Radiation Management Plan

Toro Energy Projects

Key Contacts for Radiation Protection

Title Name Contact Number

Geology Manager Dr Greg Shirtliff 0448 122 603

Environmental Scientist / Radiation Safety Officer

Mr Alan Tandy 0488 206 404

Senior Exploration Geologist Mr Sebastian Kneer 0431 657 567

Radiation Protection Advisor Mr Rex Brehney XXXX XXX XXX

Authorised by

Dr Greg Shirtliff Dr Vanessa Guthrie

Geology Manager Executive General Manager

Table of Contents

1 Scope of the Radiation Management Plan

This Radiation Management Plan (RMP) has been prepared by Toro Energy Limited (Toro) for its Wiluna Uranium Project and Exploration activities. The Wiluna Uranium project is currently comprised of six ore bodies at Centipede, Millipede, Lake Way, Lake Maitland, Dawson Hinkler and Nowthanna. It is anticipated that during the lifespan of this RMP activities on the project shall be restricted to those required to further the development of the projects from exploration targets to economic ore bodies. The RMP will also be used to manage radiation exposures on all Toro exploration activities at current and future exploration tenements.

Activities expected to be covered by this RMP include:

Resource drilling and potential resource investigations;

Water exploration drilling;

Environmental baseline investigations; and

Engineering and geotechnical investigations.

This RMP will not be used during construction or operations of the project and will be updated and reviewed should the status of the project change while this RMP is still in force.

The RMP provides the framework for the safe exploration by employees of Toro and its contractors, and will assist the company in minimising radiation exposure to workers, members of the public and the environment. It outlines the radiation hazards associated with exploration on the Wiluna Uranium Project and Greenfields exploration projects and the controls that will be put in place for the management and monitoring of radiation.

The document has been prepared to address requirements of the Western Australian Department of Mines and Petroleum (DMP), Mine Safety and Inspection Regulations 1995 [1], Regulation 16.7 and follows the guidelines set out in the Department of Mining & Petroleum, Managing naturally occurring radioactive material (NORM) in mining and mineral processing guideline. NORM 2.1. Preparation of a radiation management plan - exploration, 2009.

The Radiation Safety Act 1975 (WA) defines natural radioactive material as greater than 0.03MBq/kg, this is equivalent to approximately 170ppm Uranium ore (allowing for all decay products in the chain). The average grade of material for the Wiluna Uranium Resource, published by Toro in their 2009 Annual report, is approximately 500ppm. Based on this it is expected that radioactive material, as defined by the act, will be encountered during the drilling operation. In addition the radiation safety act has an exempt quantity for natural uranium of 4MBq. At an average ore grade of 500ppm, this is equivalent to approximately 45kg. It is expected that more that this amount will be intersected and stored as a result of this exploration program.

2 Introduction

2.1 Project Details and Description of Works

The Wiluna Uranium Project is currently made up of six separate ore bodies situated close to the town of Wiluna in Western Australia’s northern goldfields. Also covered by this RMP is the Lake Mackay deposit, named Theseus, located on the WA / NT border. The tenements that make up these deposits are listed in Table 1.

Under the management of this plan Toro will limit its activities to drilling programmes and surface rock sampling for exploration works within the tenements listed in Table 1. This work is planned to be carried out with specialist contractors and drilling contractors using Air core, RC percussion or sonic core drilling equipment to explore for and define the economic uranium resources within this project so as to prepare for JORC Code compliant mineral resource and ore reserve estimates.

Figures 1 and 2 show the location of the projects covered by this RMP. Field works across any deposit will be limited to short campaigns with specific aims. The normal duration of these programmes is likely to be less than six months, and will be timed to ensure the most favourable weather conditions are encountered. Because the campaigns are likely to be short and intense, the work force required is likely to be less than 20 people and is normally limited to just those absolutely required to ensure the work is performed, and performed safely.

In addition to drilling, uranium exploration activities may include any or all of the following:

Down hole geophysical logging;

Analysis of historical samples;

Collection of rock chip samples;

Collection of soil samples;

Collection of water samples;

Various ground geophysical survey techniques (e.g. seismic); and

Core cutting.

All activities will involve some form of sample collection, of which procedures for the handling, storage, transport and final disposal are all described later in this document.

All samples collected during the exploration program will be stored at the core farm at the Wiluna Uranium Deposit. Management of the radioactive material contained within this farm is described in section 7.

