Lake Resources N.L.
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ANNUAL REPORT 2014
Corporate Strategy
Lake Resources’ mission has always been to develop a profitable minerals discovery business,
concentrating on the effective use of the geosciences and leveraging these skills to make
strategic investments. To this end, our focus is on:
! Exploration in the most prospective areas for world-class deposits that will attract major
mining companies as joint venture partners at an appropriate stage.
! Use of the most cost-effective practices and technologies including multispectral satellite
images, reprocessing and reinterpretation of existing databases and application of
appropriate deposit models.
! Formation of alliances with major mining companies for exploration and development of
the Company’s discoveries.
! Development of a revenue stream comprising net smelter royalties and net profits interests
when mining companies develop deposits discovered by us.
! Seed capital investments in other emerging resources sector companies.
The board considers that the corporate culture required for successful mineral exploration is
significantly different from the culture of the downstream businesses of mining and smelting.
Accordingly, Lake Resources does not place a high priority on becoming a miner, preferring,
instead, to retain royalty and net profits interests in its discoveries and to remain focussed on its
core business of mineral exploration.
Company Directory
Lake Resources N.L.
A.B.N. 49 079 471 980
Directors
Ross Johnston
Chairman
Peter J Gilchrist
Managing Director
James G Clavarino
Exploration Director
Registered Office
3-7 Maud Street
Newstead QLD 4006
GPO Box 1239
Brisbane 4001 Australia
Contacts
Telephone: +61 7 3257 1111
+61 7 3252 0255
Facsimile: +61 7 3257 2122
Email: lakeresources@lakeresources.com.au
Website: www.lakeresources.com.au
Auditors
Hayes Knight Audit (Qld) Pty Ltd
Level 19, 127 Creek Street
Brisbane 4000, Australia
Bankers
Australia and New Zealand Banking Group Limited
102 Brisbane Street
Ipswich 4305, Australia
Share Registry
Link Market Services Limited
Level 15, 324 Queen Street
Brisbane 4000, Australia
ASX Code
LKE
Chairman’s Report
Dear Shareholder
D
During the year under review, the company
concluded a joint venture for its Chagai Project
in Balochistan, Pakistan. Under the terms of an
Exclusivity Agreement and associated
Shareholders Agreement and Share
Subscription Agreement with Colt Resources
Middle East (CRME) and Aamir Resources
Consultants, CRME can earn a majority interest
in the project through exploration expenditure of
US$1.9 million within 3 years and a further
US$3.1 million within a further period of 3
years.
Pursuant to these agreements, Lake Resources
surrendered its three exploration licences,
effective 6th May 2015, and new exploration
licences covering the same areas as the
surrendered licences were granted to the
Pakistan-incorporated operating entity, Chagai
Resources (Pvt.) Limited for a period of 3 years,
effective 12th June 2015. Lake Resources’
interest in Chagai Resources is held though a
wholly owned Pakistan-incorporated
subsidiary, Lake Mining Pakistan (Pvt.) Limited.
The Chagai Project is situated in the Tethyan
magmatic arc, which extends from Turkey,
through Iran into Pakistan and hosts a number of
world-class copper gold deposits including the
Saindak copper-gold mine and the giant Reko
Diq copper-gold deposits.
Lake Resources has been exploring the region
since 1998, focussing on three areas.
! Koh-i-Sultan, where exploration targets
are world-class copper and gold deposits
associated with an extensive system of
intensely altered breccia and volcanics on
the margin of an extinct volcanic caldera.
Lake Resources undertook drilling
programs in 2005, 2007-8 and 2012.
Geologically significant copper, gold and
trace elements were intersected in a
number of holes. These results support
the potential for economic porphyry
copper-gold deposits.
! Dasht-i-Gauran, which is situated to the
west of copper mineralisation reported by
TCC from drilling at its Sor Baroot Prospect
at the Reko Diq Project, and covers a
number of possible alteration zones
identified from interpretation of satellite
images.
