TECHNICAL REPORT

ON THE

GOLD EXPLORATION POTENTIAL

AT THE

Nyamongo Gold Mine LTD Project, ( Licences ML 510/2014.ML 511/2014 ML 5122014)

TARIME DISRICT, NORTHERN

ON BEHALF OF

KERENDE GOLD EXPLORATION LTD SINGIDA P.O.BOX695 TANZANIA

Report for NI 43-101

Page Number

1.0 Title Page 1 2.0 Table of Contents 2 3.0 Summary 4 4.0 Introduction and Terms of Reference 5 5.0 Reliance on Other Experts 5 6.0 Property Description and Location 5 7.0 Accessibility, Climate, Local Resources, Infrastructure, and Physiography 10 8.0 History 13

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9.0 Geological Setting 14 10.0 Deposit Types 19 11.0 Mineralization 20 12.0 Exploration 21 13.0 Drilling 30 14.0 Sampling Method and Approach 30 15.0 Sample Preparation, Analysis, and Security 31 16.0 Data Verification 32 17.0 Adjacent Properties 33 18.0 Mineral Processing and Metallurgical Testing 35 19.0 Mineral Resource and Mineral Reserve Estimates 35 20.0 Other Relevant Data and Information 35 21.0 Interpretation and Conclusions 35 22.0 Recommendations 37 23.0 References 38 24.0 Date and Signature Page 39 25.0 Additional Requirements for Technical Reports on Development Properties and Production Properties 41

26.0 Illustrations 41

Figure Page Fig. 1 Tanzania, Southern Africa 6 Fig. 2 Tanzania 7 Fig. 3 Musoma-Mara Greenstone Belt 8 Fig. 4 Mrangi Claim Map 9 Fig. 5 Infrastructure Map 12 Fig. 6 Regional Geology 14 Fig. 7 Property Geology 16 Fig. 8 Property Geology 18 Fig. 9 Gold Soil Geochemistry 22 Fig. 10 Arsenic Soil Geochemistry 23 Fig. 11 Total Magnetic Field 24 Fig. 12 Rock Sample Results and Trench Locations 26

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Fig. 13 Section Trench TT1 27 Fig. 14 Section Trench TT2 28 Fig. 15 Section Trench TT3 29 Fig. 16 Plan Showing Mrangi and Phoenix Properties 34 Fig. 17 Geological Map Showing Mrangi and Phoenix Properties 35 Fig. 18 Photo Showing Style of Mineralization at an Outcrop 36

Consent of Author 42

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3.0 Summary

NYAMONGO.GOLD MINING LTD. (NYAMONGO.GOLD MINING or “Company”) is engaged in exploration of the Nyankuru Project Mining Licences (ML512/2014.ML511/2014.ML510/2014), located in the Musoma –Mara Greenstone Belt. These licences gives the Company 100% interest in the mineral rights underlying such licences. This belt hosts significant gold mining operations, including Barrick’s North Mara Mine (see section adjoining properties). The property is to the west of the North Mara Mine. It is locate100 kilometres south east of the town of Tarime. Exploration work completed in the NYAMONGO GOLD MINE property includes detailed and reconnaissance mapping, acquisition of magnetic and radiometric data, reconnaissance soil geochemistry. The first priority trenching targets include zones of high density and crosscutting magnetic features. Rock chip sampling has been undertaken on grass-root exploration targets.

The claims area covers the strongly silicified, faulted and sheared quartz gabbroic rock cut by numerous auriferous dark gray to white sugary-glassy quartz veins. Immediate sheared/faulted and brecciated hanging and foot walls of the quartz gabbroic rock are also locally mineralised and host impressive clusters of sulphides which were observed to be associated with the gold.

The NYAMONGO GOLD MINE property contains no mineral reserves or resources at this time. The geology of the property is very similar to that of Corp.’s North Mara Mine. Insufficient exploration has been completed to define a mineral resource and it is uncertain that further exploration will result in delineation of a resource. The potential of the property is conceptual and is based on the pervasive nature of the alteration and mineralization in the zones already tested. The gold is present throughout the rock types in the zones, not just in the quartz vein-lets and veins. The exploration potential of the property is also based on the strong possibility of other anomalies on the property.

5.0 Reliance on Other Experts

relied upon.N.G.M and their corporate counsel for information regarding the current status of legal title of the property, property agreements, corporate structure, permits and any outstanding environmental orders.

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N.G.M’s legal counsel in Tanzania completed due diligence on all the PML’s and mining licence described later in the report. Council is Ngassa Dindi, Lawcastles Law Offices, 6 th Flr., Nyerere Pension Tower, Bibi Titi Street, Morogoro Road, P.O. Box 78934, Dar es Salaam.

