Tanami Gold NL : Quarterly Activities Report & Appendix 5B

FOR THE PERIOD ENDING 31 Mar 2017

CORPORATE

Cash and Cash Equivalents

As at 31 March 2017, the Company had cash of $ 5,011,125.

Joint Venture with Northern Star Resources Limited

As previously announced, the Company and Northern Star Resources Limited ("NST") have formed an unincorporated joint venture

("JV") to advance the Company's Central Tanami Project ("CTP").

In accordance with the JV, management of the exploration activities at the Company's CTP have been handed over to NST who will sole fund all JV expenditure including all CTP exploration and evaluation costs, assessment and development costs, mining of the JV tenements and refurbishing the CTP process plant and associated infrastructure, during the Sole Funding Period.

The Sole Funding Period will expire on the date on which the process plant at the CTP has been refurbished to operating condition and has operated for a continuous 30 day period or has produced 5,000 ounces of gold ore (whichever occurs first). On the expiry of the Sole Funding Period, NST will have earned a further 35% undivided interest in the CTP (taking NST's total JV Interest to 60%).

Northern Star Resources Limited Shares

As at 31 March 2017, the Company has 750,000 NST shares remaining.

EXPLORATION

Central Tanami Project (75% Tanami)

Field activities were limited due to the onset of the wet season conditions. An extensive remedial program covering legacy environmental and rehabilitation issues has continued.

Meetings with senior DPIR representatives in Darwin addressed outstanding issues for the CTP MMP including following multiple requests for additional documents and maps. At the end of the quarter, verbal approval of the CTP MMP was received pending a final determination of bonding requirements from the Security Board.

Compilation of historical data continued over the Tanami Mine Corridor Trend. All legacy GIS mapping datasets over the Tanami Mine Corridor have been compiled and aligned with the NST logging system. Geological mapping and sampling continued with the objective to validate existing bedrock mapping and to characterise the overlying regolith. A total of 777 samples were collected from historical drill holes for lithogeochemical analysis.

A review of historical gravity data was undertaken over the Tanami Mine Corridor to identify additional areas of interest. A significant proportion of raw gravity data acquired by Normandy/Newmont is missing however reprocessing of available data produced positive preliminary results and expansion of the regional gravity data coverage is planned.

Detailed geological pit mapping of the Jim's open pit was completed with the deposit interpreted to sit in a strike-slip duplex structure. This model will assist exploration on prospects along strike from the deposit, towards the Cave Hill (southeast) and Molech/Flores (northwest) areas.

FOR THE PERIOD ENDING 31 Mar 2017 Figure 1 Tanami region activities for March quarter

Regolith mapping over the Farrands Hill region was completed to optimise the design of a planned geochemical sampling program.

Western Tanami Project (100% Tanami)

Resampling of 3m composite samples from reverse circulation drilling completed during November 2016 at both Rabid South and the Nugget Patch have been completed and results received are listed in Tables 1 and 2. Note that a full listing of drilling locations and a JORC Code table for reporting of exploration results provided with the December 2016 Quarterly report so not repeated here.

Table 1 Rabid South RC Drill Intersections

(Coordinates and Azimuths are MGA94 zone 52 projection)

Hole ID	Easting	Northing	RL	Total Depth (m)	Azimuth (degrees)	Dip (Degrees)	3m composite (ppm)	1m re- sample	From Depth (metres down hole)
								(ppm)
RSRC0001	488540	7789800	429	132	090	-60	3m @ 1.954	7.585 2.87 0.135	3
RSRC0002	488475	7789800	433	150	090	-60	3m @ 0.815	0.002 0.004 0.826	39
						-60	3m @ 0.116	0.004	57

FOR THE PERIOD ENDING 31 MARCH 2017

Hole ID	Easting	Northing	RL	Total Depth (m)	Azimuth (degrees)	Dip (Degrees)	3m composite (ppm)	1m re- sample	From Depth
0.14 0.012
-60	3m @ 0.107	0.024 0.009 0.082	69
-60	3m @ 0.097	0.009 0.06 0.091	84
RSRC0003	488417	7789800	424	132	090	-60	3m @1.817	3.099 0.094 2.689	45
						-60	3m @ 0.875	0.173 0.432 2.317	81
						-60	3m @ 0.596	1.196 0.172 0.053	84
						-60	3m @ 0.255	0.009 0.01 0.554	87
RSRC0007	488600	7789960	420	96	090	-60	3m @ 0.12	0.181 0.017 0.046	63
						-60	3m @ 0.318	0.364 0.95 0.245	66
						-60	3m @ 0.297	0.074 0.399 0.325	69
						-60	3m @ 0.344	0.435 0.448 0.054	72
						-60	3m @ 0.481	0.232 0.05 0.59	75
RSRC0009	488520	7789840	425	78	090	-60	3m @ 0.18	0.035 1.49 0.009	9
						-60	3m @ 1.905	0.103 13.212 0.052	18
RSRC0010	488474	7789840	427	84	090	-60	3m @ 0.606	0.669 0.051 0.008	69
RSRC0011	488440	7789840	427	84	090	-60	3m @ 0.335	0.546 0.978 0.064	51
RSRC0012	488400	7789840	427	78	090	-60	3m @ 0.115	0.003 0.181 0.074	33
						-60	3m @ 0.238	0.611	57

FOR THE PERIOD ENDING 31 MARCH 2017

Hole ID	Easting	Northing	RL	Total Depth (m)	Azimuth (degrees)	Dip (Degrees)	3m composite (ppm)	1m re- sample	From Depth
0.105 0.007
RSRC0013	488480	7789760	427	126	090	-60	3m @ 1.166	0.14 0.015 2.383	3
						-60	3m @ 0.112	0.012 0.005 0.006	42

Table 2 Nugget Patch RC Drill Intersections

(Coordinates and Azimuths are MGA94 zone 52 projection)

Hole ID	Easting	Northing	RL	Total Depth (m)	Azimuth (degrees)	Dip (Degrees)	3m composite (ppm)	1m re- sample	From Depth (metres down hole)
								(ppm)
NPRC0005	487360	7790800	416	90	090	-60	3m @ 0.096	0.003 0.065 0.122	48
							3m @ 0.1	0.139 0.243 0.063	57
NPRC0008	487360	7790840	416	90	090	-60	3m @ 0.549	0.005 0.827 0.381	87
NPRC0010	487420	7790760	426	102	090	-60	3m @ 0.263	0.313 0.285 0.021	39
NPRC0011	487440	7790720	423	90	090	-60	3m @ 0.411	0.151 2.717 0.081	18
							3m @ 0.179	0.016 0.191 0.007	54
NPRC0012	487400	7790720	424	108	090	-60	3m @ 0.156	0.065 0.089 0.099	42
NPRC0013	487320	7790720	424	126	090	-60	3m @ 0.575	0.005 1.116 0.093	99
							3m @ 0.157	0.022 0.12 0.008	102
							3m @	0.309	111