Tanami Gold NL : Quarterly Activities Review and App 5B

FOR THE PERIOD ENDING 30 SEPTEMBER 2017

CORPORATE

Cash and Cash Equivalents

As at 30 September 2017, the Company had cash of $3,968,086.

Proposed sale of Western Tanami Project

On 3 October 2017, the Company announced it had entered into a binding Sale and Purchase Agreement ("SPA") with Northern Star (Tanami Gold) Pty Ltd ("NSTG"), a wholly owned subsidiary of Northern Star Resources Limited, in relation to the proposed divestment of the Company's 100% interest in the Western Tanami Project for A$4.0 million in cash.

Details of the ASX release can be found at www.asx.com.au (Code: TAM).

Joint Venture with Northern Star Resources Limited

As previously announced, the Company and Northern Star Resources Limited ("NST") have formed an unincorporated joint venture ("JV") to advance the Company's Central Tanami Project ("CTP").

In accordance with the JV, management of the exploration activities at the Company's CTP have been handed over to NST who will sole fund all JV expenditure including all CTP exploration and evaluation costs, assessment and development costs, mining of the JV tenements and refurbishing the CTP process plant and associated infrastructure, during the Sole Funding Period.

The Sole Funding Period will expire on the date on which the process plant at the CTP has been refurbished to operating condition and has operated for a continuous 30 day period or has produced 5,000 ounces of gold ore (whichever occurs first). On the expiry of the Sole Funding Period, NST will have earned a further 35% undivided interest in the CTP (taking NST's total JV Interest to 60%).

Northern Star Resources Limited Shares

As at 30 June 2017, the Company has 750,000 NST shares remaining.

EXPLORATION

Central Tanami Project (75% Tanami)

During the quarter ended 30 September 2017, following activities were undertaken:

• Structural synthesis of the CTP based on open pit and regional mapping data completed;

• Geological mapping and sampling continued over the Jim's, Galifrey and Kuwait areas of the southern CTP, with field reconnaissance undertaken at the Supernova and Kookaburra East prospects;

• Regional aircore drilling commenced at the Cave Hill project area;

• Anomalous rock chip sampling results (up to 158ppb Au) returned from a >300m long zone of hydrothermal breccia identified southeast of Jim's;

• Additional mapping and sampling carried out; and

• Unconstrained inversion of airborne magnetic data over the southern CTP region has confirmed correlation of Jim's and Tanami Mine Corridor stratigraphy.

FOR THE PERIOD ENDING 30 JUNE 2017

Western Tanami Project (100% Tanami)

Regional geological and geochemical mapping has continued throughout the quarter, principally in the areas between mineralisation in the Stubbins formation along the Fremlin trend and mineralisation in the Killi Killi formation in proximity to the Tanami Fault (Road Runner, Rabid South, Rabies, Nugget Patch). This is an attempt to gain a better understanding of the relationship and regional structural controls on the location of mineralisation and to identify the nature of the contact between the Stubbins and Killi Killi formations. A broad, transported, alluvial filled topographic low masks the contact and both airmagnetic data and surface geochemical responses are subdued. During the quarter, 629 samples have been analysed by portable XRF (pXRF) along 3 traverses spaning the known mineralised trend and alluvial low. The arsenic results clearly identify the granite contact in the west and approximately coincide with dolerites interpreted from airmagnetic data. The programme is on‐going.

