Concordia Resource Corp. Ebende Project Democratic Republic of Congo

NI 43-101 Independent Technical Report

Prepared By The MSA Group (Pty) Ltd for: Concordia Resource Corp.

Prepared By: Dr Brendan Clarke PrSciNat, MGSSA Michael Lynn PrSciNat, FGSSA

Effective Date: 27 September 2013 Report Date: 16 October 2013

IMPORTANT NOTICE

This report was prepared as a National Instrument NI 43-101 Technical Report for Concordia Resource Corp.(CCN) by The MSA Group (Pty) Ltd (MSA), South Africa. The quality of information, conclusions and estimates contained herein is consistent with the level of effort involved in MSA’s services, based on: i) information available at the time of preparation, ii) data supplied by outside sources, and iii) the assumptions, conditions, and qualifications set forth in this report. This report is intended for use by CCN subject to the terms and conditions of its contract with MSA. Except for the purposes legislated under Canadian provincial securities law, any other uses of this report by any third party is at that party’s sole risk.

Table of Contents

1 SUMMARY ...... 1 1.1 Introduction ...... 1 1.2 Property Location and Description ...... 1 1.3 Property Ownership ...... 3 1.4 Geology ...... 3 1.5 Exploration Model ...... 3 1.6 Status of Exploration ...... 4 1.7 Conclusions and Recommendations ...... 4 1.7.1 Risks ...... 5 1.7.2 Recommendations ...... 5 2 INTRODUCTION ...... 7 2.1 Scope of Work ...... 7 2.2 Principal Sources of Information ...... 7 2.3 Qualifications, Experience and Independence ...... 8 3 RELIANCE ON OTHER EXPERTS ...... 9 4 PROPERTY DESCRIPTION AND LOCATION ...... 11 4.1 Location ...... 11 4.2 Mineral Tenure, Permitting Rights and Agreements ...... 14 4.2.1 Summary of the DRC Mining Code, Taxes and Royalties ...... 17 4.2.2 Terms of the current Joint Venture between CCN and HPX ...... 20 4.3 Environmental Liabilities and Legislation ...... 21 4.4 Surface Rights and Access Rights ...... 21 5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ...... 22 5.1 Accessibility ...... 22 5.2 Climate ...... 22 5.3 Physiography and Vegetation ...... 24 5.4 Infrastructure and Local Resources ...... 24 6 HISTORY ...... 25 6.1 Bugeco / De Beers JV ...... 25 6.1.1 Xcalibur Regional Aeromagnetic Surveys ...... 26 6.1.2 Spectrem Airborne Electromagnetic Survey ...... 26

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6.1.3 Detailed Aeromagnetic Follow Up (DAF) Surveys ...... 28 6.1.4 Ground Magnetic Surveys...... 28 6.1.5 Ground Gravity Surveys ...... 29 6.1.6 Core Drilling ...... 29 6.2 Bugeco / Umbono JV ...... 29 6.2.1 Geochemical Stream Sampling ...... 29 6.3 Ambase / Swala JV ...... 32 6.4 Historical Exploration Expenditures ...... 32 7 GEOLOGICAL SETTING AND MINERALIZATION ...... 33 7.1 Regional Geology ...... 33 7.2 Local Geology ...... 35 7.2.1 Stratigraphy ...... 35 7.3 Property Geology ...... 44 7.4 Mineralization ...... 45 8 DEPOSIT TYPES ...... 46 8.1 Noril’sk Model...... 46 8.1.1 Noril’sk Deposit Type Exploration Methods ...... 50 9 EXPLORATION ...... 51 9.1 Geophysical Surveys ...... 51 9.1.1 Xcalibur Aeromagnetic Surveys ...... 51 9.1.2 Ground Geophysical Surveys ...... 54 9.2 Drilling ...... 55 9.3 Petrographic Analysis ...... 55 9.4 Exploration Expenditure ...... 56 10 DRILLING ...... 56 10.1 Core Logs ...... 58 11 SAMPLE PREPARATION, ANALYSES AND SECURITY ...... 60 11.1 Petrographic Samples ...... 60 12 DATA VERIFICATION ...... 61 13 MINERAL PROCESSING AND METALLURGICAL TESTING ...... 62 14 MINERAL RESOURCE ESTIMATES ...... 62 15 MINERAL RESERVE ESTIMATES ...... 62 16 MINING METHODS ...... 62 17 RECOVERY METHODS ...... 62 18 PROJECT INFRASTRUCTURE ...... 62

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19 MARKET STUDIES AND CONTRACTS ...... 62 20 ENVIRONMENTAL STUDIES, PERMITING AND SOCIAL OR COMMUNITY IMPACT . 62 21 CAPITAL AND OPERATING COSTS ...... 62 22 ECONOMIC ANALYSIS ...... 63 23 ADJACENT PROPERTIES ...... 63 24 OTHER RELEVANT DATA AND INFORMATION ...... 63 25 INTERPRETATION AND CONCLUSIONS ...... 64 25.1 Risks 64 26 RECOMMENDATIONS ...... 66 27 REFERENCES ...... 67

