that were designed to drill down line of near vertical Pipe 2 from 980m level and returned a best intercept of 9.00 metres @ 5.01 g/t gold from approximately 1010m level. Results are provided in Appendix 3. The results from this campaign have been incorporated into an updated model that indicates last production level for Pipe 2 will be at 980m level. The Pipe 2 position however, will continue to be tested as mine progresses deeper. Jokisivu Gold Mine Underground and surface diamond core drilling campaigns were undertaken at Jokisivu Gold Mine during quarter with 29 holes completed for an advance of 4,341 metres. Available results from drilling campaigns undertaken have previously been released to ASX, subsequent to end of quarter on 19 January 2015 Encouraging Results from Sourn Finland Drilling Activities. This announcement can be found at www.asx.com.au (Code: DRA). The final 5 holes in a 10 hole campaign targeting Kujankallio Main Zone and Hinge Zone between 290m and 340m levels was completed. Assays have been received from 6 holes returning a number of significant intercepts including narrow, high grade 2.80 metres @ 10.38 g/t gold, 1.30 metres @ 29.45 g/t gold and 1.25 metres @ 14.60 g/t gold (Appendix 4). Results from 4 holes are pending. The drilling of a 9 hole program at Arpola, first underground infill program undertaken at this deposit was completed during quarter. Assays have been received from all holes yielding encouraging narrow, high grade intercepts of 2.15 metres @ 59.20 g/t gold, 0.50 metres @ 102.00 g/t gold and 0.70 metres @ 44.20 g/t gold, as well as better intercepts of 3.10 metres @ 6.84 g/t gold and 5.40 metres @ 10.37 g/t gold (Appendix 5). The results indicate that high grade zones which were intercepted with drifting on 50m and 65m levels continue through to 80m level. Surveyed fault planes on upper levels however may have a bearing on way se zones continue through. A surface exploration drilling program of 15 holes, 2,931 metres was completed at Arpola. Ten holes from this program were positioned to evaluate immediate extensions of main Arpola lodes that could not be intersected from available underground development positions or decline, 5 holes were planned to furr test an area souast of Arpola open-pit where historic drilling returned near surface high-grade intercepts. Assays have been received from 7 holes returning a number of significant intercepts including 8.55 metres @ 9.52 g/t gold, 2.55 metres @ 14.53 g/t gold and very high grade 0.50 metres @ 330.00 g/t gold (Appendix 6). Results from 8 holes are pending. Kaapelinkulma Gold Project A 45 hole, 3,046m diamond core drilling program commenced at Kaapelinkulma Gold Project during quarter. This program has been designed to improve density of drilling of sourn lode system with objective of updating Mineral Resource in readiness for a detailed study into viability of establishing Dragon Mining s third gold mine in sourn Finland region. Core logging, sampling and analysis is progressing for 10 holes drilled during quarter. Page 7