6.0 Property Description and Location

N.G.M has the Property (ML.510/2014.ML.511/2014.ML.512/2014), located in the Musoma Greenstone Belt, 20 kilometres south east of Tarime. It is 100 kilometres west of Lake Victoria, near the Kenyan Border. A 50 kilometre unpaved road connects Tarime with the N.G.M. Property.

Under Mining Act 2010, Primary Mining License (“PMLS”) are issued to eligible Tanzanian citizens. To encourage outside investment the act allows for 3 or more adjoining PML’s to be amalgamated to form one property, which can then be converted to a Mining Licence which is valid for 10 years and is renewable. This mining License can be owned by foreigners. The PMLs were granted by the Ministry of Energy and Minerals, The United Republic of Tanzania, Zonal Mines Office, Lake Victoria Zone, P.O. Box 1035, Mwanza.

They were subsequently consolidated into one company Nyamongo. Gold Mine Company which was approved by the Assistant Commissioner, Zonal Mine Office, Mwanza. 100 % of the shares of Nyamongo. Gold Mine Company were then acquired by KERENDE GOLD.EXPLORATION LTD. The recent changes Mining Acts Tanzania Investment Act of 1997 simplified regulation and protected investment. The country has been successful in attracting mineral exploration and investment and has triggered a 'gold rush' in the greenstone belts at the southern end of Lake Victoria. Exploration companies from Australia, Canada, South Africa, Sweden, and India have been very active in Tanzania, with excellent discovery rates over the past decade.

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Fig. 1, Tanzania, Southern Africa

Fig. 2, Northern Tanzania

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Fig. 3, Musoma –Mara Greenstone Belt (Regional Geology Hester 1990)

Fig. 4, Nyamongo Claim Map

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The 28.52 hectare Nyamongo. property (Figure 4) located in the , .

Ownership of minerals is vested in the state with traditional rights to certain building and industrial minerals retained with citizens. Mineral activities administered by the state can only be undertaken under an appropriate licence: reconnaissance, prospecting, or mining.

The Company has no surface rights at present, however as in other parts of the world the mineral rights come with rights to the surface as needed for exploration and exploitation of the minerals. The licence was map staked as required. There are no royalties or back in provisions.

At present there are no known environmental issues on the property, and there are no outstanding orders regarding reclamation.

7.0 Accessibility, Climate, Local Resources, Infrastructure and Physiography

The United Republic of Tanzania is comprised of three main physiographic regions, namely the Islands and the coastal plains to the east, the inland plateau, and the highlands. The Great Rift Valley runs from northeast Africa through central Tanzania is a striking feature that adds to the scenery of the country. Dar es Salaam is the commercial capital and major sea port for the mainland and it serves the neighbouring land-locked countries of Malawi, Zambia, Burundi, Rwanda, and Uganda, as well as eastern DR Congo. Because of its geographic advantages, the Dar es Salaam port presents itself as the gateway into East and Central Africa and this renders Tanzania as an attractive investment destination for investors. Improvements in the road and telecommunications systems are continuing countrywide, while Mwanza, on the southern shores of Lake Victoria, has become the regional mining centre of Lake Victoria Goldfields and is well serviced with daily flights. Lake Victoria is situated at 1,134 metres above sea level. Lake Victoria is the largest of all African lakes and is the second largest freshwater body in the world. Its extensive surface belongs to three countries, Uganda, Tanzania and Kenya.

The town of Tarime is the closest significant community Musoma about a 2 hour drive provides some flights to both Dar es Salaam and Mwanza. Mwanza provides several flights to Dar es Salaam and Nairobi, Kenya. The property area is about 20-kilometres south east of Tarime township and can be reached via a reasonably maintained dirt road from Tarine, some 50-kilometres.

Musoma is located in the Mara region which includes part of the Serengeti National Park to the east. The population of Musoma is approximately 40,000 with the population of the whole region being 3,000,000. As Musoma is located on the shores of Lake Victoria, there are ferries and transport barges to the ngalawa fishing boats. It is an agricultural

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area producing crops such as sisal, cotton, cassava, millet, potatoes, maize and coffee. Crops of mangoes, green leafy vegetables, avocadoes and bananas are all grown and marketed here. The way of life here, for most, is farming and cultural tourism programs. Unfortunately, the region is considered to be relatively poor and undeveloped.

The climate is tropically humid with alternating wet and dry seasons. The rainy season usually starts in November, with a short interruption near the end of December and can extend until May. The dry season usually starts at the end of May. The average rainfall in Musoma varies over the year with March to May receiving the most precipitation and June to September being substantially drier. The daytime temperatures in the dry season vary from approximately 22°-32° Celsius.