List of Tables

Table 1-1 Summary of Key Risks for the Ebende Project ...... 5 Table 1-2 Proposed Exploration Expenditure on the Ebende Project (USD) 1 ...... 6 Table 4-1 List of corner points of the Ebende Project properties 1 ...... 12 Table 4-2 Description of the Licences (PRs) comprising the Ebende Project ...... 14 Table 5-1 Climate data for Mbuji Mayi (data from NASA Langley Research Centre Atmospheric Science Data) ...... 22 Table 6-1 Exploration work undertaken during the Bugeco / De Beers Joint Venture between 2004 and 2008 within the current Ebende Project (See Figure 6-1) ...... 25 Table 6-2 Boreholes drilled by De Beers within the current Ebende Project (See Figure 6-1) ...... 29 Table 6-3 Historical Exploration Expenditures ...... 32 Table 7-1 Igneous rocks described from the Mafic-Ultramafic Plutonic and Volcanic sequence in the Ebende Project area ...... 37 Table 8-1 Mineral Resource estimate from the Noril’sk – Talnakh area (source: Noril’sk Nickel) 1 ...... 47 Table 9-1 Petrographic descriptions of rock samples from drill core (Thatcher, 2013) ...... 55 Table 9-2 2011 – July 2013 Exploration Expenditure on the Ebende Project (USD)...... 56 Table 10-1 List of Boreholes drilled within the Ebende Project by Ebende Resources ...... 56 Table 25-1 Summary of Key Risks for the Ebende Project ...... 65 Table 26-1 Proposed Exploration Expenditure on the Ebende Project (USD) ...... 66

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List of Figures

Figure 1-1 Locality Map of the Ebende Project...... 2 Figure 4-1 Locality Map of the Ebende Project...... 11 Figure 5-1 Access Map of Ebende Project (elevation data from SRTM 90m ) ...... 23 Figure 6-1 Historical exploration within the Ebende Project ...... 26 Figure 6-2 Resistivity maps from the airborne Electromagnetic Survey which covers parts of the Ebende Project...... 28 Figure 6-3 Results of geochemical assay of stream samples overlain on the aeromagnetic images ...... 31 Figure 7-1 ...... 33 Figure 7-2 Regional Geology of the Ebende Project with magnetotelluric (MT) profile ...... 34 Figure 7-3 Stratigraphy of the Ebende Project area ...... 35 Figure 7-4 Geological log of the Cretaceous sequence in borehole 173_X009 in PR10415 (Roberts, 2008) 39 Figure 7-5 Map of the local geology (modified from the 1:2.5 million scale geological map of DRC) ...... 41 Figure 7-6 ...... 42 Figure 7-7 Geological section interpreted across the Ebende Project (A” – B” on Figure 7-6) courtesy of Ebende Resources...... 43 Figure 8-1 Noril’sk west-east geological section (after Duzhikov et al. , 1992) ...... 48 Figure 8-2 Simplified stratigraphy of the Noril’sk Ni-Cu_PGE deposits (after Duzhikov et al., 1992)...... 49 Figure 9-1 Combined Aeromagnetic Surveys (2004 and 2012) of the Ebende Project showing the magnetic target known as the Ebende Structure ...... 52 Figure 9-2 3D Inversion modelling of the Ebende structure (de Wet, 2013) ...... 53 Figure 9-3 Map of the ground Gravity Survey done by Ebende Resources on PR10422 ...... 54 Figure 10-1 Map of boreholes drilled by Ebende Resources within the Ebende Project on PR10422 ...... 57 Figure 10-2 The core shed in Kabinda with core logging and core storage ...... 58 Figure 10-3 Core Logs from five holes drilled by Ebende Resources within PR10422 ...... 59 Figure 10-4 Types of basalt observed (NQ core approximately 47 mm in diameter) ...... 59

List of Appendices

Appendix 1 : Glossary of terms

Appendix 2 : Certificates of Qualified Persons

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1 SUMMARY

1.1 Introduction

The Ebende Project is an early stage exploration project based on a licence holding of approximately 5,400 km 2 in the Kasai Orientale and Katanga Provinces of the Democratic Republic of Congo (“DRC”). The MSA Group (Pty) Ltd (“MSA”) has been commissioned by Concordia Resource Corp. (“CCN”) to provide an Independent Technical Report on Ebende Resources Limited’s Cu, Ni, PGE and Au exploration project located in the Eastern Kasai and Katanga Provinces of the DRC.

