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PROJECT DETAILS August 2014

PROJECT DETAILSPROJECT DETAILS . August 2014 . Executive Summary . InterGroup Mining Pty Ltd has a major gold exploration project located in North Queensland, Australia, in an underexplored

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Page 1: PROJECT DETAILSPROJECT DETAILS . August 2014 . Executive Summary . InterGroup Mining Pty Ltd has a major gold exploration project located in North Queensland, Australia, in an underexplored

PROJECT DETAILS

August 2014

Page 2: PROJECT DETAILSPROJECT DETAILS . August 2014 . Executive Summary . InterGroup Mining Pty Ltd has a major gold exploration project located in North Queensland, Australia, in an underexplored

Executive Summary InterGroup Mining Pty Ltd has a major gold exploration project located in North Queensland, Australia, in an underexplored high gold bearing district, west of Charters Towers.

The compelling nature of the project includes the potential for a major discovery, characterised by surface mineralisation, which allows low cost production and accelerated lead times. The company is currently expanding it’s Exploration Permit (EPM) to a Mining Lease (ML).

Exploration is currently focused on 2 areas, known as Brilliant Brumby and The Worm. 835 surface geochemical samples have been taken, over 18 square kilometers, and include 121 stream sediment samples, 539 Soil samples and 175 Rock Chip Samples.

Very high gold values were discovered in the samples, including 176 g/t gold, 95.7 g/t gold & 82.2 g/t gold at Brilliant Brumby, as well as several samples above 20 g/t gold, along with excellent results from soil samples. Multiple samples contain visible gold.

Recent drill chip samples have included intercepts with gold values up to 74.9 g/t gold, confirming high grade ore continues at depth.

THE GEOLOGISTS ADVISE: • large-scale geological structures have been identified at Brilliant Brumby and these appear to represent an unusual potential along a 2 kilometer strike length for significant gold mineralization from surface to 120 meters +. • these structures display magnetite destructive alteration typical of quartz-vein mesothermal “Charters Towers style” gold mineralizing systems that are well known for their high grade and deep structures essentially, there are 2 conclusive targets – the high grade narrow veins and the possibility for an intrusive driven bulk target.

DRILL CHIP SAMPLE 74.9 G/T GOLD

GOLD NUGGETS FROM SEDIMENT SAMPLING

AT THE WORM

Page 3: PROJECT DETAILSPROJECT DETAILS . August 2014 . Executive Summary . InterGroup Mining Pty Ltd has a major gold exploration project located in North Queensland, Australia, in an underexplored

Project Area

22km

20km

89 Sub-Blocks 249 square kms

89 Sub-Blocks 249 square kms

LOCATION & PROJECT AREA

The project is located in North Queensland, Australia, approximately 250 kilometers from the major seaport of Townsville, west of Charters Towers. It is ideally situated within an underexplored area of the Charters Towers Gold Province, which has produced over 20 million ounces of gold. Extensive research and exploration has been carried out on the site since 2010 and an intense on site reconnaissance has taken place over recent years.

Page 4: PROJECT DETAILSPROJECT DETAILS . August 2014 . Executive Summary . InterGroup Mining Pty Ltd has a major gold exploration project located in North Queensland, Australia, in an underexplored

TENURE

EPM Tenements within

Project Area

EPM NAME DATE GRANTED

TERM Years

EPM 25421 Pointer 21.1.14 5

EPM 25299 Spear 8.4.14 5

EPM 25431 Colts 20.5.14 5

EPM 18419* Brilliant Brumby

10.5.10** 5

EPM19765* Brilliant Brumby 2

14.12.12 5

* Denotes EPM held in the name of Jodo Gold Pty Ltd A wholly owned subsidiary of InterGroup

** Note that this EPM will progress to a Mining Lease ML in which case the term continues until mining is complete.

A close review of the outcropping geology and geochemical assay results has narrowed the initial focus area to a selection of anomalous locations in two areas referred to as Brilliant Brumby and The Worm. A trend in the mineralisation, of a combined strike length of more than 2 kilometers has been identified at Brilliant Brumby and a potential one kilometer plus strike length at The Worm. Comprehensive rock chip, stream sediment and soil samples have been taken to determine the extent and quality of the mineralisation. To date this exploration has involved 835 surface geochemical samples covering the primary focus areas, over 18 square kilometers, and include 121 stream sediment samples, 539 soil samples and 175 rock chip samples. The highlights of these include rock chip sample results of 176 grams per tonne gold & 95.7 grams per tonne gold at Brilliant Brumby, as well as several samples above 20 grams per tonne gold, and an extraordinary 171,000 parts per billion stream sediment sample at The Worm, along with excellent results from soil samples. Multiple samples contain visible gold.

