CASPOSO, ARGENTINA

(Troy 30% through Austral Gold Limited (ASX: AGD) (Manager) 70%)

Introduction

In March 2016, the Company reached agreement for the sale of its interest in the Casposo operation in Argentina with Austral Gold Limited (Austral).

The Company sold a 70% interest in Casposo and Austral has an option to acquire the remaining 30% over a three year period commencing in December 2018 for a total consideration of US$7 million. Should the silver price be in excess of US$16/oz. at the time each option is exercised, the exercise price will be increased depending upon the actual silver price at the time.

The Company's is free carried in relation to an initial US$10 million capital investment plan for Casposo.