INV METALS INC.

TECHNICAL REPORT ON THE LOMA LARGA PROJECT, AZUAY PROVINCE, ECUADOR

NI 43-101 Report

Qualified Persons: Jason J. Cox, P.Eng. Kathleen Ann Altman, Ph.D., P.E. David M. Robson, P.Eng., M.B.A. Katharine Masun, M.Sc., P.Geo. Lindsay Robertson, M.Sc., P.Geo. Carlos A. Diaz, P.Eng.

August 29, 2016

RPA 55 University Ave. Suite 501 I Toronto, ON, Canada M5J 2H7 IT + 1 (416) 947 0907 www.rpacan.com

Report Control Form

Document Title Technical Report on the Loma Larga Project, Azuay Province, Ecuador

Client Name & Address INV Metals Inc. 55 University Ave, Suite 700 Toronto, Ontario M5J 2H7

Document Reference Status & FINAL Project #2612 Issue No. Version 0

Issue Date August 29, 2016

Lead Author Jason J. Cox (Signed) Kathleen Ann Altman (Signed) David M. Robson (Signed) Katharine Masun (Signed) Lindsay Robertson (Signed) Carlos A. Diaz (Signed)

Peer Reviewer Deborah McCombe (Signed)

Project Manager Approval Jason J. Cox (Signed)

Project Director Approval Deborah McCombe (Signed)

Report Distribution Name No. of Copies Client

RPA Filing 1 (project box)

Roscoe Postle Associates Inc. 55 University Avenue, Suite 501 Toronto, ON M5J 2H7 Canada Tel: +1 416 947 0907 Fax: +1 416 947 0395 [email protected]

www.rpacan.com

TABLE OF CONTENTS

PAGE

1 SUMMARY ...... 1-1 Executive Summary ...... 1-1 Economic Analysis ...... 1-10 Technical Summary ...... 1-19 2 INTRODUCTION ...... 2-1 3 RELIANCE ON OTHER EXPERTS ...... 3-1 4 PROPERTY DESCRIPTION AND LOCATION ...... 4-1 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ...... 5-1 6 HISTORY ...... 6-1 7 GEOLOGICAL SETTING AND MINERALIZATION ...... 7-1 Regional Geology ...... 7-1 Local and Property Geology...... 7-4 Mineralization ...... 7-6 8 DEPOSIT TYPES ...... 8-1 9 EXPLORATION ...... 9-1 10 DRILLING ...... 10-1 IAMGOLD Drilling ...... 10-1 INV Drilling ...... 10-1 11 SAMPLE PREPARATION, ANALYSES AND SECURITY ...... 11-1 Pre-2012 Programs ...... 11-1 INV 2013 Drill Program ...... 11-4 Results of QA/QC Programs ...... 11-6 Recommendations and Enhancements to QA/QC Program ...... 11-36 12 DATA VERIFICATION ...... 12-1 13 MINERAL PROCESSING AND METALLURGICAL TESTING ...... 13-1 Metallurgical Testing Programs ...... 13-1 Process Development and Flowsheet Design ...... 13-7 14 MINERAL RESOURCE ESTIMATE ...... 14-1 Summary ...... 14-1 Mineral Resource Database ...... 14-2 Geological Interpretation and 3D Solid ...... 14-3 Statistical Analysis ...... 14-10 Capping High Grade Values ...... 14-12 Compositing ...... 14-16 Density ...... 14-19

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NSR Cut-off Value ...... 14-22 Variography and Interpolation Values ...... 14-24 Block Model ...... 14-26 Block Model Validation ...... 14-28 Classification ...... 14-36 Summary of Mineral Resource Estimate ...... 14-36 15 MINERAL RESERVE ESTIMATE ...... 15-1 Dilution and Extraction ...... 15-1 Cut-Off Grade Calculation ...... 15-3 Gold Equivalent Calculations ...... 15-4 16 MINING METHODS ...... 16-1 Introduction ...... 16-1 Mining Methods ...... 16-3 Geotechnical Considerations ...... 16-6 Underground Mine Development ...... 16-14 Production Schedule ...... 16-18 Mine Equipment ...... 16-24 Underground Mine Services...... 16-25 Underground Mine Facilities ...... 16-33 17 RECOVERY METHODS ...... 17-1 18 PROJECT INFRASTRUCTURE ...... 18-1 Summary ...... 18-1 Transmission Line ...... 18-3 Roads ...... 18-3 Buildings ...... 18-4 Communications ...... 18-4 Tailings Dry Stack Facility ...... 18-4 Waste Rock ...... 18-7 Water and Other Liquid Effluent Handling ...... 18-7 Contact Water Treatment Plant ...... 18-9 19 MARKET STUDIES AND CONTRACTS ...... 19-1 Markets ...... 19-1 Contracts ...... 19-2 20 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT ...... 20-1 Introduction ...... 20-1 Project Permitting ...... 20-2 Environmental Studies ...... 20-6 Social or Community Requirements ...... 20-21 Mine Closure Requirements ...... 20-29 21 CAPITAL AND OPERATING COSTS ...... 21-1 Capital Costs ...... 21-1 Operating Costs ...... 21-7

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22 ECONOMIC ANALYSIS...... 22-1 23 ADJACENT PROPERTIES ...... 23-1 24 OTHER RELEVANT DATA AND INFORMATION ...... 24-1 Execution Plan ...... 24-1 25 INTERPRETATION AND CONCLUSIONS ...... 25-1 26 RECOMMENDATIONS...... 26-1 27 REFERENCES ...... 27-1 28 DATE AND SIGNATURE PAGE ...... 28-1 29 CERTIFICATE OF QUALIFIED PERSONS ...... 29-1

LIST OF TABLES

PAGE Table 1-1 Budget to Advance to Feasibility Study ...... 1-9 Table 1-2 Cash Flow Summary...... 1-12 Table 1-3 Summary of Cash Flow ...... 1-15 Table 1-4 Sensitivity Analyses ...... 1-17 Table 1-5 Project Execution Milestones and Schedule ...... 1-18 Table 1-6 Mineral Resource Estimate Summary - June 30, 2016 ...... 1-24 Table 1-7 Probable Mineral Reserves – June 30, 2016 ...... 1-25 Table 1-8 Initial Capital Cost Summary ...... 1-32 Table 1-9 Loma Larga Operating Costs ...... 1-32 Table 4-1 Loma Larga Concessions ...... 4-2 Table 4-2 Original IAMGOLD Mining Concessions ...... 4-3 Table 4-3 Property Size for Advanced Exploration Stage ...... 4-4 Table 4-4 Current Surface Rights Agreements ...... 4-5 Table 10-1 Metallurgical and High Grade Zone Drill Results ...... 10-2 Table 10-2 Regional Drill Results ...... 10-4 Table 11-1 QA/QC Review Summary - 2002-2008 ...... 11-7 Table 11-2 CRMs Used in 2002-2008 ...... 11-7 Table 11-3 2013 Drilling Program ...... 11-10 Table 11-4 QA/QC Review Summary – 2013 Drilling Program ...... 11-10 Table 11-5 CRMs Used in 2013 drilling Program ...... 11-12 Table 11-6 Summary of CRM Results...... 11-13 Table 11-7 Summary of Field Duplicate Results ...... 11-21 Table 11-8 Summary of Reject Duplicate Results ...... 11-25 Table 11-9 Summary of Pulp Duplicate Results ...... 11-29 Table 11-10 Summary of Pulp Replicate Results ...... 11-33 Table 12-1 Drill Hole Collar Elevation Errors ...... 12-2 Table 13-1 Process Design Criteria ...... 13-7 Table 14-1 Mineral Resource Estimate Summary - June 30, 2016 ...... 14-1 Table 14-2 Mineral Resource Database ...... 14-3 Table 14-3 Rock Codes ...... 14-4 Table 14-4 Descriptive Statistics of Resource Assay Values ...... 14-10 Table 14-5 Capped Grade Values of Resource Assays ...... 14-12

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Table 14-6 Descriptive Statistics of Resource Capped Assay Values ...... 14-15 Table 14-7 Descriptive Statistics of Capped Resource Composite Values ...... 14-17 Table 14-8 Descriptive Statistics of Resource Density Samples ...... 14-20 Table 14-9 Descriptive Statistics of Composited Density Samples ...... 14-22 Table 14-10 Cut-off Value Assumptions ...... 14-22 Table 14-11 Block Estimate Estimation Parameters ...... 14-25 Table 14-12 Block Model Dimensions ...... 14-27 Table 14-13 Block Model Field Descriptions ...... 14-27 Table 14-14 Comparison of Gold Grade Statistics for Assays, Composites and Resource Blocks ...... 14-29 Table 14-15 Mineral Resource Estimate – June 30, 2016 ...... 14-37 Table 15-1 Probable Mineral Reserves – June 30, 2016 ...... 15-1 Table 15-2 Dilution Details ...... 15-2 Table 15-3 Cut-off Grade Estimate ...... 15-3 Table 15-4 Gold Equivalent Calculation ...... 15-5 Table 16-1 Underground Development Profiles ...... 16-15 Table 16-2 Development Equipment Productivities ...... 16-20 Table 16-3 Heading Productivities ...... 16-21 Table 16-4 Reserve Schedule Results - Ramp-up Period ...... 16-22 Table 16-5 LOM Schedule Ore Production ...... 16-23 Table 16-6 Mobile Equipment Fleet ...... 16-25 Table 16-7 Potential Binder Content ...... 16-28 Table 16-8 Design Criteria for Paste Fill Plant ...... 16-29 Table 16-9 Dewatering Requirements ...... 16-33 Table 18-1 TDSF Phases ...... 18-6 Table 19-1 Smelting and Refining Terms ...... 19-2 Table 20-1 Permit Requirements ...... 20-4 Table 20-2 Summary of Baseline Studies ...... 20-7 Table 20-3 Climate and Hydrometeorological Station Summary ...... 20-8 Table 20-4 Surface Water Select Parameter Average Concentrations ...... 20-14 Table 20-5 Select Groundwater Monitoring Results ...... 20-16 Table 20-6 Socio-Economic Data Collection Sampling Locations ...... 20-24 Table 20-7 Key Elements of Social Management Policies and Procedures ...... 20-29 Table 21-1 Initial Capital Cost Summary ...... 21-2 Table 21-2 Mine Capital Cost Summary ...... 21-2 Table 21-3 Mine Mobile Equipment ...... 21-3 Table 21-4 Process Plant Capital ...... 21-4 Table 21-5 Infrastructure and Tailings Capital...... 21-5 Table 21-6 Contingency ...... 21-6 Table 21-7 Estimated Sustaining Capital Costs ...... 21-7 Table 21-8 Loma Larga Operating Costs ...... 21-8 Table 21-9 Employees ...... 21-8 Table 21-10 Total Manpower ...... 21-9 Table 21-11 Mining Operating Unit Costs ...... 21-11 Table 21-12 Summary of Process Operating Costs ...... 21-11 Table 21-13 G&A Operating Unit Costs ...... 21-12 Table 22-1 Cash Flow Summary ...... 22-3 Table 22-2 Summary of Cash Flow ...... 22-6 Table 22-3 Sensitivity Analyses ...... 22-8 Table 24-1 Project Execution Milestones and Schedule ...... 24-2 Table 24-2 Project Execution Schedule for Testing and Studies ...... 24-5 Table 24-3 Project Execution Schedule for Environmental Permitting ...... 24-7

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Table 24-4 Project Execution Schedule Detailed Design ...... 24-8 Table 24-5 Long Lead Procurement Schedule ...... 24-8 Table 24-6 Key Construction Milestones ...... 24-9 Table 26-1 Budget to Advance to Feasibility Study ...... 26-5

LIST OF FIGURES

PAGE Figure 1-1 Sensitivity Analysis ...... 1-16 Figure 4-1 Location Map ...... 4-7 Figure 4-2 Location of the Loma Larga Concessions ...... 4-8 Figure 4-3 Location of the Concessions Relative to the Yanuncay-Irquis, and El Chorro Forestry Reserve ...... 4-9 Figure 7-1 Major Terranes Of Ecuador ...... 7-2 Figure 7-2 Regional Geology ...... 7-3 Figure 7-3 Property Geology ...... 7-5 Figure 7-4 Cross Section of the Loma Larga Deposit, Looking Northeast ...... 7-8 Figure 7-5 Longitudinal Section of the Loma Larga Deposit, Looking West ...... 7-9 Figure 8-1 Zonation of Alteration in a High Sulphidation Deposit ...... 8-3 Figure 8-2 Schematic Section of a High Sulphidation Deposit ...... 8-4 Figure 10-1 Location of INV 2013 Drill Holes ...... 10-3 Figure 10-2 Gold Grades Intersected in Drill Holes LLD-367 and LLD-368 ...... 10-6 Figure 11-1 Gold Control Chart: CRM SG14 ...... 11-14 Figure 11-2 Gold Control Chart: CRM SI15 ...... 11-15 Figure 11-3 Gold Control Chart: CRM SN16 ...... 11-16 Figure 11-4 Silver Control Chart: CRM SG14 ...... 11-17 Figure 11-5 Silver Control Chart: CRM SI15 ...... 11-18 Figure 11-6 Silver Control Chart: CRM SN16...... 11-19 Figure 11-7 Gold Field Duplicate Scatterplot...... 11-22 Figure 11-8 Silver Field Duplicate Scatterplot ...... 11-23 Figure 11-9 Copper Field Duplicate Scatterplot ...... 11-24 Figure 11-10 Gold Reject Duplicate Scatterplot ...... 11-26 Figure 11-11 Silver Reject Duplicate Scatterplot ...... 11-27 Figure 11-12 Copper Reject Duplicate Scatterplot ...... 11-28 Figure 11-13 Gold Pulp Duplicate Scatterplot ...... 11-30 Figure 11-14 Silver Pulp Duplicate Scatterplot ...... 11-31 Figure 11-15 Copper Pulp Duplicate Scatterplot ...... 11-32 Figure 11-16 Gold Pulp Replicate Scatterplot ...... 11-34 Figure 11-17 Silver Pulp Replicate Scatterplot ...... 11-35 Figure 11-18 Copper Pulp Replicate Scatterplot ...... 11-36 Figure 13-1 2013 Metallurgical Sample Locations ...... 13-2 Figure 14-1 2016 Wireframe Domains in Plan view (3600M Level) ...... 14-7 Figure 14-2 Plan View of 2016 vs. 2012 Low Grade Wireframe Model Domains (3615M Level) ...... 14-8 Figure 14-3 3D Isometric Views of 2016 0.8 g/t Au and 3.0 g/t Au Domains Looking Northeast ...... 14-9 Figure 14-4 3D Isometric Views of 2016 0.8 g/t Au and 3.0 g/t Au Domains Looking West ...... 14-9 Figure 14-5 Histogram of Resource Assays ...... 14-13

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Figure 14-6 Cumulative Frequency – Log Probability Plot of Resource Assays ...... 14-14 Figure 14-7 Histogram of Resource Density Samples ...... 14-20 Figure 14-8 Box Plot of Resource Density Samples by Domain ...... 14-21 Figure 14-9 Gold Composites and Blocks on 3600 m Level ...... 14-31 Figure 14-10 Silver Composites and Blocks on 3600 m Level ...... 14-32 Figure 14-11 Copper Composites and Blocks on 3600 m Level ...... 14-33 Figure 14-12 High Grade Main Zone Trend Plot of Capped Gold Assays versus Block Grades ...... 14-34 Figure 14-13 Low Grade Main Zone Trend Plot of Capped Gold Assays versus Block Grades ...... 14-35 Figure 16-1 3D View of Mine ...... 16-2 Figure 16-2 Typical Ground Support in Unsilicified Zone ...... 16-10 Figure 16-3 Underground Drift Profile ...... 16-16 Figure 17-1 Process Flow Sheet ...... 17-5 Figure 18-1 Site Layout ...... 18-2 Figure 18-2 Tailings Dry Stack Facility Area ...... 18-5 Figure 20-1 Flow Monitoring Stations and Sub-catchments ...... 20-12 Figure 20-2 Map of Concessions and Local Communities ...... 20-25 Figure 22-1 Sensitivity Analysis ...... 22-7

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1 SUMMARY

EXECUTIVE SUMMARY

Roscoe Postle Associates Inc. (RPA), Samuel Engineering Inc. (Samuel Engineering), and Klohn Crippen Berger Ltd. (KCB) were retained by INV Metals Inc. (INV) to prepare a Pre- Feasibility Study (PFS or the Study) for the Loma Larga Project (the Project), located in Ecuador. The purpose of this report is to disclose the results of the PFS. This Technical Report conforms to NI 43-101 Standards of Disclosure for Mineral Projects. RPA, KCB, and Samuel Engineering carried out a site visit from February 17 to 20, 2014.

INV is a Canadian company headquartered in Toronto, with exploration properties located in Ecuador and Namibia. On November 14, 2012, INV acquired 100% of the Loma Larga Project from IAMGOLD Corporation (IAMGOLD). INV is listed on the Toronto Stock Exchange under the symbol INV.

The Project is located 30 km southwest of the city of Cuenca (Ecuador’s third largest city), and consists of three mining concessions covering an area of approximately 8,000 hectares (ha). The Loma Larga deposit comprises a relatively flat-lying, north-south elongated high grade core enclosed by a larger, undulating low grade halo, dipping gently to the west and south, with the top of the deposit varying from approximately 110 m to 175 m below surface. The low grade halo is approximately 1,600 m long (north-south), 120 m to 400 m wide (east-west) and averages 50 m to 60 m thick.

The PFS envisions underground mining of the High Grade Main Zone by a combination of longhole stoping and drift and fill. The deposit will be accessed using a ramp and mining will be carried out by mechanized equipment at a rate of 3,000 tonnes per day (tpd) ore. Ore will be processed by sequential flotation to produce a pyrite concentrate that contains payable gold and silver, and a copper concentrate that contains payable copper, gold and silver, which will be sold to world markets. The Life of Mine (LOM) Plan estimates 12 years of production, with a one year ramp-up period, nine years producing at the design capacity of 1,050 kilotonnes per year (ktpa), and two years of reduced throughput at the end of the mine life. Excluding Year 12, the resulting concentrates contain an average of 150,000 ounces of gold per year.

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There is currently only minimal infrastructure at the Project, including a small camp, several man-made water ponds/reservoirs, and a north-south access road.

In 2015, RPA completed a PFS describing a 1,000 tpd production scenario that complied with Ecuadorian legislation for medium-scale mines. Subsequent changes and clarifications in the laws governing mining in Ecuador support the improved large-scale scenario described in this Technical Report, which is more suitable for the size and quality of the deposit.

CONCLUSIONS GENERAL The Study results indicate that the Project should proceed to the feasibility stage, including further data collection and analysis to verify the Project’s technical, financial, social, environmental, and political acceptability and viability.

Specific conclusions by area are detailed below.

GEOLOGY AND MINERAL RESOURCES • Loma Larga is a high sulphidation polymetallic epithermal deposit containing significant values of gold, silver, and copper.

• The Loma Larga deposit is a stratigraphically controlled, flat lying, gently westward- dipping, north-south striking, cigar-shaped body. It also dips slightly to the north, such that the mineralized zone is closer to surface at the south end.

• The results of the Quality Control (QC) samples, together with the Quality Assurance/Quality Control (QA/QC) procedures implemented by INV at Loma Larga, provide adequate confidence in the data collection and processing, and the assay data is suitable for Mineral Resource estimation.

• Understanding of the Project geology and mineralization, together with the deposit type, is sufficiently well established to support Mineral Resource and Mineral Reserve estimation.

• Block grade interpolation was carried out using Ordinary Kriging (OK) for gold, silver, and copper and the Inverse Distance Squared (ID2) weighting for density. A 3.0 g/t Au wireframe model (High Grade Zone) and a 0.8 g/t Au wireframe model (Low Grade Zone) were used to constrain the grade and density interpolations.

• A Net Smelter Return (NSR) cut-off value of US$60/t is appropriate for reporting current Mineral Resources for the Project, which is based on the current production scenario.

• Mineral Resources are estimated in four zones: the High Grade Main Zone, which is classified as an Indicated Mineral Resource, the Low Grade Main Zone, which contains

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both Indicated and Inferred Mineral Resources, and the High Grade Upper Zone and Low Grade Lower Zone, which are classified as Inferred Mineral Resources.

• At a US$60/t NSR cut-off value, Indicated Mineral Resources are estimated to be 17.9 million tonnes (Mt) grading 4.42 g/t Au, 28.3 g/t Ag, and 0.26% Cu. Inferred Mineral Resources are estimated to be 7.3 Mt grading 2.29 g/t Au, 24.1 g/t Ag, and 0.13% Cu.

• Definitions for resource categories used in this report are consistent with those defined by Canadian Institute of Mining, Metallurgy and Petroleum (CIM, 2014) and incorporated by reference in NI 43-101.

MINING AND MINERAL RESERVES • The Loma Larga deposit will be accessed using a ramp on the northeastern side of the deposit. Levels and accesses have been designed within the low grade mineralization, taking advantage of better ground conditions and limiting the amount of waste development.

• At a cut-off grade of 2 g/t Au, Probable Mineral Reserves are estimated to be 11.6 Mt grading 4.98 g/t Au, 28 g/t Ag, and 0.29% Cu. This Mineral Reserve is contained in the High Grade Main Zone only.

• Mining will be carried out by mechanized equipment, working three eight-hour shifts per day to produce 3,000 tpd ore, over a 12 year mine life.

• The high grades of the Loma Larga deposit justify a “maximum extraction” approach with no pillars, through the use of cemented paste backfill. Unconsolidated waste will be used as backfill where it does not affect extraction.

• The rock mass quality of the host rock is variable from Good to Very Poor. Areas of poor ground conditions will require additional ground support above standard bolting and screening. The rock mass quality of the silicified High Grade Main Zone (classified as Good, and generally of better quality than the host rock), will allow mining via longhole stoping. High grade areas too small to mine using longhole stoping will be extracted with drift and fill mining. In the upper levels of the High Grade Main Zone, ground support requirements for development headings and stopes will increase as they near the host rock.

• Definitions for reserve categories used in this report are consistent with those defined by CIM (2014) as incorporated by reference in NI 43-101.

METALLURGY, PROCESS, AND INFRASTRUCTURE • The recent metallurgical testwork data established that sequential flotation to produce pyrite concentrate that contains gold and silver, and copper concentrate that contains gold and silver, is viable.

• The processing design selected for Loma Larga includes well known, proven technology that has been used successfully by the mining industry for many years.

• The Loma Larga ore contains high gold and silver grades, along with significant associated concentrations of arsenic. The arsenic will be concentrated in the copper

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concentrate, with associated impurity penalties. It is noted that initial indications were received from metal traders and smelters that despite the high arsenic, the proposed copper concentrate is a saleable product. Also of note, the copper concentrate accounts for approximately 9% of the revenue stream for the Project. .

• The site is located close to existing infrastructure (approximately 30 km from a major centre). To develop the project, a new access road and transmission line will be required.

ENVIRONMENTAL CONSIDERATIONS • INV has been monitoring surface water flow and quality in the Loma Larga Project area watersheds since 2005 and good baseline data has been collected. INV will continue surface water monitoring in accordance with their environmental permits for exploration and as the Project develops.

• The main Project infrastructure is located in the sub-catchments which drain towards the Pacific Ocean and away from the city of Cuenca.

• Environmental challenges associated with acid rock drainage and water management, while manageable, require diligent attention and study in order to effectively mitigate the risks. Design of the Project infrastructure has taken this need into account utilizing international leading environmental management practices to limit the influence of the Project on environmental features, such as water, wildlife, and vegetation.

• Environmental stewardship continues to be a priority for INV in its ongoing work with local communities.

SOCIAL AND POLITICAL CONSIDERATIONS • INV is building on a long history of constructive social engagement started by the previous owner IAMGOLD.

• A detailed socio-economic baseline study for the direct and indirect areas of influence of the Project was completed in 2010.

• Consultation efforts have been ongoing, with a significant public information campaign to increase understanding of mining activities as they relate to the Project. Complementing the consultation activities are small scale community development projects, designed and executed in partnership with local communities.

• There have been recent changes and clarifications in the mining and tax laws and regulations in Ecuador. The mining sector is developing within Ecuador as few international companies have successfully developed mining projects in the country.

ECONOMIC ANALYSIS • At a base case gold price of US$1,250/oz, the undiscounted pre-tax cash flow totals US$772 million over the mine life, and simple payback occurs after 2.1 years.

• The pre-tax Internal Rate of Return (IRR) is 35.7% and the pre-tax Net Present Values (NPV) are:

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o US$490 million at a 5% discount rate. o US$391 million at a 7.5% discount rate. o US$312 million at a 10% discount rate.

• On an after-tax basis, the undiscounted cash flow totals US$496 million over the mine life, and simple payback occurs after 2.7 years.

• The after-tax IRR is 26.3% and the after-tax NPVs are:

o US$301 million at a 5% discount rate. o US$232 million at a 7.5% discount rate. o US$178 million at a 10% discount rate.

RECOMMENDATIONS RPA recommends that INV carry out field programs and analysis in order to collect sufficient data to complete a Feasibility Study. The studies and data needed include the following.

• Complete a metallurgical testwork program that is designed to refine the processing technology for Loma Larga ore, to optimize the process, and to evaluate the variability in the metallurgical response for the various ore types.

• Complete geotechnical studies and evaluations:

o Confirm ground support requirements for the underground mine and optimum ramp location.

o Confirm the suitability and design requirements for the selected sites for the Tailings Dry Stack Facility (TDSF), waste and ore stockpile, processing facilities, and infrastructure and conduct a site specific hazard assessment for these locations.

• Complete hydrogeological studies in order to understand the impact of groundwater on the underground mine and the dewatering and ground support requirements.

• Complete hydrological studies in order to fully understand the water flow rates and to assess the water management and water treatment requirements for the Loma Larga site.

• Complete additional environmental baseline studies including supplementary terrestrial and aquatic flora and fauna surveys, soils, sediment, and hydrogeology and testing such as geochemical and water analyses in order to support with a high degree of confidence that the activities associated with the mine development can be carried out in a manner that will not degrade the environment.

• Conduct testing required to design a paste backfill process that will provide geo- technically competent support for the underground mine and provide the data needed to complete accurate estimates for the capital and operating costs.

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In addition to the data collection mentioned above, the authors have the following recommendations, divided among the relevant areas of this Study.

GEOLOGY AND MINERAL RESOURCES • In advancing the Project, consider the following:

o A drill hole spacing analysis to support upgrading areas of the High Grade Main Zone to Measured Mineral Resources.

o Additional drilling in the High Grade Upper Zone and Low Grade Lower Zones in order to upgrade the Mineral Resources from Inferred to Indicated.

• Procure reference standards with grades that better reflect the range of gold grades within the Mineral Resource (i.e., 5 g/t Au to greater than 30 g/t Au). RPA further recommends that INV obtain an analytical standard for silver and another for copper that reflect the average grades expected in the deposit, in order to quantify the accuracy of analyses.

• For additional confidence in the analytical method for high grade assays, conduct confirmatory metallic sieve fire assays on some representative intervals of high grade zones, and/or intervals containing visible gold.

• Check half core duplicate analyses using core from the existing core library, to ensure that the current practice of quarter-core analysis is accurate.

• Resurvey drill hole collars that deviated more than one metre above or below the topographic surface.

• Silicification is strongly associated with mineralization and influences mine design. INV geologists completed a silicification wireframe, which RPA utilized for mine planning purposes. It is recommended that this silicification wireframe model be incorporated into the Resource block model.

MINING AND MINERAL RESERVES • Complete trade-off studies to select the optimum designs for the Project including:

o An update of the material handling options for transporting ore to the plant, tailings to the TDSF, and tailings to the paste backfill plant. Conveying, surface trucks and underground trucks have been considered.

o Access via a second ramp to surface for emergency egress (and more efficient haulage), versus the PFS design of a single ramp and raise systems for emergency egress.

o Alimak versus raiseboring methods for driving raises, impacted by availability of equipment and experienced personnel.

o Study the impacts of implementing a ventilation-on-demand (VOD) system at the mine.

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METALLURGY, PROCESS, AND INFRASTRUCTURE • Complete trade-off studies to select the optimum processes and designs for the Project including:

o Evaluate the tailings production and deposition methods including paste tailings versus filtered tailings.

o Compare paste backfill processes using alternative types of tailings such as paste tailings, and filtered tailings. Consider pumping tailings to the plant instead of transporting filtered tailings and re-pulping them at the paste backfill plant.

o Evaluate the optimum mine life by considering the benefits of processing low grade ore versus the possible additional costs that may be associated with doing so.

o Evaluate the optimum flotation concentrate regrind sizes for the copper concentrate and the pyrite concentrate to maximize recoveries. Consider the benefits of potentially higher recovery versus the possible additional costs for power, grinding balls, mill liners, and additional capital costs for larger regrind mills.

o Evaluate the various options for regrind mills in order to select the best mills for the required duties.

o Fully evaluate options for transport and shipment of the flotation concentrates.

o Evaluate the relationship between gold recovery and mass pull into the pyrite flotation concentrate and determine the optimum design criteria.

o Evaluate construction of the 138 kV power line versus on-site power generation.

o Evaluate the optimal site access road location.

• Conduct metallurgical testwork to determine the optimum process and the optimum process design criteria that will be used as the basis for the next Study including:

o Conduct preliminary tests to determine if a bulk copper flotation followed by copper cleaner flotation and collecting the cleaner tailings as the pyrite concentrate performs similarly to sequential flotation. If effective, the alternate process may result in reduced costs. A trade-off study is required to confirm which option is better after the test data is available.

o Determine the optimum primary grind size.

o Determine the optimum flotation conditions and reagents.

o Determine the optimum pyrite and copper concentrate regrind sizes.

o Evaluate leaching of rougher flotation tailings at various grind sizes using duplicate leach and carbon-in-leach (CIL) tests.

o Evaluate options for reducing the arsenic content in the copper concentrate and determine if the processes are economically preferable after the data is available.

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o Complete additional ore hardness testing including crusher work index, Bond ball mill work index, Bond rod mill work index, and abrasion index tests.

o Conduct geotechnical tests on the tailings.

o Conduct final tests using site water to determine if the test results are similar to the results achieved with laboratory water.

• Conduct aging tests to determine the impact of oxidation of the material over time on the metallurgical response of the ore.

• Conduct metallurgical testwork using variability samples to determine how much variation there will be in the metallurgical performance over the life of the mine based on metal grades, ore types, presence of impurities, etc. Tests should include:

o Grinding and flotation tests using the conditions established for the Study.

o Ore hardness and comminution testing including crusher work index, Bond ball mill work index, Bond rod mill work index, Bond abrasion index tests, JK Drop Weight tests, and SMC tests.

• Additional mineralogical studies should be conducted, particularly on flotation concentrates that contain high levels of impurities that may affect marketability and/or the costs associated with smelter penalties. The studies should be designed to evaluate the mineralogy of the impurities with the objective of evaluating possible changes in processing parameters that might reduce the concentrations of the impurities. Mineralogical studies should also be conducted for flotation tailings, as needed, to evaluate potential minerals that generate ARD and mobilized metals. As with the studies on flotation concentrates, the objective of mineralogical evaluations on tailings is to identify potential processes that may improve the metallurgical performance.

• Conduct testwork required to develop the process design criteria for unit processes using bulk samples that have been generated using the selected, optimum processing methods.

o Settling and filtration tests on flotation concentrates.

o Settling and filtration tests on tailings.

o Geochemical properties of tailings and waste rock.

• Conduct testing required to determine the optimum treatment method and develop the process design criteria for effluent water treatment.

• Conduct paste backfill testing to determine: o Preferable binder, moisture content, and quantities required.

o Required cure times.

o Strength that can be obtained.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 1-8 www.rpacan.com

ENVIRONMENTAL CONSIDERATIONS • Complete additional and update baseline studies required to support an Environmental and Social Impact Assessment (ESIA) including:

o Air quality and noise studies. o Terrestrial and aquatic biology studies. o Surface and groundwater quality studies. o Geochemistry, soil, and sediment studies. o Social-economic studies and consultation.

SOCIAL AND POLITICAL CONSIDERATIONS • Continue to engage the local communities and participate in their activities.

• Continually monitor the political climate in Ecuador and Azuay Province in order to be apprised of changes being made and their potential impact on the ability to develop the Project in the proposed manner.

ECONOMICS AND ANALYSIS • Carry out a detailed marketing study to confirm that the pyrite and copper flotation concentrates are marketable and to finalize the costs associated with the marketing.

PROPOSED BUDGET A budget to advance the Project to a Feasibility Study is provided in Table 1-1.

TABLE 1-1 BUDGET TO ADVANCE TO FEASIBILITY STUDY INV Metals Inc. – Loma Larga Project

Cost Area Item (US$ millions) Geology & Mineral Resources Assaying Analysis 0.1 Block Modelling – Silicification & RQD 0.1 Mining & Mineral Reserves Geotechnical Field Program & Analysis 0.8 Hydrogeological Study 0.3 Backfill Testwork 0.2 Metallurgy, Process & Infrastructure Testwork Program 0.8 Mineralogical Study 0.1 Geotechnical Field Program & Analysis 0.5 Environment Continue Baseline Data Collection 0.6 Geochemical Testing 0.3 Hydrological Study 0.2 Feasibility Study Including Trade-Off Studies 2.0 Total 6.0

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 1-9 www.rpacan.com

ECONOMIC ANALYSIS

A Cash Flow Projection has been generated from the LOM production schedule and capital and operating cost estimates, and is summarized in Table 1-2. A summary of the key criteria is provided below.

ECONOMIC CRITERIA PRODUCTION • Ramp up to 945 ktpa through the process plant in Year 1, followed by steady state throughput of 1,050 ktpa (3,000 tpd) in Year 2 to Year 10, followed by two years of reduced throughput.

• 12 year mine life.

• Total production is 11.6 Mt, at a grade of 5.0 g/t Au, 28 g/t Ag and 0.29% Cu.

• Average metal recovery of 90% Au, 94% Ag, and 82% Cu.

• Total recovered metal of 1.68 million ounces (Moz) Au, 9.8 Moz Ag, and 60.5 million pounds (Mlb) Cu.

• Average annual gold production (excluding Year 12) of 150.4 koz Au, 870.4 koz Ag, and 5.5 Mlb Cu.

REVENUE • Cash flow metal prices: US$1,250 per ounce gold, US$3.00 per pound of copper, US$20 per ounce silver.

• Concentrate terms as discussed in Market Studies and Contracts.

o The concentrate payability averages 90.5% payable for gold, 96.5% for copper, and 84.5% for silver.

o Concentrate charges total 16% of gross revenue from payable metal.

• Total payable metals of 1.52 Moz Au, 8.3 Moz Ag, and 58.4 Mlb Cu.

o This equates to 1.77 Moz of gold equivalent ounces (AuEq), using the formula: Au production (oz) + (Ag production (oz) / 64 oz Ag per 1 oz Au) + (Cu production (lbs) / 490 lbs Cu per 1 oz Au).

• An estimated 5% NSR royalty payable to the Ecuadorian government, which totals US$94.6 million over the mine life.

• LOM average ore value of US$154/t (revenue net of off-site concentrate costs and royalty payments).

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 1-10 www.rpacan.com

COSTS • Pre-production period: two years (Year -2 and Year -1), starting at the decision to proceed with construction.

• Initial capital totals US$286 million, including US$44 million in contingency.

• Sustaining capital of US$94 million, including US$4 million in closure costs.

• Average unit operating costs over the mine life:

o Mining: US$36.30/t o Processing: US$14.23/t o G&A: US$ 7.27/t o Total: US$57.80/t

TAXATION AND ROYALTIES • Corporate Income taxes of 22%, totalling US$133 million.

• State and Employee profit-sharing of 15%, totalling US$107 million.

• Net Profits Interest (NPI) of 5% payable to AREVA of US$36 million.

• Assessment of Ecuador’s Sovereign Adjustment calculation does not result in any additional payment by INV to the government – the benefit to Ecuador exceeds 50%.

• Value Added Tax (VAT) of 12%, which is collected on certain operating and capital cost items, will be refunded once concentrates are exported, such that the net payment of VAT by INV is zero over the mine life.

• Duties, capital outflow tax, and two other import taxes applied to certain capital cost items. These costs are included in indirect capital costs.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 1-11 TABLE 1-2 CASH FLOW SUMMARY INV Metals Inc. - Loma Larga Project

Technical Report NI 43-101 – August INV Metals Inc – Loma Larga Project, Project #2612 UNITS TOTAL YR -2 YR -1 YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 YR 11 YR 12 YR 13 MINING

Underground Operating Days days 4,550 - 350 350 350 350 350 350 350 350 350 350 350 350 350 - Tonnes per day tonnes / day 2,558 - 291 2,539 3,038 3,135 3,104 3,094 3,079 3,303 3,039 3,380 2,433 2,007 811 -

Production '000 tonnes 11,541 - 93 873 1,052 1,075 1,079 1,083 1,072 1,153 1,048 1,182 850 699 284 - Cu % 0.3% - 0.7% 0.5% 0.4% 0.3% 0.4% 0.3% 0.2% 0.2% 0.2% 0.2% 0.1% 0.1% 0.1% - Au g/t 5.0 - 7.1 7.0 6.1 5.1 6.1 4.2 4.7 4.7 5.0 4.8 3.9 3.6 3.2 - Ag g/t 28.16 - 49 45 34 33 36 35 20 21 20 23 17 23 30 -

Low Grade Material '000 tonnes 97 - 9 15 12 23 8 - 6 3 16 1 2 3 - - Cu % 0.1% - 0.1% 0.1% 0.1% 0.1% 0.1% - 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% - - Au g/t 1.50 - 1.5 1.5 1.5 1.5 1.4 - 1.5 1.4 1.6 1.3 1.6 1.4 - - Ag g/t 9.77 - 18 8 8 10 8 - 7 7 10 12 11 10 - -

Waste '000 tonnes 1,085 - 200 338 203 131 33 - 28 38 71 6 9 28 - - Total Moved '000 tonnes 12,723 - 302 1,226 1,266 1,228 1,119 1,083 1,106 1,194 1,135 1,189 860 731 284 -

PROCESSING Mill Feed '000 tonnes 11,638 - - 945 1,050 1,050 1,050 1,050 1,050 1,050 1,050 1,050 1,050 959 284 - Cu Grade % 0.29% - - 0.6% 0.4% 0.3% 0.4% 0.3% 0.2% 0.2% 0.2% 0.2% 0.2% 0.1% 0.1% - Au Grade g/t 5.0 - - 7.0 6.1 5.2 6.0 4.3 4.6 4.7 4.9 4.8 4.1 3.5 3.2 - Ag Grade g/t 28 - - 45 34 33 36 35 21 21 21 23 19 21 30 -

Contained Cu '000 lbs 73,655 - - 11,620 9,616 6,966 9,777 6,388 5,580 5,154 5,399 5,594 4,056 2,817 689 - Contained Au oz 1,863,340 - - 212,428 206,287 173,906 204,180 146,011 156,677 159,841 165,922 161,912 139,909 106,835 29,432 - 29, 2016 Contained Ag oz 10,480,499 - - 1,370,831 1,141,859 1,101,614 1,224,896 1,174,345 720,678 717,563 694,864 767,472 642,103 650,542 273,732 -

Recovery Copper Concentrate Recovery Cu % 82% - - 82% 82% 82% 82% 82% 82% 82% 82% 82% 82% 82% 82% - Au % 18% - - 18% 18% 18% 18% 18% 18% 18% 18% 18% 18% 18% 18% - Ag % 44% - - 44% 44% 44% 44% 44% 44% 44% 44% 44% 44% 44% 44% -

Pyrite Concentrate Recovery Cu % 15% - - 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% - Au % 73% - - 73% 73% 73% 73% 73% 73% 73% 73% 73% 73% 73% 73% - Ag % 50% - - 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% -

Net Recovery Cu % 82% - - 82% 82% 82% 82% 82% 82% 82% 82% 82% 82% 82% 82% - Au % 90% - - 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% - Ag % 94% - - 94% 94% 94% 94% 94% 94% 94% 94% 94% 94% 94% 94% -

Production Copper Circuit Recovery Cu '000 lbs 60,545 - - 9,552 7,904 5,726 8,037 5,251 4,587 4,237 4,438 4,598 3,334 2,316 566 - Au oz 326,084 - - 37,175 36,100 30,434 35,732 25,552 27,419 27,972 29,036 28,335 24,484 18,696 5,151 - Ag oz 4,642,861 - - 607,278 505,844 488,015 542,629 520,235 319,261 317,881 307,825 339,990 284,451 288,190 121,263 -

Pyrite Concentrate Recovery

Cu '000 lbs 10,754 - - 1,697 1,404 1,017 1,427 933 815 753 788 817 592 411 101 - www.rpacan.com Au oz 1,354,648 - - 154,435 149,971 126,430 148,439 106,150 113,904 116,205 120,625 117,710 101,714 77,669 21,397 - Ag oz 5,187,847 - - 678,561 565,220 545,299 606,323 581,301 356,736 355,194 343,958 379,899 317,841 322,018 135,497 -

Copper Concentrate tonnes 91,542 - - 14,442 11,951 8,657 12,151 7,939 6,935 6,406 6,710 6,953 5,041 3,501 856 - Mass Ratio % 0.79% - - 1.53% 1.14% 0.82% 1.16% 0.76% 0.66% 0.61% 0.64% 0.66% 0.48% 0.36% 0.30% - Cu grade within con % 30.0% - - 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% - Au grade within con g/t 111 - - 80 94 109 91 100 123 136 135 127 151 166 187 - Ag grade within con g/t 1,577 - - 1,308 1,317 1,753 1,389 2,038 1,432 1,543 1,427 1,521 1,755 2,560 4,404 - 1 -12 Page Copper Concentrate (wet) wmt 101,713 - - 16,047 13,279 9,619 13,501 8,821 7,705 7,118 7,456 7,725 5,601 3,890 951 -

Pyrite Concentrate tonnes 1,138,746 - - 129,822 126,069 106,280 124,781 89,232 95,751 97,684 101,400 98,949 85,503 65,290 17,987 - Mass Ratio % 9.8% - - 14% 12% 10% 12% 8% 9% 9% 10% 9% 8% 7% 6% - Cu grade within con % 0.43% - - 0.59% 0.51% 0.43% 0.52% 0.47% 0.39% 0.35% 0.35% 0.37% 0.31% 0.29% 0.25% - Au grade within con g/t 37 - - 37 37 37 37 37 37 37 37 37 37 37 37 - Ag grade within con g/t 142 - - 163 139 160 151 203 116 113 106 119 116 153 234 -

Pyrite Concentrate (wet) wmt 1,265,274 - - 144,246 140,076 118,089 138,646 99,147 106,390 108,538 112,667 109,944 95,003 72,545 19,985 -

Total Tonnes Concentrate wmt 1,366,987 - - 160,293 153,355 127,708 152,147 107,967 114,095 115,656 120,122 117,669 100,604 76,435 20,937 - UNITS TOTAL YR -2 YR -1 YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 YR 11 YR 12 YR 13 Total Recovered Cu '000 lbs 60,545 - - 9,552 7,904 5,726 8,037 5,251 4,587 4,237 4,438 4,598 3,334 2,316 566 - Technical Report NI 43-101 – August 29, INV Metals Inc – Loma Larga Project, Project #2612 Au oz Au 1,680,733 - - 191,610 186,071 156,864 184,171 131,702 141,323 144,177 149,661 146,044 126,198 96,365 26,548 - Ag oz Ag 9,830,708 - - 1,285,839 1,071,064 1,033,314 1,148,952 1,101,535 675,996 673,074 651,783 719,889 602,292 610,208 256,761 - REVENUE Metal Prices Input Units US$/lbs Cu $3.00 - - $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 - US$/oz Au $1,250 - - $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 - US$/oz Ag $20 - - $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 - Copper Concentrate Payable Cu % - - 96.5% 96.5% 96.5% 96.5% 96.5% 96.5% 96.5% 96.5% 96.5% 96.5% 96.5% 96.5% 96.5% Au % - - 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% Ag % - - 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0%

Pyrite Concentrate Payable Cu % ------Au % - - 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% Ag % - - 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0%

Total Payable Cu '000 lbs 58,425 - - 9,218 7,627 5,525 7,755 5,067 4,426 4,089 4,283 4,437 3,217 2,235 547 - Au oz 1,520,690 - - 173,365 168,353 141,927 166,633 119,161 127,866 130,448 135,410 132,138 114,181 87,189 24,020 - Ag oz 8,306,843 - - 1,086,521 905,038 873,139 970,852 930,786 571,210 568,741 550,749 608,298 508,930 515,619 216,960 - Cu as AuEq (1oz Au: 490lb Cu) oz AuEq 119,272 - - 18,794 15,576 11,268 15,825 10,304 9,053 8,364 8,766 9,074 6,580 4,559 1,109 - Ag as AuEq (1oz Au: 64oz Ag) oz AuEq 128,793 - - 16,841 14,034 13,534 15,051 14,416 8,862 8,824 8,546 9,437 7,896 7,993 3,358 - AuEq oz AuEq 1,768,756 - - 209,000 197,963 166,729 197,510 143,880 145,781 147,637 152,722 150,648 128,657 99,741 28,487 -

Total Gross Revenue (by Metal) Cu Gross Revenue US$ '000 $ 175,276 - - $27,653 $22,882 $16,576 $23,266 $15,200 $13,278 $12,266 $12,848 $13,312 $9,651 $6,704 $1,640 - Au Gross Revenue US$ '000 $ 1,900,863 - - $216,706 $210,441 $177,408 $208,292 $148,951 $159,833 $163,060 $169,263 $165,172 $142,726 $108,986 $30,025 - Ag Gross Revenue US$ '000 $ 166,137 - - $21,730 $18,101 $17,463 $19,417 $18,616 $11,424 $11,375 $11,015 $12,166 $10,179 $10,312 $4,339 - Total Gross Revenue US$ '000 $ 2,242,276 - - $266,089 $251,424 $211,448 $250,975 $182,767 $184,535 $186,701 $193,125 $190,650 $162,556 $126,002 $36,003 - 2016 TCRC Charges Copper Concentrate Treatment Charges US$ '000 $ 13,731 - - $2,166 $1,793 $1,299 $1,823 $1,191 $1,040 $961 $1,006 $1,043 $756 $525 $128 - Transport US$ '000 $ 22,011 - - $3,473 $2,873 $2,082 $2,922 $1,909 $1,667 $1,540 $1,613 $1,672 $1,212 $842 $206 - Refining Charges Cu US$ '000 $ 8,764 - - $1,383 $1,144 $829 $1,163 $760 $664 $613 $642 $666 $483 $335 $82 - Au US$ '000 $ 1,826 - - $208 $202 $170 $200 $143 $154 $157 $163 $159 $137 $105 $29 - Ag US$ '000 $ 1,045 - - $137 $114 $110 $122 $117 $72 $72 $69 $76 $64 $65 $27 - Total Charges Copper Concentrate US$ '000 $ 47,377 - - $7,366 $6,126 $4,489 $6,230 $4,120 $3,597 $3,343 $3,494 $3,615 $2,652 $1,872 $472 -

Pyrite Concentrate Treatment US$ '000 $ 170,812 - - $19,473 $18,910 $15,942 $18,717 $13,385 $14,363 $14,653 $15,210 $14,842 $12,825 $9,794 $2,698 - Transport and Port Storage US$ '000 $ 115,646 - - $13,184 $12,803 $10,793 $12,672 $9,062 $9,724 $9,920 $10,298 $10,049 $8,683 $6,631 $1,827 - Refining Charges Au US$ '000 $ 8,819 - - $1,005 $976 $823 $966 $691 $742 $756 $785 $766 $662 $506 $139 - Ag US$ '000 $ 7,237 - - $947 $788 $761 $846 $811 $498 $495 $480 $530 $443 $449 $189 - Total Charges Pyrite Concentrate US$ '000 $ 302,514 - - $34,609 $33,478 $28,319 $33,202 $23,949 $25,326 $25,825 $26,773 $26,188 $22,614 $17,379 $4,853 -

Total Charges US$ '000 $ 349,890 - - $41,976 $39,604 $32,808 $39,431 $28,069 $28,923 $29,168 $30,267 $29,803 $25,266 $19,251 $5,325 -

Net Smelter Return US$ '000 $ 1,892,386 - - $224,114 $211,820 $178,639 $211,544 $154,699 $155,612 $157,533 $162,858 $160,847 $137,290 $106,752 $30,678 -

Royalty NSR US$ '000 $ 94,619 - - 11,206 10,591 8,932 10,577 7,735 7,781 7,877 8,143 8,042 6,864 5,338 1,534 - www.rpacan.com

Net Revenue US$ '000 $ 1,797,767 - - $212,908 $201,229 $169,707 $200,966 $146,964 $147,832 $149,656 $154,716 $152,805 $130,425 $101,414 $29,144 - Unit NSR US$ / t proc 154.47 - - 225 192 162 191 140 141 143 147 146 124 106 103 -

OPERATING COST Mining US$/t proc $36.30 - - $36.31 $38.39 $37.77 $37.07 $32.52 $34.42 $37.34 $36.64 $34.40 $36.03 $32.55 $56.96 - Processing US$/t proc $14.23 - - $15.73 $15.31 $13.76 $13.87 $13.70 $13.70 $13.70 $13.72 $13.71 $13.64 $13.86 $21.42 -

Page G&A US$/t proc $7.27 - - $7.49 $6.81 $6.79 $6.77 $6.71 $6.72 $6.77 $6.74 $6.73 $6.71 $7.30 $23.65 - Total Unit Operating Cost US$/t proc $57.80 - - $59.53 $60.50 $58.32 $57.70 $52.92 $54.85 $57.81 $57.10 $54.84 $56.38 $53.70 $102.02 -

Mining US$ '000 $422,514 - - 34,313 40,311 39,658 38,921 34,143 36,146 39,209 38,474 36,123 37,828 31,222 16,166 - Processing US$ '000 $165,606 - - 14,868 16,073 14,450 14,563 14,382 14,387 14,385 14,403 14,399 14,323 13,296 6,080 - 1-13 G&A US$ '000 $84,568 - - 7,077 7,145 7,130 7,105 7,044 7,056 7,112 7,075 7,062 7,050 7,001 6,712 - Total Operating Cost US$ '000 $672,687 - - 56,257 63,529 61,237 60,589 55,569 57,589 60,706 59,952 57,584 59,201 51,518 28,957 -

VAT Paid on Operating Costs US$ '000 66,976 - - 5,311 6,182 6,201 6,136 5,570 5,807 6,154 6,089 5,811 6,009 5,112 2,594 - VAT Refund (CapEx and OpEx) US$ '000 (93,705) - - (20,136) (7,659) (7,102) (6,271) (6,144) (5,932) (6,766) (6,988) (6,842) (6,056) (6,095) (5,121) (2,594)

Operating Cashflow US$ '000 $1,151,809 - - 171,476 139,176 109,371 140,513 91,969 90,367 89,563 95,663 96,252 71,272 50,879 2,713 2,594 Technical Report NI 43-101 – INV Metals Inc – Loma Larga Project, Project #2612

UNITS TOTAL YR -2 YR -1 YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 YR 11 YR 12 YR 13 CAPITAL COST Direct Cost Mining US$ '000 56,565 10,510 46,055 ------Process US$ '000 63,011 23,856 39,155 ------Infrastructure US$ '000 24,868 17,123 7,746 ------Tailings US$ '000 8,981 - 8,981 ------Total Direct Cost US$ '000 153,426 51,488 101,937 ------

Indirect Costs Indirects US$ '000 88,254 26,442 61,812 ------Subtotal Indirect Costs US$ '000 88,254 26,442 61,812 ------

Contingency US$ '000 44,172 12,660 31,512 ------Initial Capital Cost US$ '000 285,852 90,590 195,261 ------

Sustaining - Mining US$ '000 51,595 - - 19,097 7,587 558 60 2,689 7,134 6,210 5,603 1,892 687 77 - - Sustaining - Process US$ '000 9,000 - - - 900 900 900 900 900 900 900 900 900 900 - - Sustaining - Tailings US$ '000 3,380 - - 50 1,740 65 65 65 65 1,074 59 65 65 69 - - August 29, 2016 Reclamation and Closure US$ '000 4,244 ------4,244 Indirects US$ '000 15,038 - - 3,517 1,362 148 35 1,129 2,980 2,746 2,341 604 157 20 - - Sustaining - Contingency US$ '000 11,004 - - 3,469 1,615 120 25 631 1,655 1,616 1,301 406 140 25 - - Total Sustaining Cost US$ '000 94,261 - - 26,133 13,203 1,791 1,084 5,414 12,734 12,546 10,204 3,867 1,950 1,090 - 4,244

Total Capital Cost US$ '000 380,113 90,590 195,261 26,133 13,203 1,791 1,084 5,414 12,734 12,546 10,204 3,867 1,950 1,090 - 4,244

CASH FLOW & TAXES Net Pre-Tax Cashflow US$ '000 $771,696 -$90,590 -$195,261 $145,342 $125,973 $107,580 $139,429 $86,555 $77,633 $77,017 $85,459 $92,385 $69,322 $49,788 $2,713 -$1,650 Cumulative Pre-Tax Cashflow US$ '000 -$90,590 -$285,852 -$140,509 -$14,536 $93,044 $232,473 $319,028 $396,661 $473,678 $559,137 $651,522 $720,844 $770,632 $773,346 $771,696

Cashflow for NPI US$ '000 -$90,590 -$195,261 $133,798 $117,231 $102,764 $130,373 $81,625 $66,225 $66,163 $74,243 $81,260 $61,354 $44,435 $2,713 -$1,650 Cumulative Cashflow for NPI US$ '000 -$90,590 -$285,852 -$152,054 -$34,823 $67,941 $198,314 $279,940 $346,164 $412,327 $486,570 $567,830 $629,184 $673,619 $676,332 $674,682

Cogema Agreement Payments US$ '000 $36,241 $1,360 $1,360 $1,360 $0 $1,741 $6,519 $4,081 $3,311 $3,308 $3,712 $4,063 $3,068 $2,222 $136 $0

Advanced Royalty Payment / Repayment US$ '000 ------Cumulative ------

State, Employment, Windfall, & Income Taxes US$ '000 $239,301 $0 $0 $28,477 $21,564 $11,881 $22,338 $12,159 $28,140 $26,774 $27,667 $27,442 $19,654 $13,206 $0 $0

After-Tax Cashflow, pre-Sovereign Adjust US$ '000 $496,154 -$91,950 -$196,621 $115,505 $104,410 $93,958 $110,573 $70,314 $46,182 $46,935 $54,081 $60,880 $46,600 $34,361 $2,578 -$1,650 Cumulative After-Tax Cashflow US$ '000 -$91,950 -$288,572 -$173,066 -$68,656 $25,302 $135,875 $206,189 $252,371 $299,305 $353,386 $414,266 $460,866 $495,226 $497,804 $496,154

Sovereign Adjustment US$ '000 ------

After-Tax Cash Flow US$ '000 $496,154 -$91,950 -$196,621 $115,505 $104,410 $93,958 $110,573 $70,314 $46,182 $46,935 $54,081 $60,880 $46,600 $34,361 $2,578 -$1,650 Cumulative US$ '000 -$91,950 -$288,572 -$173,066 -$68,656 $25,302 $135,875 $206,189 $252,371 $299,305 $353,386 $414,266 $460,866 $495,226 $497,804 $496,154

Cash Costs US$ / oz Au $510 - - $346 $432 $486 $408 $483 $544 $568 $550 $529 $626 $678 $1,242 -

PROJECT ECONOMICS www.rpacan.com Pre-Tax Payback Period Years 2.1 - - 1.00 1.00 0.14 ------Pre-Tax IRR % 35.7% Pre-tax NPV at 5% discounting US$ '000 489,908 Pre-tax NPV at 7.5% discounting US$ '000 391,380 Pre-tax NPV at 10% discounting US$ '000 312,468

Post Sovereign Adjustment

Page After-Tax Payback Period Years 2.7 - - 1.00 1.00 0.73 ------After-Tax IRR % 26.3% After-Tax NPV at 5% discounting US$ '000 300,851 After-Tax NPV at 7.5% discounting US$ '000 232,414

1-14 After-tax NPV at 10% discounting US$ '000 177,567

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CASH FLOW ANALYSIS Considering the Project on a stand-alone basis, a summary of the cash flow is provided in Table 1-3. TABLE 1-3 SUMMARY OF CASH FLOW INV Metals Inc. – Loma Larga Project

Value Parameter (US$ millions) Gross Revenue 2,242.3 Treatment and Refining Charges 349.9 Net Smelter Return 1,892.4 Royalties @ 5% 94.6 Net Revenue 1,797.8 Operating Costs 672.7 Refundable VAT 26.7 Operating Cash Flow 1,151.8 Initial Capital Costs 285.9 Sustaining Capital Costs 94.3 Net Pre-Tax Cash Flow 771.7 Income Tax 132.8 State and Employment Tax 106.5 AREVA NPI Payments 36.2 Windfall Tax - Sovereign Adjustment - After-Tax Cash Flow 496.2

ECONOMIC RESULTS On a pre-tax basis, the undiscounted cash flow totals US$771.7 million over the mine life. The pre-tax IRR is 35.7%, the payback period is 2.1 years, and the pre-tax NPVs are: • US$489.9 million at a 5% discount rate.

• US$391.4 million at a 7.5% discount rate.

• US$312.5 million at a 10% discount rate.

On an after-tax basis, the undiscounted cash flow totals US$496.2 million over the mine life, and simple payback occurs after 2.7 years.

The after-tax Internal Rate of Return (IRR) is 26.3% and the after-tax NPVs are: • US$300.8 million at a 5% discount rate.

• US$232.4 million at a 7.5% discount rate.

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• US$177.6 million at a 10% discount rate.

SENSITIVITY ANALYSIS Project risks can be identified in both economic and non-economic terms. Key economic risks were examined by running cash flow sensitivities to: • Head grade,

• Recovery,

• Metal prices,

• Operating costs, and

• Initial capital costs.

Sensitivity of the after-tax NPV at a 5% discount rate has been calculated for variations on the base case. The sensitivities are shown in Figure 1-1 and Table 1-4. Head grade, recovery, and metal price variations were applied to all metals, however the values shown in Table 1-4 are for gold only. Gold accounts for approximately 86% of the net revenue of the Project.

FIGURE 1-1 SENSITIVITY ANALYSIS

Sensitivity Analysis $500 $450 $400 $350 $300 Head Grade $250 Recovery $200 Metal Price $150 Operating Cost Tax NPV @ 5% (US$ millions) (US$ @ 5% NPV Tax - $100 Capital Cost $50 After $0 0.7 0.8 0.9 1 1.1 1.2 1.3

Factor Change from Base Case

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TABLE 1-4 SENSITIVITY ANALYSES INV Metals Inc. – Loma Larga Project

Head Grade NPV at 5% Factor Change (g/t Au) (US$ millions) 0.8 3.98 153 0.9 4.48 224 1.0 4.98 301 1.1 5.48 368 1.2 5.98 413

Recovery NPV at 5% Factor Change (% Au) (US$ millions) 0.89 80% 211 0.94 85% 252 1.00 90% 301 1.03 92.5% 321 1.05 95% 342

Metal Price NPV at 5% Factor Change ($/oz Au) (US$ millions) 0.77 972 89 0.88 1,111 193 1.00 1,250 301 1.11 1,389 398 1.22 1,528 468

Operating Cost NPV at 5% Factor Change ($/t) (US$ millions) 0.90 52 345 0.95 55 323 1.00 8 301 1.13 65 245 1.25 72 189

Capital Cost NPV at 5% Factor Change ($ millions) (US$ millions) 0.90 257 328 0.95 272 315 1.00 286 301 1.13 322 267 1.25 357 241

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EXECUTION PLAN RPA, Samuel Engineering, and KCB have identified a number of activities that will be completed in the process of developing the Project. As a collaborative effort, the team has identified key milestones and estimated the time it will take to complete each of the tasks. The development of the Project from the decision to proceed beyond the PFS to reach full production at 3,000 tpd is estimated to take four years and eight months.