! Amalaf, which adjoins the northern
boundary of the Saindak copper-gold
mine. The exploration target is large
tonnage - low grade copper amenable to
low-cost open-pit mining and trucking to
the adjacent Saindak mine.
The Reko Diq copper-gold project is situated
approximately 70 km west of Lake’s Koh-i-
Sultan project (see Figure 1). The mineral
resource at Reko Diq is estimated at 5.9 billion
tonnes with an average copper grade of 0.41%
and average gold grade of 0.22g/tonne at a cut-
off grade of 0.2% copper equivalent
(Antofagasta PLC, Annual Report 2009).
In 2010 the Reko Diq tenement holder, Tethyan
Copper Company Limited (TCC), owned 50%
by Barrick Gold Corporation and 50% by
Antofagasta PLC, submitted feasibility,
environmental and social impact studies for the
project to the Government of Balochistan. In
November 2011, applications by TCC for
mining leases over the project were rejected by
the Government of Balochistan.
TCC
subsequently pursued international arbitrations
in order to protect its legal rights. In the
Antofagasta Annual Report and Financial
Statements 2013 (p.159), the company stated
that “Tethyan is seeking monetary damages
only and is no longer seeking the grant of a
mining lease at Reko Diq.”
On the world scene, volatility of world
economies and commodity demand and prices
continue to dominate the outlook. While our
efforts during the year focussed on securing a
partner to advance exploration of its licences in
Pakistan, we continued to investigate other
investment and exploration opportunities. The
Company will need to raise further working
capital to continue with any planned activities.
Lake Resources N.L.
I wish to thank my fellow directors,
management and contractors for their
contribution to the operation of the company.
Thanks also to you, our shareholders, for your
ongoing support. We look forward to your
continuing association with Lake Resources.
Ross Johnston
Chairman
1
ANNUAL REPORT 2015
Exploration Projects
Mineral exploration is an inherently risky undertaking. Typically, for every
one thousand mineral occurrences investigated, only one hundred warrant
drilling and of these, only one ultimately proves to be economically
mineable.
Factors that influence investment decisions for scarce
exploration funds include geological prospectivity,
availability of geological, geophysical and exploration data,
access to land, sovereign risk, government policies,
infrastructure and competitive advantages.
From its incorporation in 1997, Lake concentrated its early efforts in
Pakistan and Sweden. In 2004, the Company wound down exploration in
Sweden and shifted its focus to a promising new exploration play in Argentina, whilst
continuing exploration in Pakistan. In late 2005, work in Argentina was terminated to
concentrate on the company’s more advanced copper and gold targets in Pakistan.
PAKISTAN
AUSTRALIA
ARGENTINA
Total two-way trade in 2013-14 was A$609
million comprising food products, cotton and
fertilisers from Australia to Pakistan and textiles
and rice from Pakistan to Australia. There is a
growing Pakistani community in Australia of
approximately 41 500 people of Pakistani
ancestry (July 2013) and, in 2014, there were
close to 14 700 Pakistani students studying in
Australia.
Pakistan
With a population of about 199 million (July
2014 estimate), the Islamic Republic of
Pakistan is bordered by Iran, Afghanistan,
China and India, and has a land area of 771 000
square kilometres, about one tenth of the area
of Australia.
The Republic is made up of four provinces -
Sindh (capital, Karachi), Punjab (Lahore),
Khyber Pakhtunkhwa (formerly North-West
Frontier (Peshawar)) and Baluchistan (Quetta)
and seven areas (‘agencies’) on the border with
Afghanistan known as the federally-
administered tribal areas (FATA). Pakistan also
administers part of the former princely state of
Jammu and Kashmir – Gilgit-Baltistan also
known as Northern Areas. Islamabad is a
special ‘Federal Capital Territory’.
Pakistan has a federal system of government
with a bicameral legislature comprising the
National Assembly, and an upper house, the
Senate. All four provinces have their own
elected provincial assemblies and each
provincial government is headed by a chief
minister who presides over the provincial
cabinet. Provincial governors are appointed by
the president. Local or district governments are
headed by elected nazims.