The Ebende Project was originally a joint venture (“JV”) between Swala Resources PLC (”Swala”), a gold and base metals exploration and project development company with registered offices in London, and formerly known as Zambezi Gold PLC (20%), and HPX Techco (“HPX”) a subsidiary of High Power Exploration Inc. a privately owned base metals focused exploration company deploying proprietary in-house geophysical technology with registered offices in Delaware, USA (80%). The JV company is Ebende Resources Limited (BVI) (“Ebende Resources”). The 20% share in the project which is held by Swala is subject to a memorandum of understanding between Swala and Bureau of Geological Consultancy S.A. (“Bugeco”) an exploration and mining consulting company based in La Hulpe, Belgium, the terms of which provide for a 50/50 split in Swala’s share of the project with Bugeco. In January 2012, Swala was acquired by CCN.

CCN, Bugeco and HPX have an agreement whereby Bugeco and HPX will vend their stakes in Ebende Resources into CCN, taking shares as payment, thereby consolidating ownership of the the Ebende Project into CCN. The licences which comprise the Ebende Project are currently held by the JV company Ebende Resources.

1.2 Property Location and Description

The Ebende Project comprises 17 contiguous and near-contiguous "Permis de Recherches" (Exploration Licences; PRs) located in the Eastern Kasai and Katanga Provinces of the DRC. A map of the locality of the permits is shown in Figure 1-1.

The properties are remote and may be accessed in a good 4x4 vehicle by road from Lubumbashi, which has international airlinks, or Mbuji Mayi, which has domestic airlinks with Lubumbashi and Kinshasa.

The climate is tropical with a pronounced wet season between September and April.

The Project lies at elevations ranging between 610m and 1,150m (above sea level) along a section of the Lomami River, and very close to the major watershed between drainages flowing east and north into the upper Congo River (Lomami River and Lukashi Rivers) , and those flowing west and northwest into the Sankuru and lower Kasai Rivers (Lubumbi and Lubilanji Rivers). The topography is gently undulating with open grassland on the interfluves and dense riverine forest in the river valleys.

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The Project is currently isolated from public infrastructure. The main local towns at Mbuji Mayi, Mweu Ditu, Kabinda and Kabongo are without power, and generators are required. Most of DRC’s commercial power is hydroelectric, and there is potential to generate power from major rivers for large infrastructure projects. Water is plentiful as the rivers flow year round.

There is very little skilled labour available in DRC. However, the mining areas of Mbuji Mayi in the Eastern Kasai Province, and the Copperbelt in Katanga Province, may provide workers with experience in mining projects. Local labour for unskilled work is plentiful.

Figure 1-1 Locality Map of the Ebende Project

July 30 2013

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1.3 Property Ownership

The licences are all held in the name of Ebende Resources.

The current expiry dates range between 26 April 2014 and 24 July 2015. Two renewals are allowed for periods of five years each.

The validity of all of the licences has been reviewed by Emery Mukendi Wafwana and Associates, a DRC-based legal firm specialising in mining law, with offices in South Africa and USA. The opinion given by this legal review is that the licences are in good standing and there are no encumbrances on any of the licences.

1.4 Geology

The Ebende Project lies on the eastern margin of the Congo-Kasai Craton (Archaean) in an area largely covered by Lower Cretaceous sands and clays. These comprise part of the sedimentary sequence of the Congo Basin that covers much of the Congo-Kasai Craton and adjacent mobile belts.

The geological target within the Project is the “Ebende Structure”. The Ebende Structure was initially identified as a large, steeply dipping, dyke-like feature during geological mapping undertaken by Belgian geologists in the early part of the twentieth Century. However, its true geometry was only recognised when airborne magnetic surveys were flown by De Beers in 2005 during diamond exploration in the area. Evaluation of kimberlites discovered by De Beers suggested that they are not significantly diamondiferous. However, Ebende Resources has subsequently pursued exploration of the Ebende Structure.

The three dimensional shape of the structure has been elucidated by modelling (2D and 3D inversion modelling) of the magnetic data. An elongate synformal structure has been identified, and is interpreted to comprise basaltic lavas and mafic plutonic rocks which have been emplaced through the Neoproterozoic Mbuji Mayi Supergroup. The Mbuji Mayi Supergroup comprises a lower sequence of shales, and an upper sequence of limestone and dolomite which together form an open syncline which straddles the craton margin. The Ebende Structure is over 200 km long, and up to 30 km across, and extends in a north-northwesterly to northwesterly orientation, along the margin of the Congo-Kasai Craton, within the eastern limb of the Mbuji Mayi Supergroup syncline.

Geochemical stream sampling and grab sampling of outcropping rocks by De Beers also revealed the presence of unusual ultramafic rocks, and geochemical anomalies.

1.5 Exploration Model

The location of the Ebende Structure on the margin of the Archaean Congo-Kasai Craton, and the presence of a thick basalt sequence which was apparently extruded from feeders passing through a carbonate platform are geological features which are comparable to the giant Noril’sk PGE-Ni-

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Cu deposit in Russia. The Noril’sk deposits were emplaced as a feeder to the Siberian Trap continental flood basalt (“CFB”) sequence on the margin of the Siberian Craton in Russia.