Dragon Mining Limited ly Activities Report ended 31 December 2014 Norrn Finland Kuusamo Gold Project The Company acknowledges complexity of social and environmental aspects of developing Kuusamo Gold Project, including municipal councils concerns for mining in area. Dragon Mining has continued to focus its efforts on environmental and community relations during quarter. To assist process going forward Company has established a new Finnish subsidiary called Kuusamo Gold OY. Radiological Baseline Study Work on radiological baseline study by Finnish Radiation and Nuclear Safety Authority ( STUK ) was completed with issue of final report during quarter. Results from report have previously been released to ASX on 19 December 2014 Radiological Baseline Study Report for Kuusamo Gold Project Completed. This announcement can be found at www.asx.com.au (Code: DRA). The aim of radiological baseline study was to examine natural radioactivity in environment, around Kuusamo Gold Project area. The baseline study is required when planning a mining operation in areas that may contain elevated radiation levels. STUK reported that samples were collected in 2012 and 2013 from various environmental settings in Juomasuo area, which hosts Juomasuo, Hangaslampi and Pohjasvaara gold deposits. The samples were analysed for concentrations of naturally occurring radioactive substances such as uranium (U-238 & U-234); radium (Ra-226 & Ra-228), lead (Pb-210) and polonium (Po-210). In addition external radiation dose rates were measured onsite and area was measured for outdoor radon.. It was concluded from study that radioactive concentrations in Juomasuo area and its near vicinity are comparable to concentrations measured elsewhere in nature. The highest concentration levels were measured in sediment samples, water plant, mosses and fish and were similar to samples of same kind, collected elsewhere in Finland. The activity levels in environmental samples showed no significant annual variation, any variation linked to sample type and location. The natural products in area such as mushrooms, berries, as well as foods, fish, agricultural products, game and reindeer meat can be used safely as normal. A copy of final report in Finnish and English translation of report Summary are available on Dragon Mining website www.dragon-mining.com.au. Exploration Norrn Finland Hanhimaa Gold Project (Diluting to 30% Interest) Agnico Eagle Mines Limited (NYSE:AEM) (TSX:AEM) ( Agnico Eagle ) advised Company that no drilling activities were undertaken on Hanhimaa Gold Project during quarter. The Company and Agnico Eagle entered into Hanhimaa Earn-In Agreement in 2013, whereby Agnico Eagle could earn up to 70% interest in Hanhimaa Gold Project in norrn Finland, with staged expenditure of 9 million over seven years. Page 8
Dragon Mining Limited ly Activities Report ended 31 December 2014 Corporate Share Sale Agreement with Ausinox plc Subsequent to end of quarter, Company announced it had executed a Share Sale Agreement ( Agreement ) with Ausinox plc ( Ausinox ) to sell Company s 39.95% interest in Weld Range Minerals Limited ( Weld Range ). The Agreement supersedes Share Buy Back Agreement executed with Weld Range, as previously announced. Pursuant to Agreement, Ausinox will buy 10.3 million Weld Range shares from Company. In addition, debt Weld Range currently owes Company ($3.8 million comprising principal and accrued interest to 30 June 2014) will be assigned to Ausinox. Consideration payable to Company by Ausinox will be $1 million (less costs). Shares in Aurion Resources Limited Received On 