2
Pakistan held National Assembly and provincial
parliamentary elections in May 2013.
Pakistan’s Government is led by Prime Minister
Mian Muhammad Nawaz Sharif (since 6th June
2013). The next National Assembly election is
due in 2018. An election for 46 of the 100
seats in the Senate was held in March 2015
with the next election scheduled for 2018. In
September 2013, Mr Mamnoon Hussein was
inaugurated as President for a 5-year term,
replacing Mr Asif Ali Zardari.
Australia established diplomatic relations with
Pakistan after partition and has had a resident
mission in the country since 1948. Bilateral
relations between Australia and Pakistan
include agreements on promotion and
protection of investments, defence, agriculture
and development assistance.
Following a major earthquake in Pakistan in
October 2005, Australia contributed more than
$80 million in emergency assistance. In 2010
Australia's program grew in response to the
devastating floods which swept through
Pakistan in July of that year, providing $75
million in humanitarian and early recovery
assistance. In 2013—14 Australian support
provided life-saving assistance in conflict and
crisis situations to more than 395 000.
Australia’s total official development
assistance to Pakistan for 2014-2015 is
estimated at A$65 million.
CHAGAI PROJECT
Lake Resources is exploring for epithermal gold
and porphyry copper-gold deposits in the
Chagai region in western Balochistan.
Regional Setting
The project area is situated in the Tethyan
Magmatic Arc which extends from Turkey
through Iran into Pakistan. Important mineral
deposits in the Arc include the Reko Diq
porphyry copper-gold deposit and the Saindak
copper-gold mine.
Access is by sealed highway from the provincial
capital of Quetta to the border with Iran. A wide-
gauge railway parallels the highway.
The first systematic geological mapping of the
region, at a scale of 1 inch to 4 miles (1:253
440), was undertaken in 1952-56 under a
Canada-Pakistan Colombo Plan project. In
1956-70, mapping and appraisal of geological
resources in Pakistan was undertaken under a
cooperative program between geological
Survey of Pakistan (GSP) and the U.S.
Geological Survey which resulted
the
discovery of the copper-mineralised quartz-
diorite stocks at Saindak.
in
Further exploration at Saindak during the
1970’s resulted in the discovery of porphyry
copper, gold and molybdenum in three
deposits totalling 440 million tonnes @ 0.41%
copper and 0.5g/t gold.
During 1991-93, under a turnkey contract,
Metallurgical Construction Corporation of
China (MCC) constructed a metallurgical plant
and open pit mine based on the South Orebody
(78 Mt averaging 0.43% Cu and 0.5 g/t Au).
The project was handed over to Saindak Metals
Limited in January 1996 after a successful trial
operation which produced 1 550 tonnes of
blister copper. Due to a shortage of working
capital, the mine was placed on a ‘care and
maintenance’ basis until 2003 when it was re-
commissioned under the management of MCC,
who continue to operate mining and smelting
operations at Saindak.
Lake Resources N.L.
A F G H A N I S T A N
Amalaf
AFGHANISTAN
IRAN
Chagai
Project
Quetta
N A T S I K A P
I N D I A
Dasht-i-Gauran
Karachi
TCC Reko Diq
Project
Koh-i-Sultan
Zahidan
Saindak
Copper-Gold
Mine
I R A N
Taftan
Rail
a
n
d
Chagai Project
Exploration Licences
s e a l e d
Hwy
Nok Kundi
P A K I S T A N
In the early 1990s, BHP (subsequently BHP Billiton (BHPB)) commenced exploration of the Chagai
region, discovering a cluster of porphyry copper-gold deposits at Reko Diq. Tethyan Copper
Company Ltd (TCC) continued exploration under an agreement with BHPB until early 2006 when
TCC was taken over by Antofagasta PLC. Following the takeover, the TCC mineral interests have
been managed and operated by a 50:50 joint venture between Antofagasta and Barrick Gold
Corporation. Government of Balochistan has a 25% interest in the project.
