Black Ridge Mining NL

ASX Code: BRD ACN: 083 274 024

Registered Office

c/ Ground Floor 63 Hay Street Subiaco WA 6008 t: +61 (8) 9 322 7822

www.blackridgemining.com.au

Capital Structure

1,559,953,481 ordinary shares 705,391,823 options ($0.003,

exp 30/11/16)

Board Members

Peter Elliott Non-Executive Chairman Graeme Smith Non-Executive Director Vladimir Nikolaenko Non-Executive Director Graeme Smith Company Secretary

Quarterly Report – December 2015

OPERATIONAL HIGHLIGHTS

Initial PL14 field trials conducted

PL14 technology seminar well attended by industry

Several anomalies from MMI surveys identified for drilling

targeting

PETROLOCATE TECHNOLOGY

During the quarter Mr Ervin Kraemer, the designer of the Seismoelectric PL14

technology, was in Perth to conduct theoretical and field training with BRD

technical personnel.

During the visit field trials were undertaken on Empire Oil & Gas (EOG) 100%

owned acreage in the Perth basin.

BRD acknowledges the foresight shown by EOG in being the first company in

Australia to pioneer the trials of the technology. Use of the technology is rapidly

gaining momentum in the US with a growing number of successful results

defining hydrocarbon accumulations.

Black Ridge also held a seminar on the Technology, with Ervin Kraemer as main

platform speaker. The seminar was well attended by oil and gas companies, as

well as representatives from the media and university. Following the seminar

keen interest has been expressed by numerous oil and gas companies to have

surveys acquired within their permits in Western Australia and the Northern

Territory.

Going forward cost effective exploration techniques will be critical for oil and

gas companies to explore for energy resources within their permits. This

technology has the ability to significantly de-risk oil and gas targets and does so

at substantial cost savings to traditional seismic survey exploration methods.

For

per

sona

l use

onl

y

December 2015 Quarterly Report 2 | P a g e

Petrolocate Technology (continued)

Unlike the traditional seismic surveys this technology and equipment does not require large areas of cleared land.

The portable operating unit is robust and extremely mobile and is able to be operated in rugged and difficult terrain

and environmentally sensitive areas.

Black Ridge plans to charge a service fee for Seismoelectric (PetroLocate) Surveys and expects the surveys to be

popular given the cost effectiveness and risk reduction potential of the technology. The Company is also looking to

explore strategic alliances or partnerships with O&G companies in the form of success based fees and royalties in

relation to providing PetroLocate surveys where this makes commercial sense.

MINERAL EXPLORATION ACTIVITIES

Unaly Hill Project, Yilgarn Block WA (100% BRD)

During the previous Quarter Black Ridge Mining NL carried out the third round of Mobile Metal Ion (“MMI”)

geochemical soil sampling at the Unaly Hill Project, E57/420. The three rounds, which commenced in December

2014, included a total of 794 samples being removed from the southern portion of the tenement. The results

revealed a number of multi element geochemical anomalies, several of which have provided excellent targets for

follow up drilling.

During the December Quarter a comprehensive review of the results was carried out with a number of possible drill

sites proposed, notably where the gold and nickel anomalies occur in the north-eastern corner of the survey area.

This area lies proximal to the crustal scale Youanmi Fault and covers a host of mafic and ultramafic rock units cross-

cut by several orientations of shearing and associated quartz veining.

Other anomalies present at the project include several target zones where iron, vanadium, and titanium are

coincident. These new anomalies, many of which are concealed beneath transported overburden, are thought to

be related to vanadiferous titanomagnetite. These are magmatic differentiates that occur within the Atley Igneous

Complex, a layered mafic and ultramafic intrusion.

The primary target identified from the MMI sampling is anomalous gold with a peak response ratio of 189. This

figure being up to 189 times the geochemical background as determined by the 25th quartile of the total responses.

Other highly prospective targets include a nickel-cobalt in an area with a high magnesium response.

Gold

Peaking at 189 RR, the gold anomaly from the 2014 and 2015 MMI surveys has grown in size with each successive

attempt. The approximate dimensions are 2000m long by 750m wide with a central semi-contiguous core where

response ratios are over 50RR. The gold anomaly is hosted within several lithologies including tholeiitic basalt,

amygdaloidal basalt, pyroxenite, and gneiss. This structurally complex area is adjacent to the Youanmi Fault. The

gold is related to north-north-east trending brittle/ductile shears and north east sinistral cross faults and related

quartz veining.

This anomaly has not been effectively tested by historic drill traverses and represents a significant target which will

be investigated further. The anomaly is open to the north, north-east and will be likely be subject to further

sampling to test its extent and amplitude. The gold anomaly also remains open to the north where it is expected

to continue.