2.2 History of the Project

2.2.1 Wiluna

A number of calcrete hosted uranium deposits were discovered in the Wiluna district in the late 1970's. The Lake Way Deposit was discovered by the Delhi International Oil Corporation (DIOC) – VAM Ltd Joint Venturers in 1972; and the Centipede resource was discovered by Esso Exploration and Production Australia (EEPA) in 1977.

From 1976, detailed geological, metallurgical and environmental studies were conducted on the Lake Way Deposit, culminating in a Draft Environmental Impact Statement in 1981. In the same year, CSR acquired DIOC.

CSR evaluations showed that the Lake Way Project would not meet the Company's hurdle rate of 19% return on equity. This, along with falling uranium prices and the emergence of the Three Mines Policy, resulted in CSRNAM divesting of the project in 1986. CSR's divestment report did, however, note that a combined Lake Way / Centipede Project would have a more attractive return on equity of 24.8%.

EEPA did not develop the Centipede Deposit to the same level, and ultimately relinquished the tenement (and mineral rights) in 1986.

Through a series of gold-focussed joint ventures and tenement purchases (but not a specific uranium strategy) in the 1980's and 1990's, Asarco/Wiluna Mines gained control of both deposits.

At the current time, a number of factors call for a re-assessment of the economic potential of the Lake Way and Centipede Deposits. These include:

Defining a larger resource;

Abolishment of the Labour Government's Three Mines Policy;

Rising uranium prices;

Lower capital and operating costs due to the existence of a mining infrastructure.

Preliminary cash flow calculations indicate that a mining and processing project would be viable, provided that capita l and operating costs are significantly lower (taking into account inflation) than the 1983 estimates. The model is sensitive to capital, metallurgical recovery and the price of uranium.

Since 1972, at least 16 companies have had direct or indirect interests in the Lake Way and Centipede uranium deposits. Important dates related to discovery, development and corporate or government activity are given in the chronology provided in Table 1.

Table 1 History of the Wiluna Uranium Project

Date Event

1972 Lake Way Deposit discovered by DIOC and VAM Ltd (Wyoming Minerals Corporation have -51% interest). Minor airborne radiometric surveys were confirmed by ground radiometric survey, 208 rotary drill holes, creation of better access tracks and sample assaying.

1977 EEPA and its Joint Venture partners (M.l.M., Ince and Seltrust) discover Centipede Uranium Deposit.

1976-1979 Full-scale geological and metallurgical investigations of Lake Way Uranium Deposit.

1978-1981 Environmental, hydrological and meteorological investigations of Lake Way Deposit.

1981 March DIOC and VAM Ltd enter into agreement to supply uranium oxide to Wyoming Mineral Corporation in exchange for their equity. Ownership of Lake Way Deposit is now 53.5% to DIOC and 46.5% to VAM Ltd.

1981 April ERMP / Draft Environmental Impact Statement made available for public review.

1981 December CSR acquires DIOC. All DIOC's interests in Lake Way Deposit assigned to CSR.

1982 Technical audit of Lake Way Project by A.H. Ross & Associates.

1982 EEPA and its partners offer to exchange all uranium rights of the Centipede JV to DIOCNAM Ltd for a cash royalty from production DIOCNAM Ltd are keen to acquire and develop Centipede.

1983 CSR completes divestment study of Lake Way Deposit.

1983 Labor Government's "Three Mines Policy" initiated.

1985 Wyoming Mineral Corporation assigns its rights under the March, 1981 agreement to Westinghouse International Power Systems Company (W IPSC).

1986 March EEPA relinquishes E53/40 (containing Centipede Uranium Deposit). Australian Ores and Minerals (AOM) apply for E53/91.

1986 April Western Alluvials Pty Ltd purchases CSR's and VAM Ltd's interests in Lake Way deposits. Sales contract includes supply uranium oxide to clients.

1987 April Wiluna Exploration Joint Venture between Western Alluvials (25%), BML Holdings Pty Ltd (25%) and Asarco Pty Ltd (50%) formed. Half of Western Alluvials' interest in Lake Way deposits assigned to Asarco.

1987 May M 53/38 and M 53/39, covering Lake Way deposits, granted to Western Alluvials.

1987 July E 53/122 (surrounding M 53/38 and 39) granted to Western Alluvials.

1990 November Asarco Gold Pty Ltd acquires Western Alluvials' and BML's 50% interest in the Wiluna Exploration Joint Venture, resulting in 100% equity in tenements M53/38, M53/39 and E53/122.

