Haoma Mining NL : 2016 AGM Chairman's Address to Shareholders

Haoma Mining NL

A.B.N 12 008 676 177

Registered Office & Head Office:

Level 1, 401 Collins Street, Melbourne, Vic., 3000, GPO Box 2282U, Melbourne, Vic., 3001.

Telephone [phone], Facsimile [phone] Email: [e-mail] Website: www.haoma.com.au

CHAIRMAN'S ADDRESS TO 2016 HAOMA MINING NL ANNUAL GENERAL MEETING By Gary Morgan, Tuesday February 14, 2017

Figure 1: Location map of Haoma Mining and other Pilbara mining locations

Welcome to all Haoma Mining NL shareholders.

Firstly I assume all shareholders have 'read' Haoma's 2016 Annual Report and Quarterly Reports including Haoma's December 2016 Quarterly Report released to the ASX on January 31, 2017.

On many occasions over the last few years Haoma shareholders have been advised the grade of gold measured in Bamboo Creek Tailings was about 100 g/t, and there are about a million tonnes of Bamboo Creek Tailings available for processing. Haoma's problem has been developing a process to commercially recover this gold.

1. Recent Activities at Bamboo Creek

   Over the last year Haoma has focused on recovering gold from a 'concentrate' produced from processing Bamboo Creek Tailings. The 'concentrate' was about 1% of Bamboo Creek Tailings.

2. In Hao ma 's Mar ch 2016 Qu arterly Repor t (released to shareholders on April 30, 2016) shareholders were advised:

   "During April 2016 tests in the Bamboo Creek Gold Smelting Room used the Elazac Process to process a 361g sample of 'Gold Concentrate' - approximately 0.4% of the Bamboo Creek Tailings plant feed. In total 2.714g of gold bullion (90% gold) was recovered which represents a 'back calculated' Bamboo Creek Tailings 'Head grade' of 27g/t gold. The test is being repeated."

   Figure 2: 2.714g gold button recovered from 361g sample of 'Gold Concentrate"

3. In Haoma's Septemb er 30, 2016 Qu arterly Rep ort (released to shareholders on December 21, 2016) shareholders were advised:

   "Over the last 6 months test work had focused on developing a commercial process which can be used to:

4. Process ore through the Bamboo Creek Plant,

5. Produce a concentrate fraction (1% of Bamboo Creek Tailings), and

6. Recover gold, silver and PGM using the Bamboo Creek Plant. Results show clearly that commercial quantities of gold, silver and PGM measured by XRF analysis can be recovered into a concentrate fraction. Results show clearly that commercial quantities of gold, silver and PGM measured by XRF analysis can be recovered into a concentrate fraction.

   The 'back calculated' Bamboo Creek Tailings gold 'Head grade' measured by XRF was greater than 25 g/t - an important result as it is similar to earlier test results based on physical gold recovered.

   Recent test work recovered significant quantities of physical silver. The 'back calculated' Bamboo Creek Tailings silver 'Head grade' measured more than 100 g/t or greater than 1% silver in the concentrate fraction. Significant quantities of Platinum Group Metals (PGM) were measured by XRF in concentrates collected. The 'back calculated' total Bamboo Creek Tailings PGM 'Head grade' measured more than 100 g/t or greater than 1% PGM in the concentrate fraction."

7. In Haoma Min in g's 2016 Annual Report (released to shareholders on January 16) shareholders were advised:

   "Haoma's recent test work at Bamboo Creek had concentrated on recovering physical gold:

8. In solutions 'collected by DIBK' and read on a standard AAS (traditional assay method), and

9. In solids - gold percentage measured by XRF (latest gold measured by SEM)

   Haoma's test work using the Elazac Process was conducted on 3kg samples of Bamboo Creek Tailings The following gold grades (total of gold measured in the solution fractions and solid fractions) in samples Bamboo Creek Tailings, not concentrate were as follows:

   Assay 1) 178.11g/t gold, and Assay 2) 123.99g/t gold

   The above Bamboo Creek Tailings gold grades were not final as there were additional sample fractions (both solution and solid) which are yet to be measured."

10. Since mid-January Haoma has made a lot of progress. In Haoma 's Dec e mber 31, 2016 Quarterly Report (released to shareholders on January 31) shareholders were advised:

    "Test work on large samples of Bamboo Creek tailings had physically (gravimetrically) measured gold grades between 100g/t and 400g/t in samples of Bamboo Creek Tailings. Specifically 'gold in metal' was recovered gravimetrically with the % gold content in the 'metal' recovered read by XRF and SEM.

    Late January test work using the Elazac Process was completed on a 3kg sample of Bamboo Creek Tailings Ore. The final Bamboo Creek Tailings gold 'head grades' for 2 samples from the 3kg sample of Bamboo Creek Tailings (not concentrate) were:

    Assay 1) 359.40g/t gold, and Assay 2) 383.93g/t gold

    Gold bearing concentrate recovered in the solid fraction was measured physically (gravimetrically) with the percentage of gold read by XRF (at Bamboo Creek, or at an independent laboratory,) or at the University of Melbourne by SEM.

    Figure 3: Bamboo Creek Tailings - gold from the solid fraction of concentrate sample

    Gold in the acid solution was recovered into DIBK and read on a standard AAS."

11. Haoma's future as a profitable gold producer is extremely promising.

12. The Elazac Process used to achieve the above results can be implemented in the existing Bamboo Creek Plant to produce gold using conventional processing methods.

    A 'full scale' gold producing 'Pilot Plant' capable of processing up to 10 tonnes of Bamboo Creek Tailings a day is expected to be operating at Bamboo Creek within the next 4-6 weeks.

    Once operating efficiently the Bamboo Creek Pilot Plant will be upgraded to initially process up to a 100 tonnes of Bamboo Creek Tailings a day before the Bamboo Creek Plant capacity in increased to process up to 250 tonnes per day.

    Based on recent test work the Directors believe the 'cash flow' generated from the Pilot Plant processing 10 tonnes of Bamboo Creek Tailings a day will be sufficient to cover all costs. The expected the cost per gram (ounce) of gold produced should be significantly lower than the value of the gold sold.

    Figure 4: Bamboo Creek Processing Plant

13. Haoma's Mt Webber (M45/1197) Royalty Payment Entitlement (See Haoma's ASX Release March 26, 2012)

14. As most Haoma shareholders would know Haoma has a royalty entitlement in respect of the Mt Webber iron ore reserve estimate contained in tenements E45/2186 and M45/1197.

    The April 2012 Tenement Sale Agreement under which Haoma sold its Mt Webber iron ore rights to Atlas Iron Limited includes a 'Reserve Uplift Payment' entitlement.

    The payment entitlement is 'triggered' when the iron ore reserve estimate on the tenements which were subject to the Sale Agreement (E45/2186 and M45/1197) result in Atlas Iron announcing to the ASX of a JORC compliant iron ore reserve in excess of 24 million tonnes inclusive of any iron ore tonnes previously mined.

    The Sale Agreement uplift payment per 'Excess Reserve' is $1.38 per tonne. That amount is indexed by CPI from March 23, 2012. (Today the uplift payment is about $1.50 per tonne).