For

per

sona

l use

onl

y

December 2015 Quarterly Report 3 | P a g e

Figure 1: Gold anomalies at Unaly Hill

Nickel

The MMI sampling programs have revealed a number of nickel anomalies across the survey area with the strongest

being associated with a pyroxenite unit adjacent to the Youanmi Fault. Elevated nickel and cobalt are present with

responses of 40RR and 12RR respectively. Further, the magnesium is elevated with a peak response of 166.7RR

suggesting that lower magnesium pyroxenite may also be accompanied by higher magnesium fractionates within

the layered intrusion. These provide targets as lower parts of the layered intrusion, which are considered highly

prospective for magmatic nickel-copper sulphide deposits, may be faulted and structurally juxtaposed against

upper parts of the intrusion where vanadium and titanium iron deposits tend to occur.

Figure 2: Nickel Anomalies at Unaly Hill

For

per

sona

l use

onl

y

December 2015 Quarterly Report 4 | P a g e

The three rounds of MMI geochemical sampling surveys from 2014 and 2015 have provided the company with more

defined targets for further work. Infill sampling of anomalies has served to improve the amplitude of anomalies, as

well as the strike extent and resolution. The company has been investigating drilling options as the next phase of

exploration of these targets is to test the subsurface extent of the mineralisation with drilling. It is anticipated that

drill testing of the peaks of several of the anomalies will be carried out during 2016.

Background

The Unaly Hill Project (E57/420) is situated some 500km north east of Perth, Western Australia and is a single

tenement covering over 13 kilometres of the strike length of the regionally significant Youanmi Fault. This structure

represents the boundary between the Murchison Province and the Southern Cross Province of the Youanmi Terrane

of the Yilgarn Craton. Immediately west of the Fault is the Atley Igneous Complex.

The initial program was implemented utilising the MMI technique for its ability to see anomalies concealed beneath

transported soils. Historic conventional soil sampling surveys carried out at the project had largely been shown to

be ineffective in defining significant metal soil anomalism. The MMI soil sampling and analytical method has been

commercially developed to detect buried mineralisation beneath regolith and/or transported cover. Results are

given in parts per billion (ppb) range with the lower (25th) quartile used as the statistical background and element

anomalies calculated as a response ratio (RR) relative to the background. Samples were sent to SGS laboratories in

Perth for analysis of a suite of 19 elements which included Ag, Al, As, Au, Cd, Co, Cr, Cu, Fe, Mg, Mn, Ni, Pb, Pd, Pt,

S, Ti, V, and Zn.

Figure 3: Regional Geology showing the Atley Igneous Complex

For

per

sona

l use

onl

y

December 2015 Quarterly Report 5 | P a g e

Schedule of Tenements

Project Tenement Details Interest

Western Australia

Unaly Hill E57/420 100%

Vladimir Nikolaenko

+61 8 9574 6255

Competent Persons Statement

Information in this report relating to exploration results is based on information compiled by consultant geologist, Mr Martin Dormer, who

is a member of the Australian Institute of Mining and Metallurgy. Mr Dormer 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 under

the 2004 Edition of the ‘Australasian Code for reporting of Exploration Results, Mineral Resources and Ore Reserves’. Mr Dormer operates

as Martin Matthew Bruce Dormer and Pennelope Anne Dormer as trustees for the Dormer Family Trust trading as “Unearthed Elements”.

Mr Dormer consents to the inclusion of such information in this report and the context in which it appears.

For

per

sona

l use

onl

y

Appendix 5B

Mining exploration entity quarterly report

+ See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 1

Rule 5.3

Appendix 5B

Mining exploration entity quarterly report Introduced 01/07/96 Origin Appendix 8 Amended 01/07/97, 01/07/98, 30/09/01, 01/06/10, 17/12/10

Name of entity

BLACK RIDGE MINING NL

ABN Quarter ended (“current quarter”)

48 083 274 024 31 December 2015

Consolidated statement of cash flows

Cash flows related to operating activities

Current quarter

$A’000

Year to date

(6 months)

$A’000

1.1 Receipts from product sales and related debtors

1.2 Payments for (a) exploration & evaluation

(b) development

(c) production

(d) administration

(49) -

(33)

(142) -

(91) 1.3 Dividends received - - 1.4 Interest and other items of a similar nature

received - -

1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Other (provide details if material) - -

Net Operating Cash Flows

(82)

(200)

Cash flows related to investing activities

1.8 Payment for purchases of: (a) prospects

(b) equity investments

(c) other fixed assets

- - -

- - -

1.9 Proceeds from sale of: (a) prospects

(b) equity investments

(c) other fixed assets

- - -

- - -

1.10 Loans to other entities - - 1.11 Loans repaid by other entities - - 1.12 Other (provide details if material) - -

Net investing cash flows

-

-

1.13 Total operating and investing cash flows

(carried forward)

(82)

(200)

For

per

sona

l use

onl

y

Appendix 5B

Mining exploration entity quarterly report

+ See chapter 19 for defined terms.