The Project dates are presented as Year 1, Year 2, Year 3, Year 4, and Year 5 in this section of the report. It is also assumed that Year 1 commences on January 1.

The key milestones and durations are provided in Table 1-5.

TABLE 1-5 PROJECT EXECUTION MILESTONES AND SCHEDULE INV Metals Inc. – Loma Larga Project

Activity Start Finish Metallurgical Testwork to Support Feasibility Study Jan Year 1 Geotechnical Testwork to Support Portal Locations Jan Year 1 Kick-off Feasibility Study Mar Year 1 Testwork Complete Mar Year 2 Begin Access Road Construction Mar Year 2 Submit ESIA Application for Approval May Year 2 Feasibility Study Complete Sep Year 2 Place Order for Crushing Plant Oct Year 2 Publish NI 43-101 for Feasibility Study Oct Year 2 Access Road Complete Dec Year 2 ESIA Approved Dec Year 2 Financing In Place Jan Year 3 Notice to Proceed with Detailed Engineering and Procurement Jan Year 3 Begin Mine Development Sep Year 3 Begin Plant Facilities Construction Jan Year 4 Detailed Engineering Substantially Complete Mar Year 4 Mechanical Completion Aug Year 4 Permanent Power Available Aug Year 4 Tailings Dry Stack Facility Phase One Complete Feb Year 5 Plant Commissioning Complete Mar Year 5 Mine Pre-production Development Complete Sep Year 5 Plant in Full Production Sep Year 5

The Project execution schedule is dependent upon having the access road completed prior to initiation of any significant work on the Loma Larga site. Since no camp is planned for Loma

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Larga, employees will be transported from Cuenca and other local communities to the site. This requires safe, easy access to the site for heavy equipment, which will only be available after the access road is completed.

For this schedule, the ESIA for the mining portion of the Project will not be approved by the time the ESIA must be submitted for the access road. Therefore, at least a portion of the work required to design, permit, and construct the access road will occur before the Project permitting approval is received. This means that the cost of completing the design, permitting, and construction of the access road may be incurred without the benefit of Project approval and financing.

TECHNICAL SUMMARY

PROPERTY DESCRIPTION AND LOCATION The Loma Larga Project consists of three mineral concessions located in the Western Cordillera of the Andes at elevations varying from 3,500 m to 3,900 m, approximately 30 km southwest of the city of Cuenca, the third-largest city in Ecuador, in Azuay Province.

The concessions consist of Cerro Casco, Rio Falso, and Cristal, and as of June 2016 the total area is approximately 7,960 ha. The deposit is located at latitude 3° 03’ 00” S and longitude 79° 13’ 00” W.

The Cerro Casco and Rio Falso concessions are located within the “Yanuncay Irquis” Forestry Reserve and the Cristal concession is located within the “El Chorro” Forestry Reserve. The Environmental Ministry has designated two Special Mining Areas within these two Forestry Reserves that allow mining development.

LAND TENURE INV obtained 100% title to the property by purchasing IAMGOLD’s Ecuadorian subsidiary in November 2012.

In order to maintain the concessions in good standing, INV is required to submit annual exploration reports for each claim, itemizing expenditures and activities. In May 2014, INV submitted an application to advance the concessions from the initial exploration stage to a four

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 1-19 www.rpacan.com year advanced exploration stage and proposed a minimum exploration commitment of $500,000 per year for the period from 2014 to 2018, along with a minor reduction in the property size. The government has approved the Project being in the advanced exploration stage on October 23, 2014 and the concessions reduction process of 70 ha was complied with, as noted in the registry of minutes at the mining Registry on May 4, 2016.

In October 2002, the Environmental Ministry approved the Environmental Licences for exploration at Cerro Casco and Rio Falso. In August 2013, INV submitted an Environmental Study and Management Plan (ESMP) as part of its application for an Environmental Licence for the Cristal mining concession. The ESMP was approved in January 2015, and the grant of the Environmental Licence by the Environmental Ministry is in the final administrative steps.

The Project is subject to a 5% Net Profit Interest (NPI), payable to COGEMA (now AREVA), the original owner of the property. In addition, upon completion of a bankable feasibility study, INV must pay to COGEMA, $2.00 per ounce of gold contained in Proven and Probable Reserves, and Indicated and Measured Resources, as defined by said study.

RPA is not aware of any environmental liabilities on the property. INV is not aware of any other significant factors and risks that may affect access, title, or the right or ability to perform the proposed work program on the property.

EXISTING INFRASTRUCTURE AND ACCESSIBILITY The Project is accessible from Quito, Ecuador’s capital city, by the main Pan-American Highway to Cuenca, a distance of 459 km. Cuenca is the third largest city in Ecuador with a population of approximately 400,000. There are regularly scheduled commercial flights available between Quito, Cuenca, and Guayaquil, which is Ecuador’s most populous city, and main port. From Cuenca, the property is currently accessible by a 90 minute drive (the proposed new access road will significantly reduce this travel time).

There is only minimal infrastructure on the property, including a small camp at Los Pinos that can house 30 people, several man-made water ponds/reservoirs, and a north-south access road. There is electrical service and cellular phone service at the camp.

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HISTORY Exploration activity began in the area in the late 1970s when a United Nations survey identified the Tasqui and Jordanita base metal stream sediment geochemical anomalies five kilometres south of the margin of the Quimsacocha caldera.

In 1991, the property was acquired by COGEMA, which completed 2,944 m of diamond drilling in 17 holes on vein and disseminated targets. COGEMA entered into a joint venture with Newmont Mining Corporation (Newmont) and TVX Gold Inc. in 1993. Newmont drilled 82 holes totalling 7,581 m. With the average hole being less than 100 m deep, the drill program failed to reach the Loma Larga deposit. IAMGOLD subsequently entered into the option agreement with COGEMA in 1999, however, no work was carried out for several years.

IAMGOLD discovered the Loma Larga deposit in 2004 and carried out a drill program consisting of 280 holes totalling 65,117 m. A PFS was completed in 2008.

On June 22, 2012, INV entered into a share purchase agreement with IAMGOLD and its two subsidiaries, AGEM Ltd. and Repadre Capital (BVI) Inc., to purchase a 100% interest in IAMGOLD Ecuador S.A. INV obtained 100% title to the property in November 2012.

GEOLOGY AND MINERALIZATION The Loma Larga property is located within the Ecuadorian cordillera, which consists of a number of narrow, north to northeast trending terranes which were formed during the separation of the Central and South American plates and accreted onto the Amazon Craton from the Late Jurassic to Eocene. Most of the terranes extend for several hundreds of kilometres in a north-northeast direction and are only a few tens of kilometres wide. They are separated by deep north-northeast trending faults. These terranes were built upon during the Tertiary and Quaternary by subduction related continental arc magmatism and reactivation of the terrane bounding faults.

The Project lies in the southern part of the Chaucha continental terrane, in the Western Cordilleran physiographic province. The terrane consists of Tertiary continental arc volcanic rocks deposited upon Cretaceous marine to fluvial sedimentary rocks, which in turn were deposited on basement Paleozoic and Mesozoic metamorphic rocks.

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The Loma Larga property is located between the Gañarin fault to the northwest and the Girón fault to the southeast. A collapsed caldera structure, four kilometres in diameter, the remnant of an eroded stratovolcano, lies along (and probably emplaced and controlled by) the Gañarin fault and 400 m west of the main Loma Larga mineralization. The caldera is underlain by late felsic domes and is cut by a multi-phase diatreme. The north-south trending Rio Falso fault, which appears to be a conjugate fault linking the Gañarin and Girón faults, is the locus for alteration and mineralizing fluids.

The property and immediate surrounding area is mostly underlain by Upper Miocene volcanic and volcaniclastic rocks of the Turi, Turupamba, Quimsacocha, and Tarqui formations. These formations are flat lying to gently dipping and usually do not outcrop on the property. The property is largely underlain by the Quimsacocha Formation which hosts the Loma Larga deposit and consists of alternating andesitic banded lava flows with phenocrysts of fresh plagioclase and andesite tuffs and breccias, distributed radially only around the outside of the caldera.

Loma Larga is a typical high sulphidation gold-copper-silver epithermal deposit. The alteration is characterized by multiphase injections of hydrothermal fluids strongly controlled by both structure and stratigraphy. It typically occurs as silica ribs mimicking fault locations and orientations. The most significant alteration zone, host to the deposit, is coincident with the north-trending Rio Falso fault, extending for over eight kilometres north-south, along the eastern edge of the collapsed caldera. This long, linear zone contains multiple large pods of silica alteration ranging up to two kilometres in east to west width. The silica alteration is surrounded by varying widths of a halo of argillic alteration, grading from higher to lower temperature mineral assemblages including pyrophyllite, alunite, dickite, kaolinite, illite, and smectite.

The mineralization is also stratigraphically controlled as it occurs at lithological contacts between Quimsacocha Formation andesitic lavas and tuffs, and reaches greater thickness in the more permeable tuffs. The mineralization is a flat lying to gently western dipping (less than ten degrees), north-south striking, cigar shaped body, which has a strike length of approximately 1,600 m north-south by 120 m to 400 m east-west and up to 60 m thick, beginning approximately 120 m below surface. It also dips slightly to the north, such that the mineralized zone is closer to surface at the south end. Resources are defined as a smaller, higher-grade subset within this mineralization.

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Mineralized zones are characterized by multiple brecciation and open-space filling events and sulphides such as pyrite, enargite, covellite, chalcopyrite, and luzonite or, at lower sulphidation states, tennantite and tetrahedrite. Higher grade intervals typically coincide with increased amounts of enargite, minor barite, and intense hydraulic brecciation that contains subrounded to rounded silicified fragments. Visible gold is rare. Gold mineralization is found, for the most part, in one of the following mineralogical assemblages: (a) vuggy silica plus fine grained pyrite and enargite; (b) massive pyrite, including a brilliant arsenical pyrite; or (c) vuggy silica with grey silica banding, sulphide space-filling and banded pyrite. Very fine grained pyrite is dominant in semi-massive to massive zones, and is interpreted to have formed earlier than coarser fracture and vug-filling pyrite.

EXPLORATION STATUS A total of 65,117 m in 280 holes was drilled at the Loma Larga deposit between 2004 and December 2007 by IAMGOLD. After acquiring the Project, INV drilled 12 diamond drill holes totalling 3,684.7 m, including two holes drilled for metallurgical testwork, three holes to further define the High Grade Main Zone, and seven holes to test step-out targets to extend the deposit.

MINERAL RESOURCES RPA estimated Mineral Resources for the Loma Larga Project using all drill hole data available as of June 30, 2016. This Mineral Resource estimate is an update of the previous estimate of December 31, 2014 reported in the 2015 Technical Report. The current Mineral Resource estimate is based on an underground mining scenario and is inclusive of Mineral Reserves. Using a US$60.00/t NSR cut-off value, Mineral Resources as of June 30, 2016, are summarized in Table 1-6.

RPA is not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the Mineral Resource estimate.

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TABLE 1-6 MINERAL RESOURCE ESTIMATE SUMMARY - JUNE 30, 2016 INV Metals Inc. – Loma Larga Project

Resource Tonnage Au Contained Au Ag Contained Ag Cu Contained Cu Classification (Mt) (g/t) (M oz) (g/t) (M oz) (%) (M lb) Indicated 17.9 4.42 2.55 28.3 16.3 0.26 104.0 Inferred 7.3 2.29 0.54 24.1 5.7 0.13 21.0

Notes: 1. CIM definitions were followed for Mineral Resources. 2. Mineral Resources are reported at an NSR cut-off value of US$60/t. 3. Mineral Resources are estimated using a long-term gold price of US$1,500 per ounce, silver price of US$25.00 per ounce, and copper price of US$3.50 per pound. 4. Mineral Resources are inclusive of Mineral Reserves. 5. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. 6. Average bulk density is 2.7 t/m3. 7. Numbers may not add due to rounding.

RPA was provided with a drill hole database consisting of 339 holes, totalling 77,427 m, with 240 of the holes (55,816 m) located within the estimated Mineral Resources. No additional drilling has been completed on the Loma Larga deposit since the 2015 Technical Report and the December 31, 2014 Mineral Resource estimate. Accordingly, the current Mineral Resource update incorporates the same drilling results available in the 2015 Technical Report, however, for this report, INV elected to reintroduce Low Grade Zone domain wireframes in addition to adopting the High Grade Zone domain wireframes used in the December 31, 2014.

The Loma Larga High Grade Zone comprises two mineralized zones, the High Grade Main Zone and High Grade Upper Zone. The Low Grade Zone, consists of two domains, the large Low Grade Main Zone wireframe domain that encompasses the High Grade Main Zone, and Low Grade Lower Zone, which lies below the Low Grade Main Zone. The Low Grade Main Zone incorporates small high grade intersections that were included in the High Grade Lower Zone domain in the 2015 Technical Report and the December 31, 2014 Mineral Resource estimate.

Three-dimensional grade shell wireframes were constructed at 0.8 g/t Au (Low Grade Zone) and 3.0 g/t Au (High Grade Zone). RPA used cross sections, long sections, and plan views to validate the wireframes.

Variography was performed on the 2.0 m Au, Ag, Cu, and density composites from the High Grade Main Zone and Low Grade Main Zone. Block grade interpolation was carried out using

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OK for Au, Ag, and Cu and ID2 weighting for density. The gold grade shell wireframe models were used to constrain the grade and density interpolations.

The polymetallic sulphide mineralization at the Loma Larga deposit contains significant values of Au, Ag, and Cu. Therefore, original assays were converted into NSR values ($ per tonne). The NSR values account for parameters such as metal price, metallurgical recoveries, smelter terms and refining charges, and transportation costs. For the purposes of developing an NSR cut-off value for an underground operation, a total operating cost of US$60.00/t milled was assumed, which includes mining, processing, and general and administrative (G&A) expenses.

MINERAL RESERVES Mineral Reserves for Loma Larga are based on the Mineral Resources as of June 30, 2016, mine designs, and external dilution and extraction factors. Table 1-7 summarizes the Mineral Reserves.

TABLE 1-7 PROBABLE MINERAL RESERVES – JUNE 30, 2016 INV Metals Inc. – Loma Larga Project

Contained Contained Contained Tonnes Grade Au Grade Ag Grade Cu Extraction Type (kt) (g/t Au) (k oz) (g/t Ag) (M oz) (% Cu) (M lb) Stopes 8,540 5.18 1,422 28.5 7.8 0.31% 57.6 Drift and Fill 2,128 4.05 277 25.8 1.8 0.21% 9.7 Ore Development 873 5.62 158 30.5 0.9 0.32% 6.1 Incremental Ore 97 1.50 5 9.8 0.0 0.09% 0.2 Total 11,638 4.98 1,862 28.0 10.5 0.29% 73.6

Notes: 1. CIM definitions were followed for Mineral Reserves. 2. Mineral Reserves include stopes, drift & fill mining, and ore development, estimated at a cut-off grade of 2.0 g/t Au. 3. Incremental ore is material between 1.0 g/t Au and 2.0 g/t Au that must be extracted to access higher grade areas. This material can be processed economically. 4. Cut-off grades include consideration for copper and silver contributions. 5. Mineral Reserves are estimated using average long-term prices of US$1,250 per ounce gold, US$3.00 per pound copper, and US$20 per ounce silver. 6. A minimum mining width of 4.0 metres was used. 7. Bulk density is 2.7 t/m3. 8. Numbers may not add due to rounding.

The Mineral Reserves consist of selected portions of the Indicated Resources that are above a 2.0 g/t Au cut-off grade. This cut-off was applied at the level of stoping solids, after including waste and fill dilution.

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RPA is not aware of any mining, metallurgical, infrastructure, permitting, or other relevant factors that could materially affect the Mineral Reserve estimate.

MINING METHOD Gold mineralization at the Project occurs within four zones – the High Grade Main Zone, which is classified as an Indicated Mineral Resource, the Low Grade Main Zone, which contains both Indicated and Inferred Mineral Resources, and the High Grade Lower Zone and Low Grade Lower Zone, which are classified as Inferred Mineral Resources.

Indicated Mineral Resources in the High Grade Main Zone were converted to Mineral Reserves and used as the Base Case for the PFS. The High Grade Main Zone is the largest of the four zones, is relatively flat-lying, undulates along strike, and varies in thickness from five metres to 100 m.

The block model developed for the PFS and used for the mine design extends from surface to 3,560 MASL elevation (approximately 175 m depth from surface).

The rock mass quality of the host rock ranges between Good and Very Poor, and significant ground support will be required in areas that have poor or lower ratings. The rock mass quality of the mineralized rock is better quality than the rock mass of the host rock. The mine design developed by RPA has the majority of the mine workings within this zone. The quality of the mineralized rock will allow mining via longhole open stoping methods. High-grade areas too small to mine using longhole stoping will be extracted with drift and fill mining. Ore mining has been kept within the mineralized zone, where the rock mass has better geotechnical quality than the surrounding host rock. To mitigate the risk of ore mining extending into the host rock at the top of the High Grade Main Zone, ground support requirements for development headings and stopes will increase as they near the hanging wall contact.

The high grades of the Loma Larga deposit justify a “maximum extraction” approach with no pillars, through the use of cemented paste backfill. Unconsolidated waste will be used as backfill where it does not affect extraction.

The Loma Larga deposit will be accessed using a ramp on the north-eastern side of the deposit. Levels and accesses have been designed within the low grade mineralization, taking

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Mining will be carried out by mechanized equipment, working three eight-hour shifts per day to produce 3,000 tpd ore, over a 12 year mine life. Year 1 will see processing of 945 ktpa, Years 2 to 10 processing at the design capacity of 1,050 ktpa, Year 11 processing 959 ktpa, and Year 12 processing 284 ktpa. Excluding Year 12, the site will produce concentrates containing an average of 150,000 ounces of gold per year.

MINERAL PROCESSING The conceptual design for the processing facilities is based on the recent metallurgical testwork and a number of assumptions. Specifically, the basis of the design for the flotation circuits is the results and conditions from the locked cycle test (LCT) that was conducted using a sequential flotation process.

The design was completed by Samuel Engineering of Greenwood Village, Colorado under the direction of Dr. Kathleen Altman of RPA. The key item for the process design team was to design a process flow which limited the amount of processing at the site while maximizing the value of the products produced. Based on work completed by IAMGOLD and INV Metals, the team selected a sequential flotation design which utilizes industry-standard processes and equipment. The use of the design reduces the capital cost when compared to the previous IAMGOLD selected process of pressure oxidation (POX). The sequential flotation circuit will produce two concentrates: a gold and silver-bearing Pyrite concentrate, and a Copper concentrate with gold and silver by-products. RPA and Samuel note that additional opportunities and optimization are available in this area of study.

The process design includes: • Primary jaw crusher. • Single SAG mill grinding and classification. • Copper rougher flotation, copper concentrate regrinding, and copper cleaner flotation. • Pyrite rougher flotation, pyrite concentrate regrinding, and pyrite cleaner flotation. • Concentrate thickening, filtering, and loading. • Tailings thickening and filtering. • Tailings loadout.

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The plant is designed to process 3,000 tpd. The crushing circuits are designed to operate with an overall availability of 75%. The remainder of the processing facilities are designed to operate with an overall availability of 93%. The equipment is sized using these criteria.

The PFS draws from work that was completed earlier by IAMGOLD. The locations of the processing facility and the TDSF have not changed. Similarly, the access road design and incoming power line design from the previous work were utilized for this Study.

PROJECT INFRASTRUCTURE The site services and ancillary facilities proposed for Loma Larga include everything required to support the mining operation. The proximity of the project to a major centre is a benefit. The key infrastructure items within the study include: • A 21.3 km access road which will shorten the travel time to the site considerably and will be used for both construction of the mine and movement of personnel and supplies during operation.

• The upgrading and extension of roads around the site, of which 8 km is planned.

• Power from the project will be from the national power grid. A 25 km transmission line will be constructed connecting the site to the national grid.

• Site Electrical – includes a substation, the site electrical power distribution, including motor control centers (MCCs) and transformers as well as two diesel emergency power generators. One of the generators will be located adjacent to the mine and the other will be located in the plant site area.

• Water Supply and Distribution – includes a fresh water tank and fresh and fire water pumps. Process water will also be distributed from the process water tank and the pyrite water tank. Water will be pumped from the process facility pond to the water tanks.

• Fuel Storage and Distribution – a lube storage area and fuel tanks are provided adjacent to the truck shop to store fuel for the surface vehicles.

• Surface Mobile Equipment and Light Vehicles.

• Warehouse and Maintenance Shops – a 30.5 m by 15.5 m wide building is provided for the surface maintenance shop and the warehouse. A “fold-away” style metal building will be erected on concrete foundations for the warehouse/maintenance shop building.

• Truck Shop – a 30.5 m by 15.5 m building is provided for the truck shop. The design is similar to the warehouse and maintenance shop.

• Assay and Metallurgical Laboratory.

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• Offices – the administrative building will include office facilities and a change house for surface and underground crews.

• Communications - telephone and internet communications equipment.

• Tailings facility.

MARKET STUDIES Final products include a larger-tonnage pyrite concentrate containing the majority of the gold and silver, and a small-tonnage copper concentrate containing high grades of gold, silver, copper, and arsenic. Preliminary treatment and refining terms were received from smelters and metal traders, which were used in this report.

The mass recovery to the final copper concentrate is approximately 0.8% at the average feed grade. The estimated concentrate grade is 30.0% Cu. For this Study, it is assumed that the recoveries and the concentrate grade of copper will remain constant. Correspondingly, the mass of concentrate and the gold, silver, and arsenic will change as the feed grades to the plant fluctuate. The average copper concentrate grades are 30.0% Cu, 111 g/t Au, 1,577 g/t Ag, and 10% As.

The average mass recovery for the final pyrite concentrate is 9.8%. For this Study, it is assumed that the recoveries and the concentrate grades for gold will remain constant, at 37 g/t Au. The silver grade and the mass of concentrate will change as the feed grade to the plant fluctuates. The average silver grade is 142 g/t.

ENVIRONMENTAL, PERMITTING, AND SOCIAL CONSIDERATIONS ENVIRONMENTAL PERMITTING AND BASELINE DATA A great deal of detailed environmental baseline data has been collected from the Project site under a technical assistance agreement between INV, the Earth Science Group (Grupo de Ciencias de la Tierra) and the Centre of Environmental Studies (CEA) of the University of Cuenca, PROMAS (a subsidiary of the University), and the Environmental Biology School of the University of Azuay. The majority of the data collection was conducted by the students and staff from the above organizations, who conducted field work for aquatic and terrestrial biology, soil studies, and ground and water monitoring.

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Baseline studies have been ongoing since 2005 and include surface and groundwater monitoring in multiple catchments.

An update to the environmental regulations related to mining activities was published on July 12, 2016, which outlined the requirements for mine permitting. The scientific basis for the permits did not change significantly from the plan developed in 2008.

INV currently holds permits for exploration and water use, and an environmental license for exploration activities.

SOCIAL CONSIDERATIONS INV is building on a long history of constructive social engagement started by IAMGOLD. Propraxis S.A. (Propraxis), an Ecuadorean consulting firm, performed a detailed socio- economic baseline study, including survey data from hundreds of households in the surrounding communities.

Consultation efforts have been ongoing, with a significant public information campaign to increase understanding of mining activities as they relate to the Loma Larga Project. Complementing the consultation activities are small scale community development projects, designed and executed in partnership with local communities. The community development projects are designed in a participatory way to ensure they meet the needs of local communities. Local residents assist with project design and sign an agreement during a community assembly. Projects are executed and evaluated to ensure that they meet agreed upon objectives.

INV also has social management policies and procedures including the following: • Community Complaints Procedure • Whistleblower Policy • Code of Business Conduct and Ethics • Disclosure Policy • Foreign Corrupt Practices Policy

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CLOSURE AND RECLAMATION The closure and remediation of the Project will include the mine, infrastructure, buildings, and facilities constructed as part of the Project development. The closure plan accounts for the following areas: • Mine Workings: shafts, adits, stopes, and mine workings.

• Buildings and Infrastructure: machinery, equipment, storage, concrete, buildings, etc.

• Transportation and Power Corridors: roads, power lines, etc.

• Waste Management (non-mining): landfills, sewage, contaminated soils, petrol, chemicals, etc.

• Waste Rock: stockpiles, dumps, storage areas.

• Tailings Dry Stack Facility (TDSF).

• Ponds: pipelines, ditches, berms, and ponds.

A conceptual cost estimate of $4.2 million for closure is included in the Project cash flow.

CAPITAL COST ESTIMATE The base case initial capital cost estimate for the Project is $285.9 million, including applicable taxes and contingency (Table 1-8).

The estimate is reported at PFS level where the accuracy is defined as ±25% including contingency. Salient points related to the Basis of Estimate are: • The base date of the PFS capital cost estimate is the second quarter 2016.

• The costs incorporate all capital expenditures from the commencement of detailed engineering through to the commencement of ore processing.

• Taxes, customs and import duties are in accordance with Ecuadorian regulations.

Sustaining capital incorporates all capital expenditure after the pre-production period of Year - 2 and Year -1.

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TABLE 1-8 INITIAL CAPITAL COST SUMMARY INV Metals Inc. – Loma Larga Project

Area Total Cost (US$ M) % Year -2 (US$ M) Year -1 (US$ M) Mine 56.6 20% 10.5 46.1 Process Plant 63.0 22% 23.9 39.2 Infrastructure 24.9 9% 17.1 7.7 TDSF 9.0 3% - 9.0 Indirects 88.3 31% 26.4 61.8 Contingency 44.2 15% 12.7 31.5 Total 285.9 90.6 195.3

Note: Totals may not sum due to rounding

The initial capital cost estimate includes contingency of US$44.2 million, which is 18% of the direct and indirect capital cost estimates.

Estimated sustaining capital costs total US$94.3 million, and reclamation and closure costs total US$4.2 million.

OPERATING COST ESTIMATE The operating costs for Loma Larga were developed by RPA and Samuel Engineering. RPA was responsible for the mining and general and administrative (G&A) costs and Samuel Engineering was responsible for the costs associated with the processing facilities. Operating costs associated with the infrastructure were developed by RPA and Samuel Engineering with input from KCB with regard to tailings and water management.

The operating costs for Loma Larga are summarized in Table 1-9.

TABLE 1-9 LOMA LARGA OPERATING COSTS INV Metals Inc. – Loma Larga Project

Area Cost (US$/t milled) Mine & Surface Services 36.30 Processing 14.23 G&A 7.27 Total 57.80

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2 INTRODUCTION

Roscoe Postle Associates Inc. (RPA), Samuel Engineering Inc. (Samuel Engineering), and Klohn Crippen Berger Ltd. (KCB) were retained by INV Metals Inc. (INV) to prepare a Pre- Feasibility Study (PFS or the Study) for the Loma Larga Project (the Project), located in Ecuador. The purpose of this report is to disclose the results of the PFS. This Technical Report conforms to NI 43-101 Standards of Disclosure for Mineral Projects.

INV is a Canadian company headquartered in Toronto, with exploration properties located in Ecuador and Namibia. On November 14, 2012, INV acquired 100% of the Loma Larga Project from IAMGOLD Corporation (IAMGOLD). INV is listed on the Toronto Stock Exchange under the symbol INV.

The Project is located 30 km southwest of the city of Cuenca, and consists of three mining concessions covering an area of approximately 7,960 ha. Mineralization consists of high sulphidation epithermal gold-copper-silver in a flat-lying cigar shaped body, which has a strike length of approximately 1,600 m north-south by 120 m to 400 m east-west and up to 60 m thick, beginning approximately 120 m below surface.

In 2015, RPA completed a PFS describing a 1,000 tpd production scenario that complied with Ecuadorian legislation for medium-scale mines. Subsequent changes and clarifications in the laws governing mining in Ecuador support the improved large-scale scenario described in this Report, which is more suitable for the size and quality of the deposit.

The PFS is based on underground mining by a combination of longhole stoping and drift and fill mining. The deposit will be accessed using a ramp and mining will be carried out by mechanized equipment at a rate of 3,000 tonnes per day (tpd) ore. The Life of Mine (LOM) Plan estimates 12 years of production, with a one year ramp-up period, nine years producing at the design capacity of 1,050 kilotonnes per year (ktpa), and two years of reduced throughput at the end of the mine life. Excluding Year 12, the resulting concentrates contain an average of 150,000 ounces of gold per year. Ore will be processed by sequential flotation to produce a copper concentrate that contains payable copper, gold, and silver, and a pyrite concentrate that contains payable gold and silver.

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Currently, infrastructure at the Project supports exploration, including a small camp, several man-made water ponds/reservoirs, and a north-south access road.

SOURCES OF INFORMATION Site visits were carried out by the following personnel from February 17 to 20, 2014: • Dr. Kathleen Altman, P.E., Director of Metallurgy and Mineral Processing, Principal Metallurgist, RPA • Mr. Jason Cox, P.Eng., Executive Vice President of Mine Engineering, Principal Mining Engineer, RPA • Ms. Katya Masun, M.Sc., P.Geo., Senior Geologist, RPA • Mr. John Scott, P.Eng., Project Manager, RPA • Ms. Lindsay Robertson, M.Sc., P.Geo., Environmental Manager, KCB • Mr. Tim Harper, Plant Design Chief, Samuel Engineering • Mr. Kevin Mahoney, P.E., Project Manager, Samuel Engineering • Ms. Shawn Nevins, Project Controls Professional, Samuel Engineering

Discussions were held with personnel from INV: • Ms. Candace MacGibbon, CEO • Mr. Kevin Canario, CFO • Mr. Dawson Proudfoot, Project Manager • Mr. Jorge Barreno, General and Country Manager • Mr. Fernando Carrión, Social Responsibility Manager • Ms. Glenda Mantilla, Database Manager • Mr. Franklin Vega, Geologist • Mr. Marco Camino, Geologist • Mr. Vicente Jaramillo, Manager of Environmental, Health and Safety • Mr. Parviz Farsangi, Director • Mr. Terry MacGibbon, Chairman • Mr. Ronald Halas, Technical Committee Member

The Qualified Persons’ responsibilities for this Technical Report are listed below:

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Qualified Person Company Title Responsibility Jason Cox RPA P.Eng., Executive Vice Overall responsibility. Portions of President of Mine Sections 15, 16, 18, 19, 21, 22, Engineering, Principal and 24. Mining Engineer Shares responsibility for Sections 1, 2, 3, 25, 26, and 27.

Kathleen Ann Altman RPA P.E., Principal Sections 13 and 17. Metallurgist Shares responsibility for Sections 1, 2, 3, 25, 26, and 27.

David M. Robson RPA P.Eng., Senior Mining Portions of Sections 15, 16, 18, 19, Engineer 21, 22, and 24. Shares responsibility for Sections 1, 2, 3, 25, 26, and 27.

Katharine Masun RPA P.Geo., Senior Sections 4 through 12, 14, and 23. Geologist Shares responsibility for Sections 1, 2, 3, 25, 26, and 27.

Lindsay Robertson KCB P.Geo., Environmental Section 20. Manager Shares responsibility for Sections 1, 2, 3, 25, 26, and 27.

Carlos A. Diaz KCB P.Eng., Civil Engineer Portions of Section 18.

Geotechnical review and guidance for mining was provided by Itasca Consulting Canada Inc. (Itasca). The process design and associated cost estimates were completed by Samuel Engineering under the supervision of RPA.

The documentation reviewed, and other sources of information, are listed at the end of this report in Section 27 References.

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LIST OF ABBREVIATIONS Units of measurement used in this report conform to the metric system. All currency in this report is US dollars (US$) unless otherwise noted.

a annum kW kilowatt A ampere kWh kilowatt-hour bbl barrels L litre btu British thermal units lb pound °C degree Celsius L/s litres per second C$ Canadian dollars m metre cal calorie M mega (million); molar cfm cubic feet per minute m2 square metre cm centimetre m3 cubic metre cm2 square centimetre µ micron d day MASL metres above sea level dia diameter µg microgram dmt dry metric tonne m3/h cubic metres per hour dwt dead-weight ton mi mile °F degree Fahrenheit min minute ft foot µm micrometre ft2 square foot mm millimetre ft3 cubic foot mph miles per hour ft/s foot per second MVA megavolt-amperes g gram MW megawatt G giga (billion) MWh megawatt-hour Gal Imperial gallon oz Troy ounce (31.1035g) g/L gram per litre oz/st, opt ounce per short ton Gpm Imperial gallons per minute ppb part per billion g/t gram per tonne ppm part per million gr/ft3 grain per cubic foot psia pound per square inch absolute gr/m3 grain per cubic metre psig pound per square inch gauge ha hectare RL relative elevation hp horsepower s second hr hour st short ton Hz hertz stpa short ton per year in. inch stpd short ton per day in2 square inch t metric tonne J joule tpa metric tonne per year k kilo (thousand) tpd metric tonne per day kcal kilocalorie US$ United States dollar kg kilogram USg United States gallon km kilometre USgpm US gallon per minute km2 square kilometre V volt km/h kilometre per hour W watt kPa kilopascal wmt wet metric tonne kt thousand tonnes wt% weight percent ktpa thousand tonnes per year yd3 cubic yard kVA kilovolt-amperes yr year

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3 RELIANCE ON OTHER EXPERTS

This report has been prepared by RPA and KCB at the request of INV. The information, conclusions, opinions, and estimates contained herein are based on: a. Information available to RPA and KCB at the time of preparation of this report, b. Assumptions, conditions, and qualifications as set forth in this report, and c. Data, reports, and opinions supplied by INV and other third party sources.

For the purpose of this report, RPA has relied on ownership information provided by INV, as referenced in the documents ARCOM-C-CR-RMC-2016-0220-ME (Rio Falso), ARCOM-C-CR- RMC-2016-0221-ME (Cerro Casco), ARCOM-C-CR-RMC-2016-0219-ME (Cristal) which correspond to certificates of validity and effectiveness issued by the Agencia de Regulacion y Control Minero (ARCOM) of Cuenca, Ecuador, on July 2016, and the update of the Mining Titles issued in Cuenca on May 17, 2016 in the documents MM-CZM-CS-2016-0182-RM (Rio Falso), MM-CZM-CS-2016-0183-RM (Cerro Casco), MM-CZM-CS-2016-0181-RM (Cristal), issued by the Regional Undersecretary of Mines, Zone 6. RPA has not researched property title or mineral rights for the Project and expresses no opinion as to the ownership status of the property.

RPA has relied on INV for guidance on applicable taxes, royalties, and other government levies or interests, applicable to revenue or income from the Loma Larga Project.

Except for the purposes legislated under provincial securities laws, any use of this report by any third party is at that party’s sole risk.

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4 PROPERTY DESCRIPTION AND LOCATION

The Loma Larga Project consists of three mineral concessions located in the Western Cordillera of the Andes at elevations varying from 3,500 m to 3,900 m, approximately 30 km southwest of the city of Cuenca, the third-largest city in Ecuador, in Azuay Province (Figure 4- 1). The claims straddle six parishes within three cantons: Baños and Victoria de Portete, Cuenca canton; Girón and San Gerardo, in the canton of Girón; and Chumblín and San Fernando in the canton of San Fernando (Figure 4-2).

The property was initially claimed to cover a large hydrothermal alteration zone which extends for approximately eight kilometres north–south and two kilometres east–west. The alteration is characteristic of high-sulphidation epithermal gold-copper-silver mineralization, and following exploration efforts by several companies over a number of years, the Loma Larga deposit was discovered by IAMGOLD in 2004.

The concessions consist of Cerro Casco, Rio Falso, and Cristal. The deposit is located at latitude 3° 03’ 00” S and longitude 79° 13’ 00” W, and the UTM SAD 56 coordinates are 698,750 E, 9,663,400 N.

Table 4-1 provides further details with respect to the concessions.

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TABLE 4-1 LOMA LARGA CONCESSIONS INV Metals Inc. – Loma Larga Project

Concession Cartographic Location Geographic Location Topographic CHAUCHA CUENCA Province AZUAY Sheet CT-NV- CT-NV- Code Canton Cuenca CERRO F3,378-III F4,3785-II CASCO Banos, Victoria del Series J721 J721 Parish Portete, Scale 1:50.000 1:50.000 Zone Quimsacocha Topographic SAN GIRON Province AZUAY Sheet FERNANDO CT-NV- CT-NVI- Cuenca, Giron and Code Canton B1,3784-IV B2,3784-I San Fernando RIO FALSO Victoria del Portete, Baños, Giron, San Series J721 J721 Parish Gerardo, Chumblín and San Fernando Scale 1:50.000 1:50.000 Zone Quimsacocha Topographic SAN GIRON Province AZUAY Sheet FERNANDO CT-NV- CT-NVI- Girón, San Code Canton B1,3784-IV B2,3784-I Fernando CRISTAL Girón, San Gerardo, San Series J721 J721 Parish Fernando, Chumblín Scale 1:50.000 1:50.000 Zone Cristal

LAND TENURE On January 29, 1999, IAMGOLD Ecuador S.A., at that time the Ecuadorian subsidiary of the Canadian mining company IAMGOLD, entered into an option agreement with the French company COGEMA (now AREVA), whereby IAMGOLD could earn a 100% interest in the Quimsacocha property covering an area of 11,725 ha. In order to earn the interest, IAMGOLD had to make a payment to COGEMA of $200,000, as well as commit to pay, upon completion of a bankable feasibility study, $2.00 per ounce of gold contained in Proven and Probable Reserves, and Indicated and Measured Resources, as defined by said study. In addition, COGEMA retained a 5% Net Profit Interest (NPI). These obligations to COGEMA, now AREVA, were assumed by INV upon the acquisition.

IAMGOLD ultimately earned a 100% interest and was granted four concessions as shown in Table 4-2, each with a 30 year term. The San Martin concession was eventually dropped and the other concessions were reduced in size.

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TABLE 4-2 ORIGINAL IAMGOLD MINING CONCESSIONS INV Metals Inc. – Loma Larga Project

Name Code Area (ha) Registered Expiry Cerro Casco 101580 2,572 November 23, 2001 July 1, 2030 Cristal 102195 2,250 June 5, 2003 July 12, 2032 Rio Falso 101577 3,208 November 23, 2001 July 1, 2030 San Martin 102196 1,467 May 6, 2003 July 12, 2032

INV obtained 100% title to the property by purchasing IAMGOLD’s Ecuadorian subsidiary in November 2012. Following the acquisition, INV renamed the project Loma Larga. In January 2014, IAMGOLD Ecuador S.A. was officially renamed INV Minerales Ecuador S.A.

In December 2011, the Ministry of Non-Renewable Natural Resources issued the requirements that had to be fulfilled in order to maintain mining concessions during the various exploration stages. Article 6 governs the initial exploration period of four years, which requires meeting minimum annual investment expenditures. Article 7 governs the advanced exploration period. Before the end of the initial exploration stage, the title holder may request the Regional Under-Secretary of Mines to advance the concessions to a four year advanced exploration period. In order to do so, the company must have met the minimum investment commitment during the initial exploration stage, submit a plan of activities and minimum expenditures contemplated under the advanced exploration stage, and relinquish a portion of the property, although there is no legislated minimum area to be dropped.

To meet the requirement of Article 6 and maintain the concessions in good standing, INV has been submitting annual exploration reports for each claim, itemizing expenditures and activities. These reports have been audited by an independent certified consultant.

In May 2014, INV had the right under the Mining Law to submit an application to advance the concession from the initial exploration stage to a four year advanced exploration stage. INV’s minimum exploration commitment is $500,000 per year for the period from 2014 to 2018, and the property was reduced by 70 ha to a revised total of 7,960 ha as required by the application (Table 4-3). The Project’s mining concessions were approved by the government to convert to the advanced exploration stage on October 23, 2014 and the concession reduction process was complied with, as noted in the registry of minutes at the Mining Registry on May 4, 2016.

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TABLE 4-3 PROPERTY SIZE FOR ADVANCED EXPLORATION STAGE INV Metals Inc. – Loma Larga Project

Mining Current Area Code Concession (ha) Cerro Casco 101580 2,552 Rio Falso 101577 3,168 Cristal 102195 2,240 Total 7,960

In addition to the mining concessions, IAMGOLD Ecuador S.A. had previously purchased two areas of surface rights, approximately 300 ha at the Los Pinos Camp area and a 200 ha parcel within the Forestry Reserve referred to as Chorro Tasqui. In addition, an easement agreement was entered into with a local landowner (Table 4-4). The two land purchases as well as the easement agreements were transferred to INV and have been maintained in good standing.

Documents ARCOM-C-CR-RM-2016-0220-ME (Rio Falso), ARCOM-C-CR-RMC-2016-0221- ME (Cerro Casco), ARCOM-C-CR-RMC-2016-0219-ME (Cristal) issued by the Agencia de Regulacion y Control Minero (ARCOM) of Cuenca, Ecuador are certificates of validity and effectiveness of each mining concession, these were issued by ARCOM Cuenca in July 2016.

For the purpose of this report, RPA has relied on ownership information provided by INV, as referenced in the documents ARCOM-C-CR-RMC-2016-0220-ME (Rio Falso), ARCOM-C-CR- RMC-2016-0221-ME (Cerro Casco), ARCOM-C-CR-RMC-2016-0219-ME (Cristal) which correspond to certificates of validity and effectiveness issued by the Agencia de Regulacion y Control Minero (ARCOM) of Cuenca, Ecuador, in July 2016, and the update of the Mining Titles issued in Cuenca on May 17, 2016 in the documents MM-CZM-CS-2016-0182-RM (Rio Falso), MM-CZM-CS-2016-0183-RM (Cerro Casco), MM-CZM-CS-2016-0181-RM (Cristal), issued by the Regional Undersecretary of Mines, Zone 6.

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TABLE 4-4 CURRENT SURFACE RIGHTS AGREEMENTS INV Metals Inc. – Loma Larga Project

Date Document Owner March 17, 2006 Purchase-Sale Public Deed to INV Minerales Ecuador S.A Mr. Jorge Jarrín December 7, 2006 Purchase-Sale Public Deed to INV Minerales Ecuador S.A Mr. Leonardo Castro June 27, 2007 Easement Agreement Mr. Juan José Mogrovejo

The mining law of Ecuador stipulates that holders of mining concessions must pay a “Patent Conservation Fee” from the granting of the concession until December 31 of the year of expiry of the term of the initial exploration period, at a rate of 2.5% of the government mandated “basic salary”, currently $366, per hectare of the mining concession. This equates to $9.15 per hectare. This fee doubles to 5% of the basic salary per hectare for the advanced exploration and economic evaluation periods ($18.30). During the operational phase of the mining licence, the fee doubles again to 10%, or $36.60 per hectare per year.

The Cerro Casco and Rio Falso concessions are located within the Forestry Reserve “Yanuncay Irquis” and the Cristal concession, within the “El Chorro” Forestry Reserve (Figure 4-3). Although called a Forestry Reserve, the majority of the property is locally referred to as the “paramo” region, a type of moorland vegetation. The Environmental Ministry has designated two Special Mining Areas within these two Forestry Reserves that allow mining development. The land is uninhabited, and the nearest dwelling is located approximately four kilometres from the deposit. The closest populated centres are San Gerardo (population of 1,300), ten kilometres south, and Chumblín (population of 900), nine kilometres southeast of the Project (Figure 4-3).

In October 2002, the Environmental Ministry approved the Environmental Licences for exploration at Cerro Casco and Rio Falso. Under these licences, INV must submit quarterly reports, maintain monitoring programs, meet an Environmental Management Plan, and have external environmental audits completed. Since 2012, a biannual audit of the Environmental Management Plan is required. Prior to 2012, an annual audit was required. In December 30, 2015 the environmental audit for 2013-2014 years was approved by the Environmental Ministry. INV has submitted the reference terms for the new environmental audit for the period 2015-2016 on July 11, 2016.

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In August 2013, INV submitted an Environmental Study and Management Plan (ESMP) as part of its application for an Environmental Licence for the Cristal mining concession. The ESMP was approved in January 2015, and the grant of the Environmental Licence by the Environmental Ministry is in the final administrative steps.

An underground mining operation with production of approximately 3,000 tpd would classify the Loma Larga Project within the large-scale mining category established under Ecuadorian mining law. The implication of this is that the deposit would be subject to the establishment of an exploitation agreement between the government of Ecuador and INV. This agreement would include the negotiation of a Net Smelter Return (NSR) royalty of 5% to 8% of metal sales, corporate income tax rate of 22%, a 15% profit tax for state and employee participation (divided into a 3% contribution for employee’s profit, and a 12% contribution to the state, which is earmarked for social development projects), advance royalties and the incorporation of a formula to calculate windfall taxes and sovereign adjustment.

RPA is not aware of any environmental liabilities on the property. To RPA’s knowledge, INV has all necessary permits required to conduct the proposed work on the property. INV reports that they are not aware of any other significant factors and risks that may affect access, title, or the right or ability to perform the proposed work program on the property.

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N ECUADOR

050100 150 200 Kilometres

Figure 4-1

INV Metals Inc.

Loma Larga Project Azuay Province, Ecuador Location Map

August 2016 Source:INV Metals Inc., 2014. 4-7 www.rpacan.com 692,000 696,000 700,000 704,000

9,672,000 9,672,000

N

9,668,000 9,668,000

9,664,000 9,664,000

9,660,000 9,660,000

9,656,000 9,656,000

Cuenca Canton Baños Parish

Victoria del Portete Parish San Fernando Canton Chumblin Parish

San Fernando Parish 9,652,000 696,000 700,000 Girón Canton Figure 4-2 Girón Parish San Gerardo Parish INV Metals Inc.

Loma Larga Project 0123 4 Azuay Province, Ecuador Kilometres Location of Concessions

August 2016 Source:INV Metals Inc., 2016. 4-8 www.rpacan.com 690,000 E695,000 E 700,000 E 70 ,000 E5 7 0,000 E1 , ,000 N759,6

N

9,6 ,000 N75 , 0,000 N79,6

9,6 0,000 N7

,6,000 N59,66

9,66 ,000 N5

9,660,000 N

9,660,000 N , ,000 N559,6

9,6 ,000 N55 , ,000 N509,6

9,6 ,000 N50 690,000 E695,000 E 700,000 E 70 ,000 E5 7 0,000 E1

Figure 4-3 Legend: Forestry Reserve INV Metals Inc. Yanuncay - Irquis 012345 Loma Larga Project El Chorro Kilometres Azuay Province, Ecuador Location of the Concessions Mining Concessions Relative to the Yanuncay-Irquis, Local Communities and El Charro Forestry Reserve August 2016 Source: INV Metals Inc., 2016. 4-9 www.rpacan.com

5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

ACCESSIBILITY The Project is accessible as follows: • From Quito to Cuenca by the main Pan-American highway, a distance of 459 km.

• From Cuenca to Girón by 40 km of paved highway that continues for 188 km to Machala on the coast.

• From Girón to San Gerardo by 11 km of paved road.

• From San Gerardo to the property by 18 km of gravel road.

Regularly scheduled commercial flights are available between Quito, Cuenca, and Guayaquil. The flight duration ranges between 30 and 45 minutes, while the drive between Cuenca and the Project takes approximately 90 minutes.

CLIMATE Rainfall is uniform and averages between 1,060 mm and 1,600 mm per year, with the heaviest rains occurring in November and March. Average annual rainfall was 1,077 mm from 2006 to 2008. Snow is rare, although temperatures may fall below 0ºC. Temperatures typically vary between 2.2ºC and 17.1ºC, with the warmest month being December and the coldest, August. The temperature reaches its maximum value between 12:00 pm and 3:00 pm, when solar radiation is the highest. The minimum temperatures occur between 3:00 am and 6:00 am.

Characterization of the wind speed in the Loma Larga area was based on the data recorded at a weather station on the property during the period from 2009 to 2010. The highest wind speeds occur from July to September. The maximum average wind speed was recorded in July 2009 at seven metres per second. The average daily wind speed ranges from approximately 2.5 m/s to 4.75 m/s. The wind direction is predominantly from the west.

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LOCAL RESOURCES There is little skilled labour locally available in the Loma Larga area, however, skilled Ecuadorians are currently working in other countries and may welcome an opportunity to return to employment at home. Training will be required in order to establish an Ecuadorian mining staff.

Services, including suppliers, repair shops, and restaurants are available in Cuenca. There is a possibility of locals providing catering and cooking on site.

INFRASTRUCTURE There is only minimal infrastructure on the property, including a small camp at Los Pinos that can house 30 people, several man-made water ponds/reservoirs, and a north-south access road which has been deemed by the government to be open to the public. There is electrical service at the camp and cellular phone service is good.

PHYSIOGRAPHY The physiography at the Project consists of desert plains and rugged valleys, mainly formed by glaciers, with an altitude ranging from 3,500 MASL to 3,960 MASL. Vegetation is sparse and typical of the Andean region above tree line. Much of the property is covered by Andean “paramo”, a type of moorland vegetation consisting mainly of coarse grasses (Calamagrostis sp.), Pads (Plantago sp.), and upper montane forest. There are stands of small pine on hillsides adjacent to the concessions.

Ecuador is a seismically active country, with destructive earthquakes occurring both along the subduction zone and in the central part of the territory, at shallow crustal levels. Over the past four centuries, the most devastating earthquakes have occurred in the central zone of the Andean region (Ambato, Riobamba), the northern Sierra, and coastal areas in the provinces of Esmeraldas and Manabí. No significant events have occurred in the province of Azuay, where Loma Larga is located.

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6 HISTORY

Exploration activity began in the area in the late 1970s when a United Nations survey identified the Tasqui and Jordanita base metal stream sediment geochemical anomalies five kilometres south of the margin of the Quimsacocha caldera.

In 1991, the property was acquired by COGEMA, which completed 2,944 m of diamond drilling in 17 holes on vein and disseminated targets. COGEMA entered into a joint venture with Newmont Mining Corporation (Newmont) and TVX Gold Inc. in 1993. Newmont, as field operator, drilled 82 holes totalling 7,581 m. With the average hole being less than 100 m deep, the drill program failed to reach the levels of the Loma Larga deposit. The flat-lying nature of the target mineralization was not recognized. The best intersection reported was 83 g/t Au and 316 g/t Ag over two metres and the joint venture was dissolved. IAMGOLD subsequently entered into the option agreement with COGEMA in 1999, however, no work was carried out for several years.

By utilizing a hand held spectrometer (PIMA and Terraspec), IAMGOLD was able to vector on the zonation of clay alteration towards the higher temperature core of the system. This recognition of the zoning led to the discovery of the deposit in 2004, with hole IQD-122 intersecting 9.2 g/t Au, 46.9 g/t Ag, and 0.4% Cu over 102 m. IAMGOLD ultimately drilled 280 holes totalling 65,117 m (IAMGOLD, 2009).

SRK Consulting was contracted by IAMGOLD to carry out a scoping study in 2006. RPA was commissioned to complete the first resource estimate on the property in 2005 which was updated in 2006 (RPA, 2005; RPA, 2006). An internal PFS was initiated by IAMGOLD in 2008.

The IAMGOLD PFS defined a Probable Reserve of 8.5 million tonnes grading 6.46 g/t Au with 1.8 million ounces of contained gold (IAMGOLD Technical Services, 2009). IAMGOLD’s 2008 PFS (IAMGOLD, 2008) contemplated: • A 3,000 tpd underground operation, • A 3,000 tpd on-site concentrator, • Off-site pressure oxidation of the concentrate, • Recovery of 90% for Au, 92% for Cu, and 77% for Ag, • Eight year mine life at 200,000 oz Au/year,

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• Metal prices of $750/oz Au, $2.80/lb Cu, and $11.50/oz Ag, • Capital expenditures of $363 million, • Average cash cost of $272/oz Au, • Pre-tax operating cash flow of $669 million, • Pre-tax NPV (5%) of $177.9 million, • Payback approximately 35 months, and • Pre-tax IRR of 21.3%.

The above mineral reserve estimate is considered to be historical in nature and should not be relied upon. INV is not treating the historical estimates as current Mineral Resources or Mineral Reserves. The estimate is superseded by the estimates contained in Sections 14 and 15 of this Technical Report.

In April 2008, during the ongoing IAMGOLD PFS, the Constituent Assembly of Ecuador passed a mandate to revise the mining laws. The Government of Ecuador, through the Ministry of Mines and Petroleum, issued a 180 day suspension of all mining and exploration activity while the laws were being revised.

In October 2008, a new Ecuadorian Constitution was approved by the Constituent Assembly of Ecuador which established under Article 408 that non-renewable natural resources, such as mineral and petroleum deposits, could only be produced in strict compliance with the environmental principles set forth in the Constitution. The State shall receive net benefits in in an amount that is no less than the profits earned by the company producing them.

The new laws were approved at the end of January 2009 after which a new set of regulations were developed and ultimately approved in November 2009. In July and December of 2009, the Ecuadorian tax laws were amended. The amendment with the most significant impact on the mining industry was the application of a non-recoverable 12% value added tax (VAT).

Resumption of field activities was granted by the Ministry of Non Renewable Natural Resources of Ecuador on February 14, 2011.

Following a competitive bidding process in 2011, INV was selected by IAMGOLD to exclusively negotiate a purchase agreement. On June 22, 2012, INV entered into a share purchase

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 6-2 www.rpacan.com agreement with IAMGOLD and its two subsidiaries, AGEM Ltd. and Repadre Capital (BVI) Inc., to purchase a 100% interest in IAMGOLD Ecuador S.A.

Between March and July 2013, INV drilled 12 diamond drill holes totalling 3,684.7 m. The drill program included boreholes testing step-out targets to extend the deposit, deeper holes to test for stacked lenses at depth, holes to better define the margins of the high grade zone, and two holes drilled to obtain core samples for metallurgical testing.

In March 2015, a PFS, prepared by RPA, was published that envisaged operating the mine at a throughput of approximately 1,000 tpd. Based on an updated Mineral Resource model, and clarifications in the laws governing mining in Ecuador, the current PFS envisages operating the mine at a throughput of approximately 3,000 tpd. The current PFS supersedes the PFS published in March 2015.

There has been no production from the Loma Larga Project.

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7 GEOLOGICAL SETTING AND MINERALIZATION

REGIONAL GEOLOGY

Ecuador can be subdivided into a number of distinct physiographic provinces, which broadly coincide with the subdivision of the crust into several terranes (Figure 7-1). The Loma Larga property is located within the Ecuadorian cordillera, which consists of a number of narrow, north to northeast trending terranes which were formed during the separation of the Central and South American plates and accreted onto the Amazon Craton from the Late Jurassic to Eocene (Chiaradia, 2004). Most of the terranes extend for several hundreds of kilometres in a north-northeast direction and are only a few tens of kilometres wide. These terranes are separated by deep north-northeast trending faults. These terranes were built upon during the Tertiary and Quaternary by subduction related continental arc magmatism and reactivation of the terrane bounding faults.

The Project lies in the southern part of the Chaucha continental terrane, in the Western Cordilleran physiographic province, as shown in Figure 7-1 (RPA, 2005). The Chaucha terrane is defined by the northeast trending fault systems of Bulubulu on the northwest side and the Girón fault system on the southeast side (see Figure 7-2). These fault zones are interpreted to have been active during the entire evolution of the intervening basin. During each reactivation phase, fault movements influenced the location of some intrusive and subvolcanic bodies while some acted as channels for the mineralizing hydrothermal fluids.

The Chaucha terrane consists of Tertiary continental arc volcanic rocks deposited upon Cretaceous marine to fluvial sedimentary rocks, which in turn were deposited on basement Paleozoic and Mesozoic metamorphic rocks (MacDonald et al., 2010).

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 7-1 www.rpacan.com

Figure 7-1

INV Metals Inc.

Loma Larga Project Azuay Province, Ecuador Major Terranes of Ecuador

August 2016 Source: Modified from MacDonald et al., 2013. 7-2 www.rpacan.com

N

Figure 7-2

INV Metals Inc.

Loma Larga Project Azuay Province, Ecuador Regional Geology

August 2016 Source: Modified from MacDonald et al., 2012. 7-3 www.rpacan.com

LOCAL AND PROPERTY GEOLOGY

The Loma Larga property is located between the Gañarin fault to the northwest and the Girón fault to the southeast. A collapsed caldera structure, four kilometres in diameter, the remnant of an eroded stratovolcano, lies along (and probably emplaced and controlled by) the Gañarin fault and 400 m west of the main Loma Larga mineralization. The caldera is underlain by late felsic domes and is cut by a multi-phase diatreme. The north-south trending Rio Falso fault, which appears to be a conjugate fault linking the Gañarin and Girón faults, is the locus for alteration and mineralizing fluids (Figures 7-2 and 7-3).

The property and immediate surrounding area is mostly underlain by Upper Miocene volcanic and volcaniclastic rocks, of the Turi, Turupamba, Quimsacocha, and Tarqui formations (Valiant et al., 2006) (Figures 7-2 and 7-3). These formations are flat lying to gently dipping and usually do not outcrop on the property. The outcrops that are exposed form a radial pattern around the caldera and gently dip away from it to the south and east.

The Turi Formation consists of tuffaceous breccias, conglomerates, and sandstones with a high content of andesitic clasts and occasional clasts of tuffaceous breccia. The Turupamba Formation, exposed only in the southwestern corner of the property, is composed of rhyolitic to dacitic tuffs with a lesser amount of lapilli tuffs. The Turupamba Formation appears to be the result of numerous minor ash falls with periods of fluvial and lacustrine sedimentation. It overlies the Turi Formation, which in turn is overlain by the Quimsacocha Formation.

The property is largely underlain by the Quimsacocha Formation which hosts the Loma Larga deposit and consists of alternating andesitic banded lava flows with phenocrysts of fresh plagioclase and andesite tuffs and breccias, distributed radially only around the outside of the caldera.

The Tarqui Formation outcrops mainly on the eastern flank of the caldera where it overlies the Turi Formation. It unconformably overlies all older formations and has a maximum thickness of 400 m. Near the Loma Larga deposit, the Tarqui Formation mostly consists of strongly weathered quartz phyric rhyolite tuffs. In contrast, further north the unit is mainly composed of thinly banded tuffs, tuffaceous sandstones, and conglomerates. Plant remnants and coal are also common.

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Figure 7-3

INV Metals Inc. Image from Macdonald et al, September 2012 and modified by ORIX Loma Larga Project Azuay Province, Ecuador Property Geology

August 2016 Source: INV Metals Inc., 2016. 7-5 www.rpacan.com

Following caldera collapse, a post-mineralization volcanic intrusive event occurred, resulting in dacitic to rhyolitic domes and quartz-feldspar porphyritic dacite cryptodomes, emplaced into and around the caldera in the Pliocene. Accompanying these lithologies are caldera collapse related breccias and diatreme breccias, which locally contain mineralized clasts.

Much of the surface of the property is composed of Pliocene and Quaternary alluvial debris, glacial moraine, and lacustrine deposits.

MINERALIZATION

At Loma Larga, like in most typical high sulphidation epithermal systems, alteration is characterized by multiphase injections of hydrothermal fluids strongly controlled by both structure and stratigraphy. The alteration-mineralizing event is characterized by an early alteration phase caused by a strong inflow of volatile, acidic fluids which cooled progressively and were neutralized by their reaction with country rock, leading to the formation of silicified layers surrounded by alteration halos of clay minerals while the sulphides and gangue minerals associated with the mineralization were deposited by later fluids inside the silicified bodies (IAMGOLD, 2008).

The majority of the limited amount of outcrop exposed at Loma Larga exhibits silica alteration, due to its resistance to weathering. In epithermal environments the silica alteration displays evidence of hot acidic leaching. Multiple types of silica alteration occur at Loma Larga, including vuggy, sugary, banded, fracture fill, and hydraulic-breccia (MacDonald, 2010).