According to Antofagasta “The mineral resource at Reko Diq is estimated at 5.9 billion tonnes with an
average copper grade of 0.41% and average gold grade of 0.22g/tonne at a cut-off grade of 0.2%
copper equivalent…” (Antofagasta website, antofagasta.co.uk/ interior/operations/f_explora.html)
Following the submission of feasibility, environmental and social impact studies to Government of
Balochistan in 2010, applications for mining leases were submitted by TCC in early 2011. In
November 2011, the Government of Balochistan rejected the applications. Tethyan is pursued
international arbitrations in order to protect its legal rights. In the Antofagasta Annual Report and
Financial Statements 2013 (p.159), the company stated that “Tethyan is seeking monetary damages
only and is no longer seeking the grant of a mining lease at Reko Diq.”
3
geological reconnaissance, geochemical
sampling (stream sediment, soil and rock) and
ground magnetic surveys.
In 2004, revised geological interpretations
based on stereoscopic ASTER satellite images
and computer-processed spectral data at
1:25,000 scale were completed. The ASTER
spectral data provided enhanced discrimination
between different alteration types that could be
related to mineralisation.
In 2005, Lake undertook a 6-hole reverse
circulation percussion drilling program — two
holes on each of the Company’s three licence
areas — with encouraging results.
ANNUAL REPORT 2015
Tenements
Lake Resources commenced regional
exploration in the Chagai region following the
granting of a 10 000 sq km Reconnaissance
Licence (RL) in early 1998.
In March 2000, the RL was relinquished and
four Exploration Licences (Els), covering 920
sq km, were granted to Lake. These ELs expired
in March 2009 and were replaced with three
new ELs that were granted for a period of three
years commencing on 10th September 2009.
In 2012, the ELs were renewed, over reduced
areas (approx. 50%) for a further period of three
years to September 2015.
During 2014-15, the company entered into an
Exclusivity Agreement and associated
Shareholders Agreement and Share
Subscription Agreement with Colt Resources
Middle East (CRME) and Aamir Resources
Consultants whereby CRME can earn a majority
interest in Lake’s Chagai Project in Balochistan.
Pursuant to these agreements, Lake Resources
surrendered its three exploration licences,
effective 6th May 2015, and new exploration
licences covering the same areas as the
surrendered licences were granted to the
Pakistan-incorporated operating entity, Chagai
Resources (Pvt.) Limited for a period of 3 years,
effective 12th June 2015. Lake Resources’
interest in Chagai Resources is held though a
wholly owned Pakistan-incorporated
subsidiary, Lake Mining Pakistan (Pvt.) Limited.
Details are set out below.
The Amalaf area adjoins the northern boundary
of the Saindak copper-gold mine.
The
exploration target is large tonnage - low grade
copper amenable to low-cost open-pit mining
and trucking to the adjacent Saindak mine
operated by Chinese company Metallurgical
Construction Corporation (MCC).
The Dasht-i-Gauran area is situated to the
west of copper mineralisation reported by TCC
from drilling at its Sor Baroot Prospect at the
Reko Diq Project, and covers a number of
possible alteration zones identified from
interpretation of satellite images.
At Koh-i-Sultan, exploration targets are world-
class copper and gold deposits associated with
an extensive system of intensely altered breccia
and volcanics on the margin of an extinct
volcanic caldera. Lake Resources undertook
drilling programs in 2005, 2007-8 and 2012.
Geologically significant copper, gold and trace
elements were intersected in a number of holes
— these results support the potential for
economic porphyry copper-gold deposits.
Previous Work
Initial exploration of the RL in 1998-99 by Lake
Resources comprised geological interpretation
of multispectral Landsat TM images resulting in
1:100,000 scale detailed geological maps and,
reprocessing and interpretation of airborne
magnetic survey data. Follow-up geological
reconnaissance and geochemical surveys
identified numerous areas for more detailed
investigation and exploration licences were
applied for.
