Global Metals Exploration NL

– Copyright © 2012 RM Research – www.rmresearch.com.au - Please read the disclaimer for terms.

Event

Global Metals Exploration have had a major boost at the Jutson Rocks Greenstone Belt

Project (“JRGB”) with the first phase of RAB drilling returning up to 4 metres @ 3.5 g/t gold

from 32 metres downhole. Six other RAB holes returned significant results. This program

was designed to follow up auger anomalies that were defined from a regional Bulk Leach

Extractable Gold (BLEG) survey. The JRGB Project is situated approximately 125

kilometres north-east of Laverton within the north-eastern region of the Yilgarn Craton and

covers over 67 kilometres of strike and 675 km2.

As stated out in our last report (RM Research, 2/4/2012), we consider the JRGB to be

one of the last greenstone belts in the Yilgarn Province (Western Australia) that is yet to

be subject to comprehensive modern exploration.

These results were returned from two lines spaced 1.1 kilometres apart across a strike width of 138 metres in the southern line and 19 metres in the northern line. The anomaly remains open in all directions and the intervening 1.1 kilometres remains to be tested.

The majority of the mineralised intercepts are likely to be situated within the supergene zone (between fresh and weathered rock). The location of these anomalies, that are coincident with sheared mafic lithologies, quartz veining and magnetic highs are likely to be indicative of a primary source however the grade and tenor of primary mineralisation is yet to be determined.

Other anomalous metals including Ni, Cu and Zn including one RAB intersection of 36 metres @ 0.2% probably indicative an ultramafic host.

Impact

These impressive results give further weight to our previous interpretation that there is a

high probability of the JRGB containing potentially economic deposits of gold.

Significantly, the majority of other greenstone belts so far identified in the Yilgarn are

known to host significant gold deposits. These include Southern Cross (10Moz), Kalgoorlie

(120Moz), Leonora (12Moz) and Laverton (25Moz). Furthermore, Gold Road Resources

(ASX: GOR) recently commenced a feasibility study on its Central Bore Project (152,323

oz gold) on the adjacent Yamarna Greenstone Belt. JORC Resources now total in excess

of 1Moz (Attila and Central Bore Projects).

Again, we are reminded that the Yarmana Greenstone belt is, in GOR’s words, potentially

the “5th gold rich shear zone in the world-class Yilgarn Craton” of Western Australia (Gold

Road Resources Limited, 2011 AGM Presentation).

With the geochemical anomalies remaining open and preliminary RAB drilling returning

impressive results, we anticipate a sharp increase in exploration activity at the JRGB.

Action and Recommendation

With recent declining markets for “risky assets” and a market capitalisation of just A$3.0

million, RM Research believes there is a window to accumulate GXN prior to the release

of the next round of results.

The Company provides tremendous leverage in an underexplored greenstone belt.

We maintain a Speculative Buy recommendation.

Capital Structure

Sector Materials

Share Price (A$) 0.009

Fully Paid Ordinary Shares (m) 332.5

Partly Paid Shares (0.0075) (m) 115.9

Opt (ex 10c, exp 30/6/12) (m) 237.2

Opt (ex 2c, exp 01/11/15) (m) 80.3

Market Cap (undil) (A$m) 3.0

Share Price Year H-L (A$) 0.043-0.008

Approx Cash (A$m) 0.4

Directors & Management

Carl Swensson Non-Exec Chairman

Lia Darby Managing Director

Andrew Mortimer Non-Exec Director

Ashley Hood Non-Exec Director

Kent Hunter Company Secretary

Major Shareholders

SACFM Limited <SACFM No 1 Fund> 5.1%

HSBC Cust Noms (Aust) P/L 5.0%

LBT Corp P/L 2.9%

AKB Mortimer 2.5%

Analyst

GT Le Page

+61 8 9488 0800

Share Price Performance

UUUpppdddaaattteee Global Metals Exploration NL

...new gold discovery...the last frontier beckons!

30th April 2012

ASX Code: GXN

Speculative Buy

– Copyright © 2012 RM Research - www.rmresearch.com.au

30 April 2012

EXPLORATION OVERVIEW

Jutson Rocks Greenstone Belt Project

Location and Access

The Jutson Rocks Greenstone belt is situated approximately 125 kilometres north-east of

Laverton within the north-eastern region of the Yilgarn Craton.

The project can be accessed via bitumen road to Laverton, followed by approximately 130

kilometres of good quality gravel roads to the Cosmo Newberry aboriginal community.

Previous airbourne magnetic surveys and geological mapping have been successful in tracing

the JRGB for approximately 60 kilometres over an average width of around nine kilometres.

Geology and Mineralisation

The Greenstone belt,

comprising greenschist-

amphibolite facies intrusive

ultramafics, mafics, felsics

and meta-sediments,

strikes broadly NNW.