Alteration can be seen to be structurally controlled as it typically occurs as silica ribs mimicking fault locations and orientations. The most significant alteration zone, host to the deposit, is coincident with the north-trending Rio Falso fault, extending for over eight kilometres north- south, along the eastern edge of the collapsed caldera. This long, linear zone contains multiple large pods of silica alteration ranging up to two kilometres in east to west width (Figure 7-5). The location of the Rio Falso fault suggests that it was coeval with or postdates the caldera collapse (MacDonald, 2010).

The silica alteration is surrounded by varying widths of a halo of argillic alteration, grading from higher to lower temperature mineral assemblages including pyrophyllite, alunite, dickite, kaolinite, illite, and smectite.

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The high sulphidation epithermal gold-copper-silver mineralization in the Loma Larga deposit is also stratigraphically controlled as it occurs at lithological contacts between Quimsacocha Formation andesitic lavas and tuffs, and reaches greater thickness in the more permeable tuffs. The deposit is a flat lying to gently western dipping (less than ten degrees), north-south striking, cigar shaped body, which has a strike length of approximately 1,600 m north-south by 120 m to 400 m east-west and up to 60 m thick, beginning approximately 120 m below surface (cross section in Figure 7-4 and long section in Figure 7-5). It also dips slightly to the north, such that the mineralized zone is closer to surface at the south end. Resources are defined as a smaller, higher-grade subset within this mineralization.

Mineralized zones are characterized by multiple brecciation and open-space filling events and sulphides such as pyrite, enargite, covellite, chalcopyrite, and luzonite or, at lower sulphidation states, tennantite and tetrahedrite. Higher grade intervals typically coincide with increased amounts of enargite, minor barite, and intense hydraulic brecciation that contains subrounded to rounded silicified fragments. Visible gold is rare. Gold mineralization is found, for the most part, in one of the following mineralogical assemblages: (a) vuggy silica plus fine grained pyrite and enargite; (b) massive pyrite, including a brilliant arsenical pyrite; or (c) vuggy silica with grey silica banding, sulphide space-filling and banded pyrite. Very fine grained pyrite is dominant in semi-massive to massive zones, and is interpreted to have formed earlier than coarser fracture and vug-filling pyrite (MacDonald, 2010).

The focus of mineralization occurs at approximately 3,610 m (± 30 m) elevation, where structural feeder zone(s) intersected a permeable tuff horizon that was acid leached. There is an upper barren silicic lithocap, locally indicative of steam heated alteration, which is typically barren of mineralization, although there is an outcrop exposure of this zone that contains minor, fine visible gold (MacDonald, 2010). Silica textures within the upper zone range from sugary, to two-phase, massive, vuggy, and laminated, while the main body centred at 3,610 m exhibits either massive or vuggy silica with intense brecciation in the core and pervasive veinlet and vug infilling alunite alteration. A third lower silicified horizon described below is primarily vuggy in nature (MacDonald, 2010).

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 7-7 www.rpacan.com

Looking Northeast

Figure 7-4

INV Metals Inc. Loma Larga Project Azuay Province, Ecuador Cross Section of the Loma Larga Deposit

August 2016 Source: INV Metals Inc., 2016. 7-8 Looking West

7-9

Figure 7-5

INV Metals Inc. www.rpacan.com Loma Larga Project Azuay Province, Ecuador Longitudinal Section of the Loma Larga Deposit

August 2016 Source: INV Metals Inc., 2016. www.rpacan.com

Drilling has led to the recognition of a third, deeper zone of residual quartz, below approximately 3,550 m elevation. This horizon is typically 20 m in thickness, but is locally thicker. Because these deeper intersections can be correlated between several drill holes and sections, INV has interpreted the zone as a polylithic tuffaceous horizon (as opposed to a vertical feeder); mineralization is typically ten to twenty metres thick with gold grades of 1.0 to 3.0 g/t. IAMGOLD’s drilling on many sections stopped within ten to twenty metres of passing through the main zone, leaving the third horizon and potentially deeper ones virtually untested.

There may be multiple feeder structures along the north-south length of the deposit, possibly associated with north-northeast trending en-echelon structures (Hedenquist, 2013). It is interpreted that at least two vertical to sub-vertical feeder zones occur in the central to eastern part of the deposit, in the vicinity of IAMGOLD’s discovery hole IQD-122 (9.2 g/t Au over 102 m). Above this thick, high grade zone, there is an upper lens of mineralization that is included in the current resource as inferred based on the limited number of drill holes intersecting it. Significant drill hole intersections in the Loma Larga upper lens include 24.0 g/t Au over 9.0 m in drill hole IQD124 and 8.4 g/t Au over 30.7 m in drill hole IQD152501.

The presence of copper mineralized porphyry fragments within the diatreme exposed approximately one kilometre to the northwest of the current northern margin of the deposit, along with the zonation of decreasing copper in the deposit from north to south, suggests that the causative intrusion that drove the hydrothermal system is located to the north, and that fluid flow was from north to south. This is consistent with observation of chalcocite and chalcopyrite associated with stockworks of veinlets at depth in the north (Hedenquist, 2013). Evidence for a deeper porphyry copper-gold deposit is suggested by the following observations: • quartz veinlets with centre lines and margins of chalcocite to the north (IQD-109, approximately 317 m to 343 m at 2.02 g/t Au and 0.14% Cu as chalcocite; As values of less than 100 ppm);

• high Cu/As ratios to the north, i.e., enargite and tennantite poor despite Cu values greater than 0.1 wt%, suggesting the presence of chalcocite and/or chalcopyrite;

• broad illite-pyrite alteration with disseminated magnetite plus pyrite ± magnetite veinlets associated with a fragmental intrusion; and

• the diatreme to the northwest, on the eastern margin of the caldera, which contains quartz-feldspar porphyry fragments plus potassic and phyllic-altered clasts with anomalous copper (up to 0.1% Cu) and gold (up to 0.5 g/t Au), associated with quartz

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± magnetite ± pyrite veinlets with disseminated magnetite, chalcopyrite, chalcocite, covellite, and molybdenite (Hedenquist, 2013).

There are multiple exploration targets. Due to the government moratorium on exploration put in place in 2008, IAMGOLD’s Reserves and Resources were estimated on the basis of the drilling completed to date, even though the deposit remained open along the margins in many places. For example, INV’s 2013 drill hole LLD-367 intersected 4.9 g/t Au, 48.7 g/t Ag, and 0.51% Cu over a core length of 25.1 m, including 11.9 g/t Au, 78.7 g/t Ag, and 0.33% Cu over 6.2 m. This intersection is located approximately 165 m north of the northern limits of the current Loma Larga Mineral Resource. Additional drilling is required to determine if the mineralization is a continuous extension of the main zone of the Loma Larga deposit.

In 2013 INV carried out an in-depth exploration workshop with consultants Jeff Hedenquist and ORIX Geoscience Inc. (ORIX). Observations and recommendations derived from a report provided by Hedenquist (2013) are summarized below.

One of the primary aims of continued exploration on the Project is to locate and define vertical to sub-vertical feeder zones, as they are typically much higher grade than the flat lying mineralized horizons. More drilling is required to determine if the deeper, high grade drill hole intersections are isolated, related to feeders, or are higher grade zones within the stacked horizontal horizons. Hedenquist (2013) recommended various high interest drill hole intersections for future work, which are summarized below. • On Section 1100, approximately 50 m north of the relatively low grade intersections below the 3,550 m elevation, there are high grade, copper-rich intersections in drill hole IQD-149, with 9.0 m grading approximately 21 g/t Au at approximately 3,500 m elevation, including two metres at 77 g/t Au, 216 g/t Ag, and 3.1% Cu.

• On Section 1125 at an approximate elevation of 3,550 m, there is a five metre interval in the projection of drill hole IQD-324 with 14 g/t Au and 6.0% Cu.

• On Section 1150, 50 m to the north, there is 14 m of 24 g/t Au plus 8.5% Cu at approximately 3,530 m elevation, in the projection of drill hole IQD-174.

• On Section 1175, a broad high grade zone includes a seven metre interval at approximately 3,620 m elevation grading 158 g/t Au, 507 g/t Ag, and 7.3% Cu.

The relatively narrow gold- and copper-rich intervals between 3,550 m and 3,500 m elevation constitute bonanza-grade mineralization that may be hosted within a structurally related feeder zone, as at shallower depths, rather than being associated with the lower silicic horizon. Further north, similar high grade intervals that have been intersected at approximately 3,600

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 7-11 www.rpacan.com m elevation have yet to be tested at depth for possible structural control. For example, sections 1650 and 1675 each have significant gold and copper grades that appear rootless, but do not have a second hole (scissor hole) to test this interpretation. For example, IQD-279 on section 1650 reports 10.5 m of 37 g/t Au, 117 g/t Ag, and 3.4% Cu, and 25 m to the southeast at approximately 3,570 m, IQD-282 intersected 16 m at 19.5 g/t Au, 132 g/t Ag, and 4.1% Cu. On Section 1675, IQD-189 returned nine metres of 169 g/t Au, 190 g/t Ag, and 5.4% Cu, while 50 m to the southeast at approximately 3,580 m, IQD-197 reported 9.4 m at 17 g/t Au, 155 g/t Ag, and 2.5% Cu. It is unclear if drill hole IQD-128, which is located off the section, tested the potential root zone to the southeast, since IQD-226 returned five metres of 57 g/t Au, 98 g/t Ag, and 5.3% Cu from approximately 3,570 m elevation.

In addition to the deeper high grade zones that have yet to be tested for their potential depth extent, and the bonanza grades at approximately 3,600 m to 3,570 m, there are also shallower high grade zones that have not yet been tested. It is anticipated that drilling scissor holes would define their potential depth extent, and determine if the high grades are hosted in structurally related feeder zones. This includes, for example, IQD-323 on Section 1425, with 2.7 m of approximately 77 g/t Au, 89 g/t Ag, and 7.2% Cu at approximately 3,630 m elevation, at the base of the silicic zone.

At present many of the margins of the deposit need further drilling to be defined. There is still a significant amount of lateral potential that has been untested, [e.g., from Section 1100 to the north (including both northwest and southeast on Section 1150), at least to Section 1275]. In addition, deeper drilling is needed to define a horizon at approximately 3,550 m elevation.

The indications of porphyry potential at depth in the north, including veinlet stockwork with copper sulphides, is consistent with the lithocap alteration and high sulphidation-state sulfides of Loma Larga; the location of the intrusive centre of the porphyry and its depth remain to be determined by further study, and eventual drill testing.

South of the southern extent of the current Loma Larga Mineral Resource, on Section 650 there is a very silver-rich zone, with up to 3,180 g/t Ag, 0.2 g/t Au, and 0.1% Cu in IQD-265 at approximately 3,620 m, over a down hole depth of 2.4 m, near the base of the silicic zone, under the main mineralized horizon. The silver-to-gold ratio for the resources is approximately ten-to-one, or less, whereas the silver-rich intervals in IQD-263 and 265 are two hundred-to- one, or higher. Sections 700 and 750 to the north also have high silver-to-gold ratio

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 7-12 www.rpacan.com intersections on the northwest margin of the sections. For example, drill hole IQD-269 intersects four metres of 896 g/t Ag and 1.3 g/t Au, and drill hole IQD-269 intersects five metres of 566 g/t Ag and 3.8 g/t Au. The two drill holes intersect 0.3% Cu and 0.6% Cu, respectively. Given the uncertain mineralogy responsible for the high silver-to-gold ratio and resulting bonanza grades, INV commissioned Inspectorate Services Peru S.A. to carry out a mineralogical study using optical microscopy and electronic scanning. This study determined that the silver species present include silver sulphides (argentite - acanthite), sulfosalts (AgCuAs and CuAgAs) and sulphides (AgAs).

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8 DEPOSIT TYPES

Epithermal deposits are defined as precious and base metal deposits that formed at depths of less than two kilometres and at temperatures of less than 300°C in subaerial environments within volcanic arcs at convergent plate margins and in intra-and back-arc as well as post- collisional extensional settings (Robert et al., 2007). A hydrothermal system consisting of fluids derived at depth will undergo abrupt physical and chemical changes at the shallow depths where epithermal deposits form. These changes occur because of the change from lithostatic to hydrodynamic pressure, which results in boiling, interaction of the fluids with near-surface water, permeability changes, and reaction between the fluids and host rocks. These changes affect the capacity of the hydrothermal fluid to transport metals in solution. This decrease in the solubility of metals in the fluids results in the metals being deposited within a restricted space as a result of focussing of the fluid flow near the surface (White and Hedenquist, 1990).

Epithermal deposits are typically classified as either high or low sulphidation based upon the sulphidation state of the ore minerals; as enargite and luzonite for high sulphidation and chalcopyrite-galena-sphalerite for low sulphidation. The term high sulphidation is frequently misused to suggest a high sulphide or high sulphur deposit, whereas in fact it refers to the chemical state of the metals (the sulphur to metal ratio).

A schematic section through a high sulphidation gold deposit environment is provided as Figure 8-1. High sulphidation epithermal copper-gold-silver deposits develop in settings where volatiles (dominantly gases such as SO2, HF, and HCl) and metal bearing fluids vent from hot magma sources at considerable depth and travel rapidly to elevated crustal settings, without reaction with wall rocks, or mixing with groundwater. The volatile component, which rises more rapidly than the fluids, becomes progressively depressurized and SO2 in particular comes out of solution and in turn oxidizes to form H2SO4, such that the rising and cooling fluid becomes increasingly acidic (to pH of 1.0 to 2.0) as it ascends to epithermal levels, where it reacts with wall rocks to produce advanced argillic alteration. Because of the progressive cooling and neutralization of the hot acid fluid by wall rock reaction, the advanced argillic alteration is zoned outwards from a central core of vuggy or residual silica, from which everything but silica has been leached by the strongly acidic waters, through alteration zones dominated by alunite, pyrophyllite, dickite, kaolin, and then illite (Figure 8-1) (Corbett, 2005). Use of a portable infrared mineral analyzer (PIMA) has been critical in a number of discoveries, including Loma

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Larga, as it allows one to vector towards mineralization based on the zonation of the various clay alteration minerals.

The shape and intensity of alteration vary according to crustal level and permeability of the host rocks. At Loma Larga the acidic fluids preferentially altered the more permeable andesitic tuffs, sandwiched between more resistant and less altered andesitic lavas. The liquid rich phase of the high sulphidation hydrothermal fluid generally follows the volatile rich portion. Most copper-gold mineralization deposition, usually as sulphide breccia infill of competent vuggy silica and silica-alunite altered clasts, typically is associated with pyrite-enargite (and its low temperature polymorph luzonite) and lesser covellite (at deeper levels) and local, generally peripheral, tennantite-tetrahedrite, as well as barite and alunite, and post-dates the alteration.

The hot magma source for the hydrothermal system is frequently a copper-gold porphyry (Figure 8-2). Approximately half of the major high sulphidation ore deposits around the world have evidence for underlying porphyry mineralization, based on observations of deeply eroded systems (e.g., Minas Conga, Peru; Halilaga, Turkey), deep drilling (e.g., Far Southeast, Philippines), and porphyry-altered and mineralized clasts contained within diatremes (numerous systems, including Loma Larga) (Hedenquist, 2013).

The Far Southeast porphyry deposit located under and adjacent to the Lepanto high sulphidation deposit was discovered as a follow-up to the presence of copper-bearing porphyry fragments within a diatreme breccia exposed at surface. A similar situation occurs at Loma Larga, with a diatreme to the north and west of the gold deposit containing copper-mineralized, altered porphyry fragments, suggesting that at some unknown depth a copper ± gold porphyry may have driven the hydrothermal system responsible for forming Loma Larga.

High sulphidation deposits are the major gold producers in the Andes (e.g., Yanacocha, Pierina, El Indio, La Coipa, Veladero), and represent some significant undeveloped resources (e.g., Pascua-Lama and Loma Larga). Other global examples include Lepanto, Philippines; Pueblo Viejo, Dominican Republic; Mulatos, Mexico; Paradise Peak, Nevada; and Chelopech, Bulgaria.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 8-2 8-3

Figure 8-1

INV Metals Inc. www.rpacan.com Loma Larga Project Azuay Province, Ecuador Zonation of Alteration in a High Sulphidation Deposit August 2016 Source: After Arribas Jr., 1995. www.rpacan.com

Figure 8-2

INV Metals Inc. Loma Larga Project Azuay Province, Ecuador Schematic Section of a High Sulphidation Deposit

August 2016 Source: INV Metals Inc., 2016. 8-4 www.rpacan.com

9 EXPLORATION

INV carried out the exploration activities on the property described in Section 10, Drilling. Exploration activities by all previous owners are discussed in Section 6, History.

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10 DRILLING

IAMGOLD DRILLING

In 2002, IAMGOLD initiated diamond drilling programs based on the exploration information accumulated by previous operators as well as their own follow-up exploration programs. The Loma Larga deposit was discovered as a result of the 2004 drilling campaign, during which a total of 13,930 m were drilled in 45 holes. Four of the holes were drilled in the Loma Larga Zone, and returned encouraging results, including one sample of 214 g/t Au. From October 2005 to August 2006, IAMGOLD drilled an additional 24,542 m in 125 holes, of which approximately half was infill drilling and the remainder was undertaken to test for a possible extension.

IAMGOLD contracted two companies: Kluane and Paragon, to carry out drilling. All work was done by diamond core drilling and the core diameters used were HQ (63.5 mm) and NQ (47.6 mm) for Paragon and NT (56 mm) and BT (42 mm) for Kluane. All collars were surveyed. Most of the holes were drilled at -55° to -65° but ranged from -45° to -90°. All core obtained from the drilling was placed in wooden boxes and transferred to the logging room at the field camp for logging and sampling for assay. Core diameter depended on the drill type used by each company.

From 2002 to December 2007, IAMGOLD drilled a total of 65,117 m in 280 holes (IAMGOLD, 2009).

No drilling was carried out between 2008 and 2012.

INV DRILLING

After acquiring the Project in 2012, INV contracted ORIX to carry out a detailed 3D compilation and reinterpretation of the deposit, with the goals of furthering the understanding of the deposit and identifying drill targets. Geoscience North was engaged to review and compile all previously collected geophysical data, which was then integrated into the ORIX compilation. INV’s drill program in 2013 included 12 diamond drill holes totalling 3,684.7 m, including two

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 10-1 www.rpacan.com holes drilled for metallurgical testwork, three holes to further define the high grade main zone, and seven holes to test step-out targets to extend the deposit (Figure 10-1).

Holes LLD-371 and LLD-372 were drilled to obtain material for metallurgical testwork. The metallurgical drilling in the high grade zone clearly demonstrates that the Loma Larga gold deposit contains a high grade core surrounded by a lower grade halo. For example, drill hole LLD-371 intersected 77 m grading 13.7 g/t Au, including 20 m grading 34 g/t Au, while LLD- 372 intersected 36.5 m grading 11.8 g/t Au including 6.3 m grading 47.7 g/t Au. Holes LLD- 373 to LLD-375 were drilled to better define the margins of the high grade zone.

The results for these holes are provided in Table 10-1.

TABLE 10-1 METALLURGICAL AND HIGH GRADE ZONE DRILL RESULTS INV Metals Inc. – Loma Larga Project

From To Width True Width* Au Ag Cu Hole (m) (m) (m) (m) (g/t) (g/t) (%) LLD-371 105.00 182.00 77.00 77.00 13.65 40.15 0.52 including 132.00 152.00 20.00 20.00 33.95 98.84 1.23 and 158.00 163.00 5.00 5.00 12.21 24.96 0.36 LLD-372 142.50 179.00 36.50 36.50 11.80 79.57 0.93 including 170.00 176.30 6.30 6.30 47.72 217.32 3.32 LLD-373 48.50 54.86 6.36 6.36 1.66 8.54 0.12 166.50 171.00 4.50 4.50 10.36 57.30 2.90 including 167.50 168.60 1.10 1.10 38.20 214.90 11.21 LLD-374 53.40 69.00 15.60 15.60 2.73 15.69 0.77 including 56.40 60.40 4.00 4.00 4.65 30.48 1.29 and 65.00 69.00 4.00 4.00 4.46 5.59 1.00 133.50 146.00 12.50 12.50 2.81 15.58 0.24 including 133.50 137.00 3.50 3.50 5.14 34.00 0.50 and 143.80 146.00 2.20 2.20 5.01 14.44 0.43 LLD-375 124.00 162.00 38.00 37.90 3.27 55.65 0.23 including 155.00 162.00 7.00 7.00 6.83 131.21 0.19 and 128.00 131.00 3.00 3.00 6.60 48.10 0.14

*True Width is an estimation taking into account both the dip of the borehole and the interpreted dip of the mineralized zone of 10° to the west.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 10-2 LLD364 LLD369

LLD372 LLD374 LLD373 Upper Zone LLD370 LLD375 LLD371

LLD368 LLD367

10-3

LLD365

Main Zone

LLD366 Lower Zone

Figure 10-1

INV Metals Inc. www.rpacan.com 050100 150 200 250 Loma Larga Project Metres Azuay Province, Ecuador Location on INV 2013 Drill Holes August 2016 Source: RPA, 2016. www.rpacan.com

The remainder of the drilling tested regional targets developed by INV and ORIX during the detailed compilation and reinterpretation of the database (Table 10-2).

TABLE 10-2 REGIONAL DRILL RESULTS INV Metals Inc. – Loma Larga Project

From To Width True Width* Au Ag Cu Hole (m) (m) (m) (m) (g/t) (g/t) (%) LLD-364 158.25 173.73 15.48 13.80 3.12 148.40 0.98 including 158.25 163.00 4.75 4.20 6.42 319.60 2.34 including 158.25 160.00 1.75 1.60 10.95 535.70 4.49 LLD-365 293.40 307.00 13.60 12.10 3.81 19.62 0.14 including 297.05 306.00 8.95 8.00 4.57 20.95 0.18 LLD-366 249.10 249.93 0.83 0.70 6.47 2.10 0.01 LLD-367 218.70 243.84 25.14 23.90 4.87 48.70 0.51 including 221.85 228.00 6.15 5.90 11.90 78.70 0.33 LLD-368 251.00 257.00 6.00 5.80 3.72 33.23 0.33 including 252.00 255.00 3.00 2.90 4.46 30.23 0.33 LLD-369 260.00 262.55 2.55 ** 1.16 3.70 0.42 299.00 302.00 3.00 ** 2.28 3.00 0.19 LLD-370 86.00 132.50 46.50 44.65 2.77 8.00 0.06 including 87.00 92.00 5.00 4.80 5.89 9.22 0.08 and 112.00 126.00 14.00 13.40 4.33 13.83 0.11 including 113.00 117.00 4.00 3.80 5.32 22.88 0.16 137.00 159.70 22.70 21.80 5.28 19.40 0.23 including 138.00 142.00 4.00 3.80 12.64 23.93 0.42 341.75 353.00 11.25 ** 1.68 5.48 0.19 including 341.75 346.00 4.25 ** 2.42 4.59 0.28 377.00 379.00 2.00 ** 4.28 14.50 1.32

*True Width is an estimation taking into account both the dip of the borehole and the interpreted dip of the mineralized zone of ten degrees to the west.

**For these intersections true width cannot currently be estimated as the mineralized intercepts are possibly along structural feeders of unknown inclination.

The objective of the step-out drill program was to expand the gold resource in areas where the deposit is open and untested, including a regional target referred to as Loma Larga West, and deeper holes to test for stacked lenses at depth beneath the main zone. The first hole, LLD- 364, was drilled as an 85 m step-out north of the current Mineral Resource, and 40 m north of a significant gold intersection from a historic drill hole. The drill hole intersected 15.5 m grading 3.1 g/t Au, 148.4 g/t Ag, and 0.98% Cu. Four drill holes, LLD-365 to LLD-368, tested the Loma Larga West target, a 1.2 km long north-northwest trending zone parallel to, and west of, the current Mineral Resource. The target has a magnetically low signature, similar to that of the

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Loma Larga deposit, with positive drill results in historic drilling at both ends of the magnetic anomaly, and no drilling within the 1.2 km target. The most significant zone of mineralization was intersected in drill hole LLD-367, which returned assay values of 4.9 g/t Au, 48.7 g/t Ag, and 0.51% Cu over a core length of 25.1 m, including 11.9 g/t Au, 78.7 g/t Ag, and 0.33% Cu over 6.2 m. This intersection is located approximately 165 m north of the northern limits of the current Mineral Resource, and additional drilling is required to determine if the mineralization is a continuous extension (Figure 10-2). Drill hole LLD-365 intersected 13.6 m grading 3.8 g/t Au, 19.6 g/t Ag, and 0.14% Cu. Drill hole LLD-368 intersected six metres grading 3.7 g/t Au, 33.2 g/t Ag, and 0.33% Cu.

Drill hole LLD-369 was drilled to a depth of 422.1 m on the eastern side of the deposit, 75 m outside of the defined Loma Larga resource margin, to test a northwest-southeast trending structure, and to follow up a significant historical drill hole intersection not currently included in the resource. The highest grade intersection in drill hole LLD-369 was three metres grading 2.3 g/t Au, 3.0 g/t Ag, and 0.19% Cu.

LLD-370 was drilled to a depth of 402.3 m, testing for potential stacked lenses below the main and lower lenses of the resource. The drill hole was located in a 350 m zone with no drill holes, and flanked by two historic drill holes that intersected gold mineralization. Above the target horizon, two zones were intersected containing 46.5 m grading 2.8 g/t Au, 8.0 g/t Ag and 0.06% Cu, which included 14.0 m grading 4.3 g/t Au, 13.8 g/t Ag, and 0.11% Cu, and 22.7 m grading 5.3 g/t Au, 19.4 g/t Ag, and 0.23% Cu. The deeper target horizon returned 4.3 m grading 2.4 g/t Au, 4.6 g/t Ag, and 0.28% Cu, and two metres grading 4.3 g/t Au, 14.5 g/t Ag, and 1.3% Cu.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 10-5 Upper Zone

4.9 g/t Au over 25.1 m Including 11.9 g/t over 6.2 m Main Zone

10-6

3.7 g/t Au over 6.0 m Including 4.5 g/t over 3.0 m

LLD368 LLD367

Au Grade (g/t) Figure 10-2 < 1

www.rpacan.com 1 - 3 INV Metals Inc. 3 - 6 6 - 8 Loma Larga Project 8 - 10 0 50 100 Azuay Province, Ecuador 10 - 30 Metres Gold Grades Intersected in > 30 Drill Hole LLD-367 and LLD-368

August 2016 Source: RPA, 2016. www.rpacan.com

11 SAMPLE PREPARATION, ANALYSES AND SECURITY

As part of the current Mineral Resource estimate, RPA compiled and reviewed all of the Loma Larga Project Quality Control (QC) sample results for INV’s 2013 drilling campaign and also completed a procedural and statistical review of all historical QC data on the Project.

In RPA’s opinion, the results of the QC samples, together with the QA/QC procedures implemented by INV at Loma Larga, provide adequate confidence in the data collection and processing, and the assay data is suitable for Mineral Resource estimation.

PRE-2012 PROGRAMS

No information is available on the procedures utilized for the drill campaigns conducted by Newmont (1992-1993) and COGEMA (now AREVA) (1994-1996), and assay results from those programs are not included in the current Mineral Resource.

From 2002 to 2008, sample preparation, analysis, and security on the Loma Larga Project were conducted by IAMGOLD. This work is summarized in this section from IAMGOLD (2009) and RPA (2012).

No drilling or sampling occurred on the Loma Larga Project between 2008 and 2012.

SAMPLE COLLECTION IAMGOLD collected samples for geochemical analyses primarily in mineralized zones. Geological criteria (feeders, hydrothermal breccias, mineralization styles, etc.) guided sample length, to a maximum of two metres. For intervals where core loss was recorded, sample length may be more than two metres.

After the drill core was logged, boxes tagged, and samples identified, all selected samples were cut in half with a diamond saw. One half was sent for geochemical analysis; the other returned to the box and later transferred to a secure warehouse at the IAMGOLD exploration office in the city of Cuenca, Ecuador. Care was taken to prevent contamination, accidental

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 11-1 www.rpacan.com swapping, or loss during crating and transportation of the core. IAMGOLD personnel transported the core from the Project to Cuenca and a shipping contractor was used to transport the core on to Quito.

Sample collection was completed at the Project camp using the following methodology: • Core was marked every metre from the collar down to the bottom of the hole to check and correct driller’s metre marks.

• For each hole, a digital file was created and all core boxes were photographed and identified by their “FROM” and “TO” depths.

• Geotechnical followed by geological logging was carried out and then saved in a dedicated database.

• The core was sampled by cutting in half using a Boart diamond saw with an eight inch blade.

• Samples were tagged for geochemical, metallurgical, and geotechnical tests.

• Samples were crated and shipped to the IAMGOLD Cuenca regional office where they were numbered, and QC samples (standards and blanks) were placed into the sample stream at predetermined frequencies.

• Four to five sample bags were grouped into rice bags that were sealed with tie-wraps and shipped to the assay laboratory. A copy of the sample checklist held inside each rice bag was also forwarded to the assay laboratory. A laboratory employee cross- checked the list upon reception and faxed the list to IAMGOLD’s Quito office where it was reviewed for inconsistencies.

• All pulps and rejects were kept at the laboratory’s yard. Only check assay pulps and rejects were discarded.

DENSITY SAMPLING To estimate rock densities at the Project, IAMGOLD took representative samples of typical lithologies, alteration, and mineralization types. Samples were approximately three centimetres in length, and density was determined by the Archimedes principle.

IAMGOLD’s density sampling procedure consisted of: 1. Identifying a representative zone (lithology and grade) and selecting a three centimetre sample of core.

2. Weighing the sample dry.

3. Immersing the sample in melted paraffin.

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4. Weighing the sample and paraffin.

5. Weighing the sample and paraffin in water.

IAMGOLD compiled a database of 10,794 density measurements, of which 3,333 were used for the current Mineral Resource estimation (see Section 14).

In the opinion of RPA, the density measurements are suitable for use in the Resource estimate.

SAMPLE PREPARATION AND ASSAY PROTOCOLS All samples were sent to internationally recognized and independent laboratories for preparation and testing. Prior to September 2004, samples were prepared in Quito by ALS Chemex and analyzed by ALS Chemex laboratory in North Vancouver, Canada. IAMGOLD’s system of check samples identified inconsistent results for ALS Chemex and from October 2004 onward (to the end of drilling by IAMGOLD by 2008); samples were prepared by Inspectorate del Ecuador S.A. in Quito and analyzed by BSI Laboratories in Lima, Peru (BSI). Both analytical laboratories are accredited to ISO/IEC 17025 for specific registered test, and certified to ISO 9001 standards.

The sample preparation and assay procedures are summarized below. 1. Samples were dried, if necessary.

2. The entire sample was crushed to 95% passing 10 mesh.

3. 1,000 g was riffle-split and pulverized to 90% passing 150 mesh.

4. A 250 g portion of each sample was returned to IAMGOLD.

5. Each sample was analyzed for Au and Ag by fire assay and for a multi-element package using an aqua regia digestion with an inductively coupled plasma (ICP) finish.

6. Assay results were sent by the laboratory to IAMGOLD by email, followed by a hard copy assay certificate.

7. Results were imported into IAMGOLD’s database.

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INV 2013 DRILL PROGRAM

SAMPLE COLLECTION Collection of core samples was carried out in mineralized or altered zones. The sample length was determined according to geological criteria (feeder zones, hydrothermal breccias, mineralization styles and percentages, etc.) with a maximum length of two metres; samples do not cross geological or hydrothermal alteration contacts. One metre sample lengths were the default size within homogenous mineralized zones. At intervals where there was core loss, the sample length may be more than two metres. Periodic sampling of barren-looking wall rocks was done to ensure no cryptic mineralization was missed. After logging and tagging, all selected samples were cut in half with a diamond saw. For the two metallurgical drill holes (LLD371 and LLD372), the core was split in half, with one half sent for routine analysis (see Sample Preparation and Assay Protocols). The remaining half was then quarter-split, with one quarter retained as a permanent record, and one quarter shipped to Lakefield, Ontario, for metallurgical testwork.

Core logging was carried out at INV’s base camp, Campamento Cristal, and consisted of the following activities: • Core boxes, core blocks, and sample intervals were all well marked with marker blocks nailed into place and positions marked on sides of trays.

• Aluminum tags were used to provide permanent markings on core blocks.

• Core photos were taken using a custom photo stand and tripod to provide a uniform field of view and high resolution photos.

• Core recovery and basic geotechnical data was collected at the same time that the driller’s core run marker block position was checked.

• Core was labelled at one metre intervals and then logged by a project geologist, who marked sample intervals.

The samples were double bagged in high density, clean, unused, transparent plastic bags. Each sample was assigned a unique sample number, and labelled with permanent marker. A pre-printed paper sample ticket was placed inside each sample. Once the samples were bagged they were sealed. The sample bags, up to a maximum of six, were placed inside of jute sacks, and labelled very clearly with the name of the project and the number of the samples in each sack. The sacks were then placed in secure, sturdy fabric bags, and locked with tamper proof seals for transport to the preparation laboratory.

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Both the retained core and the samples to be dispatched for analysis were transported by INV personnel from the Loma Larga site to Cuenca. In Cuenca, the samples taken for analysis were trucked by Transportes Ortiz, a local trucking company, to the preparation laboratory in Quito. All retained core is stored at INV’s core storage facility located on the property.

Sample preparation was carried out by Inspectorate del Ecuador S.A. (Inspectorate), part of the Bureau Veritas Group, at their office located at Calle Garcia Moreno 886 y Calle 23 de Abril, Llano Grande-Quito, Ecuador. Following sample preparation, Inspectorate sent the prepared samples by air freight to their analytical laboratory at Av Elmer Faucett 444, Callao- Lima, Peru. Inspectorate holds an international certificate for ISO 9001:2008 and fulfills NTP- ISO 17025:2006.

DENSITY SAMPLING No density sampling was carried out by INV. IAMGOLD had previously compiled an extensive database of density values.

SAMPLE PREPARATION AND ASSAY PROTOCOLS Sample preparation and analytical procedures are as follows: • Samples are dried, if necessary.

• The entire sample is crushed to 95% passing 10 mesh.

• 1,000 g is riffle-split and pulverized to 90% passing 150 mesh.

• 200 g samples are returned to INV’s Quito office to recode in a simple random ID_INV to ID_LAB code.

• Reference material and blanks are inserted by INV personnel.

• Samples are assayed for gold by fire assay and a multi-element package using an aqua regia digestion with an ICP finish.

• Assay data is emailed simultaneously to INV’s Quito office and independent Qualified Person Matthew Gray as both Excel and PDF files (the latter as the digital equivalent of an assay certificate).

In RPA’s opinion, the sample preparation, security, and analytical procedures are adequate to support a Mineral Resource estimate.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 11-5 www.rpacan.com

RESULTS OF QA/QC PROGRAMS

Quality Assurance (QA) consists of evidence to demonstrate that the assay data has precision and accuracy within generally accepted limits for the sampling and analytical method(s) used in order to have confidence in future resource estimations. Quality Control (QC) consists of procedures used to ensure that an adequate level of quality is maintained in the process of sampling, preparing, and assaying the exploration drilling samples. In general, QA/QC programs are designed to prevent or detect contamination and allow assaying (analytical) precision (repeatability) and accuracy to be quantified. In addition, a QA/QC program can disclose the overall sampling-assaying variability of the sampling method itself.

PRE-2012 PROGRAMS No QA/QC results are available for programs prior to 2002. All results and discussion in this section relate to IAMGOLD’s campaigns from 2002 to 2008.

IAMGOLD developed an industry standard QA/QC program for the Project early on in the exploration work, which consisted of the regular submission of blanks, duplicates, and standards. Furthermore, IAMGOLD defined control limits and implemented procedures to follow up results that were at or exceeded these limits (see below). The reader is referred to IAMGOLD (2009) for a comprehensive overview of the QA/QC program from 2002 to the completion of the latest drill campaign at the end of 2007.

IAMGOLD inserted Certified Reference Material (CRM or analytical standard) and blank samples, each at a rate of one in every 15 samples (6.7%). In addition, for every 20 samples, a pulp duplicate was prepared and submitted, and ten percent of the pulp samples were split and sent to a second laboratory (replicates). Pulp replicates were introduced in 2005. IAMGOLD randomly selected samples every three months to be re-analyzed at ALS Chemex (the secondary laboratory).

From 2002 to 2008, a total of 1,015 CRMs and 714 blank samples were inserted into the process stream. IAMGOLD also collected 1,046 pulp replicates, 456 pulp duplicates, and 263 triplicates for comparative analysis (Table 11-1).

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IAMGOLD purchased CRMs from Rocklabs Ltd. (Rocklabs) of New Zealand to reflect the grades expected at the Project. Table 11-2 lists the CRM name, grade, mean, standard deviation, and the number of CRMs used during the drilling program.

TABLE 11-1 QA/QC REVIEW SUMMARY - 2002-2008 INV Metals Inc. – Loma Larga Project

Pulp Pulp Blanks CRM Metal Duplicates Replicates No. No. No. No. 2006-2008 Au 42 39 39 48 Ag 42 39 39 48 All (2002-2008) Au 714 456 263 1,015 Ag 714 456 263 1,015

TABLE 11-2 CRMS USED IN 2002-2008 INV Metals Inc. – Loma Larga Project

Gold Mean Standard Tolerance Limit Years CRM No (ppb) Deviation (± 3SD) Used SN16 294 8,367 217 ± 651 2002-2008 SG14 289 989 44 ± 132 2002-2008 SI15 278 1,805 67 ± 201 2002-2008 SH13 45 1,315 34 ± 102 2002-2006 SJ10 109 2,643 Not known Not known 2002-2006

Silver Mean Standard Tolerance Limit Years CRM No (ppm) Deviation (± 3SD) Used SN16 294 17.64 0.96 ± 2.88 2002-2008 SG14 289 11.12 1.03 ± 3.09 2002-2008 SI15 278 19.68 1.02 ± 3.06 2002-2008 SH13 45 - - - 2002-2006 SJ10 109 - - - 2002-2006

Once results from the analytical laboratory were uploaded, IAMGOLD personnel would plot the control sample results to determine if the analyses for CRMs, blanks, and duplicates were within pre-defined limits. IAMGOLD would follow up on all failures in the following way: 1. Notified IAMGOLD Technical Management.

2. Requested a new analysis on the failed sample. In the case of a failed CRM, the five samples analyzed prior to and after the CRM would also be re-analyzed.

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3. When the new analyses were received, a decision was made on how to handle the results. This included rejection of the initial batch results, re-submittal of the samples, or averaging the original and re-analyzed batch.

4. Once final certificate was verified, results were submitted to the Project database.

In August 2005, Lynda Bloom of Analytical Solutions Ltd., Toronto, conducted a review of the QC program. In general, Ms. Bloom concluded there was no evidence of contamination in the analysis of the 2005 diamond drill samples. Gold assays were biased low by approximately five percent based on reported values for CRMs and comparisons with ALS Chemex assays. A comparison of BSI and ALS Chemex silver and copper assays demonstrated there were biases depending on grade. Ms. Bloom recommended that analytical procedures at both laboratories should be investigated to determine the differences. Ms. Bloom also recommended that the IAMGOLD QC program should be augmented by studies of the laboratory pulp duplicate assays as well as duplicate assaying of preparation and core samples.

Scott Wilson RPA (2006) compiled and reviewed all of the Project QC sample results for the 2006 drilling program and concluded that the statistics and scatterplots of the CRMs and duplicate samples revealed a high degree of assay precision and accuracy, and that the results of the blank samples suggested that contamination was not an issue at the Project. Scott Wilson RPA (2006) reviewed only the gold results, as gold represented approximately 90% of the unit value of the mineralization.

IAMGOLD (2009) reviewed the QA/QC results for gold only, for all of the drilling completed on the Project, and RPA (2012) evaluated the results of IAMGOLD’s final drilling program in 2007 (i.e., all drilling that occurred after the effective date of Scott Wilson RPA, 2006) for gold, silver, and copper.

During IAMGOLD’s drilling campaigns, control samples included 714 blanks, 1,015 CRMs, 456 pulp duplicates, and 263 pulp triplicates (Table 11-1).

RPA reviewed the results for the CRMs, and although there are no failures, RPA notes that there is a low bias to gold results for SG14 (15 of 18 samples returned values below the certified value) and silver results for SN16 and SI15 (all analyses are less than the certified mean minus one SD) and SG14 (16 of 18 are less than the certified mean minus one SD).

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This suggests that the silver assay results may be low, at least for silver grades less than 20 g/t.

Of the 42 blank samples analyzed, a single sample returned a gold value (10 ppb Au) greater than detection limit (5 ppb Au), which is still within the control limits (three times detection limit is equivalent to 15 ppb Au). These results, along with conclusions reached by Bloom (2005) and Scott Wilson RPA (2006), indicate that there is no evidence of gold or silver contamination at the Project.

RPA examined scatterplots of the pulp duplicate and triplicate (replicate) assays. The results showed excellent agreement between the primary laboratory duplicates and triplicate gold and silver assays. Both sets of data had R-squared values of 0.98 to greater than 0.99 (a near perfect correlation) and a coefficient of variation of 0.98.

In RPA’s opinion, the results of the QC samples, together with the QA/QC procedures used during IAMGOLD’s ownership of the property provide adequate confidence in the data collection and processing, and the assay data is suitable for Mineral Resource estimation.

2013 PROGRAM In July 2013, INV completed a 12-hole drilling program at Loma Larga, collecting and assaying 1,561 samples. During the drilling campaign, INV maintained a rigorous QA/QC program that incorporated the regular submission of blanks, duplicates, and standards. Specifically, the program included: • Preparation duplicates (a second pulp prepared from the coarse reject) were prepared and inserted every 20 samples according to the downhole sampling sequence.

• Assay duplicates (a second analysis of the same pulp) were prepared concurrently with the preparation duplicates, every 20 samples according to the same downhole sequence as the preparation duplicates.

• Field duplicates were inserted one in every 40 drill samples, with the duplicate pair consisting of a pair of quarter core samples obtained from the original half core that would have normally been sent for assay.

• Ten percent of all pulps were sent for check assay (pulp replicates) to a secondary laboratory, ALS Chemex in Vancouver, British Columbia (ALS Chemex is independent from INV).

• CRMs for gold and silver, in the form of pulps, were inserted into the sample stream at a ratio of one in every fifteen samples, independent of the duplicates. CRMs were

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commercially prepared sourced from Rocklabs in New Zealand. Gold standards included three different grades ranging from less than 1 g/t Au to greater than 8 g/t Au.

• Blank pulp samples were inserted into the sample after each high grade standard (SN16), and at regular intervals throughout the sample stream. RPA notes that the analysis of a blank pulp does not provide information on possible cross contamination during the sample preparation process. INV initially used commercial sand as the blank, but subsequently prepared and certified an in-house rock blank standard. Commencing with the final drill hole of the 2013 program, INV inserted the in-house blank consisting of uncrushed rock into the sample stream in intervals thought to be mineralized. These blank samples provide information on possible cross contamination during the sample preparation process. Only three in-house blanks have been analyzed, and there is insufficient data to permit a statistical analysis.

For the current Mineral Resource estimate, RPA reviewed the QA/QC results of INV’s 2013 drilling campaign at Loma Larga. Table 11-3 lists the drill holes, all of which were completed after the effective date of RPA’s 2012 Mineral Resource estimate.

TABLE 11-3 2013 DRILLING PROGRAM INV Metals Inc. – Loma Larga Project

Hole Hole ID Hole Hole ID 1 LLD364 7 LLD370 2 LLD365 8 LLD371 3 LLD366 9 LLD372 4 LLD367 10 LLD373 5 LLD368 11 LLD374 6 LLD369 12 LLD375

During the 2013 drill campaign, 74 CRMs and 68 blank samples were inserted into the process stream. INV also collected 24 field duplicates, 77 pulp duplicates, 77 reject duplicates, and 167 pulp replicates (check assays sent to secondary laboratory) as listed in Table 11-4.

TABLE 11-4 QA/QC REVIEW SUMMARY – 2013 DRILLING PROGRAM INV Metals Inc. – Loma Larga Project

Blanks Field Dup. Pulp Dup. Reject Dup. CRM Check Assays Metal Count Count Count Count Count Count Au 42 24 77 77 74 167 Ag 42 24 77 77 74 167 Cu 42 24 77 77 0 167

Results from the analytical laboratory are imported into the INV’s exploration database and plotted to determine if the control sample results are within pre-defined limits. If the analysis

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 11-10 www.rpacan.com for a CRM is outside a two standard deviation range of the CRM certified gold content, INV requests a new analysis from the laboratory, including five samples upstream and five samples downstream of the suspected failed sample. When the new analyses are received, INV personnel decide how the repeated analyses are managed. This includes rejection of the original batch, averaging of the original and repeat results, or re-submittal of the entire batch.

If duplicate mineralized sample results differ by more than 20% from the original assays, unless the values are insignificant and outside the resource, a new analysis is requested on the first, second, and third pulps. Once the problem is identified, a new analysis of the batch is requested by INV, if needed.

Dr. Matthew Gray of Resource Geosciences Inc., an independent consultant to INV, conducted a review of the drilling database of this campaign, including a statistical and procedural QA/QC review (Gray, 2013). RPA notes that Dr. Gray only reviewed the results for gold.

Dr. Gray compared analyses from the original laboratory certificates with INV digital database. Approximately 20% of the samples were verified in this manner and no discrepancies were observed. In addition Dr. Gray conducted a statistical review of the drill hole database, analyzing the assay results for mineralized standards, blanks, preparation and assay duplicates, and independent laboratory check assays, and determined that the gold assays provided by Inspectorate are reliable.

Dr. Gray concluded that field duplicates demonstrated variability indicative of primary heterogeneity of the gold distribution (i.e., “nugget effect”), and that field duplicate data overestimates the sampling error because field duplicates are quarter core samples. Nonetheless, there is no significant bias between the sample sets. Gray noted a mislabeled field bank and a significant control sample failure, which was followed up satisfactorily by INV. Coarse reject and pulp duplicate results, once mislabeling errors were accounted for, were acceptable. Check assays performed at a secondary laboratory were materially equivalent for gold, silver, and copper, without significant bias.

Dr. Gray recommended that INV conduct field duplicate analyses using half core field duplicates in order to determine if half core samples are adequately sized to provide sampling error within acceptable limits. Furthermore, Dr. Gray suggested that metallic sieve fire assays of representative intervals of high grade zones be conducted using the existing core library.

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CERTIFIED REFERENCE MATERIAL INV used three CRMs obtained from Rocklabs, certified for gold and silver: SG14, SI15, and SN16. The CRMs were inserted as pulps into the sample stream after the laboratory had completed its sample preparation, thus testing the analytical accuracy of the laboratory, but not contamination during sample preparation. INV inserted a total of 74 CRMs for 12 drill holes in 2013.

Table 11-5 lists the CRM name, expected mean, standard deviation, and the number of CRMs inserted during the drilling program. No copper CRM was used during the 2013 drilling campaign.

TABLE 11-5 CRMS USED IN 2013 DRILLING PROGRAM INV Metals Inc. – Loma Larga Project

Gold CRM No Mean (g/t) St. Dev. SG14 25 0.989 0.044 SI15 21 1.805 0.067 SN16 28 8.367 0.217

Silver CRM No Mean (g/t) St. Dev. SG14 25 11.12 1.03 SI15 21 19.68 1.02 SN16 28 17.64 0.96

Using INV’s criterion, four of the 74 results failed (5.4%) for gold, which is slightly higher than the three percent that would be expected to fall outside the limits. Of these four failures, two returned assayed values greater than ten percent above the certified mean and one failure was greater than ten percent below the certified mean. The failures were deemed to be minor and no re-analyses were requested by INV. The mean gold content reported by Inspectorate for all gold control samples was within three percent of the certified mean for all three CRMs (Table 11-6).

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TABLE 11-6 SUMMARY OF CRM RESULTS INV Metals Inc. – Loma Larga Project

Gold CRM Number Observed Au (g/t) Expected Au (g/t) % Diff. Observed to Mean Std. Dev. Mean Std. Dev. Expected Mean SG14 25 0.978 0.036 0.989 0.044 -1.11 SI15 21 1.748 0.063 1.805 0.067 -3.17 SN16 28 8.631 0.199 8.367 0.217 +3.15

Silver CRM Number Observed Ag (g/t) Expected Ag (g/t) % Diff. Observed to Mean St. Dev. Mean St. Dev Expected Mean SG14 25 11.168 0.532 11.12 1.03 +0.43 SI15 21 19.429 0.450 19.68 1.02 -1.28 SN16 28 18.182 0.805 17.64 0.96 -3.07

RPA chose to evaluate the QA/QC results within a more conventional three standard deviation range of the CRM certified gold content. Observed results that fell outside this range were deemed to be failures. Using this criterion, one of 74 results failed (1.35%): a single control sample result fell greater than three standard deviations above the mean (+16%).

RPA further notes that although observed results from CRM SG14 do not show an obvious bias, bias is observed in both SI15 and SN16 (Figures 11-1 to 11-3). The observed results from SI15 are clearly biased low, and the observed results from SN16 are biased high. RPA recommends that INV follow up the high bias observed in SN16.

INV noted a significant control sample gold failure in Job 13-703-00313-01 and subsequent follow-up determined a laboratory error was the cause. A sequence of 20 samples was re- assayed (46464 to 46484), and RPA reviewed the corrected data.

Using INV’s criterion to evaluate silver control sample analyses, there were no failed results. All observed assay results fell within the two standard deviation range of the CRM certified silver content (Figures 11-4 to 11-6). RPA observes, however, that there is a high bias in the silver analyses for CRM SN16 when testing resumed after a brief hiatus (Figure 11-6). Although the grade of silver of this analytical standard (17.64 g/t) is well below the average grade of the Loma Larga Mineral Resource, RPA, nonetheless, recommends that INV follow up the results with the laboratory.

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FIGURE 11-1 GOLD CONTROL CHART: CRM SG14

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FIGURE 11-2 GOLD CONTROL CHART: CRM SI15

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FIGURE 11-3 GOLD CONTROL CHART: CRM SN16

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FIGURE 11-4 SILVER CONTROL CHART: CRM SG14

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FIGURE 11-5 SILVER CONTROL CHART: CRM SI15

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FIGURE 11-6 SILVER CONTROL CHART: CRM SN16

BLANKS Contamination and sample numbering errors are assessed through blank samples. A significant level of contamination is identified when the blank samples yield values exceeding ten times the detection limit of the analytical method. For the 2013 drilling program at the Loma Larga Project, gold values should be below 0.05 g/t, silver below 2 g/t, and copper below 20 ppm. A total of 68 blank samples were inserted into the sample stream by INV during the 2013 drilling program. The results for these samples were plotted chronologically to determine if any trends had occurred over time. All blank assay results for gold and silver were at or below detection limit, and copper results varied between 7 ppm and 13 ppm, with no detectable systematic pattern.

It is RPA’s opinion that these results demonstrate no evidence of contamination.

In the QA/QC report dated June 17, 2013, Dr. Gray called attention to the failure of blank sample 46321 in Job 13-703-00278-01. A review of original data indicated an inadvertent

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 11-19 www.rpacan.com mislabelling of a core sample as a blank. The data used in this review by RPA is the corrected data set.

DUPLICATES Field Duplicates Field duplicates assess the variability introduced by sampling the same interval. The duplicate splits are bagged separately with separate sample numbers so as to be blind to the sample preparation laboratory. The duplicates contain all levels of sampling and analytical error and are used to calculate field, sample preparation, and analytical precision. To permit the most meaningful interpretations, field duplicates should be the same size as the regular samples sent for analysis.

A total of 24 field duplicate samples were submitted to Inspectorate during the 2013 drilling program. INV chose to use quarter core field duplicates to maintain a complete core record. That is, the interval selected for a field duplicate included two samples of quarter core (a regular sample and a duplicate), whereas regular samples comprised a half core split. The variances, however, of the smaller sample size will be greater, thus the field duplicates overestimate the sampling error associated with the standard half core assay samples.

RPA reviewed the gold, silver, and copper field duplicate data. Summary statistics are presented in Table 11-7 and scatterplots in Figures 11-7 to 11-9.

The percent relative difference between mean gold content of field duplicates and originals is less than three percent, and although observed variance is greatest at the lowest grade ranges, there is a paucity of data (one data point) for gold grades above the Loma Larga resource average.

Although the percent relative difference between mean silver and copper content of field duplicates and originals is quite high at 12.8% and -19.7% respectively, the grades of nearly all samples in both data sets are well below the average grade of the resource. No meaningful conclusions can be drawn from such data: neither the sample size nor the grade ranges are representative of the resource. RPA recommends that INV conduct field duplicate analyses using half core duplicates, and to ensure that the results are meaningful in the context of the Loma Larga resource, RPA strongly recommends that INV collect duplicate field samples within mineralized core intersections.

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TABLE 11-7 SUMMARY OF FIELD DUPLICATE RESULTS INV Metals Inc. – Loma Larga Project

Gold (g/t) Original Duplicate Number of Samples 24 24 Mean 1.14 1.11 Maximum Value 13.27 10.53 Minimum Value 0.01 0.01 Median 0.16 0.20 Correlation Coefficient 0.984 Percent Difference Between Means 2.4%

Silver (g/t) Original Duplicate Number of Samples 24 24 Mean 6.8 7.6 Maximum Value 71.0 55.4 Minimum Value 0.2 0.2 Median 1.7 1.5 Correlation Coefficient 0.937 Percent Difference Between Means -12.8%

Copper (ppm) Original Duplicate Number of Samples 24 24 Mean 702 841 Maximum Value 4,898 7,488 Minimum Value 14 9 Median 78 81 Correlation Coefficient 0.966 Percent Difference Between Means -19.7%

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FIGURE 11-7 GOLD FIELD DUPLICATE SCATTERPLOT

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FIGURE 11-8 SILVER FIELD DUPLICATE SCATTERPLOT

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FIGURE 11-9 COPPER FIELD DUPLICATE SCATTERPLOT

Reject Duplicates Reject duplicates (or coarse reject duplicates) are duplicate samples taken immediately after the first crushing and splitting step. This was done by Inspectorate at INV’s request. The reject duplicate will inform about the subsampling precision, that is, the errors due to sample size reduction after crushing and the errors associated with weighing and analysis of the pulp. Pulverization and assaying follow the same procedure, at the same laboratory, for each sample in the duplicate pair.

Table 11-8 summarizes the basic statistics of the reject duplicate pairs and scatterplots of each data set are illustrated in Figures 11-10 through 11-12. Gold, silver, and copper all show excellent correlation between means and very low percent difference between means (all less than one percent absolute difference). No bias is observed at either very low grades, or near- average resource grades of gold, silver, and copper.

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TABLE 11-8 SUMMARY OF REJECT DUPLICATE RESULTS INV Metals Inc. – Loma Larga Project

Gold (g/t) Original Duplicate Number of Samples 77 77 Mean 19.7 19.7 Maximum Value 456.0 455.0 Minimum Value 0.2 0.2 Median 1.5 1.5 Correlation Coefficient 1.00 Percent Difference Between Means -0.6%

Silver (g/t) Original Duplicate Number of Samples 77 77 Mean 19.7 19.7 Maximum Value 456.0 455.0 Minimum Value 0.2 0.2 Median 1.5 1.5 Correlation Coefficient 1.00 Percent Difference Between Means 0.0%

Copper (ppm) Original Duplicate Number of Samples 77 77 Mean 1,641 1,632 Maximum Value 72,700 72,600 Minimum Value 8 7 Median 63 67 Correlation Coefficient 1.00 Percent Difference Between Means 0.5%

The duplicate data pairs taken in 2013 from Loma Larga follow the expected progression of decreasing variance and percent difference between means from field to preparation to assay duplicates. Although the precision is somewhat high for field duplicate pairs, it is not atypical for an epithermal gold deposit, and also must be interpreted in consideration of the relatively small quarter core sample size, which would overestimate the sampling error associated with the half core assay samples.

With development at Loma Larga focused on high grade zones within the deposit, RPA strongly recommends that duplicate samples test intersections that are representative of the expected average grade of the Mineral Resource.

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Moreover, RPA suggests that INV procure reference standards with grades that better reflect the range of gold grades within the Mineral Resource. RPA recommends the following gold grade ranges: • A “low grade” standard (5 g/t to 7 g/t), • An “average grade” standard (9 g/t to 12 g/t), and • A “high grade” standard (greater than 30 g/t).

RPA also suggests that INV obtain a copper standard with a grade range of 6,000 ppm to 8,000 ppm (approximately the average grade of the Loma Larga Mineral Resource).

FIGURE 11-10 GOLD REJECT DUPLICATE SCATTERPLOT

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FIGURE 11-11 SILVER REJECT DUPLICATE SCATTERPLOT

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FIGURE 11-12 COPPER REJECT DUPLICATE SCATTERPLOT

Pulp Duplicates Pulp duplicates consist of second splits of final prepared pulverized samples, analyzed by the same laboratory as the original samples under different sample numbers. The pulp duplicates are indicators of the analytical precision, which may also be affected by the quality of pulverization and homogenization. INV chose to analyze pulp duplicates on the same samples that were selected for reject duplicate analysis.

Table 11-9 summarizes the basic statistics of the pulp duplicate pairs and scatterplots of each data set are illustrated in Figures 11-13 through 11-15. Gold, silver, and copper all show excellent correlation between means and very low percent difference between means. No bias is observed either at very low grades (below 1 g/t Au, 10 g/t Ag, and 1,000 ppm Cu), or near average resource grades of gold, silver, and copper.

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TABLE 11-9 SUMMARY OF PULP DUPLICATE RESULTS INV Metals Inc. – Loma Larga Project

Gold (g/t) Original Duplicate Number of Samples 77 77 Mean 2.21 2.20 Maximum Value 56.90 56.20 Minimum Value 0.01 0.01 Median 0.14 0.13 Correlation Coefficient 1.00 Percent Difference Between Means 0.4% Silver (g/t) Original Duplicate Number of Samples 77 77 Mean 19.7 19.7 Maximum Value 456.0 457.0 Minimum Value 0.2 0.2 Median 1.5 1.5 Correlation Coefficient 1.00 Percent Difference Between Means -0.2% Copper (ppm) Original Duplicate Number of Samples 77 77 Mean 1,641 1,633 Maximum Value 72,700 72,300 Minimum Value 8 7 Median 63 65 Correlation Coefficient 1.00 Percent Difference Between Means 0.4%

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FIGURE 11-13 GOLD PULP DUPLICATE SCATTERPLOT

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FIGURE 11-14 SILVER PULP DUPLICATE SCATTERPLOT

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FIGURE 11-15 COPPER PULP DUPLICATE SCATTERPLOT

PULP REPLICATES (CHECK ASSAYS) A total of 167 regular samples (a rate of greater than ten percent) were selected from the 2013 drilling program and duplicate splits of the pulps were sent to ALS Ltd., which served as the secondary (check) laboratory. Sample preparation was completed at ALS’s Ecuador facility, ALS Laboratory Group Quito, and pulps were forwarded to ALS Peru S.A. in Lima for laboratory for analyses.

Table 11-10 summarizes the basic statistics of the pulp replicate pairs and scatterplots of the gold, silver, and copper results are illustrated in Figures 11-16 through 11-18. Gold, silver, and copper all show excellent correlation between means and very low percent difference between means. No bias is observed either at very low grades, or near average resource grades of gold, silver, and copper.

