ASX Announcement 7 July 2016

QUARTERLY ACTIVITIES REPORT FOR THE PERIOD ENDED 30 JUNE 2016

ASX CODE: RNI

HIGHLIGHTS

• Exploration advanced at three priority volcanic hosted massive sulphide (VHMS) targets within RNI's extensive Bryah Basin copper-gold tenement portfolio in WA

• Deep drill testing of the high-priority Cuba VHMS prospect at Doolgunna set to commence with ~800 metre Diamond hole

• Drill targeting progressed at Orient-T10 at Cashmans to follow up on 3 metre massive sulphide intersection and outcropping copper grades of 17.4%

• High-resolution aeromagnetic and gravity surveys conducted over the Forrest-Wodger-Big Billy area at Forrest to provide platform for follow-up drilling program

• $1.5 million raised from Share Purchase Plan

Figure 1: RNI's extensive 1,343km2 Bryah Basin copper-gold tenement package showing the priority target areas at Cuba, Orient-T10 and the Forrest-Wodger VHMS Trend

RNI NL ABN 77 085 806 284

34 Bagot Road Subiaco Western Australia 6008 PO Box 298 West Perth WA 6872 T +61 8 9489 9200 F +61 8 9489 9201 E [email protected] W rninl.com.au

Introduction

RNI NL (ASX: RNI) continues to advance exploration programs for high-grade copper-gold deposits in Western Australia's highly-prospective Bryah Basin, a known VHMS province.

RNI holds an extensive 1,343km2 Bryah Basin exploration portfolio divided into five well-defined project areas - Doolgunna, Cashmans, Forrest, Morck's Well and Horseshoe Well (Figure 1).

The Company commenced a systematic first-pass drilling and exploration program across a series of Bryah Basin targets in late 2015/early 2016.

This work has been successful in defining priority VHMS horizons for follow-up drilling and geophysical programs, targeting DeGrussa, Monty and Horseshoe Lights-style VHMS copper-gold discoveries.

RNI has three target areas that are currently the main exploration focus - Doolgunna - (Cuba Prospect), Cashmans (Orient-T10 Prospect) and Forrest (Forrest-Wodger VHMS Trend).

Progress made at these three priority target areas during the Quarter - and follow-up plans for each in the September 2016 quarter - are detailed below.

Cuba Prospect - Doolgunna Project

The Cuba prospect at RNI's Doolgunna Project is located between the high-grade DeGrussa and Monty VHMS discoveries and is hosted within the same favourable geological setting (Figures 1 and 2).

Figure 2: RNI's Cuba Prospect and Doolgunna Project showing proximity to DeGrussa and Monty

During the Quarter, RNI commenced a reverse circulation (RC) drilling program at Cuba to follow up on previous aircore drilling which successfully defined the presence of a highly-prospective VHMS system.

As set out in the ASX announcement of 19 April 2016, geochemical analysis of the preliminary aircore drill program at Cuba helped infer the orientation of the host stratigraphy and defined a VHMS alteration halo of approximately 1,000m x 400m.

The host sequence of chlorite-altered siltstones, sandstones and basalts, is identical to that found at the Monty and DeGrussa VHMS occurrences.

Further geological mapping and structural interpretation placed Cuba within the stratigraphic repeat of the DeGrussa Formation1, sitting on the southern limb of a regional syncline.

The potential for Cuba to host VHMS-style mineralisation was further highlighted by the identification of key alteration minerals (chlorite-pyrite-sericite) and lead-zinc-molybdenum, copper, arsenic, tellurium and gold geochemical signatures.

A total of six RC holes were drilled at Cuba during the Quarter to target the prospective VHMS horizon and provide a platform for follow-up down-hole electro-magnetic (DHEM) surveys.

As announced to the ASX on 31 May 2016, the geology intersected from the first three RC holes drilled at Cuba (CBRC001, CBRC002 and CBRC003) validated RNI's geological model for the Cuba area, with all holes intersecting visible minor sulphides, favourable host stratigraphy and alteration indicative of VHMS mineralisation.

Assays confirmed the presence of key pathfinder elements (Table 1). While the DHEM survey detected a subtle off-hole EM response approximately 100m-120m east of RC hole CBRC003, the source of that EM response was subsequently identified as a previously unknown cross-cutting fault structure.

As announced to the ASX on 28 June 2016, RNI drilled a further three RC holes at Cuba - CBRC0004, CBRC0005 and CBRC0006 (Figure 3) -before access was lost due to rains and local flooding.

Figure 3: Cuba Prospect - Plan view - Location of drill collars

While drilling samples have been dispatched to the laboratory for assay, hand-held XRF results (Note: Yet to be confirmed by assay) identified significant (up to 113m) intersections of key pathfinder elements including anomalous copper (Table 1) as well as key alteration and visible minor sulphides (as seen in RC hole CBRC001, CBRC002 and CBRC003).

The presence of elevated and anomalous copper, coincident with key pathfinder elements, is considered significant as these are key indicators of a proximal VHMS deposit.

Significant hole deviations in the RC drilling program hampered RNI's efforts to reach planned drilling depths at Cuba and to complete its DHEM surveys.

As a result, it was decided to replace the remaining RC holes originally planned as part of the Cuba program with a deep Diamond hole of approximately 800m beneath the anomalous zone to more accurately target the source of the VHMS anomalism, while also providing key structural and lithological information from Cuba.

Importantly, the deep Diamond hole will also enable RNI to conduct a DHEM survey to vector in on the targeted VHMS mineralisation.

The rig to drill this deep Diamond hole is scheduled to arrive on site at Cuba on Friday 8 July 2016, weather conditions permitting.

Orient-T10 Prospect - Cashmans Project

RNI identified a VHMS system at Orient in the previous quarter, with RC drilling returning a 3m intersection of massive sulphide containing visible chalcopyrite and a halo of enriched copper (chalcopyrite), lead (galena) and zinc (sphalerite) values - which are typical of most VHMS deposits (Refer ASX announcement 17 March 2016).

Surface mapping in the local area identified an exhalative horizon extending 1.5km south of Orient to the T102 prospect - an outcropping malachite rich gossan from which historic rock chip samples returned values of up to 17.4% copper, 8.8 g/t gold and 2g/t silver (See ASX announcement 28 May 2014) (Figure 4).

Figure 4: Orient-T10 prospective VHMS horizon

RNI advanced follow-up exploration programs along the Orient-T10 exhalative horizon during the Quarter to enhance target definition for a planned RC drilling program.