Asaplus Resources Ltd

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THE SILVERSTONE PROJECT

The Silverstone Project

The Silverstone Project, licensed under Datian Silverstone Mining Co., Ltd (the "Company"), is a 5.6km2 tenement located in Datian County, Sanming City, Fujian Province in the People's Republic of China, under exploration licence number T35120110102043628 which expired on 30 October 2014. The Company has applied to the relevant authorities for an renewal of time to apply for the renewal of this exploration permit. As the Company does not have any immediate plan to commence commercial operations at the Silverstone Project, the Company will only apply for the extension of the exploration permit (as a precursor for the Company to complete its application for an extraction licence) at such time when demand for and prices of iron ore make it feasible to commence commmercial operations at the Silverstone Project.

The Silverstone Project is located on the west side of the Dai Yun mountains in Datian County, Fujian Province in the PRC. The nearest major town is Datian (population: approximately 400,000) which is located about 40km by road from the project area.

The location of Fujian Province in the PRC and the location of the Silverstone Project are set out in Map 1 and Map 2 below:


  Map 1 Location of Fujian Province in the PRC

The topography of the project area is dominated by steep hills and low valleys, with the highest peak having an elevation of 786 metres above sea level, which is 430 metres above the lowest part of the project. A sample snapshot of the landscape of the project area is shown as Photo 1.

Iron ore is not uncommon within the area with at least 9 iron ore mines either currently producing or having recently been mined within 40km of the project. The local area is also host to deposits of other minerals such as coal, copper, lead, zinc and manganese

The Silverstone Project is highly prospective for iron ore with resources already being defined within 4 areas and with the possibility of additional ore resources being defined. The defined resources are either at the surface or close to the surface (for an example, see Photo 2), and are of a grade that nearby steel mills are prepared to accept. The iron ore should be able to be beneficiated to a higher grade. Local infrastructure such as population centres, roads, power supply and rail is already established with many steel mills and pig iron facilities being close by.


Map 2 Location of the Silverstone Project in Fujian Province

Photo 1 Landscape of the Silverstone Project

Photo 2 A test pit on the Silverstone Project

On 21 August 2011 when the prospectus of Asaplus Resources Limited was issued, the Silverstone Iron Ore Project had an Inferred Resource of 1,527,500 tonnes at an average grade of 45.42% Fe. Work carried in the final quarter of 2012 and the first quarter of 2013 consisted of diamond drilling in the areas known as Ore Body I and Ore Body IV. The work also included a re-interpretation of the controls of the iron ore mineralisation of the region.

With additional data available, a new resource estimate was conducted. The main changes in the resources are from Ore Body I, in which additional ore was discovered to the east. Additionally, a “new” Ore Body II (which is really an extension of Ore Body I to the north) has added significant amounts to the resources. Ore Body IV has also seen an increase in resources due to the additional drilling carried out.

Body III has also increased in size, not due to any additional drilling, but through a re-interpretation of the previous data. No work was carried out on Ore Body II, and so the resource figures remain the same as before. Currently there is drilling being conducted on Ore Body VI, which is an area to the south-west of Ore Body I. No resource can be calculated at this time in relation to drilling data from work on Ore Body VI because assay data is not yet available.

The map set out herein shows the locations of the ore bodies and potential ore bodies within the tenement area of the Silverstone Project.


Locations of the ore bodies and potential ore bodies

In summary, based on a 30% Fe cut off grade, there has been an increase in the resource estimate figures by nearly 2,000,000 tonnes, but with a small decrease in the overall average grade. The decrease in overall average grade is due largely to Ore Body II, which has an average grade of 39.38%.

The table below shows the original resources as at August 2012, compared to the current resources. It should be noted that in all cases the resources are in the Inferred Category and are compliant with current JORC standards.

The information in this report that relates to Exploration Results, Mineral Resources or Ore Reserves is based on information compiled by Mr Peter Peebles who is a member of the Australasian Institute of Mining and Metallurgy and a member of the Australian Institute of Geoscientists . Mr Peebles is employed by Darlington Geological Services Pty Ltd. Mr Peebles has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2004 Edition of the 'Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr Peebles consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.