Paroo Station

Introduction

Paroo Station  is located in Western Australia and is the world's largest lead carbonate mine. On January 16, 2015, Paroo Station was placed on care and maintenance amid difficult market conditions.

Paroo Station is 100% owned by Rosslyn Hill, a wholly-owned indirect subsidiary of LEADFX.

On December 17, 2012, Rosslyn Hill Mining entered into a management services agreement ("EMG Management Services Agreement") with Enirgi Metal Group Pty Ltd. ("EMG"), a wholly-owned subsidiary of Enirgi Group Corporation ("Enirgi Group").

Under the EMG Management Services Agreement, EMG will take the leading role in managing the restart of operations at Paroo Station, including the design of the organizational structure, as well as, responsibility for the day to day management of the operation of Paroo Station following restart. Under the EMG Management Services Agreement,LEADFX expects that EMG will deliver increased technical and operating experience, executive management and economies of scale from being part of a larger group.


Aerial view of the Magellan, Cano and Pinzon
deposits on Magellan Hill (property boundaries shown in green)

Paroo Station is located in Western Australia, approximately 30 kilometers ("km") west of the town of Wiluna (pop. 200) and 750 km northeast of Perth. An all-weather paved airstrip located 4 km south of Wiluna facilitates access for personnel via charter and other commercial flights from Perth.The deposits are fairly flat-lying, occurring on subtle topographic highs. Ore at Paroo Station is extracted via drilling and blasting from a series of open pits on Magellan Hill. Excavators are then used to dig and load ore and waste into 85 tonne haulage trucks. Ore is mined concurrently from a number of faces to provide a homogeneous blend to the concentrator and ore is stockpiled and further blended on the Run of Mine ("ROM") pad. Grade control is enhanced by testing every blasthole using a hand-held x-ray fluorescence ("XRF") analyzer for lead content.


Paroo Station, Western Australia

SRK Consulting (Australasia) Pty Ltd (“SRK”) has prepared an independent Technical Report in accordance with National Instrument 43-101 (“NI 43-101”) on Paroo Station titled “Technical Report on the Paroo Station Lead Carbonate Mine, Wiluna, Western Australia”, dated March 10, 2015 with an Effective Date of December 31, 2014 (the “2015 Technical Report”). SRK is a global mining consulting firm independent of LEADFX Inc. The 2015 Technical Report contains information on Mineral Resources and Mineral Reserves, life of mine, permitting and a high-level economic analysis. For the most recent Mineral Resources and Mineral Reserves estimates, please see the most recent Annual Information Form. The 2015 Technical Report was filed by the Company in its entirety on SEDAR (www.sedar.com) on March 10, 2015.