Topography of the licence area is hilly on the central part forming the most prominent landmass extending into Lake Victoria from the east with scattered stunted trees. Rainfall at the property averages 1,300 millimetres. Most of the black clayey soils are devoted to maize, rice paddies and cotton cultivation. Cassava plantation are predominant on reddish brown residual soils. The elevation is 1,300 metres above sea level. Streams in the area are generally intermittent, and eventually empty into Lake Victoria. Climatic conditions do not seriously restrict exploration programs in this area.

Power and water sources are in close proximity; the power at the North Mara Mine less than 10 kilometres, and water from wells or the Mara river. Man power can be obtained from the nearby villages at a reasonable salary scale.

Northwest Tanzania has a relatively low population with respect to the rest of the country and has a limited educated workforce. In general, unskilled workers are employed from the nearest village, Nyamongo, and surrounding communities. Skilled labour and professionals are sourced from major centres in Tanzania

The power line is 91 km long originating at Musoma, on the edge of Lake Victoria. There is cellular telephone coverage at the project site by all of Tanzania’s cellular telephone providers.

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Fig. 5, Infrastructure Map

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8.0 History

Tanzania Mining History

The earliest organized prospecting and mining in Tanzania took place during the German colonial period, beginning with gold discoveries in the Lake Victoria region in 1894 and mining began at the Sekenke Mine in 1909. After 1930, gold production was substantial and increased steadily until World War II. By 1967, the gold industry had declined to insignificance, only to revive after 1974-75 when the world gold price increased greatly. Beginning in April 1990, the Bank of Tanzania began buying gold at the world market price through commercial banks, paying miners in Tanzanian shillings calculated at the parallel-market rate for the US dollar rather than at the official rate.

Diamond mining which had been relatively minor prior to 1940 received a major boost with discovery of the Mwadui Mine in 1940.

Besides gold and diamonds, which have long been the mainstays of mineral production, mining of other commodities has been relatively modest, namely for copper, lead, phosphate, coal, kaolin and gemstones.

In the late 1980's, the government attempted to capture the revenues being generated from gem mining by licensing private companies to buy, cut and export gemstones being produced by small-scale miners. Coloured gemstones (excluding diamonds) are an increasingly important mineral product. In 1989, small miners produced about 10 tonnes of precious and semi-precious stones. Tanzania's most famous gem is tanzanite, a sapphire-coloured variety of zoisite discovered in 1967. Other important gemstones are ruby, sapphire, emerald, garnets and lesser quantities of zircon, tourmaline and other minerals.

In the late 1990's, several mining companies from Canada, United Kingdom, Australia and South Africa arrived in Tanzania, interested in gold exploration and development. From 2000, production of gold at an industrial scale is growing, especially from the Geita (AngloGold/Ashanti) and Bulyanhulu and North Mara (Barrick) mines.

Lake Victoria Greenstone Belt

Over the last 15 years, the Lake Victoria Goldfield of northern Tanzania has been recognized as a world-class gold province and two large mines are in production. For example, the Bulyanhulu deposit, drilled and developed by Sutton Resources was purchased by Barrick Gold in 1999. The Bulyanhulu mine was completed in 2001 and produced 242,575 ounces of gold at a cash cost of $197 per ounce in its first year. The Geita mine which is a joint venture between Ashanti Gold and Anglo Gold produces 545,000 ounces of gold per annum. Golden Pride owned by Resolute of Australia produces 216,000 ounces of gold per annum. The surge of interest in the Lake Victoria Goldfield has been stimulated by an economic and political climate hospitable to mining and business.

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The Company has rights to xx prospecting licences covering 1.26 square kilometres in the Lake Victoria Goldfield. Reconnaissance to advance exploration has been conducted on these licences using a variety of cutting edge techniques, including ground geophysics, satellite imagery, prospecting, geological mapping, geochemical soil sampling. Field work was supported by an extensive literature survey. Interpretive maps have been prepared using a variety of filtering and multivariate methods.

Prior to N.G.M. the only activity on this property was artisanal, and the Company has mapped and checked as many of these shallow workings that have been identified in the section on exploration. There was no identified historical data on this property. However a reason for selecting this property was the data available on the North Mara mine owned by Barrick that is within 10 kilometres of the Nyamongo Property. A description of the North Mara Mine is given in section 17, Adjacent Properties.

9.0 Geological Setting

Regional Geology

The Precambrian tectonic framework of Tanzania is comprised of an Archean block, the Tanzania Craton, surrounded by Proterozoic mobile belts (Figure 6). The Precambrian terranes have been disrupted episodically throughout the Phanerozoic by rifting, most recently in the Cenozoic with the development of the East African Rift System.