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TABLE 11-10 SUMMARY OF PULP REPLICATE RESULTS INV Metals Inc. – Loma Larga Project

Gold (g/t) Primary Lab Secondary Lab Number of Samples 167 167 Mean 1.41 1.40 Maximum Value 53.15 54.00 Minimum Value 0.01 0.01 Median 0.11 0.09 Correlation Coefficient 0.998 Percent Difference Between Means 0.7%

Silver (g/t) Primary Lab Secondary Lab Number of Samples 167 167 Mean 18.3 17.9 Maximum Value 1,023 1,000 Minimum Value 0.2 0.2 Median 0.9 1.0 Correlation Coefficient 0.999 Percent Difference Between Means 2.1%

Copper (ppm) Primary Lab Secondary Lab Number of Samples 167 167 Mean 953 942 Maximum Value 18,600 18,130 Minimum Value 7 4 Median 52 47 Correlation Coefficient 1.000 Percent Difference Between Means 1.1%

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FIGURE 11-16 GOLD PULP REPLICATE SCATTERPLOT

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FIGURE 11-17 SILVER PULP REPLICATE SCATTERPLOT

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FIGURE 11-18 COPPER PULP REPLICATE SCATTERPLOT

RECOMMENDATIONS AND ENHANCEMENTS TO QA/QC PROGRAM

RPA recommends that INV follow up the high bias observed in gold CRM SN16 since the expected grade of 8.37 g/t Au is very near the average gold grade of the Loma Larga Mineral Resource. Similarly, the high bias observed in silver analyses after a brief hiatus in testing should be followed up with the laboratory.

RPA recommends that INV conduct metallic sieve fire assays on representative intervals of high grade zones, and/or intervals containing visible gold. Metallic sieve assay results will reveal if coarse gold is a problem in obtaining representative assays, and in what grade ranges. This can be achieved by using the existing core library: additional drilling is not required.

Furthermore, RPA recommends that INV carry out field duplicate analyses using half core duplicates. To ensure that the results are meaningful in the context of the Loma Larga

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 11-36 www.rpacan.com resource, RPA strongly recommends that INV collect duplicate field samples within mineralized core intersections. Duplicate analyses can be achieved by using the existing core library.

Although three gold analytical standards are currently being inserted into the sample stream at an acceptable frequency, RPA recommends that the grades be consistent with the ranges expected to be found in the Loma Larga resource (i.e., 2 g/t Au to greater than 30 g/t Au). RPA further recommends that INV obtain an analytical standard for silver and another for copper that reflect the average grades expected in the deposit, in order to quantify the accuracy of analyses.

In RPA’s opinion, the results of the QC samples, together with the QA/QC procedures implemented by INV at Loma Larga, provide adequate confidence in the data collection and processing, and the assay data is suitable for Mineral Resource estimation.

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12 DATA VERIFICATION

Sampling details for the historic drilling program by IAMGOLD were verified by RPA in 2006. At that time, RPA validated the drill hole database up to hole IQD354. In 2012, RPA verified 30 drill holes completed by IAMGOLD in 2008, which included 28 resource delineation drill holes and two drill holes for metallurgical testwork. Prior to accepting the resource database used to estimate the current Mineral Resources for the Loma Larga Project, RPA reviewed and verified 12 drill holes completed by INV in 2013, which included drill holes LLD364 to LLD375. The verification work included a review of the QA/QC methods and results, checking assay certificates against the database assay table, a site visit and review of drill core, and standard database validation tests. The review of the QA/QC program and results is presented in Section 11, Sample Preparation, Analyses and Security.

RPA considers the resource database reliable and appropriate to support a Mineral Resource estimate.

Katharine Masun, P.Geo., RPA Senior Geologist, visited the Loma Larga property site on February 19, 2014. During the site visit, RPA inspected the Loma Larga property, including the location of drill collars LLD148, LLD149, and LLD370.

RPA reviewed the geological core, checked lithology, mineralization, and sampling against drill logs of the following drill holes: IQD122, IQD183, IQ210, LLD367, and LLD372. During the core review, no notable discrepancies were found: metre tags were placed in the correct locations in the core boxes, samples were clearly and accurately marked, and core boxes were clearly labelled.

MANUAL DATABASE VERIFICATION The review of the resource database included header, survey, lithology (major and minor), assay, and density tables. Database verification was performed using tools provided within the Dassault Systèmes GEOVIA GEMS Version 6.6 software package (GEMS). As well, the assay and density tables were reviewed for outliers. Any inconsistencies that were identified were promptly corrected by INV.

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A visual check of the drill hole GEMS collar elevations and drill hole traces was completed. RPA noted 19 drill hole collars within the mineralized wireframe domains that were greater than one metre above the topographic surface, and four were greater than three metres. RPA followed up these discrepancies and found that it was not a transcription error. RPA recommends that INV resurvey the drill hole collars listed in Table 12-1.

TABLE 12-1 DRILL HOLE COLLAR ELEVATION ERRORS INV Metals Inc. – Loma Larga Project

Drill Hole Collar Error (m) Zone IQD253 6.44 Main IQD145001 5.37 Main IQD330 4.61 Main IQD314 4.06 Main IQD142501 2.95 Main IQD133 2.26 Main IQD190 2.12 Main IQD181 2.09 Main IQD165 2.02 Main IQD176 1.76 Main IQD146 1.72 Main IQD179 1.37 Main IQD142 1.32 Main IQD344 1.24 Main LLD375 1.19 Main IQD138 1.14 Main IQD175 1.14 Main LLD370 1.10 Main IQD163 1.04 Main

RPA verified over 1,700 assay records. This included a comparison of 1,722 assay results in the resource database to 18 digital laboratory certificates of analysis, which were received directly from Inspectorate. Any inconsistencies that were identified were promptly corrected by INV.

INDEPENDENT ASSAYS OF DRILL CORE RPA did not collect samples from drill core for independent assay during the 2014 site visit.

In 2005, Wayne Valliant, P.Geo., Principal Geologist with RPA, collected seven samples of quartered core for independent analyses at SGS Minerals Services, Toronto. Analyses were

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 12-2 www.rpacan.com by fire assay for gold and ICP for silver and copper. Although seven samples are not sufficient for statistical comparisons, Scott Wilson RPA (2006) found the agreement to be reasonable and confirm the presence of gold in the samples.

RPA is of the opinion that database verification procedures for the Loma Larga Project comply with industry standards and are adequate for the purposes of Mineral Resource estimation.

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13 MINERAL PROCESSING AND METALLURGICAL TESTING

METALLURGICAL TESTING PROGRAMS

Extensive metallurgical testing programs have been completed for the Project. IAMGOLD completed three phases of metallurgical testing between 2005 and 2009 that considered a number of processing options using a variety of samples including: • Gravity concentration, • Cyanide leaching, • Roasting, • Flotation – bulk sulphide primary flotation, bulk sulphide flotation followed by enargite/pyrite separation, bulk sulphide plus copper cleaner flotation, and sequential flotation, and • Pressure oxidation (POX) – whole ore and bulk flotation concentrate.

INV completed a single phase of metallurgical testing using two composite samples. The testing was largely confined to flotation testing of two options (i.e., bulk flotation to produce a single concentrate and sequential flotation to produce pyrite-gold-silver concentrate and a separate copper-gold-silver-arsenic concentrate ) although a few cyanide leach tests were also conducted to evaluate the possibility of increasing gold recovery slightly.

The INV metallurgical samples were composited from material taken from two drill holes, as shown in Figure 13-1.

The samples used for the metallurgical testing appear to be representative of the material that will be processed throughout the Life of Mine (LOM).

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 13-1 Proposed Stopes

High Grade Main Zone

13-2

Proposed Drifts and Fill

Figure 13-1

Metallurgy Sample Year INV Metals Inc. www.rpacan.com 2014 (INV) 050100 150 200 Loma Larga Project 2008 (IAMGOLD) Metres Azuay Province, Ecuador 2005 (IAMGOLD) Metallurgical Sample Locations August 2016 Source: RPA, 2016. www.rpacan.com

PROJECT DEVELOPMENT APPROACHES Since discovery of the deposit, two companies (IAMGOLD and INV) have owned the property. Differing operating approaches and philosophies lead the two companies to envision different designs for the processing plant. A brief outline of the two approaches to development and operation is provided as an introduction to the metallurgical review.

IAMGOLD IAMGOLD concluded that POX resulted in the best results after evaluating a number of options, however, IAMGOLD also concluded that placement of a whole-ore POX plant at the mine site was not warranted due to projected high capital and operating costs, even though whole-ore POX gave better overall results than POX of flotation concentrate. The process selected by IAMGOLD was bulk flotation followed by transport of the flotation concentrate to a POX plant located at a site near the coast. To maintain a gold recovery greater than 90%, IAMGOLD designed a flotation circuit that would recover approximately 25% of the total mass of the feed material into the bulk flotation concentrate.

INV After INV took ownership of the project, a review was completed to determine if the Project would be better suited to a flotation-only process followed by the sale of flotation concentrates, instead of the processes selected by IAMGOLD. Based upon this review, INV made the decision to focus future work on a flotation-only process due to an objective of reducing both capital and operating costs.

INV then completed metallurgical testwork to select the optimum flotation process. Two options were tested: • Bulk flotation to produce a single concentrate that contains Au, Ag, and Cu • Sequential flotation to produce two separate concentrates

The bulk flotation process produced low concentrate grades and low recoveries at relatively high mass recoveries, which is consistent with the results from the previous work that was completed by IAMGOLD. The sequential flotation process achieved good gold recovery to a pyrite concentrate while also providing good copper recovery into a small mass of concentrate that had an acceptable copper grade (i.e., 28% to 30% copper). The resulting pyrite concentrate showed results that were also consistent with the earlier work. That is, the gold recovery is good as long as a high mass of concentrate is recovered. Even though this results

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 13-3 www.rpacan.com in a lower gold grade, the sulphide sulphur grade is high which makes the concentrate attractive to smelters. The copper concentrate contains high quantities of arsenic (~10%) since the predominant copper mineral is enargite, which is also consistent with all of the work completed by IAMGOLD. Despite the high arsenic, preliminary discussions with commodity traders and smelters indicate that the concentrate should be marketable. The amount of copper concentrate that will be produced is low, leading to the capability of it being blended with concentrates from other mines, prior to entering the smelter. Also of note, since the As is associated with enargite which is recovered in the copper concentrate, the As levels in the pyrite concentrate are low.

METALLURGICAL TESTING RESULTS Based on analytical results, gold is associated with pyrite, enargite, free gold, non-sulphide minerals, and sub-microscopic gold. In order to determine whether the gold will be recovered in the copper concentrate, the pyrite concentrate, or lost to tailings, further testing of a larger number of samples from throughout the area to be mined is required. Since the economics vary considerably depending upon which flotation concentrate contains the gold, a much better understanding of the variations in gold occurrences must be developed. The results of the sequential flotation testwork completed by SGS for INV give confidence that by focusing on the High Grade Main Zone of the Loma Larga deposit, concentrates can be produced that have sufficient quality and metal grades to be considered marketable by commodity traders and smelters.

MINERALOGY Two gold deportment studies were completed by SGS for IAMGOLD. The study was conducted using a portion of the High Grade Composite, and showed that 72% of the gold was associated with pyrite and 12% of the gold was associated with enargite. Further studies are needed to determine the deportment of the remaining gold. Ninety percent of the pyrite grains contained submicroscopic gold and 70% of the enargite grains contained colloidal micro- inclusions of gold. The second gold deportment study was conducted using a portion of the Master Composite. It showed that 70% of the gold was liberated at 17.4 µm and 28% of the observed gold particles were attached to sulphide minerals.

The general mineralogy study that was conducted at the start of the metallurgical testing concluded that the non-opaque gangue minerals were predominantly quartz for all nine

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 13-4 www.rpacan.com samples that were evaluated. It also concluded that gold is associated with both pyrite and enargite.

A QEMSCAN analysis of the Master Composite showed that 15% of the sample was pyrite and 0.9% of the sample was enargite. Additionally, the majority of the copper (i.e., 93%) is enargite. The relative grain sizes of the minerals were 30 µm for quartz, 20 µm for pyrite, and 15 µm for enargite.

The results of the gold deportment studies are consistent with the analytical data. The gold associations are highly variable depending on the samples tested, so it is not yet possible to predict the proportions of gold that will report to the flotation concentrates and, then, predict the economic return for the Project with a degree of confidence.

COMMINUTION TESTS A total of eight Ball Work Index (BWi) tests, six Rod Work Index (RWi) tests, and five Abrasion Index (Ai) tests were conducted during the IAMGOLD testing. The BWi ranged from a minimum of 15.2 kWh/t to a maximum of 18.0 kWh/t with an average of 16.8 kWh/t, which is in the medium hard range and consistent with the results of the recent INV test which had a BWi of 16.0 kWh/t. The average RWi was 16.1 kWh/t and the average Ai was 1.282 g, which is highly abrasive. The impact of the high abrasion has been incorporated into cost estimates.

FLOTATION IAMGOLD conducted a number of flotation tests utilizing different flowsheets including bulk flotation, sequential flotation, and bulk flotation followed by cleaner flotation. One of the main observations for all of the flotation options is that to recover the majority of the gold, a high mass of concentrate must be recovered. This observation is consistent with the mineralogical observations that the majority of the gold is associated with the pyrite and that the majority of the sulphide minerals are pyrite. The data consistently shows that approximately 25% of the feed must be recovered to either a bulk or a pyrite concentrate in order to maintain an overall gold recovery to all concentrates of approximately 90%. Another observation that is consistent with the mineralogical studies is that a significant portion of the gold is associated with the enargite so it is recovered in the copper concentrate.

The highest overall recovery of copper and gold is obtained when a relatively high mass of concentrate is recovered into one bulk concentrate which supports the IAMGOLD decision to

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 13-5 www.rpacan.com pursue the bulk flotation plus POX option after they concluded that pursuing POX treatment at the mine site was not a viable option. Bulk rougher flotation was shown to recover more than 95% of the copper, gold, and sulphur. As discussed earlier, INV made the decision to produce flotation concentrates on site and ship them to smelters for further processing. This decision is supported by the positive economic outcome of this Study.

The results of the bulk flotation followed by copper cleaner flotation achieved by IAMGOLD were nearly as good as the sequential flotation results achieved by INV. This option should be investigated further as it has the potential to eliminate a second flotation circuit reducing both capital and operating costs.

FLOTATION CONCENTRATE ANALYSES The flotation concentrate analyses that have been completed indicate that high penalties will be incurred for arsenic in copper concentrates and additional penalties may be incurred for mercury. Preliminary discussions with smelters and metal traders indicate that the concentrates are marketable in spite of the penalty elements. Additional treatment of the copper concentrate, such as leaching or other hydrometallurgical treatment, may be warranted to determine if it is possible to reduce the arsenic content.

CYANIDE LEACHING OF THE ROUGHER FLOTATION TAILINGS One test was conducted by cyanide leaching of the rougher flotation tailings. The gold extraction after 48 hours was 51.8% but the gold grade of the tailings sample was approximately 1.5 g/t which resulted in a five percent increase in the total gold recovery. The test was conducted at particle size of approximately P80 15 um which made the process subeconomic so it was not included in the PFS. Further tests should be completed in the future to determine if there is a point at which the process increases the value of the Project.

POTENTIAL GRADE RECOVERY RELATIONSHIPS Due to the limited data available, this Study assumes that the concentrate grades and the recovery remain constant. Therefore, the quantity of concentrate that is produced varies as the head grade changes. No grade recovery relationships were assumed, since insufficient data was available to determine the possible relationships. Future work is required to confirm what the gold and copper recovery will be, especially for the ore that is near the cut-off grade (i.e., approximately 2 g/t gold).

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SUMMARY The highest gold and copper recoveries are achieved in whole-ore POX followed by copper recovery from the sulphuric acid solution and gold recovery from the leach residue in a CIL circuit. The next best alternative is producing a bulk flotation concentrate and utilizing a similar POX process flowsheet for the recovery of copper and gold. The primary advantage of using POX is that the products are copper precipitate or copper cathodes that do not contain arsenic, so penalties for arsenic in the product are not incurred. The disadvantage is a more complicated, more expensive processing facility that may not be compatible with the elevated altitude of the mine site.

To address the prohibitive cost of a POX plant, a sequential flotation process resulting in a Au/Ag pyrite concentrate and a Cu/Au/Ag concentrate was selected for this study. This method is supported by recent testwork, and results in a robust financial outcome for the Project. Additional test work is recommended to test and evaluate bulk flotation followed by copper cleaner flotation and recovering the pyrite/gold from the cleaner tailings since this process showed results that were nearly as good as the sequential flotation process during previous testing. The advantage of this circuit is that it eliminates the need for the pyrite flotation circuit including the pyrite regrind circuit, which should result in capital and operating cost savings.

PROCESS DEVELOPMENT AND FLOWSHEET DESIGN

Based on the most recent testwork, sequential flotation was selected as the process design for Loma Larga at this stage of the Project. The process design criteria were developed from the test conditions used for the locked cycle test (LCT) that was conducted using Composite A in the 2013 Metallurgical test work. A summary of the key Process Design Criteria is provided in Table 13-1.

TABLE 13-1 PROCESS DESIGN CRITERIA INV Metals Inc. – Loma Larga Project

Item Rate Units Daily Production Rate 3,000 tpd Design Feed Grade 7.1 g/t Au 0.47 % Cu 45 g/t Ag 0.15 % As 12.8 % S

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 13-7 www.rpacan.com

Item Rate Units Bond Work Index 17.0 kWh/t Abrasion Index 1.3 g

Primary Grind, P80 75 µm Cu Cleaner Flotation Recovery Regrind Size, P80 15 µm Au Recovery 17.5 % Cu Recovery 82.2 % Ag Recovery 44.3 % Cu Cleaner Flotation Concentrate Grade Au 103 g/t Cu 30.0 % Ag 1,235 g/t As 13.6 % S 40.4 % Pyrite Cleaner Flotation Recovery Regrind Size, P80 30 µm Au Recovery 72.7 % Cu Recovery 14.6 % Ag Recovery 49.5 % Pyrite Cleaner Flotation Concentrate Grade Au 37.0 g/t Cu 0.49 % Ag 157 g/t As 0.15 % S 51.0 %

For the purposes of this Study, it has been assumed that the recoveries and concentrate grades (gold for the pyrite concentrate and copper for the copper concentrate) will remain constant since there is insufficient data at this stage of the Project to provide estimates of the effect head grade will have on recovery and/or concentrate grades. The quantities of concentrate produced and the concentrations of the other metals will change based on the grade of the feed to the plant using the fundamental relationships shown in the following equation.

ore head grade x metal recovery mass recovery = concentrate grade

The actual relationships between grade, metal recovery, and mass recoveries must be estimated in the future by conducting additional testwork.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 13-8 www.rpacan.com

14 MINERAL RESOURCE ESTIMATE

SUMMARY

RPA estimated Mineral Resources for the Loma Larga Project using all drill hole data available as of June 30, 2016. This Mineral Resource estimate is an update of the previous estimate of December 31, 2014 reported in the 2015 Technical Report (RPA, 2015). The current Mineral Resource estimate is based on an underground mining scenario and is inclusive of Mineral Reserves. Using a US$60.00/t NSR cut-off value, Mineral Resources as of June 30, 2016, are summarized in Table 14-1.

TABLE 14-1 MINERAL RESOURCE ESTIMATE SUMMARY - JUNE 30, 2016 INV Metals Inc. – Loma Larga Project

Resource Tonnage Au Contained Au Ag Contained Ag Cu Contained Cu Classification (Mt) (g/t) (M oz) (g/t) (M oz) (%) (M lb) Indicated 17.9 4.42 2.55 28.3 16.3 0.26 104.0 Inferred 7.3 2.29 0.54 24.1 5.7 0.13 21.0

Notes: 1. CIM definitions were followed for Mineral Resources. 2. Mineral Resources are reported at an NSR cut-off value of US$60/t. 3. Mineral Resources are estimated using a long-term gold price of US$1,500 per ounce, silver price of US$25.00 per ounce, and copper price of US$3.50 per pound. 4. Mineral Resources are inclusive of Mineral Reserves. 5. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. 6. Average bulk density is 2.7 t/m3. 7. Numbers may not add due to rounding.

RPA was provided with a drill hole database consisting of 339 holes, totalling 77,427 m, with 240 of the holes (55,816 m) located within the estimated Mineral Resources. No additional drilling has been completed on the Loma Larga deposit since the 2015 Technical Report and the December 31, 2014 Mineral Resource estimate. Accordingly, the current Mineral Resource update incorporates the same drilling results available in the 2015 Technical Report, however, for this report, INV elected to reintroduce Low Grade Zone domain wireframes in addition to adopting the High Grade Zone domain wireframes used in the December 31, 2014.

The Loma Larga High Grade Zone comprises two mineralized zones, the High Grade Main Zone and High Grade Upper Zone. The Low Grade Zone, consists of two domains, the large Low Grade Main Zone wireframe domain that encompasses the High Grade Main Zone, and Low Grade Lower Zone, which lies below the Low Grade Main Zone. The Low Grade Main

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Zone incorporates small high grade intersections that were included in the High Grade Lower Zone domain in the 2015 Technical Report and the December 31, 2014 Mineral Resource estimate.

Three-dimensional grade shell wireframes were constructed at 0.8 g/t Au (Low Grade Zone) and 3.0 g/t Au (High Grade Zone). RPA used cross sections, long sections, and plan views to validate the wireframes.

Variography was performed on the 2.0 m Au, Ag, Cu, and density composites from the High Grade Main Zone and Low Grade Main Zone. Block grade interpolation was carried out using Ordinary Kriging (OK) for Au, Ag, and Cu and Inverse Distance Squared (ID2) weighting for density. The gold grade shell wireframe models were used to constrain the grade and density interpolations.

The polymetallic sulphide mineralization at the Loma Larga deposit contains significant values of Au, Ag, and Cu. Therefore, original assays were converted into NSR values ($ per tonne). The NSR values account for parameters such as metal price, metallurgical recoveries, smelter terms and refining charges, and transportation costs. For the purposes of developing an NSR cut-off value for an underground operation, a total operating cost of US$60.00/t milled was assumed, which includes mining, processing, and general and administrative (G&A) expenses.

RPA is not aware of any environmental, permitting, legal, title, taxation, socio-economic, marketing, political, or other relevant factors that could materially affect the Mineral Resource estimate.

MINERAL RESOURCE DATABASE

No new drilling has been performed on the Project since the 2015 Technical Report. Table 14-2 summarizes records directly related to the resource estimate.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 14-2 www.rpacan.com

TABLE 14-2 MINERAL RESOURCE DATABASE INV Metals Inc. – Loma Larga Project

Attribute Number Holes 240 Surveys 805 Assays 27,655 Assay Composites (>0.5 m in length) 6,248 Lithology 4,177 Alteration 10,316 Structure 939 Full zone width composites 219 Density measurements 10,628 Density Composites (>0.5 m in length) 5,264

Section 12, Data Verification, describes the verification steps undertaken by RPA in the 2015 Technical Report. In summary, all minor discrepancies identified were resolved and RPA is of the opinion that the GEMS drill hole database is valid and suitable to estimate Mineral Resources for the Project.

GEOLOGICAL INTERPRETATION AND 3D SOLID

The wireframe model of the mineralized domains was used to constrain block model interpretation.

For the High Grade Zone, RPA reviewed and adopted a 3.0 g/t Au wireframe model constructed by ORIX and used in the 2015 Technical Report. Prior to creating the mineralized wireframe domains for the Loma Larga Project, ORIX validated the drill hole database by completing the following: 1. Checking for location and elevation discrepancies by comparing collar coordinates with historical data,

2. Checking for inconsistencies in drill hole dip directions, and

3. Checking gaps, overlaps, and out-of-sequence intervals for both assay and lithology tables.

For the Low Grade Zone, INV elected to revise the 2012 interpretation of the Low Grade Zone wireframe domain at the modelling cut-off grade of 0.8 g/t Au (RPA, 2012).

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 14-3 www.rpacan.com

The Loma Larga High Grade Zone comprises two mineralized zones: Main and Upper (Figures 14-1, 14-3, and 14-4). The 2014 Main Zone is renamed the High Grade Main Zone, and the High Grade Upper Zone incorporates small high grade intersections above the High Grade Main Zone that were not included in the 2012 interpretation. The 2014 High Grade Lower Zone, which incorporates small high grade intersections below the High Grade Main Zone, has been replaced by a larger wireframe domain modelled at 0.8 g/t Au (Figures 14-2 and 14-4). Mineralization in the High Grade Zone and Low Grade Zone has been categorized into rock codes according to Table 14-3.

TABLE 14-3 ROCK CODES INV Metals Inc. – Loma Larga Project

Mineralization Solid Name Rock Code Volume (m3) High Grade Main Zone main/3gpt/final 130 3,782,670 High Grade Upper Zone upper/3gpt/final 131 64,378 Low Grade Main Zone lgz_c1/08gpt8/final 108 13,271,020 lgz_c2/08gpt8/final 208 781,693 Low Grade Lower Zone lgz_c3/08gpt8/final 308 97,902

A description of each modelled zone follows:

HIGH GRADE ZONE • The High Grade Main Zone is a north-northwest trending, flattened, cigar-shaped zone. It is approximately 1,150 m in length and 90 m to 250 m in width, averages 10 m to 25 m in thickness, and lies about 120 m to 125 m below the surface (Figures 14-1, 14-3, and 14-4). The Main Zone is intersected by 183 drill holes, i.e., one less than in the 2012 model and 44 more drill holes than in the 2006 model (RPA, 2006).

• The High Grade Upper Zone is a north-northeast trending, tabular body approximately 125 m in length by 55 m in width, averaging 10 m in thickness. It lies 55 m to 60 m below the surface and approximately 60 m above the Main Zone. The zone plunges steeply to the south (approximately 60º) and the width of mineralization increases from approximately 5 m to 20 m (Figures 14-1, 14-3, and 14-4). The Upper Zone is intersected by six drill holes.

LOW GRADE ZONE • The Low Grade Main Zone is a north-trending elongated zone that encompasses the High Grade Main Zone and is nearly 1,600 m in length and ranges from 30 m to 150 m in width. It averages approximately 50 m to 60 m thick and lies approximately 110 m to 120 m below the surface. It is intersected by 237 drill holes and dips at approximately two degrees to the south (Figures 14-2 to 14-4).

• The Low Grade Lower Zone is comprised of two distinct wireframes. It is a northeast trending, generally flat-lying, tabular body approximately 200 m in length by 120 m to

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 14-4 www.rpacan.com

340 m in width, averaging 10 m to 20 m in thickness. It lies 10 m to 20 m below the Low Grade Main Zone and is intersected by 37 drill holes (Figures 14-2 to 14-4). The Low Grade Lower Zone appears to be offset by several faults.

HIGH GRADE ZONE Mineralization for the High Grade Zone was interpreted by ORIX in CAE Datamine Studio Version 3.21.9017.0 software (Datamine). Sectional interpretations were performed on screen via strings snapped to drill hole intersections on northeast-southwest vertical cross sections spaced at least 12.5 m apart. Strings were joined together using tie lines to honour the drill hole assay data between sections, and triangulated to build three dimensional (3D) wireframe solids.

At model extremities, strings were extrapolated along dip approximately 25 m, unless lithological interpretation suggested extending mineralization further. The zones of interpreted mineralization were generally contiguous, however, the wireframes were extended through drill holes with low grade or narrow intersections to preserve continuity.

In 2012, RPA reviewed the spatial distribution of assay results and identified a number of moderate and high grade gold intersections of several metres in thickness that were not included in the 2012 Mineral Resource wireframe domains (RPA, 2012). For the 2015 Mineral Resource estimate, where spatial continuity was evident based on drill hole spacing, the high grade assays were incorporated into two new zones: Upper Zone and Lower Zone. For the current Mineral Resource estimate, only the Upper High Grade Zone was retained.

The individual zone wireframes and strings were exported from Datamine to AutoCAD DXF format, and were imported into GEMS for validation by RPA. RPA reviewed the wireframes on sets of northeast-southwest and northwest-southeast sections spaced at a minimum of 25 m, on 10 m spaced plan elevation, and on longitudinal sections in order to confirm the continuity of the mineralized domains adopted for this update.

The re-interpretation at a 3.0 g/t Au cut-off grade resulted in a volume increase of approximately 25% (High Grade Main Zone only), when compared to the High Grade Zone, also modelled at a 3.0 g/t Au cut-off, from the 2012 resource estimate (3.78 M m3 versus 3.00 M m3).

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 14-5 www.rpacan.com

LOW GRADE ZONE Mineralization for the Low Grade Zone was interpreted using northwest-southeast sections spaced at 25 m and plans spaced at a minimum of 25 m. Based on assay results and using the 2012 Low Grade Zone wireframe model as a guide, sections and plans were used to make an on-screen interpretation of grade shells at a cut-off of 0.8 g/t Au. The 3D wireframe models were built from 3D wobbly polylines on the northwest-southeast oriented cross sections that were snapped onto the drill hole intervals. Polylines were joined together in 3D using tie lines. At the model extremities and along section lines, polylines were extrapolated 10 m to 15 m beyond the last drill hole section. Solids were further reviewed in longitudinal sections in order to confirm continuity.

The re-interpretation at a 0.8 g/t Au cut-off grade has resulted in a volume increase of less than 3% (Low Grade Main and Lower Zones combined), when compared to the Low Grade Zone, also modelled at a 0.8 g/t Au cut-off grade, from the 2012 Mineral Resource estimate (14.2 M m3 versus 13.8 M m3). Figure 14-2 illustrates the revisions to the Low Grade Zone wireframes in plan view.

All Mineral Resources estimated on the Loma Larga Project are located within the mineralized zone wireframes.

RPA notes that there are additional drill hole intercepts outside the mineralized wireframe domains that are well above 3.0 g/t Au and may represent exploration potential. In RPA’s opinion the isolated location and narrow thickness of these intercepts together with substantial intervening material that is below cut-off precludes the inclusion of the intercepts as Mineral Resources at this time.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 14-6 www.rpacan.com 698,200 698,400 698,600 698,800

9,664,200 N

Figure 14-1

9,664,000 9,664,000 INV Metals Inc. Loma Larga Project Azuay Province, Ecuador 2016 Wireframe Domains in

9,663,800 Plan View (3600m Bench)

9,663,600

NOTE: Outlines for High Grade Upper Zone and Low Grade Lower Zone have been modified and projected to 3600m Bench

9,663,400

050100 150 200 Metres

Legend:

9,663,200 High Grade Main Zone High Grade Upper Zone Low Grade Main Zone Low Grade Lower Zone

August 2016 Source:RPA , 2016 . 14-7 www.rpacan.com 698,200 698,400 698,600 698,800

9,664,200

9,664,200 N Figure 14-2 INV Metals Inc.

Loma Larga Project 9,664,000 Azuay Province, Ecuador Plan Viewof 2016 vs. 2012 9,664,000 Low Grade Wireframes Model Domains (3615 m Bench) 9,663,800

9,663,800 9,663,600

9,663,600 050100 150 200 Metres

NOTE: Outlines for Lower Zones have been

modified and projected to 3615m Bench 9,663,400

9,663,400 Legend: 2016 Domains (new) Low Grade Main Zone Low Grade Lower Zone

Previous Domains (old) 9,663,200

High Grade Lower Zone

9,663,200 Low Grade Main Zone Low Grade Lower Zone

August 2016 Source: RPA, 2016. 14-8 www.rpacan.com

Looking Northeast

High Grade Upper Zone

High Grade Main Zone

0 100 200 Metres Low Grade Main Zone Low Grade Lower Zone

Figure 14-3 3D Isometric Views of2016 0.8 g/t Au and 3.0 g/t Au Domain s

Looking West

High Grade Main Zone

High Grade Upper Zone

Low Grade Main Zone

Low Grade Lower Zone

0 100 200 Metres

Figure 14-4 3D Isometric Views of2016 0.8 g/t Au and 3.0 g/t Au Domain s

INV Metals Inc. Loma Larga Project Azuay Province, Ecuador Isometric 3D Views of 2016 Domains

August 2016 Source:RPA, 2016 . 14-9 www.rpacan.com

STATISTICAL ANALYSIS

Assay values located inside the wireframes, or resource assays, were tagged with mineralized zone domain identifiers (rock codes) and exported for statistical analysis. RPA compiled and reviewed the basic statistics for Au, Ag, and Cu assays, which are summarized in Table 14-4.

TABLE 14-4 DESCRIPTIVE STATISTICS OF RESOURCE ASSAY VALUES INV Metals Inc. – Loma Larga Project

Length (m) Au (g/t) Ag (g/t) Cu (ppm) High Grade Main Zone (Rock Code 130) No. of Cases 4,125 4,125 4,125 4,125 Minimum 0.07 0.00 0.5 1 Maximum 4.43 768.67 2,295.6 204,000 Median 1.00 4.22 19.3 1,414 Arithmetic Mean 1.05 8.23 39.4 4,948 Length Weighted Mean - 7.42 36.9 4,407 Standard Deviation 0.33 23.28 74.0 12,839 Coefficient of Variation 0.32 2.83 1.88 2.60

High Grade Upper Zone (Rock Code 131) No. of Cases 65 65 65 65 Minimum 0.52 0.21 0.1 53 Maximum 2.00 105.50 250.1 67,000 Median 1.10 3.58 14.2 2,956 Arithmetic Mean 1.23 11.17 29.9 7,387 Length Weighted Mean - 9.66 26.5 6,117 Standard Deviation 0.45 20.29 44.1 11,503 Coefficient of Variation 0.37 1.82 1.48 1.56

High Grade Zone Total No. of Cases 4,190 4,190 4,190 4,190 Minimum 0.07 0.00 0.1 1 Maximum 4.43 768.67 2,295.6 204,000 Median 1.00 4.20 19.3 1,439 Arithmetic Mean 1.06 8.27 39.3 4,986 Length Weighted Mean - 7.46 36.7 4,438 Standard Deviation 0.33 23.24 73.6 12,822 Coefficient of Variation 0.32 2.81 1.87 2.57

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 14-10 www.rpacan.com

Length (m) Au (g/t) Ag (g/t) Cu (ppm) Low Grade Main Zone (Rock Code 108) No. of Cases 5,952 5,952 5,951 5,952 Minimum 0.18 0.01 0.1 1 Maximum 5.00 101.80 1,743.0 216,000 Median 1.00 1.38 7.6 384 Arithmetic Mean 1.18 1.86 16.0 1,089 Length Weighted Mean - 1.72 14.4 948 Standard Deviation 0.39 3.08 42.3 4,309 Coefficient of Variation 0.33 1.66 2.65 3.96

Low Grade Lower Zone (Rock Code 208) No. of Cases 477 477 477 477 Minimum 0.24 0.01 0.8 6 Maximum 3.00 59.33 721.0 126,800 Median 1.00 1.56 10.9 741 Arithmetic Mean 1.08 2.20 17.9 1,773 Length Weighted Mean - 2.04 16.9 1,729 Standard Deviation 0.36 3.46 43.2 8,043 Coefficient of Variation 0.33 1.58 2.42 4.54

Low Grade Lower Zone (Rock Code 308) No. of Cases 79 79 79 79 Minimum 0.60 0.11 0.2 69 Maximum 2.20 67.17 514.0 214,200 Median 1.00 1.60 8.5 1,494 Arithmetic Mean 1.24 5.67 47.7 17,189 Length Weighted Mean - 4.81 39.6 14,081 Standard Deviation 0.36 13.21 117.1 49,113 Coefficient of Variation 0.29 2.33 2.45 2.86

Low Grade Lower Zone Total No. of Cases 6,508 6,508 6,507 6,508 Minimum 0.18 0.01 0.1 1 Maximum 5.00 101.80 1,743.0 216,000 Median 1.00 1.39 7.9 411 Arithmetic Mean 1.17 1.93 16.5 1,335 Length Weighted Mean - 1.79 14.9 1,169 Standard Deviation 0.39 3.44 44.1 7,331 Coefficient of Variation 0.33 1.78 2.67 5.49

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 14-11 www.rpacan.com

CAPPING HIGH GRADE VALUES

Where the assay distribution is skewed positively or approaches lognormal, erratic high grade assay values can have a disproportionate effect on the average grade of a deposit. One method of treating these outliers in order to reduce their influence on the average grade is to cut, or cap, them at a specific grade level. In the absence of production data to calibrate the capping level, inspection of the assay distribution can be used to estimate a first pass capping level.

RPA carried out log scale probability grade testing and decile analysis for Au, Ag, and Cu within the High Grade Zone and the Low Grade Zone to determine the appropriate capping level for each element. RPA reviewed the resource assay histograms and cumulative probability plots within the wireframe domains and visually inspected high grade values on vertical sections.

Table 14-5 summarizes capping grade values used and Figures 14-5 and 14-6, respectively, illustrate the resource assay histograms and cumulative probability plots within the High Grade Zone and Low Grade Zone wireframe domains.

TABLE 14-5 CAPPED GRADE VALUES OF RESOURCE ASSAYS INV Metals Inc. – Loma Larga Project

Grade Capped No. of Samples % Metal Rock Code Mineralized Zone Element Value Capped Removed High Grade Zone Au (g/t) 130, 131 Main, Upper 65 g/t 48 12% Ag (g/t) 130, 131 Main, Upper 350 g/t 31 5% Cu (ppm) 130, 131 Main, Upper 40,000 ppm 81 13% Low Grade Zone Au (g/t) 108, 208, 308 Main, Lower 35 g/t 14 2% Ag (g/t) 108, 208, 308 Main, Lower 200 g/t 44 10% Cu (ppm) 108, 208, 308 Main, Lower 20,000 ppm 36 20%

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 14-12 High Grade Zone 16 18 20

16 14 18

14 16 12

12 14 10

10 12

8 10 8

8 Frequency (% of 4,190) Frequency 6 6 6 4 4 4

2 2 2

0 0 0 0 10 20 30 40 50 60 70 80 90 100 0 50 100 150 200 250 300 350 400 450 500 0 10000 20000 30000 40000 50000 Assay Au (ppm) Assay Ag (ppm) Assay Cu (ppm)

Low Grade Zone 60 40 35

-1341 35 30 50

30 25 40

25

20

20 30

15

Frequency (% of 6,508) Frequency 15 20

10 10

10 5 5

0 0 0 0 10 20 30 40 50 60 70 80 90 100 0 50 100 150 200 250 300 350 400 450 500 0 10000 20000 30000 40000 50000 Assay Au (ppm) Assay Ag (ppm) Assay Cu (ppm) Figure 14-5

INV Metals Inc. www.rpacan.com

Loma Larga Project Azuay Province, Ecuador Histogram ofResource Assay s

August 2016 Source:RPA, 2016 . High Grade Zone 99.99 99.99 99.99

99.9 99.9 99.9

99 99 99

95 95 95 90 90 90

80 80 80

50 50 50

Cumulative % Cumulative 20 20 20

10 10 10 5 5 5

1 1 1

0.1 0.1 0.1

0.01 0.01 0.01 0.01 0.1 1 10 100 0.1 1 10 100 1000 1 10 100 1000 10000 100000 Assay Au (ppm) Assay Ag (ppm) Assay Cu (ppm) Low Grade Zone 99.99 99.99 99.99

14-14 99.9 99.9 99.9

99 99 99

95 95 95 90 90 90

80 80 80

50 50 50

Cumulative % Cumulative 20 20 20

10 10 10 5 5 5

1 1 1

0.1 0.1 0.1

0.01 0.01 0.01 0.01 0.1 1 10 100 0.1 1 10 100 1000 1 10 100 1000 10000 100000 Assay Au (ppm) Assay Ag (ppm) Assay Cu (ppm) Figure -614

INV Metals Inc. www.rpacan.com Loma Larga Project Azuay Province, Ecuador Cummulative Frequency Log Probability Plot of Resource Assays August 2016 Source:RPA, 2016 . www.rpacan.com

Capping outliers in the High Grade Zone to 65 g/t Au, 350 g/t Ag, and 40,000 ppm Cu results in the reduction of the coefficients of variation (COV) for Au, Ag, and Cu to less than 2.0 and a slight decrease in the average grades of resource assays (Table 14-6).

For the Low Grade Zone, Au was capped at 35 g/t, high grade Ag outliers were capped at 200 g/t Ag, and high grade Cu outliers were capped to 20,000 ppm Cu. The COVs of capped Au, Ag, and Cu are 1.31, 1.58, and 2.10, respectively (Table 14-6).

TABLE 14-6 DESCRIPTIVE STATISTICS OF RESOURCE CAPPED ASSAY VALUES INV Metals Inc. – Loma Larga Project

Length (m) Au (g/t) Ag (g/t) Cu (ppm) High Grade Main Zone (Rock Code 130) No. of Cases 4,125 4,125 4,125 4,125 Minimum 0.07 0.00 0.5 1 Maximum 4.43 65.00 350.0 40,000 Median 1.00 4.22 19.3 1,414 Arithmetic Mean 1.05 7.10 37.4 4,204 Length Weighted Mean - 6.56 35.1 3,838 Standard Deviation 0.33 9.58 51.9 7,639 Coefficient of Variation 0.32 1.35 1.39 1.82

High Grade Upper Zone (Rock Code 131) No. of Cases 65 65 65 65 Minimum 0.52 0.21 0.1 53 Maximum 2.00 65.00 250.1 40,000 Median 1.10 3.58 14.2 2,956 Arithmetic Mean 1.23 10.07 29.9 6,972 Length Weighted Mean - 8.78 26.5 5,858 Standard Deviation 0.45 16.03 44.1 9,656 Coefficient of Variation 0.37 1.59 1.48 1.39

High Grade Zone Total No. of Cases 4,190 4,190 4,190 4,190 Minimum 0.07 0.00 0.1 1 Maximum 4.43 65.00 350.0 40,000 Median 1.00 4.20 19.3 1,439 Arithmetic Mean 1.06 7.15 37.3 4,247 Length Weighted Mean - 6.60 34.9 3,874 Standard Deviation 0.33 9.72 51.8 7,681 Coefficient of Variation 0.32 1.36 1.39 1.81

Low Grade Main Zone (Rock Code 108)

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Length (m) Au (g/t) Ag (g/t) Cu (ppm) No. of Cases 5,952 5,952 5,951 5,952 Minimum 0.18 0.01 0.1 1 Maximum 5.00 35.00 200.0 20,000 Median 1.00 1.38 7.6 384 Arithmetic Mean 1.18 1.82 14.8 974 Length Weighted Mean - 1.69 13.5 877 Standard Deviation 0.39 2.22 23.1 2,027 Coefficient of Variation 0.33 1.22 1.56 2.08

Low Grade Lower Zone (Rock Code 208) No. of Cases 477 477 477 477 Minimum 0.24 0.01 0.8 6 Maximum 3.00 35 200.0 20,000 Median 1.00 1.56 10.9 741 Arithmetic Mean 1.08 2.15 16.0 1,271 Length Weighted Mean - 2 15.1 1,247 Standard Deviation 0.36 2.72 22.8 2,347 Coefficient of Variation 0.33 1.27 1.42 1.85

Low Grade Lower Zone (Rock Code 308) No. of Cases 79 79 79 79 Minimum 0.60 0.11 0.2 69 Maximum 2.20 35.00 200.0 20,000 Median 1.00 1.60 8.5 1,494 Arithmetic Mean 1.24 4.51 29.2 4,082 Length Weighted Mean - 3.87 24.7 3,479 Standard Deviation 0.36 8.65 55.5 5,929 Coefficient of Variation 0.29 1.92 1.90 1.45

Low Grade Zone Total No. of Cases 6,508 6,508 6,507 6,508 Minimum 0.18 0.01 0.1 1 Maximum 5.00 35.00 200.0 20,000 Median 1.00 1.39 7.9 411 Arithmetic Mean 1.17 1.87 15.0 1,034 Length Weighted Mean - 1.74 13.8 935 Standard Deviation 0.39 2.46 23.8 2,168 Coefficient of Variation 0.33 1.31 1.58 2.10

COMPOSITING

Assay sample lengths range from 0.07 m to 5.00 m within the wireframe domains. Slightly less than half the samples were taken at 1.0 m lengths (43%) and nearly 35% were greater

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A set of composite control intervals were identified for each drill hole within the mineralized wireframe domains and resource assays were composited starting at the first composite control interval from the collar and resetting at each new wireframe boundary. Thirty-seven composites measuring less than 0.5 m were removed from the database prior to statistical analysis, variography, and resource estimation. The elimination of the small composites did not affect the overall integrity of the composited database.

Table 14-7 summarizes statistics of the capped and uncapped composite resource assay values. When compared to Table 14-4 (uncapped resource assays), the average grades have decreased slightly, while the COV values have been greatly reduced.

TABLE 14-7 DESCRIPTIVE STATISTICS OF CAPPED RESOURCE COMPOSITE VALUES INV Metals Inc. – Loma Larga Project

Length Uncapped Capped Au Ag Cu Au Ag Cu (m) (g/t) (g/t) (ppm) (g/t) (g/t) (ppm) High Grade Main Zone (Rock Code 130) No. of Cases 2,221 2,221 2,221 2,221 2,221 2,221 2,221 Minimum 0.50 0.14 1.3 1 0.14 1.3 1 Maximum 2.00 348.16 1,333.5 144,950 65.00 350.0 40,000 Median 2.00 4.32 20.2 1,544 4.32 20.2 1,544 Arithmetic Mean 1.95 7.42 37.0 4,388 6.57 35.2 3,825 Standard Deviation 0.22 16.00 60.7 9,740 7.77 43.4 6,188 Coefficient of Variation 0.11 2.16 1.64 2.22 1.18 1.23 1.62

High Grade Upper Zone (Rock Code 131) No. of Cases 43 43 43 43 43 43 43 Minimum 0.70 0.27 1.2 65 0.27 1.2 65 Maximum 2.00 55.65 151.5 33,733 37.42 151.5 27,900 Median 2.00 3.96 15.7 2,992 3.96 15.7 2,992 Arithmetic Mean 1.86 9.41 26.1 6,108 8.58 26.1 5,866 Standard Deviation 0.36 11.95 29.2 7,876 9.69 29.2 7,132 Coefficient of Variation 0.20 1.27 1.12 1.29 1.13 1.12 1.22

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Length Uncapped Capped Au Ag Cu Au Ag Cu (m) (g/t) (g/t) (ppm) (g/t) (g/t) (ppm) High Grade Zone (Total) No. of Cases 2,264 2,264 2,264 2,264 2,264 2,264 2,264 Minimum 0.50 0.14 1.2 1 0.14 1.2 1 Maximum 2.00 348.16 1,333.5 144,950 65.00 350.0 40,000 Median 2.00 7.46 36.8 4,421 6.61 35.1 3,863 Arithmetic Mean 1.95 4.31 20.0 1,565 4.30 20.0 1,565 Standard Deviation 0.22 15.93 60.3 9,709 7.81 43.2 6,211 Coefficient of Variation 0.11 2.14 1.6 2 1.18 1.2 2

Low Grade Main Zone (Rock Code 108) No. of Cases 3,669 3,669 3,669 3,669 3,669 3,669 3,669 Minimum 0.5 0.00 0.0 0 0 0 0 Maximum 2.00 71.03 1,385.5 78,335 33.08 200.0 20,000 Median 1.93 1.39 7.4 385 1.39 7.4 385 Arithmetic Mean 0.26 1.69 14.3 930 1.66 13.4 860 Standard Deviation 0.14 2.19 34.3 2,433 1.64 19.5 1,502 Coefficient of Variation 2.00 1.30 2.40 2.62 0.99 1.46 1.75

Low Grade Lower Zone (Rock Code 208) No. of Cases 260 260 260 260 260 260 260 Minimum 0.61 0.00 0.0 0 0 0 0 Maximum 2.00 24.00 434.1 75,570 16.59 188.5 19,044 Median 1.92 1.57 11.5 862 1.57 11.5 862 Arithmetic Mean 0.26 2.08 17.2 1,783 2.04 15.3 1,280 Standard Deviation 0.13 2.30 37.7 6,796 2.00 20.6 2,156 Coefficient of Variation 2.00 1.11 2.19 3.81 0.98 1.35 1.68

Low Grade Lower Zone (Rock Code 308) No. of Cases 55 55 55 55 55 55 55 Minimum 0.57 0.00 0.0 0 0 0 0 Maximum 2.00 57.92 466.0 208,800 35.00 200.0 20,000 Median 1.91 1.24 6.6 1,073 1.24 6.6 1,073 Arithmetic Mean 0.30 4.31 35.4 12,534 3.47 22.1 3,121 Standard Deviation 0.16 10.90 98.6 41,319 7.32 46.2 4,908 Coefficient of Variation 2.00 2.53 2.79 3.30 2.11 2.09 1.57

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Length Uncapped Capped Au Ag Cu Au Ag Cu (m) (g/t) (g/t) (ppm) (g/t) (g/t) (ppm) Low Grade Zone (Total) No. of Cases 3,984 3,984 3,984 3,984 3,984 3,984 3,984 Minimum 0.5 0.00 0.0 0 0 0 0 Maximum 2.00 71.03 1,385.5 208,800 35.00 200.0 20,000 Median 1.93 1.40 7.7 418 1.40 7.7 418 Arithmetic Mean 0.26 1.75 14.8 1,145 1.71 13.6 919 Standard Deviation 0.14 2.55 36.3 5,785 1.87 20.2 1,669 Coefficient of Variation 2.00 1.45 2.46 5.05 1.10 1.48 1.82

DENSITY

IAMGOLD began a systematic density measurement program at the Project in 2005 (IAMGOLD, 2009). To estimate densities, representative samples of typical lithology, alteration, and mineralization styles were collected. Selected core was sealed in wax before estimating the density using the water immersion method.

The Loma Larga density database included 10,793 density measurements covering a diverse range of lithology, mineralization, and alteration types. Approximately 75% (8,128) of the measurements were located within the mineralized grade-shell wireframes. RPA reviewed the descriptive statistics for density samples taken within the mineralization wireframes and elected to remove three excessively long (>20 m) composite samples (Table 14-8). Although the density data shows an approximately normal distribution, there is a long tail to the right of the mean (positively skewed). RPA reviewed the data, which included constructing a histogram (Figure 14-7) and cumulative probability plot (Figure 14-8), and determined that there were no high density outliers that should be removed from the data set. RPA further tested whether density weighting should be applied to grade interpolation and concluded that there was no strong correlation between grade and density (Pearson correlation coefficients were 0.20, 0.33, and 0.20 for Au, Ag, and Cu, respectively).

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TABLE 14-8 DESCRIPTIVE STATISTICS OF RESOURCE DENSITY SAMPLES INV Metals Inc. – Loma Larga Project

Rock No. of Min Max Median Arithmetic Std. Domain COV Code Cases (g/cm3) (g/cm3) (g/cm3) Mean Dev. High Grade Zone 130 3,290 1.85 4.75 2.67 2.79 0.36 0.13 131 28 2.38 3.01 2.69 2.70 0.16 0.06 All High Grade Zone 3,318 1.85 4.75 2.67 2.79 0.36 0.13

Low Grade Zone 108 4,385 1.77 4.41 2.59 2.62 0.22 0.08 208 346 2.02 4.44 2.60 2.68 0.32 0.12 308 79 2.24 3.78 2.62 2.68 0.27 0.10 All Low Grade Zone 4,810 1.77 4.44 2.59 2.62 0.23 0.09 All Composites 8,128 1.77 4.75 2.62 2.69 0.30 0.11

FIGURE 14-7 HISTOGRAM OF RESOURCE DENSITY SAMPLES

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FIGURE 14-8 BOX PLOT OF RESOURCE DENSITY SAMPLES BY DOMAIN

The average density of the High Grade Main and Upper Zones is 2.79 g/cm3 and 2.70 g/cm3, respectively. The Low Grade Main and Lower Zones have average density values of 2.62 g/cm3 and 2.68 g/cm3, respectively, and these values are consistent with those calculated by RPA in 2012.

With an average sample length of 1.83 m and given that less than 5% of the samples were greater than 2.0 m in length, RPA chose to composite density samples to 2.0 m. As with the resource assays, density samples were composited starting at the first mineralized wireframe boundary from the collar and resetting at each new wireframe boundary. Composites less than 0.5 m were removed from the database for Mineral Resource estimation and unsampled intervals were treated as null.

Table 14-9 summarizes the descriptive statistics of the composited resource density samples.

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TABLE 14-9 DESCRIPTIVE STATISTICS OF COMPOSITED DENSITY SAMPLES INV Metals Inc. – Loma Larga Project

Rock Minimum Maximum Median Mean Std. Mineralization N COV Code (g/cm3) (g/cm3) (g/cm3) (g/cm3) Deviation 130 Main Zone 1,787 2.11 4.60 2.69 2.77 0.26 0.10 131 Upper Zone 20 2.38 2.90 2.66 2.67 0.14 0.05 132 Lower Zone 9 2.50 3.55 2.73 2.89 0.35 0.12 All Resource Composites 1,816 2.11 4.60 2.69 2.77 0.26 0.10

NSR CUT-OFF VALUE

The shallow depth of the mineralized zone at Loma Larga makes it amenable to either open pit or underground mining methods. The large stripping ratio that would be required for an open pit, and the resulting large tonnage of potentially acid-generating waste rock, however, has led to the selection of underground mining as the most appropriate method with the smallest environmental footprint for the Project. Thus, an underground production scenario serves as the basis for estimating the cut-off grade for Mineral Resources.

NSR factors were developed by RPA for the purposes of Mineral Resource reporting. NSR is the estimated value per tonne of mineralized material after allowance for metallurgical recovery and consideration of smelter terms, including payables, treatment charges, refining charges, price participation, penalties, smelter losses, transportation, and sales charges. These assumptions, summarized in Table 14-10, are based on the current processing scenario and results from metallurgical testwork.

TABLE 14-10 CUT-OFF VALUE ASSUMPTIONS INV Metals Inc. – Loma Larga Project

Input Parameter Unit Value/Cost Metal Recovery Pyrite Concentrate Au 73% Ag 50% Copper Concentrate Au 18% Ag 44% Cu 82%

Net Recovery Au 90%

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Input Parameter Unit Value/Cost Ag 94% Cu 82% Metal Payability Pyrite Concentrate Payability Au 93% Ag 93% Copper Concentrate Payability Au 80% Ag 75% Cu 97%

Concentrate Charges Industry Standard

Price Au US$1,500/oz Ag US$25.00/oz Cu US$3.50/lb

Net Revenue by Metal Au 85% Ag 7% Cu 8% Operating Costs Mining Underground $/t 36.30 Processing (1.05 M tpa) $/t 14.23 G&A $/t 7.27

NSR Royalty 5%

The net revenue from each metal was calculated and then divided by grade to generate an NSR factor. These NSR factors represent revenue (US$) per metal grade unit (per g/t Au, for example), and are independent of grade. RPA used the following factors to calculate NSR: $32.87 per g/t Au, $0.47 per g/t Ag, and $45.49 per % Cu.

The NSR factors were used to calculate an NSR value (US$ per tonne) for each block in the block model, which was compared directly to unit operating costs required to mine that block. For the purposes of developing an NSR cut-off value for an underground mining operation, a total operating cost of US$60/t milled was assumed, which includes mining, processing, and G&A expenses.

All classified resource blocks located within the mineralized wireframe domains with NSR values greater than US$60/t were included in the Mineral Resource estimate.

In RPA’s opinion, an NSR of US$60/t (rounded) is suitable for an underground mining scenario.

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VARIOGRAPHY AND INTERPOLATION VALUES

In 2006, RPA (then Scott Wilson RPA) prepared a series of variograms of Au composites for each interpreted mineralized zone, interpolated Au using OK, and chose to interpolate Ag and Cu using ID2.

In 2009, IAMGOLD modelled correlograms on the 2.0 m Au, Ag, Cu, and density composites from the main mineralized units. Interpolation was performed using ID2 weighting method for all metals and density, with search ellipse and interpolation profiles based on variography.

In 2012, RPA validated variography for Au, Ag, Cu, and density analysis and the results were consistent with those reported by both Scott Wilson RPA in 2006 and IAMGOLD in 2009.

In 2014, RPA re-assessed variography for the High Grade Zone using composites within the High Grade Main Zone wireframe only (i.e., restricted to rock code 130), and applied the variogram models to all High Grade Zone wireframes. The nugget effect for Au, Ag, and Cu, established with the downhole linear semi-variogram, was from 16% and 19%. Vertical semi- variograms were well developed in all cases. The longest semi-variogram ranges were consistently oriented parallel to and across strike in the horizontal plane (see Figures 14-16 to 14-18 in RPA, 2015).

In 2016, RPA re-assessed variography for the Low Grade Zone using composites within the Low Grade Main Zone wireframe only (i.e., restricted to rock code 108). In RPA’s opinion, the variogram models for the Low Grade Main Zone were not materially different from those for the High Grade Main Zone. RPA applied the High Grade Zone variogram parameters to all Low Grade Zone wireframes.

For both the High Grade and Low Grade Zones, grades for Au, Ag, and Cu were interpolated using OK and density values were interpolated using ID2. Interpolation and search parameters used by RPA are summarized in Table 14-11.

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TABLE 14-11 BLOCK ESTIMATE ESTIMATION PARAMETERS INV Metals Inc. – Loma Larga Project

Parameter1 Au Ag Cu Density Method OK OK OK ID2 Boundary Type Hard Hard Hard Hard Pass 1 4 4 4 3 Min. No. Comps. Pass 2 3 3 3 3 High Grade Zone Pass 1 12 12 12 15 Max. No. Comps. Sample Restrictions Pass 2 12 12 12 15 Pass 1 3 3 3 3 Max. Comps. Per Drill Hole Pass 2 3 3 3 3 Pass 1 50 50 50 65 Range X (m) Pass 2 100 100 100 65 High Grade Zone Pass 1 50 50 50 80 Range Y (m) Search Ellipse Pass 2 100 100 100 80 Pass 1 15 15 15 40 Range Z (m) Pass 2 30 30 30 40 Pass 1 4 4 4 3 Min. No. Comps. Pass 2 4 4 4 3 Low Grade Zone Pass 1 12 12 12 15 Max. No. Comps. Sample Restrictions Pass 2 12 12 12 15 Pass 1 3 3 3 3 Max. Comps. Per Drill Hole Pass 2 3 3 3 3 Pass 1 50 50 50 65 Range X (m) Pass 2 120 120 120 65 Low Grade Zone Pass 1 50 50 50 80 Range Y (m) Search Ellipse Pass 2 120 120 120 80 Pass 1 15 15 15 40 Range Z (m) Pass 2 30 30 30 40 Z +15° +15° +15° +15° Search Anisotropy2 Y -10° -10° -10° -15° Z 0° 0° 0° 0°

Nugget (C0) 0.18 0.19 0.16 - Variogram Model Relative Nugget (C0) 18% 19% 16% -

Structure C1 0.52 0.81 0.67 - Range X (m) 5.6 60 17 - Range Y (m) 5.6 50 17 - Range Z (m) 2.7 25 11 - C2 0.30 - 0.17 - Range X (m) 50 - 50 - Range Y (m) 50 - 50 - Range Z (m) 24 - 25 - Total Sill 1.0 1.0 1.0 - Note: 1Unless otherwise noted, parameters are identical for the High Grade Zone and Low Grade Zone 2Rotation around each axis (positive is counter-clockwise).

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A two-pass approach was used to interpolate block grades. Interpolation was restricted by the mineralized wireframe models, which were used as hard boundaries to prevent the use of composites outside of the zones.

The first pass used an X and Y search distance of 50 m and a Z search distance of 15 m and was limited to a minimum of four and a maximum of twelve composites per block with a maximum of three composites per drill hole. The second pass maintained the same minimum samples used in the first pass, and the maximum was reduced to three samples for the High Grade Zone and remained the same for the Low Grade Zone. The search distances for the High Grade Zone were doubled: X and Y to 100 m and Z to 30 m. For the Low Grade Zone, the X and Y search distances were extended to 120 m, and Z to 30 m. No holes located outside the mineralized zone wireframes were used to interpolate block grades. Identical search ellipses were used for Au, Ag, and Cu, that is, isotropic in the XY plane with a shallow dip along strike (Table 14-11).