Work on the exploration licences commenced
in 2000 with detailed geological interpretation
of merged Landsat ETM and SPOT satellite
images at 1:25,000 scale that resulted in
detailed geological maps and identified
alteration zones that could be associated with
Subsequent
copper-gold mineralisation.
ground investigation of these targets included
Chagai Resources Balochistan Tenements
Area
(sq km)
EL Number
Tenement
Lake
Interest
Date of
Grant
Date of
Expiry
Amalaf
(143)/2801-02
46.7
(see Exploration Section)
12/06/2015
11/06/2018
Dasht-i-Gauran
(144)/2803-4
29.1
(see Exploration Section)
12/06/2015
11/06/2018
Koh-i-Sultan
(145)/2805-6
85.1
(see Exploration Section)
12/06/2015
11/06/2018
A condition of the new licences is that the Balochistan Government should have up to a 25% interest in the
licences – the government previously advised that preparation of a draft agreement was under way.
4
Lake Resources N.L.
At Amalaf one of two holes drilled by Lake intersected low-grade copper-molybdenum over the
length of the hole (drillhole LRJJ-02, 12 -120 m, 108 m @ 0.17%Cu & 94 ppm Mo).
At Koh-i-Sultan, drillhole LRM-01, the first hole ever drilled to test this system, intersected copper
and gold mineralisation on the western margin of the system:
! 3
1
3 -
1
9 m @ 0.29 g/t Au & 1.63% Cu;
12 m,
1
! 12
12 -
1
6 m @ 1.14 g/t Au & 0.25% Cu;
1
18 m,
! 18
18 -
69 m @ 0.55 g/t Au & 0.03% Cu (includes 36-60 m, 24m @ 1.05 g/t Au);
87 m,
! 129
129 -
11 m @ 0.60 g/t Au & 0.02% Cu.
140 m,
The hole terminated at a depth of 140 m in continuing gold mineralisation.
i
In 2006, rock geochemical grid sampling (309 samples) at Koh-i-Sultan identified anomalous gold,
tellurium, bismuth and arsenic in a cohesive pattern over an area of about five sq km covering the
main Miri alteration system and associated zones to the west and south of the Nawah Caldera.
In early 2007, high resolution (2.5 m) stereoscopic satellite imagery from the Advanced Land
Observation Satellite (ALOS) was utilised to produce a new photogeological interpretation and a
digital elevation model (DEM) and 10 m topographic contour map.
In 2008, Lake undertook a 5-hole, 2,284 m
diamond drilling (coring) program to test a zone
of breccia and alteration centred on an
interpreted north-south-trending fault zone,
near the western rim of Nawah Caldera at Koh-i-
Sultan (drillholes LRMDDH 001 – 005).
The diamond drilling program resulted in two
significant discoveries:
! porphyry-type copper-gold mineralisation
in drillhole LRMDDH-002 (392 – 520 m,
128 m @ 0.14% Cu and 0.19 ppm Au) and
! a very large, variably-altered and
mineralised breccia complex, intersected
in all five drillholes, over a width of more
than 700 m and a north-south extent of
more than 400 m. Geologically significant
gold values were intersected in the breccia
in four of the five drillholes.
In early 2012, a 17-hole reverse circulation
(RC) percussion drilling program totalling
2,070 m was undertaken within an area
approximately 1,000 m east-west by 1,500 m
north-south, along Miri Nala, southwest of
Nawah Caldera. Drillhole collar location and
hole traces are shown adjacent.
479500 E
480000 E
480500 E
481000 E
3222500 N
3222000 N
LRMDDH-005
LRMDDH-004
LRMDDH-003
LRMRC-017
LRMRC-016
LRMRC-015
LRMRC-013
LRMRC-014
LRMDDH-002
LRMDDH-001
LRMRC-011
LRMRC-012
3221500 N
LRMRC-009
LRMRC-018
LRMRC-010
LRMRC-008
LRM-01
LRMRC-019
LRMRC-007
3221000 N
LRMRC-005
LRMRC-006
LRMRC-004
LRMRC-003
LRM-02
LEGEND
Drill hole collar
and surface projection
LRM-01- 02
LRMDDH-001- 05
LRMRC-003 - 019
2005
2008
2012
0
500m
Map Grid UTM/WGS84/Zone 41N
Koh-i-Sultan
DRILL HOLES and ACCESS TRACKS
5
ANNUAL REPORT 2015
6
A number of the drillholes were terminated before reaching planned depth when they encountered
potentially lethal concentrations of pressurized H2S gas.