The Ebende Project is a conceptual exploration project based on the premise that if the area shares similar geological features to the Noril’sk area, then there is potential to find comparable mineralization. The current exploration programme is designed to test the geological model, and to locate such mineralization, if it exists.

1.6 Status of Exploration

Ebende Resources has embarked upon an exploration programme designed initially to test the geological model, and determine whether copper and nickel massive sulphide mineralization is present in association with the Ebende Structure. Phase I of this work is in progress. It includes an extension to the airborne magnetic survey to further delineate the Ebende Structure. In addition, airborne electromagnetic data flown by De Beers in 2005, and ground-based gravity data produced by Ebende Resources, was used to site an initial drilling programme designed to investigate the stratigraphic sequence of the Ebende Structure, and also to intersect sulphide mineralisation. The drilling programme was cut short following delays. However, three holes were completed, and a further two holes were partially completed.

No significant mineralization has yet been identified within the Ebende properties. The drill core produced by Ebende Resources during the current programme contains local chalcopyrite with less common bornite and pyrite. Occasional arsenopyrite was also noted. No assays of the core have yet been done.

Once targets areas have been identified from the airborne geophysics, stream geochemical sampling, and ground gravity surveys, Ebende Resources intends to deploy the Typhoon TM system, a high powered Induced Polarisation geophysical system designed to locate massive sulphide mineralisation at depth.

1.7 Conclusions and Recommendations

The Ebende Project is an early stage exploration project based on a licence holding of approximately 5,400 km 2 in the Kasai Orientale and Katanga Provinces of DRC. There are currently no Mineral Resources or Mineral Reserves estimated in the Project area. Ebende Resources has embarked on an exploration programme designed to test the conceptual model, that if the area shares similar geological features to the Noril’sk deposit in Russia, then there is potential to find comparable mineralization within the Ebende Resources licences. It is the Qualified Person’s opinion that this conceptual model is worth investigating, and that the exploration activities within the Ebende Project to date have been executed to a high standard. The Project is managed by a team of highly experienced geologists who previously held senior positions in major mining companies. The exploration model remains conceptual and no significant mineralization has yet been identified.

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1.7.1 Risks

Risks for the Project are summarised in Table 1-1.

Table 1-1 Summary of Key Risks for the Ebende Project

Risk Risk Class Risk Mitigation/Comment

The model is incorrect, or there is no The exploration will proceed in a phased manner Technical significant mineralisation present to minimise exposure and reduce financial risk Exploration under cover and over a very large Regional geophysics and geochemical survey area makes location of mineralization Technical results will be used to focus exploration challenging Social licence to operate. Without this, the Maintain dialogue with local Chiefs and establish a local community may prevent development Social risk register and appropriate integrated of the project Environmental Health and Safety (EHS) system The shortage of skills may compromise the Skills are available outside DRC at high cost. Financial development of a future mine Develop local skills. Lack of infrastructure will inhibit project Consequence is high cost of operation and Technical execution increased delays when breakdowns arise Operate with emergency response plans and Health and Safety SHE appoint paramedics on the project where possible Maintain policy and establish and monitor work Environmental SHE protocols. Establish EMP to minimise environmental damage

1.7.2 Recommendations

The geological observations and interpretations over the Ebende Project have provided sufficient encouragement to recommend continued exploration to test the various geological interpretations. To this end, it is recommended that Ebende Resources completes the current exploration programme (Phase I) designed to test these models, and identify geochemical and geophysical anomalies which may be associated with massive sulphide deposits.

The budget for the proposed work programme Phases I and II is presented in Table 1-2.

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Table 1-2 Proposed Exploration Expenditure on the Ebende Project (USD) 1

2013 2014 Activity/Expense Total Phase I Phase II

Licence Fees 220,000

Geological Mapping 75,000 -

IP Survey (Typhoon) 330,000 350,000

Geochemical Stream Sediment 275,000 100,000 Sampling Ground Gravity survey 43,000 -

Drilling Programme - 1,200,000

Field Logistics 50,000 170,000

Overheads 50,000 130,000

Total (USD) 823,000 2,170,000 2,993,000

1The Phases of work referred to in these recommendations, do not correspond to the Stages referred to in the JV agreement between CCN and HPX as described in section 4.2.2 of this report. They are technical recommendations aligned to the objectives of the Ebende Project. Advancing to Phase II is contingent on positive results reported in Phase 1.

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2 INTRODUCTION

2.1 Scope of Work

The MSA Group (Pty) Ltd (“MSA”) has been commissioned by Concordia Resource Corp. (“CCN”) to provide an Independent Technical Report on the Ebende Resources Copper (Cu), Nickel (Ni), Platinum Group Element (PGE) and Gold (Au) exploration project (the Project) located in the Eastern Kasai and Katanga Provinces of the Democratic Republic of Congo (“DRC”).