26 November 2014, Company announced Second Tranche of Common Shares in Canadian explorer, Aurion Resources Limited ( Aurion ) had been received, following seventeen Claims that comprise Silasselkä project (Silasselkä 1 5; 8-19) becoming valid, as defined in Definitive Purchase Agreement for Kutuvuoma and Silasselkä Projects in Norrn Finland. Subsequent to end of quarter, on 13 January 2015, Company announced that Third Tranche of Common Shares in Aurion had been received, following eighteen Claims that comprise portion of Kutuvuoma project (Kutuvuoma 4-21) becoming valid. The Second and Third Tranches of Common Shares, increases Company s holding to 4m Common Shares and represents a 9.40% holding in Aurion, on an undiluted basis. The Common Shares are escrowed for 18 months from date of issuance of initial Tranche of Common Shares in Aurion on 8 September 2014. Employee Share Options Cash Generation During quarter cash generated totalled A$2.6 million. At end of quarter, group had A$15.0 million in bank, trade receivables of A$9.5 million and accounts payable of A$4.2 million. Available cash (cash at bank plus trade receivables less accounts payable) was A$20.3 million. Cash Flows Operating Cash Flows A$ Revenue 21.4 Operating Costs (20.0) Cash outflows for taxation, rehabilitation bonds, overhead and operational support costs 2.4 Exploration (1.0) Net operating cash flows 2.8 Investing Cash Flows Development expenditure (0.7) Capital purchases (0.1) Or (0.2) Net investing cash flows (0.9) Financing Cash Flows Drawdown/(Repayment) of gold concentrate factoring facility (0.0) Foreign exchange gains/(losses) 0.7 Net financing cash flows 0.7 Increase in Cash 2.6 On 12 December 2014, Company announced that 2,054,000 unlisted options held by current and former employees of Company expired or lapsed unexercised due to resignation or cancellation by agreement for nil consideration. Page 9
Dragon Mining Limited ly Activities Report ended 31 December 2014 Competent Persons Statement The information in this report that relates to Exploration Results pertaining to Sourn Finland was previously released to ASX on 19 January 2014 Encouraging Results from Sourn Finland Drilling Activities, which can be found at www.asx.com.au (Code:DRA). It fairly represents, information and supporting documentation that was compiled by Mr. Neale Edwards BSc (Hons), a Fellow of Australian Institute of Geoscientists and Mr. Matti Talikka MSc (Geology), a Member of Australasian Institute of Mining and Metallurgy, who are full time employees of company and have sufficient experience which is relevant to style of mineralisation and type of deposit under consideration and to activity which y are undertaking to qualify as Competent Persons as defined in 2012 Edition of Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Written consent was provided by Mr. Neale Edwards and Mr. Matti Talikka for 19 January 2014 announcement. The Company confirms that form and context in which information is presented has not been materially modified and it is not aware of any new information or data that materially affects information included in relevant market announcement, as detailed in body of this announcement and Appendices. The information in this report that relates to all or Exploration Results is based on information compiled