Reservoir Minerals Reports Progress of Exploration Work on Its Nikolicevo Permit in the Timok Magmatic Complex, Serbia - Seite 2

Table 1: Selected results from Trench NT-9, Rudine

Sample Location (m)	Sample Type	Interval (m)	Cu %	Au g/t
2 - 26	C-horizon soil	26	0.33	0.13
including 18-20		2	0.47	0.55
26 - 28	bedrock	2	1.57	0.11

Drilling

The drill targets are based on a combination of coincident geological, structural, geochemical and geophysical (magnetometry and induced polarization) vectors and anomalies. The first phase of exploration drilling commenced during August 2014 and is designed to test shallower targets (approximately 500 metres deep) in the favourable Upper Cretaceous volcanics near the western boundary of the Nikolicevo permit. Three drill holes (RTN 1401 - final depth 266.6 metres, 1402 - final depth 555.4 metres and 1405 - final depth 607.5 metres) have been completed to date for a total of 1,429.5 metres, and there are currently two drill rigs operational on the permit. The second phase of drilling (approximately 10,000 metres in total) is expected to commence in late autumn, 2014, to test deeper targets (up to 1,000 metres deep) in the eastern sector of the permit, where Miocene cover conceals the target Upper Cretaceous volcanics, as well as additional deeper targets in the western sector.

Drill holes RTN 1401 and RTN 1402 intersected a succession of volcanic andesite, volcanic breccia, and volcano-sedimentary units and numerous fault zones marked by tectonic breccia. Hydrothermal alteration is widespread in both drill holes including 50 meters of hydrothermal breccia in RTN 1402 in the Rudine prospect. Drill hole RTN 1402 also intersected a long interval from 350 meters to 520 meters of chlorite-sericite clay and stronger sericite-pyrite-clay, to intense quartz-pyrite alteration.