The Ebende Project was originally a joint venture (JV) between Swala Resources PLC (”Swala”; a company which subsequently became a 100% owned subsidiary of CCN), a gold and base-metals exploration and project development company with registered offices in London, England, and formerly known as Zambezi Gold PLC (20%), and HPX Techco (“HPX”) a subsidiary of High Power Exploration Inc. a privately owned base metals focused exploration company deploying proprietary in-house geophysical technology with registered offices in Delaware, USA (80%). The JV company is Ebende Resources Limited (BVI) (“Ebende Resources”). The 20% share in the project which is held by Swala is subject to a memorandum of understanding (MOU) between Swala and Bureau of Geological Consultancy S.A. (“Bugeco”) an exploration and mining consulting company based in La Hulpe, Belgium, the terms of which provide for a 50/50 split in Swala’s share of the project with Bugeco. In January 2012, Swala was acquired by CCN.

CCN has announced an agreement whereby Bugeco and HPX will vend their stakes in Ebende Resources into CCN, taking shares as payment, thereby consolidating ownership of the Ebende Project into CCN as part of a reorganization of the company (Press Release: Concordia Resource Corp. to Implement Corporate Reorganization, October 1 st 2013). The licences (the Properties) which comprise the Ebende Project are currently held by the JV company Ebende Resources. The objective of this corporate re-organisation is to transform CCN into a company focused on high- technology exploration deploying proprietary geophysical technology and expertise.

This Independent Technical Report has been prepared to comply with disclosure and reporting requirements set forth in the Toronto Venture Exchange (TSX-V) Corporate Finance Manual, Canadian National Instrument 43-101 Standards of Disclosure for Mineral Projects, Companion Policy 43-101CP, Form 43-101F1 Technical Report (Form F1) of June 2011 and the CIM Definition Standards for Mineral Resources and Mineral Reserves adopted by the CIM Council in November 2010.

Unless otherwise stated, all monetary figures expressed in this report are in United States of America dollars (USD), all units are in metric measures, and the coordinate system used is geographic latitude and longitude expressed as decimal degrees with true North bearings. The datum for all maps is WGS84. A glossary of all technical terms and abbreviations is included in Appendix 1.

2.2 Principal Sources of Information

The Qualified Persons based their review of the Properties on information provided by Ebende Resources and CCN, along with technical reports by previously engaged consulting firms, and

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other relevant published and unpublished data. A listing of the principal sources of information is included in section 27 at the end of this Independent Technical Report. Site visits to the project were undertaken by Michael Lynn during the periods 27 May to 3 June 2012 and 14 to 18 August 2012. During the site visits, the properties were traversed and all the proposed Ebende Resources drill sites were visited prior to start of the drill programme. Access and logistical challenges were noted for the purpose of planning and budgeting of future work. There is no new material scientific or technical information about the properties since the last personal inspection, and no material change to the technical status of the Project has occurred. The Project remains at a very early stage, and no site visit has yet been undertaken by Dr Brendan Clarke. As soon as practical after the wet season ends and the project has become accessible, the Qualified Person responsible for preparing the technical report will complete a current inspection on the property. This is likely to be early Q3 2014.

The Qualified Persons have endeavoured, by making all reasonable enquiries, to confirm the authenticity and completeness of the technical data upon which the Independent Technical Report is based. A final draft of the report was also provided to CCN, along with a written request to identify any material errors or omissions prior to lodgement.

The Ebende Project is considered an early stage exploration project which is inherently speculative in nature. However, MSA considers that the properties have been acquired on the basis of sound technical merit. The properties are also generally considered to be sufficiently prospective, subject to varying degrees of exploration risk, to warrant further exploration and assessment of their economic potential, consistent with the proposed programmes.

Proposed exploration programme costs are summarised in Table 26-1. CCN has sufficient working capital to ensure at least two years of operation, which are committed to the exploration and development of the Ebende Project.

Ebende Resources has prepared staged exploration programmes, specific to the potential of the project, which are consistent with the budget allocations. The Project’s geological target is conceptual in nature and MSA considers that the properties have sufficient technical merit to justify the proposed programmes and associated expenditure.

The Independent Technical Report has been prepared on information available up to and including 27 September 2013. MSA has provided consent for the inclusion of the Independent Technical Report in the Information Circular for a meeting of CCN’s shareholders, and has not withdrawn that consent prior to lodgement.

2.3 Qualifications, Experience and Independence

MSA is an exploration and resource consulting and contracting firm, which has been providing services and advice to the international mineral industry and financial institutions since 1983. This report has been jointly compiled by Dr Brendan Clarke and Mr Michael Lynn.

Dr Clarke is a professional geologist with 13 years’ of exploration and evaluation experience, particularly focussed on PGE exploration in the Bushveld Complex of South Africa and disseminated and massive Ni sulphide deposits in Botswana, Burundi and South Africa. He is also

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an expert on gold exploration in West and East Africa as well as the Middle East, in addition to base, precious and ferrous mineral exploration in central and southern Africa. He is Head of Geology at MSA, a Member of the Geological Society of South Africa (MGSSA) and a Professional Natural Scientist (PrSciNat) registered with the South African Council for Natural Scientific Professions (SACNASP). Dr Clarke has the appropriate relevant qualifications, experience, competence and independence to act as a “Qualified Person” as that term is defined in National Instrument 43-101 (Standards of Disclosure for Mineral Projects). His certificate as a Qualified Person is attached in Appendix 2.