by Mr. Neale Edwards BSc (Hons), a Fellow of Australian Institute of Geoscientists and Mr. Matti Talikka MSc (Geology), a Member of Australasian Institute of Mining and Metallurgy, who are full time employees of company and have sufficient experience which is relevant to style of mineralisation and type of deposit under consideration and to activity which y are undertaking to qualify as Competent Persons as defined in 2012 Edition of Australasian Code of Reporting for Exploration Results, Mineral Resources and Ore Reserves. Mr. Neale Edwards and Mr. Matti Talikka have provided written consent for inclusion in announcement of matters based on ir information in form and context in which it appears. Page 10
Dragon Mining Limited ly Activities Report ended 31 December 2014 Appendix 1 Results from underground diamond core drilling program designed to assist in stope definition of Pipe 5 at Kutema, Orivesi Gold Mine. All intercepts reported at a 1 g/t gold cut-off. (ASX Release 19 January 2015) Hole North East Elevation Azimuth Dip Length From Interval KU-1434 6838552.4 2508594.8-878.2 1.8 0.53 29.60 3.50 13.50 4.56 KU-1435 6838552.4 2508596.7-878.2 27.9 0.76 38.80 13.50 3.00 1.36 Gold (g/t) 25.50 5.50 6.62 KU-1436 6838551.5 2508598.4-878.0 44.6 0.97 42.80 3.65 2.35 13.45 11.00 12.00 3.32 26.00 3.00 1.88 32.00 1.50 1.05 39.00 1.20 7.65 42.40 0.40 12.15 KU-1437 6838548.5 2508598.4-878.0 61.4 0.71 45.90 13.50 31.50 15.89 Appendix 2 Results from underground diamond core drilling program designed to to better define extent and geometry of Kutema lode system between 1060m and 1220m levels, Orivesi Gold Mine. All intercepts reported at a 1 g/t gold cut-off. (ASX Release 19 January 2015) Hole North East Elevation Azimuth Dip Length From Interval KU-1408 6838479.2 2508603.6-860.6 315.5-55.7 230.40 No significant intercepts KU-1409 6838479.4 2508603.6-860.6 319.3-52.7 206.30 112.00 1.50 2.42 140.00 11.50 2.20 KU-1410 6838479.0 2508604.2-860.6 324.3-48.5 191.00 80.00 1.30 1.59 126.4 0.60 1.07 130.00 2.00 1.11 134.00 2.45 1.96 80.00 1.30 1.59 KU-1411 6838478.9 2508604.3-860.5 327.0-56.6 242.20 143.20 0.90 7.34 162.50 0.95 10.65 172.80 1.00 1.97 177.15 4.55 1.23 KU-1412 6838478.8 2508604.5-860.6 326.7-39.8 161.40 No significant intercepts KU-1430 6838483.2 2508606.6-880.8 4.1-49.3 215.40 52.90 2.00 1.65 79.75 0.75 4.35 90.80 1.00 1.53 128.50 20.40 5.64 KU-1431 6833195.3 2497619.5-880.8 8.6-51.6 234.90 83.40 0.65 1.26 86.60 0.60 14.25 98.00 1.50 1.36 142.50 0.95 1.06 145.55 2.45 4.42 Gold (g/t) Page 11
Dragon Mining Limited ly Activities Report ended 31 December 2014 149.00 1.00 1.52 153.50 3.35 2.04 164.00 2.00 3.70 232.00 1.00 1.27 KU-1432 6833195.3 2497619.5-880.9 10.9-45.7 206.30 121.8 1.35 1.61 126.0 5.00 5.70 137.65 1.35 4.15 KU-1433 6833195.3 2497619.5-880.7 13.2-38.9 185.40 64.75 0.95 1.83 69.90 0.50 2.05 108.20 0.80 2.01 111.00 4.00 2.77 117.00 1.00 2.48 135.00 1.50 1.12 141.65 1.35 1.16 KU-1449 6838482.3 2508608.7-881.0 20.4-42.7 228.30 130.00 5.00 21.68 159.00 0.70 2.48 162.30 1.15 1.37 174.50 1.50 1.19 KU-1450 6838482.2 2508608.7-881.0 23.5-48.7 278.10 140.65 1.50 1.19 171 2.00 2.75 184 1.10 1.20 189 2.30 1.11 215 0.90 2.00 220 2.50 2.64 Appendix 3 Results from underground diamond core drilling program examining extensions of Pipe 2 at Kutema, Orivesi Gold Mine. All intercepts reported