At the southern end of the area, in the vicinity of the gold intersection in 2005 drillhole LRM-01,
seven holes intersected variably altered volcanics and breccia. Five of these holes (LRMRC 005,
006, 007 &009) were essentially barren. However, significant gold was intersected in four
drillholes, with associated copper in two of these holes, similar to drillhole LRM-01 drilled in 2005.
! LRMRC-003: 64 to 68 m (4 m @ 0.17 g/t Au) and 74 to 90 m (16 m @ 0.14 g/t Au).
! LRMRC-005: 90 to 92 m (2 m @ 0.11 g/t Au), 96 to 100 m (4 m @ 0.29 g/t Au), 106 to
112 m (6 m @ 0.13 g/t Au) and 124 to 134 m (10 m @ 0.43 g/t Au).
! LRMRC-018: 2 to 16 m (14 m @ 2.20 g/t Au & 0.32% Cu, including 2 to 12 m (10 m @ 2.96
g/t Au & 0.44% Cu) and 68 to 72 m (4 m @ 0.19 g/t Au).
! LRMRC-019: 2 to 78 m, anomalous gold over the complete hole (average 1.47 g/t Au) with
copper in the top 18 m, including 2 to 22 m (20 m @ 2.23 g/t Au & 0.18% Cu), 22 to 58 m
(36 m @ 0.27 g/t Au), 58 to 70 m (12 m @ 4.53 g/t Au) and 70 to 78 m (8 m @ 0.39 g/t Au).
To the north, drillholes LRMRC 010 – 017 intersected zones of geochemically anomalous
molybdenum (>5 ppm up to 130 ppm) and copper (>300 ppm up to 1675 ppm) with minor gold
in some of these drillholes:
! LRMRC-010: 28 to 42 m (14 m @ 0.16 g/t Au), 56 to 70 m (14 m @ 0.34 g/t Au) and 134 to
139 m (5 m @ 0.13 g/t Au).
! LRMRC-013: 46 to 48 m (2 m @ 0.31 g/t Au).
! LRMRC-014: 78 to 84 m (6 m @ 0.20 g/t Au).
! LRMRC-015: 74 to 76 m (2 m @ 0.38 g/t Au).
! LRMRC-016: 86 to 92 m (6 m @ 0.13 g/t Au), 110 to 120 m (10 m @ 0.13 g/t Au) and 150 to
151 m (1 m @ 0.21 g/t Au).
! LRMRC-017: 06 to 08 m (2 m @ 0.11 g/t Au), 12 to 14 m (2 m @ 0.11 g/t Au) and 16 to 20 m
(4 m @ 0.11 g/t Au).
(Cutoff grade used for the above intersections is 0.10 g/t Au).
These results are interpreted to support potential for a large porphyry copper-gold target associated
with the porphyry copper-gold intersection in 2008 drillhole LRMDDH-002 (392 to 520 m : 128 m
@ 0.14% Cu and 0.19 g/t Au).
A substantial program of deep diamond drilling (500 – 600m) will be required to test these targets
below the levels achievable with RC drilling.
A planned RC drilling program at the Amalaf Exploration Licence area that was scheduled for the
second quarter 2012, was postponed as a result of a new Government of Pakistan policy requiring
security clearances for expatriate personnel engaged in exploration activities in this region.
Work Completed in 2014-2015
During 2014-15, Lake Resources entered into an Exclusivity Agreement and associated
Shareholders Agreement and Share Subscription Agreement (CRME Joint Venture) with Colt
Resources Middle East (CRME) and Aamir Resources Consultants whereby CRME can earn a
majority interest in Lake’s Chagai project in Balochistan. Key provisions of these agreements are set
out below.