Mr Lynn is a professional geologist with 28 years’ exploration experience in various parts of Africa and India, including the DRC, where he spent two years as exploration manager for De Beers, and worked on the licenses currently covered by the Ebende Project. He is a Principal Consultant with The MSA Group, a Fellow of the Geological Society of South Africa, a member in good standing with the South African Council for Natural Scientific Professions (SACNASP) and a member of the Society of Economic Geologists (SEG). Mr Lynn has the appropriate relevant qualifications, experience, competence and independence to act as a “Qualified Person” as that term is defined in National Instrument 43-101 (Standards of Disclosure for Mineral Projects). His certificate as a Qualified Person is attached in Appendix 2.

Peer review has been undertaken by Mr Mike Robertson, a professional geologist with 25 years’ experience, the majority of which has involved the exploration and evaluation of gold and base metal properties throughout Africa, as well as the Middle East, Australia, Canada, Mexico, Russia and the CIS states. Mr Robertson is Principal Consultant (Gold and Base Metals) with MSA, a Professional Natural Scientist (PrSciNat) registered with the South African Council for Natural Scientific Professions, and an Associate Member of the South African Institute of Mining and Metallurgy (SAIMM) and a member of the Society of Economic Geologists (SEG). Mr Robertson has the appropriate relevant qualifications, experience, competence and independence to act as a “Qualified Person” as that term is defined in National Instrument 43-101 (Standards of Disclosure for Mineral Projects).

Neither MSA, nor the authors of this report, have or have had previously, any material interest in CCN or the mineral properties in which CCN has an interest. Our relationship with CCN is solely one of professional association between client and independent consultant. This report is prepared in return for professional fees based upon agreed commercial rates and the payment of these fees is in no way contingent on the results of this report.

3 RELIANCE ON OTHER EXPERTS

The authors have not independently verified, nor are they or MSA, qualified to verify the legal status of the licences that form the subject of this report and are reliant on the information provided by Ebende Resources. The present status of the Exploration Licences is based on copies of the licence documents provided by Ebende Resources to MSA, and an independent legal opinion provided in the document: “Legal opinion on the validity and compliance with the rules and regulations of the Democratic Republic of Congo regarding exploration permits acquired by Ebende Resources Ltd. as well as the prerogatives granted to the company as holders of these

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permits” by Emery Mukendi Wafwana and Associates SCP dated 23 September 2013. This report has been prepared on the assumption that the licences will prove lawfully accessible to CCN.

No warranty or guarantee, be it express or implied, is made by the Qualified Persons or MSA with respect to the completeness or accuracy of the legal aspects reported in this document in sections 4.1, 4.2 and 4.3. MSA does not undertake or accept any responsibility or liability whatsoever to any person or entity in respect of those parts of this document, or any errors in or omissions from it, whether arising from negligence or any other basis in law whatsoever.

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4 PROPERTY DESCRIPTION AND LOCATION

4.1 Location

Figure 4-1 Locality Map of the Ebende Project

July 30 2013. Basemap is the 1:2 million scale map of DRC published by UCL Geomatics of Belgium ISBN 2-87463-019-5 (2006)

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Table 4-1 List of corner points of the Ebende Project properties 1

Longitude 1 Latitude 1 PR Number Corner Points Degrees Minutes Seconds Degrees Minutes Seconds

A 25 7 30 -6 22 30 B 25 7 30 -6 21 30

10414 C 25 10 30 -6 21 30 D 25 10 30 -6 25 30

E 25 8 30 -6 25 30

F 25 8 30 -6 22 30 A 25 17 0 -6 34 0 10415 B 25 17 0 -6 32 0

C 25 30 0 -6 32 0

D 25 30 0 -6 34 0 A 25 20 30 -6 49 30 10417 B 25 20 30 -6 39 30

C 25 32 0 -6 39 30

D 25 32 0 -6 49 30 A 25 32 0 -6 49 30 10420 B 25 32 0 -6 39 30

C 25 43 30 -6 39 30

D 25 43 30 -6 49 30 A 25 20 30 -6 59 30 10421 B 25 20 30 -6 49 30

C 25 32 0 -6 49 30

D 25 32 0 -6 59 30 A 25 32 0 -6 59 30 10422 B 25 32 0 -6 49 30

C 25 43 30 -6 49 30

D 25 43 30 -6 59 30 A 25 32 0 -7 9 30 10424 B 25 32 0 -6 59 30

C 25 43 30 -6 59 30

D 25 43 30 -7 9 30 A 25 43 30 -7 9 30 10425 B 25 43 30 -6 59 30

C 25 55 0 -6 59 30

D 25 55 0 -7 9 30 A 25 32 0 -7 19 30 10426 B 25 32 0 -7 9 30

C 25 43 30 -7 9 30

D 25 43 30 -7 19 30

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Longitude 1 Latitude 1 PR Number Corner Points Degrees Minutes Seconds Degrees Minutes Seconds A 25 43 30 -7 19 30

