TARGETMINERALS EXPLORATION INITIATIVE

Frequently Asked QuestionsRound 2Last updated: 11/11/2016

1. What is the intent of the $AUD15 million TARGET initiative?The Victorian Government aims to facilitate investment and generate jobs by stimulating

responsible exploration of Victoria’s mineral resources (excluding coal and gas) , targeting Victoria’s

most prospective geological provinces.

2. How is this initiative different from other grants initiatives? TARGET (Round 2) funding is available for a wide range of eligible exploration activities.

Other exploration grants initiatives have typically been restricted to payments on a 50/50 basis

for each metre of drilling, up to a maximum grant limit.

This limits their potential impact by, for example:

- Limiting the depth of drilling, thereby missing potential prospective resources (the most

prospective resources are likely to be at depth);

- Limiting the range of exploration techniques (e.g, excluding other survey techniques and

laboratory assays).

3. What are the eligibility criteria for TARGET (Round 2) grants?A company must meet each of the Eligibility Criteria outlined below,

a) Hold a valid licence issued under the Mineral Resources (Sustainable Development) Act

1990 (MRSDA) in the designated TARGET (Round 2) Project Area (see Figure 1), with the

proposed exploration program to occur within this area.

Licences that are pending renewal or a decision on a Retention/Mining licence application

(and the underlying licence is held by the Applicant) as at 14 November 2016 will be

considered eligible to apply.

b) Propose to explore for base metals and/or gold.

c) Either:i. Be fully compliant with its licence requirements and have no outstanding compliance

and/or enforcement notices, directions or prosecutions (issued under the MRSDA or any

other regulatory authority relating to minerals) issued on any licence within Victoria

which is held by the same legal entity or a wholly owned subsidiary, or

ii. If the company does not satisfy this requirement (3(c)(i) above), the company must, as

part of its TARGET grant application:

disclose and provide details of any outstanding compliance and/or enforcement

notices, directions or prosecutions (issued under the MRSDA or any other

regulatory authority relating to minerals) issued on any licence within Victoria

which is held by the same legal entity or a wholly owned subsidiary, and

provide any rectification plans or commitments

d) Undertake to advise The Department’s nominated officer immediately of any compliance and/or enforcement notices, directions or prosecutions which are issued on any licence within Victoria which is held by the same legal entity or a wholly owned subsidiary, during the course of the evaluation, Grant Agreement execution and during the exploration program to completion (if successful).

Figure 1 - TARGET (Round 2) Project Area

4. Is TARGET (Round 2) funding only open to existing tenement holders?Yes, only companies holding a current licence in the TARGET (Round 2) Project Area will be

eligible to receive grant 2 funding. Any licences which are pending renewal or a decision on a

Retention/Mining licence application as at 14 November 2016 will be considered eligible to apply.

5. I have an exploration licence outside of the TARGET (Round 2) Project Area. Will I still be able to apply for a TARGET grant?

There may be further opportunities for exploration licence holders to apply for grant funding in future

TARGET funding rounds.

6. Do I have to have submitted a Registration of Interest to be considered for a TARGET (Round 2) grant?

No, all companies with projects that satisfy the eligibility criteria can submit a proposal for TARGET

(Round 2) grants.

7. What are the key dates for TARGET (Round 2) grants?

Timetable for TARGET (Round 2) grants:

Activity Date

Request for proposals opens Monday 14 November 2016

Request for proposals closes 5pm AEDT Tuesday 10 January 2016

Assessment of proposals February-March 2017

8. What commodities/minerals will be eligible for TARGET (Round 2) funding? Base metals and/or gold.

9. What exploration activities are eligible for funding under TARGET (Round 2)? A list of the eligible exploration activities is included as Appendix 1 of the TARGET (Round 2)

Guidelines.

All drilling, sampling, geophysical and geochemical surveys are eligible, as well as site

preparation and rehabilitation.

10. What activities are not eligible for funding under TARGET (Round 2)? Activities within an identified existing mineral resource,

Exploration for commodities other than base metals and gold,

Activities where a demonstrable benefit or increase in geoscience knowledge, which would

result from the proposed exploration program for which TARGET (Round 2) grant funding is

sought, is absent.