Appendix 5B Page 2 17/12/2010

1.13 Total operating and investing cash flows

(brought forward)

(82)

(200)

Cash flows related to financing activities

1.14 Proceeds from issues of shares, options, etc. 33 236 1.15 Proceeds from sale of forfeited shares - - 1.16 Proceeds from borrowings - - 1.17 Repayment of borrowings - - 1.18 Dividends paid - - 1.19 Other (Placement fees) - -

Net financing cash flows 33 203

Net increase (decrease) in cash held

(49)

3

1.20 Cash at beginning of quarter/year to date 67 15 1.21 Exchange rate adjustments to item 1.20 - -

1.22 Cash at end of quarter 18 18

Payments to directors of the entity and associates of the directors

Payments to related entities of the entity and associates of the related entities Current quarter

$A'000

1.23

Aggregate amount of payments to the parties included in item 1.2

-

1.24

Aggregate amount of loans to the parties included in item 1.10

-

1.25

Explanation necessary for an understanding of the transactions

Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a material effect on consolidated

assets and liabilities but did not involve cash flows

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the

reporting entity has an interest

For

per

sona

l use

onl

y

Appendix 5B

Mining exploration entity quarterly report

+ See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 3

Financing facilities available Add notes as necessary for an understanding of the position.

Amount available

$A’000

Amount used

$A’000

3.1 Loan facilities 100 100

3.2 Credit standby arrangements - -

Estimated cash outflows for next quarter $A’000

4.1 Exploration and evaluation

30

4.2 Development

-

4.3 Production

-

4.4 Administration

15

Total

45

Reconciliation of cash

Reconciliation of cash at the end of the quarter (as

shown in the consolidated statement of cash flows) to

the related items in the accounts is as follows.

Current quarter

$A’000

Previous quarter

$A’000

5.1 Cash on hand and at bank 18 67

5.2 Deposits at call - -

5.3 Bank overdraft - -

5.4 Other (provide details) - -

Total: cash at end of quarter (item 1.22) 18 67

Changes in interests in mining tenements Tenement

reference

Nature of interest

(note (2))

Interest at

beginning

of quarter

Interest at

end of

quarter

6.1 Interests in mining

tenements relinquished,

reduced or lapsed

6.2 Interests in mining

tenements acquired or

increased

For

per

sona

l use

onl

y

Appendix 5B

Mining exploration entity quarterly report

+ See chapter 19 for defined terms.

Appendix 5B Page 4 17/12/2010

Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Total number Number quoted Issue price per

security (see note

3) (cents)

Amount paid up per

security (see note 3)

(cents)

7.1 Preference +securities (description)

7.2 Changes during quarter

(a) Increases through

issues

(b) Decreases through

returns of capital, buy-

backs, redemptions

7.3 +Ordinary securities

1,559,953,481 1,559,453,481

7.4 Changes during quarter

(a) Increases through

issues

(b) Decreases through

returns of capital, buy-

backs

103,750,000

103,750,000

7.5 +Convertible debt

securities (description)

7.6 Changes during quarter

(a) Increases through

issues

(b) Decreases through

securities matured,

converted

7.7 Options (description and

conversion factor)

705,391,823

705,391,823

Exercise price

$0.003

Expiry date

30 Nov 2016

7.8 Issued during quarter 103,750,000 103,750,000 $0.003 30 Nov 2016

7.9 Exercised during quarter

7.10 Expired during quarter

7.11 Debentures (totals only)

7.12 Unsecured notes (totals

only)

For

per

sona

l use

onl

y

Appendix 5B

Mining exploration entity quarterly report

+ See chapter 19 for defined terms.

17/12/2010 Appendix 5B Page 5

Compliance statement

1 This statement has been prepared under accounting policies which comply with

accounting standards as defined in the Corporations Act or other standards acceptable

to ASX (see note 5).

2 This statement does give a true and fair view of the matters disclosed.

Sign here: ............................................................ Date: 29 January 2016

Company Secretary

Print name: Graeme Smith

Notes

1 The quarterly report provides a basis for informing the market how the entity’s

activities have been financed for the past quarter and the effect on its cash position.

An entity wanting to disclose additional information is encouraged to do so, in a note

or notes attached to this report.

2 The “Nature of interest” (items 6.1 and 6.2) includes options in respect of interests in

mining tenements acquired, exercised or lapsed during the reporting period. If the

entity is involved in a joint venture agreement and there are conditions precedent

which will change its percentage interest in a mining tenement, it should disclose the

change of percentage interest and conditions precedent in the list required for items

6.1 and 6.2.

3 Issued and quoted securities The issue price and amount paid up is not required in

items 7.1 and 7.3 for fully paid securities.

4 The definitions in, and provisions of, AASB 6: Exploration for and Evaluation of

Mineral Resources and AASB 107: Statement of Cash Flows apply to this report.

5 Accounting Standards ASX will accept, for example, the use of International

Financial Reporting Standards for foreign entities. If the standards used do not

address a topic, the Australian standard on that topic (if any) must be complied with.

== == == == ==

For

per

sona

l use

onl

y