Fig. 6, Regional Geology - The Msoma-Mara greenstone belt The Archean Tanzania Craton consists largely of granitoids and belts of volcano- sedimentary rock (greenstones). The greenstone belts contain clastic debris of older granitic and gneissic basement and locally bound gneiss belts, which are demonstrably and geo-chronologically older. The Lake Victoria Goldfield (LVGF) occurs in a granite-

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greenstone terrain that extends from central Tanzania northward into south-western Kenya. The internal stratigraphy of the greenstone belts is reasonably consistent. At the base is an essentially mafic volcanic series, overlain by carbonaceous and pyritic sediments, tuffs, banded iron formation (BIF) and chert, and then by felsic volcanics. Metamorphism is generally only to greenschist grade, and many textures are retained. This sequence has been named the Nyanzian Group. The greenstone belts occur as lenses surrounded by granitoid rocks.

The Nyanzian Group is unconformably overlain by the Archean Kavirondian Group, which is composed of conglomerate, quartzite, argillite and pyroclastics. This group contains clasts of all Nyanzian lithologies, some apparently deformed. A major period of granitoid emplacement followed the Kavirondian, and was followed in turn by major tectonic deformation. Radiometric dates indicate an age of 2450-2500 Ma for these granitoids. Some granitoids may be post-tectonic, as indicated by lack of foliation. A great many hypabyssal intrusives cut these Archean sequences, including early felsic prophyries and lamprophyres. Abundant younger dikes are related to Mesozoic and Tertiary tectonic events. The Archean granitoid-greenstone belts of the Lake Victoria Goldfield are bordered to the west by the Proterozoic Ubendian mobile belt. The Ubendian Belt contains meta-sedimentary units not represented in the Archean, but some portions may be metamorphosed relics of the Archean sequences. The Ubendian rocks have undergone high-grade metamorphism and strong deformation. To the east, the Archean block is bordered by the Neoproterozoic Mozambique mobile belt. The rocks of these belts include marble and graphitic schists/gneisses, and are highly metamorphosed.

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At the end of the Proterozoic the entire region was effectively peneplained and then covered by a group of continental clastic sediments, the Bukoban system. Abundant mafic dikes cut the sequence and appear to have been essentially contemporaneous with sedimentation. Most of the Bukoban rocks have been removed by erosion, but a major outlier is present in the northwest part of Tanzania.

During the Mesozoic, sediments of the Karoo series were deposited in rift basins throughout eastern Tanzania. The oldest Karoo sequences are cut by a wide range of alkaline intrusives, including carbonatites, kimberlites and alkaline syenites. Tertiary sediments and volcanics overlie an erosion surface on the Mesozoic units. Subsequent formation of the Cenozoic rift valleys with their attendant sedimentation and alkalic volcanism has covered the Archaean and Proterozoic rocks in some areas. Thin lacustrine sediments of the early Lake Victoria locally overlie the northern and eastern end of the Lake Victoria Gold Fields.

Property Geology

Fig. 7, Property Geology HAVE WE GOT A PTOPER GEOLOGICAL MAP

 Incised terrain with well developed drainage pattern and excellent rock exposure – ideal for stream, rock and soil geochemistry.  Mineralised quartz gabbroic rock is traversed by irregular sets of quartz veins/stringers and shear fabric in some places is evident - thus geological mapping will be effective in defining mineralised corridors.  Based on working zones1-2, Mo, As, and Cu are associated with the gold mineralization.  Gold is fine-coarse. Superfine fraction techniques are effective.  Strong sulphides are associated with the quartz gabbroic rock hosted deposits- electrical testing will be an effective technique.  Obvious strong silicification associated with mineralisation – resistivity techniques will be effective.

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 Magnetic units were observed and ground magnetic survey as expected has defined both the mineralised structures and differentiated rock units.  Most workings have been sunk on 1 to 2m wide shear hosted quartz veins.  Plotting of the eleven major workings mapped show an alignment on approx ESE to E-W and NE-SW direction, matching the trend of the mineralisation in the Ihande workings all through to Barrick’s Nyamongo mega-pit. This trend has been examined along its length and region images examined, it apparent.

Fig. 8, Property Geology (larger scale) NEED SCALE and North arrow or perhaps a map with the zones on it

10.0 Deposit Types

Gold deposits/mineralization in terranes expressed by similar earth-sensing features (i.e. landsat, aeromagnetic and radiometric features) to those within which Musoma Gold fields are situated (such as Buhemba, Kiabakari, Ikungu and Phoenix) are of interest to Tanzania Mining. The Company is looking for repeats of lode gold deposits similar to gold deposits/occurrences which occur in fold hinge zones, steeply dipping limbs of asymmetric anticlines or forelimbs, tensional massive quartz veins and shear-foliated zones, which developed at zones of weakness along reactivated juxtaposed mafic rocks.