B 25 43 30 -7 9 30

C 25 55 0 -7 9 30 D 25 55 0 -7 19 30 10427 E 25 50 0 -7 19 30 F 25 50 0 -7 18 30

G 25 45 0 -7 18 30 H 25 45 0 -7 19 30

A 25 36 30 -7 29 30

B 25 36 30 -7 19 30

10428 C 25 45 0 -7 19 30 D 25 45 0 -7 22 30

E 25 47 30 -7 22 30 F 25 47 30 -7 29 30

A 25 47 30 -7 29 30

B 25 47 30 -7 22 30

C 25 50 0 -7 22 30 10429 D 25 50 0 -7 19 30

E 25 59 30 -7 19 30 F 25 59 30 -7 29 30

A 25 43 30 -7 39 30

B 25 43 30 -7 29 30 10430 C 25 55 0 -7 29 30 D 25 55 0 -7 39 30

A 25 43 30 -7 49 30

B 25 43 30 -7 39 30 10431 C 25 55 0 -7 39 30 D 25 55 0 -7 49 30

A 25 43 30 -7 59 30

B 25 43 30 -7 49 30 10438 C 25 55 0 -7 49 30 D 25 55 0 -7 59 30

A 25 19 0 -6 39 30 B B 25 19 0 -6 34 0 10390 C 25 32 0 -6 34 0 D 25 32 0 -6 39 30 A 24 28 30 -6 0 30

B 24 28 30 -5 50 0 10391 C 24 39 0 -5 50 0 D 24 39 0 -6 0 30

1 WGS84 datum

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4.2 Mineral Tenure, Permitting Rights and Agreements

A description of the properties that comprise the Ebende Project is shown in Table 4-2. The area of the PRs is expressed as cadastral squares in the Licence documents which is a measure of an approximate square with dimensions of 30 seconds in the north-south and east-west directions. All PRs are defined by coordinates which are multiples of 30 seconds. One cadastral square is approximately equivalent to 0.87 km 2 within the Ebende Project, but this figure varies slightly with latitude. The total area of licences is approximately 5,400 km 2.

Table 4-2 Description of the Licences (PRs) comprising the Ebende Project

Permit Number Number cadastral Location Certificate Number Date Issued Minerals Included Expiry Date (PR) squares 1

10390 286 Province: Kasai CAMI/CR/5789/10 24/03/2010 Chrome, Cobalt, 24/07/2014 Oriental Copper, Zinc, District: Kabinda Nickel, Gold, Territory: Kabinda Platinum, Lead

10391 419 Province: Kasai CAMI/CR/5788/10 24/03/2010 Chrome, Cobalt, 24/08/2015 Oriental Copper, Zinc, District: Kabinda Nickel, Gold, Territory: Kabinda Platinum, Lead

10414 441 Province: Kasai CAMI/CR/5790/10 24/03/2010 Chrome, Cobalt, 26/09/2015 Oriental Copper, Zinc, District: Kabinda Nickel, Gold, Territory: Kabinda Platinum, Lead

10415 441 Province: Kasai CAMI/CR/5796/10 24/03/2010 Chrome, Cobalt, 29/09/2015 Oriental Copper, Zinc, District: Kabinda Nickel, Gold, Territory: Kabinda Platinum, Lead

10417 441 Province: Kasai CAMI/CR/5794/10 24/03/2010 Chrome, Cobalt, 29/09/2015 Oriental Copper, Zinc, District: Kabinda Nickel, Gold, Territory: Kabinda Platinum, Lead

10420 214 Province: Kasai CAMI/CR/5322/09 24/04/2009 Chrome, Cobalt, 26/04/2014 Oriental Copper, Zinc, District: Kabinda Nickel, Gold, Territory: Kabinda Platinum, Lead

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Permit Number Number cadastral Location Certificate Number Date Issued Minerals Included Expiry Date (PR) squares 1

10421 203 Province: Kasai CAMI/CR/5323/09 24/04/2009 Chrome, Cobalt, 26/04/2014 Oriental Copper, Zinc, District: Kabinda Nickel, Gold, Territory: Kabinda Platinum, Lead

10422 36 Province: Kasai CAMI/CR/5324/09 24/04/2009 Chrome, Cobalt, 26/04/2014 Oriental Copper, Zinc, District: Kabinda Nickel, Gold, Territory: Kabinda Platinum, Lead

10424 104 Province: Kasai CAMI/CR/5793/10 24/03/2010 Chrome, Cobalt, 24/07/2015 Oriental Copper, Zinc, District: Kabinda Nickel, Gold, Territory: Kabinda Platinum, Lead