11. How will proposals be assessed?The TARGET (Round 2) Guidelines provide information on the assessment process.

Proposals will be assessed against the evaluation criteria which are detailed in Section 6 of the

Round 2 Guidelines and include:

- Alignment of an exploration proposal with a company’s growth strategy;

- Financial viability;

- Team qualifications and experience;

- Community engagement activities;

- Technical merit;

- Economic merit;

- Timetable; and

- Budget.

An external Technical Evaluation Panel comprising stakeholder engagement, technical

geoscience and exploration commercial experts will assess all eligible proposals using the

evaluation criteria to evaluate and rank proposals.

Licence compliance and standing will be assessed to determine whether applicants are fully

compliant with their licence requirements and have no outstanding compliance and/or

enforcement notices, directions or prosecutions which are issued on this or any licence within

Victoria which is held by the same legal entity or a wholly owned subsidiary

12. Can we apply for a TARGET grant to drill below or along strike from our existing mineral resource?Yes, as long as the exploration target is not within an existing mineral resource.

13. What verification do we need to provide for our expenditure if we do get a grant?All grants will be paid on the receipt of the milestone specific geological data and reports, and

corresponding tax invoices (as specified in the grant agreement).

14. When will payment of grants occur?TARGET grants will be paid incrementally over the life of the program following the delivery of

prescribed milestones and corresponding tax invoices, which will be negotiated in individual grant

agreements. No TARGET grants will be paid in advance of exploration activities.

15. Do applicants need to have an approved work plan in place prior to submitting a proposal?No.

16. What sort of feedback can unsuccessful applicants expect?Feedback will be limited to advising applicants which eligibility criteria and assessment criteria were

not satisfied. No comparative feedback relative to other proposal will be given.

17. How detailed does the project proposal need to be?The project proposal will need to provide sufficient information for the Technical Evaluation Panel to

assess the proposal against the evaluation criteria and rank it against competing proposals. The

suggested word count should be used as a guide only.

18. Will applicants have an opportunity to present on their proposal as part of the evaluation process and/or provide additional information?Written proposals will be assessed on a standalone basis, and it is the responsibility of applicants to

ensure that their proposal contains all information that the applicant wishes to be considered, as

part of the evaluation process.

19. When does the proposed exploration program need to start and be completed?The term of the grant agreement will be negotiated with each grant recipient based on the scope

and proposed timings of the grant funded activities. The preference will be for the exploration

program to commence within six months of executing the grant agreement.

20. What are the reporting requirements for the program?Reporting requirements will be specified in the grant agreements, depending on the scope of each

program. Milestone based reports and a final report will need to be supplied with corresponding tax

invoices.

21. What are the requirements regarding confidentiality of information?All program data, results and reports are to be made available at the time of submission of the final

report. This information will be made publicly available after a confidentiality period of three months

after approval of the final report.

22. Can we use a TARGET grant to fund exploration outside Victoria?No.

23. Can we receive a TARGET grant if we have any outstanding compliance, enforcement or other notices relevant to minerals issued on the licence for which the TARGET application is being made?As specified in the TARGET (Round 2) Guidelines, the Department has the discretion to take into

account any outstanding compliance and/or enforcement notices, directions or prosecutions issued

on any licence in Victoria held by the applicant or fully owned subsidiary, in determining eligibility for

TARGET grants. Applicants must disclose any notices, directions or prosecutions as part of is

proposal.

TARGET milestone payments will not be made if the company (or wholly owned subsidiary) has any

outstanding compliance and/or enforcement notices, directions or prosecutions.

24. Can we receive a TARGET grant if we have any outstanding compliance, enforcement or other notices relevant to minerals issued on any other licences we (or a fully owned subsidiary) holds in Victoria ?As per (23) above.

25. Can the company share of a TARGET funded program be used towards our licence expenditure commitments?No. The purpose of TARGET is to increase expenditure over and above what would otherwise

have been completed to fulfil a licence holders existing obligations.

26. Can we apply for a TARGET grant if only part of our licence is in the TARGET (Round 2) Project Area?Yes, however the proposal can only be for exploration activity on the portion of the licence which is

in the TARGET (Round 2) Project Area.