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The remobilized Musoma Greenstone Belt host the oldest gold mines in Tanzania, these are the Kiabakari, Buhemba, Ikungu and Phoenix (Mrangi). These deposits are shear hosted Archaean Greenstone type deposits similar to those of Canadian Shield.

The Buhemba and Nyasenero Gold Mines, about 2 kilometres apart, reportedly produced approximately 400,000 ounces of gold between 1927 and 1970 at an average grade of 12.6 g/t. This was published in the “Opportunities for Mineral Resource Development Tanzania” prepared for the Government of the United Republic of Tanzania and edited by Brian Hester, Denver, Colorado, USA. This information is considered to be pertinent but has not been validated by the author so should not be relied upon.

Gold mineralization at Kiabakari occurs in vertical tabular bodies within albitized amphibolites. A reported 284,335 ounces of gold was produced between 1959 and 1966 at an average grade of 6.1 g/t. A non-compliant historic resource is given in the table below reported by Harwood International Ltd., South Africa on behalf of Africa Ltd., to the Tanzanian Government dated July - October 2001. This resource was calculated based on all the old underground drill results, old surface exploration holes, and recent diamond drill holes. The report does not state when the calculation was made and does not comment on the category of the resource.

Cut-Off (g/t) Mtonnes Au g/t Contained Au Moz 1.5 6.3 3.6 0.75 2.0 4.7 4.1 0.64

This resource is stated to be down to the 150 metre level below surface. The author has been unable to examine the original data or obtain any further information so this resource should not be relied upon, but it is considered to be pertinent.

All resource estimates quoted herein are based on data and reports obtained and prepared by previous operators. This historic resource estimate is considered to be relevant, and is believed to be reliable based on the amount and quality of historic work completed. The Company has not completed the work necessary to independently verify the classification of the mineral resource estimates.

11.0 Mineralization

The claims area covers the strongly silicified, faulted and sheared quartz gabbroic rock cut by numerous auriferous dark gray to white sugary-glassy quartz veins. Immediate sheared/faulted and brecciated hanging and foot walls of the quartz gabbroic rock are also locally mineralised and host impressive clusters sulphides observed to be associated with gold.

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Impression from the field work is that auriferous quartz veins mentioned above near surface oxide has been the target at 11 workings zones. Primary mineralisation is likely widespread and has a signature of a world class deposit.

139 rock samples (5001-5140) were collected to determine the nature of mineralization and if the altered wall rocks are also auriferous. . Assays showed that gold mineralization is in both quartz veins and immediate altered wall rocks. The size of quartz veins and extent of mineralized zones referred to as Zone1_11 justify the claims could host significant gold potential.

 Gold mineralization within strongly altered wall rock.  Visible gold within irregularly fractured quartz veins, presumably high grade quartz veins.

12.0 Exploration

The first phase of a sampling program is completed at the Nyankuru Project, Tarime District. 139 rock samples (5001-5140) were collected to determine the nature of mineralization and if the altered wall rocks are also auriferous. . Assays showed that gold mineralization is in both quartz veins and immediate altered wall rocks. The size of quartz veins and extent of mineralized zones referred to as Zone1_11 justify the claims could host significant gold potential. The samples were taken from the THREE AND FOR. zones identified by artisanal mining.

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The tenements are situated hundreds of metres east and south of the famous Barrick’s North Mara Gold Mine ‐ Open Pits at Kewanja and Kerende villages, Nyamongo area, Tarime District, Northern Tanzania, QDS 6/3. The lease covers a total surface area of 1.26 sq km. Accessibility into the tenements is thoughout the year via the Musoma‐ Tarime tarmac road and an all weather Tarime‐Nyamongo gravel road.

Field Work and Terms of Reference

Fig. Xx, Nyamongo Clour Shaded TMI Ground Magetics

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From the above magnetic images the following are evident:

 Areas (NW and SE portions, West and East portions; Zone C, D and E) are characterized by low -moderate (33200 nT-33400 nT) magnetic relief with anomalies of vaguely defined strike directions and short strike extent which is typical of the magnetic expression of igneous rocks such as granodiorites, diorites, andesites and granites.  The Central area and a small portion in the NW corner are characterized by a SW-NE trending lineament with very low magnetic relief (<33200 nT) which is typical of the non-magnetic rocks such as quartz veins, quartz feldspar porphyry and quartzite. This low magnetic trend may also be a shear zone depending on its properties as some shear zones are preferentially more weathered than the surrounding rock and will give that SW-NE trending magnetic low (starts 3836600/670400 and goes in NE direction until its truncated by the interpreted BIF (magnetic high in NE corner of grid).  Area in the NE corner, of high magnetic relief (>33400 nT) showing structures of long strike extent trending NW-SE, are probably representative of the BIF (Zone A, B and F).  Possible fault/shear zones trending NE-SW are identified.  Possible geological contacts between rock units are demarcated on the colour shaded image.  Prospective mineralization is likely to be associated within the BIF and the contact zones between the BIF and country rock,  The interpreted shear/fault zones may also be associated with mineralization. One needs in-depth knowledge geological occurrence of gold in the area  Contact zones of greenstones with granitic units can be prospective for gold so interpreted granite contact would be of possible interest. Also from 3836800/671280 going to NW corner is a NW-SE trending zone-again depending on nature of shear zones (and known general directions of shear zones in this region) this could be an area of interest. This lineament is parallel to the interpreted BIF.