Figure 1 Wiluna Uranium Project Location Plan

1992 February Australian Ores and Minerals (AOM) applies for tenement M 53/224, covering most of Centipede Uranium Deposit.

1993 October Asarco Gold buys tenement M 53/224 (containing most of Centipede Uranium Deposit) from Australian Ores and Minerals.

1995 Acclaim Uranium (Barrack Mines Ltd and Outokumpu Pty Ltd)

1996 Uranium prices hit eight year highs.

1996 Coalition Government elected in Australia. ''Three Mines Policy" abolished.

1999 Great Central Mine (JV Manager M53_224)

2003 December Agincourt Resources

2004 October Nova Energy Limited was formed from a joint initiative between Argonaut Capital Limited and Agincourt Resources Limited to acquire, explore, and evaluate the Centipede and Lake Way uranium deposits and surrounding exploration tenements in the Wiluna region of Western Australia.

2007 April Oxiana Limited took over Agincourt

2007 – August to current

Toro Energy Limited took over Nova Energy Limited and commenced work on the tenements

Wilun

a

2.2.2 Lake Mackay

CRA Exploration Pty Ltd regarded the western Amadeus Basin as prospective for diamondiferous pipes and secured 12 tenements to the southwest of Kiwirrkurra with exploration activities occurring during 1993 and 1994. An initial aeromagnetic survey identified “bulls-eye” anomalies that were followed up with ground magnetic surveys and indicator mineral sampling. Three anomalies were drill tested and anomalism was attributed to "secondary magnetic detritus". Relinquishment was recommended.

Aurora Gold (WA) Pty Ltd acquired tenements that covered most of the western Arunta Orogen outcrop and subcrop. Exploration activities commenced in the reporting period to October 1996 on an initial holding of four tenements located in the Pollock Hills area. Activities included airborne radiometrics-magnetics (2765 line km), ground magnetic surveys (54.5 line km), 355 vacuum drill holes for 1,056m, and geochemical assays of 362 drill hole samples and 104 rock chip samples. Low order Cu-Au anomalism was found in the Arunta metamorphics.

A further eleven tenements were acquired by Aurora over the Warumpi Complex that extended the project area to the NT border. Exploration in the reporting period to December 1997 targeted linear geophysical anomalies associated with the Mt Webb Shear Zone. Activities comprised 9 vacuum drill holes for 60m, 731 aircore drill holes for 3,003m, 129km of ground magnetics, 104 rock chip samples, and geochemical analysis of rock chips and drill samples.

At the Pokali location cuprite, malachite and trace gold in quartzite was observed in outcrop within a sequence of quartz-muscovite schist. The best surface sample assay returned 4m @ 9.1% Cu, 3.10% Ag and 0.38 g/t Au. The peak gold value from a surface sample was 20.73 g/t. Drill hole assays returned a peak value of 0.213 ppm Au and anomalous copper. At the Mantati location, anomalous Cu, Ag, and Au assays were returned from surface samples collected from silicified and brecciated acid volcanics. Anomalous Ag was encountered in drillholes. Northeast of Buck Hills anomalous Au was returned from drill holes in sheared felsic intrusives and sheared granite.

During the exploration period to December 1998, activities by Aurora included 1352 vacuum drill holes for 5340m, 217 aircore holes for 1658m, 9 RAB holes for 163m, 21 RC slim-line holes for 590m (Pokali and Mantati only), 254 line km of ground magnetics, 53 rock chip samples, 215 soil samples, and geological mapping. The area of Cu-Au anomalism at Pokali was increased. Minor Ag and Au anomalism was encountered in quartzite and Arunta metamorphics at Mantati and Buck Hills. Gold anomalism at the Uamari locality, south of Pokali, was tested with disappointing results.

During the reporting period to December 1999, BHP Minerals Pty Ltd, in a joint venture arrangement with Aurora, became manager and operator. A single new tenement owned and operated by BHP was added to the project. Exploration activities included ground magnetic surveys, ground EM, gravity, prospect geological mapping, 12 RC holes for 1949m, and airborne EM over 1 magnetic feature. Work concentrated in four areas – Kiwirrkurra, Pokali Hills, Mantati, and North Dovers. Drilling at Kiwirrkurra encountered IOCG style alteration but no significant mineralisation. No significant results were returned from Mantati and the single drill hole at North Dovers failed in overburden. At Pokali, the best intersection was 36m @ 0.42% Cu and 0.055 ppm Au (including 6m @ 1.68% Cu, 0.29 ppm Au). No further exploration was reported.