at a 1 g/t gold cut-off. (ASX Release 19 January 2015) Hole North East Elevation Azimuth Dip Length From Interval KU-1397 6838526.4 2508548.3-818.0 12.9-78.2 150.80 0.25 3.75 2.11 5.00 1.00 1.34 13.20 2.80 1.39 20.00 3.25 1.83 25.30 0.55 1.45 29.30 1.90 2.46 37.00 2.00 1.26 40.00 1.00 4.29 79.30 1.10 1.08 95.35 3.85 2.10 100.10 1.05 1.16 112.00 2.00 1.25 117.50 1.50 1.91 121.35 2.35 2.42 KU-1398 6838526.4 2508565.1-818.3 302.9-69.5 95.10 7.60 5.40 2.64 21.00 9.00 5.01 36.00 10.00 3.11 60.50 1.50 1.71 Gold (g/t) Page 12
Dragon Mining Limited ly Activities Report ended 31 December 2014 KU-1399 6838527.3 2508563.2-818.3 324.5-75.8 140.00 5.50 6.00 2.79 40.70 0.70 1.62 51.00 0.70 1.10 62.50 1.50 1.28 86.00 1.00 1.38 88.00 1.00 1.01 93.30 0.70 22.20 101.00 2.00 1.31 KU-1400 6838527.1 2508564.4-818.3 1.5-77.9 16.80 4.00 1.00 1.08 KU-1400b 6838527.1 2508563.9-818.3 354.3-78.0 99.50 0.60 0.90 1.98 Appendix 4 Results from underground diamond core drilling program targeting Kujankallio Main Zone and Hinge Zone between 290m and 340m levels, Jokisivu Gold Mine. All intercepts reported at a 1 g/t gold cut-off. (ASX Release 19 January 2015) Hole North East Elevation Azimuth Dip Length From Interval HU/JS-616 6779535.8 2426164.5-192.4 354.0-24.5 160.10 73.05 1.00 1.14 87.00 1.00 1.72 90.00 3.95 2.20 95.80 1.65 1.25 113.60 1.30 29.45 Includes 0.45 metres @ 81.40 g/t gold from 114.45 metres 139.65 0.35 12.80 144.00 3.00 2.64 HU/JS-617 6779534.0 2426172.4-193.4 10.0-23.8 164.60 9.00 1.00 2.15 11.00 1.00 3.38 124.85 2.80 10.38 Includes 0.80 metres @ 34.20 g/t gold from 126.85 metres 135.55 0.95 6.46 159.90 0.90 1.48 HU/JS-618 6779530.3 2426183.2-194.7 23.0-21.6 180.10 18.30 0.80 1.53 27.60 1.00 1.87 171.35 0.65 1.92 HU/JS-619 6779529.5 2426184.1-194.8 37.0-18.9 200.10 14.55 1.25 14.60 76.20 1.25 1.71 78.75 0.95 3.19 81.65 1.45 1.16 110.40 0.70 6.37 121.00 1.00 2.54 173.00 1.95 2.54 188.00 2.00 1.49 HU/JS-620 6779529.3 2426184.6-194.9 47.0-16.0 235.15 26.40 1.00 1.54 177.50 1.20 1.53 180.15 0.60 1.88 186.65 0.95 1.58 191.00 1.00 1.97 215.00 0.35 19.15 Gold (g/t) Page 13
Dragon Mining Limited ly Activities Report ended 31 December 2014 HU/JS-621 6779529.0 2426185.0-195.0 55.0-13.9 260.00 62.00 1.50 2.85 74.00 1.50 14.10 79.60 1.00 1.01 183.75 2.35 2.67 188.15 1.00 2.83 192.20 5.35 2.68 238.95 1.30 1.00 Appendix 5 Results from underground diamond core drilling program targeting Arpola deposit, Jokisivu Gold Mine. All intercepts reported at a 1 g/t gold cut-off. (ASX Release 19 January 2015) Hole North East Elevation Azimuth Dip Length From Interval HU/JS-622 6779259.8 2426258.9 0.6 159.0 2.3 74.40 25.15 3.10 6.84 57.50 1.00 1.18 64.00 0.80 1.37 HU/JS-623 6779260.0 2426258.3 0.6 169.0 2.4 74.85 0.02 0.73 2.79 6.20 1.05 1.24 26.55 2.15 2.38 46.50 1.50 1.02 58.75 2.15 59.20 Includes 0.70 metres @ 176.00 g/t gold from 60.20 metres HU/JS-624 6779260.2 2426257.4 0.7 178.0-0.1 74.70 26.50 3.05 3.19 56.00 1.10 5.50 59.10 1.00 2.58 71.00 1.00 1.51 HU/JS-625 6779270.3 2426217.9 3.4 158.0-0.2 94.70 18.50 1.50 2.77 39.45 1.55 1.76 43.50 1.35 4.99 49.45 1.15 1.48 76.10 0.50 102.00 84.40 0.70 44.20 92.55 1.05 1.48 HU/JS-626 6779270.5 2426216.9 3.5 168.0 0.0 86.05 37.65 1.00 1.57 43.00 5.40 10.37 51.20 0.60 12.65 73.30 1.10 3.03 76.40 1.30 11.95 Includes 0.30 metres @ 43.80 g/t gold from 76.40 metres HU/JS-627 6779270.8 2426215.9 3.5 177.0 0.0 80.15 4.90 1.50 1.59 36.60 1.50 1.17 40.60 1.20 3.44 46.30 3.60 1.40 58.00 2.60 1.63 63.00 3.00 2.67 72.95 0.85 6.41 HU/JS-628 6779271.0 2426214.9 3.6 186.0 0.1 80.00 0.05 0.95 1.09 Gold (g/t) Page 14
