Indochine Mining : Market Update - EL 1093

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Ferrier

Hodgson

Level 28,108 St Georges Terrace Perth WA 6000

GPO Box 2537

Perth WA 6001

T [phone]

F [phone]

E [e-mail] .au www.ferr ierhodgson.com

2 March 2016

Australian Securities Exchange Limited Level 40 Central Park

152-158 St George's Terrace PERTH WA 6000

Indochina Mining Limited (Subject to Deed of Company Arrangement) ACN 141 677 385 (the Company)

Summit Development Ltd (SDL) PNG Company No. 1-73895

Former Exploration Licence EL1093 (EL1093)

I refer to my previous correspondence in respect of the Company

On 14 July 2014, the Company lodged an application for renewal of the licence term for a period of two (2) years for EL1093. This application was made with a view to completing the exploratory work program and enable the Company to transition to an application for a mining lease to conduct mining activities shortly thereafter.

We have been advised that the Minister for Mining, Hon. Byron Chan, refused SDL's application to renew EL1093 on 14 December 2015 . Further investigation has revealed that, in the intervening period between the decision being made and receipt of notification, another company had registered an application on the newly created exploration licence over Mt Kare on 18 December 2015. For completeness, we note that we were not advised of the Minister's decision until 18 January 2016.

We are deeply disappointed that we were not afforded the courtesy of being notified in a timely manner that our application was refused, nor provided any details surrounding the reason why it was refused which may have provided us with an opportunity to deal constructive ly with the reasons. This is after we have completed all key milestones required by the Mineral Resources Authority, inclusive of the close consultation with the regulatory bodies throughout this process which evidences the Company's commitment and intention to develop Mt Kare to a sustainable and profitable project.

As a consequence, we have filed an application with the National Court seeking a judicial review of the Minister's decision. Further, and with a view to preserving SDL's interest, we have filed a fresh application for the grant of an exploration licence over Mt Kare. In this regard, we confirm we are considering all legal avenues.

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Ferrier Hodgson is an affiliation of independent partnerships/entities

Liability limited by a scheme approved under the Professional Standards Legislation

SYDNEY MELBOURNE ADELAIDE BRISBANE PERTH

KUALA LUMPUR SINGAPORE

Affiliated through:

Zolfo Cooper

CARIBBEAN UNITED KINGDOM UNITED STATES

KLC Kennie Lui & Co.

CHINA

HONG KONG

Ferrier Hodgson

Whilst the licence is being determined, we have sought funding from the secured creditor to meet costs in preserving and provisioning the camp at Mt Kare.

In the interim, we have requested an extension of time from the Australian Securities and Investments Commission to convene the AGM.

We have also agreed to an extension of the deadline of the conditions precedent set out in the Deed of Company Arrangement from 31 January 2016 to 31 March 2016 whilst we work through resolving these issues. We will consider any future requests from the DOCA proponent for additional time to complete the conditions precedent.

On a more sombre note, we deeply regret to report that SOL Country Manager, George Niumataiwalu, passed away on 24 November 2015. George had committed tremendous energy and brought a sense of responsibility to resolving the complex issues of the Mt Kare project. We remain totally obligated to seeing the successful commissioning of the project to completion, notwithstanding the shocking loss of such a fine young man. Our thoughts and sympathies are with his family.

Yours faithfully

lndochine Mining Limited

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