Remaining Resources

At the time of liquidation, South African Mineral Resource Committee (SAMREC) compliant Mineral Resources within the Selebi Mines property boundary were reported as in-situ and depleted for mining as of September 30, 2016.  These historical Measured and Indicated Mineral Resources used a nickel equivalent (NiEq) cut-off grade of 0.4% and were estimated to total 17.83 Mt at grades of 0.87% Ni and 1.42% Cu containing 155, 000 tonnes (t) Ni and 253,000 t Cu.  Historical Inferred Mineral Resources were estimated to total 15.34 Mt at grades of 0.71% Ni and 0.89% Cu containing 109,000 t Ni and 136,000 t Cu.  The NiEq cut-off grade was based on a ratio of nickel and copper prices where NiEq = %Ni + (Cu price/Ni price) *%Cu.  Nickel and copper prices used were US$8.00/lb Ni and US$3.00/lb Cu, respectively.  This estimate is considered to be historical in nature and should not be relied upon, however, it is indicative of the presence of mineralization on the Selebi Mines property.  A qualified person has not completed sufficient work to classify the historical estimate as a current Mineral Resource and PNRL is not treating the historical estimates as current Mineral Resources.