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Fig. Xx, Nyamongp TMI Grey Scale Image

Fig. Xx, Interpreted Nyamongo TMI Colour Scale Image

CONCLUSION & RECOMMENDATIONS

The ground magnetic survey method has proved adequate mapping and identification of different geological units in the area.

Based on the interpreted magnetic intensity maps the following is generally concluded:  Prospective mineralization is likely to be associated with quartz in shear zone and within the BIF and the contact zones between the BIF and country rock.  The Central area and a small portion in the NW corner are characterized by a SW‐NE trending lineament with very low magnetic relief (<33200 nT) which is typical of the

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non‐magnetic rocks such as quartz veins, quartz feldspar porphyry and quartzite. This low magnetic trend could also represent a shear zone.  Contact zones of greenstones with granitic units can be prospective for gold so interpreted granite contact would be of possible interest for follow exploration.  Areas (NW and SE portions, West and East portions) are characterized by low ‐ moderate (33200 nT‐33400 nT) magnetic relief with anomalies of vaguely defined strike directions and short strike extent which is typical of the magnetic expression of igneous rocks such as granodiorites, diorites, andesites and granites.  Faults are not evident probably because the grid is small.

13.0 Drilling

There has been no drilling carried out by KERENDE. GOLD.EXPLORATION LTD

14.0 Sampling Method and Approach

Rock chips taken from the Nyankuru were focussed on sampling the THREE.AND FORE. zones identified by the artisanal workings:

15.0 Sample Preparation, Analysis and Security

All samples are taken under the direction of a trained geologist employed by the Company. The samples were bagged sealed and logged. They are transported to the local compound and kept in a secure facility which is guarded 24/7 when samples are present. They are then shipped by a Company vehicle by Londoni personnel to the SGS laboratory in Mwanza, Tanzania.ref.SGS/SSF/0015099 26/12/10.sampls 150. Ref.SGS/SSF/0011929. 18/03/11.samples.26

Rock chip samples are dried in trays, crushed to a nominal 2mm (10mesh) using a jaw crusher and cone crusher, then approximately 1kg is split using a Jones type riffle. Reject sample is retained in the original bag. The split is pulverised in a chrome steel bowl to a nominal 75um. A sub-sample is taken for assay with the pulverised residual retained in a plastic bag. A 50g sample is fused with a litharge based flux then the prill is dissolved in aqua regia and determine gold by flame AAS at detection limit of 0.01ppm.

These samples will not be used in any resource calculation but standards and blanks were inserted and duplicate assays done for quality control. The laboratory used was SGS in Mwanza, Tanzania.

that KERENDE.GOLD.EXPLORATION.LTDused industry standard procedures for the sampling and believes it to be adequate.

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16.0 Data Verification

Property Examination

visited the property on February 16/17, 2011 and visits were made to several locations on the property to examine the geological setting and examine the artisanal open pits and shafts.

Samples were taken by on the site visit from several locations on the property and these were delivered to SGS in Mwanza, Tanzania.

The Following Samples were taken from the workings

Zone THREE AND FORE

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These results confirm that there is gold present in the mineralization and these assays compare favourably with the samples taken by the Company.

17.0 Adjacent Properties

African Barrick Gold PLC (“ABG”) North Mara Mine is located less than 10 kilometres to the east of the N.G.M. Property. The following, except figures has been copied from the ABG prospectus, March 2010.

Location, Access and Infrastructure

North Mara is located at approximately 1°28’ S and 34°31’ E in northwestern Tanzania, in the Tarime District of the Mara Region (Figure 2-8). North Mara is situated between Lake Victoria, roughly 100 km west, and the Serengeti National Park, roughly 00 km east. The Kenyan border is located approximately 00km north. North Mara is situated 00 km southeast of the town of Tarime and 210 km northeast of Mwanza, the main business hub of northern Tanzania.

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North Mara is accessible from the Tanzanian national road system. From Mwanza, North Mara is accessed by a paved road, the Sirari-Mbeya Highway, that follows along the edge of Lake Victoria east and northeast for approximately 270 km to the town of Tarime. From Tarime, an unpaved road turns east then south for approximately 50 km to the mine site. North Mara maintains this 50 km length from Tarime for year-round access. This ensures that delivery of fuel, reagents, consumables, and spare parts can be made year-round. Travel time by road from Mwanza to North Mara is typically four to five hours.