! There are 3 parties, Lake Resources N.L. (Lake) through its Pakistan-incorporated subsidiary
Lake Mining Pakistan (Pvt.) Limited, Colt Resources Middle East (CRME) through its Pakistan
incorporated subsidiary Balochistan Chaghi Mining Resources (Pvt.) Limited (BCMR) and
Aamir Resources Consultants (Pvt.) Limited (ARC) a Pakistan-based resources consulting
group.
! The operating entity will be a Pakistan-incorporated company, Chagai Resources (Pvt.) Limited,
into which Lake Resources’ exploration licences will be transferred, subject to approval by
Government of Balochistan.
! The initial shareholders in Chagai Resources will be BCMR 60%, Lake Mining Pakistan 27.5%
and ARC 12.5%.
! BCMR will subscribe a minimum of USD1.9 million to Chagai Resources (Pvt.) Limited (Equity
Contribution 1) to be expended on exploration of the licences with 3 years.
! IF BCMR fails to invest Equity Contribution 1 and /or Chagai Resources fails to expend Equity
Contribution 1 on exploration of the licence areas within 3 years, then BCMR and ARC will
transfer their entire shareholdings in Chagai Resources to Lake Mining Pakistan.
! BCMR will subscribe a further USD3.1 million to Chagai Resources (Pvt.) Limited (Equity
Contribution 2) to be expended on exploration of the licence areas with 3 years from the date of
completion of Equity Contribution 1,and the resultant shareholdings in Chagai Resources will
be BCMR 72.5%, Lake Mining Pakistan 15% , and ARC 12.5%.
! IF BCMR fails to invest Equity Contribution 2 and /or Chagai Resources fails to expend Equity
Contribution 2 on exploration of the licence areas within 3 years from the date of completion of
Equity Contribution 1, then the shareholdings of Chagai Resources will revert to CRME 51%,
Lake Mining Pakistan 40% and ARC 9%.
! For subscriptions and expenditure above USD5 million, Lake Mining Pakistan and ARC will be
diluted until their respective equities are 10% and Lake Mining Pakistan’s interest will revert to a
10% carried interest repayable from 80% of Lake’s share of net profits. ARC, on diluting to 10%
will revert to a 5% free carried net profits interest.
Pursuant to these agreements, Lake Resources surrendered its three exploration licences in
Balochistan, effective 6 May 2015, and new exploration licences covering the same areas as the
surrendered licences were granted to the Pakistan-incorporated operating entity, Chagai Resources
(Pvt.) Limited, for a period of 3 years, effective 12 June 2015. The licence documents specify that
the company will “…sign an agreement with Government of Balochistan regarding
participation/entry of the Government of Balochistan in the said licence/project with 12.5% share on
100% discount i.e. without any investment or 25% share with investment in accordance with the
Latest Policy of the Government.”
No field work was undertaken during the reporting period. However work commenced on
preparation of a program and budget for resumption of exploration on the Chagai project licence
areas in the second half of 2015..
Lake Resources N.L.
7
ANNUAL REPORT 2015
Future Progam
As noted in the Chairman’s Report, the company continue to investigate other investment and exploration opportunities.
The Company will a need to raise further working capital to continue with any planned activities.
The information in this report that relates to Exploration Results, is based on information compiled by Jim Clavarino who is a Member of The Australasian Institute of
Mining and Metallurgy. Mr. Clavarino is Exploration Director of Lake Resources NL and is employed by Argent Resources Pty Ltd. Mr. Clavarino has sufficient
experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a
Competent Person as defined in the 2012 Edition of the ‘Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves'. Mr.
Clavarino consents to the inclusion in the report of the matters based on his information in the form and context in which it appears.
8
Glossary of Terms
Lake Resources N.L.
