Noricum Gold: "High impact work planned in year ahead"

By its very nature, exploration is challenging. To combat this, we apply layers of risk management to the development of all our projects. Firstly maintaining a portfolio of assets provides Noricum Gold with a degree of diversification, a pipeline of new opportunities and scope to prioritise capital allocation to maximise our resources. Secondly, all our projects are the subject of phased work programmes, focused on progressively de-risking each licence. Once secured each project undergoes a systematic reconnaissance exploration and resource definition as part of this de-risking programme. All historical data is collated and re-evaluated utilising the latest technologies and techniques to build an initial geological model. Based on this, geophysical and geochemical surveys are planned and undertaken to define the extent of any mineralisation and identify drill ready targets. Resource drilling is then employed to further define the depth extent of mineralisation identified by geological mapping, and surveys conducted as well as any historic assay results. Subject to the results the Company then looks to establish a Mineral Resource Estimate with which it can advance the project towards production either by itself or with a partner.

Our exploration activities during the year, which have successfully strengthened our understanding of targets identified on both our existing Rotgulden and Schonberg licences, demonstrate our strategy in practice. As a result of our findings, both our knowledge and development path were refined, leading to our Schonberg Gold Project being increasingly positioned at the centre of our 2014 programme. Specifically, drilling at the previously producing mine target located within the 100% owned Rotgulden Gold Project uncovered the complex nature of the mineralised structure related to the high level of multi-element grade variability intersected. Rotgulden’s regional potential remains highly prospective and considering the grades of up to 86.4 g/t Au and 1,011 g/t Ag received from rock chip sampling at the Altenberg prospect (located approximately 2km south from the previously producing target), we intend to act upon the authorisation granted to conduct a 2,500m surface diamond drilling programme in the future. To our advantage this remains valid until November 2018. As a result, having acquired the Walchen VMS Project, also in Austria, just recently, we believe our funds will be better deployed in this area in the near term.

With this in mind, we have now commenced field work at Walchen to build on the prospectivity highlighted by historic mining and exploration data while in tandem, further executing our acquisition strategy.

Schonberg Gold Project

Schonberg is a 37 sq km project centered on the towns of Knittelfeld and Flatschach and located in an historic copper mining district. Exploration has confirmed the presence of up to eight veins along a 3km strike and across the main mining districts within the licence area: Brunngraben, Weissenbachgraben and Adlitzgraben (from west to east). The former mining district of Tremmelberg is situated further east and it is thought to be the continuation of the ore bearing structures. Three of the known veins were the main focus of historical mining and are considered the main ore veins. The veins are sub-parallel, generally trending northeast and steeply dipping to the northwest.

Extensive soil sampling covering 2.5 km of strike formed the basis for our first 2,000m drill programme at the project. The results in traditional soil samples, where anomalism is often measured in the PPB range (parts per billion), have contained some very high grade results of up to 3.82 PPM (parts per million) of gold (‘Au’) and 8,640 ppm of copper (‘Cu’) (0.80%). With targets identified, drilling commenced in September 2014, initially at Weissenbachgraben.

Difficult ground conditions slowed our progress more than we would have liked. We reported that while drilling our first hole, the azimuth of the drill hole deviated by around 16 degrees and we therefore received a credit for this hole. Having rectified these problems, we drilled three further holes across Weissenbachgraben and Brunngraben and announced the results in March 2015.

Mineralisation was intersected by the final drill hole, BG2B which returned 2 metres at 2.26g/t Au, 2.8g/t Ag, 0.8% Cu from 129.5m. This includes half a metre at 5.29g/t Au, 2.87% Cu, and 0.35% Bi. While promising, these results also indicated that we need to better understand the mineralogy, which to date has been challenging to locate despite the high gold and copper grades we have reported from our extensive sampling programme, and we are currently conducting a study of our findings. With this in mind, we will not spend further money on drilling here until we have completed this review process.

Acquisition Strategy

The Company’s overall strategy for the past 12 months has been focused on progressing our existing projects as cost effectively and efficiently as possible while also working on a development pipeline of new projects. This development pipeline has included the pursuit of projects within Austria, such as Walchen, as well as work on several larger acquisitions including two significant near term production projects during 2014. Whilst these projects were deemed to be sufficiently attractive by the Board to justify the expenditure of Company resources, they were ultimately unable to be completed. One, due to a competitive tender process, and the other was hindered by local political and legal constraints. We believe that we are experiencing a period of opportunity within the precious and base metal sectors and as a result, we will continue to look to expand the Company by targeting acquisitions along with organic growth.

Financial Results

As an exploration and development company which has no revenue we are reporting a loss for the 12 months ended 31 December 2014 of £1,372,756 (2013: £493,639).

Included in the loss is an impairment charge of £762,124 (2013: £NIL) related to the Kliening, Goldeck and Goldzeche licence areas.

Kliening comprises 320 permits in an area approximately 100 kilometres east of Rotgulden. The Company considers Kliening to be a prospective target, however since initial investigations in 2011 it has been assigned a relatively lower priority compared to Rotgulden & Schonberg. As a result of this and constrained resources no further work has been conducted. As at 31 December 2014, all Kliening permits were valid and in good standing and this continues to apply as at the date of this Report.

As a result of the inactivity and in accordance with IFRS 6, the Board of Directors has resolved to fully impair the €763,000 (£615,124) carrying value of Kliening as at 31 December 2014.

Subsequent to year-end the Company determined not to renew its permits at Goldeck or Goldzeche. As such the Board of Directors has fully impaired the €183,000 (£147,000) collective carrying value of these two project areas.

The Group’s cash position at the end of the year was £863,801 and currently stands at £935,449, including €170,817 denominated in Euros.

Outlook

2015 looks positive for Noricum. Following a successful initial site visit to Walchen, work has now commenced on an extensive mapping, sampling and ground based geophysics programme, followed by drill targeting.

We have also identified some very exciting acquisition opportunities which have the scale to strengthen our portfolio considerably. Market updates will be provided if we choose to pursue them further.

I would like to take this opportunity to thank our shareholders for their support during this year which although challenging, has strengthened our resolve for exploration success in the future.