By air, ABG operates a regular flight service four days per week out of Dar es Salaam. The Dash 8 aircraft services ABG’s other mines and projects in western Tanzania and Mwanza. To access North Mara by air, ABG’s Dash 8 flies passengers to Mwanza, then, from Mwanza, ABG has chartered a Cessna 208 Caravan. North Mara maintains a 1,100 m long airstrip located seven kilometres from the processing plant and proximal to the Gokona open pit. Flight time from Dar es Salaam to Mwanza is approximately three hours depending on length of stopovers at the various projects. Flight time from Mwanza to North Mara is approximately one hour.

North Mara is a well-established mine site with the administration offices, mill, process plant, warehouses, laboratory and accommodation camps located within the security perimeter.

The Mara River is a perennial river and is the primary source of water for the mine. Water wells have been drilled by ABG for the nearby community. TANESCO, in partnership with ABG, has recently completed a 132 kV high voltage line to the mine and local community. The power line is 91 km long originating at Musoma, on the edge of Lake Victoria. Telephone, fax, and internet communication is available at the mine site via satellite transmission. There is also cellular telephone coverage at the mine site by all of Tanzania’s cellular telephone providers.

Fig. xx, Plan of Nyabirma Pit showing Geology prior to mining

Nyabirama Area

The Nyabirama open pit is hosted in southern domain rocks to the southwest of the Nyarwana fault. In this domain, the majority of mineralisation is hosted within altered granitoid (granodiorite, tonalite and gabbroic) rocks along a major Archean structural zone, the Mara Shear (Figure 2-10).

The Mara Shear Zone is a near-vertical feature striking northwesterly. It varies from a simple fault to anastomosing, braided zones of up to one kilometre in width. The structure is modestly sinuous, with slight strike and dip deflections associated with changes in country rock. These jogs are keys to the positioning of altered and mineralised zones along the Mara Shear. Dozens of artisanal workings, many currently active, are

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scattered along some 18 km of the Mara Shear’s strike length. Artisanal miners target narrow, discontinuous high-grade gold-bearing veins hosted within the Mara Shear zone . The Nyabirama deposit is localised in a segment of the Mara Shear where it tracks the contact between a gabbro and a tonalite intrusive unit. The contrasting rheology of these units was likely responsible for the formation of a set of splays with intervening link structures that formed a dilatant zone amenable to trapping mineralised hydrothermal fluids. Unmineralised dolerite dikes locally cut the Nyabirama stratigraphy and associated mineralisation. An albite-rich, calcite-bearing biotite-absent style of alteration is characteristic of Nyabirama and other prospects along the Mara Shear.

Nyabirama

A narrow zone of transitional oxide material composed of no more than 10 m to 20 m of saprolite overlies the top of fresh rock. Mineralisation extends up into the saprolite from the main gold-bearing lode structures within unweathered tonalite.

Disseminated gold mineralisation is hosted by pyrite associated with albitic alteration, while sericite alteration that lacks albitisation is not associated with significant mineralisation. Auriferous quartz veins with widths that range from a few millimetres to several metres occur within zones of sericitic and albitic alteration. Gold occurs as inclusions in disseminated pyrite, isolated disseminated grains within the silicate gangue, and minor gold-bearing quartz ± pyrite veinlets. Minor amounts of arsenopyrite, rutile, leucoxene, chlorite, and calcite also consistently occur in the albitic alteration assemblage.

The principal geochemical association in the Nyabirama mineralisation is gold-silver- arsenic-sulphur.

The following was publicly disclosed in the prospectus.

TABLE 2-24 NORTH MARA MINERAL RESOURCES AS OF 31ST DECEMBER 2009 African Barrick Gold plc – MER

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Grade Contained Au Category and Zone Tonnes (g/t Au) (oz) Measured Gokona 917,756 5.330 157,282 Nyabigena 366,382 3.606 42,482 Nyabirama 167,405 3.507 18,877 Total Measured 1,451,542 4.685 218,641

Indicated Gokona 1,103,790 4.298 152,516 Nyabigena 353,918 3.120 35,498 Nyabirama 3,838,871 2.497 308,153 Total Indicated 5,296,578 2.914 496,166

Total Measured and Indicated 6,748,120 3.295 714,807 Inferred Gokona 142,531 1.892 8,671 Nyabigena 15,978 3.323 1,707 Nyabirama 1,153,876 2.930 108,680 Total Inferred 1,312,384 2.822 119,057 Notes: 1. CIM definitions were followed for Mineral Resources. 2. Mineral Resources are exclusive of Mineral Reserves. 3. Mineral Resources are estimated using an average long term gold price of $900 per ounce.