In the reporting period to May 1997 BHPB conducted an aeromagnetic survey over a block of three tenements located immediately to the northwest of Pollock Hills. The tenements cover a large gravity anomaly in AGSO regional data, and the target was IOCG mineralisation associated with the Mount Webb Granite and Pollock Hills Formation. In the reporting period to May 1999 activities included ground magnetics, gravity, and ground EM surveys. The gravity anomaly (~6km x 3km, 6 mgal) was confirmed and drill testing was recommended but no further work was reported.

WMC acquired a large holding of 18 tenements, covering most of the outcrop to subcrop of the northern part of the western Arunta Orogen. Access negotiations with Traditional Owners were unsuccessful and the ground was dropped within the first reporting period to February 1998.

BHPB Minerals Pty Ltd and BHP in joint venture with Aurora Gold acquired a block of 3 tenements immediately northwest of the Angus Hills over numerous small (covered) circular magnetic features regarded as prospective for diamonds hosted in kimberlites and lamproites. Difficulties with access negotiations prevented on-ground activity in the first reporting period to July 2002. During the second reporting period to July 2003 the project was deemed not worth pursuing and the ground was subsequently dropped.

Previous uranium interest in the region is limited to a single Exploration Licence granted in 2008 to Regalpoint Exploration Ltd. The tenement was located immediately to the north of the Angas Hills and occurs almost entirely within Toro’s EL E80/4449. The tenement is covered by dune sands apart from a single outcrop mapped as Dean Quartzite. The project aimed to test the uranium prospectivity of the “Devonian Lucas Formation, a poorly known succession of sandstone, siltstone, mudstone and minor limestone and conglomerate”.

Meteoric Resources NL currently operates two groups of tenements in the Lake Mackay region. Some of these ELs are operated by Meteoric in a farm-in agreement with Beadell Resources Limited. Exploration is targeting IOCG deposits. A co-funded drilling report (Reddy, 2010) describes interest in six coincident magnetic-gravity highs. Two of these anomalies occur in the northern (Dwarf Well) tenements, and have been the subject of detailed surface sampling that returned anomalous Cu and Au. The western “Radiator Anomaly” was chosen for infill surface sampling, a close-spaced gravity survey, and drilling. The single diamond drill hole returned a best result of 5 m @ 0.04 % Cu from 190 m in haematite-altered Arunta schist. In the southern tenement block, a partial surrender report describes disappointing results from 60 soil and 85 lag samples. A summary of previous exploration activity can be found in Table 2.

Table 2 Lake Mackay Project History

Company Project

Location Target Report Dates

Exploration Activities Outcomes

WAMEX

Number

CRA Tenements located over SW corner of Webb 250K sheet and adjacent map sheets.

Diamond 1994 Aeromagnetic survey, ground magnetic surveys, indicator mineral sampling, 3 x aircore holes to test magnetic anomalies.

Anomalies attributed to "secondary magnetic detritus".

42339

Aurora, Aurora / BHP JV

Large holding of up to 42 tenements over a large proportion of the western Arunta Orogen; activity confined to Warumpi Complex in a belt between Pollock Hills and the NT border.

IOCG 1996-1999

Airborne rad-mag, ground magnetics, ground EM, Drilling (vacuum, aircore, RC slimline, RC); surface sampling (rock chip, soil), geological mapping

Anomalous Cu-Au from Pokali, Mantati, Northeast Buck Hills,and North Dover localities. Surface mineralisation at Pokali.

49698, 49698 53510, 54975, 57866, 59726

BHP Pollock Hills area IOCG 1997-1999

Aeromagnetic survey, ground magnetics, gravity, ground EM

Large anomaly in AGSO regional data verified, drilling proposed.

52568, 53586, 58733

BHP Aurora / BHPJV Northwest of Pollock Hills Diamond 2002-2003

No on ground activities Deemed not worth progressing.

65302, 65301, 67455, 67456

WMC Large holding over northern part of western Arunta Orogen.

Not declared

1998 No on ground activities Land access could not be negotiated.

54103

Regalpoint Exploration Ltd

Single EL located off SW tip of Lake Mackay.

Uranium 2009 No on ground activities Project abandoned due to lack of funds.