In this typical Archaean

setting, the belt is bounded

by granitoids which are in

turn posted dated by

several phases of

deformation, known to

coincide elsewhere in the

Yilgarn with metalliferous

mineralisation.

Ultramafic lithologies (the

most common host of

nickel sulphide

mineralisation) appear

more dominant in the east

with a great proportion of

felsic lithologies and

banded iron formations

(BIF) in the west.

Additionally, there exist

mafic sequences

throughout the project area

which hold good potential

for platinum and palladium.

The most notable feature

is a series of interpreted shears and splays that occupy the central portion of the greenstone

belt (Figure 3) on which a number of gold anomalies are located.

FIGURE 1: Jutson Rocks

Greenstone Project

(source: Global Metals

Exploration NL Nickel

Conference Presentation,

October 2011).

– Copyright © 2012 RM Research – www.rmresearch.com.au

30 April 2012

Jutson Rocks Prospect (GXN 70%)

The Company has earnt 70% of E38/1540 and E38/1541 from Cazaly Resources Ltd (ASX:

CAZ). Jutson Rocks covers approximately 320 km2 and comprises ultramafic, mafic and felsic

rocks in addition to pyroclastics and sediments.

The northern and eastern part of the project comprises mafic intrusives (gabbro, pyroxenitic

and dolerites) with the western side containing mafics, felsic volcanics and banded iron

formations. A metamorphosed and deformed komatiite sequence has also been identified in

the eastern part of the tenement and is interpreted to be up to four kilometres thick - a target

for nickel sulphide mineralisation. The mafics are also potential targets for platinum and

palladium.

Recent RAB Drill Results

Hole ID GDA 94 N GDA 94 From To Interval Au EOH

(m) (m)

ppm

JRAB050 537473 6910751 28 32 4 0.25 48

JRAB051 537492 6910761 40 41 1 0.22 52

JRAB072 537616 6909612 40 44 4 0.36 52

JRAB073 537636 6909632 32 36 4 3.5 51

and

36 44 8 0.14

and

40 44 4 0.88

and

32 36 4 3.5

JRAB074 537661 6909629 28 32 4 0.54 51

and

40 44 4 0.32

and

40 48 8 0.24

and

48 51 3 0.39

JRAB075 537684 6909630 44 48 4 0.23 49

and

48 49 1 0.15

JRAB076 537710 6909629 52 54 2 0.23 54

JRAB078 537754 6909633 36 40 4 0.11 57

The recently completed -60o RAB drilling program consisted of 86 drill holes (2,181 metres),

drilled to blade refusal. The holes were drilled on two lines approximately 1.1 kilometres apart.

The RAB program was designed to follow up an auger sampling programme, which in turn

was designed to follow up encouraging results from a regional BLEG sampling survey. This

RAB program tested a 500 metre x 500 metre BLEG anomaly which was subsequently

followed up by a 50 metre x 125 metre auger program (Figures 2 & 3). Table 1 and Figures 3,

4 and 5 summarise better results >0.1 ppm Au for this first round of RAB drilling.

Holes 50 and 51 intersected fine grained mafics while holes 72 – 76 and 78 intersected

sheared volcaniclastic. The majority of significant gold intercepts are interpreted to occur at

the supergene fresh rock/weathered rock interface.

Our stylised interpretation of gold mineralisation within a typical laterite profile in the Yilgarn

Craton is shown in Figure 2. RM Research believes that JRAB 073, for example, may have

intersected gold within the supergene zone that in turn may have been sourced from primary

mineralisation within sheared mafic lithologies deeper in the profile.

Further drilling will be required to see if there is any primary root to these supergene results.

TABLE 1: Significant RAB

gold results from Jutson

Rocks (source: Global

Metals Exploration, ASX

Announcement, 17 April

2012).

Deeper drilling will be

required to determine if

this supergene

mineralisation has any

primary source...

...the majority of the

significant intersections

are likely to be within the

supergene zone


30 April 2012

RAB HOLE No. JRAB 073

Soil

Duricrust

Mottled Zone

Pallid Zone

SUPERGENE

Saprolite

Hole Depth 51 metres Saprock

Fresh Rock

Possible gold mineralised shear zone in fresh rock?

4.0 metres (32 - 36 metres downhole) @ 3.5 g/t gold.

FIGURE 2: Stylised

Interpretation of

supergene gold

mineralisation for JRAB

073 at the Jutson Rocks

Greenstone Project-NOT

TO SCALE (source: RM

Research, April 2012).

FIGURE 3: BLEG and

auger anomalies over

geology at Jutson Rocks

Greenstone Project

(source: Global Metals

Exploration, ASX


2012).

RAB Rig


30 April 2012

FIGURE 4: Location of

significant RAB results at

Jutson Rocks Greenstone

Project (source: Global

Metals Exploration, ASX


2012).


