Between June 2012 and January 2013, a drilling campaign that included La Chulula and Simpson prospects was carried out, with a total of 11.800 meters of reverse circulation drilling. Both prospects were the result of the geophysical works recommended by Goldberg Ltda., in the framework of the exploration ordered by Admiralty Minerals to Goldberg in April 2011.

The first ten drillings scheduled for the prospect La Chulula – located in the mining property called Minas Harper Group – totaled 2,478 m, where the existence of economic mineralization of iron in three sectors, called Block A, Block B, and Block C was verified.

Due to these results, a second campaign was scheduled and planned, which considered 4,082 m, whose purpose was to verify the continuity of the mineralization between the sectors discovered by the first campaign and to ensure, with greater certainty, the mineralization discovered in those same sectors.

Once the mineralization was determined to be concentrated in three mineral bodies, and that a direct continuity was not present between it, the third campaign of 1,432 m was proceeded to perform, distributed in only six drillings, whose objective was to get, as clearly as possible, information of the mineralization of these three sectors (Blocks A, B, and C), to be able to quantify the Fe resources.

The number of drilling meters at this stage was enough to determine a quantification of Fe resources, discovered in the now called La Chulula Project. For this purpose, a database was built that allowed to include all geological information and the results of the obtained grades from a total of 2,652 samples sent for analysis.

With all this information it was proceeded to the construction of 66 vertical sections and 3 plan sections of mineralization for 3 different Cut-Off, (10% Fe T, 15% Fe T and 25% Fe T).

It has proceeded to the modeling of 3 solids for each of the Cut-Off mentioned above. The average depth that was selected for the estimated Indicated Resource was 250 m, this was because most of the drillings provided information up to this depth; for the Inferred resources it was selected a depth column of only 150 m, this under consideration that the resource should be exploited through an open pit operation.

The probability of the existence of this resource, issued in quality of Inferred, is high under the type and geometry of the explored deposit. The resources obtained through the solids, built for these 3 cut-offs, are summarized as showed in Table 1:

The results obtained so far, and showed in this Report, reflect that Admiralty Minerals (ADY:ASX) adds a new iron resource potential to its portfolio of projects. In this context, it is recommended to move forward with a campaign of diamond drillings as a basis for the preparation of the necessary studies on the elaboration of a first mining scoping study, which will give value to the market to this new mineral resource.