Density was interpolated only for the High Grade Main Zone (rock code 130) and the Low Grade Main Zone and Lower Zone (rock codes 108, 208, and 308), using a one-pass approach, and restricted by the wireframe model. The single pass used an X search distance of 65 m, a Y search distance of 80 m, and a Z search distance of 40 m. Unlike the grade interpolation search ellipse, density was anisotropic in the XY plan. Interpolation was limited to a minimum of three and a maximum of fifteen composites per block with a maximum of three composites per drill hole (Table 14-11). For the High Grade Upper Zone, the average composite density (2.66 g/cm3) was coded into each block within the wireframe models.

BLOCK MODEL

A model of 2,992,500 blocks was built in GEMS. Blocks are 5 m by 10 m by 5 m with 270 columns, 235 rows, and 90 levels. The model is oriented N15ºW and fully encloses the modelled resource wireframes. The extents and dimensions of the block model are summarized in Table 14-12.

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TABLE 14-12 BLOCK MODEL DIMENSIONS INV Metals Inc. – Loma Larga Project

Description Easting (X) Northing (Y) Elevation (Z) Minimum (m) 698,366.43 9,662,637.824 3,850 Maximum (m) 699,316.43 9,664,387.824 4,300 Extents (m) 950 1,750 450

Column Row Level Block size (m) 5 10 5 Number of blocks 190 175 90

RPA built a block model with separate folders for the High Grade Zone and Low Grade Zone, with attributes that included rock type, density, Au, Ag, Cu grades, and NSR value (Table 14- 13). The blocks were assigned a volumetric percent to adequately account for the proportion of the blocks located within the wireframe domains.

TABLE 14-13 BLOCK MODEL FIELD DESCRIPTIONS INV Metals Inc. – Loma Larga Project

Block Model Description Air=0, Waste=99, High Grade Main Zone = 130, High Grade Upper Zone = 131, Low Rock Type Grade Main Zone = 108, Low Grade Lower Zone = 208/308 High Grade and Low Grade Main Zones = interpolated density composite samples Density High Grade Upper Zone = 2.66 g/cm3 Percent Percent of block ascribed to the assigned rock type AU_KR Interpolated Au capped grades using OK AG_KR Interpolated Ag capped grades using OK CU_KR Interpolated Cu capped grades using OK NSR_KR NSR factor calculated from OK metal grades: 32.87*Au(g/t)+0.47*Ag(g/t)+45.49*Cu(%) Pass OK Interpolation pass (First Pass = 1, Second Pass = 2) CLASS Classification of block (2 = Indicated, 3 = Inferred) AU_ID1 Interpolated Au capped grades using ID2 AG_ ID1 Interpolated Ag capped grades using ID2 CU_ ID1 Interpolated Cu capped grades using ID2 NSR_ ID1 NSR factor calculated from ID2metal grades: 32.87*Au(g/t)+0.47*Ag(g/t)+45.49*Cu(%) Min-Dist1 Distance from the block centroid to the nearest sample used in block estimate No-DHs1 Number of drill holes used in block estimate No-Samp1 Number of sample points used in block estimate

Note: 1Attribute created for High Grade Zone only.

The density factor applied to the High Grade Main Zone and Low Grade Main and Lower Zones was interpolated into each block using ID2 and used to convert block volume to tonnage. A

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 14-27 www.rpacan.com tonnage factor of 2.66 g/cm3 for the High Grade Upper Zone was coded directly into each block based on the rock type model.

BLOCK MODEL VALIDATION

RPA carried out a number of block model validation procedures including: 1. Visual comparisons of block gold, silver, and copper grades versus composite grades.

2. Statistical comparisons.

3. Comparison of the volumes of the wireframe models to the block model volume results.

4. Trend plots of block and composite gold, silver, and copper grades by elevation and northings/eastings.

5. Comparison of block and composite grades in blocks containing composites.

Block model grades were visually examined and compared with composite grades in cross section and on elevation plans. RPA found grade continuity to be reasonable, and confirmed that the block grades were reasonably consistent with local drill hole assay and composite grades and that there was no significant bias.

Grade statistics for assays, composites, and resource blocks were examined and compared for the High Grade Main and Upper Zones and Low Grade Main and Lower Zones (Table 14- 14). In the Low Grade Lower Zone, where only Inferred Mineral Resources are estimated, average block grades are slightly higher than average composite grades. This is attributed to a larger influence of some higher grade drill holes in some parts of these zones due to their relative location and spacing locally. Otherwise, the comparisons of average grades of capped assays, composites, and blocks are reasonable in RPA’s opinion.

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TABLE 14-14 COMPARISON OF GOLD GRADE STATISTICS FOR ASSAYS, COMPOSITES AND RESOURCE BLOCKS INV Metals Inc. – Loma Larga Project

2.0 m Capped Zone Capped Assays Block Model Grades Composites Au Ag Cu Au Ag Cu Au Ag Cu

(g/t) (g/t) (ppm) (g/t) (g/t) (ppm) (g/t) (g/t) (ppm) High Grade Main Zone (Rock Type 130) Number of Cases 4,125 4,125 4,125 2,221 2,221 2,221 21,977 21,977 21,977 Minimum 0.00 0.5 1 0.14 1.3 1 1.11 4.7 174 Maximum 65.00 350.0 40,000 65.00 350.0 40,000 41.83 244.4 31,722 Median 4.22 19.3 1,414 4.32 20.2 1,544 4.85 24.7 2,270 Arithmetic Mean 7.10 37.4 4,204 6.57 35.2 3,825 6.06 34.1 3,495 Standard Deviation 6.56 35.1 3,838 7.77 43.4 6,188 3.87 27.7 3,514 Coefficient of Variation 0.92 0.94 0.91 1.18 1.23 1.62 0.64 0.81 1.01 High Grade Upper Zone (Rock Type 131) Number of Cases 65 65 65 43 43 43 527 527 527 Minimum 0.21 0.1 53 0.27 1.2 65 1.53 6.2 1,603 Maximum 65.00 250.1 40,000 37.42 151.5 27,900 20.76 79.7 18,520 Median 3.58 14.2 2,956 3.96 15.7 2,992 6.63 17.9 5,297 Arithmetic Mean 10.07 29.9 6,972 8.58 26.1 5,866 6.99 22.2 5,559 Standard Deviation 8.78 26.5 5,858 9.69 29.2 7,132 3.59 13.5 2,330 Coefficient of Variation 0.87 0.89 0.84 1.13 1.12 1.22 0.51 0.61 0.42 Low Grade Main Zone (Rock Type 108) Number of Cases 5,952 5,951 5,952 3,669 3,669 3,669 56,731 56,731 56,731 Minimum 0.01 0.1 1 0.00 0.0 0 0.00 0.0 0 Maximum 35.00 200.0 20,000 33.08 200.0 20,000 11.61 195.1 11,305 Median 1.38 7.6 384 1.39 7.4 385 1.54 10.2 660 Arithmetic Mean 1.82 14.8 974 1.66 13.4 860 1.62 15.2 865 Standard Deviation 1.69 13.5 877 1.64 19.5 1,502 0.68 17.0 848 Coefficient of Variation 2.22 23.1 2,027 0.99 1.46 1.75 0.42 1.12 0.98 Low Grade Lower Zone (Rock Type 208) Number of Cases 477 477 477 260 260 260 4,880 4,880 4,880 Minimum 0.01 0.8 6 0.00 0.0 0 0.51 2.0 86 Maximum 35.00 200.0 20,000 16.59 188.5 19,044 13.78 177.9 18,748 Median 1.56 10.9 741 1.57 11.5 862 1.71 12.7 978 Arithmetic Mean 2.15 16.0 1,271 2.04 15.3 1,280 1.92 16.4 1,266 Standard Deviation 2.00 15.1 1,247 2.00 20.6 2,156 1.25 16.8 1,764 Coefficient of Variation 2.72 22.8 2,347 0.98 1.35 1.68 0.65 1.03 1.39

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2.0 m Capped Zone Capped Assays Block Model Grades Composites Au Ag Cu Au Ag Cu Au Ag Cu

(g/t) (g/t) (ppm) (g/t) (g/t) (ppm) (g/t) (g/t) (ppm) Low Grade Lower Zone (Rock Type 308) Number of Cases 79 79 79 55 55 55 742 742 742 Minimum 0.11 0.2 69 0.00 0.0 0 0.37 0.6 120 Maximum 35.00 200.0 20,000 35.00 200.0 20,000 31.97 200.0 20,000 Median 1.60 8.5 1,494 1.24 6.6 1,073 1.49 9.3 1,919 Arithmetic Mean 4.51 29.2 4,082 3.47 22.1 3,121 3.44 22.1 3,097 Standard Deviation 3.87 24.7 3,479 7.32 46.2 4,908 4.73 32.8 3,134 Coefficient of Variation 8.65 55.5 5,929 2.11 2.09 1.57 1.38 1.49 1.01

Examples of the composite and block grades of Au, Ag, and Cu in plan and sections are provided in Figures 14-9 through 14-11.

In 2014, RPA compared the block model grades of the High Grade Zone to the ID2 interpolation parameters used in the 2012 Mineral Resource estimate. In all cases, there is a good correlation between the two estimates and the resource block estimates prepared by OK consistently show lower COV.

To check for conditional bias, trend plots were created which compared the Au, Ag, and Cu block model grade estimates of the High Grade Zone and Low Grade Zone to composite sample average grades. Figures 14-12 and 14-13 illustrate the Au trend plots for the High Grade Main Zone and Low Grade Main Zone. In RPA’s opinion, there is no significant bias between the resource block grades and the composited assay samples.

As a final check, RPA compared the volume of the wireframe models to the block model volume results. The estimated total volume of the wireframe models is 14,214,993 m3 and the block model volume is 14,205,291 m3. The volume difference is -0.07%, which RPA considers to be an acceptable result.

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698,400 698,600 698,800

698,200

9,664,200

N

9,664,000

High Grade Main Zone

Legend: Au Grade (g/t) < 0.8 9,663,800 0.8 - 1.0 1.0 - 2.0 2.0 - 3.0 3.0 - 5.0 5.0 - 10.0 > 10.0

9,663,600

Low Grade Main Zone

9,663,400

Figure 14-9

INV Metals Inc. 9,663,200 Loma Larga Project Azuay Province, Ecuador Gold Composites and Blocks on 3600m Level

050100 150 200 Metres August 2016 14-31 www.rpacan.com

698,400 698,600 698,800

698,200

9,664,200

N

9,664,000

High Grade Main Zone

Legend: Ag Grade (g/t) < 5.0 9,663,800 5.0 - 20.0 20.0 - 50.0 50.0 - 100.0 100.0 - 500.0 500.0 - 1,000.0 > 1,000.0

9,663,600

Low Grade Main Zone

9,663,400

Figure 14-10

INV Metals Inc. 9,663,200 Loma Larga Project Azuay Province, Ecuador Silver Composites and Blocks on 3600m Level

050100 150 200 Metres August 2016 14-32 www.rpacan.com

698,400 698,600 698,800

698,200

9,664,200

N

9,664,000

High Grade Main Zone

Legend:Cu Grade ( % ) < 0.05 9,663,800 0.05 - 0.1 0.1 - 0.5 0.5 - 1.0 1.0 - 2.0 2.0 - 3.0 > 3.0

9,663,600

Low Grade Main Zone

9,663,400

Figure 14-11

INV Metals Inc. 9,663,200 Loma Larga Project Azuay Province, Ecuador Co perpComposites and Blocks on 3600m Level

050100 150 200 Metres August 2016 14-33 Au Composites vs Blocks (g/t) Au Composites vs Blocks (g/t) High Grade Main Zone High Grade Main Zone

3000 3000

25 25

2500 2500

20 20

2000 2000

15 15 1500 1500

Count (of 22504)

Count (of 22504) 10 10 1000 1000

Mean Assay Capped Au (ppm) / Au (g/t)

Mean Assay Capped Au (ppm) / Au (g/t)

5 5 500 500

14-34 0 0 0 0 698400 698500 698600 698700 9663200 9663600 9664000

X Y Au Composites vs Blocks (g/t) High Grade Main Zone Legend: Assay Capped Au (ppm) 3000 Capped Gold Assays (g/t) 25 Gold Block Grade (g/t) 2500

20 Block Count

2000

15 1500 Figure 1214-

Count (of 22504) 10 1000 INV Metals Inc. www.rpacan.com

Mean Assay Capped Au (ppm) / Au (g/t)

5 500 Loma Larga Project Azuay Province, Ecuador High Grade Main Zone Trend Plot 0 0 3560 3580 3600 3620 3640 3660 3680 3700 of Capped Gold Assays versus Z Block Grades August 2016 Source:RPA, 2016 . Au Composites vs Blocks (g/t) Au Composites vs Blocks (g/t) Low Grade Main Zone Low Grade Main Zone

7000 7000

2.5 2.5

6000 6000

2.0 2.0 5000 5000

4000 4000 1.5 1.5

3000 Count (of 56731) 3000 Count (of 56731) 1.0 1.0

Mean Comp Capped Au (ppm) / Au (g/t) 2000 Mean Comp Capped Au (ppm) / Au (g/t) 2000

0.5 0.5 1000 1000

14-35 0.0 0 0.0 0 698300 698500 698700 9662800 9663200 9663600 9664000

X Y

Au Composites vs Blocks (g/t) Low Grade Main Zone Legend: Capped Gold Assays (g/t) 7000

2.5 Gold Block Grade (g/t) 6000 Block Count

2.0 5000

4000 1.5 Figure 314-1

3000 Count (of 56731)

www.rpacan.com 1.0 INV Metals Inc.

Mean Comp Capped Au (ppm) / Au (g/t) 2000 Loma Larga Project 0.5 1000 Azuay Province, Ecuador Low Grade Main Zone Trend Plot 0.0 0 3500 3520 3540 3560 3580 3600 3620 3640 3660 3680 3700 3720 of Capped Gold Assays versus

Z Block Grades August 2016 Source:RPA, 2016 . www.rpacan.com

CLASSIFICATION

Definitions for resource categories used in this report are consistent with those defined by CIM (2014) and incorporated by reference in NI 43-101. In the CIM classification, a Mineral Resource is defined as “a concentration or occurrence of natural, solid, inorganic or fossilized organic material in or on the Earth’s crust in such form and quantity and of such grade or quality that it has reasonable prospects for economic extraction”. Mineral Resources are classified into Measured, Indicated, and Inferred categories, according to the confidence level in the estimated blocks.

RPA classified the Mineral Resources on the Loma Larga Project as Indicated and Inferred. All block within the High Grade Main Zone were classified as Indicated Mineral Resources, and all blocks in the High Grade Upper Zone and Low Grade Lower Zone were classified as Inferred Mineral Resources. RPA manually classified blocks within the Low Grade Main Zone as Indicated and Inferred Mineral Resources based on drill hole spacing and grade continuity above the NSR cut-off of US$60/t.

It is RPA’s opinion that the level of confidence in the data is not high enough to classify any Mineral Resource as Measured.

In advancing the Project, RPA recommends that INV consider the following: • Develop an understanding of the work required to support upgrading areas of the High Grade Main Zone to Measured Mineral Resources.

• Additional drilling in the High Grade Upper Zone and Low Grade Lower Zone in order to upgrade the Mineral Resources from Inferred to Indicated.

SUMMARY OF MINERAL RESOURCE ESTIMATE

RPA estimated Mineral Resources for the Loma Larga Project using drill hole data available as of June 30, 2016.

RPA estimated Mineral Resources at various cut-off NSR values. In RPA’s opinion, an NSR cut-off value of US$60/t is appropriate for reporting current Mineral Resources for the Project. The Mineral Resources, effective June 30, 2016, are summarized in Table 14-15.

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TABLE 14-15 MINERAL RESOURCE ESTIMATE – JUNE 30, 2016 INV Metals Inc. – Loma Larga Project

Resource Zone Tonnage Grade Contained Grade Contained Grade Contained Classification Gold Silver Copper (Mt) (g/t Au) (M oz Au) (g/t Ag) (M oz Ag) (% Cu) (M lb Cu) Indicated High Grade Main Zone 10.4 6.14 2.06 34.6 11.6 0.35 81.7 Low Grade Main Zone 7.4 2.02 0.48 19.4 4.7 0.14 22.3 Total 17.9 4.42 2.55 28.3 16.3 0.26 104.0

Inferred High Grade Lower Zone 0.2 6.99 0.04 22.2 0.1 0.56 2.1 Low Grade Main Zone 5.7 2.06 0.38 25.4 4.6 0.10 12.9 Low Grade Lower Zone 1.5 2.62 0.13 19.4 0.9 0.18 6.0 Total 7.3 2.29 0.54 24.1 5.7 0.13 21.0

Notes: 1. CIM definitions were followed for Mineral Resources. 2. Resources are reported at an NSR cut-off value of US$60/t. 3. Mineral Resources are estimated using a long-term gold price of US$1,500 per ounce, silver price of US$25.00 per ounce, and copper price of US$3.50 per pound. 4. Mineral Resources are inclusive of Mineral Reserves. 5. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. 6. Average bulk density is 2.7 t/m3. 7. Numbers may not add due to rounding.

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15 MINERAL RESERVE ESTIMATE

Mineral Reserves for Loma Larga are based on the Mineral Resources as of June 30, 2016, and include detailed mine designs and modifying factors such as external dilution and extraction factors. Table 15-1 summarizes the Mineral Reserves.

TABLE 15-1 PROBABLE MINERAL RESERVES – JUNE 30, 2016 INV Metals Inc. – Loma Larga Project

Contained Contained Contained Tonnes Grade Au Grade Ag Grade Cu Extraction Type (kt) (g/t Au) (k oz) (g/t Ag) (M oz) (% Cu) (M lb) Stopes 8,540 5.18 1,422 28.5 7.8 0.31% 57.6 Drift and Fill 2,128 4.05 277 25.8 1.8 0.21% 9.7 Ore Development 873 5.62 158 30.5 0.9 0.32% 6.1 Incremental Ore 97 1.50 5 9.8 0.0 0.09% 0.2 Total 11,638 4.98 1,862 28.0 10.5 0.29% 73.6

Notes: 1. CIM definitions were followed for Mineral Reserves. 2. Mineral Reserves include stopes, drift & fill mining, and ore development, estimated at a cut-off grade of 2.0 g/t Au. 3. Incremental ore is material between 1.0 g/t Au and 2.0 g/t Au that must be extracted to access higher grade areas. This material can be processed economically. 4. Cut-off grades include consideration for copper and silver contributions. 5. Mineral Reserves are estimated using average long-term prices of US$1,250 per ounce gold, US$3.00 per pound copper, and US$20 per ounce silver. 6. A minimum mining width of 4.0 m was used. 7. Bulk density is 2.7 t/m3. 8. Numbers may not add due to rounding.

The Mineral Reserves consist of selected portions of the Indicated Resources that are above a 2.0 g/t Au cut-off grade. This cut-off grade was applied at the level of stoping solids, after including waste and fill dilution.

RPA is not aware of any mining, metallurgical, infrastructure, permitting, or other relevant factors that could materially affect the Mineral Reserve estimate.

DILUTION AND EXTRACTION

Dilution has been included in the Mineral Reserve estimate through the following: • For longhole stopes, dilution from the surrounding rock was based on estimates of over-break on exposed (i.e., not adjacent to a neighbouring stope) surfaces:

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o 0.35 m on walls and floors. o 1.0 m on stope backs within the more competent silicified zone. o 2.0 m on stope backs close to the boundary of unsilicified material.

• Dilution grades for over-break were based on assays immediately adjacent to stope boundaries, which averaged 0.8 g/t Au, 20 g/t Ag, and 0.17% Cu.

• Fill dilution was included based on the same over-break distances, but at zero grade.

Applying the rules above to the longhole stopes resulted in rock dilution of 6.4% and fill dilution of 4.7%, for a total dilution of 11.1%. Details are provided in Table 15-2.

TABLE 15-2 DILUTION DETAILS INV Metals Inc. – Loma Larga Project

Rock Fill Total Type Sequence Elevation E-W Volume Volume Frequency Dilution (m3) (m3) 1 Primary Top East 558.75 105 14.8% 7% 2 Primary Middle East 78.75 105 4.1% 4% 3 Primary Bottom East 183.75 0 4.1% 7% 4 Primary Top Middle 480 183.75 14.8% 6% 5 Primary Middle Middle 0 183.75 4.1% 3% 6 Primary Bottom Middle 105 78.75 4.1% 6% 7 Primary Top West 558.75 183.75 16.5% 7% 8 Primary Middle West 78.75 183.75 5.8% 4% 9 Primary Bottom West 183.75 78.75 5.8% 7% 10 Secondary Top East 558.75 315 19.4% 7% 11 Secondary Middle East 78.75 315 8.8% 3% 12 Secondary Bottom East 183.75 210 8.8% 7% 13 Secondary Top Middle 480 393.75 19.4% 6% 14 Secondary Middle Middle 0 393.75 8.8% 3% 15 Secondary Bottom Middle 105 393.75 8.8% 6% 16 Secondary Top West 558.75 393.75 21.2% 7% 17 Secondary Middle West 78.75 393.75 10.5% 3% 18 Secondary Bottom West 183.75 210 8.8% 7%

Averages Primary 6.3% 2.6% 8.9% 51% Secondary 6.5% 6.9% 13.5% 49% Total 6.4% 4.7% 11.1% 100%

Drift and fill stopes were diluted using a global factor of 2% at zero grade. No additional dilution was applied to development ore.

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Extraction (mining recovery), used in this study is 98% for drift and fill, 95% for longhole mining, and 100% for development ore.

CUT-OFF GRADE CALCULATION

Based on the Mineral Resource NSR and cut-off grade (COG) calculation, stope shapes of greater than 2.0 g/t Au were considered for the mine plan. After completion of the cash flow model, the initial COG was validated to ensure that it aligns with the initial assumptions. The COG calculation is presented in Table 15-3.

TABLE 15-3 CUT-OFF GRADE ESTIMATE INV Metals Inc. – Loma Larga Project

Parameter Units Value Tonnes kt 11,638 Copper Grade % Cu 0.29 Gold Grade g/t Au 5.0 Silver Grade g/t Ag 28

Net Recovery1 Copper % 82 Gold % 90 Silver % 94 Net Payability1 Copper % 96.5 Gold % 90.5 Silver % 84.5 Metal Prices Copper US$/lb 3.00 Gold US$/oz 1,250 Silver US$/oz 20 Cash Flow Gross Revenue US$ / t proc 192.67 TCRC US$ / t proc 30.06 Net Smelter Return US$ / t proc 162.60 Royalties @ 5% US$ / t proc 8.13 Unit NSR US$ / t proc 154.47

Revenue per Metal Unit Copper US$ per % Cu 37.18 Gold US$ per g Au 26.56 Silver US$ per g Ag 0.41

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Parameter Units Value Gold Equivalent for COG2 US$ per g AuEq 31.02

Operating Costs Mining US$ / t proc 36.30 Processing US$ / t proc 14.23 General and Administration US$ / t proc 7.27 Total US$ / t proc 57.80

Breakeven COG3 g/t AuEq 1.9 g/t Au 1.6 Surface COG4 g/t AuEq 0.7 g/t Au 0.6

Notes: 1. Net recovery and net payability are the total and weighted average of the two concentrates, respectively. 2. Gold equivalent in the COG context was calculated using the formula: US$26.56 per g Au + (6 g/t Ag per 1 g/t Au * US$0.41 per g Ag) + (0.06% Cu per 1 g/t Au * US$37.18 per % Cu). Note that this formula assumes that a consistent linear relationship exists between the gold and silver grades, and the gold and copper grades. For gold equivalent calculations in a production context, see the section labelled Gold Equivalent Calculation, within Chapter 15. 3. Breakeven COG considers the metal needed to cover total operating costs, such that net operating cash flow equals zero. 4. Surface COG considers that the material has already been mined and brought to surface, and the metal content must be sufficient to cover processing and G&A operating costs, such that net operating cash flow equals zero.

As is shown in Table 15-3, the COG calculation based on Mineral Reserves closely resembles the initial COG calculation performed in the Mineral Resource Estimate section. RPA notes that the surface COG, defined as material that has already been mined but not processed, is calculated to be 0.7 g/t AuEq, or approximately 0.6 g/t Au. In RPA’s cash flow model, the minimum grade for incremental material was set at 1.0 g/t Au. Thus, there is some upside within the existing schedule where material between 0.6 g/t Au and 1.0 g/t Au could be stockpiled for future processing.

GOLD EQUIVALENT CALCULATIONS

Since Loma Larga is a multi-element deposit, with three separate metals that contribute value, gold-equivalent calculations have been completed for reporting purposes. The calculation of gold equivalent ounces is shown in Table 15-4.

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TABLE 15-4 GOLD EQUIVALENT CALCULATION INV Metals Inc. – Loma Larga Project

Parameter Units Value Revenue per Metal Unit Copper US$ per % Cu 37.18 Gold US$ per g Au 26.56 Silver US$ per g Ag 0.41

Conversions Cu as AuEq oz Au : lb Cu 490 Ag as AuEq oz Au : oz Ag 64

To convert between gold production and gold equivalent production, the following formula should be used: Au production (oz) + (Ag production (oz) / 64 oz Ag per 1 oz Au) + (Cu production (lbs) / 490 lbs Cu per 1 oz Au).

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16 MINING METHODS

INTRODUCTION

Gold mineralization at the Project occurs within four zones – the High Grade Main Zone, which is classified as an Indicated Mineral Resource, the Low Grade Main Zone, which contains both Indicated and Inferred Mineral Resources, and the High Grade Lower Zone and Low Grade Lower Zone, which are classified as Inferred Mineral Resources.

Indicated Mineral Resources in the High Grade Main Zone only were converted to Mineral Reserves. The High Grade Main Zone (Figure 16-1) is the largest of the four zones, is relatively flat-lying, undulates along strike and varies in thickness from five metres to 100 m. The block model used for the mine design extends from the top elevation to 3,560 MASL elevation (approximately 175 m depth from surface).

The rock mass quality of the host rock ranges between Very Poor and Good, and significant ground support will be required in areas that have poor or lower ratings. The rock mass quality of the High Grade Main Zone is of better quality than the rock mass of the host rock, which will allow for mining via large, unsupported excavations (longhole stoping). High-grade areas too small to mine using longhole stoping will be extracted with drift and fill mining. In the upper levels of the High Grade Main Zone, ground support requirements for development headings and stopes will increase as they near the host rock. Development for longhole stopes that are within 7.5 m of the edge of the silicified zone will be cable-bolted.

The high grades of the Loma Larga deposit justify a “maximum extraction” approach with no pillars, through the use of cemented paste backfill. Unconsolidated waste will be used as backfill where it does not affect extraction.

The Loma Larga deposit will be accessed using a ramp on the northeastern side of the deposit, to take advantage of topography and to reduce the length and cost of the ramp. Levels and accesses have been designed within the low grade mineralization, taking advantage of better ground conditions, and limiting the amount of waste development.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 16-1 FAR Portal EAR 1 Development EAR 2 Sequence EAR 3

16-2

Phase 1 Phase 2 Phase 3

Figure 16-1

INV Metals Inc. www.rpacan.com

Loma Larga Project Azuay Province, Ecuador 3D View of Mine

August 2016 Source: RPA, 2016. www.rpacan.com

Mining will be carried out by mechanized equipment, working three eight-hour shifts per day to produce 3,000 tpd ore, over a 12 year mine life. Year 1 will see processing of 945 ktpa, Years 2 to 10 processing at the design capacity of 1,050 ktpa, Year 11 processing 959 ktpa, and Year 12 processing 284 ktpa. Excluding Year 12, the site will produce concentrates containing an average of 150,000 ounces of gold per year.

MINING METHODS

The main objectives of the mine design for the Loma Larga deposit were: • To adopt the most appropriate mechanized stoping method for the anticipated conditions.

• To maximize overall extraction of the high grade portions of the resource.

• To minimize underground mining capital and operating costs for an operation at a production rate of 3,000 tpd.

• To access the highest grade ore early in the production schedule.

• To optimize the mine life and maximize the NPV of the Project.

Loma Larga will use two mining methods to extract the ore, longhole and drift and fill. Longhole stoping using paste backfill provides good productivity, high extraction, and stable back support. Drift and fill mining provides extraction of smaller areas unsuitable for longhole stoping.

The longhole stope design parameters are 15 m W x 15 m H x 30 m L. The stoping height was increased in places to adjust for the undulating deposit. Approximately 62% of the stopes are 15 m in height, while 31% are 20 m in height, and 7% are 25 m in height. For stopes greater than 15 m in height, the strike length was reduced to maintain an appropriate hydraulic radius, based on geotechnical considerations. In areas that are less than 15 m, drift and fill mining will be used to extract the ore using 5 m W x 5 m H drifts.

Capital and operating development will be done with 4.5 m W x 4.5 m H arched back drifts. In the production schedule and cash flow model, it was assumed that all capital development will be shotcreted, bolted, and screened.

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LONGHOLE MINING The longhole mining will be done using primary and secondary stoping mining from east to west. The drift and fill mining will also be done with primary and secondary drifting and mined from the bottom up. The mining will move in a front from north to south.

The majority of the deposit is between 15 m and 100 m thick, allowing for longhole mining methods. Longhole mining represents 73% of the total production tonnes mined.

Within the north-south direction of the mining front, stopes are being extracted from an east to west direction. Based on current information available, anticipated ground conditions are superior in the western side of the deposit as all development can be completed within the silicified zone. Therefore, mine infrastructure such as access drifts, ventilation raises, and haulage drifts will be placed there. Ore development would occur eastward until the deposit extent is reached. Longhole stope activity would then retreat to the main access, occurring from east to west. The eastern edge of the orebody has a sharp contact between the silicified and unsilicified zone.

Ground conditions were assessed by Itasca Consulting Canada Inc. (ICCI), as discussed in the Geotechnical Considerations section further in this Chapter. A stope size of 15 m high x 15 m wide x 30 m long was selected by RPA based on recommendations from ICCI. The stope height is assumed to be floor to floor (i.e. the floor of the bottom stope to the floor of a vertically adjacent stope). The stopes will be mined in a primary/secondary sequence, retreating from east to west and bottom to top. Due to the undulation of the deposit, some stope heights increase to a maximum of 25 m to allow for optimization of the number of vertical lifts. Within the High Grade Main Zone, stopes stack up three to four high and three to four units east to west.

The relatively small size of the stopes corresponds well with the production rate of the mine. The small stopes will allow for a relatively quick turnaround time, thus limiting the time that a stope is left unfilled. The average turnaround time for a stope will range from four to six weeks. Leaving stopes open for long periods of time increases the risk of ground failure.

Top sill development will provide a platform from which blasthole drilling and loading can be effectively conducted. Bottom sill development provides access to Load-Haul-Dump (LHD) vehicles to muck out the blasted rock. The need for access to the top and bottom sills of each

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Longhole stoping will utilize In-The-Hole (ITH) or top-hammer drills capable of creating holes 64 mm to 100 mm in diameter (2.5 in. to 4 in.). Drilling is carried out from the top sill in a ring drilling or parallel drilling pattern, drilling towards the bottom sill access. Drilling deviation should be minimal as stope heights are well within drill equipment capabilities.

Loading of explosives is most easily conducted from the top sill, as explosives can be gravity fed into the drill holes. Slot raises will be created by use of drop raises, a densely-drilled cut including some larger diameter reamed holes, generally from the top sill down to the bottom sill. Slot raises are used to provide space for rock expansion during blasting.

Stopes will be mined and mucked, and subsequently filled with cemented paste fill. Once the primary stopes are mucked and filled, mining of secondary stopes can occur after curing of fill in the primary stopes achieves a strength that will generate minimal dilution. The cement content of the paste backfill is assumed to be six percent for primary stopes, and four percent for secondary stopes. Within secondary stopes, a portion of the void can be filled with unconsolidated rock fill (URF).

Mucking will be carried out with the use of 7.0 m3 LHDs, loading 40 t underground haul trucks. The trucks will be loaded in the vicinity of the main haulage drifts in the mine. Some remote control operation of LHDs is required, so that personnel will not be exposed to open stopes.

DRIFT AND FILL MINING Drift and fill mining will be the main mining method in the southern area of the High Grade Main Zone. Drift and fill mining is also planned on a smaller scale in the central and northern parts of the mine.

The drift and fill mining method involves mining horizontal slices (cuts) with drifting in ore completed in a manner similar to excavation of development headings. The cuts are mined from bottom up. In general, multiple five-metre high cuts are accessed from a haulage drift or ramp, located in the footwall (western edge). Each cut has been further sub-divided into transverse and longitudinal mining blocks based on horizontal hanging wall – footwall distance criteria.

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Where ore lenses regularly exceed 15 m in width, transverse mining blocks are employed, with ore drifts extracted perpendicular to the strike of the ore in a multi-heading advance scenario, from a footwall ore drift driven along strike.

Where lens widths are regularly less than 15 m, longitudinal mining blocks are employed, with single heading advance combined with slashing in order to follow irregular lens geometry. Longitudinal mining will be less efficient than transverse mining, due to limitations on the number of workplaces in a given area.

Transverse ore drifting will follow a primary, secondary sequence, with a paste backfill cycle after each drift is completed. Drift and fill mining represents 18% of the total production tonnes mined.

Tight filling of all drift and fill mining drifts will be a necessity to limit unravelling of the rock mass. Filling operations and the in-situ strength of the fill will need to be strictly controlled in order to realize productivity assumptions.

Once mining of an ore drift is completed, a single barricade will be constructed across the drift mouth close to the footwall ore drift and the drift will then be backfilled with paste fill. Barricades will be constructed using timber sets, fabrene cloth, and steel cables anchored into the adjacent rock or paste fill walls. Once all ore drifts have been mined and filled, the footwall ore drift is filled on retreat toward the cut access.

GEOTECHNICAL CONSIDERATIONS

ICCI was contracted by RPA to assist with geomechanical aspects of the mine design for the PFS. ICCI did not visit the site. In completing its mandate, ICCI has relied upon certain aspects of Golder Associates’ (Golder) work along with historical core data, drill logs, etc. provided by INV. Golder was previously commissioned by IAMGOLD in 2008 to review available geotechnical data, provide high-level recommendations pertinent to the mine design for the 2008 PFS and outline requirements for further geotechnical studies.

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GROUND CONDITIONS The rock mass at Loma Larga can be subdivided into two main geomechanical domains: Orebody Domain (OBD) and Host Rock Domain (HRD). The distinction between the two domains is in the degree of rock silicification. The rock mass of the OBD is silicified (Golder 2008), and the HRD’s rock mass is not. Presence of silicification significantly increases the intact strength of rock. Hence, the rock mass in the OBD is much more competent than in the HRD.

The rock mass silicification is associated with mineralization. The current understanding of rock mass conditions is that the orebody is hosted within the silicified zone (Golder 2008), hence within the OBD. This was taken into the account in mine design.

Mean Rock Mass Rating (RMR) value of 69 suggests that the OBD rock mass can be classified as ‘Good’ rock (Bieniawski 1989). The rock mass of the HRD is characterized by weaker rocks with lower intact strengths. The rock quality in HRD is further diminished by various types of clay alterations that are common at Loma Larga. Based on the mean RMR rating of 54, the rock mass of the HRD can be classified as ‘Fair’. ICCI’s examination of drill core photos support this.

Interpretations of structural data show that the rock mass at Loma Larga contains a significant number of sub-vertical faults with various orientations. Iron-colour staining visible on the surfaces of recovered core fragments indicate presence of groundwater. This suggests that faults at Loma Larga are likely to be conductive and may serve as conduits for the groundwater to enter the underground workings. Because the rock mass is jointed and faulted, it is prudent to assume that groundwater will be a factor in affecting rock mass quality and mining activities

LONGHOLE MINING In the areas of longhole mining, RPA has selected to use 15 m wide x 15 m high x 30 m long open stopes with vertical sidewalls. ICCI used the Modified Stability Graph empirical method to verify the suitability of the stope dimensions with respect to stope wall stability.

The results of the stability analysis suggest that walls and back of open stopes excavated within the deposit domain or silicified strata will likely remain stable. In contrast, if stope walls are excavated in the unsilicified or weakly silicified rock mass, which is characteristic of the

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 16-7 www.rpacan.com host rock geomechanical domain, the stopes are expected to cave. The stopes were designed to stay within the silicified zone. The stopes that are situated at the contact with the unsilicified zone will have additional ground support, including cable bolts.

Assuming that the current deposit is located within the silicified rock mass envelope, the proposed open stopes should remain stable, provided that backfill is introduced in a timely manner. Based on the results of the analyses, a long vertical wall of a typical stope (15 m high x 30 m long) may experience instability if ground conditions are poor. Because of the nature of the mining method, the long dimension of the stope being oriented east-west, in the direction of the retreat, potential wall instabilities, if they pose problems, may be controlled operationally by reducing the length of the stope. Thus, ICCI does not see significant issues with the proposed stope sizes. At the same time, ICCI would not recommend increasing stope length beyond the selected dimension of 30 m. In areas where the stope height is increased to 25 m, the length of the stope is decreased to 20 m to maintain the hydraulic radius.

With respect to the back of a typical stope excavated in a silicified rock mass, ICCI also finds stope width of 15 m appropriate for Loma Larga. Until rock mass is better characterized, ICCI would not recommend increasing the stope width.

The results of the analysis demonstrate the importance of excavating stopes within the silicified rock mass and not transcending the boundary of the silicified zone. Consequently, it is important to establish the geometry of the silicified zone reliably and to develop guidelines regarding stope offsets from the silicification boundary.

In the mining sequence, ICCI comments that the preference should be given to mining of the stopes above rather than to the ones in the retreat direction. If the stopes on the retreat are mined first, depending on the quality of the rock above and on the area that was mined out, the rock mass above the mined area can start deforming, making it difficult to mine the level located above. Again, this ties to the idea of developing a mining sequence such that the mining front retreats uniformly from east to west. RPA agrees with this and adjustments to the sequencing can be done in future studies.

RPA recommends that longhole drilling and blasting be done cyclically. The drilling and blasting of the stopes should be done in stages to allow for monitoring of the stopes and backfilling if necessary.

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Further study is required in order to have a clear understanding of the transition zone between the unsilicified (host rock), and silicified rock (deposit). This will allow for a better estimate of ground control requirements and mining methods, as well as stope sizing.

DEVELOPMENT HEADINGS For development heading ground support, ICCI used a systematic approach for ground support – a combination of pattern bolting, screen, and shotcrete dependent upon ground conditions. It also recommends arch backs for the development. The level of support required will be dependent on ground conditions.

For development within the silicification zone (both ore and waste development), ICCI recommends the use of rebar and screen (1.5 m x 1.5 m spacing, dice-5 pattern with 2.4 m long rebar in the back). Along the walls, screening to within 1.5 m of the floor using 1.8 m rebar and the same bolting pattern is recommended.

In the host rock (unsilicified zone), the screen and bolt lengths remain the same. The spacing reduces to 1.2 m x 1.2 m and fibre-reinforced shotcrete is required at 100 mm thick. The typical bolting pattern is shown in Figure 16-2.

ICCI recommends the backs of the intersections should be supported with three metre long rebar. The change from 2.4 m to three metre rebar should start one development round prior to intersection and continue past the intersection for one development round in all directions of the intersection. Alternatively, cablebolts or Swellex bolts can be used.

The importance of the main access dictates that the main ramp should be shotcreted along its entire length. Heavier support, possibly shotcrete arches or steel sets, may be required near the portal and in the upper portions of the ramp if poor ground conditions are encountered. Within the study, additional ground support was costed to account for this potential in all lateral capital development.

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Figure 16-2

INV Metals Inc. Loma Larga Project Azuay Province, Ecuador Typical Ground Support in Unsilicified Zone

August 2016 Source: RPA, 2016. 16-10 www.rpacan.com

DRIFT AND FILL MINING For drift and fill drives, ICCI recommends an arched back. It is recommended that additional work be done to allow for the implementation of flat backs to increase mining extraction. For primary drifts, the ground support requirement is the same as for development within the deposit. In the secondary drifts, split sets should be installed in the exposed fill wall instead of rebar. Shotcrete should be used in poor ground conditions.

RAISE SUPPORT It is understood that not all vertical bored raises will require support. In competent ground within the deposit, this would be acceptable, provided that a raise is not intended to be used for personnel travel. If a raise is intended for personnel travel, as a mean of secondary mine egress for example, or if a raise is located in poor rock mass and slugging is determined to be an issue, ground support will be required.

Raises should be supported as follows: • Screen; and • 1.8 m long rebar on 1.5 m x 1.5 m spacing, offset-row bolting pattern.

For the north fresh air raise (FAR), it may be easier to develop the raise using an Alimak, since it will require support and the installation of a ladder system and services.

GENERAL COMMENTS Following the review of geomechanical data and of the mining method, ICCI notes several issues that will affect mining at Loma Larga. These are based on ICCI’s general mining experience and are entirely qualitative at this time.

MINING METHOD AND HANGING WALL RESPONSE One important aspect of the mining method considered for Loma Larga is the response of the hanging wall to mining. For a flat-dipping deposit, the hanging wall is the entire rock mass above the deposit. The mining method relies on backfill for the hanging wall support, and the fill must be placed tight against the hanging wall rock mass in order to be effective. Tight filling is always a challenge and needs to be effective for the mining method to work as intended, preventing significant deformations of the hanging wall rock mass.

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At this time, it is difficult to estimate if the proposed mining approach will cause significant relaxation of the hanging wall. To mitigate this potential, mining has been designed to stay within the mineralized zone (Good rock quality) along with additional support being planned for at the contact boundary (pattern cable bolting). ICCI notes that additional modeling should be done to understand this potential.

ROCK MASS SILICIFICATION The geomechanical assessment is built on the understanding of a silicified deposit at Loma Larga. The existence of the silicification was described by Golder based on their review of IAMGOLD drilling and geological modelling (Golder 2008). This work by Golder recommends that additional work be carried out and ICCI supports this recommendation.

FAULTING Faulting is extensive at Loma Larga. Faults will influence the rock mass behavior both at a local scale and at a larger scale if the fault is major and not addressed correctly. The assessment presented in ICCI’s document did not account for the presence of faults but ICCI notes that the mining method selected by RPA for Loma Larga has the flexibility to address faulting as they occur by the addition of ground support or shortening of stope strike lengths. The ability of faults to conduct groundwater will magnify any potential problems associated with faults.

The effects of faults can be manifested at different scales. In the scale of the mine, faults will affect the response of the hanging wall. On the scale of a bulk stope, the poor rock mass of a fault zone will contribute to dilution and cause enlargement of the stope. On the scale of a drift, crossing faults will demand higher ground support requirements and slower advance rates. The ability of faults to conduct groundwater will magnify any potential problems associated with faults.

EXCAVATION OF RAISES Currently, raises are proposed to be bored. Given that some raises will require ground support, raise boring may not be the most cost-effective approach to their construction. Alimak raise development, which allows installation of ground support on round-by-round basis, may be a better approach.

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GEOTECHNICAL RECOMMENDATIONS Based on the limited review of available geomechanical data and taking into account the proposed mining method, ICCI makes the following recommendations for the next phase of engineering work at Loma Larga: • ICCI understands that a 3D geologic model of the deposit has been constructed and note that its use as the foundation for a geomechanics model will be beneficial for work during the Feasibility Study.

• ICCI notes that a fault model has been developed by INV and that this information will be useful in the advancement of the geomechanical assessment of Loma Larga.

• A small-scale geomechanics drilling program with oriented core should be carried out. The objectives of the program will be to verify the existing rock mass characterization data, to study rock mass silicification and to establish boundaries of the silicified zone, to provide samples for laboratory strength testing and for weathering/degradation testing, and to provide structural information on joint orientations. The program needs to incorporate boreholes in the area of the future mine access portal and the main ramp.

• The portal location requires site-specific geotechnical investigation to be carried out as part of the drilling program.

• Acoustic and optical televiewer probing of existing open boreholes should be carried out. The purpose of this is to collect necessary information for joint set interpretations. The televiewer work should be carried out as part of the drilling program.

• Unconfined compressive strength (UCS) and triaxial testing should be carried out for the major lithological units which builds on the work completed by Golder. ICCI notes that INV intends to carry out a combined Geomechanical/Hydrogeological drill program with the purpose of providing this information.

• Hydrogeological studies must be completed. ICCI notes that INV is currently in the process of selecting a consultant to design, execute and analyze a site drill program to provide the information necessary to support the FS in this area. As groundwater will have significant effects on rock mass strength, it is critical to estimate groundwater inflow potential and means of it entering the mine. Hydraulic conductivity of faults and their potential to conduct groundwater must be assessed.

• Once the drilling program is complete and information is analyzed, including hydrological data, rock mass characterization needs to be carried out, and in the final stage, a geomechanical model of the deposit should be built. The geomechanics model will include geomechanical domains.

• As part of the next phase of work, stope sizes should be verified, using both empirical and numerical approaches. Numerical simulations aimed at establishing minimal offset distances between stoping and the edge of silicified zone should be carried out. Numerical simulations will also help with dilution assessments.

• Comprehensive analyses of backfill strength requirements should be undertaken using numerical modelling.

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• Mechanical properties of backfill, its strength, and deformation characteristics, must be established based on laboratory work. This should be carried out in conjunction with the determination of backfill strength requirements.

• ICCI strongly recommends that mine-scale numerical modelling be carried out. The modelling will help estimate the overall rock mass response to mining, especially the hanging wall behaviour.

• Numerical modelling should be used to verify and improve the mining sequence.

• Comprehensive ground support designs should be completed during the next level of study. This should include full pattern bolting designs for various ground conditions. Large underground excavations will require specific support designs.

• Design of the mine portal and its ground support must be completed.

UNDERGROUND MINE DEVELOPMENT

MINE DEVELOPMENT LATERAL WASTE DEVELOPMENT In order to accommodate the mobile equipment fleet and provide adequate ventilation at reasonable velocities, the drift size will be 4.5 m wide x 4.5 m high.

All lateral development, including ore headings, will be driven using two-boom jumbos equipped with telescopic slides to permit drilling of four-metre rounds. LHDs will transport ore to truck loading locations in strategic locations. These intersections will be cable bolted and enlarged (slashing of intersection corners and back) to ensure safe and efficient loading of the trucks. New ore storage capacity of at least 1,000 t is provided in a remuck on the level, irrespective of the size of the production area. The underground haulage trucks will have cab enclosures and a 40 t capacity. The trucks will haul all ore to a surface run-of-mine (ROM) ore pad located southwest of the portal. Waste from underground will be hauled to a temporary waste dump located west of the portal.

Waste development will access the ore zone from the west side of the deposit. All lateral waste development will have arched back profiles. This design has been chosen to improve the stability of openings given anticipated ground conditions. All waste development, with the exception of the surface ramp, has been designed in the silicified, mineralized zone. This has two advantages: improved rock mechanics and ground control, and the opportunity of some waste material being sufficiently mineralized where it could be sent either directly to the

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Ramps will be driven 4.5 m wide x 4.5 m high with a maximum gradient of 15%. A typical drift profile is shown in Figure 16-3. There are a few instances where cut accesses are driven at 20% for short distances. Due to the undulation of the deposit, levels are not at fixed elevations. There are three to four main level trends in the haulage design.

The main access ramp to the mine is designed to stay within relatively better ground, to the extent known. In areas where poor ground conditions are encountered, additional ground support will be required. Within the study, all capital development, or approximately 8% of total drift development, included additional ground support. It was also assumed that 48% of longhole stopes would come within the boundary of the unsilicified zone, and need additional ground support. Additional costs were included to account for this.

Drift and fill stope access development is designed at 5 m wide x 5 m high, to correspond with longhole stope dimensions.

A complete listing of development sizes is provided in Table 16-1. Details of the mine’s detonator and explosive magazines, fuel bays, and underground service bays are discussed in the Underground Mine Facilities Section of this report.

TABLE 16-1 UNDERGROUND DEVELOPMENT PROFILES INV Metals Inc. – Loma Larga Project

Width Height Arch Description (m) (m) Radius (m) Cut Accesses, Levels, Fresh and Return Air Drifts 4.5 4.5 1.0 Sump, Electrical 4.5 4.5 1.0 Ramps, Level Accesses 4.5 4.5 1.0 Ore Access Drifts 4.5 4.5 1.0 Ore Storage 6.0 4.5 1.0 Drift and Fill 5.0 5.0 - Fresh Air Raises 4.3 - - Internal Raises 4.0 - - Return Air Raises 4.0 - -

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ELECTRICAL CABLE

Dimensions are in metres

Figure 16-3

INV Metals Inc.

Loma Larga Project Azuay Province, Ecuador Underground Drift Profile

August 2016 Source: RPA, 2016. 16-16 www.rpacan.com

Ore is accessed via access drifts and ramps developed on the west side of the deposit. These access drifts and ramps provide access for both development and mining of the stopes. Each haulage drift varies in elevation and is developed using ramps that range +/- 15% gradient.

VERTICAL DEVELOPMENT The vertical development required for the Project is fairly minimal. The vent raises to surface are relatively short. One of the fresh air raises will be equipped with a ladder way system in it for secondary egress. This raise will require ground support as mentioned previously. The other raises will not require support, and are designed in a manner that will allow periodic mucking from the bottom to clear any loose material that may have fallen. The main raises to surface can be developed either using a raisebore or Alimak. For the purposes of this Study, a raisebore was selected because the round shape provides a naturally stable shape, and the smoothness of the raisebore benefits ventilation. Alimak raises require support and adjustments in size to compensate for the increased resistance.

ORE DEVELOPMENT There are two types of ore development, longhole stope development and drift and fill stope development.

Longhole stope development will use the same standard 4.5 m wide x 4.5 m high development as for waste mining. The longhole stope development includes excavating the top cut and bottom sill for each stope to enable access for longhole drilling and mucking.

For the purposes of this Study, as mentioned previously, the ore development for the drift and fill stopes will be driven at 5 m high x 5 m wide. The drift and fill development has two different requirements for the longitudinal stopes and transverse stopes.

For longitudinal drift and fill stopes (widths less than 15 m), development of the deposit will be carried out in single passes along strike. A temporary access drift will be driven from the footwall to hangingwall to access the multiple cuts, if necessary. For much narrower development areas which do not support driving two drift widths, the development will be single pass with slashing of the ore on retreat.

For transverse drift and fill mining, a footwall drift will be established to allow for services and ventilation. From the footwall drift, the primary drift and fill stope will be developed and

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 16-17 www.rpacan.com backfilled. Then the secondary drift and fill stope will be mined and filled. The footwall access drifts will be filled on retreat from the lift.

PRODUCTION SCHEDULE

Being a greenfields project, establishing sustainable production is the primary focus of the pre- production development.

The higher grade ore is located in two concentrations near the north and south ends of the deposit. The schedule allows for the development of primary infrastructure and the main ventilation system at the north end before production starts.

The LOM schedule generated for this Study is based on the High Grade Main Zone, which is classified as an Indicated Mineral Resource.

The LOM schedule has been designed to enable a steady-state production of 1,050 ktpa utilizing a combination of longhole mining and drift and fill mining. Early waste and ore development has been optimized to minimize the ramp-up period required prior to the start of plant commissioning. The LOM schedule forecasts a mine life of 12 years from start of commercial production. At a steady-state production of 1,050 ktpa, the required daily ROM ore production is 3,000 tpd.

PRODUCTIVITIES The mining rate of 3,000 tpd was selected based on the stope cycle times and the number of working areas that can be supported by the ore body. RPA selected CAE’s Studio 5DP software package and its integrated Enhanced Production Scheduler (EPS) for generation of the Project’s underground mining schedule. Productivity assumptions forming the basis of EPS schedules have been estimated from first principles using conventional spreadsheet methods.

HEADING DEVELOPMENT PRODUCTIVITIES Mine Working Days Heading development productivities are based on 350 mine working days per year, 24 hours per day, and seven days per week. The shift schedule will be three, eight hour shifts per day. Statutory holidays for Ecuador have been added to the schedule.

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Labour Assumptions Underground production and maintenance employees, including front-line supervisors, will work eight hour shifts with four crews scheduled to enable a seven days per week operation. Salaried employees will work a standard 40 hour work week, i.e., five days on/two days off.

Mobile Equipment Assumptions An average mechanical availability of 85% has been applied to the underground mobile equipment fleet. Mobile equipment productivities are based on a maximum of 6.50 operating hours per eight hour shift, or 19.5 hours per day. Additionally, RPA assumed an operational efficiency of 83%, or 50 minutes per hour for equipment. With this reduction in non-productive time, the effective work time per shift equates to 5.4 hours, or 16.25 hours per day.

Mobile equipment productivities have been estimated from first principles (i.e., calculated using equipment capacities, drilling rates, fill factors, average tramming and haulage distances, etc.) and compared to database references to ensure that the calculated productivities are reasonable.

Based on the calculated productivity, the number of equipment units required has been estimated to achieve scheduled monthly ore and waste development requirements. Where productivity calculations resulted in a single unit being required, the number of units was increased by one to allow for a spare in the event of unplanned breakdown.

LHD productivities have been calculated using a return tramming distance of 200 m, with a tramming speed of 5 km/h when loaded and 8 km/h unloaded.

Haulage truck productivities were estimated by using weighted-average haul distances, based on the median haul distance in each stoping block and weighted for the ore tonnage and an average hauling speed of 6 km/h when loaded, and 10 km/h when unloaded. While the trucks are capable of higher speeds, the average haul speed includes allowances for traffic delays on the ramps and levels.

Heading productivities have been derived from the development equipment productivities presented in Table 16-2.

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TABLE 16-2 DEVELOPMENT EQUIPMENT PRODUCTIVITIES INV Metals Inc. – Loma Larga Project

Equipment Class Productivity Units Value Development Jumbo m/d 9 LHD t/h 191 Haulage Truck t/h 32

Delay Assumptions In determining heading productivities, delays must be subtracted from the available working time. Delays present themselves in two forms: scheduled and unscheduled.

Scheduled delays include the following: • Travel time from line-up rooms, where shift work assignments are handed out. • Travel time to and from the working face at the beginning and end of the shift. • Equipment set-up, inspection, and tear-down time at the working face. • Equipment travel time to move to the next workplace.

Unscheduled delays include the following: • Equipment breakdowns. • Waiting for support labour (e.g., mechanics, electricians). • Waiting for a workplace to be ready or correction of un-safe workplace conditions. • Locating supplies. • Difficult ground conditions. • Difficulty clearing blast gases. • Paste fill delivery problems. • Workplace investigations/audits.

Heading productivities have been calculated assuming the following scheduled delays: • Travel time to and from the working face 0.5 hours • Equipment set-up and tear-down 0.25 hours • Lunch and scheduled breaks 0.75 hours • Travel to the next work place Variable

Heading productivities forming the basis of the mining schedule are presented in Table 16-3.

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TABLE 16-3 HEADING PRODUCTIVITIES INV Metals Inc. – Loma Larga Project

Single Single Profile Heading Heading Heading (mW x mH) (m/d) (tpd) All Capital Development 4.5 x 4.5 arched 5.55 324 All Drift and Fill 5 x 5 5.55 400

Consideration for internal backfill delays (i.e., seven-day wait between filling primary drifts and starting secondary drifts) were built into the productivities.

SCHEDULE ASSUMPTIONS 1. Mine working days are scheduled as described in discussion of productivities.

2. All necessary mobile equipment, qualified labour, and mining supplies are on site and ready to be deployed against mining tasks at the beginning of Year -1. In the labour cost estimate, an inclusion for a select number of expatriate mining personnel has been made to train the local workforce. Additionally, the labour force that is scheduled in Year -1 is assumed to be a professional mining contractor, with fully trained personnel.

3. Ore and waste development advance rates are based on crew productivities described in the Productivities Section.

4. By Year 1, the paste fill plant and surface and underground reticulation systems will be ready to deliver paste fill to the production areas at the required rate (55 m3/h) and specification.

RAMP-UP PERIOD The mine’s nameplate capacity of 1,050 ktpa of ore will be achieved in Year 1. Through the use of ore stockpiles generated from the mine prior to that date, ore deliveries have been matched to the process plant ramp-up period. Table 16-4 summarizes the results of the LOM schedule over the ramp-up period.

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TABLE 16-4 RESERVE SCHEDULE RESULTS - RAMP-UP PERIOD INV Metals Inc. – Loma Larga Project

Development Units Year -1 Year 1 Year 2 Lateral Development m 4,911 8,739 9,459 Vertical Development m 335 204 111

Longhole Ore kt 19 747 794 Drift and Fill Ore kt 2 19 114 Development Ore kt 72 107 143 Incremental Ore kt 9 15 12 Total Ore Mined kt 102 889 1,063 tpd 290 2,540 3,040

Au g/t 7.1 7.0 6.1

Waste Tonnes kt 200 337.6 203.2 Paste Fill m3 184,956 259,442

RESERVE SCHEDULE RESULTS Total ore production for the LOM schedule is 11.6 Mt at average grades of 4.98 g/t Au, 0.29% Cu, and 28 g/t Ag as presented in Table 16-5.

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TABLE 16-5 LOM SCHEDULE ORE PRODUCTION INV Metals Inc. – Loma Larga Project

Parameter Units Total Yr -2 Yr -1 Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Yr 6 Yr 7 Yr 8 Yr 9 Yr 10 Yr 11 Yr 12 Operating Days days - 350 350 350 350 350 350 350 350 350 350 350 350 350 Tonnes per day tpd - 291 2,539 3,038 3,135 3,104 3,094 3,079 3,303 3,039 3,380 2,433 2,007 811

Production kt 11,541 - 93 873 1,052 1,075 1,079 1,083 1,072 1,153 1,048 1,182 850 699 284 Au g/t 5.0 - 7.1 7.0 6.1 5.1 6.1 4.2 4.7 4.7 5.0 4.8 3.9 3.6 3.2

29, 2016 Ag g/t 28 - 49 45 34 33 36 35 20 21 20 23 17 23 30 Cu % 0.29% - 0.69% 0.54% 0.41% 0.30% 0.43% 0.27% 0.24% 0.22% 0.24% 0.24% 0.15% 0.13% 0.11%

LGO Material kt 97 - 9 15 12 23 8 - 6 3 16 1 2 3 - Au g/t 1.5 - 1.5 1.5 1.5 1.5 1.4 - 1.5 1.4 1.6 1.3 1.6 1.4 - Ag g/t 10 - 18 8 8 10 8 - 7 7 10 12 11 10 - Cu % 0.09% - 0.15% 0.07% 0.09% 0.08% 0.06% - 0.06% 0.07% 0.10% 0.07% 0.06% 0.06% -

Waste kt 1,085 - 200 338 203 131 33 - 28 38 71 6 9 28 - Total Moved kt 12,723 - 302 1,226 1,266 1,228 1,119 1,083 1,106 1,194 1,135 1,189 860 731 284

Development Capital m 6,896 - 2,270 3,017 1,354 ------139 99 16 - Operating m 30,797 - 2,600 5,231 5,187 6,945 1,702 - 1,470 1,657 4,307 - 416 1,284 - Drift and Fill m 54,274 - 41 491 2,918 2,493 6,866 4,184 4,290 5,622 4,545 5,714 8,198 6,555 2,357 Total Horizontal Development m 91,968 - 4,911 8,739 9,459 9,438 8,567 4,184 5,760 7,279 8,852 5,853 8,713 7,855 2,357

Vertical Development m 711 - 335 204 111 61 ------www.rpacan.com 1 6-23 Page

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MINE EQUIPMENT

The Study assumed that INV will purchase and maintain an underground equipment fleet. The number of major mobile equipment units (drill jumbos, LHDs, haul trucks) has been estimated based on the assumed productivities and the required daily production rate of 3,000 tpd. In addition to the purchased fleet, a mining contractor will perform capital drift development between Year -1 and Year 2. A total of 6,640 m will be developed by a mine contractor during these three years. This meterage is excluded from equipment fleet calculations.