Dragon Mining Limited ly Activities Report ended 31 December 2014 36.95 2.05 1.31 51.45 1.00 5.71 55.45 0.55 8.22 69.35 0.80 2.09 78.50 1.50 1.41 HU/JS-629 6779271.2 2426214.2 3.6 0.2 195 75.00 5.80 1.35 1.61 35.00 0.70 2.91 45.00 1.00 2.25 53.45 1.55 1.33 60.50 0.90 2.08 HU/JS-630 6779271.4 2426213.3 3.7 0.3 204 74.80 17.50 1.50 1.09 53.75 0.95 1.13 66.45 1.20 1.44 Appendix 6 Results from surface diamond core drilling program targeting Arpola deposit, Jokisivu Gold Mine. All intercepts reported at a 1 g/t gold cut-off. (ASX Release 19 January 2015) Hole North East Elevation Azimuth Dip Length From Interval HU/JS-633 6779380.0 2426430.0 65.0 180.0-69.3 289.70 122.50 1.05 1.42 153.10 0.85 1.86 165.80 1.80 4.01 201.55 8.55 9.52 212.80 1.60 7.34 216.65 1.00 3.43 235.90 0.90 2.19 253.85 4.55 2.72 266.35 2.65 1.51 HU/JS-634 6779407.6 2426430.0 65.0 180.0-69.3 310.95 132.70 1.10 3.88 171.15 1.00 1.00 191.45 1.45 2.93 263.60 1.00 3.35 267.60 7.05 2.93 302.90 0.95 1.58 HU/JS-636 6779416.7 2426410.0 65.0 180.0-69.3 310.40 137.25 0.45 8.36 168.60 0.95 1.26 177.00 1.00 4.66 181.00 1.50 1.02 196.00 1.00 2.83 304.25 0.35 11.75 HU/JS-637 6779382.5 2426390.0 65.0 180.0-69.3 290.75 104.10 0.75 11.35 233.35 1.10 1.14 244.15 3.00 2.91 262.30 1.20 1.53 HU/JS-640 6779369.8 2426448.6 61.0 172.0-60.0 339.00 107.50 3.25 1.15 159.20 2.55 14.53 Includes 0.65 metres @ 38.40 g/t gold from 173.65 metres 171.75 0.85 4.52 Gold (g/t) Page 15
Dragon Mining Limited ly Activities Report ended 31 December 2014 180.60 0.90 1.34 183.25 1.00 1.03 202.85 1.10 1.16 219.65 1.05 1.03 221.80 0.50 330.00 276.30 1.05 32.30 HU/JS-643 6779151.3 2426370.0 62.4 180.0-44.8 41.00 8.70 1.50 4.37 HU/JS-645 6779161.2 2426350.0 62.5 180.0-51.0 47.40 12.80 1.20 6.89 20.55 1.50 1.70 24.15 1.20 1.79 37.50 0.45 8.36 Appendix 7 Company Tenement Holding Mining Tenements Project Tenements Held at end of Acquired during Disposed during ID Name Type % % % SWEDEN Svartlidengruvan K nr 1 EC 100 - - Svartliden FINLAND Orivesi Jokisivu Vammala Kaapelinkulma 2004:114 Svartliden nr 2 EP 0-100 2006:351 Pauträsk nr 4 EP 100 - - 2012:45 Alsträsket nr 2 EP 100 - - 2013:67 Tallberget nr 4 EP 100 - - 2012:144 Råberget EP 100 - - 2676 Orivesi MC 100 - - ML2013:0006-01H Sarvisuo 1-2 EL 0 - - 8352/1 Sarvisuo 3 Claim 100 - - 9128/1 Yläinensilmäke Claim 100 - - 7244 Jokisivu MC 100 - - ML2012:0112-01H Jokisivu 4-5 EL 0 - - 8766/1 Jokisivu 6 Claim 100 - - 8970/1 Jokisivu 7 Claim 100 - - 8970/2 Jokisivu 8 Claim 100 - - 1895 Stormi MC 100 - - 7967/1 Ekojoki Claim 0-100 8543/2 Kärmeenmaa Claim 0-100 ML2013:0032-01H Ekojoki EL 0 - - ML2014:0049-01H Kärmeenmaa EL 0 - - K7094 Kaapelinkulma MC 0 - - 7094/1 Kaapelinkulma Claim 0-100 Page 16