PAKISTAN
ARGENTINA
AUSTRALIA
In this Report, the following words have these meanings unless the context otherwise requires:
"Alteration" means chemical changes to rocks and minerals, commonly related to ore-forming processes.
"Andean-type arc" means a chain of volcanic centres and intrusives associated with continental plate margins.
"Anomaly/anomalous" means abnormal; in geological data may indicate a target for investigation.
"Argillic alteration" means a type of alteration of rocks and minerals to clay minerals.
“Base metals" means any of the more common metals such as copper, lead and zinc.
"Batholith" means a large body of intrusive igneous rock.
"Breccia" means a rock made up of angular coarse fragments.
"Caldera" means a more or less circular volcanic depression whose diameter is many times greater than that of a volcanic vent.
"Chalcopyrite" means one of the sulphide minerals of copper.
"Diamond drilling" means a method of drilling using diamond tipped drill bits to recover solid core samples from the ground.
"Disseminated" means mineral particles scattered more or less evenly within rock or zone of rocks.
"Epithermal" means ore deposited at shallow depths from ascending hot solutions.
"Float" means rocks no longer in their original place.
"Geochemical sampling" means the collection and chemical analysis of geological samples for metals and trace elements.
"Geophysical surveys" means surveys using instruments to detect and measure naturally occurring and induced magnetic, electrical and electromagnetic properties of
the earth.
"GIS" (Geographic/Geologic Information System) means a system for defining, storing, manipulating and presenting spatially related information such as geological,
geophysical, geochemical and topographic data.
"Gossan" means the outcropping ferruginous deposits derived from the oxidation of underlying sulphide minerals.
"Gravity (survey/data)" means measurements of the earth's field of gravity, which varies depending on the underlying rocks.
"g/t" means grams per tonne, a measurement commonly used for precious metal ores.
"Island arc" means a chain of volcanic islands associated with oceanic tectonic plate margins.
"km" means kilometres.
"Magnetic (survey/data)" means measurement of the earth's natural magnetic field, which varies depending on the underlying rocks.
"Magnetite" means one of the oxide minerals of iron.
"Massive sulphide" means mineral deposits containing a high proportion of sulphide minerals.
"Net smelter return" means the payment made by a smelter to a mine for the contained metal in concentrate after deduction of all smelting and refining costs, penalties,
deductions and freight.
“Porphyry deposits" refer to a type of mineral deposit (usually copper, molybdenum and gold) associated with intrusive igneous rocks where the valuable minerals are
present in disseminated form.
"ppb" means parts per billion, a measurement of concentration.
"ppm" means parts per million, a measurement of concentration.
"Precious metals" means gold, silver or any of the platinum group of metals.
"Quaternary age" means a geologic period of time from 1.8 million years ago to present.
"Satellite images" means digital images of the earth's surface compiled from spectral data collected by sensors carried in special-purpose satellites, readily available for
all parts of the world from various commercial and government sources.
"Sheeted dykes" means groups of thin (relative to length) tabular igneous intrusives.
"Sovereign risk" means the potential risk that could arise due to a change in government or government policy.
"Sq km" means a measurement of area in square kilometres.
"Stockwork" means a network of veins.
"Stratigraphic" refers to identifiable geological strata.
"Stratovolcano" means a stratified volcanic cone of large proportions.
"Stream sediment sample" means a sample of the silt and sand collected from a stream bed for geochemical analysis.
"Supergene deposit" means a mineral deposit formed by descending surficial solutions.
"Tectonic plate" means a distinct cohesive block of the earth's crust.
"Tenements" means mineral exploration and mining titles granted by government agencies.
Telephone: +61 7 3252 0255
Facsimile: +61 7 3257 2122
Email: lakeresources@lakeresources.com.au
www.lakeresources.com.au
Lake Resources N.L.
3-7 Maud Street
Newstead QLD 4006
GPO Box 1239
Brisbane 4001 Australia
Telephone: +61 7 3252 0255
Facsimile: +61 7 3257 2122
Email: lakeresources@lakeresources.com.au
www.lakeresources.com.au