Waste and ore development will be driven using two-boom jumbos equipped with telescopic slides to permit drilling of four metre rounds and drilling of hydrological test holes. The jumbos will be used for all lateral development at the mine.

Bolts will be installed using specialized bolting rigs. To minimize spare parts holdings and align maintenance procedures, RPA recommends that these units have the same carrier and rock drills as the drill jumbos.

Blast holes will be loaded with truck mounted ammonium nitrate fuel oil (ANFO) loaders equipped with pressurized powder vessels, hoses, storage, compressors, and a lift platform. An allowance for gel explosives has been assumed in the production model.

Mucking of development and ore rounds will be accomplished with 7.0 m3 LHDs, which will tram the ore and waste to remucks/dump drifts where the trucks will be direct loaded for transportation of the ore and waste to surface.

Drilling and blasting of longhole stopes will be carried out using longhole drills, and a truck mounted ANFO loader. Mucking of stopes will occur using remote controlled LHDs.

To support the mining operation, service vehicles such as cable bolters, road graders, explosive trucks, personnel carriers, 4x4 vehicles, shotcrete jumbos, and materials delivery vehicles have been included in the fleet.

Mobile equipment is summarized in Table 16-6.

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TABLE 16-6 MOBILE EQUIPMENT FLEET INV Metals Inc. – Loma Larga Project

Equipment Quantity Load Haul Dump - 7.0 m3 5 Underground Haul Trucks - 40 t 8 Two Boom Jumbo 3 Bolter 4 Longhole Drill (75 mm) 4 Cable Bolter 1 Explosives Loader 3 Scissor Lift 3 Boom Truck 1 Man Carrier 2 Fuel & Lube Truck 1 Underground 4x4 Vehicles 5 Grader 1

UNDERGROUND MINE SERVICES

VENTILATION DESIGN CRITERIA Ventilation requirements for the Project have been determined based on expected diesel equipment exhaust dilution requirements and underground air residence time, as modelled in VentSim software. The diesel production and service fleet power and utilization have been estimated, and a factor of 3.7 m3/min per kW has been applied.

The overall ventilation concept is based on a push-pull air system approach whereby main surface intake and exhaust air fans located at the ventilation raises are sized and operated to draw fresh air into the mine. Fresh air enters the mine through two vent raises in the centre of the deposit. A total of 400 m3/s of air is provided by the fresh air raises. The exhaust raises located at the north and south ends of the mine each pull 180 m3/s of exhaust air out of the mine. The remaining 40 m3/s of air is used to ventilate the ramp as exhaust. This system allows for the main access ramp to be isolated from the mine’s ventilation circuit. In the event of a fire in the ramp, the rest of the mine will remain isolated.

The various development headings in the mine (ore and waste) will be ventilated using forced ventilation supplied by auxiliary, axial mine fans.

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OVERALL VENTILATION REQUIREMENTS The design air quantity, based on mine life peak requirements, is 400 m3/s. From surface, the system comprises: • Two fresh air raises. The south fresh air raise has an escapeway ladder system in it. The raises are located in the centre of the deposit.

• Two exhaust raises located at the north and south ends of the mine.

• A ramp system exhausting air from the mine.

• Booster fans are used in key locations to direct airflows to areas of the mine as needed. Booster fans are used instead of ventilation doors so equipment is not slowed down.

In addition to the requirements for diesel exhaust dilution, air has been included in the ventilation design to account for: • Ventilating facilities such as service and fuel bays.

• Air leakage from imperfect installation and maintenance of the ventilation systems (20% contingency added to design flows).

VENTILATION INSTALLATION The ventilation installations are assumed to be on surface. The fan installations will be twin fans with inlet bells, silencers, back draught dampers and plenums. Re-enforced concrete pads will be poured for the installations. The fans will be variable speed and variable pitch with soft start activators. The intake fans will be 84 in. in diameter, with 150 hp motors and turning at 590 rpm. The exhaust fans will be the same with smaller 125 hp motors. This will allow for minimal parts to be stored on site. It is recommended to have a spare surface fan on site with a spare 150 hp motor that can be used for either intake or exhaust fans in an emergency. A spare set of blades and hub assembly is also recommended.

WORKPLACE VENTILATION CONCEPT Ventilation requirements have been derived from the maximum number of workplaces that will be active at any time. In practice, the equipment fleet will move from workplace to workplace from shift to shift, and although ventilation infrastructure must be in place in all locations, not all of the ventilation demand will be active on a given shift. Currently, no ventilation-on-demand (VOD) system has been envisioned for the mine, but this should be evaluated during future studies.

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RAMP AND LEVEL DEVELOPMENT VENTILATION Development air (~30 m3/s) for advancing the ramps and levels will be supplied by forced ventilation using development fans and ducting. Until the raise systems are in place on the ramp/level, development will be advanced using fresh air drawn from the ramp.

In order to adequately ventilate the ramp during construction, ducting systems will be used. To regulate air flow to/from the various raises, ventilation bulkheads, complete with equipment access doors, man-doors, and timber-style regulators, will be constructed in the entrance of each ventilation drift.

RAISE DEVELOPMENT The northern fresh air raise will be excavated with an Alimak raise climber, and equipped as a secondary egress. The southern fresh air raise will be excavated using a raisebore.

MINE AIR HEATING REQUIREMENTS Due to the local climate, heating or cooling the air is not required.

PASTE BACKFILL SYSTEM A cemented tailings paste backfill system has been selected for completion of backfilling activities. The superior, in-place fill quality that is typically realized with these systems is viewed to be a critical element for the safe and efficient extraction of ore in the ground conditions likely to be encountered in the Loma Larga deposit.

As part of the previous 1,000 tpd PFS, Outotec (formerly Revell Resources) was commissioned to conduct a paste backfill study for the Project. The intention of the backfill study was to cover the critical aspects of a paste fill system and to generate capital and operating costs. The results from the previous 1,000 tpd PFS backfill study have been updated to the current 3,000 tpd study.

It is understood that detailed geotechnical work will be conducted in future studies and it is important that this work be undertaken in conjunction with the backfill design work because relevant backfill properties must be considered in this work and the findings of the geotechnical work must be considered in paste fill assessment.

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PASTE FILL DEMANDS Based on a steady-state production rate of 1,050 ktpa, total fill demand is nominally 270,000 m3 per year for filling longhole stopes and drift and fill mining stopes. Considering the time needed for flushing backfill lines and the setup and teardown of new discharge points, a paste production rate of 55 m3 per hour was chosen as the starting point for paste plant design.

The entire paste fill system is designed to be operable 24 hours per day, although the plant will likely operate for approximately 12 hours per day, given the time required to change filling locations underground. An underground backfill crew will install backfill lines, build barricades, divert paste to the ore drifts, and monitor filling progress.

PASTE FILL STRENGTH REQUIREMENTS No testwork has been completed to support the Outotec study. In order to generate an indication of the likely binder requirements, a benchmark study was completed. RPA notes that tailings material is unique from project to project. Consequently, when tailings are used in backfill systems, a thorough suite of testing is recommended prior to implementation.

In the previous 1,000 tpd PFS study, Outotec compared the particle size distribution (PSD) testwork carried out by Golder in 2010, which was based on a different gold extraction process. The PSD for the current Study is much finer than the previous Golder study. It is well accepted that the paste strength achieved is heavily dependent on the PSD and that the finer the PSD the higher the binder content required to achieve the target strength. Therefore, another paste fill system with a similar PSD (referred to as Mine 1) and tailings specific gravity was used alongside the previous Golder UCS data to provide indicative binder contents for Loma Larga. It should be noted the Mine 1 mineralogy is somewhat different to Loma Larga.

Using both the Golder (2010) and Mine 1 data, Table 16-7 provides an estimation of the potential binder contents based on using locally available Ordinary Portland cement.

TABLE 16-7 POTENTIAL BINDER CONTENT INV Metals Inc. – Loma Larga Project

Paste Curing Time Binder Mining Method Strength (kPa) (days) Content (%) Primary Open Stopes 250 28 6% Secondary Open Stopes 100 28 4% Drifts 500 28 5%

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Within the study, an average of 5% binder was utilized for cost purposes. Key paste fill design criteria are summarized in Table 16-8.

TABLE 16-8 DESIGN CRITERIA FOR PASTE FILL PLANT INV Metals Inc. – Loma Larga Project

Fill Criteria Units Nominal Design Value Paste Fill Slump mm 240 Binder Content % 5.0 Paste Solids Content % 72 Total Paste Tonnage t/hr 110 Paste SG 2.0 Paste Throughput m3/hr 55

PASTE FILL PLANT DESIGN The paste plant is designed to mix filter caked tailings, water, and binder to produce paste. The plant is a batch mixing operation with paste delivered to the borehole via gravity. The paste plant has a design throughput of nominally 55 m3/h at a design solids content of 72% solids by weight. The binder storage and delivery system is capable of delivering up to 10% binder.

Tailings are filtered at the process plant and trucked to the paste plant location. It is envisaged that tailings would be hauled from the process plant to the mine area utilizing surface haul trucks. The Study assumed that surface haul trucks moving material from the mine to the process plant could also bring tailings to either the mine or tailings dry stack facility. Utilizing this combined haulage system does have a risk of contaminating fresh ore with residual tailings, and vice versa. If contamination becomes an issue, a dedicated fleet of haul trucks could be utilized to only haul tailings. The tailings are stored in a large covered shed to prevent additional moisture from rainfall entering the tailings.

At the paste plant a loader, fitted with a mobile integrated screening unit (MISU) bucket, screens and loads the material into the screw auger feeder. The MISU bucket is used to remove any foreign material and also, importantly, to break up the moist cohesive tailings.

A single 250 t silo is used for binder storage. From the silo an inclined auger delivers the binder into the 450 kg weigh hopper located above the planetary mixer. A Sicoma 3000/2000 planetary mixer will be used for mixing the tailings and binder material.

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Paste production is a batch process. The total cycle time is 180 seconds. A fixed level of 20 batches per hour is processed with each batch being nominally 2.75 m3.

Paste is discharged from the mixer over a 50 mm aperture vibrating screen to remove any foreign material or large lumps of unmixed paste. Oversize material discharges into the paste sump. The paste hopper has a capacity of 4 m3. The paste is discharged by gravity to the underground stopes.

PASTE BACKFILL UNDERGROUND DISTRIBUTION SYSTEM As part of the previous 1,000 tpd study, a brief assessment of the paste reticulation requirements have been completed. It has been assumed that the increase to 3,000 tpd does not impact this assessment. It is proposed to situate the paste plant nominally in the centre of the deposit. As a result, to deliver paste to the deposit extremities will result in a reticulation system with a vertical depth of 180 m to the upper levels and nominally 450 m horizontal distance. It is considered likely that the paste may be able to be delivered by gravity with no paste pump required. Further detailed work will be required in the next stage to confirm this initial assessment.

As a result, the paste reticulation system is very simple and likely a robust low cost system may be implemented. In the event that some upper stopes cannot be reached by gravity it is proposed they either be filled with an alternate backfill method, filled via agitator trucks either via the underground decline or from a surface borehole or a concrete pump is hired for the duration of filling of the stopes where gravity is not sufficient.

TIGHT FILLING CONSIDERATIONS As discussed previously, the stability of the ultimate hanging wall depends on the ability to place paste fill in full contact with the stope and drift backs. Three design approaches were considered to accomplish the objective of tight fill placement. • Design stopes and drifts with a slight downward gradient (two percent to three percent). This involves the downside of collecting water at the face during development, making drilling, loading, and blasting more difficult. Voids generated from an irregular back cannot be entirely eliminated with this approach.

• Multiple paste holes from surface – hit all of the high points. Involves higher costs for extra holes, plus the difficulty of achieving accurate breakthroughs from surface.

• Fill lines with multiple pressure-rated burst discs (applies only to drift filling). The lowest pressure-rated disc is installed closest to the end of the ore drift. Paste fill is delivered

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to the end of the line and fills the ore drift up to its natural angle of repose. When the fill line self-plugs, sufficient back-pressure develops in the fill line and the next disc ruptures and filling resumes from this point in the line. The process repeats itself as the filling front progresses back toward the access.

Although perfect tight-filling will never be achieved, some combination of these methods is assumed to provide sufficient support to the hanging wall to avoid excessive subsidence and local instability. This is to be confirmed with the geotechnical modelling work that is recommended for the next stage of study.

ELECTRICAL DISTRIBUTION The mine electrical distribution will be fed from the main plant site substation at a transmission voltage of 35 kV. The main underground supply will be derived from two 4 MVA 35 kV/6 kV transformers installed near the mine decline portal. Power will be distributed underground at 6 kV with local skid-mounted portable substations and distribution panels. A standby diesel generator situated adjacent to the decline portal substation will enable the main underground pumps to be supplied during any prolonged total power outage.

The underground load centres and mobile transformers can be modified to suit the changing mine requirements and can be sited accordingly. They are designed to be installed and removed from the circuit in sequence with the development of operations. Additional transformers may also be added into the circuit to supply remote fan positions. Nominally, the underground mine will consume approximately 20 million kWh per year.

COMMUNICATIONS A telephone communication system will be installed to provide communications between surface and the underground mine, with telephones located at the portal, electrical substations, and in the refuge stations of the mine.

The mine communications network will include a Supervisory Control and Data Acquisition (SCADA) system to monitor, control, and collect data from all the main operational centres of the mine. Operational information will be sent to programmable-logic controllers (PLCs) and displayed at the surface control centre and remote computer terminals.

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The SCADA system will be expanded in step with mine development and includes functionality that permits remote start and stop of essential equipment, such as ventilation fans and dewatering pumps, and control of mine lighting for use as an emergency warning system.

UNDERGROUND WATER SUPPLY Underground water supply will primarily depend on recycle and reuse of mine water that is captured in a sedimentation pond located near the mine portal. Pipeline connections to the plant area will provide additional water when necessary.

Mine water lines will be maintained at a minimum pressure of 200 kPa to ensure proper equipment operation.

The total underground water supply requirement is estimated to be approximately 26 L/s, and is largely dependent on the water requirements for the jumbos and bolters (3.3 L/s per unit). RPA assumes that this water can be recycled from surface and underground water capture systems, and that no additional water needs to be drawn from the surrounding environment.

MINE DEWATERING No new hydro-geological studies have been undertaken as part of this PFS. The original IAMGOLD PFS estimated groundwater inflow to range from 0.5 Mm3/yr to 0.9 Mm3/yr (15.8 L/s to 28.5 L/s), based on a 1.8 km north-south extent of mine workings. The current mine design has a 1.2 km north-south extent. Although this is less than the 1.8 km extent in the original PFS, RPA has conservatively used the high range of groundwater inflow in the Study.

Geotechnical analysis and core photos suggest that water inflow may be significant, particularly in areas above groups of longhole stopes, where some relaxation of ground is expected, opening water-conducting faults. A dewatering system, both in the mine and on surface, has been planned and costed to mitigate this risk.

The previous groundwater inflow rates were used for the current PFS.

Mining activities that are expected to generate notable quantities of water include exploration drilling, face drilling and bolting activities, wetting of muck piles, backfill system flushes, as well

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 16-32 www.rpacan.com as natural groundwater inflow. Total dewatering requirements for the mine are summarized in Table 16-9.

TABLE 16-9 DEWATERING REQUIREMENTS INV Metals Inc. – Loma Larga Project

Mine Water Source Maximum Quantity (L/s) Ground Water 28.5 Mine Equipment 26.4 Backfill Drainage (2 drifts, 2 stopes) 4.4 Total 59.3

RPA notes that 59.3 L/s is the maximum to be pumped out of the mine, not the net excess water from the mine (for purposes of calculating water balance). A portion of this water will be immediately recycled and reused, as detailed in the water supply sections above.

A Schedule 80, 102 mm diameter dewatering line will be installed in the ramp and level access system (supported beside the raw water supply lines) and will be routed via the mine portal to deliver mine water to the capture pond for settling/clarifying and disposal of excess water via the water management facility at the plant site.

Field programs, including hydraulic tests and piezometer installation, are necessary to confirm permeability and hydraulic gradient data in the deposit and the host rock, and to improve the estimate of groundwater inflow over the life of the mine.

UNDERGROUND MINE FACILITIES

MAINTENANCE Where possible, major maintenance work and routine preventative maintenance will be completed at the surface shops. Critical breakdowns underground will be addressed by maintenance personnel via mobile service trucks. A minor maintenance bay will be installed in the underground mine.

FUEL BAY Diesel fuel will be delivered from surface by underground fuel truck directly to both the underground equipment and a fuel station. Mining equipment that is dedicated to work

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 16-33 www.rpacan.com headings will be re-fuelled and lubed in the workplace directly from a dedicated fuel/lube truck. Mining equipment that is more of a mobile nature (LHDs, haul trucks, etc.) will receive fuel from a portable self-contained fuel station within the mine.

EXPLOSIVE MAGAZINES Explosives storage for the Project comprises a detonator/booster storage magazine and a fully-equipped explosives magazine located on surface, at a one-kilometre stand-off distance from other infrastructure. Stick and perimeter powder, detonating cord, and 1,000 kg bags of ammonia-nitrate prills mixed with fuel oil (ANFO) will be stocked on the mobile loading equipment on a shift-by-shift, as-needed basis.

At the beginning of each shift, blasting crews will sign out detonators and/or boosters from the detonator magazine and replenish the explosives loaders at the explosives magazines.

REFUGE AND LATRINE FACILITIES Portable refuge stations will be advanced with lateral development. As levels approach the ore production phase, they will be located in fresh air drifts which connect to the fresh air raise systems and path of secondary egress from each lens. Refuge locations will be located at least 60 m away from all electrical and explosives installations.

Similarly, portable latrine facilities will be advanced with lateral development, with semi- permanent locations established at the level return air drift prior to initiating ore production from the level. Latrine locations will be equipped with a hand-washing station.

ELECTRICAL SUBSTATION As part of the mine design, 5 m wide x 5 m high x 12 m long electrical drifts have been provided on every level for the housing and protection of a single 6 kV/ 400 V/500 kVA mine power centre (MPC). Generally, electrical drifts have been centrally located on the level near the level access intersection.

Each MPC will supply power to the immediate level. The MPC will supply local 6 kV/400 V transformers which power the level ventilation fans, development and longhole drill rigs, pumps, and other ancillary equipment.

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17 RECOVERY METHODS

The process design and associated cost estimates were completed by Samuel Engineering under the supervision of RPA.

The process design includes: • Primary jaw crusher, • Single stage semi-autogenous grinding (SAG) mill and classification, • Sequential flotation

o Copper rougher flotation, copper concentrate regrinding, and copper cleaner flotation,

o Pyrite rougher flotation, pyrite concentrate regrinding, and pyrite cleaner flotation, • Concentrate thickening, filtering, and loading, • Tailings thickening and filtering, and • Tailings loadout.

A simplified block flow diagram for the processing facilities is provided in Figure 17-1.

The crushing circuit includes a single stage of crushing using a jaw crusher. Ore from the underground mine will be delivered via surface haulage trucks from the mine stockpile to the process plant stockpile. The primary crushing area is constructed using rock gabions as the support structures. A front end loader (FEL) will move the ore from the stockpile to a 100 t dump hopper. A vibrating grizzly feeder will draw the ore from the dump hopper and classify it into two streams. The oversize from the grizzly feeder will discharge into a jaw crusher. A rock breaker is provided at the jaw crusher to break any oversize material that is transported to the crushing circuit.

The undersize from the grizzly and the discharge from the jaw crusher will fall onto the primary crusher discharge conveyor that transfers ore to a transfer conveyor. From the transfer conveyor the crushed ore is deposited into the crushed ore stockpile, which has a capacity of 13.6 kt, or approximately 4.5 days of production.

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Three reclaim feeders will draw ore out of the stockpile and transfer it to the SAG mill feed conveyor. The feed conveyor transfers the ore into a SAG mill. Process water is also added to the SAG mill feed to produce a slurry density in the mill of approximately 75% solids by weight. The slurry discharges from the mill onto the SAG mill discharge screen. Underflow from the screen discharges into the primary cyclone feed pump box. From the pump box the primary cyclone feed pumps (one operating and one standby) pump the slurry to the primary cyclones. The cyclone underflow flows by gravity to the SAG mill feed for further grinding. The oversize from the SAG mill discharge screen is conveyed to a pebble crusher which is included to reduce the critical size particles that discharge from the SAG mill. The crushed pebbles are conveyed to the SAG mill feed chute. The overflow from the cyclones is the final product from the grinding circuit. It has a nominal particle size distribution of 80% passing (P80) 75 µm. The slurry flows across a trash screen prior to advancing to the copper flotation area.

The underflow from the trash screen flows by gravity into the copper flotation agitated conditioning tank. Milk of lime, sodium sulphite (Na2SO3), collectors (Aero 407 and Aerophine 3418A), and methyl isobutyl carbonol (MIBC) frother are added to the conditioning tank. The target pH is greater than 11.8.

The slurry overflows from the copper flotation conditioning tank into the copper rougher flotation circuit. The concentrate from the copper rougher flotation circuit is pumped to the copper regrind mill by the copper rougher concentrate pump. The regrind mill is an IsaMill that is designed to operate in open circuit. The target regrind size is P80 15 µm.

The ground slurry from the copper regrind mill discharges into the copper first cleaner flotation circuit. Additional milk of lime, methyl isobutyl carbine (MIBC), and 3418A are added to the circuit. The concentrate from the copper first cleaner flotation circuit is pumped to the copper second cleaner flotation circuit. The tailings from the copper first cleaner flotation circuit are recirculated to the copper flotation conditioning tank. The tailings from the copper second cleaner circuit are pumped to the feed of the copper first cleaner flotation circuit. The concentrate produced by the copper second cleaner flotation circuit is the final copper concentrate. The mass recovery to the final copper concentrate is approximately 0.8% at the average feed grade. The estimated concentrate grade is 30.0% Cu. For this Study, it is assumed that the recoveries and the concentrate grade of copper will remain constant. Correspondingly, the mass of concentrate and the gold, silver, and arsenic will change as the

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 17-2 www.rpacan.com feed grades to the plant fluctuate. The average copper concentrate grade is 111 g/t Au, 1,577 g/t Ag, and 10% As.

The tailings from the copper rougher flotation circuit are the feed to the pyrite rougher flotation circuit. They are pumped to the pyrite flotation agitated conditioning tank. Sulphuric acid

(H2SO4) and potassium amyl xanthate (PAX) are added to the pyrite flotation conditioning tank. The pH is modified to approximately 7.0.

The slurry overflows from the pyrite flotation conditioning tank into the pyrite rougher flotation circuit. Tailings from the pyrite rougher flotation circuit are the final tailings from the plant. Concentrate from the pyrite rougher flotation circuit is pumped to the pyrite regrind mill by the pyrite rougher concentrate pump. The regrind mill is an Isamill M500 225 kW mill. The target regrind size is P80 30 µm. The slurry from the pyrite regrind mill discharges to the pyrite cleaner flotation circuit. Additional sulphuric acid and PAX are added to the circuit. The tailings from the pyrite cleaner flotation circuit are recycled to the pyrite flotation conditioning tank.

The concentrate from the pyrite cleaner flotation circuit is the final pyrite concentrate. For this Study, it is assumed that the recoveries and the concentrate grades for gold will remain constant (i.e., 37 g/t Au). The silver grade and the mass of concentrate will change as the feed grade to the plant fluctuates. The average mass recovery is 9.8% and the average silver grade is 142 g/t.

The final copper concentrate is pumped to the copper concentrate feed agitated tank. From the tank the copper concentrate is pumped to the copper concentrate recessed plate and frame pressure filter. The filter cycles include filling the filter, applying pressure, and blowing air through the filter to achieve a final moisture content of less than 10% water. The filtrate from the filter press is returned to the process water tank for reuse. At the end of the cycle, the filtered copper concentrate drops onto copper concentrate feeder which transfers the copper concentrate onto the copper concentrate bin feed conveyor. The copper concentrate discharges into the copper feed bin. From the cone bottomed bin, the copper concentrate can be loaded into bulk bags for transport.

The final pyrite concentrate is pumped to the pyrite concentrate thickener. The overflow solution from the thickener is pumped to the pyrite process water tank for reuse. The underflow from the thickener is pumped by the pyrite thickener underflow pumps (one operating and one

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 17-3 www.rpacan.com standby) to the pyrite concentrate feed tank. The slurry density is estimated to be 56% solids by weight. From the tank the pyrite concentrate is pumped to the pyrite concentrate recessed plate and frame pressure filters. Two filters are required to process the amount of pyrite concentrate that will be produced. The filter cycles include filling, applying pressure, and blowing air through the filter to achieve a final moisture content of less than 10% water. At the end of the cycle, the filtered pyrite concentrate drops into the pyrite concentrate loadout bin. From the bin, the pyrite concentrate can be loaded into containers for transport.

The bags of copper concentrate and bins of pyrite concentrate can be stored in the covered concentrate storage area while awaiting trucks that will transport the bags to the port for storage and overseas shipment to smelters.

The tailings from the pyrite rougher flotation circuit are pumped from the tailings thickener feed pump box to the tailings thickener. The solution that overflows from the thickener is pumped to the pyrite process water tank for reuse. The thickener underflow is pumped to the tailings filter feed agitated tank. The slurry is then pumped from the tank to two recessed plate and frame tailings filters which are produce a dewatered filter cake. At the end of the filtration cycle, the dewatered tailings discharge from the filters onto the filter discharge conveyor which feeds the tailings stockpile. From the stockpile, the tailings are loaded into trucks for transport to the Tailings Dry Stack Storage Facility or to the paste backfill plant. The Study assumes that surface haul trucks can deliver ore from the mine to the process plant, and also deliver tailings from the process plant to either the tailings dry stack, or backfill plant.

The conceptual process design includes all reagents and utilities required to process the ore and instrumentation and controls that are standard for this type of plant.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 17-4 PRIMARY GRINDING & CRUSHING MINE CLASSIFICATION & CONVEYING RUN OF MINE ORE

COPPER PYRITE ROUGHER ROUGHER TAILINGS TAILINGS FLOTATION FLOTATION THICKENING FILTRATION

17-5 COPPER PYRITE TAILINGS MINE REGRIND REGRIND LOADOUT bACKFILL

COPPER PYRITE TAILINGS CLEANER CLEANER STORAGE FLOTATION FLOTATION FACILITY (TSF)

COPPER PYRITE CON CONCENTRATE THICKENING & FILTRATION FILTRATION Figure 17-1

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Loma Larga Project Azuay Province, Ecuador COPPER CONCENTRATE PYRITE CONCENTRATE TO PORT TO PORT Process Flow Sheet

August 2016 Source: Samuel Engineering, 2016. www.rpacan.com

18 PROJECT INFRASTRUCTURE

SUMMARY

The infrastructure for Loma Larga includes: • Transmission line and site power distribution • Site access road, • Site roads, • Water supply and distribution, • Fuel storage and distribution, • Warehouse and maintenance shop, • Truck shop, • Assay and metallurgical laboratory, • Administrative offices and change facilities, • Site cafeteria, • Telephone and internet communications systems, • Tailings dry stack facility, and • Heavy metals removal waste water treatment plant (WWTP).

The Study assumes that equipment and supplies will be imported through the Machala Port and the flotation concentrates will be shipped via Puerto Bolivar in Guayaquil.

The site layout is shown in Figure 18-1.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 18-1 SITE ACCESS ROAD (East Option) CAMINO DE ACCESO

SITE ACCESS ROAD (South Option) CAMINO DE ACCESO

18-2

TAILINGS DRY STACK FACILITY

Figure 18-1

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Loma Larga Project 0 500 1000 1500 2000 Azuay Province, Ecuador Metres Site Layout

August 2016 Source: Klohn Crippen Berger, 2016. www.rpacan.com

TRANSMISSION LINE

Within the Study, a new transmission line has been designed and costed. The 138 kV line will run from the existing Cuenca substation to a substation that will be constructed at the Project site. The company in charge of the electric power service in the Project zone is Empresa Eléctrica Centro Sur. Design and costing for the transmission line was completed by Caminos y Canales C. Ltd. (Caminosca). Caminosca evaluated two options for a 138 kV incoming power supply. Alternative 2, which assumes a connection to the Cuenca Substation, was selected as the basis of the design, as a significant portion of this power line’s path will be along existing paths. The existing structure along the Cuenca-Loja transmission line has enough capacity to hold the installation of the new interconnecting cables.

The transmission line is 25 km long. The first six kilometres have no access roads. The following ten kilometres are located near existing paths and the final nine kilometres are adjacent to existing roads.

ROADS

The PFS level design for the site access road was also completed by Caminosca in July 2009 for IAMGOLD. Caminosca evaluated two route options to access the site: one that is situated to the east of the deposit (the East Option), and one that is situated to the south of the deposit (the South Option), both of which are shown on Figure 18-1. The East Option was utilized in this study, with allowances for bringing the costs to second quarter 2016 dollars. The road is 21.25 km long by 7.5 m wide. RPA recommends that further study be undertaken to select the optimal site access route.

In addition to the site access road, the existing eight kilometre long road between the proposed portal to the underground mine and the proposed TDSF will be constructed or improved to accommodate surface haul trucks that will be delivering ore from the mine to the processing plant, as well as the movement of personnel and supplies. Additional roads will be added to access the concentrate storage area and the TDSF area.

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BUILDINGS

Two 30.5 m by 15.5 m wide buildings are provided for the warehouse (one building), and mobile equipment maintenance shop. “Fold-away” style metal buildings will be erected on concrete foundations for the warehouse/maintenance shop building.

Office spaces and smaller buildings will be ATCO type prefabricated trailers of a standard size (6.1 m by 12.2 m). Four trailers are provided for the assay and metallurgical laboratories. An allowance is included for the instrumentation and equipment that are required to complete the analytical procedures required on site including fire assay equipment.

The administration building is combined with a change house that is sized to accommodate the surface and underground crews (i.e., six trailers total). The administration building houses offices for the administrative and processing staff.

A camp facility is not provided, as all employees will reside in the city of Cuenca and commute to the site via buses or company vehicles. Catering facilities are included in order to provide meals for workers on site.

COMMUNICATIONS

Telephone and internet communications equipment are included in the conceptual design for Loma Larga.

TAILINGS DRY STACK FACILITY

Tailings from the Loma Larga project will be filtered at the process plant. A portion (slightly less than half) of the total tailings production will be used for mine backfill, and the remaining will be stored on surface at a designated tailings storage area. The tailings storage facility for the Loma Larga project has been designed as a filtered (dry) tailings stack.

KCB completed the conceptual design for the TDSF, which is located south of the process plant, less than a kilometre away (Figure 18-2).

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 18-4 697,000 E 697,500 E 698,000 E

CONTACT WATER DECANT 9,659,500 N PIPELINE FROM THE PROCESS FACILITY COLLECTION POND DECANT PIPELINE FROM ORE TAILINGS TDSF STOCKPILE COLLECTION POND

9,659,500 N NORTH DIVERSION DITCH

STARTER BERM EMERGENCY SPILLWAY

REALIGNED ACCESS ROAD (BY OTHERS) TAILINGS POLISHING PONDS DRY STACK STARTER DAM FACILITY TREATMENT (TDSF) POND TREATMENT PLANT (BY OTHERS) TREATMENT POND DAM

18-5 TDSF TOE COLLECTION DITCH Legend: Contact Water Pipeline

SOUTH DIVERSION DITCH Clean Water Ditch 9,659,000 N Toe Collection Ditch

NOTES: 1. Coordinate system shown is UTM Zone 17S PSAD56. 2. Existing temporary buildings within the footprint of the tailings facility to STARTER BERM be removed. 3. Topographic contours at 1m interval. TDSF TOE COLLECTION DITCH 698,000 E Figure 18-2

INV Metals Inc. www.rpacan.com

697,000 E 697,500 E Loma Larga Project 0 100 200 300 400 Azuay Province, Ecuador Metres Tailings Dry Stack Facility Area

August 2016 Source: Klohn Crippen Berger, 2016. www.rpacan.com

The tailings dry stack location, selected by INV, was previously identified by IAMGOLD during the 2008 PFS. This location is preferred as it is completely within INV’s surface rights and it is contained within a relatively small sub-catchment, which reduces the amount of runoff that could potentially get in contact with the tailings and the infrastructure required to manage this runoff.

Tailings production over the life of the Project will total approximately 10.4 million dry tonnes. The tailings are assumed to be amenable to filtering and for design purposes were estimated to come out of the process plant with a moisture content of 10%. Of the total amount of tailings produced, approximately 46% will be used as paste backfill in the mine. The remaining 54%, or 5.6 million tonnes, will be stored on surface at the TDSF over a mine life of 12 years. The maximum annual tailings production is estimated at 959,500 tonnes.

Filtered tailings will be trucked to the TDSF where they will be spread and compacted using common mechanical earthworks equipment (i.e., bulldozer and a compactor). It is assumed that the tailings are potentially acid generating (PAG), and have the potential for metal leaching. To address this assumption, the area beneath the tailings stack will be lined to prevent migration of seepage into the groundwater column. The tailings dry stack will also comprise a rockfill starter berm along the east limit of the facility, nominal starter berms/access roads along the perimeter, a toe collection ditch and underdrainage features to both lower the phreatic surface beneath the tailings slope and collect and convey seepage out of the tailings dry stack. Clean diversion and collection channels are also proposed along the perimeter to prevent runoff from undisturbed areas from getting in contact with the tailings.

To reduce the footprint of disturbed/mine active areas, the TDSF will be developed in three phases (Table 18-1).

TABLE 18-1 TDSF PHASES INV Metal Inc. – Loma Larga Project

Phase Approximate Elevation (m) Active Period (years) Mine Life Year 1 3,678 1.5 2 2 3,689 4.5 6 3 3,704 6.0 12

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Pre-deposition works will comprise stripping of topsoil, construction of diversion and collection channels, foundation preparation, and placement of the linear low density polyethylene (LLDPE) liner, the underdrainage system, the bedding layer and rockfill starter berms.

It is recommended that detailed geotechnical investigations be carried out within the footprint of the proposed tailings dry stack area, to confirm design assumptions and suitability of the selected area.

The principal aim when closing the TDSF will be to ensure safety and reduce infiltration of precipitation into the tailings. It has been assumed that this will be achieved with a low permeability cover and recontouring of the final geometry to promote runoff flow towards the collection channels. It has been further assumed that the low permeability cover arrangement will include a liner (to cover exposed tailings surfaces), overlain by a layer of re-vegetated overburden material.

It is anticipated that treatment of seepage will be required prior to release to the environment during operation and for a period after closure. Seepage collection and operation of a treatment facility has been assumed to continue following closure until water quality of the inflow streams reach acceptable levels.

WASTE ROCK

Previous assessments of acid rock drainage (ARD) and metal leaching (ML) potential and rock reactivity (SRK, 2006; Golder, 2008) indicate that most of the waste rock is likely to be PAG and that a proportion of this rock is likely to be highly reactive in generating ARD/ML shortly after exposure (i.e., within weeks). Consequently, it was assumed in the Study that all waste rock storage facilities will be lined to prevent migration of seepage into the native materials and groundwater regime. The mine will generate approximately 1.084 million tonnes of waste rock over the course of the mine life. At closure, waste rock will be returned underground to reduce the potential for ARD/ML.

WATER AND OTHER LIQUID EFFLUENT HANDLING

Surface water management plans (SWMP) are required to manage the runoff and seepage from mine waste storage areas and infrastructure to reduce the downstream impact of the

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 18-7 www.rpacan.com mine area and have been costed. Surface water management plans include clean water diversions to reduce the amount of water that comes into contact with the Project. To handle water that does come into contact with the Project, a series of collection and conveyance channels, settling and retention ponds, decant systems, and emergency spillways are planned.

A site wide water balance was developed to assess the storage and treatment volumes for site contact water. Contact water is water that will require treatment, and includes water within the process facility and surface water that makes contact with plant areas and stockpiled material, including rock and tailings. Water requiring treatment is directed to the Treatment Plant, located downstream of the TDSF.

Based on an assumed mine dewatering rate of 0.9 million m3/yr (28.5 L/s), water treatment requirements are approximately 2.23 million m3/yr (70.7 L/s). RPA notes that this is the total treatment plant rate, which includes water reclaimed to the process plant. The net treated water reclaim is approximately 1.2 million m3/yr (38 L/s) and the net treated water discharge to the environment is approximately 1.03 million m3/yr (33 L/s). Water for paste production and the underground equipment is supplied from the water pumped from the underground and stored in the Waste Rock Stockpile pond. The excess water from this pond is pumped to the Process Facility Pond.

The volume of water requiring treatment and amount of water that can be reclaimed would be closely related to actual mine dewatering rates. At the estimated lower-bound groundwater inflow rate of 0.5 million m3/yr (16 L/s), the total volume of treated water reclaimed back into the process is approximately 1.6 million m3/yr (51 L/s) and the net treated water discharge to the environment is approximately 0.6 million m3/yr (19 L/s).

It is recommended that a hydrogeological study be performed to establish accurate mine dewatering estimates in order to obtain a better understanding of potential mine dewatering rates and ensure that there is sufficient water for mine process supply

INV currently holds a water use permit that allows for the use of 0.25 m3/yr (8 L/s) and a pond storage capacity of approximately 15,000 m3 in an existing pond.

Project activities including water taking and discharge are not expected to impact downstream water supply as the current water balance accounts for re‐circulation of water and treatment

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 18-8 www.rpacan.com of water prior to discharge. Water discharged from the Project site will meet World Bank International Finance Corporation regulations and Ecuadorian water quality standards.

CONTACT WATER TREATMENT PLANT

Since the site water balance shows an excess of water, contact water treatment is required prior to discharging the excess water to the environment or returning treated water to the processing plant for re-use. Since no data was available to complete a design, the plant assumed in the Study is a heavy metals removal design based on experience at similarly sized operations.

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19 MARKET STUDIES AND CONTRACTS

MARKETS

Final products include a larger-tonnage pyrite concentrate containing the majority of the gold and silver, and a small-tonnage copper concentrate containing high grades of gold, silver, copper and arsenic.

The average mass recovery for the final pyrite concentrate is 9.8%. For this Study, it is assumed that the recoveries and the concentrate grades for gold will remain constant, at 37 g/t Au. The silver grade and the mass of concentrate will change as the feed grade to the plant fluctuates. The average silver grade is 142 g/t.

The mass recovery to the final copper concentrate is approximately 0.8% at the average feed grade. The estimated concentrate grade is 30.0% Cu. For this Study, it is assumed that the recoveries and the concentrate grade of copper will remain constant. Correspondingly, the mass of concentrate and the gold, silver, and arsenic will change as the feed grades to the plant fluctuate. The average copper concentrate grades are 30.0% Cu, 111 g/t Au, 1,577 g/t Ag, and 10% As.

Both products require specialty treatment, which limits the number of smelters willing to take the concentrates. Indicative terms were obtained for two such smelters able to process the copper concentrates, and three smelters able to process the pyrite concentrates. Terms include: • Payability for gold, copper, and silver.

• Transport costs for trucking to Guayaquil, port handling, and ocean freight to final destination. In some cases, rail charges were involved to reach the smelter.

• Treatment charges.

• Refining charges.

• Penalty charges for arsenic, mercury, and antimony, which are included as payability factors within the Study.

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The terms for the pyrite concentrate varied significantly (payability and treatment charges in particular), and the resulting net revenues were materially different. Although the two sets of terms for the copper concentrate had significant differences in input terms, they produced similar net revenues when applied to the Project production schedule.

The set of terms most beneficial to the Project was selected for use in the cash flow. Negotiation of terms for concentrate treatment will take place when the Project is closer to operating, and variances to the inputs selected for this Study represent a potential risk to Project economics.

The concentrate smelting and refining terms used in the cash flow model are summarized in Table 19-1.

TABLE 19-1 SMELTING AND REFINING TERMS INV Metal Inc. – Loma Larga Project

Parameter Units Pyrite Concentrate Copper Concentrate Payable Metals - Au, Ag Cu, Au, Ag Cu: Maximum 96.5%, Au: 93% Minimum 1% Deduction Payability Factors % Ag: 93% Au: 80% Ag: 75% Treatment Charges US$ / dmt 150 150 Transportation US$ / wmt 91 216 Charges Impurity Penalties US$ / dmt Incl. in Terms Incl. in Terms

Au: US$7.00 / oz Au Cu: US$0.15 / lb Refining Charges variable Au: US$7.00 / oz Au Ag: US$1.50 / oz Ag Ag: US$0.30 / oz Ag

CONTRACTS

There are currently no contracts in place for the Project.

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20 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT

INTRODUCTION

A great deal of detailed environmental baseline data has been collected from the Project site under a technical assistance agreement between INV, PROMAS, the Earth Science Group (Grupo de Ciencias de la Tierra) and the Centre of Environmental Studies (CEA) of the University of Cuenca, and the Environmental Biology School of the University of Azuay. The majority of the data collection was conducted by the students and staff from the above organizations, who conducted field work for aquatic and terrestrial biology, soil studies, and ground and water monitoring.

Historical data for environmental field work was collected as follows: 1. University of Azuay • Aquatic biology results from ten river stations from 2006, 2008, and 2009; including fish, benthic and macro invertebrate data, with photos and species identification.

• Terrestrial biology studies were conducted in 2005 and between 2008 and 2009 for birds, mammals and amphibians, with map locations and ecosystem mapping.

• Plant communities were studied in the Tres Lagunas (Three Lakes Area), as well as the high Andean forest and alpine tundra ecosystems, with species identification and photos of each ecosystem.

2. PROMAS and the Earth Science Group, University of Cuenca • Soil sampling was conducted in the area of mineralization.

• Ground and surface water quality monitoring have been conducted throughout the Project site. Parameters measured included; pH, dissolved oxygen, electrical conductivity and redox reactions.

• Detailed data on flow rates has been analyzed and mapped, including both major and minor rivers throughout the Project site.

Baseline studies have been ongoing since 2005 and include surface and groundwater monitoring in multiple catchments. An assessment of the baseline information available to support the future environmental assessment and permitting work was evaluated and summarized by KCB in 2013.

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The Environmental Mining Regulation was published March 27, 2014 and has subsequently been updated twice. The first amendment was published June 11, 2015 and the second amendment, which outlines the requirements for mine permitting, was published on July 12, 2016. The scientific basis for the permits did not change significantly from the PFS plan developed in 2015. A summary of the current laws and regulations regarding permitting and social and environmental assessment requirements are provided in the following sections.

PROJECT PERMITTING

PERMITTING REQUIREMENTS Environmental regulations are based on several aspects of the Ecuadorean National Constitution, which was declared as fundamental law in 2008. The National Constitution recognizes the rights that people have to live within a sustainable environment. It also claims public interest in the preservation of the environment, ecosystems, biodiversity, and the integrity of genetic heritage.

The Mining Law, which was introduced in 2009 and the modifications of July 2013, establishes that the Ministry of Environment is the authority for legal effects and application of the law, as well as for the granting of Environmental Licenses (Government Decree No. 119). The modification of July 2013 change several aspects of the original legal mining framework and its administrative practice as they were deemed insufficient and not adequate for national interests. This change will allow the State to gain proper benefits and operate according to the principles of sustainability, precaution, prevention, and efficiency. Official register No. 517 of the Mining Law, stipulates that the Ecuadorian state has rights and sovereignty over the administration, regulation, controls and management of the strategic mining sector, which is enforced in accordance with the principles of sustainability, precaution, prevention, and efficiency. The environmental administration of mining projects is ruled by the general regulation for mining activities, published within the national register No. 67 in 2009.

The Environmental Management Law, declared by the National Congress in 2004, under code 2004-019, established the need to prepare an Environmental and Social Impact Assessment (ESIA) for projects with the potential to cause environmental impacts. According to the national Environmental Management System and the precautionary principle, the law establishes that the Ministry of Environment has the authority to apply technical rules and procedures for the evaluation of the fulfillments required by the Environmental License.

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The Law for the prevention and control of environmental pollution was declared in 2004 under official register No. 418. It establishes the framework for the prevention of damages to air, water, and soil.

On May 4, 2015 an amendment to the Consolidated Text of Secondary Legislation was published. This amendment established that the issuance of the Environmental License in the mining sector shall be forwarded to the provisions of the Mining Law as per article 2.

On March 27, 2014, the government approved the Environmental Mining Regulations for Mining Activities in order to align the regulations with the mining act. This act was amended on July 12, 2016.

Table 20-1 summarizes the various environmental and other permits required for the Project.

The applications for environmental approval require an assessment of the impacts related to each activity. Under current legislation, this will require the submission of multiple environmental assessment documents for each piece of the Project in lieu of one comprehensive assessment document.

Ecuador also has regulations or legislation related to the following: • Water quality • Air quality and noise • Biology and preservation of ecosystems • Public consultation • Cultural heritage • Health and safety • Management of solid waste • Transport and storage of chemical products

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TABLE 20-1 PERMIT REQUIREMENTS INV Metals Inc. – Loma Larga Project

Licences, Authorizations, Permits, Type Sub-Type Frequency Procedures, Qualifying Documents Concession title for metallic minerals Mining Law Mining Concession Approximately 20 Obligation MM yrs Conservation patents for concessions Mining Law Payment SRI Annual Obligation Approval for mining exploitation phase Mining Law Resolution MM One Time Obligation Environmental Licence for exploitation Environmental License MAE One Time Obligation Technical Feasibility Report for construction Mining Law Approval INIGEMM One Time of process plant Obligation Environmental Licence for process plant Environmental License MAE One Time (flotation) Obligations Authorization for installation of the process Mining Law Resolution ARCOM One Time plant Obligation Water use permit for exploitation phase Environmental Concession One Time/ Obligation SENAGUA Renewals Previous administrative acts, Article 26 Mining Law Document One Time Mining Law (no affection affidavit) Obligation Environmental Licence for construction on Environmental Approval MAE One Time electrical power lines and transmission Obligation towers Environmental Licence for road construction Environmental Approval MAE One Time and access expansion Obligation Feasibility Report for tailings facility Mining Law Approval INIGEMM One Time construction Obligation Environmental Licence for tailings facility Environmental Approval MAE One Time operation Obligation Authorization for tailings facility construction Mining Law Resolution ARCOM One Time Obligation Permit for hazardous waste generation Environmental Permit MAE Annual Obligation Effluent discharge permit Environmental Permit MAE Annual Obligation Approval of camp plans Infrastructure Permit from Local One Time Obligation Municipality Approval for non-traditional work schedule Employment Permit MRL One Time (hours/rotations) Obligations Approval for labour activities and foreign Employment Permit MRL Occasional occupational licence Obligations

Notes: MM – Ministry of Mines, MAE – Ministry of Environment, INIGEMM – National Institute of Geological, Mining, and Metallurgic Investigation, SENAGUA – National Secretary of Water, ARCOM – Agency of Regulation and Mining Control, MRL – Ministry of Labour Relations, MP – Ministry of Production, SRI – Internal Tax Service

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EXISTING PERMITS INV currently holds permits for exploration and water use, and an environmental licence for exploration activities that are governed by the MM, MAE, and SENAGUA. The following water use permits are currently held with SENAGUA: • Water use of up to 0.03 Mm3/yr (1 l/s) from eight storage ponds located on site. Pond storage capacity is approximately 15,000 m3 (permit update will be required for exploitation).

• Water use of up to 0.25 Mm3/yr (8 l/s) for mining industrial activities from Cristal Creek.

Quarterly reports summarizing the status of the environmental management plan, environmental monitoring, consultation activities, and social responsibility must be provided to local, regional, and national authorities in order to maintain the exploration permits in good standing. In December 2015, the MAE approved the environmental audit for 2013-2014.

In July 2016, the Terms of Reference for the Environmental audit (2015-2016) was submitted to the MAE.

SUPPORT FOR ENVIRONMENTAL APPROVALS The Environmental and Social Impact Assessment (ESIA) required to support the environmental permit application will follow the same process for each individual license. ESIA studies are completed to provide a standard description of the potential environmental impacts that may occur due to activities such as mining that occur in a particular area. The process of completing an ESIA is summarized below: • The project owner applies to the Ministry of Environment for a Certificate of Intersection. This request has to have all the legal details of the owner, project location, and description of the project. Once the certificate is issued, a file number will be assigned to the project. The project number is carried forward with the project as reference for any future submissions.

• Develop Terms of Reference (ToR) – The ToR provides the governing body with a description of the proposed activity and may also be required to summarize any public consultations that occur. The ToR must be approved by the governing body prior to initiation of an ESIA.

• The ESIA study documents potential environmental impacts that may be caused by a proposed activity and provides mitigation measures to minimize potential impacts.

• The ESIA must be reviewed by the governing body. If the ESIA is acceptable, the proposed project may proceed to the next stages of development (i.e., permitting, etc.), and if the ESIA is not approved, further action on the part of the proponent may be required to produce an acceptable ESIA.

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The Mining Law and its Environmental Mining Regulation establishes the importance of developing the ToR for ESIAs for mining activities, as well as the ToR for Environmental Auditing Procedures, both of which were declared by the Ministry of Environment in 2010, under the official register No. 64. These ToRs regulate the requirements for ESIAs as follows: • An ESIA for mining activities must be approved by the Ministry of Environment and its sub-secretary of Environmental Quality in order to obtain an Environmental Licence.

• The ESIA must describe all project activities, project resources, previous exploration phases, areas of influence, and alternatives that were evaluated with respect to the proposed activities. The environmental baseline for all physical and social components, evaluation of potential impacts, environmental management plan, and appropriate maps are also required, and must address specifications outlined in the ToR.

The environmental assessment must address and describe the activities carried out for the evaluation of all aspects of the Project. Emphasis should be placed on describing the activities and procedures being proposed, potential environmental impacts, application of environmental legislation and standards, and measures to prevent and mitigate potential environmental impacts, as well as the evaluation of their compliance.

COMPLIANCE WITH INTERNATIONAL LEADING PRACTICE The scope of the ESIA will be based first and foremost on Ecuadorian regulations and requirements, as well as leading international practices related to the mining and mineral industry, which may include the following: • International Finance Corporation (IFC), World Bank (WB) Guidelines • International Council on Mining and Minerals (ICMM) • World Health Organization (WHO)

ENVIRONMENTAL STUDIES

Baseline investigation programs were initiated at the Project in 2005 and have been ongoing to support reporting requirements during exploration. The following can be noted on the existing baseline studies: • Studies requiring temporal data gathering have been ongoing since 2005, including: o Climate, o Hydrology, o Water quality, and o Groundwater quality.

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• The soil baseline was collected in the proposed mine area.

• The terrestrial and aquatic biology studies were mostly completed in 2008.

• The noise and air quality baseline studies were completed in 2008.

• Socio-economic studies were completed in 2008 and will be revised in 2016.

• Consultation and community engagement has been ongoing and will be required as the Project progresses and changes from exploration to exploitation, design, construction, operation, and closure.

A summary of this information is presented in Table 20-2.

TABLE 20-2 SUMMARY OF BASELINE STUDIES INV Metals Inc. – Loma Larga Project

Work Level of Additional Study Area Conducted Source Detail Work Reason to Date (1-5) Required Air Quality Y University of Cuenca ‘09 4 Y Dated Noise Y University of Cuenca ‘09 4 Y Dated Climate Y Ongoing 5 Y Temporal Aquatic Biology Y University of Azuay ’08 to ‘13 2 Y Spatial/ complexity Terrestrial Biology Y University of Azuay ’08 to ‘13 3 Y Spatial/ dated Hydrogeology Y University of Cuenca ‘09 3 Y Spatial/ complexity University of Cuenca ’09, Groundwater Quality Y 3 Y Spatial/ complexity Ongoing Hydrology Y University of Cuenca ‘09 3 Y Spatial/ temporal University of Cuenca ’09, Surface Water Quality Y 4 Y Spatial/ temporal Ongoing Geochemistry Y Golder Associates ‘09 3 Y Complexity Soil Y PROMAS ‘07-‘09 4 Y Spatial Sediment N - Y Gap Archaeology Y Consultant Jaime Hidobo 5 N - Socio-economic Y IAMGOLD/INV 4 Y Temporal Consultation Y IAMGOLD/INV, Ongoing 4 Y Temporal

Notes: 1. Level of detail: 1 indicates that minimal work has been conducted and information does not meet requirements, 5 indicates that work completed to date is anticipated to meet regulatory requirements. 2. Y = Yes, N= No

Updated baseline studies have been initiated to support Project development and include: • An updated biodiversity baseline of the Project area to build on previous studies; • A summary and review of the surface water quality and flow data collection program; • A summary and review of the climate station data collection program; and,

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• An update to the socio-economic baseline study.

CLIMATE Climate information has been collected since 2005 from 12 stations. Data collected included temperature, humidity, wind speed and direction, atmospheric pressure and solar radiation. Data was collected for precipitation from the stations listed in Table 20-3.

TABLE 20-3 CLIMATE AND HYDROMETEOROLOGICAL STATION SUMMARY INV Metals Inc. – Loma Larga Project

Station UTM Coordinates Altitude Parameters Period of Record Source E N MASL Measured Bermejos bajo 696538 9666948 3,759 Precipitation Oct 2006 – Nov 2008 PROMAS Bermejos medio 693788 9663962 3,822 Precipitation Jan 2008 – Nov 2008 PROMAS Temperature Relative humidity Bermejos alto 695987 9662358 3,910 Precipitation Oct 2006 – Nov 2008 PROMAS Zhurucay 696800 9660968 3,738 Precipitation Oct 2006 – Nov 2008 PROMAS Calluancay 698051 9661469 3,742 Precipitation Oct 2006 – Nov 2008 PROMAS Jordanita 698530 9659888 3,680 Precipitation Jun 2006 – Nov 2008 PROMAS Base Camp 697256 9656993 3,296 Precipitation Jul 2007 – Oct 2008 PROMAS San Gerardo 699989 9653417 2,855 Precipitation Nov 2007 – Oct 2008 PROMAS Temperature Relative humidity Quimsacocha 1 698422 9663780 3,766 Precipitation Aug 2005 – 2010 PROMAS Temperature Relative humidity Wind speed Solar Radiation Quimsacocha 2 697593 9660009 3,784 Temperature Jun 2007 – Mar 2008 PROMAS Relative humidity Wind speed Solar Radiation Quimsacocha 3 697142 9658638 3,675 Temperature Jan 2008 – Nov 2008 PROMAS Relative humidity Wind speed Solar Radiation Portete 713000 9655000 3,080 Precipitation Jan 2002 – Dec 2004 ETAPA

The Quimsacocha 1 weather station is the largest registry of information starting from August 2005 and ending in December 2010. Temperatures were sampled monthly to obtain both maximum and minimum. The average temperature at the weather station, at an altitude of 3,766 MASL, ranges between 6oC to 8oC during the period of available data from October 2006 to March 2008.

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Rainfall can be uniform and ranges from 1,060 mm to 1,600 mm per year. Three rain gauges (Zhurucay, Calluancay, and Bermejos Alto) recorded annual average precipitation at 1,077 mm between 2006 and 2008.

Daily wind patterns at Quimsacocha 1 clearly show a parabolic behavior with maximum readings at noon (4.7 m/s) and declining to a constant breeze of 2.7 m/s in the evening, which then lasts until approximately 7:00 am. Wind direction is predominately from the west at the Quimsacocha 1 weather station.

AIR QUALITY Air quality monitoring was conducted in June and July of 2009 in five locations: • Victoria del Portete • Chumblín • AQ1a - mine site • AQ1b – mine site • AQ2 – San Gerardo

Sampling and analysis was carried out by the University of Cuenca (Centre for Environmental Studies) for a 30 day period for sedimentary particles less than 10 mm in diameter (PM10) and

NOx.

NO2 values were higher than the maximum trigger values for several locations, most likely due to the presence of nitrous compounds from crops. PM10 analysis surpassed trigger values in most of the locations due to the presence of fog and occasional strong winds. The area is home to an agricultural environment where many of the roads are unpaved, increasing the possibility for particles to be suspended in air.

NOISE There are no industrial activities or human settlements within the Project area. Background noise levels are typical of uninhabited areas with average recorded values of 38.1 decibels (dB). Values of 60 dB to 75 dB have been recorded near water streams during high winds.

Allowable ambient noise levels for fixed and mobile sources, as well as vibrations, are included in the regulations of the Environmental Management Act for the Prevention and Control of Environmental Pollution.

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The level of vibrations for future studies should be determined according to the provisions of ISO-2631-1.

SOIL The regional soils of the Loma Larga area were characterized and categorized by PROMAS during a series of studies between 2005 and 2008. The soil fieldwork that was performed in 2007 included approximately 30 test pits for soil classification and soil chemistry and four soil stations for water retention, conductivity, humidity, ground cover, and macroinvertebrates. An additional 35 test pits with equivalent analyses and profile characterization were excavated and sampled in 2008. The soil study focused mainly on the area surrounding the known mineralized zone and deposit.

Over 100 soil samples were collected and analyzed for: • Texture • Hydraulic conductivity • Moisture content • Van Genuchten parameters • pH • Electrical Conductivity (EC) • Nutrients (N,P,K) • Cation exchange capacity (CEC) • Exchangeable cations • Carbon and sulphate • Metals, including: Cu, Fe, Mn, Zn, B, Cd, Pb, and Al

There are two major soil orders found within the study area - andosols and histosols (mostly saturated). These soils will play a role in Project development, land use, reclamation, and water management. Both these soils contain a high organic matter content and act, in different ways, as water reservoirs.

The potential for water management issues to change upon the removal or manipulation of these soils warrants further investigation. The use of regional soils for post-closure reclamation will require stockpiling of soils throughout the life of the mine. The stockpiling of these materials in the area could potentially release metals into the receiving environment if

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 20-10 www.rpacan.com not properly characterized and managed. Change in redox potential from reducing (saturated) conditions to oxidizing (well-drained) conditions may encourage nutrient and metal leaching.

HYDROLOGY The Project site is located on the continental divide, and therefore at the top of two watersheds with drainage to the southeast (flowing to the Atlantic Ocean), and the south (flowing to the Pacific Ocean), respectively (Figure 20-1). Drainage to the southeast occurs via two main rivers, Rio Irquis and Rio Portete. Drainage to the south is via Rio Zhurucay, Quebrada Falso, and Quebrada Jordanita. An adjacent catchment, for the Rio Bermejos which drains to the North, is not influenced by the Project.

Flow was monitored in these catchments between 2006 and 2008, with additional data collection ongoing.

The remainder of the area (uncoloured portions of Figure 20-1) was not monitored as these catchments are outside the expected area of influence.

There are 11 flow monitoring and sampling locations within the Project area. Several of the sampling locations are in constructed weirs to obtain optimal flow and volumes levels for the main river systems on site. Of the 11 sampling sites on the property, six locations are at weirs and are able to provide detailed flow and water levels. More than half of the sampling locations are at elevations above 3,500 MASL.

Bermejos is the largest weir and had the highest flow with a maximum of 1,200 L/s during the winter months and with average flow rates from 200 L/s to 500 L/s throughout the year. Zhurucay, Jordanita, and Canal San Gerardo are consistently low throughout the year with 10 L/s to 55 L/s and 20 L/s to 95 L/s, and 9 L/s to 30 L/s, respectively.

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Figure 20-1

INV Metals Inc. www.rpacan.com Loma Larga Project Azuay Province, Ecuador 0246810 Flow Monitoring Stations Kilometres and Sub-Catchments August 2016 Source: Klohn Crippen Berger Report, 2016. www.rpacan.com

HYDROGEOLOGY The hydrogeology of the Project site has been investigated from diamond drill holes where two inch outside diameter (OD) polyvinyl chloride (PVC) tubing was placed at the bottom of the bore, and three inch OD casing reaching from the surface to no more than a few meters depth. Fourteen piezometers were installed, three with continuous data loggers. Hydraulic conductivities were obtained from slug tests on the remaining 11 piezometers. Data was collected between November 2008 and April 2009 with ongoing monitoring.