Dragon Mining Limited ly Activities Report ended 31 December 2014 Project Ritakallio Kuusamo Kutuvuoma Tenements Held at end of ID Name Type % % Acquired during 7094/2 Perkoonsuo 1 Claim 0-100 ML2012:0178-01H Ritakallionmaa 1-2 EL 0 - - 4909 Meurastuksenaho MC 100 - - 3965 Juomasuo MC 100 - - 4013 Sivakkaharju MC 100 - - 9118/9 Konttiaho 1 Claim 0-0 9118/11 Konttiaho 2 Claim 0-0 9118/12 Konttiaho 3 Claim 0-0 9118/13 Konttiaho 4 Claim 0-0 9118/14 Konttiaho 5 Claim 0-0 9118/15 Konttiaho 6 Claim 0-0 9118/32 Murronmaa Claim 0-0 9117/1 Petajavaara 1 Claim 100 - - 9117/2 Petajavaara 2 Claim 100 - - 9117/3 Petajavaara 3 Claim 100 - - 9117/4 Petajavaara 4 Claim 100 - - 9117/5 Petajavaara 5 Claim 100 - - 9117/6 Petajavaara 6 Claim 100 - - 9117/7 Petajavaara 7 Claim 100 - - 9117/8 Petajavaara 8 Claim 100 - - 9117/9 Petajavaara 9 Claim 100 - - 9117/10 Petajavaara 10 Claim 100 - - 9117/11 Petajavaara 11 Claim 100 - - Hangaslampi 7- ML2014:0115-01H 12 EL 0 - - 9182/1 Mutka-Aho 1 Claim 0-0 9267/1 Mutka-Aho 2 Claim 0-0 9267/2 Mutka-Aho 3 Claim 0-0 9267/3 Mutka-Aho 4 Claim 0-0 9267/4 Mutka-Aho 5 Claim 0-0 9267/5 Mutka-Aho 6 Claim 0-0 ML2011:0021-01H Hangaslampi 13 EL 0 - - ML2012:0056-01H Hangaslampi 14 EL 0 - - ML2011:0022-01H Ollinsuo EL 0 - - ML2011:0023-01H Konttiaho 33 EL 0-0 ML2011:0024-01H Murronmaa 2 EL 0-0 ML2012:0088-01H Koppelokorpi EL 0 - - ML2013:0126-01H Sarvisuo EL 0 - - ML2013:0127-01H Peräpalo EL 0 - - ML2014:0116-01H Kontti-mutka 1-6 EL 0 0 - VA2013:0003-01 Reposuo Res 100 - - VA2013:0031-01 Salmijärvi Res 100 - - VA2013:0061-01 Korkeaharjunsuo Res 100 - - VA2014:0044-01H Hangaslehto Res 100 - - 4843 Kutuvuoma MP 100 - - 9129/1 Kutuvuoma 4 Claim 100 - - 9129/2 Kutuvuoma 5 Claim 100 - - 9275/1 Kutuvuoma 6 Claim 100 100 - Disposed during % Page 17
Dragon Mining Limited ly Activities Report ended 31 December 2014 Project Tenements Held at end of Acquired during Disposed during ID Name Type % % % Silasselkä Aakenusvaara Käsivarsi 9275/2 Kutuvuoma 7 Claim 100 100-9275/3 Kutuvuoma 8 Claim 100 100-9275/4 Kutuvuoma 9 Claim 100 100-9275/5 Kutuvuoma 10 Claim 100 100-9275/6 Kutuvuoma 11 Claim 100 100-9275/7 Kutuvuoma 12 Claim 100 100-9275/8 Kutuvuoma 13 Claim 100 100-9275/9 Kutuvuoma 14 Claim 100 100-9275/10 Kutuvuoma 15 Claim 100 100-9275/11 Kutuvuoma 16 Claim 100 100-9275/12 Kutuvuoma 17 Claim 100 100-9275/13 Kutuvuoma 18 Claim 100 100-9275/14 Kutuvuoma 19 Claim 100 100-9275/15 Kutuvuoma 20 Claim 100 100-9275/16 Kutuvuoma 21 Claim 100 100 - VA2014:0009-01H Kutuvuoma North Res 100 - - VA2014:0029-01H Kutuvuoma South Res 100 - - 9202/1 Silasselkä 1 Claim 100 100-9202/2 Silasselkä 2 Claim 100 100-9202/3 Silasselkä 3 Claim 100 100-9202/4 Silasselkä 4 Claim 100 100-9202/5 Silasselkä 5 Claim 100 100-9202/8 Silasselkä 8 Claim 100 100-9202/9 Silasselkä 9 Claim 100 100-9202/10 Silasselkä 10 Claim 100 100-9202/11 Silasselkä 11 Claim 100 100-9202/12 Silasselkä 12 Claim 100 100-9202/13 Silasselkä 13 Claim 100 100-9202/14 Silasselkä 14 Claim 100 100-9202/15 Silasselkä 15 Claim 100 100-9202/16 Silasselkä 16 Claim 100 100-9202/17 Silasselkä 17 Claim 100 100-9202/18 Silasselkä 18 Claim 100 100-9202/19 Silasselkä 19 Claim 100 100 - VA2014:0007-01H Silasselkä-East Res 100 - - VA2014:0032-01H Silasselkä North Res 100 - - ML2014:0059-01H Aakenusvaara EL 0 - - 8319/1 Aakenusvaara Claim 0-100 8365/1 Saattopora 1 Claim 0-100 8365/2 Saattopora 3 Claim 0-100 8365/3 Saattopora 2 Claim 0-100 8330/16 Ruossa 9 Claim 0-100 8330/17 Ruossa 10 Claim 0-100 8330/20 Ruossa 13 Claim 0-100 8330/21 Ruossa 14 Claim 0-100 8330/22 Ruossa 15 Claim 0-100 8330/23 Ruossa 16 Claim 0-100 8330/1 Sarvi 1 Claim 0-100 Page 18
