Genesis Minerals

PROJECT OVERVIEW

Genesis Minerals Limited (ASX: GMD) is an Australian gold exploration and mine development company with high quality projects located in Western Australia’s premier gold districts. This includes the Ulysses Gold Project, 30km south of Leonora, the Barimaia Gold Project located 10km South East of Mt Magnet; and the Viking Gold Project located in the Albany-Fraser range province. The Company is focussed on cash-flow, exploration and growth underpinned by projects located in Tier-1 jurisdictions. At the Ulysses Gold Project, Genesis is targeting a long-life standalone underground mining and processing operation.

SCOPE OF WORKS

Genesis and SMS Innovative Mining Pty Ltd entered into a Mining Alliance Agreement to develop and mine the Ulysses West open pit which included haul road construction, mobilisation of equipment, site establishment, drill and blast, and load and haul of waste and ore.

SMS provided a mix of equity and debt funding to support the development of the initial open pit at Ulysses West. In turn SMS became a major shareholder of Genesis Minerals to support its future growth and objective to develop the larger Ulysses underground.

The initial investment by SMS consisted of the subscription by SMS for shares in Genesis at $0.025 per share, to the value of $2.5 million. Genesis issued shares to SMS until the full satisfaction of invoiced amounts as per the mining schedule to an aggregate of $2.5 million. Once the aggregate amount of $2.5 million had been reached, all further invoiced amounts were treated as an interest free loan from SMS to Genesis which continued to accrue until repaid out of cash flow generated by Genesis from gold sales.

This model demonstrates the strength of the SMS offer and ths ability to offer flexible contract models. SMS and Genesis continue to jointly investigate opportunities to develop other open pit mining operations.