Piezometric data indicates that water levels in the bedrock aquifer are approximately 50 m below ground surface for most surveyed piezometers. The bedrock aquifer is locally isolated from surface by a 2 m to 20 m thick aquitard of organic silt and till derived largely from underlying andesitic bedrock. High water table conditions were observed in a few piezometers.

In the Project area, there are approximately 50 mapped sinkholes, features that would be expected to locally control aquifer recharge and groundwater flow (Golder, 2008). Depending on their size, depth and hydrogeological conditions, sinkholes can allow significant volumes of water into and out of the groundwater column, and can also impact the bearing capacity of dams and stockpile foundations. Though it is generally understood that the reported sinkholes are likely a surficial feature and that there is un-weathered and competent bedrock near surface, the size, depth, vertical and lateral extent of the sinkholes and sinkhole interconnections remain unknown at this point. Field investigations and detailed analysis of the extent and characteristics of these features are required to confirm locations relative to proposed infrastructure locations, and to confirm and validate assumptions made as part of the PFS.

WATER USE Several cities and communities in the Project region depend on the Páramo ecosystem for water supply, irrigation, and hydropower generation (Buytaert et al., 2006a).

The Ecuadorian government currently does not have a water use plan developed for the Project area sub-catchments. The city of Cuenca is currently developing a master plan for drinking water supply that may include areas of the Project site.

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As illustrated in Figure 20-1, the main Project site influence is limited to the sub-catchments which drain towards the Pacific Ocean and away from the city of Cuenca.

WATER QUALITY SURFACE WATER Surface water quality monitoring has been ongoing since 2006 at the flow monitoring stations shown in Figure 20-1.

Samples were analyzed for 115 parameters, and for this Study the main water quality parameters identified include copper, cobalt, nickel, iron, zinc, and pH (Table 20-4).

TABLE 20-4 SURFACE WATER SELECT PARAMETER AVERAGE CONCENTRATIONS INV Metals Inc. – Loma Larga Project

Total Total Total Total Total Total No. of Sulphate Parameter pH Alkalinity Cobalt Copper Iron Nickel Zinc Samples (mg/L) (mg/L CaCO3) (mg/L) (mg/L) (mg/L) (mg/L) (mg/L) Regulatory Limit LMP I 6-9 - - - 1 1 - 5 LMP II 6-9 - - - 0.02 0.3 0.025 0.18

Sample Location Zhurucay 6 7.6 29.2 4.2 0.00076 0.0068 2.2 0.0011 0.035 Tarqui 6 7.3 15.3 1.1 0.000062 0.025 0.15 0.0039 0.007 Quinahuaycu 6 7.3 17.3 2.3 0.00006 0.008 0.50 0.001 0.0046 D1 6 6.8 10.7 0.58 0.000064 0.0032 0.40 0.0022 0.0038 Calluancay 6 7.3 8.7 2.9 0.000066 0.0026 0.23 0.001 0.0084 Jordanita 6 6.3 3.9 3.7 0.00023 0.0046 0.48 0.0011 0.0382 0.009 Falso 6 7.5 40.5 2.7 0.00033 0.016 0.0051 0.021 4 Alumbre 6 4.3 2.2 23.4 0.0022 0.0046 0.15 0.0021 0.32 Canal San Gerardo 6 7.4 22.0 0.44 0.000042 0.0039 0.19 0.0043 0.0074 Bermejos 4 6.7 5.8 0.2 0.00011 0.0034 1.1 0.0093 0.0043 Portete 1 7.5 11.0 0.9 0.000040 0.0010 0.24 0.00020 0.0030

LMP I: Limit for human consumption and domestic use. LMP II: Limit for the protection of flora and fauna. Values in bold represent elevated values with respect to LMP I, italic values represent elevated values with respect to LMP II.

GROUND WATER Groundwater quality has been monitored at the 14 wells discussed above. Parameters measured in the 2008 sampling program include: • pH,

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• Electrical Conductivity (EC), • Total dissolved solids (TDS), • Total suspended solids (TSS), • Turbidity, • Hardness, • Biological parameters, including total and fecal coliforms, • Nitrogen species: ammonia, nitrate, total nitrogen, organic nitrogen, • Carbonate species in the form of alkalinity, bicarbonate, and carbonate, • Dissolved metals including: Fe, K, Na, Al, Cd, Cu, Cr, P (total), Ni, Pb, Zn, and Mn.

Table 20-5 presents select groundwater monitoring results.

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TABLE 20-5 SELECT GROUNDWATER MONITORING RESULTS INV Metals Inc. – Loma Larga Project

Water Quality Limits 2008 21/05 22/05 24/05 01 Parameters Units OMS LMP I LMP II LMP II IQD-232 IQD-250 IQD-270 IQD-273 IQD-276 IQD-291 IQD-293 IQD-336 PZ-1625-01 PZ-1625-02 IQD-1350 Ǧ

General Parameters pH pH 6-9 6-9 6.1 5.8 7.3 5.1 5.8 6.1 4.1 6.7 5.6 6.9 Conductivity s/cm 118 73 209 85 110 61 118 333 29 202 Turbidity FAU/NTU 100 2940 320 1840 2150 1300 70 2720 5560 368 337 Total Suspended Solids mg/L 10032 2317 1505 1195 363 130 2519 3713 311 694 Dissolved Solids ml/L 1000 71 44 125 51 66 37 71 200 17 121 Total Solids mg/L 10103 2361 1630 1246 429 167 2590 3913 328 815 Hardness mg /L 500 40 27 91 30 19 22 23 131 9 63 Organic and Microbiological Parameters Fecal Coliforms NMP/100ml 600 200 <30 <30 <30 <30 <30 <30 <30 <30 <30 <30 Total Coliforms NMP/100ml 3000 40 230 150 70 930 1500 <30 11000 <30 <30 BOD mg/L 2 35 <3 14 49 21 8 17 28 11 17 DO mg/L 210 115 71 200 125 41 62 200 71 200 Oil and Grease mg/L 0.3 0.3 2 5 5 14 10 <1 1 6 3 1 Anions Ammonia mg/L 1 0.4 <0.1 <0.1 <0.1 0.18 <0.1 <0.1 0.1 <0.1 <0.1 Nitrate mg/L 50 10 0.43 0.38 0.4 0.68 0.11 0.81 2.2 1.5 0.8 0.27 Total Nitrogen mg/L NTK <11 <11 12 <11 <11 <11 <11 22 <11 15 Organic Nitrogen mg/L <11 <11 13 <11 <11 <11 <11 22 <11 15

Total Alkalinity as CaCO3 mg/L 66 3.7 122 5.5 59 25 <2.3 157 8 111 Bicarbonate mg/L 80 4.5 148 6.7 72 31 <2.3 192 10 135 Carbonate mg/L 79 4.4 146 6.6 71 30 <2.3 189 10 133 Metals Fe mg/L 1 0.3 2.5 0.4 0.7 0.08 5.9 <0.05 <0.05 <0.05 <0.05 2.8 0.33 Kmg/L 1.2 <1 2.3 1.3 1.5 1.4 <1 3.8 <1 1.3 4 Na mg/L 200 8.4 1.2 7.4 1.2 1 2.3 0.91 6.9 0.62 10 19 Al mg/L 0.2 0.2 0.1 0.5 0.3 <0.1 1.1 0.9 <0.1 2.4 0.6 0.3 1.3 0.34 Cd mg/L 0.003 0.01 0.001 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 Cu mg/L 2 1 0.02 <0.05<0.05 <0.05 <0.05 <0.05 <0.05 0.48 <0.05 <0.05 <0.05 <0.05 Cr mg/L 0.05 0.05 0.05 <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 <0.02 <0.02<0.02 <0.02 <0.02 P total <0.1 <0.1 0.1 <0.1 <0.1 <0.1 0.1 <0.1 <0.1 <0.1 0.12 Ni mg/L 0.02 0.025 <0.05 <0.05 <0.05 <0.05 <0.05 <0.05 <0.05 <0.05 <0.05 <0.05 <0.05 Pb mg/L 0.01 0.05 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 <0.01 Zn mg/L 3 5 0.18 0.18<0.02 <0.02 0.85 0.02 <0.02 0.76 0.06 0.11 1.8 0.03 Mn mg/L 0.1 0.1 0.16 0.09 0.01 0.14 0.08 0.02 0.35 0.15 0.02 0.26 1.1 OMS – Classification of Water in Ecuador, General Water Law; LMP I: Limit for human consumption and domestic use. LMP II: Limit for the protection of flora and fauna.

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TERRESTRIAL ENVIRONMENT The majority of the area in the vicinity of the Project can be classified as Páramo, or moors as they are referred to in English. It is a variety of an alpine tundra ecosystem that exists exclusively in high, tropical, mountain environments, above the tree line but below the permanent snowline, and is composed mainly of giant rosette plants, shrubs and grasses. With the absence of trees, the vegetation is adapted to extreme climate: cold weather, strong winds, high relative humidity, cloud cover, and extreme insolation (Ramsay and Oxley, 1997). A very typical character of the moors is its high degree of endemism. It is estimated that up to 60% of species are endemic to the Páramo (Luteyn, 1992). This high degree of endemism is due to extreme weather conditions and unique biogeographic history (Hofstede et al., 1998).

In southern Ecuador, Cajas National Park is dominated by a Páramo ecosystem and includes approximately 480 species of vascular plants. Human presence, including development activities, cattle grazing, burning, agriculture, and trail use for all terrain vehicles, can adversely affect ground cover and soils and thus the potential for plant regeneration.

In 2005 and from 2008 to 2009, studies were conducted in the region and Project area for flora and fauna. Species information was collected for birds, mammals, and amphibians. Studies were also conducted in the Tres Lagunas area for plant communities. Baseline terrestrial studies have been undertaken in both the local and regional Project area for multiple purposes.

TERRESTRIAL FAUNA A variety of sampling methods were used to collect field data in various environmental conditions, including field recordings and survey information. Night observation, tracking, Sherman live traps for small mammals, Havahart live traps for larger mammals, and mist nets for flying mammals were used to observe and record wildlife. Additionally, local residents in the area were surveyed for knowledge of animals that may not have been observed by survey staff.

The results of the field recordings and surveys indicated the presence of 20 species of mammals within the Irquis and Yanuncay Forests. Nine species of mammals (including two species of mice) were recorded in the moor habitat. This number indicates low diversity compared to the Cajas National Park which has identified 38 mammal species within its boundaries. The diversity of mammals found during the surveys was considerably lower due

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 20-17 www.rpacan.com to several factors, including weather and meteorological conditions at the time of sampling, as well as anthropogenic impacts.

For both the moors and mountain forest, seven of the species found were common in both habitats, indicating that no species is unique to either habitat.

The most important areas that were studied include Gualay, Irquis, and Yanasacha which are dominated by mountain forests. Yantahuayco and Tres Lagunas are medium priority while the Can area is a low priority due to the presence of farms and slaughterhouses in the area. Areas are considered high priority based on the relative importance of the area, the conservation of the species, and how the area can be altered.

The diversity of mammals on site is relatively low, likely to the destruction and alteration of habitats from motorized vehicles and livestock grazing. Key species in the area that should be considered for high conservation importance includes mammals such as cougar, white tailed deer, and fox. It is recommended that further research is conducted on the population status of endemic and endangered species that occur in the area. Additional knowledge will assist in learning not only more about the species, but how to protect them as well, as the present study was generally a diagnostic study of the mammals.

AMPHIBIANS AND REPTILES During the study, 227 individuals were recorded for 18 species of amphibians and reptiles. The most abundant amphibians included (all frogs): • Leptodacylidae • Eleutherodactylus • Gastrotheca

Three species of lizards were recorded including: • Gymnophthalmidae • Tropiduridae • Enyaliodes

BIRDS Seven locations were selected for sampling birds, including four sites located in the moors area: Tres Lagunas, Yantahuaycu, Can, and Quimsacocha; and three sites corresponding to

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 20-18 www.rpacan.com forest/mountain locations: Gualay Alto, Yanasacha and Huagratandana – Irquis. Mist nets were used at each location and specimens were identified and released. Identification through song was also utilized in the sampling program.

Eighty species were recorded and grouped into 28 families and 13 orders, resulting in 4.9% of the total 1,616 species recorded in the country (Birds and Conservation, 2005). The low density was most likely due to fact that the study area is located in a high Andean zone and not prime bird habitat. The most common orders were the hummingbirds, Trochilidae, with 12 species, and flycatchers, Tyrannidae, with 10 species. Within these species were 13 endemic species and three migrant species: • Turkey Vulture (Cathartes aura) • Lesser Yellowlegs(Tringa flavipes) • Baird's Sandpiper (Calidris bairdii)

Key species that represent ideal habitat and ecosystem conditions, and are most sensitive to changing environments include: • Andean Condor (Vultur gryphus) • Giant Conebill (Oreomanes fraseri) • Xenodacnis (Xenodacnis heparin)

TERRESTRIAL FLORA The Páramo ecosystem includes approximately 480 species of vascular plants. Human presence, including development activities, cattle grazing, burning, agriculture, and trail use for all terrain vehicles, adversely affects ground cover and soils and thus the potential for plant regeneration.

As part of the study conducted by Verdugo (2006), vegetation was identified using the transect methods within the Pàramo ecosystem. Sampling included orchids and bromeliads.

Tree diversity was assessed using the Simpson Diversity Index and included 67 plant species belonging to 34 genera and 21 families, with the most diverse families being: • Asteraceae, with 18 species • Poaceae, with 9 species

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There were several families with many species, and few with different generas. Gentianaceae, family Asteraceae (aster, daisy or sunflower family), were found to be the most diverse.

Since 2003, INV has maintained a nursery on the Project site dedicated to the growth and production of native species. INV has available indigenous plants species to revegetate disturbances related to exploration or future mining activities and extensive experience in carrying out revegetation programs. Together with researchers from the University of Azuay, INV has developed an investigation program to identify improvements to plant reproductive systems of various species, like the Polylepis. A total production of 80,000 seedlings have been provided by INV to various communities for reforestation programs in their areas of interest in order to share their knowledge and expertise in this area.

In the nursery, INV annually produces an average of 30,000 native plants including species such as Quinoa (Polylepis reticulata and incana), Quishuar (Buddleja incana), Chilca (Baccharis latifolia), Angel Wings (Culcitiun canescens), Latac (Ortrosanthus chimboracencis), and alder (Alnus acuminata). INV has carried out reforestation work in the areas of historical exploration drilling, around the edges of streams and reservoirs, surrounding the nursery and camp, and on the side of the road. It has been observed that the reforested areas have developed successfully over time. It is the Company’s experience that some local and visiting researchers are unable to distinguish the areas of native forest the areas revegetated by INV, which demonstrates their expertise and success in this area. INV is committed to the production, monitoring and follow up of revegetation activities with native plants and will continue its dedication and expertise in this area.

Additionally, INV operates an experimental demonstration farm in which fruit, ornamental, and medicinal plants are grown. INV also focuses on animal husbandry with local communities, providing training programs on consumption animals such as: guinea pigs, rabbits and trout. Training programs include the preparation of natural fertilizers such as humus, biol, and natural fungicides. These programs have successfully demonstrated the feasibility of improving production activities and traditional practices, in order to improve the nutrition and productivity of local community members.

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AQUATIC BIOLOGY Aquatic biology studies were conducted in the Project area in 2008 and 2009 which were limited to benthic macro invertebrate studies and aquatic vegetation survey. Benthic macro invertebrates were sampled in the following rivers: • Bermejos • Iscayrrumi • Can Can • Zhurcay

Fish and fish habitat were studied regionally as part of the Rio Blanco Environmental Impact Assessment in 2007. Sampling indicates the most common species in the area is Characida, with the more common name of “tetra fish”.

SOCIAL OR COMMUNITY REQUIREMENTS

INV is building on a long history of constructive social engagement started by the Loma Larga Project’s previous owner IAMGOLD. Propraxis S.A. (Propraxis), an Ecuadorean consulting firm, performed a detailed socio-economic baseline study for the direct and indirect areas of influence of the Loma Larga Project (Propraxis, 2010). The socio-economic baseline study included survey data from hundreds of households in the surrounding communities and provided a thorough and accurate description of the socio-economic conditions in the Project area. Surveys were also conducted in a broader, indirect area of influence to show the regional context of the Loma Larga Project. The data collected for the socio-economic baseline study is based on indicators used by the Government of Ecuador to allow for comparison with national statistical data and assist with regional planning efforts. Socio-economic baseline data will also be used as a benchmark to monitor changes in local communities as the Project moves forward into construction and operation.

Consultation efforts have been ongoing, with a significant public information campaign to increase understanding of mining activities as they relate to the Project. Complementing the consultation activities are small scale community development projects, designed and executed in partnership with local communities. The community development projects are designed in a participatory way to ensure they meet the needs of local communities. Local

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 20-21 www.rpacan.com residents assist with project design and sign an agreement during a community assembly. Projects are executed and evaluated to ensure that they meet agreed upon objectives.

INV also has social management policies and procedures including the following: • Community Complaints Procedure • Whistleblower Policy • Code of Business Conduct and Ethics • Disclosure Policy • Foreign Corrupt Practices Policy

SOCIO-ECONOMIC CONTEXT The Project is located approximately 30 km southwest of the city of Cuenca. Most residents are engaged in small scale animal husbandry and farming. Milk and cheese production is another economic driver. Residents also produce clothing and perform construction work in Cuenca. Unemployment is extremely high. There are few large or industrial businesses in the direct and indirect areas of influence.

Demographic indicators show the area is inhabited by residents who identify primarily as mestizo, with a very small fraction of residents who identify themselves as indigenous. The distribution of the population by sex shows females compose approximately 54.6% of the population and males 43% (Propraxis 2010) (remainder unreported).

Education levels in the area are high, with the overwhelming majority of residents attending primary and secondary schools. Literacy levels show that 90% of residents are literate (Propraxis 2010). Few residents attend university. The majority of residents in the direct and indirect areas of influence have access to a hospital or health centre. However, 82% of the population lacks health insurance (Propraxis, 2010). One of the most pressing health issues in the area is respiratory infections, with 34% of total residents suffering from a respiratory infection in the two weeks prior to the survey (Propraxis, 2010).

Housing indicators show that most residents have access to electricity and own their own homes. Access to water is through a connection to the local water distribution network or use of a well. Internet penetration in homes is extremely low at less than 4% in both areas of direct and indirect influence (Propraxis 2010).

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INV’s concession does not contain archeological artifacts. The Technical Director of the National Institute of Cultural Heritage approved a resolution confirming the concession does not contain cultural or archeological resources based on a study conducted by Dr. Jaime Idrovo and subsequent review and investigation by experts from the National Institute of Cultural Heritage (Instituto Nacional de Patrimonio Cultural 2007).

SUMMARY OF SOCIO-ECONOMIC BASELINE INFORMATION Propraxis was contracted by IAMGOLD to undertake a social baseline study for the Loma Larga Project. Indicators were selected by Propraxis and compared to the Plan Nacional Para el Buen Vivir (SENPLADES, 2009).

For consistency, the indicators were the same as those used by the Sistema Integrado de Indicadores Sociales del Ecuador (SIISE) and the Secretaría Nacional de Planificación y Desarrollo (SENPLADES). The social baseline therefore allows for comparison of the baseline values of the indicators before the Project with the indicators during the construction and operations phase, as well as for comparison with development planning on a national level.

Collection of socio-economic data focused on both the direct and indirect areas of influence presented in Table 20-6.

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TABLE 20-6 SOCIO-ECONOMIC DATA COLLECTION SAMPLING LOCATIONS INV Metals Inc. – Loma Larga Project

Number of Number of Number Zone Parish Communities Residents Households Sampled Centro Parroquial, Chumblin Sombrederas and El 764 182 169 Cisne Centro Parroquial, Area of Cristal, Cauquil, San Direct San Gerardo Martin Chico, San Martin 1223 291 260 Influence Grande, Bastion and Santa Ana Durazno, Portete, Victoria del Corralpamba, and 555 132 125 Portete Gulcar Centro Parroquial, Santa Lucrecia, Taniloma, Santa Rosa, Morascalle, Galapungo, San Tarqui Francisto de Totorillas, 2,861 687 244 San Pedro de Yunga, Chilca Totora, Chilca Chapar, Tutupali Area of Grande, Tutupali Chico Indirect Centro Parroquial, Influence Descanso de Sucre, Irquis, Colegio Alamos, Victoria del San Pedro de 2,129 500 259 Portete Escaleras, Fares, San Agustin, San Vincente de Arroy Giron Cabercera Cantonal 9,811 2336 510 San Fernando Cabercera Cantonal 3,633 865 189

Source: Propraxis, 2010.

The large sample size allows for a comprehensive and complete socio-economic profile of the Project’s areas of influence. Survey team personnel were residents of Azuay Province and had at least three years of experience. Quality control procedures for the survey data included monitoring and revision of data by supervisors. Data was also cross-checked against a register of existing homes for thoroughness.

Figure 20-2 shows the location of the concessions relative to local communities and the city of Cuenca.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 20-24 www.rpacan.com 690,000 E695,000 E 700,000 E 70 ,000 E5 7 0,000 E1 7 ,000 E15

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9,6 ,000 N50 690,000 E695,000 E 700,000 E 70 ,000 E5 7 0,000 E1 7 ,000 E15 Figure 20-2 Legend: Mining Cocessions 012345 INV Metals Inc. Local Communities Kilometres Loma Larga Project Routes Azuay Province, Ecuador Map ofConcessions and Local Communities August 2016 Source:INV Metals Inc., 201 6 . 20-24 www.rpacan.com

Socio-economic baseline information collected as part of the study included data on the following areas: • Housing • Demographics • Education • Health • Employment • Income • Human capital

Agriculture and animal husbandry are the two main principle economic activities of the residents in the direct and indirect areas of influence. In Tarqui, Victoria del Portete, San Gerardo and Chumblin, crops produced include corn, beans, potatoes, chick peas and peas. Milk and cheese products are marketed in Cuenca, Machala, Pasaje, and Giron (Propraxis, 2010). In Tarqui, there is an artisanal industry for the production of clothes, including shirts, pants, and embroidered ponchos. Many residents find employment in Cuenca as construction workers (Propraxis, 2010).

CONSULTATION ACTIVITIES This section summarizes consultation work conducted by INV and IAMGOLD to support exploration and early stage Project development. The main focus of the consultation efforts was informing residents about the state of the Project and social projects undertaken in many communities.

INV’s Community Relations Staff have conducted numerous consultation activites from 2008 to 2015 (INV, 2015). A total of 275 separate events were held in the Parish of Chumblin and the Parish of San Gerardo. In 2015, a program called Mining Door to Door was established in the Parishes of Tarqui and Victoria del Portete. Over 5,050 local and regional residents visited the mine site and received information regarding exploration and future activities (INV, 2015). Consultation activities are documented using sign in sheets, guest registers, photographs, videos, and other registers.

Types of events held to inform the public about the Loma Larga Project and associated community development projects include:

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• Public assemblies.

• Visits to information centres in San Gerardo and Chumblin (the information centres were established to disseminate information).

• Workshops.

• Door to door information campaigns.

• Community development project planning sessions.

• Training sessions for community members on agricultural or animal husbandry techniques.

In addition to the public information campaign described above, INV is planning a number of steps as part of the consultation activities related to the ESIA.

These include the following: • Elaboration of a diagnostic report of the process of public dissemination and citizen participation.

• Dissemination process for the ESIA which includes the following elements: o Conducting dissemination workshops. o Holding dissemination assemblies. o Ratifying community agreements. o Creating records of dissemination including meeting minutes that include technical, social, and environmental commitments.

CORPORATE SOCIAL RESPONSIBILITY AND COMMUNITY DEVELOPMENT PROJECTS INV and IAMGOLD have conducted numerous corporate social responsibility initiatives focused on the Cantons of Cuenca, San Fernando, and Giron.

Types of community development projects include the following categories: • Agricultural and pastoral training • Education and culture • Management of natural resources, including water • Health and safety • Environmental education • Community services

The process for the execution of community development projects includes:

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• Informing the community about corporate social responsibility policies and providing information about INV.

• Planning investment in community assemblies, where community members prioritize and decide which projects to select.

• Signing an agreement with a Committee of Community Representatives on the proposed projects.

• Executing the projects as specified in the agreement.

• Evaluating the execution of projects and incorporating feedback from the evaluation into the next phase of project planning.

SOCIAL MANAGEMENT POLICIES AND PROCEDURES INV has developed policies and procedures to prevent and minimize social risks. The Community Complaints Procedure functions as an early warning system to allow INV’s Community Relations Team to quickly deal with any community concerns before it becomes a major issue. The Code of Business Conduct and Ethics outlines the behavior that INV expects from its employees. The Disclosure, Foreign Corrupt Practices, and Whistleblower Policies outline corporate commitments to applicable laws and regulations.

Key elements of each of the policies and procedures outlined above are presented in Table 20-7.

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TABLE 20-7 KEY ELEMENTS OF SOCIAL MANAGEMENT POLICIES AND PROCEDURES INV Metals Inc. – Loma Larga Project

Policy or Procedure Key Elements Community Complaints Procedure Procedure to document, investigate and resolve community concerns in a prompt and effective manner. Code of Business Conduct and Summary of ethical behavior expected for INV employees. Ethics Disclosure Policy Ensure timely disclosure of information to the public in accordance with all laws and regulatory requirements. Foreign Corrupt Practices Policy Commitment to comply with laws, rules and regulatory requirements with respect to foreign corrupt practice laws. Prevention of the following: • Bribes; • Kickbacks; • Extortion; • Facilitation Payments; • Political Contributions; and • Employment of Public Officials. Whistleblower Policy Commitments to: • Comply with all applicable laws and regulations; • Respect human rights; • Protect the environment; • Observe high standards of business and personal ethics; and • Protect any employee who discloses wrongdoing in good faith against harassment, retaliation and maintain their confidentiality. • The policy also contains a procedure for raising a concern, reviewing the complaint and reporting internally. Management responsibilities and reporting are also discussed. Source: INV 2016.

MINE CLOSURE REQUIREMENTS

The closure and remediation of the Project will include the mine, infrastructure, buildings, and facilities constructed as part of the Project development. As part of the Project environmental management plans (to be developed at a later date), progressive rehabilitation of certain items will occur throughout the life of the mine. This plan assumes that closure and rehabilitation for the components occurs at the end of mine life.

The Loma Larga closure concepts can be split into the following main areas: • Mine Workings: The access portal will be backfilled with the remaining waste rock at closure to limit access. Air raises will be capped with typical concrete or steel caps to prevent access. Caps will include ventilation pipes.

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• Buildings and Infrastructure: Buildings and associated infrastructure will require demolition and dismantling. The water treatment plant may be required for post closure activities.

• Transportation and Power Corridors: Roads and power corridors will be left for public use after closure.

• Waste Management (non-mining): All non-hazardous solid waste will be disposed of at a local licensed landfill. The septic systems will be decommissioned and storage tanks will be removed. At the time of decommissioning, an investigation of disturbed areas will occur, and if contaminated fill is identified, it will be remediated.

• Waste Rock: Waste rock stockpiles will be moved underground at closure. Stockpile pads will be removed and disposed of off-site, berms will be dozed and areas re- contoured and re-vegetated.

• Tailings Dry Stack: Closure of the tailings dry stack will include the construction of a closure cover. A geosynthetic cover is proposed to limit infiltration to the dry stack. A growth medium will be placed over top and re-vegetated. Runoff from seepage will be monitored and treatment will continue as required.

• Ponds: Water management ponds, ditches, and pipelines will be removed and decommissioned at closure, with the exception of the tailings dry stack treatment pond if needed. Berms and dams will be dozed and the areas re-contoured and re- vegetated.

• Monitoring: Chemical and physical stability monitoring are assumed to be required for up to ten years post closure. A cost has been included in the estimate for this monitoring period. Monitoring will include dam and slope inspections, cap inspections, water quality sampling, and vegetation monitoring.

The conceptual cost estimate for reclamation and closure is $4.24 million.

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21 CAPITAL AND OPERATING COSTS

CAPITAL COSTS

PRE-PRODUCTION CAPITAL The base case capital cost estimate for the Project is $285.9 million, including applicable taxes and contingency. Estimates were developed by the following contributors: • Mining and Mine Roads – RPA • Process Plant and Ancillary Facilities – Samuel Engineering • Site and Plant Roads – Samuel Engineering • Utilities and Power – Samuel Engineering • Tailings Dry Stack Facilities – KCB • Water Management Facilities – KCB • Stockpiles – KCB • Owner’s Cost – RPA with input from INV

The estimate is reported at a PFS study level where the accuracy is defined as ±25% including contingency. Salient points related to the Basis of Estimate are: • The base date of the PFS capital cost estimate is the second quarter 2016.

• The costs incorporate all capital expenditures from the commencement of detailed engineering through to the commencement of ore processing.

• Taxes, customs and import duties are in accordance with Ecuadorian regulations.

• Sustaining capital incorporates all capital expenditure after the pre-production period of Year -2 and Year -1.

A summary of the initial capital cost estimate is presented in Table 21-1.

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TABLE 21-1 INITIAL CAPITAL COST SUMMARY INV Metals Inc. – Loma Larga Project

Total Cost Year -2 Year -1 Area % ($ M) ($ M) ($ M) Mine 56.6 20% 10.5 46.1 Process Plant 63.0 22% 23.9 39.2 Infrastructure 24.9 9% 17.1 7.7 TDSF 9.0 3% - 9.0 Indirects 88.3 31% 26.4 61.8 Contingency 44.2 15% 12.7 31.5 Total 285.9 90.6 195.3

Note: Totals may not sum due to rounding

MINE CAPITAL Mining capital costs are primarily comprised of three areas: mine development, mobile equipment, and stationary mine infrastructure. RPA assumed that a mine development contractor would be operating at the site from Year -1 to Year 2 (a total of three years). The mine contractor would be responsible for cutting the portal, developing the ramp, and installing the haulage drifts and ventilation system. Included in this, the contractor would develop all vertical development. The details of mine capital are shown in Table 21-2.

TABLE 21-2 MINE CAPITAL COST SUMMARY INV Metals Inc. – Loma Larga Project

Units Initial Sustaining Area Total Capital Capital Mine Mobile Equipment US$ millions 29.1 27.4 56.5 Mine Development US$ millions 13.9 23.7 37.6 Mine Infrastructure US$ millions 13.6 0.5 14.1 Total US$ millions 56.6 51.6 108.2

The initial fleet requirements for mine mobile equipment were estimated using productivity calculations. The replacement schedule for mine mobile equipment is based on estimates of equipment operating hours. The amount of mobile equipment, both in terms of initial requirements and replacement purchases, is shown in Table 21-3.

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TABLE 21-3 MINE MOBILE EQUIPMENT INV Metals Inc. – Loma Larga Project

Initial Replacement Unit Cost Equipment Purchases Purchases (US$ ‘000) Load Haul Dump - 7.0 m3 5 6 813 Underground Haul Trucks - 40 t 8 5 863 Two Boom Jumbo 3 3 878 Bolter 4 3 642 Longhole Drill (75 mm) 4 4 615 Cable Bolter 1 1 615 Explosives Loader 3 1 358 Scissor Lift 3 3 318 Boom Truck 1 1 374 Man Carrier 2 1 271 Fuel & Lube Truck 1 1 293 Underground 4x4 Vehicles 5 12 80 Grader 1 0 787

In addition to the core mobile equipment listed in Table 21-3, additional miscellaneous mobile equipment has also been budgeted for using a similar methodology.

Within mine development, the following unit rates were estimated to generate the total mine development cost: • US$4,700/m for 4.5 m W x 4.5 m H capital ramp development • US$5,500/m for 4.3 m diameter ventilation raise • US$5,200/m for 4.0 m diameter ventilation raise

Mine development also includes the portal cut, which was assumed to be completed by a mine contractor.

Mine stationary equipment consists of the ventilation system, backfill plant, dewatering system, mine office and surface warehouse, underground service bay, explosives storage, refuge stations, mine rescue supplies, fuel and lube storage and dispensing, and communications system.

PROCESS PLANT CAPITAL Process plant capital costs are further subdivided as shown in Table 21-4.

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TABLE 21-4 PROCESS PLANT CAPITAL INV Metals Inc. – Loma Larga Project

Value Work Breakdown Structure (WBS) Area (US$ millions) Crushing & Conveying 2.7 Grinding & Classification 13.9 Copper Flotation 4.4 Pyrite Flotation 4.9 Concentrate Thickening & Loadout 17.5 Tails Thickening & Filtration 4.7 Reagents 1.4 Direct Process Plant 49.5

Utilities Process Water 0.9 Fresh / Fire Water 0.8 Substation 1.5 Standby Power 1.8 Site Electrical Distribution 3.0 General & Ancillary Facilities Site Development 1.1 Truckshop 2.0 Warehouse 0.7 Administration Building / Dry & Cafeteria 1.5 Analytical Laboratory 0.4 Total Process Plant 63.0

Note: Totals may not sum due to rounding

The process plant will be constructed over a two year period.

INFRASTRUCTURE AND TAILINGS FACILITY CAPITAL Infrastructure consists of a site water effluent treatment facility, electrical transmission line, and surface access road. The details of the infrastructure and tailings capital cost estimate are summarized in Table 21-5.

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TABLE 21-5 INFRASTRUCTURE AND TAILINGS CAPITAL INV Metals Inc. – Loma Larga Project

Value WBS Area (US$ millions) Water Treatment System 7.7 Transmission Line 7.7 Access Road 9.4 Tailings Dry Stack Facility 9.0 Direct Infrastructure and Tailings 33.8

Additional spending on the Tailings Dry Stack Facility occurs during the sustaining capital period.

INDIRECTS Indirect costs, which total $88.3 million during the initial capital period, include: • EPCM fees • Contractor indirects • Construction equipment • Freight • Insurance • Owner’s costs • First fills • Spares • Commissioning • Non-refundable duties and taxes

CONTINGENCY The initial capital cost estimate includes contingency of $44.2 million (Table 21-6).

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TABLE 21-6 CONTINGENCY INV Metals Inc. – Loma Larga Project

Area Value (US$ millions) Mine 9.3 Process Plant and Infrastructure 20.3 TDSF 1.3 Indirects and Owner’s Costs 13.2 Total 44.2

Note: Totals may not sum due to rounding

The overall contingency allowance is 18.3% of the direct and indirect capital cost estimates.

PRICE SOURCING The majority of the mining equipment costs are based on budget quotes received from vendors. When budget quotes were not obtained, costs were taken from RPA in-house databases, based on comparable projects.

The capital cost estimate also includes the surface mobile equipment to be used for ore, waste, and tailings material movement.

LABOUR PRODUCTIVITY BASIS The labour installation rates, together with an associated productivity factor, which reflects the nature of the work and the working conditions (weather, elevation), has been applied in the capital cost estimate. The installation base manhours are based on North American productivities for similar projects adjusted by a productivity multiplier to take into account site conditions such as location, availability of construction equipment, elevation, weather, etc.

A productivity factor of 2.5 was applied to North American installation unit manhours for all direct manhour estimates.

SUSTAINING CAPITAL Mine sustaining capital cost accounts for certain pieces of equipment to be replaced over the life of mine. Additionally, portions of mine capital development occur after production commences, and is therefore considered as sustaining capital. Sustaining capital for the process plant was included for the replacement of damaged or destroyed containers that carry pyrite concentrate to the port. No other sustaining capital was included for the process plant

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 21-6 www.rpacan.com due to the relatively short mine life and therefore replacement of major processing equipment is not anticipated. The cost for anticipated maintenance requirements, including wear and replacement parts, is included in the process operating cost estimate.

The TDSF is constructed in phases, with the first phase being completed during the pre- production years. Subsequent tailings expansion phases occur during production. Therefore, sustaining capital has been included in the estimate to account for expanding the TDSF over the LOM to meet the increasing storage requirements.

Table 21-7 summarizes the sustaining capital cost by area.

TABLE 21-7 ESTIMATED SUSTAINING CAPITAL COSTS INV Metals Inc. – Loma Larga Project

Area Value (US$ millions) Sustaining Mine 51.6 Process Plant 9.0 TDSF 3.4 Reclamation and Closure 4.2 Indirects 15.0 Contingency 11.0 Total Sustaining and Closure 94.3

Note: Totals may not sum due to rounding

OPERATING COSTS

SUMMARY The operating costs for Loma Larga were developed by RPA and Samuel Engineering. RPA was responsible for the mining and general and administrative (G&A) costs and Samuel Engineering was responsible for the costs associated with the processing facilities. Operating costs associated with the infrastructure were developed by RPA and Samuel Engineering with input from KCB with regard to tailings and water management.

The operating costs for Loma Larga are summarized in Table 21-8.

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TABLE 21-8 LOMA LARGA OPERATING COSTS INV Metals Inc. – Loma Larga Project

Area Cost (US$/t milled) Mine & Surface Services 36.30 Processing 14.23 G&A 7.27 Total 57.80

MANPOWER Labour rates were built up using a salary survey that was conducted by Deloitte in Ecuador and provided by INV, and adjusted to reflect second quarter 2016 values.

During the initial operations, expat employees will be employed in technical positions and as trainers. As the local employees learn the operation, which is assumed to be after Year 2 in this Study, the number of expat employees will be reduced. The number of expat and local employees, by department, for Year 1 and Year 3 are shown in Table 21-9.

TABLE 21-9 EMPLOYEES INV Metals Inc. – Loma Larga Project

Positions Year 1 Year 3 Administrative 99 99 Expat 1 1 Local 98 98 Mine 296 318 Expat 7 1 Local 289 317 Process 88 87 Expat 6 - Local 82 87 Total 483 504

The total manpower during the LOM is summarized in Table 21-10.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 21-8 Technical INV Metals Inc – Loma Report NI 43-101 Larga TABLE 21-10 TOTAL MANPOWER INV Metals Inc. – Loma Larga Project – Project, Project August Description Units YR -2 YR -1 YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 YR 11 YR 12 Salaried Mine Management and Technical ppl 1 38 61 59 55 55 55 55 53 53 53 53 53 39 Mill Management and Technical ppl - 13 16 17 11 11 11 11 11 11 11 11 11 11 Site Administration ppl 10 37 54 54 54 54 54 54 54 54 54 54 54 54 Off-site Administration ppl 5 14 22 22 22 22 22 22 22 22 22 22 22 22 29, Total ppl 16 102 153 152 142 142 142 142 140 140 140 140 140 126

2016 Hourly Mine Operators ppl - 85 185 205 213 205 185 189 209 197 193 189 173 93 Mine Maintenance ppl - 25 50 50 50 50 50 50 50 50 50 50 50 50 #2612 Mill Operators ppl - 12 52 56 56 56 56 56 56 56 56 56 56 56 Mill Maintenance ppl - 3 20 20 20 20 20 20 20 20 20 20 20 20 Administration Maintenance ppl 1 8 23 23 23 23 23 23 23 23 23 23 23 23 Total ppl 1 133 330 354 362 354 334 338 358 346 342 338 322 242

Total Personnel ppl 17 235 483 506 504 496 476 480 498 486 482 478 462 368

Labour Costs Management US$ '000 978 3,583 4,398 4,063 2,109 2,109 2,109 2,109 2,021 2,021 2,021 2,021 2,021 1,970 Administration US$ '000 140 779 1,252 1,252 1,252 1,252 1,252 1,252 1,252 1,252 1,252 1,252 1,252 1,252 Technical US$ '000 - 1,525 2,063 2,063 1,465 1,465 1,465 1,465 1,465 1,465 1,465 1,465 1,465 1,125 Operators US$ '000 - 1,302 3,146 3,495 3,601 3,495 3,186 3,230 3,548 3,336 3,283 3,249 3,046 1,855 Maintenance US$ '000 - 454 1,138 1,138 1,138 1,138 1,138 1,138 1,138 1,138 1,138 1,138 1,138 1,138 Total US$ '000 1,118 7,642 11,997 12,010 9,565 9,459 9,151 9,194 9,424 9,212 9,159 9,125 8,922 7,340 www.rpacan.com 21-9 Page

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CONSUMABLES PRICE SOURCING Prices for consumables were for the most part obtained from suppliers and from in-house information and references.

QUANTITIES BASIS Quantities were based for the most part on first principal calculations and from in-house information and references.

COMMODITY PRICING Current power costs as well as an anticipated increase were provided by INV. Based on this information, the cost used in the Study is $0.11 per kWh, delivered to site and including value added tax (VAT).

The study considers the cost of diesel fuel to be $0.37/l, delivered to site, and including VAT. This cost has been provided by INV.

The study considers the cost of cement to be $160/t, and concrete to be $145/t, both delivered to site and excluding VAT.

MINE OPERATING COSTS The mine operating cost has been developed from first principles and applied to RPA’s mine design and LOM Plan for annual quantities of ore and waste development and ore production. The operating cost includes all waste development for accesses to ore cuts. The mine operating unit costs are summarized in Table 21-11.

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TABLE 21-11 MINING OPERATING UNIT COSTS INV Metals Inc. – Loma Larga Project

Area LOM Cost Unit Cost (US$ millions) (US$/t milled) Labour 66.6 5.72 Equipment Maintenance and Fuel 101.2 8.70 Power 23.3 2.00 Consumables 214.9 18.47 Miscellaneous 16.5 1.42 Total 422.5 36.30

Note: Totals may not sum due to rounding

Mine operating labour costs include the cost of up to 318 personnel including expats and local labour. Cost for expat mine development trainers, a mine maintenance foreman and a senior mine engineer are included during the first two years of production to assist the local work force during the initial production period.

Calculations of mining unit costs were based on first principles, productivity estimates, input costs. Costs were estimated for long-hole stoping, ore development, drift and fill mining, and backfill. Mine operating costs that occur in Years -2 and -1 have been capitalized.

PLANT OPERATING COSTS Process operating costs were estimated by Samuel Engineering under the direction of RPA. A summary of the process operating costs is provided in Table 21-12.

TABLE 21-12 SUMMARY OF PROCESS OPERATING COSTS INV Metals Inc. – Loma Larga Project

LOM Cost Unit Cost Description (US$ millions) (US$/t) Labour 18.8 1.62 Power 75.0 6.44 Reagents 31.3 2.69 Grinding Media 17.6 1.51 Maintenance Supplies 9.5 0.82 Miscellaneous Expenses 13.3 1.15 Processing Total 165.6 14.23

Note: Totals may not sum due to rounding

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Process labour includes both salaried and hourly employees, and in a typical year, the process plant will employ approximately 87 people. Within miscellaneous expenses, items such as mobile equipment for tailings, water treatment expenses, and minor operating costs are included. Any process operating costs that occur in Years -2 and -1 have been capitalized.

G&A OPERATING COSTS G&A cost totals US$7.27/t milled and includes G&A labour for the site, Cuenca, Quito and Guayaquil as well as miscellaneous expenses and rent for the off-site facilities (Table 21-13). The labour cost includes the cost of up to 99 personnel including local and expat labour. A total of 77 personnel are employed in administration at the mine site.

TABLE 21-13 G&A OPERATING UNIT COSTS INV Metals Inc. – Loma Larga Project

Area LOM Cost Unit Cost (US$ millions) (US$/t milled) Labour - Site 16.8 1.45 Labour - Offsite 12.3 1.06 Site Services (non-labour portion) 16.9 1.45 Catering and Bus Services 16.4 1.41 Miscellaneous - Site 19.1 1.64 Miscellaneous - Offsite 3.1 0.26 Total 84.6 7.27

Site labour includes all administrative positions, as well as health, safety, environment, warehouse, site services, and security. Offsite labour includes finance, accounting, purchasing, social engagement, and country management roles. Site services costs are allocated to the general upkeep and functioning of the site, including, for example, waste disposal and road maintenance. Daily bus and catering services have been budgeted for and are included in G&A. Miscellaneous site G&A costs include insurance, office supplies, permits, communications equipment, and travel. Offsite miscellaneous costs mainly cover office rent in Quito, Cuenca, and Guayaquil, as well as expenses to support the three offsite offices.

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22 ECONOMIC ANALYSIS

A Cash Flow Projection has been generated from the Life of Mine production schedule and capital and operating cost estimates, and is summarized in Table 22-1. A summary of the key criteria is provided below.

ECONOMIC CRITERIA PRODUCTION • Ramp up to 945 ktpa through the process plant in Year 1, followed by steady state throughput of 1,050 ktpa (3,000 tpd) in Year 2 to Year 10, followed by two years of reduced throughput.

• 12 year mine life.

• Total production is 11.6 Mt, at a grade of 5.0 g/t Au, 28 g/t Ag and 0.29% Cu.

• Average metal recovery of 90% Au, 94% Ag, and 82% Cu.

• Total recovered metal of 1.68 Moz Au, 9.8 Moz Ag, and 60.5 Mlb Cu.

• Average annual gold production (excluding Year 12) of 150.4 koz Au, 870.4 koz Ag, and 5.5 Mlb Cu.

REVENUE • Cash flow metal prices: US$1,250 per ounce gold, US$3.00 per pound of copper, US$20 per ounce silver.

• Concentrate terms as discussed in Market Studies and Contracts.

o The concentrate payability averages 90.5% payable for gold, 96.5% for copper, and 84.5% for silver.

o Concentrate charges total 16% of gross revenue from payable metal.

• Total payable metals of 1.52 Moz Au, 8.3 Moz Ag, and 58.4 Mlb Cu.

o This equates to 1.77 Moz of gold equivalent ounces (AuEq), using the formula: Au production (oz) + (Ag production (oz) / 64 oz Ag per 1 oz Au) + (Cu production (lbs) / 490 lbs Cu per 1 oz Au).

• An estimated 5% NSR royalty payable to the Ecuadorian government, which totals US$94.6 million over the mine life.

• LOM average ore value of US$154/t (revenue net of off-site concentrate costs and royalty payments).

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COSTS • Pre-production period: two years (Year -2 and Year -1), starting at the decision to proceed with construction.

• Project capital totals $286 million, including $44 million in contingency.

• Sustaining capital of $94 million, including $4 million in closure costs.

• Average unit operating costs over the mine life: o Mining: $36.30/t o Processing: $14.23/t o G&A: $ 7.27/t o Total: $57.80/t

TAXATION AND ROYALTIES • Corporate Income taxes of 22%, totalling $133 million.

• State and Employee profit-sharing of 15%, totalling $107 million.

• Net Profits Interest of 5% payable to AREVA of $36 million.

• Performing Ecuador’s Sovereign Adjustment calculation does not result in any payment by INV to the government.

• VAT of 12%, which is collected on certain operating and capital cost items, will be refundable once concentrates are exported, such that the net payment of VAT by INV is zero over the Project.

• Duties, capital outflow tax, and two other import taxes applied to certain capital cost items. These costs are included in indirect capital costs.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 22-2 TABLE 22-1 CASH FLOW SUMMARY INV Metals Inc. - Loma Larga Project Technical Report – August NI 43-101 INV Me UNITS TOTAL YR -2 YR -1 YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 YR 11 YR 12 YR 13 MINING

Underground

tals Inc–Loma LargaProject,Project #2612 Operating Days days 4,550 - 350 350 350 350 350 350 350 350 350 350 350 350 350 - Tonnes per day tonnes / day 2,558 - 291 2,539 3,038 3,135 3,104 3,094 3,079 3,303 3,039 3,380 2,433 2,007 811 -

Production '000 tonnes 11,541 - 93 873 1,052 1,075 1,079 1,083 1,072 1,153 1,048 1,182 850 699 284 - Cu % 0.3% - 0.7% 0.5% 0.4% 0.3% 0.4% 0.3% 0.2% 0.2% 0.2% 0.2% 0.1% 0.1% 0.1% - Au g/t 5.0 - 7.1 7.0 6.1 5.1 6.1 4.2 4.7 4.7 5.0 4.8 3.9 3.6 3.2 - Ag g/t 28.16 - 49 45 34 33 36 35 20 21 20 23 17 23 30 -

Low Grade Material '000 tonnes 97 - 9 15 12 23 8 - 6 3 16 1 2 3 - - Cu % 0.1% - 0.1% 0.1% 0.1% 0.1% 0.1% - 0.1% 0.1% 0.1% 0.1% 0.1% 0.1% - - Au g/t 1.50 - 1.5 1.5 1.5 1.5 1.4 - 1.5 1.4 1.6 1.3 1.6 1.4 - - Ag g/t 9.77 - 18 8 8 10 8 - 7 7 10 12 11 10 - -

Waste '000 tonnes 1,085 - 200 338 203 131 33 - 28 38 71 6 9 28 - - Total Moved '000 tonnes 12,723 - 302 1,226 1,266 1,228 1,119 1,083 1,106 1,194 1,135 1,189 860 731 284 -

PROCESSING Mill Feed '000 tonnes 11,638 - - 945 1,050 1,050 1,050 1,050 1,050 1,050 1,050 1,050 1,050 959 284 - Cu Grade % 0.29% - - 0.6% 0.4% 0.3% 0.4% 0.3% 0.2% 0.2% 0.2% 0.2% 0.2% 0.1% 0.1% - Au Grade g/t 5.0 - - 7.0 6.1 5.2 6.0 4.3 4.6 4.7 4.9 4.8 4.1 3.5 3.2 - Ag Grade g/t 28 - - 45 34 33 36 35 21 21 21 23 19 21 30 -

Contained Cu '000 lbs 73,655 - - 11,620 9,616 6,966 9,777 6,388 5,580 5,154 5,399 5,594 4,056 2,817 689 - 2 Contained Au oz 1,863,340 - - 212,428 206,287 173,906 204,180 146,011 156,677 159,841 165,922 161,912 139,909 106,835 29,432 - 9, 2016 Contained Ag oz 10,480,499 - - 1,370,831 1,141,859 1,101,614 1,224,896 1,174,345 720,678 717,563 694,864 767,472 642,103 650,542 273,732 -

Recovery Copper Concentrate Recovery Cu % 82% - - 82% 82% 82% 82% 82% 82% 82% 82% 82% 82% 82% 82% - Au % 18% - - 18% 18% 18% 18% 18% 18% 18% 18% 18% 18% 18% 18% - Ag % 44% - - 44% 44% 44% 44% 44% 44% 44% 44% 44% 44% 44% 44% -

Pyrite Concentrate Recovery Cu % 15% - - 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% 15% - Au % 73% - - 73% 73% 73% 73% 73% 73% 73% 73% 73% 73% 73% 73% - Ag % 50% - - 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% 50% -

Net Recovery Cu % 82% - - 82% 82% 82% 82% 82% 82% 82% 82% 82% 82% 82% 82% - Au % 90% - - 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% 90% - Ag % 94% - - 94% 94% 94% 94% 94% 94% 94% 94% 94% 94% 94% 94% -

Production Copper Circuit Recovery Cu '000 lbs 60,545 - - 9,552 7,904 5,726 8,037 5,251 4,587 4,237 4,438 4,598 3,334 2,316 566 - Au oz 326,084 - - 37,175 36,100 30,434 35,732 25,552 27,419 27,972 29,036 28,335 24,484 18,696 5,151 - Ag oz 4,642,861 - - 607,278 505,844 488,015 542,629 520,235 319,261 317,881 307,825 339,990 284,451 288,190 121,263 -

Pyrite Concentrate Recovery www.rpacan.com Cu '000 lbs 10,754 - - 1,697 1,404 1,017 1,427 933 815 753 788 817 592 411 101 - Au oz 1,354,648 - - 154,435 149,971 126,430 148,439 106,150 113,904 116,205 120,625 117,710 101,714 77,669 21,397 - Ag oz 5,187,847 - - 678,561 565,220 545,299 606,323 581,301 356,736 355,194 343,958 379,899 317,841 322,018 135,497 -

Copper Concentrate tonnes 91,542 - - 14,442 11,951 8,657 12,151 7,939 6,935 6,406 6,710 6,953 5,041 3,501 856 - Mass Ratio % 0.79% - - 1.53% 1.14% 0.82% 1.16% 0.76% 0.66% 0.61% 0.64% 0.66% 0.48% 0.36% 0.30% - Cu grade within con % 30.0% - - 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% 30.0% - Au grade within con g/t 111 - - 80 94 109 91 100 123 136 135 127 151 166 187 - Page Ag grade within con g/t 1,577 - - 1,308 1,317 1,753 1,389 2,038 1,432 1,543 1,427 1,521 1,755 2,560 4,404 - Copper Concentrate (wet) wmt 101,713 - - 16,047 13,279 9,619 13,501 8,821 7,705 7,118 7,456 7,725 5,601 3,890 951 -

22 Pyrite Concentrate tonnes 1,138,746 - - 129,822 126,069 106,280 124,781 89,232 95,751 97,684 101,400 98,949 85,503 65,290 17,987 - Mass Ratio % 9.8% - - 14% 12% 10% 12% 8% 9% 9% 10% 9% 8% 7% 6% - -3 Cu grade within con % 0.43% - - 0.59% 0.51% 0.43% 0.52% 0.47% 0.39% 0.35% 0.35% 0.37% 0.31% 0.29% 0.25% - Au grade within con g/t 37 - - 37 37 37 37 37 37 37 37 37 37 37 37 -

Ag grade within con g/t 142 - - 163 139 160 151 203 116 113 106 119 116 153 234 - Pyrite Concentrate (wet) wmt 1,265,274 - - 144,246 140,076 118,089 138,646 99,147 106,390 108,538 112,667 109,944 95,003 72,545 19,985 -

Total Tonnes Concentrate wmt 1,366,987 - - 160,293 153,355 127,708 152,147 107,967 114,095 115,656 120,122 117,669 100,604 76,435 20,937 - UNITS TOTAL YR -2 YR -1 YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 YR 11 YR 12 YR 13 Total Recovered Cu '000 lbs 60,545 - - 9,552 7,904 5,726 8,037 5,251 4,587 4,237 4,438 4,598 3,334 2,316 566 - Technical Report – August NI 43-101 INV Me Au oz Au 1,680,733 - - 191,610 186,071 156,864 184,171 131,702 141,323 144,177 149,661 146,044 126,198 96,365 26,548 - Ag oz Ag 9,830,708 - - 1,285,839 1,071,064 1,033,314 1,148,952 1,101,535 675,996 673,074 651,783 719,889 602,292 610,208 256,761 - REVENUE Metal Prices Input Units US$/lbs Cu $3.00 - - $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 $3.00 -

tals Inc–Loma LargaProject,Project #2612 US$/oz Au $1,250 - - $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 - US$/oz Ag $20 - - $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 $20 - Copper Concentrate Payable Cu % - - 96.5% 96.5% 96.5% 96.5% 96.5% 96.5% 96.5% 96.5% 96.5% 96.5% 96.5% 96.5% 96.5% Au % - - 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% 80.0% Ag % - - 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0% 75.0%

Pyrite Concentrate Payable Cu % ------Au % - - 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% Ag % - - 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0% 93.0%

Total Payable Cu '000 lbs 58,425 - - 9,218 7,627 5,525 7,755 5,067 4,426 4,089 4,283 4,437 3,217 2,235 547 - Au oz 1,520,690 - - 173,365 168,353 141,927 166,633 119,161 127,866 130,448 135,410 132,138 114,181 87,189 24,020 - Ag oz 8,306,843 - - 1,086,521 905,038 873,139 970,852 930,786 571,210 568,741 550,749 608,298 508,930 515,619 216,960 - Cu as AuEq (1oz Au: 490lb Cu) oz AuEq 119,272 - - 18,794 15,576 11,268 15,825 10,304 9,053 8,364 8,766 9,074 6,580 4,559 1,109 - Ag as AuEq (1oz Au: 64oz Ag) oz AuEq 128,793 - - 16,841 14,034 13,534 15,051 14,416 8,862 8,824 8,546 9,437 7,896 7,993 3,358 - AuEq oz AuEq 1,768,756 - - 209,000 197,963 166,729 197,510 143,880 145,781 147,637 152,722 150,648 128,657 99,741 28,487 -

Total Gross Revenue (by Metal) Cu Gross Revenue US$ '000 $ 175,276 - - $27,653 $22,882 $16,576 $23,266 $15,200 $13,278 $12,266 $12,848 $13,312 $9,651 $6,704 $1,640 - Au Gross Revenue US$ '000 $ 1,900,863 - - $216,706 $210,441 $177,408 $208,292 $148,951 $159,833 $163,060 $169,263 $165,172 $142,726 $108,986 $30,025 - 2

9, 2016 Ag Gross Revenue US$ '000 $ 166,137 - - $21,730 $18,101 $17,463 $19,417 $18,616 $11,424 $11,375 $11,015 $12,166 $10,179 $10,312 $4,339 - Total Gross Revenue US$ '000 $ 2,242,276 - - $266,089 $251,424 $211,448 $250,975 $182,767 $184,535 $186,701 $193,125 $190,650 $162,556 $126,002 $36,003 -

TCRC Charges Copper Concentrate Treatment Charges US$ '000 $ 13,731 - - $2,166 $1,793 $1,299 $1,823 $1,191 $1,040 $961 $1,006 $1,043 $756 $525 $128 - Transport US$ '000 $ 22,011 - - $3,473 $2,873 $2,082 $2,922 $1,909 $1,667 $1,540 $1,613 $1,672 $1,212 $842 $206 - Refining Charges Cu US$ '000 $ 8,764 - - $1,383 $1,144 $829 $1,163 $760 $664 $613 $642 $666 $483 $335 $82 - Au US$ '000 $ 1,826 - - $208 $202 $170 $200 $143 $154 $157 $163 $159 $137 $105 $29 - Ag US$ '000 $ 1,045 - - $137 $114 $110 $122 $117 $72 $72 $69 $76 $64 $65 $27 - Total Charges Copper Concentrate US$ '000 $ 47,377 - - $7,366 $6,126 $4,489 $6,230 $4,120 $3,597 $3,343 $3,494 $3,615 $2,652 $1,872 $472 -

Pyrite Concentrate Treatment US$ '000 $ 170,812 - - $19,473 $18,910 $15,942 $18,717 $13,385 $14,363 $14,653 $15,210 $14,842 $12,825 $9,794 $2,698 - Transport and Port Storage US$ '000 $ 115,646 - - $13,184 $12,803 $10,793 $12,672 $9,062 $9,724 $9,920 $10,298 $10,049 $8,683 $6,631 $1,827 - Refining Charges Au US$ '000 $ 8,819 - - $1,005 $976 $823 $966 $691 $742 $756 $785 $766 $662 $506 $139 - Ag US$ '000 $ 7,237 - - $947 $788 $761 $846 $811 $498 $495 $480 $530 $443 $449 $189 - Total Charges Pyrite Concentrate US$ '000 $ 302,514 - - $34,609 $33,478 $28,319 $33,202 $23,949 $25,326 $25,825 $26,773 $26,188 $22,614 $17,379 $4,853 -

Total Charges US$ '000 $ 349,890 - - $41,976 $39,604 $32,808 $39,431 $28,069 $28,923 $29,168 $30,267 $29,803 $25,266 $19,251 $5,325 -

Net Smelter Return US$ '000 $ 1,892,386 - - $224,114 $211,820 $178,639 $211,544 $154,699 $155,612 $157,533 $162,858 $160,847 $137,290 $106,752 $30,678 -

Royalty NSR US$ '000 $ 94,619 - - 11,206 10,591 8,932 10,577 7,735 7,781 7,877 8,143 8,042 6,864 5,338 1,534 - www.rpacan.com

Net Revenue US$ '000 $ 1,797,767 - - $212,908 $201,229 $169,707 $200,966 $146,964 $147,832 $149,656 $154,716 $152,805 $130,425 $101,414 $29,144 - Unit NSR US$ / t proc 154.47 - - 225 192 162 191 140 141 143 147 146 124 106 103 -

OPERATING COST Mining US$/t proc $36.30 - - $36.31 $38.39 $37.77 $37.07 $32.52 $34.42 $37.34 $36.64 $34.40 $36.03 $32.55 $56.96 - Processing US$/t proc $14.23 - - $15.73 $15.31 $13.76 $13.87 $13.70 $13.70 $13.70 $13.72 $13.71 $13.64 $13.86 $21.42 -

Page G&A US$/t proc $7.27 - - $7.49 $6.81 $6.79 $6.77 $6.71 $6.72 $6.77 $6.74 $6.73 $6.71 $7.30 $23.65 - Total Unit Operating Cost US$/t proc $57.80 - - $59.53 $60.50 $58.32 $57.70 $52.92 $54.85 $57.81 $57.10 $54.84 $56.38 $53.70 $102.02 -

Mining US$ '000 $422,514 - - 34,313 40,311 39,658 38,921 34,143 36,146 39,209 38,474 36,123 37,828 31,222 16,166 - Processing US$ '000 $165,606 - - 14,868 16,073 14,450 14,563 14,382 14,387 14,385 14,403 14,399 14,323 13,296 6,080 - 22 G&A US$ '000 $84,568 - - 7,077 7,145 7,130 7,105 7,044 7,056 7,112 7,075 7,062 7,050 7,001 6,712 -

-4 Total Operating Cost US$ '000 $672,687 - - 56,257 63,529 61,237 60,589 55,569 57,589 60,706 59,952 57,584 59,201 51,518 28,957 -

VAT Paid on Operating Costs US$ '000 66,976 - - 5,311 6,182 6,201 6,136 5,570 5,807 6,154 6,089 5,811 6,009 5,112 2,594 - VAT Refund (CapEx and OpEx) US$ '000 (93,705) - - (20,136) (7,659) (7,102) (6,271) (6,144) (5,932) (6,766) (6,988) (6,842) (6,056) (6,095) (5,121) (2,594)

Operating Cashflow US$ '000 $1,151,809 - - 171,476 139,176 109,371 140,513 91,969 90,367 89,563 95,663 96,252 71,272 50,879 2,713 2,594 Technical Report – August NI 43-101 INV Me

UNITS TOTAL YR -2 YR -1 YR 1 YR 2 YR 3 YR 4 YR 5 YR 6 YR 7 YR 8 YR 9 YR 10 YR 11 YR 12 YR 13 CAPITAL COST

tals Inc–Loma LargaProject,Project #2612 Direct Cost Mining US$ '000 56,565 10,510 46,055 ------Process US$ '000 63,011 23,856 39,155 ------Infrastructure US$ '000 24,868 17,123 7,746 ------Tailings US$ '000 8,981 - 8,981 ------Total Direct Cost US$ '000 153,426 51,488 101,937 ------

Indirect Costs Indirects US$ '000 88,254 26,442 61,812 ------Subtotal Indirect Costs US$ '000 88,254 26,442 61,812 ------

Contingency US$ '000 44,172 12,660 31,512 ------Initial Capital Cost US$ '000 285,852 90,590 195,261 ------

Sustaining - Mining US$ '000 51,595 - - 19,097 7,587 558 60 2,689 7,134 6,210 5,603 1,892 687 77 - - Sustaining - Process US$ '000 9,000 - - - 900 900 900 900 900 900 900 900 900 900 - - Sustaining - Tailings US$ '000 3,380 - - 50 1,740 65 65 65 65 1,074 59 65 65 69 - - Reclamation and Closure US$ '000 4,244 ------4,244 Indirects US$ '000 15,038 - - 3,517 1,362 148 35 1,129 2,980 2,746 2,341 604 157 20 - - Sustaining - Contingency US$ '000 11,004 - - 3,469 1,615 120 25 631 1,655 1,616 1,301 406 140 25 - - Total Sustaining Cost US$ '000 94,261 - - 26,133 13,203 1,791 1,084 5,414 12,734 12,546 10,204 3,867 1,950 1,090 - 4,244

Total Capital Cost US$ '000 380,113 90,590 195,261 26,133 13,203 1,791 1,084 5,414 12,734 12,546 10,204 3,867 1,950 1,090 - 4,244 2 9, 2016 CASH FLOW & TAXES Net Pre-Tax Cashflow US$ '000 $771,696 -$90,590 -$195,261 $145,342 $125,973 $107,580 $139,429 $86,555 $77,633 $77,017 $85,459 $92,385 $69,322 $49,788 $2,713 -$1,650 Cumulative Pre-Tax Cashflow US$ '000 -$90,590 -$285,852 -$140,509 -$14,536 $93,044 $232,473 $319,028 $396,661 $473,678 $559,137 $651,522 $720,844 $770,632 $773,346 $771,696

Cashflow for NPI US$ '000 -$90,590 -$195,261 $133,798 $117,231 $102,764 $130,373 $81,625 $66,225 $66,163 $74,243 $81,260 $61,354 $44,435 $2,713 -$1,650 Cumulative Cashflow for NPI US$ '000 -$90,590 -$285,852 -$152,054 -$34,823 $67,941 $198,314 $279,940 $346,164 $412,327 $486,570 $567,830 $629,184 $673,619 $676,332 $674,682

Cogema Agreement Payments US$ '000 $36,241 $1,360 $1,360 $1,360 $0 $1,741 $6,519 $4,081 $3,311 $3,308 $3,712 $4,063 $3,068 $2,222 $136 $0

Advanced Royalty Payment / Repayment US$ '000 ------Cumulative ------

State, Employment, Windfall, & Income Taxes US$ '000 $239,301 $0 $0 $28,477 $21,564 $11,881 $22,338 $12,159 $28,140 $26,774 $27,667 $27,442 $19,654 $13,206 $0 $0

After-Tax Cashflow, pre-Sovereign Adjust US$ '000 $496,154 -$91,950 -$196,621 $115,505 $104,410 $93,958 $110,573 $70,314 $46,182 $46,935 $54,081 $60,880 $46,600 $34,361 $2,578 -$1,650 Cumulative After-Tax Cashflow US$ '000 -$91,950 -$288,572 -$173,066 -$68,656 $25,302 $135,875 $206,189 $252,371 $299,305 $353,386 $414,266 $460,866 $495,226 $497,804 $496,154

Sovereign Adjustment US$ '000 ------

After-Tax Cash Flow US$ '000 $496,154 -$91,950 -$196,621 $115,505 $104,410 $93,958 $110,573 $70,314 $46,182 $46,935 $54,081 $60,880 $46,600 $34,361 $2,578 -$1,650 Cumulative US$ '000 -$91,950 -$288,572 -$173,066 -$68,656 $25,302 $135,875 $206,189 $252,371 $299,305 $353,386 $414,266 $460,866 $495,226 $497,804 $496,154

Cash Costs US$ / oz Au $510 - - $346 $432 $486 $408 $483 $544 $568 $550 $529 $626 $678 $1,242 -

PROJECT ECONOMICS www.rpacan.com Pre-Tax Payback Period Years 2.1 - - 1.00 1.00 0.14 ------Pre-Tax IRR % 35.7% Pre-tax NPV at 5% discounting US$ '000 489,908 Pre-tax NPV at 7.5% discounting US$ '000 391,380 Pre-tax NPV at 10% discounting US$ '000 312,468

Post Sovereign Adjustment

Page After-Tax Payback Period Years 2.7 - - 1.00 1.00 0.73 ------After-Tax IRR % 26.3% After-Tax NPV at 5% discounting US$ '000 300,851 After-Tax NPV at 7.5% discounting US$ '000 232,414

22-5 After-tax NPV at 10% discounting US$ '000 177,567

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CASH FLOW ANALYSIS Considering the Project on a stand-alone basis, a summary of the cash flow is provided in Table 22-2.