30 April 2012

Future Exploration

The Company is likely to follow up with a 3-4,000 metres RAB program to test extensions to

the anomalous zones along strike to the north and south (Figure 5). Results are anticipated in

June/July 2012.

Results from an additional 35 square kilometres of BLEG samples are also due shortly. This

recent program further extended geochemical coverage to the south (Figure 3, 5).

CORPORATE

The Company raised A$250K in mid April 2012 to Sophisticated Investors via the issue of 25

million fully paid ordinary shares (“Shares”) at an issue price of A$0.01 each, (together with

one for one free attaching options to acquire Shares at 2 cents each on or before 1 May 2015)

to raise A$250,000 (before expenses of the placement). We also note that director Andrew

Mortimer has accumulated a further 2.0 million Shares (Global Metals Exploration, ASX

Announcement, 12/4/2012)

CONCLUSION

These RAB results represent an encouraging start to the exploration program at the JRGB.

While the Company has some impressive results in the supergene zone, we will need to see

the results of deeper drilling to establish whether there are any substantial “roots” to this

mineralisation deeper in the profile. It is too early to establish whether there is any significant

oxide potential or primary mineralisation of economic interest however RM Research remains

cautiously optimistic given that the soil geochemical anomalies remain open to the north and

south.

We are expecting that the next round of BLEG results should extend existing anomalies and

provide additional RAB targets in the near term. Speculative Buy.

FIGURE 5: Jutson Rocks

Greenstone Project

showing RAB lines

overlying magnetics

(source: RM Research

April 2012).

RAB drilling is planned

to extend coverage to the

north and south...

...balance of regional

BLEG assays is imminent

RM Research remains

cautiously optimistic...

...geochemical anomalies

remain open to the north

and south


30 April 2012

Registered Offices

Perth

Level 2, 6 Kings Park Rd

West Perth WA 6005

Phone: +61 8 9488 0800

Fax: +61 8 9488 0899

PO Box 154 West Perth WA 6872

Email / Website

[email protected]

www.rmresearch.com.au

RM Research Recommendation Categories

Care has been taken to define the level of risk to return associated with a particular company. Our recommendation ranking system is as follows:

Buy Companies with „Buy‟ recommendations have been cash flow positive for some time and have a moderate to low risk profile. We expect these to outperform the broader market.

Speculative Buy We forecast strong earnings growth or value creation that may achieve a return well above that of the broader market. These companies also carry a higher than normal level of risk.

Hold A sound well managed company that may achieve market performance or less, perhaps due to an overvalued share price, broader sector issues, or internal challenges.

Sell Risk is high and upside low or very difficult to determine. We expect a strong underperformance relative to the market and see better opportunities elsewhere.

Disclaimer / Disclosure This report was produced by RM Research Pty Ltd, which is a Corporate Authorised Representative of RM Capital Pty Ltd (Licence no. 221938). RM Research will receive payment of A$35,000 for the compilation and distribution of four research reports. RM Research Pty Ltd has made every effort to ensure that the information and material contained in this report is accurate and correct and has been obtained from reliable sources. However, no representation is made about the accuracy or completeness of the information and material and it should not be relied upon as a substitute for the exercise of independent judgment. Except to the extent required by law, RM Research Pty Ltd does not accept any liability, including negligence, for any loss or damage arising from the use of, or reliance on, the material contained in this report. This report is for information purposes only and is not intended as an offer or solicitation with respect to the sale or purchase of any securities. The securities recommended by RM Research carry no guarantee with respect to return of capital or the market value of those securities. There are general risks associated with any investment in securities. Investors should be aware that these risks might result in loss of income and capital invested. Neither RM Research nor any of its associates guarantees the repayment of capital.

WARNING: This report is intended to provide general financial product advice only. It has been prepared without having regarded to or taking into account any particular investor‟s objectives, financial situation and/or needs. Accordingly, no recipients should rely on any recommendation (whether express or implied) contained in this document without obtaining specific advice from their advisers. All investors should therefore consider the appropriateness of the advice, in light of their own objectives, financial situation and/or needs, before acting on the advice. Where applicable, investors should obtain a copy of and consider the product disclosure statement for that product (if any) before making any decision.

DISCLOSURE: RM Research Pty Ltd and/or its directors, associates, employees or representatives may not effect a transaction upon its or their own account in the investments referred to in this report or any related investment until the expiry of 24 hours after the report has been published. Additionally, RM Research Pty Ltd may have, within the previous twelve months, provided advice or financial services to the companies mentioned in this report. As at the date of this report, the directors, associates, employees, representatives or Authorised Representatives of RM Research Pty Ltd and RM Capital Pty Ltd may hold shares in Global Metals Exploration NL.

Global Metals Exploration NL

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