MAIN FOCUS AREAS

BRILLIANT BRUMBY

THE WORM

Ground magnetic survey completed across the 2 areas - total of 550 line kms have been surveyed resulting in a 13.6 sq km coverage.

Page 5: PROJECT DETAILSPROJECT DETAILS . August 2014 . Executive Summary . InterGroup Mining Pty Ltd has a major gold exploration project located in North Queensland, Australia, in an underexplored

It has successfully identified numerous large scale structures and has helped to confirm priority drill hole targets at Brilliant Brumby - shown here as Surprise, Silica Ridge, Brilliant Brumby North and Brilliant Brumby. This is also the case at The Worm, where four priority drill hole targets are identified. These areas are underexplored and had never been drilled, prior to InterGroup’s first stage drill program.

Ground Magnetic Survey

BRILLIANT BRUMBY

Interpreted Magnetic Structures

DRILL TARGETS CIRCLED

MULTIPLE SAMPLES CONTAIN VISIBLE GOLD

DRILL TARGETS CIRCLED

Interpreted Magnetic Structures

THE WORM

GOLD NUGGET FROM BRILLIANT BRUMBY

To date a total of 550 line kilometers have been surveyed resulting in a 13.6 square kilometer coverage, across the two main focus areas.

Page 6: PROJECT DETAILSPROJECT DETAILS . August 2014 . Executive Summary . InterGroup Mining Pty Ltd has a major gold exploration project located in North Queensland, Australia, in an underexplored

Drill Program 1. A comprehensive drilling program of over 3,000 meters commenced on site in December 2013 and was completed in early 2014. Drill Program 2. A further drill program of over 1600 meters was carried out in June 2014. Multiple high grade gold intercepts were encountered in the drill programs. What follows is a brief summary, however, a more detailed report is available on the results of the drilling program and proposed 2014 work program, on the company website at www.igmining.com.

Drilling Program

2014 Drilling: • Program 1 - successfully intersected high grade gold • Program 2 - successfully intersected additional high grade gold • identified lode targets at depth • revealed mineralisation is open at depth and along strike

Exploration highlighted: • Worm North drilling targets • potential Brilliant Brumby line extensions under cover to the north • potential for more gold lodes in stream sediment anomaly areas.

Page 7: PROJECT DETAILSPROJECT DETAILS . August 2014 . Executive Summary . InterGroup Mining Pty Ltd has a major gold exploration project located in North Queensland, Australia, in an underexplored

Drilling Results Summary

Drill Program 1.

An independent report on the drill results by geologists I2M Associates states “The Terra Search personnel report that the ground-magnetic surveys have identified numerous large-scale geological structures and these appear to represent an unusual potential along a 2 kilometer strike length for significant gold mineralization at depths of 120 meters and deeper. These structures display magnetite destructive alteration typical of quartz-vein mesothermal “Charters Towers style” gold mineralizing systems that are well known for their high grade and deep structures carrying significant gold ore that have been mined even at prices much lower than today”.

In summary, numerous high-grade gold intercepts were encountered in the main Brilliant Brumby area, including 7 meters @ 3.49 grams per tonne gold that carries 1 meter @ 21.9 grams per tonne gold in Hole #10; 6 meters @ 3.93 grams per tonne gold that carries 1 meter @ 21.4 grams per tonne gold at Hole #14 in Brilliant Brumby North area; and 40 meters @ 0.95 grams per tonne gold in Hole #22 at Silica Ridge. The thicker, lower-grade zones reported in Hole #22 at Silica Ridge suggest that geological conditions are conducive for larger masses of mineralization with higher gold grades being present in the immediate area, at similar depths, along the trends indicated by the magnetic surveys and anomalous geochemical sampling at the surface. The most significant in terms of grade and down hole thickness are Holes #10 & #8, with 7 meters @ 3.49 grams per tonne gold, and 16 meters @ 0.48 grams per tonne gold, respectively. In the Silica Ridge area, drilling produced the most encouraging results of the program to date with 28m @ 1.27 grams per tonne gold in drill hole #22. The hole data suggest that a significant mineralized zone has developed in this area.