81528

Beadell Resources Ltd (Meteoric Resources NL operator); Meteoric Resources NL

Two project areas -Mt Webb Complex between Angas and Pollock Hills, and north of Lake Mackay. Project remains current

IOCG 2010 Activities described only for surrendered ground and DMP co-funded drilling report from northern project area. Gravity, ground magnetics, surface sampling (soil, lag), 1 x diamond drill hole to 604 m on target T1.

Diamond hole intersected magnetite and minor haematite alteration, best drill hole intersection 5 m @ 0.04 % Cu. Exploration ongoing.

85577, 88009

General Mining Corp

North west of Pollock Hills IOCG 2010 No on ground activities Nil. 86062, 86064

Figure 2 Lake Mackay Project Location Map

Figure 3 Lake Mackay Project Tenement Map

2.2.3 Lake Maitland

The Lake Maitland Uranium Project (‘LMUP’ or ‘the Project’) is located in central Western Australia at latitude 27 10’ 9’’ S, longitude121 05’ 46’’ E, approximately 740km northeast of Perth, the capital city

of Western Australia. The current project area comprises 9 exploration licences, 13 prospecting licences and 5 granted mining leases covering a total area of approximately 707.2km2. Mega Uranium Ltd (‘Mega’)was the majority owner (through its subsidiary Redport Exploration Pty Ltd) and managed the Project for the first 10 months of the reporting period but in November 2014 their interest was sold to Toro Energy Limited (‘Toro’), the holder of the Wiluna uranium project, located 90km to the north-west of the LMUP.

At both the Lake Maitland and Wiluna properties uranium mineralisation is located within a series of clastic (sands, silts and clays), chemical (magnesium and calcium carbonates) and evaporitic (gypsiferrous and saline muds) sedimentary units formed within a hypersaline playa lake and paleochannel setting. Mineralisation occurs exclusively as the secondary mineral carnotite, a hydrated potassium uranyl vanadate (K2(UO2)2(VO4)2.3H2O).

At the start of 2013 LMUP Mining Lease M53/1089 contained an NI43-101 compliant Indicated Resource of 18.9 million tonnes @ 497 ppm U3O8 (20.7Mlbs U3O8) and an Inferred Resource of 1.9 million tonnes @ 374 ppm U3O8 (1.6Mlbs U3O8) at a 200 ppm U3O8 cut-off. During 2013 analysis of 201 diamond core holes completed in 2012 confirmed a positive disequilibrium of ~18% in uranium grade at 300ppm U3O8 cut-off. In November Toro completed a resource update on the LMUP using the additional 2012 core drilling. At a 200ppm U3O8 cut-off their resource work upgraded the Project’s resource to a 2012 JORC compliant Indicated Resource of 19.9 million tonnes @ 555 ppm U3O8 (24.3Mlbs U3O8).

At a 500 ppm cut-off this represents a 27% increase in contained metal, a 17% increase in tonnes and a 9% increase in average grade when compared to Mega’s previously reported LMUP JORC 2004 resource of 6.1 million tonnes @ 882 ppm U3O8 (11.8Mlbs U3O8) and Inferred Resource of 0.3 million tonnes @ 759 ppm U3O8 (0.6Mlbs U3O8) to Toro’s new resource of 7.5 million tonnes @ 956 ppm U3O8 for 15.7 Mlb U3O8.

The Lake Maitland deposit is classified as a “surficial calcrete hosted uranium deposit” with most mineralisation occurring within 10m of surface.

Figure 4 Lake Maitland Uranium Project Location Plan

2.2.1 Nowthanna

The Nowthanna uranium project is located approximately 50km south-southeast of Meekatharra, Western Australia, along the Meekatharra-Sandstone road (see Figure 1). Together, the tenements E51/1075 and E51/1072 cover some 138km2

.

The area comprises predominantly sheet wash, covering granite, and a large calcretised drainage system that drains into Quinns Lake in the northwest.

Most of the area is open country or lightly vegetated with mulga scrub. Old tracks along fence lines allow easy vehicular access, expect during wet weather. The climate is semi-arid, with sporadic rainfall occurring mainly during thunderstorms or cyclonic activity.

Figure 5 Nowthanna Deposit Location Plan

2.2.1 Tenements

The following table (Table 2) lists all of the Tenements held by Toro which are to be included in this RMP. Over the life of this plan it is expected that exploration tenements will be dropped and picked up, however Table 2 is a snap shot of the tenements held at the time of writing this plan.

All tenements picked up after the approval and implementation of that plan shall be subject to the requirements of this plan.