Dragon Mining Limited ly Activities Report ended 31 December 2014 Project Tenements Held at end of ID Name Type % % Acquired during 8330/2 Sarvi 2 Claim 0-100 7014 Hietaharju MC 5 - - 7922 Peura-aho MC 5-5 ML2012:0047 Vaara EL 5 - - Kuhmo Joint ML2013:0048 Kauniinlampi EL 5 - - Venture (Note ML2013:0002 Peura-aho EL 5 - - 1) 8745/1 Hietaharju North Claim 5 - - ML2013:0047 Sika-aho EL 5-5 ML2013:0003 Arola EL 5 - - AUSTRALIA WESTERN AUSTRALIA Weld Range (Note 2) M 20/246 M 39.95 - - M 51/434 M 39.95 - - M 51/442 M 39.95 - - M 51/443 M 39.95 - - M 51/457 M 39.95 - - M 51/481 M 39.95 - - M 51/498 M 39.95 - - M 20/246 M 39.95 - - M 51/719 M 39.95 - - M 51/872 M 39.95 - - M 51/873 M 39.95 - - M 51/874 M 39.95 - - M 51/875 M 39.95 - - M 51/876 M 39.95 - - E 20/844 E 0 - - E 20/845 E 0 - - Disposed during Notes * Includes area previously referred to as 3965 - Pohjasvaara Dragon Mining hold a free carried 5% interest in Kuhmo Joint Venture. Dragon Mining 1 hold full rights to gold and silver on Kuhmo Joint Venture tenements. 2 Dragon Mining hold a 39.95% interest in unlisted entity Weld Range Metals Limited. % EC EP EL MC Res M E Exploitation Concession (Sweden) Exploration Permit (Sweden) Exploration Licence (Finland) Refers to tenements applied for after 1 July 2011 in accordance with new Finnish Mining Act. Prior to 1 July 2011 tenements were referred to as Claims. Mining Concession (Finland) Reservation Notification (Finland) Mining Lease (Western Australia) Exploration Licence (Western Australia) Page 19
Dragon Mining Limited ly Activities Report ended 31 December 2014 Farm-ins/Farm-outs Project Tenements Held at end of Acquired during Disposed during ID Name Type % % % FINLAND Hanhimaa Earn-In (Note 1) ML2013:0060-01H Suksee 1 EL 100 - - ML2012:0173-01H Kello 47 EL 0 - - ML2014:0010-01H Kello 51-53 EL 0 - - Kello 47 Claim 0-100 8244/2 Kello 48 Claim 0-100 8244/3 Kello 49 Claim 0-100 8244/4 Kello 50 Claim 0-100 8398/1 Kello 51 Claim 0-100 8398/2 Kello 52 Claim 0-100 8398/3 Kello 53 Claim 0-100 8536/1 Kello 54 Claim 100 - - 8536/2 Kello 55 Claim 100 - - 8536/3 Kello 56 Claim 100 - - 8536/4 Kello 57 Claim 100 - - 8536/5 Kello 58 Claim 100 - - 8536/6 Kello 59 Claim 100 - - 8536/7 Kello 60 Claim 100 - - 8536/8 Kello 61 Claim 100 - - 8536/9 Kello 62 Claim 100 - - 8536/10 Kello 63 Claim 100 - - 8536/11 Kello 64 Claim 100 - - 8536/12 Kello 65 Claim 100 - - 8536/13 Kello 66 Claim 100 - - 8536/14 Kello 67 Claim 100 - - 8536/15 Kello 68 Claim 100 - - 8536/16 Kello 69 Claim 100 - - 8536/17 Kello 70 Claim 100 - - 8536/18 Kello 71 Claim 100 - - 8536/19 Kello 72 Claim 100 - - 8536/20 Kello 73 Claim 100 - - 8536/21 Kello 74 Claim 100 - - 8536/22 Kello 75 Claim 100 - - 8716/1 Kello 78 Claim 100 - - 8816/1 Kello 79 Claim 100 - - 8816/2 Kello 80 Claim 100 - - 8816/3 Kello 81 Claim 100 - - 9116/1 Kello 82 Claim 100 - - 9116/2 Kello 83 Claim 100 - - 9116/3 Kello 84 Claim 100 - - 9116/4 Kello 85 Claim 100 - - 9116/5 Kello 86 Claim 100 - - 9116/6 Kello 87 Claim 100 - - 9116/7 Kello 88 Claim 100 - - Page 20
Dragon Mining Limited ly Activities Report ended 31 December 2014 Project Tenements Held at end of Acquired during Disposed during ID Name Type % % % ML2011:0005 Kielisenmaa EL 100 - - ML2012:0095 Suksee 2-16 EL 100 - - ML2011:0065 Kello 12 EL 100 - - ML2013:0029-01H Sieku EL 0 - - Notes 1 Dragon Mining diluting down to 30% interest. EL Res Exploration Licence (Finland) Reservation Notification (Finland) Page 21