Avanco Resources : 2016 Annual Report 28 Mar 2017

Annual Report for the year ended 31 December 2016‌‌‌

Mr Colin Jones (Independent Non-Executive Director) Mr Anthony Polglase (Managing Director)

Mr Simon Mottram (Executive Director) Mr Luis Azevedo (Executive Director)

Mr Vernon Tidy (Independent Non-Executive Director) Mr Luiz Ferraz (Independent Non-Executive Director)

Mr Scott Funston

Suite 3

257 York Street

Subiaco, WA 6008

Telephone: +61 8 9324 1865

Facsimile: +61 8 9200 1850

Website: www.avancoresources.com

Automic Registry Services Level 2

267 St Georges Terrace Perth WA 6000 Australia

Telephone: + 61 8 9324 2099

Facsimile: + 61 8 9321 2337

Ernst & Young

11 Mounts Bay Road Perth WA 6000 Australia

The Company's securities are quoted

on the official list of the Australian Securities Exchange Limited, the home branch being Perth. ASX Code: AVB

The Directors of Avanco Resources Limited submit the Consolidated Financial Report for the year ended 31 December 2016.

The names, qualifications and experience of the Company's Directors in office during the period and until the date of this

report are as follows. Directors were in office for this entire period unless otherwise stated.

Non-Executive Chairman

Following Coal Mine certification with British Coal in South Wales Mr Jones completed a mining degree at Cardiff University in the UK.

After several years of mining contract management with Thyssens, Mr Jones joined Rio Tinto, becoming the General Manager of the South Crofty Tin Mine in Cornwall. In 1986 he became the Project Manager for the development of Rio Tinto's world class Copper Mine in Portugal where, following project completion, he became the Director of Production.

Mr Jones consulting expertise includes 10 years with Rio Tinto Technical Services where, as Principal Consultant, he consulted globally. Mr Jones was responsible for the underground development of the Fortaleza Nickel Mine in Brazil and was a core consultant for the underground development at the Palabora mine in South Africa.

An authority on underground mine development and the application of the block caving mining method, Mr Jones has consulted internationally as an independent consultant. Clients have included the multi-billion dollar Resolution (Arizona), Oyu Tolgoi (Mongolia) and Freeport (Indonesia) copper mine projects, Argyle Diamonds in Western Australia and a number of Brazilian mining companies, including Vale and Yamana Gold. Mr Jones is an independent consultant, has an MBA, speaks Portuguese and maintains a residence in Brazil. Mr Jones has not held any other listed directorships during the past three years.

Special Responsibilities: Member of the Audit Committee, Remuneration Committee and Nomination Committee.

Managing Director

With over 30 years multi-disciplined mining experience across ten different countries, Mr Polglase is qualified in mechanical and electrical engineering with an honours degree in Metallurgy from the Camborne School of Mines, UK and is fluent in Portuguese. Mr Polglase has acquired detailed knowledge relating to the development and operation of gold, copper, lead, zinc and tin projects and has either been responsible for or closely involved with the commissioning of more than seven mining projects. Project management including critical evaluation, implementation and commissioning are Mr Polglase's strengths. Mr Polglase has demonstrated the ability to successfully transition projects to full operations in the most challenging environments.

Mr Polglase was a Director of Harvest Minerals Limited (appointed 1 February 2012, resigned 26 June 2014) and Black Star Petroleum Limited (appointed 28 February 2013, resigned 4 July 2014). He has not held any other listed directorships during the past three years.

Special Responsibilities: Member of the Risk Management Committee and Nomination Committee.

Executive Director

Mr Mottram is a geologist with over 20 years' experience predominantly in iron oxide, copper, gold, nickel sulphide and precious metals. Having held senior management positions with a number of successful mining companies both in Australia and overseas, Mr Mottram has extensive knowledge in base and precious metal evaluations, and has seen a number of

Avanco Resources Limited 4 2016 Annual Report to Shareholders