TABLE 2-26 NORTH MARA MINERAL RESERVES AS OF 31ST DECEMBER 2009 African Barrick Gold plc – MER Grade Contained AU Category and Zone Tonnes (g/t Au) (oz) Proven Gokona 4,942,957 5.119 813,501 Nyabigena 1,393,441 2.955 132,406 Nyabirama 2,624,626 2.995 252,695 Stockpile 4,760,536 1.818 278,320 Total Proven 13,721,559 3.348 1,476,923

Probable Gokona 4,286,731 3.975 547,837 Nyabigena 570,824 2.974 54,581 Nyabirama 10,364,884 2.610 869,837 Total Probable 15,222,439 3.008 1,472,255

Total Proven and Probable 28,943,998 3.169 2,949,178

Notes: 1. CIM definitions were followed for Mineral Reserves.

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2. Mineral Reserves are estimated based on a break-even profitability value. 3. Mineral Reserves are estimated using an average long-term gold price of $825 per ounce.

18.0 Mineral Processing and Metallurgical Testing

There has been no metallurgical testing carried out on this property and the only processing was done on a very small scale by artisanal miners.

19.0 Mineral Resource and Mineral Reserve Estimates

There are no NI 43-101 compliant reserves or resources on this project.

20.0 Other Relevant Data and Information

There is no other relevant data and information.

21.0 Interpretation and Conclusions

The geology of the property is very similar to that of Barrick Gold Corp.’s North Mara Mine. Insufficient exploration has been completed to define a mineral resource and it is uncertain that further exploration will result in delineation of a resource. The potential of the property is conceptual and is based on the pervasive nature of the alteration and mineralization. The gold is present throughout the rock types in the zones not just in the quartz vein-lets and veins. The exploration potential of the property is also based on other anomalies on the property displaying similar geological properties as the one trenched hosting further mineralization of a similar nature.

The results of the field programs completed in the 2015 and 2016 indicate that sufficient mineralization is present to continue with early stage exploration to identify further targets for trenching followed up by shallow drilling. The program completed met its objectives by identifying that ground magnetics and artisanal workings can indicate trench targets that are likely to have mineralization present.

22.0 Recommendations

Geoffrey S. Carter, the Qualified Person preparing this Technical Report, believes that the character of this N.G.M. Project of sufficient merit to justify the following two stage

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program which would be completed over a six to eighteen month period, so that the potential resource can be better understood and defined.

All data should be incorporated into 3D modelling software. Sampling to date of the soil, rock chip, and channel samples has included an adequate number of check assays so that at this stage it is adequate.

1. An initial program of soil geochemistry doing an ICP suite on the -80# fraction (paying special attention to the Mo, As, Cu anomalies). 2. Follow up anomalies defined during phase 1 with detailed rock geochemistry using same techniques as above. 3. Trenching over soil anomalies and across workings. 4. Check out air photo coverage availability in Google. Use detailed govt produced topographical maps. 5. Review records of previous work held in Dodoma. 6. Define and undertake RC/DD drilling.

Phase 1

Shallow drilling of the known targets should then be carried out to determine the third dimension of the mineralized zones. Although diamond drilling would be necessary at some stage of the development of the property initially reverse circulation would be acceptable until the nature of the mineralized zones is better understood.

Geological Mapping US$80,000 Geophysics, Ground Magnetics US$40,000 Soil Geochemistry US$60,000 Trenching US$90,000 Data Interpretation US$35,000 Drilling 1,000 metres reverse circulation US$170,000

Total Phase 1 US$475,000

Phase 2 of the program is contingent upon the results of phase 1.

Phase 2

Trenching would continue to initially confirm the targets from the geochemical and magnetic surveys, followed up with both reverse circulation and diamond drilling

Trenching US$100,000 Data Interpretation US$50,000 Drilling 3,000 metres reverse circulation US$210,000

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Drilling 1,000 metres diamond US$200,000

Total Phase 2 US$510,000

Total Phase 1 and Phase 2 US885,000

23.0 References

Report on Ground Magnetic Survey Work, Nyamongo area, Tarime District, Mara Region, Northern Tanzania. Technical Report Prepared for ST Clair Mines, Singida – Tanzania. Report no JICL-010-15, 17th December 2010, JICL Consultants.

African Barrick Gold PCL, Prospectus March 2010.

Barth H., 1990. Provisional Geological Map of the Lake Victoria Gold fields, Tanzania, 1:500000 (with explanation notes)

Groves D.I., 2004. Gold Deposits in MetamorphicBelts; Overview of current understanding, outstanding problems, future research and exploration significance.

Groves D.I., 2004. Orogenic Gold Deposits in the Archaean Granite Greenstone Belts.

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