Page 8: PROJECT DETAILSPROJECT DETAILS . August 2014 . Executive Summary . InterGroup Mining Pty Ltd has a major gold exploration project located in North Queensland, Australia, in an underexplored

Drilling Results Summary

Drill Program 2.

Gold Reef open at depth

below 40m

Gold Reef open at depth

Below 30m

SILICA RIDGE NORTH

SILICA RIDGE NORTH SILICA RIDGE SOUTH

Gold Reefs may extend

laterally off section

Promising Ore Shoot unmined

Non outcropping Reef in footwall

of main structure

Mineralisation Open Below 50m

Gold Reef open at

depth >60m

High grade Footwall reef

Continues North 80m

From BBRC039 Section

FREE GOLD IN FOOTWALL REEF 1m at 3.1 g/t Au

7m at 2.6 g/t Au

2m at 2.3 g/t Au

1m at 74.9 g/t Au

1m at 1.9 g/t Au

BRILLIANT BRUMBY NORTH

BRILLIANT BRUMBY NORTH

Gold Reef open at

depth >90m

DRILL CHIP 74.9 G/T Au

SILICA RIDGE NORTH

SILCA RIDGE SOUTH

BRILLIANT BRUMBY NORTH

7m @ 2.6 g/t Au cuttings BBRC037 Silica Ridge South

1.

1. 2. 2.

3.

3.

3.

4.

4.

4.

5.

5.

Page 9: PROJECT DETAILSPROJECT DETAILS . August 2014 . Executive Summary . InterGroup Mining Pty Ltd has a major gold exploration project located in North Queensland, Australia, in an underexplored

Silica Ridge

Brilliant Brumby

Gold Bearing Ore

High Grade Gold Bearing Ore

3D Interpretation The ore bodies are suitable for open pit mining

Page 10: PROJECT DETAILSPROJECT DETAILS . August 2014 . Executive Summary . InterGroup Mining Pty Ltd has a major gold exploration project located in North Queensland, Australia, in an underexplored

89 Sub-Blocks 249 square kms

GOLD GRADE - WHAT IS AVERAGE ?

BRILLIANT BRUMBY HISTORICAL MINE

AVERAGE GOLD GRADE

This mine (located in the Project Area EPM) was worked between 1937- 1940 producing 790 oz of gold from 950 tons of ore.

26 g/t Au

CHARTERS TOWERS HISTORICAL MINE

AVERAGE GOLD GRADE

This mine produced over 7 million oz of gold and is Australia’s richest major gold field 34 g/t Au

GLOBAL GOLD MINES PRODUCING & UNDEVELOPED

AVERAGE GOLD GRADE GLOBALLY

After examining all 580 gold deposits held by public, private and government backed companies here is what was found. (Source: Natural Resource Holdings)

1.01 g/t Au

Charters Towers - 34 g/t

Brilliant Brumby Historic Mine

26 g/t

Global Average 1.01 g/t

Page 11: PROJECT DETAILSPROJECT DETAILS . August 2014 . Executive Summary . InterGroup Mining Pty Ltd has a major gold exploration project located in North Queensland, Australia, in an underexplored

5 Open Pit Gold Mining Targets

Brilliant Brumby

The Worm

1. 2. 3. 4.

5.

SILICA RIDGE NORTH

SILICA RIDGE SOUTH

BRILLIANT BRUMBY NORTH

BRILLIANT BRUMBY

Page 12: PROJECT DETAILSPROJECT DETAILS . August 2014 . Executive Summary . InterGroup Mining Pty Ltd has a major gold exploration project located in North Queensland, Australia, in an underexplored

Project Summary

The surface rock chip samples of 95 g/t Au and 176 g/t Au (3 to 6 oz/ton gold) were assayed in February, 2014. This vein system and its continuity to depth was also discovered in February, 2014.

The vein system carrying drill chip samples of 74.9 g/t Au was unveiled in June 2014, along with further rock chip samples of over 82 g/t Au.

The broader economical grades were confirmed to be consistent in depth and width throughout as a result of both drill programs 1 & 2.

It is considered that the next drill program (3) in September / October, 2014 will confirm further continuity and expand the resource further as will the February, 2015 drill program (4) – expanding the resource further in the June, 2015 drill program (5).

The on-ground geologists, as well as independent geologists observing all findings - all agree it is it a large scale high grade project, typical of the quartz-vein mesothermal “Charters Towers style” gold mineralizing systems that are well known for their high grade and deep structures.

The Company is proceeding to a Mining Lease and could be in production before the end of 2015.