Figure 1 Geochemical mapping over simplified regional geology FOR THE PERIOD ENDING 30 SEPTEMBER 2017 JORC Code, 2012 Edition - July 2016 Aircore Drilling Section 1: Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria	JORC Code explanation	Commentary
Sampling techniques	Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information.	Reverse Circulation (RC) drilling was undertaken in November 2016 to further test 2 surface geochemical anomalies previously drilled by aircore in July 2016. 33 holes were drilled to an average depth of 100 metres, for 3252 metres. Holes varied in depth from 78 metres to a maximum of 150 metres. • One metre intervals were collected directly into plastic bags through a cyclone attached to the drill rig. Samples for laboratory analysis were collected as 3m composites directly into calico bags through a cone splitter attached to the cyclone and weighed approximately 3kg. Samples were dried, pulverised to -75 µm and split to produce a nominal 200-gram sub sample. Gold only was analysed using a 25g lead collection fire assay. Multi-element data was collected at the rig during drilling using a portable XRF instrument for each composite sample. Magnetic susceptibility was recorded for each 1m interval.
Drilling techniques	Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc).	A custom built 900cfm X 350psi AC rig operated by Geo Drilling Pty Ltd was used to drill and collect the samples. The face sampling AC bit has a 3" diameter with sample return through an inner tube reducing potential for sample contamination.
Drill sample recovery	Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material.	Sample recovery was estimated by observing the relative size of recovery for each interval collected within plastic bags. Sample quality was recorded during logging, i.e. whether the sample was wet or dry.
Logging	Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged.	All geological and sampling data was captured digitally using LogChief software and synchronised directly into an SQL DataShed database. Geological information was logged on 1 metre intervals using Tanami Gold coding system and included rock type, regolith, weathering, mineralisation and veining. Magnetic susceptibility and portable XRF readings 100% of each hole was logged and sampled. Representative chips of each 1m interval were collected in chips trays for future reference. were measured on each 3metre sample composite and also synchronised directly into the DataShed SQL database.
Sub- sampling	If core, whether cut or sawn and whether quarter, half or all core taken.	Drill cuttings for each 1 metre drilled interval were collected directly into plastic bags from a cyclone

FOR THE PERIOD ENDING 30 JUNE 2017

Criteria	JORC Code explanation	Commentary
techniques and sample preparation	If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled.	attached to the rig. Three-metre composite samples of approximately 3kg were collected using a cone splitter attached to the sample into pre-numbered calico bags. Over 95% of the samples were dry. A duplicate composite sample was taken at a ratio of in 50. Samples were sent to Intertek Laboratory in Perth for sample preparation and analysis. Samples were dried and pulverized to 85% passing 75µm and a sub- sample of approx. 200g retained. 25g was used for analysis. For exploration drilling the sample size is considered appropriate to give an indication of mineralisation. Composite samples that returned results greater than 0.3ppm will be re-assayed at 1metre intervals.
Quality of assay data and laboratory tests	The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc. the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established.	Laboratory procedure was by a 25g lead collection fire assay in new pots and analysed by ICPMS. Fire assay is considered a total digest and was selected for the larger subsample used to mitigate against coarse gold bias. No geophysical or handheld XRF results are reported. Certified Reference material (standards) were inserted at a ratio of 1 in 50 samples Blank gravel was inserted at a ratio of 1 in 50 samples Laboratory internal QAQC involves the use of certified reference material and blanks. All QAQC samples (field duplicates, Standards, Blanks and internal Lab QAQC) returned acceptable levels of accuracy and precision. N re-assaying due to failed QAQC protocols was required.
Verification of sampling and assaying	The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data.	Significant intercepts reported are low grade exploration only and have not been verified by independent or alternative company personnel No twinned holes were completed; however some RC holes were located within 10m of previously drilled AC holes. Primary geological data was digitally collected at the source using LogChief software and directly synchronised into an SQL database. The software requires strict adherence to geological codes and data integrity with no subsequent manipulation required. Date and identity of geologist are recorded automatically with each interval logged. Assay data was imported into the SQL database through DataShed software. No manual manipulation of the data was required. Assay QAQC data was monitored using QAQCReporter software to check for compliance with QAQC protocols. No manipulation was required.
Location of data points	Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control.	Hole collars were located using a Garmin handheld GPS with accuracy of ±5m All holes were drilled at an inclination of -60° measured with a clinometer at the collar. The azimuth of all holes was aligned using a handheld Sunto compass All coordinates are in MGA94, Zone 52. Handheld GPS and sighting instruments are considered adequate for exploration RC exploration holes not being used for resource estimation.
Data spacing and	Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade	All holes were drilled at a declination of 60 degrees, and were either drilled either below previously identified anomalous gold intervals, or drilled at 40m spacing to