Tanami Gold NL : Quarterly Activities Report and Appendix 5B

FOR THE PERIOD ENDING 31 Dec 2016

CORPORATE

Cash and Cash Equivalents

As at 31 December 2016, the Company had cash of $ 5,710,576.

Joint Venture with Northern Star Resources Limited

As previously announced, the Company and Northern Star Resources Limited ("NST") have formed an unincorporated joint venture

("JV") to advance the Company's Central Tanami Project ("CTP").

In accordance with the JV, management of the exploration activities at the Company's CTP have been handed over to NST who will sole fund all JV expenditure including all CTP exploration and evaluation costs, assessment and development costs, mining of the JV tenements and refurbishing the CTP process plant and associated infrastructure, during the Sole Funding Period.

The Sole Funding Period will expire on the date on which the process plant at the CTP has been refurbished to operating condition and has operated for a continuous 30 day period or has produced 5,000 ounces of gold ore (whichever occurs first). On the expiry of the Sole Funding Period, NST will have earned a further 35% undivided interest in the CTP (taking NST's total JV Interest to 60%).

Northern Star Resources Limited Shares

As at 31 December 2016, the Company has 750,000 NST shares remaining.

EXPLORATION

Central Tanami Project (75% Tanami)

Worked completed by Northern Star Resources Limited ("NST") during the quarter consisted of:

• Ongoing evaluation of the Resource potential within the Central Tanami Project ("CTP") Mining Lease areas to identify

  extensions to the historic open pits and new exploration targets;

• Surface geology and regolith re-mapping interpretation of the CTP mine corridor including the commencement of a Depth of Cover study in conjunction with external consultants;

• Commencement of a regional tectono-stratigraphic study which includes detailed re-mapping of the CTP mine corridor/Groundrush domains with extensive use of multi-element geochemical analysis;

• Planning of regional and infill geochemical sampling programs; and

• Undertaking of an extensive CTP mine corridor environmental rehabilitation program (legacy drilling and infrastructure issues).

Commencement of planned drilling programs within the CTP mine corridor, in particular on the Hurricane-Repulse trend, is pending

completion of statutory approvals. CTP mine corridor and regional MMP's are under discussion with DIPR representatives.

FOR THE PERIOD ENDING 31 Dec 2016 Western Tanami Project (100% Tanami)

Thirty-three reverse circulation holes totaling 3,252m were completed at Rabid South and the Nugget Patch during November 2016 (Figure 1). Samples were taken as 3m composites, and intersects returning greater than 0.1 g/t will be resampled at 1m intervals. Although anomalous gold intercepts were returned, results were generally disappointing. Significant intercepts are listed in

Table 1 and a full list of the drill holes and locations are listed in Table 2.

At Rabid South, 3m composite samples with grades greater than 0.1g/t were intercepted both below and lateral from the July 2016 AC drilling sections, however individual mineralised veins do not appear to be vertically or laterally continuous. Composite samples have yet to be resampled on 1m intervals, however the current interpretation indicates a broad zone containing discontinuous and variably mineralised narrow quartz veins within coarse sandstone (Figure 2).

Controls on mineralisation at the Nugget Patch remain elusive. Very detailed surface geochemical mapping, also completed during the quarter, strongly supports a geological interpretation of a broad NW trending anti-form cut by a NW trending dextral fault zone. The fault zone is probably a splay of the regional Tanami Fault, and appears to displace outcropping quartz veins, dispersion of surface gold, and surface geochemical patterns (Figure 3). Of interest is the identification of a sheared and carbonate altered dolerite in fresh drill chips on the western part of the prospect. Although the dolerite is located vertically below some of the most abundant surface gold detected, only the southernmost section returned significant gold intersections (NPRC0013).

There was no indication at either Rabid South of the Nugget Patch of a surface depleted zone.

Table 1 Significant gold intercepts

(Coordinates and Azimuths are MGA94 zone 52 projection)

Prospect	Hole_ID	Easting	Northing	RL	Total Depth (m)	Azimuth (degrees)	Dip (degrees)	Best Au grade	From Depth (metres down hole)
NUGGET PATCH	NPRC0008	487360	7790840	416	90	90	-60	3m @ 0.55 g/t	87
	NPRC0011	487440	7790720	423	90	90	-60	3m @ 0.41 g/t	18
	NPRC0013	487320	7790720	424	126	90	-60	6m @ 0.37 g/t	99
								3m @ 0.28 g/t	111
	NPRC0015	487660	7790820	420	78	360	-60	3m @ 0.57 g/t	33
RABID SOUTH	RSRC0001	488540	7789800	429	132	90	-60	3m @ 1.95 g/t	3
	RSRC0002	488475	7789805	433	150	90	-60	3m @ 0.82 g/t	39
	RSRC0003	488417	7789801	424	132	90	-60	3m @ 1.82 g/t	45
								9m @ 0.58 g/t	81
	RSRC0007	488600	7789960	420	96	90	-60	15m @ 0.31 g/t	63
	RSRC0009	488520	7789840	425	78	90	-60	3m @ 1.91 g/t	18
	RSRC0010	488474	7789840	427	84	90	-60	3m @ 0.61 g/t	69
	RSRC0011	488440	7789840	427	84	90	-60	3m @ 0.34 g/t	51
	RSRC0012	488400	7789840	427	78	90	-60	3m @ 0.24 g/t	57
	RSRC0013	488480	7789760	427	126	90	-60	3m @ 1.17 g/t	3

FOR THE PERIOD ENDING 31 DECEMBER 2016

Figure 1 Rabid South and Nugget Path Drilling Locations

FOR THE PERIOD ENDING 31 DECEMBER 2016

Figure 2 Rabid South Plan showing drill hole traces