TABLE 22-2 SUMMARY OF CASH FLOW INV Metals Inc. – Loma Larga Project

Value Parameter (US$ millions) Gross Revenue 2,242.3 Treatment and Refining Charges 349.9 Net Smelter Return 1,892.4 Royalties @ 5% 94.6 Net Revenue 1,797.8 Operating Costs 672.7 Refundable VAT 26.7 Operating Cash Flow 1,151.8 Initial Capital Costs 285.9 Sustaining Capital Costs 94.3 Net Pre-Tax Cash Flow 771.7 Income Tax 132.8 State and Employment Tax 106.5 AREVA NPI Payments 36.2 Windfall Tax - Sovereign Adjustment - After-Tax Cash Flow 496.2

ECONOMIC RESULTS On a pre-tax basis, the undiscounted cash flow totals $771.7 million over the mine life. The pre-tax Internal Rate of Return (IRR) is 35.7%, the payback period is 2.1 years, and the pre- tax Net Present Values (NPV) are: • US$489.9 million at a 5% discount rate.

• US$391.4 million at a 7.5% discount rate.

• US$312.5 million at a 10% discount rate.

On an after-tax basis, the undiscounted cash flow totals $496.2 million over the mine life, and simple payback occurs after 2.7 years.

The after-tax Internal Rate of Return (IRR) is 26.3% and the after-tax NPVs are:

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 22-6 www.rpacan.com

 $300.9 million at a 5% discount rate.

 $232.4 million at a 7.5% discount rate.

 $177.6 million at a 10% discount rate.

SENSITIVITY ANALYSIS Project risks can be identified in both economic and non-economic terms. Key economic risks were examined by running cash flow sensitivities to:  Head grade,

 Recovery,

 Metal prices,

 Operating costs, and

 Initial capital costs.

Sensitivity of the after-tax NPV at a 5% discount rate has been calculated for variations on the base case. The sensitivities are shown in Figure 22-1 and Table 22-3. Head grade, recovery, and metal price variations were applied to all metals, however, the values shown in Table 22- 3 are for gold only. Gold accounts for approximately 86% of the net revenue of the Project.

FIGURE 22-1 SENSITIVITY ANALYSIS

$500 $450 $400 millions)

$350

(US$ $300 Head Grade

5% $250 Recovery @

$200 Metal Price NPV $150 Operating Cost Tax ‐ $100 Capital Cost

After $50 $0 0.7 0.8 0.9 1 1.1 1.2 1.3 Factor Change from Base Case

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 22-7 www.rpacan.com

TABLE 22-3 SENSITIVITY ANALYSES INV Metals Inc. – Loma Larga Project

Head Grade NPV at 5% Factor Change (g/t Au) (US$ millions) 0.8 3.98 153 0.9 4.48 224 1.0 4.98 301 1.1 5.48 368 1.2 5.98 413

Recovery NPV at 5% Factor Change (% Au) (US$ millions) 0.89 80% 211 0.94 85% 252 1.00 90% 301 1.03 92.5% 321 1.05 95% 342

Metal Price NPV at 5% Factor Change ($/oz Au) (US$ millions) 0.77 972 89 0.88 1,111 193 1.00 1,250 301 1.11 1,389 398 1.22 1,528 468

Operating Cost NPV at 5% Factor Change ($/t) (US$ millions) 0.90 52 345 0.95 55 323 1.00 8 301 1.13 65 245 1.25 72 189

Capital Cost NPV at 5% Factor Change ($ millions) (US$ millions) 0.90 257 328 0.95 272 315 1.00 286 301 1.13 322 267 1.25 357 241

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 22-8 www.rpacan.com

23 ADJACENT PROPERTIES

There are no adjacent properties as defined by NI 43-101.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 23-1 www.rpacan.com

24 OTHER RELEVANT DATA AND INFORMATION

EXECUTION PLAN

RPA, Samuel Engineering, and KCB have identified a number of activities that will be completed in the process of developing the Project. As a collaborative effort, the team has identified key milestones and estimated the time it will take to complete each of the tasks. The development of the Project from the decision to proceed beyond the PFS to reach full production at 3,000 tpd is estimated to take four years and eight months.

The Project dates are presented as Year 1, Year 2, Year 3, Year 4, and Year 5 in this section of the report. It is also assumed that Year 1 commences on January 1.

The key milestones and durations are provided in Table 24-1.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 24-1 www.rpacan.com

TABLE 24-1 PROJECT EXECUTION MILESTONES AND SCHEDULE INV Metals Inc. – Loma Larga Project

Activity Start Finish Metallurgical Testwork to Support Feasibility Study Jan Year 1 Geotechnical Testwork to Support Portal Locations Jan Year 1 Kick-off Feasibility Study Mar Year 1 Testwork Complete Mar Year 2 Begin Access Road Construction Mar Year 2 Submit ESIA Application for Approval May Year 2 Feasibility Study Complete Sep Year 2 Place Order for Crushing Plant Oct Year 2 Publish NI 43-101 for Feasibility Study Oct Year 2 Access Road Complete Dec Year 2 ESIA Approved Dec Year 2 Financing In Place Jan Year 3 Notice to Proceed with Detailed Engineering and Procurement Jan Year 3 Begin Mine Development Sep Year 3 Begin Plant Facilities Construction Jan Year 4 Detailed Engineering Substantially Complete Mar Year 4 Mechanical Completion Aug Year 4 Permanent Power Available Aug Year 4 Tailings Dry Stack Facility Phase One Complete Feb Year 5 Plant Commissioning Complete Mar Year 5 Mine Pre-production Development Complete Sep Year 5 Plant in Full Production Sep Year 5

The Project execution schedule is dependent upon having the access road completed prior to initiation of any significant work involving heavy equipment on the Loma Larga site. Employees will be transported from Cuenca and other local communities to the site. This requires good, safe, easy access to the site which will only be available after the access road is completed.

Under this schedule, the ESIA for the mining portion of the Project will not be approved by the time the ESIA must be submitted for the access road. Therefore, at least a portion of the work required to design, permit, and construct the access road will occur before the Project permitting approval is received. This means that the cost of completing the design, permitting, and construction of the access road may be incurred without the benefit of Project approval and financing.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 24-2 www.rpacan.com

ACCESS ROAD The current route from Cuenca to the Project site involves travel on highways, followed by a narrow route through the town of San Gerardo, gaining altitude via many sharp switchbacks. The proposed new access route involves shorter distances from the city of Cuenca, reduced traffic volume, and is more suitable for large equipment coming to and from the Project site.

Early construction of the access road has been identified as a benefit to the construction schedule and cost estimates. Two options have been identified:

1) Earliest Completion – starting with detailed design for the road immediately after PFS completion.

2) Just-In-Time Completion – road construction deferred to as late as possible before first heavy construction on site (crusher installation).

Option 2 was selected for use in the study.

TESTING AND STUDIES A significant amount of additional testing is required in order to collect the data needed to support completion of a Feasibility Study and detailed designs for numerous areas of the Loma Larga Project. This includes metallurgical drilling and testing, environmental baseline studies, geochemical studies, geotechnical and condemnation drilling, hydrogeological drilling, paste backfill testing, and water treatment testing.

METALLURGICAL SAMPLING AND TESTING Since the final metallurgical process must be identified and samples must be generated using the selected process to complete other testwork, metallurgical sampling and testing take precedence over other testwork. It is anticipated that drilling to collect metallurgical samples will commence at the start of the first year and will take approximately three months.

After the metallurgical samples are collected, the metallurgical testwork will be completed in two phases. First, process development testwork is required in order to select the optimum processes and then to optimize the selected process using composite samples that represent a range of grades for each ore type that is anticipated. In completing the metallurgical review, several processes have been identified that are worthy of additional investigation prior to the time the final process is selected. These include sequential flotation and bulk sulphide flotation

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 24-3 www.rpacan.com followed by copper cleaner flotation. For the second phase of the metallurgical testing, samples should represent the deposit spatially and should account for a wide range of grades for Au, Ag, Cu, As, and other minor elements that will be encountered during the LOM Plan. These samples should be tested using the optimized process. The data generated from the variability testing program is needed to determine if there are grade-recovery relationships and how the metallurgical performance will change over the life of the mine from both recovery and cost perspectives based on ore hardness and variations in reagent consumptions.

After the process is optimized, it will be necessary to complete testwork using large samples in order to generate sufficient quantities of tailings samples. These samples are needed to complete geochemical and geotechnical testwork as well as additional metallurgical testing such as thickening and dewatering tests.

It is assumed that the testwork required to develop and design an appropriate water treatment process will be completed concurrently with the metallurgical testing.

ENVIRONMENTAL BASELINE STUDIES Environmental baseline studies are required to support the permitting process. These studies must be conducted during the four seasons of the year so they will also start at the beginning of year one and finish at the end of February during the second year.

GEOCHEMICAL TESTWORK The required geochemical testwork includes humidity cell testing of waste rock and tailings samples in order to determine the ARD potential. This information is needed to support environmental permitting and to develop ARD mitigation plans so accurate costs for the mitigation plans can be estimated for the Feasibility Study.

GEOTECHNICAL AND HYDROGEOLOGICAL The geotechnical and hydrogeological studies and designs can be subdivided into two categories. They are the work to support the underground mine and the information needed to support the design of the surface facilities including the processing plant area and the tailings dry stack facility.

It is assumed that the drilling for both geotechnical and hydrogeological sample collection will commence the beginning of March in the first year which is towards the end of the drilling for

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 24-4 www.rpacan.com metallurgical sample drilling. For this drilling another three months is allocated. Prior to starting the geotechnical drilling campaign, INV will need to complete a desktop design in order to identify the geotechnical holes that are required for the TDSF design. This planning stage will commence in January of the first year and end prior to the start of drilling in March.

Table 24-2 summarizes the timeline for completing the studies and tests that are required to support the Feasibility Study.

TABLE 24-2 PROJECT EXECUTION SCHEDULE FOR TESTING AND STUDIES INV Metals Inc. – Loma Larga Project

Duration Activity Start Finish (working days) Metallurgical Sample Drilling 75 Jan Year 1 Apr Year 1 Environmental Baseline Studies 360 Jan Year 1 Feb Year 2 Desktop Design for Geotechnical Drilling Plan 50 Jan Year 1 Mar Year 1 Geotechnical and Condemnation Drilling 75 Mar Year 1 May Year 1 Hydrogeological Drilling and Studies 150 Mar Year 1 Aug Year 1 Process Development Testing 130 Apr Year 1 Sep Year 1 Geochemical Testing 250 May Year 1 Mar Year 2 Variability Testing 130 Sep Year 1 Mar Year 2 Paste Backfill Testing 75 Sep Year 1 Nov Year 1

FEASIBILITY STUDY The Feasibility Study is scheduled to start in March of Year 1. The work should be completed at end of August, Year 2.

A number of trade-off studies are recommended to be completed prior to completing the Feasibility Study. Some of these studies, such as whether to truck or to convey ore from the mine to the plant, can be completed without any additional data. Other trade-off studies, such as the benefit of grinding the flotation concentrate finer versus the cost of grinding finer, will require additional data before they can be completed. Therefore, the execution schedule assumes that some of the trade-off studies will commence in parallel with the Feasibility Study.

Completion of a Feasibility Study for this Project is expected to take approximately 18 months so it should be completed by September of Year 2.

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ENVIRONMENTAL PERMITTING As mentioned previously, permitting for the access road will be completed as a separate activity which complies with Ecuadorian law that requires separate permits for separate activities. This means that no variance will be required so separate ESIA applications will be prepared and submitted for the access road, the main ESIA (i.e., Loma Larga mine and supporting site facilities), and the power line.

Prior to completing ESIA applications some trade-off studies are required to specifically support the applications. Some of these trade-off studies have been previously completed by INV. An example is consideration of different alignments for the access road and power line or consideration of alternate mining and processing methods, so some time is allowed in the schedule to complete this work.

Preparation of documents for the main ESIA can be started while the Feasibility Study is being executed although the documents cannot be finished until after it is completed. The execution schedule assumes that the ESIA documents will be prepared starting September of Year 1 and finished in May of Year 2.

Construction of the power line is on a timeline that is different from construction of the main site facilities, which will be discussed subsequently. Therefore, document preparation and submission of the ESIA for the power line will commence in March of Year 3 and finish a month later in April of Year 3. Assuming approval is received three months later, it will be received in July of Year 3.

A summary of the execution schedule for environmental permitting is provided in Table 24-3.

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TABLE 24-3 PROJECT EXECUTION SCHEDULE FOR ENVIRONMENTAL PERMITTING INV Metals Inc. – Loma Larga Project

Duration Activity (working Start Finish days) Trade-off Studies to Support ESIA 80 Jan Year 1 Apr Year 1 Document Preparation for Access Road ESIA 50 Mar Year 1 May Year 1 Access Road ESIA Submittal and Approval 75 May Year 1 Aug Year 2 ESIA Documents Preparation 175 Sep Year 1 May Year 2 Government Approval of ESIA Submittal 75 May Year 2 Aug Year 2 Document Preparation for Power Line ESIA 30 Mar Year 3 Apr Year 3 ESIA Approval for Power Line 75 Apr Year 3 Jul Year 3

DETAILED DESIGN In addition to the access road, the design and construction of the on-site crushing plant is accelerated in the execution schedule since the plan includes the use of the crushing plant to produce construct materials for the waste and stockpile areas and the tailings dry stack facility. This approach has the benefit of reducing construction costs by eliminating the use of contractors to operate temporary crushers to produce the overliner material that is required for the construction.

Due to the mining of sulphidized waste and low grade ore at the outset of the mine development, a lined stockpile is required prior to the time mine development begins. The execution schedule has been developed to take into account the interrelationships between the various activities.

The design schedule is also staggered to take into account the estimated time needed to complete the designs and the various construction activities. For example, the tailings dry stack facility will take approximately 14 months and the processing facilities will take an expected 12 months. A summary of the key design activities and timelines is provided in Table 24-4.

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TABLE 24-4 PROJECT EXECUTION SCHEDULE DETAILED DESIGN INV Metals Inc. – Loma Larga Project

Duration Activity (working Start Finish days) Detailed Design of Access Road 60 Jan Year 1 Mar Year 1 Detailed Design of Crushing Plant 40 Jul Year 2 Sep Year 2 Detailed Engineering of Waste & Ore Stockpiles 160 Aug Year 2 Feb Year 3 Detailed Mine Design for U/G Facilities 130 Sep Year 2 Feb Year 3 Detailed Design of Paste Backfill Plant 75 Sep Year 2 Sep Year 2 Detailed Engineering of Process & Infrastructure 310 Jan Year 3 Mar Year 4 Detailed Engineering of Tailings Dry Stack Facility 130 Feb Year 3 Jul Year 3

POWER LINE The Project execution schedule estimates that the 138 kV incoming power line can be designed and constructed in approximately 500 working days (i.e., 100 weeks) commencing in January of Year 3 and finishing in August of Year 4.

LONG LEAD PROCUREMENT ITEMS In order to meet the required construction schedule, some of the larger pieces of processing equipment must be procured prior to the completion of detailed design. Based on the budgetary quotations that were received for this PFS, six items were identified that have long lead times. The items that are currently identified, the lead times, and the anticipated schedule are summarized in Table 24-5.

TABLE 24-5 LONG LEAD PROCUREMENT SCHEDULE INV Metals Inc. – Loma Larga Project

Delivery Time Duration Activity Start Finish (weeks) (working days) Crusher Package 40 280 Sep Year 2 Jun Year 3 Ball Mill Fab & Deliver 50 350 Feb Year 3 Feb Year 4 ISA Regrind Mills 59 413 Feb Year 3 Apr Year 4 Flotation Cells 36 252 Mar Year 3 Nov Year 3 Thickeners 38 266 Apr Year 3 Jan Year 3 Filter 44 308 Apr Year 3 Feb Year 4

CONSTRUCTION SCHEDULE As mentioned previously, different areas of the Project have significantly different timelines required to complete the construction. The execution schedule has been developed to

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 24-8 www.rpacan.com synchronize the various activities so the mine and the processing plant are ready to start production at the same time. It should also be noted that the construction schedule is based on delivery of skid mounted packages to the site for the mechanical equipment, the electrical equipment, etc. Therefore, the mechanical and electrical completion of the facilities will be limited to installing interconnecting piping and wiring at the Project site.

A summary of the key construction milestones and schedule is provided in Table 24-6.

TABLE 24-6 KEY CONSTRUCTION MILESTONES INV Metals Inc. – Loma Larga Project

Duration Activity Start Finish (working days) Main Access Road 225 Mar Year 2 Dec Year 2 Crusher Bench Earthwork 60 Jan Year 3 Mar Year 3 Crusher Bench Concrete 40 Mar Year 3 May Year 4 Waste and Ore Stockpiles 200 Apr Year 3 Dec Year 3 Concrete Foundations 250 May Year 3 Feb Year 4 Crusher Installation 60 Jun Year 3 Aug Year 3 Construct Tailings Dry Stack Facility 360 Jul Year 3 Sep Year 4 Mine Development 626 Sep Year 3 Sep Year 5 Erect Steel, Mechanical, Piping, E&I 280 Dec Year 3 Nov Year 4 Ball Mill Installation 156 Feb Year 4 Aug Year 4

START-UP AND COMMISSIONING The crushing plant will start up in September of Year 4 in order to crush materials required for construction. The processing facilities will be commissioned and ramped up to full production while the mine development is being completed in order to take advantage of the ore stockpiles that will be available at that time. This approach has the advantage of reducing the size of the stockpiles and the costs associated with their construction as well as being more environmentally sensitive. Based on this execution schedule the mine and plant will arrive at full production of 3,000 tpd in March of Year 5.

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25 INTERPRETATION AND CONCLUSIONS

GENERAL The Study results indicate that the Project should proceed to the feasibility stage, including further data collection and analysis to verify the Project’s technical, financial, social, environmental, and political acceptability and viability.

Specific conclusions by area are detailed below.

GEOLOGY AND MINERAL RESOURCES • Loma Larga is a high sulphidation polymetallic epithermal deposit containing significant values of gold, silver, and copper.

• The Loma Larga deposit is a stratigraphically controlled, flat lying, gently westward- dipping, north-south striking, cigar-shaped body. It also dips slightly to the north, such that the mineralized zone is closer to surface at the south end.

• The results of the QC samples, together with the QA/QC procedures implemented by INV at Loma Larga, provide adequate confidence in the data collection and processing, and the assay data is suitable for Mineral Resource estimation.

• Understanding of the Project geology and mineralization, together with the deposit type, is sufficiently well established to support Mineral Resource and Mineral Reserve estimation.

• Block grade interpolation was carried out using OK for gold, silver, and copper and the ID2 weighting for density. A 3.0 g/t Au wireframe model (High Grade Zone) and a 0.8 g/t Au wireframe model (Low Grade Zone) were used to constrain the grade and density interpolations.

• An NSR cut-off value of US$60/t is appropriate for reporting current Mineral Resources for the Project, which is based on the current production scenario.

• Mineral Resources are estimated in four zones: the High Grade Main Zone, which is classified as an Indicated Mineral Resource, the Low Grade Main Zone, which contains both Indicated and Inferred Mineral Resources, and the High Grade Upper Zone and Low Grade Lower Zone, which are classified as Inferred Mineral Resources.

• At a US$60/t NSR cut-off value, Indicated Mineral Resources are estimated to be 17.9 Mt grading 4.42 g/t Au, 28.3 g/t Ag, and 0.26% Cu. Inferred Mineral Resources are estimated to be 7.3 Mt grading 2.29 g/t Au, 24.1 g/t Ag, and 0.13% Cu.

• Definitions for resource categories used in this report are consistent with those defined by CIM, 2014 as incorporated by reference in NI 43-101.

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MINING AND MINERAL RESERVES • The Loma Larga deposit will be accessed using a ramp on the northeastern side of the deposit. Levels and accesses have been designed within the low grade mineralization, taking advantage of better ground conditions and limiting the amount of waste development.

• At a cut-off grade of 2 g/t Au, Probable Mineral Reserves are estimated to be 11.6 Mt grading 4.98 g/t Au, 28 g/t Ag, and 0.29% Cu. This Mineral Reserve is contained in the High Grade Main Zone only.

• Mining will be carried out by mechanized equipment, working three eight-hour shifts per day to produce 3,000 tpd ore, over a 12 year mine life.

• The high grades of the Loma Larga deposit justify a “maximum extraction” approach with no pillars, through the use of cemented paste backfill. Unconsolidated waste will be used as backfill where it does not affect extraction.

• The rock mass quality of the host rock is variable from Good to Very Poor. Areas of poor ground conditions will require additional ground support above standard bolting and screening. The rock mass quality of the silicified High Grade Main Zone (classified as Good, and generally of better quality than the host rock), will allow mining via longhole stoping. High grade areas too small to mine using longhole stoping will be extracted with drift and fill mining. In the upper levels of the High Grade Main Zone, ground support requirements for development headings and stopes will increase as they near the host rock.

• Definitions for reserve categories used in this report are consistent with those defined by CIM (2014) and incorporated by reference in NI 43-101.

METALLURGY, PROCESS, AND INFRASTRUCTURE • The recent metallurgical testwork data established that sequential flotation to produce pyrite concentrate that contains gold and silver, and copper concentrate that contains gold and silver, is viable.

• The processing design selected for Loma Larga includes well known, proven technology that has been used successfully by the mining industry for many years.

• The Loma Larga ore contains high gold and silver grades, along with significant associated concentrations of arsenic. The arsenic will be concentrated in the copper concentrate, with associated impurity penalties. It is noted that initial indications were received from metal traders and smelters that despite the high arsenic, the proposed copper concentrate is a saleable product. Also of note, the copper concentrate accounts for approximately 9% of the revenue stream for the Project. .

• The site is located close to existing infrastructure (approximately 30 km from a major centre). To develop the project, a new access road and transmission line will be required.

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ENVIRONMENTAL CONSIDERATIONS • INV has been monitoring the watershed in the Loma Larga Project area for many years and good baseline water quality information has been collected. INV will continue surface water monitoring in accordance with their environmental permits for exploration and as the Project develops.

• The main Project infrastructure is located in the sub-catchments which drain towards the Pacific Ocean and away from the city of Cuenca.

• Environmental challenges associated with acid rock drainage and water management, while manageable, require diligent attention and study in order to effectively mitigate the risks. Design of the Project infrastructure has taken this need into account utilizing international leading environmental management practices to limit the influence of the Project on environmental features, such as water, wildlife, and vegetation.

• Environmental stewardship continues to be a priority for INV in its ongoing work with local communities.

SOCIAL AND POLITICAL CONSIDERATIONS • INV is building on a long history of constructive social engagement started by the previous owner IAMGOLD.

• A detailed socio-economic baseline study for the direct and indirect areas of influence of the Project was completed in 2010.

• Consultation efforts have been ongoing, with a significant public information campaign to increase understanding of mining activities as they relate to the Project. Complementing the consultation activities are small scale community development projects, designed and executed in partnership with local communities.

• There have been recent changes and clarifications in the mining and tax laws and regulations in Ecuador. The mining sector is developing within Ecuador as few international companies have successfully developed mining projects in the country.

ECONOMIC ANALYSIS • At a base case gold price of US$1,250/oz, the undiscounted pre-tax cash flow totals US$772 million over the mine life, and simple payback occurs after 2.1 years.

• The pre-tax IRR is 35.7% and the pre-tax NPVs are:

o US$490 million at a 5% discount rate. o US$391 million at a 7.5% discount rate. o US$312 million at a 10% discount rate.

• On an after-tax basis, the undiscounted cash flow totals US$496 million over the mine life, and simple payback occurs after 2.7 years.

• The after-tax IRR is 26.3% and the after-tax NPVs are:

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o US$301 million at a 5% discount rate. o US$232 million at a 7.5% discount rate. o US$178 million at a 10% discount rate.

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26 RECOMMENDATIONS

GENERAL RPA recommends that INV carry out field programs and analysis in order to collect sufficient data to complete a Feasibility Study. The studies and data needed include the following.

• Complete a metallurgical testwork program that is designed to refine the processing technology for Loma Larga ore, to optimize the process, and to evaluate the variability in the metallurgical response for the various ore types.

• Complete geotechnical studies and evaluations:

o Confirm ground support requirements for the underground mine and optimum ramp location.

o Confirm the suitability and design requirements for the selected sites for the TDSF, waste and ore stockpile, processing facilities, and infrastructure.

• Complete hydrogeological studies in order to understand the impact of groundwater on the underground mine and the dewatering and ground support requirements.

• Complete hydrological studies in order to fully understand the water flow rates and to assess the water management and water treatment requirements for the Loma Larga site.

• Complete additional environmental baseline studies and testing such as geochemical and water analyses in order to support with a high degree of confidence that the activities associated with the mine development can be carried out in a manner that will not degrade the environment.

• Conduct testing required to design a paste backfill process that will provide geo- technically competent support for the underground mine and provide the data needed to complete accurate estimates for the capital and operating costs.

In addition to the data collection mentioned above, the authors have the following recommendations, divided among the relevant areas of this Study.

GEOLOGY AND MINERAL RESOURCES • In advancing the Project, consider the following:

o A drill hole spacing analysis to support upgrading areas of the High Grade Main Zone to Measured Mineral Resources.

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o Additional drilling in the High Grade Upper Zone and Low Grade Lower Zones in order to upgrade the Mineral Resources from Inferred to Indicated.

• Procure reference standards with grades that better reflect the range of gold grades within the Mineral Resource (i.e., 5 g/t Au to greater than 30 g/t Au). RPA further recommends that INV obtain an analytical standard for silver and another for copper that reflect the average grades expected in the deposit, in order to quantify the accuracy of analyses.

• For additional confidence in the analytical method for high grade assays, conduct confirmatory metallic sieve fire assays on some representative intervals of high grade zones, and/or intervals containing visible gold.

• Check half core duplicate analyses using core from the existing core library, to ensure that the current practice of quarter-core analysis is accurate.

• Resurvey drill hole collars that deviated more than one metre above or below the topographic surface.

• Silicification is strongly associated with mineralization and influences mine design. INV geologists completed a silicification wireframe, which RPA utilized for mine planning purposes. It is recommended that this silicification wireframe model be incorporated into the Resource block model.

MINING AND MINERAL RESERVES • Complete trade-off studies to select the optimum designs for the Project including:

o An update of the material handling options for transporting ore to the plant, tailings to the TDSF, and tailings to the paste backfill plant. Conveying, surface trucks and underground trucks have been considered.

o Access via a second ramp to surface for emergency egress (and more efficient haulage), versus the PFS design of a single ramp and raise systems for emergency egress.

o Alimak versus raiseboring methods for driving raises, impacted by availability of equipment and experienced personnel.

o Study the impacts of implementing a VOD system at the mine.

METALLURGY, PROCESS, AND INFRASTRUCTURE • Complete trade-off studies to select the optimum processes and designs for the Project including:

o Evaluate the tailings production and deposition methods including paste tailings versus filtered tailings.

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o Compare paste backfill processes using alternative types of tailings such as paste tailings, and filtered tailings. Consider pumping tailings to the plant instead of transporting filtered tailings and re-pulping them at the paste backfill plant.

o Evaluate the optimum mine life by considering the benefits of processing low grade ore versus the possible additional costs that may be associated with doing so.

o Evaluate the optimum flotation concentrate regrind sizes for the copper concentrate and the pyrite concentrate to maximize recoveries. Consider the benefits of potentially higher recovery versus the possible additional costs for power, grinding balls, mill liners, and additional capital costs for larger regrind mills.

o Evaluate the various options for regrind mills in order to select the best mills for the required duties.

o Fully evaluate options for transport and shipment of the flotation concentrates.

o Evaluate the relationship between gold recovery and mass pull into the pyrite flotation concentrate and determine the optimum design criteria.

o Evaluate construction of the 138 kV power line versus on-site power generation.

o Evaluate the optimal site access road location.

• Conduct metallurgical testwork to determine the optimum process and the optimum process design criteria that will be used as the basis for the next Study including:

o Conduct preliminary tests to determine if a bulk copper flotation followed by copper cleaner flotation and collecting the cleaner tailings as the pyrite concentrate performs similarly to sequential flotation. If effective, the alternate process may result in reduced costs. A trade-off study is required to confirm which option is better after the test data is available.

o Determine the optimum primary grind size.

o Determine the optimum flotation conditions and reagents.

o Determine the optimum pyrite and copper concentrate regrind sizes.

o Evaluate leaching of rougher flotation tailings at various grind sizes using duplicate leach and CIL tests.

o Evaluate options for reducing the arsenic content in the copper concentrate and determine if the processes are economically preferable after the data is available.

o Complete additional ore hardness testing including crusher work index, Bond ball mill work index, Bond rod mill work index, and abrasion index tests.

o Conduct geotechnical tests on the tailings.

o Conduct final tests using site water to determine if the test results are similar to the results achieved with laboratory water.

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• Conduct aging tests to determine the impact of oxidation of the material over time on the metallurgical response of the ore.

• Conduct metallurgical testwork using variability samples to determine how much variation there will be in the metallurgical performance over the life of the mine based on metal grades, ore types, presence of impurities, etc. Tests should include:

o Grinding and flotation tests using the conditions established for the Study.

o Ore hardness and comminution testing including crusher work index, Bond ball mill work index, Bond rod mill work index, Bond abrasion index tests, JK Drop Weight tests, and SMC tests.

• Additional mineralogical studies should be conducted, particularly on flotation concentrates that contain high levels of impurities that may affect marketability and/or the costs associated with smelter penalties. The studies should be designed to evaluate the mineralogy of the impurities with the objective of evaluating possible changes in processing parameters that might reduce the concentrations of the impurities. Mineralogical studies should also be conducted for flotation tailings, as needed, to evaluate potential minerals that generate ARD and mobilized metals. As with the studies on flotation concentrates, the objective of mineralogical evaluations on tailings is to identify potential processes that may improve the metallurgical performance.

• Conduct testwork required to develop the process design criteria for unit processes using bulk samples that have been generated using the selected, optimum processing methods.

o Settling and filtration tests on flotation concentrates.

o Settling and filtration tests on tailings.

o Geochemical properties of tailings and waste rock.

• Conduct testing required to determine the optimum treatment method and develop the process design criteria for effluent water treatment.

• Conduct paste backfill testing to determine:

o Preferable binder, moisture content, and quantities required.

o Required cure times.

o Strength that can be obtained.

ENVIRONMENTAL CONSIDERATIONS • Remain in compliance with environmental reporting, monitoring, and auditing during exploration and development.

• Complete additional or update baseline studies required to support an ESIA including:

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o Air quality and noise studies. o Terrestrial and aquatic biology studies. o Surface and groundwater quality studies. o Geochemistry, soil, and sediment studies. o Social-economic studies and consultation.

SOCIAL AND POLITICAL CONSIDERATIONS • Continue to engage the local communities and participate in their activities.

• Continually monitor the political climate in Ecuador and Azuay Province in order to be apprised of changes being made and their potential impact on the ability to develop the Project in the proposed manner.

ECONOMICS AND ANALYSIS • Carry out a detailed marketing study to confirm that the pyrite and copper flotation concentrates are marketable and to finalize the costs associated with the marketing.

PROPOSED BUDGET A budget to advance the Project to a Feasibility Study is provided in Table 26-1.

TABLE 26-1 BUDGET TO ADVANCE TO FEASIBILITY STUDY INV Metals Inc. – Loma Larga Project

Cost Area Item (US$ millions) Geology & Mineral Resources Assaying Analysis 0.1 Block Modelling – Silicification & RQD 0.1 Mining & Mineral Reserves Geotechnical Field Program & Analysis 0.8 Hydrogeological Study 0.3 Backfill Testwork 0.2 Metallurgy, Process & Infrastructure Testwork Program 0.8 Mineralogical Study 0.1 Geotechnical Field Program & Analysis 0.5 Environment Continue Baseline Data Collection 0.6 Geochemical Testing 0.3 Hydrological Study 0.2 Feasibility Study Including Trade-Off Studies 2.0 Total 6.0

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deposition: Quimsacocha volcanic center, Azuay Province, Ecuador. Presented to SEG conference, Whistler, B.C. September 25, 2013.

Ministerio del Ambiente. Resolucion No. 614. Transfer of Environmental License from IAMGOLD to INV. June 2015.

PROMAS - Universidad de Cuenca, 2009: Elaboración de la línea base en hidrología de los páramos de Quimsacocha y su área de influencia. Informe de avance.

PROMAS - University of Cuenca, 2011.

Propraxis, 2010: Linea Base Proyecto Quimsacocha: Indicadores Linea Base. Propraxis S.A.

Propraxis, 2010a: Levantamiento de Linea Base Social Proyecto Quimsacocha. Parroquias de Tarqui, Victoria del Portete, Chumblin y SanGerardo. Propraxis S.A.

Province of Azuay, 2012: Environmental management system for the Province of Azuay. August 2012

Ramsay, P. M., and Oxley, E. R., 1997: The growth form composition of plant communities in the Ecuadorian páramos. Plant Ecology 131: 173–192.

Robert, F., et al., 2007: Models and Exploration Methods for Major Gold Deposit Types. In Proceedings of Exploration 07: Fifth Decennial International Conference on Mineral Exploration, Ed: B. Milkereit, 2007, pp 691-711.

RPA, 2005: Technical Report on the Quimsacocha Project, Azuay Province, Ecuador. Technical report prepared by Valliant, W.W., Roscoe, W.E., and Ross, D. for IAMGOLD Corporation.

RPA, 2012: Technical Report on the Quimsacocha Project, Azuay Province, Ecuador. Technical report prepared by Valliant, W., Masun, K., and Postle, J. for INV Metals Inc.

RPA, 2015: Technical Report on the Loma Larga Project, Azuay Province, Ecuador. Technical report prepared by Cox J.J., Altman K.A., Masun, K., Robertson, L., and Diaz, C.A. for INV Metals Inc.

Samuel Engineering, Inc., 2014: Loma Larga Base Case Prefeasibility Study Engineering Package.

Scott Wilson RPA, 2006: Technical Report on the Quimsacocha Project, Azuay Province, Ecuador. Technical report prepared by Valliant, W., Roscoe, W.E., and Ross, D. for IAMGOLD Corporation.

SENPLADES, 2009: Plan Nacional Para el Buen Viver: 2009-2013. Consejo Nacional De Planificacion, Republica Del Ecuador.

SGS Lakefield Research Limited, 2005: An Investigation into General Mineralogy and Liberated Gold Characterization of Nine Samples (MET QUIM #1-9) from the Quimsacocha Project, LR11035-001/LIMS# MI5012-MAY05, June 23, 2005.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 27-3 www.rpacan.com

SGS Lakefield Research Limited, 2005: An Investigation into Deportment Study of Gold in the High-Grade Composite from the Quimsacocha Project, LR11035-001 LIMS# MI5005- AUG05, August 18, 2005.

SGS Lakefield Research Limited, 2005: An Investigation into Quantification of Submicroscopic Gold in the Medium-Grade Composite from the Quimsacocha Project, LR11035- 001/MI5013AUG05, September 30, 2005.

SGS Lakefield Research Limited, 2006: An Investigation into the Recovery of Gold and Copper from Quimsacocha Project Samples, Project 11035-001 – Report 1, May 10, 2006.

SGS Lakefield Research Limited, 2007: An Investigation into the Recovery of Gold and Copper from Quimsacocha Project Samples, Project 11035-001 – Report 2, February 16, 2007.

SGS Lakefield Research Limited, 2008: A Deportment Study of Gold in the Master Composite Sample from the Quimsacocha Project, Project 11035-003, June 4, 2008.

SGS Lakefield Research Limited, 2008: Proposed Grinding System for the Quimsacocha Circuit Based on Small-scale Data, June 30, 2008.

SGS Lakefield Research Limited, 2008: An Investigation by High Definition Mineralogy into the Mineralogical Characteristics of the Master Composite from the Quimsacocha Project, Project CALR-11035-003, MI5039-MAR08 – Report No. 1, June 11, 2008.

SGS Lakefield Research Limited, 2008: An Investigation by High Definition Mineralogy into the Mineralogical Characteristics of a Pyrite Concentrate from the Quimsacocha Project, Project 11035-003, MI5010-JUL08 – Report No. 2, October 22, 2008.

SGS Lakefield Research Limited, 2009: A Mineralogy Study for PP1-PP4 Flot Concentrate Sample from IAMGOLD-Quimsacocha, Project 11035-006 MI5022-JAN09, February 22, 2009.

SGS Lakefield Research Limited, 2009: An Investigation into the Grindability Characteristics of a Single Sample from the Quimsacocha Deposit, Project 11035-007 – Final Report, April 24, 2009.

SGS Lakefield Research Limited, 2009: An Investigation into Flotation Testwork on a Master Composite Sample from the Quimsacocha Project, Project 11035-003 – Report #1, May 12, 2009.

SGS Lakefield Research Limited, 2009: An Investigation of the Production of a Copper-Gold Concentrate from Quimsacocha Ore for POX Pilot Plant Testing, Project 11035-006 – Final Report, May 12, 2009.

SGS Lakefield Research Limited, 2009: Evaluation of Grinding Systems for the Quimsacocha Project Based on Small-scale Data, Project 11035-008 – Report 4, May 19, 2009.

SGS Lakefield Research Limited, 2009: The Sulfide Mineralogical Characteristics of PP1-PP4 Flotation Concentrate Sample, Project 11035-006, June 3, 2009.

SGS Canada Inc., 2010: An Investigation of the Extraction of Gold, Silver and Copper from the Quimsacocha Deposit, Project 11035-003 & 006, June 2, 2010.

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SGS Canada Inc., 2014: An Investigation into Metallurgical Testwork on Samples from the Loma Larga Deposit, Project 14269-001 – Final Draft Report, April 15, 2014.

Sillitoe, R.H., 1999: Styles of High-Sulphidation Gold, Silver and Copper Mineralisation in Porphyry and Epithermal Environments. In Proceedings Pacrim Congress 1999, Bali Indonesia October 10-13, 1999.

Trabajo de Campo, Proyecto Mirador. Marzo-Abril del 2004. Terrambiente.

Tirira, D., 2001: Libro Rojo de los Maniferos del Ecuador. Simbioe, Quito.

Tirira, D.S., 1999: Mamiferos del Ecuador. Publicacion Especial 2. Museo de Zoologia, Centro de Biodiversidad y Amibente. Pontificia Universidad Catolica del Ecuador, Simbioe, Quito, Ecuador.

Universidad de Azuay, 2007: Caracterización territorial de la cuenca hidrográfica Fase 2 y Cartografía del Río Negro. Instituto de Estudios de Régimen Seccional IERSE.

University of Azuay, School of Biology. Propuesta Technica Para La Elaboracion De La Linea.

White, N.C., and Hedenquist, J.W., 1990: Epithermal Environments and Styles of Mineralization: Variations and Their Causes, and Guidelines for Exploration, II. In: J.W. Hedenquist, N.C. White and G. Siddeley (Editors), Epithermal Gold Mineralization of the Circum-Pacific: Geology, Geochemistry, Origin and Exploration, J. Geochem Exploration, 36: pp 445-474.

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28 DATE AND SIGNATURE PAGE

This report titled “Technical Report on the Loma Larga Project, Azuay Province, Ecuador” and dated August 29, 2016 was prepared and signed by the following authors:

(Signed & Sealed) “Jason J. Cox”

Dated at Toronto, ON August 29, 2016 Jason J. Cox, P.Eng. Principal Mining Engineer

(Signed & Sealed) “Kathleen Ann Altman”

Dated at Lakewood, CO August 29, 2016 Kathleen Ann Altman, Ph.D., P.E. Principal Metallurgist

(Signed & Sealed) “David M. Robson”

Dated at Toronto, ON August 29, 2016 David M. Robson, P.Eng., M.B.A. Senior Mining Engineer

(Signed & Sealed) “Katharine M. Masun”

Dated at Toronto, ON August 29, 2016 Katharine Masun, M.Sc., P.Geo. Senior Geologist

(Signed & Sealed) “Lindsay A. Robertson”

Dated at Sudbury, ON August 29, 2016 Lindsay A. Robertson, M.Sc., P.Geo. Environmental Manager, KCB

(Signed & Sealed) “Carlos A. Diaz”

Dated at Sudbury, ON August 29, 2016 Carlos A. Diaz, P.Eng. Civil Engineer, KCB

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 28-1 www.rpacan.com

29 CERTIFICATE OF QUALIFIED PERSONS

I, Jason J. Cox, P.Eng., as an author of this report entitled “Technical Report on the Loma Larga Project, Azuay Province, Ecuador”, prepared for INV Metals Inc., and dated August 29, 2016, do hereby certify that:

1. I am Executive Vice President, Mine Engineering, with Roscoe Postle Associates Inc. of Suite 501, 55 University Ave Toronto, ON, M5J 2H7.

2. I am a graduate of Queen’s University, Kingston, Ontario, Canada, in 1996 with a Bachelor of Science degree in Mining Engineering.

3. I am registered as a Professional Engineer in the Province of Ontario (Reg. #90487158). I have worked as a Mining Engineer for a total of 20 years since my graduation. My relevant experience for the purpose of the Technical Report is: • Review and report as a consultant on numerous mining operations and projects around the world for due diligence and regulatory requirements • Feasibility Study project work on many mining projects • Operational experience at three North American mines • Contract Co-ordinator for underground construction at an American mine

4. I have read the definition of "qualified person" set out in National Instrument 43-101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI 43-101.

5. I visited the Loma Larga Project from February 17 to February 20, 2014.

6. I have overall responsibility for this Technical Report. I am responsible for parts of Sections 15, 16, 18, 19, 21, 22, and 24, and I share responsibility with my co-authors for Sections 1, 2, 3, 25, 26, and 27 of the Technical Report.

7. I am independent of the Issuer applying the test set out in Section 1.5 of NI 43-101.

8. I have had no prior involvement with the property that is the subject of the Technical Report.

9. I have read NI 43-101, and the Technical Report has been prepared in compliance with NI 43-101 and Form 43-101F1.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 29-1 www.rpacan.com

10. At the effective date of the Technical Report, to the best of my knowledge, information, and belief, the Sections for which I am responsible in the Technical Report contain all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Dated this 29th day of August, 2016

(Signed & Sealed) “Jason J. Cox”

Jason J. Cox, P.Eng.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 29-2 www.rpacan.com

KATHLEEN ANN ALTMAN I Kathleen Ann Altman, P.E., as an author of this report entitled “Technical Report on the Loma Larga Project, Azuay Province, Ecuador”, prepared for INV Metals Inc., and dated August 29, 2016, do hereby certify that:

1. I am Principal Metallurgist and Director, Mineral Processing and Metallurgy with RPA (USA) Ltd. of Suite 505, 143 Union Boulevard, Lakewood, Co., USA 80228.

2. I am a graduate of the Colorado School of Mines in 1980 with a B.S. in Metallurgical Engineering. I am a graduate of the University of Nevada, Reno Mackay School of Mines with an M.S. in Metallurgical Engineering in 1994 and a Ph.D. in Metallurgical Engineering in 1999.

3. I am registered as a Professional Engineer in the State of Colorado (Reg. #37556) and a Qualified Professional Member of the Mining and Metallurgical Society of America (Member #01321QP). I have worked as a metallurgical engineer for a total of 36 years since my graduation. My relevant experience for the purpose of the Technical Report is: • Review and report as a metallurgical consultant on numerous mining operations and projects around the world for due diligence and regulatory requirements. • I have worked for operating companies, including the Climax Molybdenum Company, Barrick Goldstrike, and FMC Gold in a series of positions of increasing responsibility. • I have worked as a consulting engineer on mining projects for approximately 15 years in roles such a process engineer, process manager, project engineer, area manager, study manager, and project manager. Projects have included scoping, pre-feasibility and feasibility studies, basic engineering, detailed engineering and start-up and commissioning of new projects. • I was the Newmont Professor for Extractive Mineral Process Engineering in the Mining Engineering Department of the Mackay School of Earth Sciences and Engineering at the University of Nevada, Reno from 2005 to 2009.

4. I have read the definition of "qualified person" set out in National Instrument 43-101 (NI 43- 101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI 43-101.

5. I visited the Loma Larga Project from February 17 to February 20, 2014.

6. I am responsible for Sections 13 and 17, and I share responsibility with my co-authors for Sections 1, 2, 3, 25, 26, and 27 of the Technical Report.

7. I am independent of the Issuer applying the test set out in Section 1.5 of NI 43-101.

8. I have had no prior involvement with the property that is the subject of the Technical Report.

9. I have read NI 43-101, and the Technical Report has been prepared in compliance with NI 43-101 and Form 43-101F1.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 29-3 www.rpacan.com

10. At the effective date of the Technical Report, to the best of my knowledge, information, and belief, the Sections for which I am responsible in the Technical Report contain all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Dated this 29th day of August, 2016

(Signed & Sealed) “Kathleen Ann Altman”

Kathleen Ann Altman, P.E.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 29-4 www.rpacan.com

DAVID M. ROBSON I, David M. Robson, P.Eng., M.B.A., as an author of this report entitled “Technical Report on the Loma Larga Project, Azuay Province, Ecuador”, prepared for INV Metals Inc., and dated August 29, 2016, do hereby certify that:

1. I am a Mining Engineer with Roscoe Postle Associates Inc. of Suite 501, 55 University Ave Toronto, ON, M5J 2H7.

2. I am a graduate of Queen’s University, Kingston, Ontario, Canada, in 2005 with a Bachelor of Science degree in Mining Engineering.

3. I am registered as a Professional Engineer in the Province of Saskatchewan (Reg. #13601). I have worked as a Mining Engineer for a total of 10 years since my graduation. My relevant experience for the purpose of the Technical Report is: • Review and report as a consultant on mining operations and projects for due diligence and regulatory requirements • Engineering study (scoping study, PEA, PFS) project work on mining projects around the world • Operational experience as a Mine Engineer at underground mines

4. I have read the definition of "qualified person" set out in National Instrument 43-101 (NI 43- 101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI 43-101.

5. I have not visited the Loma Larga Property.

6. I am responsible for parts of Sections 15, 16, 18, 19, 21, and 22, and share responsibility with my co-authors for Sections 1, 2, 3, 25, 26, and 27 of the Technical Report.

7. I am independent of the Issuer applying the test set out in Section 1.5 of NI 43-101.

8. I have had no prior involvement with the property that is the subject of the Technical Report.

9. I have read NI 43-101, and the Technical Report has been prepared in compliance with NI 43-101 and Form 43-101F1.

10. At the effective date of the Technical Report, to the best of my knowledge, information, and belief, the Sections for which I am responsible in the Technical Report contains/contain all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Dated 29th day of August, 2016

(Signed & Sealed) “David M. Robson”

David M. Robson, P.Eng., M.B.A.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 29-5 www.rpacan.com

KATHARINE M. MASUN I, Katharine M. Masun, P.Geo., as an author of this report entitled “Technical Report on the Loma Larga Project, Azuay Province, Ecuador”, prepared for INV Metals Inc., and dated August 29, 2016, do hereby certify that:

1. I am a Senior Geologist with Roscoe Postle Associates Inc. of Suite 501, 55 University Ave Toronto, ON, M5J 2H7.

2. I am a graduate of Lakehead University, Thunder Bay, Ontario, Canada, in 1997 with an Honours Bachelor of Science degree in Geology and in 1999 with a Master of Science degree in Geology. I am also a graduate of Ryerson University in Toronto, Ontario, Canada, in 2010 with a Master of Spatial Analysis.

3. I am registered as a Professional Geologist in the Province of Ontario (Reg. #1583). I have worked as a geologist for a total of 15 years since my graduation. My relevant experience for the purpose of the Technical Report is: • Review and report as a professional geologist on many mining and exploration projects around the world for due diligence and regulatory requirements • Project Geologist on numerous field and drilling programs in North America, South America, Asia, and Australia • Experience with Gemcom block modelling

4. I have read the definition of "qualified person" set out in National Instrument 43-101 (NI 43- 101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI 43-101.

5. I visited the Loma Larga Project from February 17 to February 20, 2014.

6. I am responsible for Sections 4 through 12, 14, and 23 and I share responsibility with my co-authors for Sections 1, 2, 3, 25, 26, and 27 of the Technical Report.

7. I am independent of the Issuer applying the test set out in Section 1.5 of NI 43-101.

8. I have had no prior involvement with the property that is the subject of the Technical Report.

9. I have read NI 43-101, and the Technical Report has been prepared in compliance with NI 43-101 and Form 43-101F1.

10. At the effective date of the Technical Report, to the best of my knowledge, information, and belief, the Sections for which I am responsible in the Technical Report contains/contain all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Dated 29th day of August, 2016

(Signed & Sealed) “Katharine M. Masun”

Katharine M. Masun, M.Sc., MSA, P.Geo.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 29-6 www.rpacan.com

LINDSAY A. ROBERTSON I, Lindsay A. Robertson, P.Geo., as an author of this report entitled “Technical Report on the Loma Larga Project, Azuay Province, Ecuador” prepared for INV Metals Inc. and dated August 29, 2016, do hereby certify that:

1. I am the Environment Manager, Senior Environmental Scientist and Geochemist with Klohn Crippen Berger Ltd. at 101-1361 Paris Street, Sudbury, ON.

2. I am a graduate of the University of Guelph, Ontario in 2004 with a Bachelor of Science, Honours. I am a graduate of Laurentian University, Sudbury in 2007 with a Master of Science in Geology.

3. I am registered as a Professional Geoscientist in the Province of Ontario (Reg#2100). I have worked as an environmental scientist and geochemist for a total of 10 years since my graduation. My relevant experience for the purpose of the Technical Report is: • Environmental geochemistry; • Soil science; • Mine closure; • Permitting; and, • Environmental baseline studies.

4. I have read the definition of "qualified person" set out in National Instrument 43-101 (NI 43- 101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI 43-101.

5. I visited the Loma Larga Project on February 19, 2014.

6. I am responsible for Section 20 and I share responsibility with my co-authors for Sections 1, 2, 3, 25, 26, and 27 of the Technical Report.

7. I am independent of the Issuer applying the test set out in Section 1.5 of NI 43-101.

8. I have had no prior involvement with the property that is the subject of the Technical Report.

9. I have read NI 43-101, and the Technical Report has been prepared in compliance with NI 43-101 and Form 43-101F1.

10. At the effective date of the Technical Report, to the best of my knowledge, information, and belief, the Sections for which I am responsible in the Technical Report contains/contain all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Dated 29th day of August, 2016

(Signed & Sealed) “Lindsay A. Robertson”

Lindsay A. Robertson, M.Sc., P.Geo

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 29-7 www.rpacan.com

CARLOS A. DIAZ COBOS I, Carlos A. Diaz, P.Eng., as an author of this report entitled “Technical Report on the Loma Larga Project, Azuay Province, Ecuador” prepared for INV Metals Inc., and dated August 29, 2016, do hereby certify that:

1. I am a Civil Engineer with Klohn Crippen Berger at Unit 101, 1361 Paris Street, Sudbury, ON, P3E 3B6.

2. I am a graduate of Universidad Pontificia Bolivariana, Bucaramanga, Colombia, in 2001 with a Bachelor of Engineering in Civil Engineering. I am also a graduate of University of Toronto, ON, Canada, in 2005, with a Master of Applied Science.

3. I am registered as a Professional Engineer in the Province of Ontario (Reg. #100191866). I have worked as a Civil Engineer for a total of 11 years since my graduation. My relevant experience for the purpose of the Technical Report is: • Review and report as a consultant on several operational and closed tailings facilities for due diligence and regulatory requirements. • Prefeasibility Study project work for mining projects in Romania and Mauritania. • Prefeasibility and Feasibility Studies for rehabilitation of dams and water management structures associated with tailings storage facilities around the world. • Engineering support during implementation and construction phases of projects.

4. I have read the definition of "qualified person" set out in National Instrument 43-101 (NI 43- 101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI 43-101.

5. I have not visited the Loma Larga Project.

6. I share responsibility as a co-author of Section 18 of the Technical Report.

7. I am independent of the Issuer applying the test set out in Section 1.5 of NI 43-101.

8. I have had no prior involvement with the property that is the subject of the Technical Report.

9. I have read NI 43-101, and the Technical Report has been prepared in compliance with NI 43-101 and Form 43-101F1.

10. At the effective date of the Technical Report, to the best of my knowledge, information, and belief, the Sections for which I am responsible in the Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

Dated 29th day of August, 2016

(Signed & Sealed) “Carlos A. Diaz”

Carlos A. Diaz Cobos, P.Eng.

INV Metals Inc. – Loma Larga Project, Project #2612 Technical Report NI 43-101 – August 29, 2016 Page 29-8