10425 460 Province: Katanga CAMI/CR/5792/10 24/03/2010 Chrome, Cobalt, 27/052015 District: Haut- Copper, Zinc, Lomami Nickel, Gold, Territory: Kabongo Platinum, Lead

10426 460 Province: Katanga CAMI/CR/5550/09 21/09/2009 Chrome, Cobalt, 02/06/2014 District: Haut- Copper, Zinc, Lomami Nickel, Gold, Territory: Kabongo Platinum, Lead

10427 460 Province: Katanga CAMI/CR/5791/10 24/03/2010 Chrome, Cobalt, 24/07/2015 District: Haut- Copper, Zinc, Lomami Nickel, Gold, Territory: Kabongo Platinum, Lead

10428 460 Province: Katanga CAMI/CR/5787/10 24/03/2010 Chrome, Cobalt, 24/07/2015 District: Haut- Copper, Zinc, Lomami Nickel, Gold, Territory: Kabongo Platinum, Lead

10429 460 Province: Katanga CAMI/CR/5546/09 21/09/2009 Chrome, Cobalt, 02/06/2014 District: Haut- Copper, Zinc, Lomami Nickel, Gold, Territory: Kabongo Platinum, Lead

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Permit Number Number cadastral Location Certificate Number Date Issued Minerals Included Expiry Date (PR) squares 1

10430 460 Province: Katanga CAMI/CR/5547/09 21/09/2009 Chrome, Cobalt, 02/06/2014 District: Haut- Copper, Zinc, Lomami Nickel, Gold, Territory: Kabongo Platinum, Lead

10431 460 Province: Katanga CAMI/CR/5786/10 24/03/2010 Chrome, Cobalt, 24/07/2015 District: Haut- Copper, Zinc, Lomami Nickel, Gold, Territory: Kabongo Platinum, Lead

10438 441 Province: Kasai CAMI/CR/5327/09 24/04/2009 Chrome, Cobalt, 26/04/2014 Oriental Copper, Zinc, District: Kabinda Nickel, Gold, Territory: Kabinda Platinum, Lead

1 One cadastral square is equivalent to approximately 0.87km 2 within the Ebende Project area. The figure quoted for number of cadastral squares is derived from the licence documents, not calculated from the licence coordinates.

The licences were originally in the name of Ambase Exploration Africa sprl (“Ambase”, an acronym for Anglo American Base Metals Exploration) which held the licences under a previous joint venture with Swala (70%/30% in favour of Ambase). Swala's 30% was split 50/50 with Bugeco. In 2011, Ambase decided to reduce the scope of their JV by reducing the landholding by approximately 70%, returning full control of the licences which now constitute the Ebende Project to Swala. Consequently Swala arranged the current JV agreement with HPX to take over the expenditure commitment and undertake exploration over the Ebende Project. All licenses were transferred to Ebende Resources following the formation of this JV.

CCN, Bugeco and HPX have entered into an agreement whereby Bugeco and HPX will vend their stakes in Ebende Resources into CCN, taking shares as payment, and thereby consolidating ownership of the Ebende Project into CCN.

The validity of all of the licences was recently extended by removing diamond from the list of commodities for which they are valid. The consequence of this is that two renewals are allowed after periods of five years, rather than only two years.

Furthermore, an extension for the original licence expiry dates was granted by the Ministry of Mines for reasons classed as Force Majeure. The lawyers acting on behalf of Ebende Resources requested the Force Majeure because of delays experienced in receiving overflight authorisation for the airborne geophysical survey eventually flown by Ebende Resources in 2012. The delay in the subsequent ground work was several months in duration. As a result of the Force Majeure application, the expiry date of each licence was extended by periods of one year, 7 months and 5 days for ten licences (PR 10390, 10391, 10414, 10415, 10417, 10424, 10425, 10427, 10428 and

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10431), and by 7 months and 5 days for the remaining 7 licences (PR 10420, 10421, 10422, 10426, 10429, 10430 and 10438).

These changes are recorded in notices issued by the Ministry of Mines (Arrete Ministeriel numbers 0508 to 0522, 0524 and 0529) and dated 24 August 2013.

The validity of all of the licences has been reviewed by Emery Mukendi Wafwana and Associates, a DRC-based legal firm specialising in mining law with offices in South Africa and USA. The opinion given by this legal review is that the licences are in good standing, and are renewable twice for periods of 5 years each. There are no encumbrances on any of the licences.

4.2.1 Summary of the DRC Mining Code, Taxes and Royalties

The following summary of the current DRC mining legislation is taken from Bourassa and Turner (2013).

The DRC holds some of the world’s largest deposits of copper (10% of global reserves), cobalt (50% of global reserves) and columbite-tantalite (80% of global reserves), as well as significant reserves of gold, diamonds and other minerals. In the 1980s the extractive sector accounted for about 75% of total export earnings, 25% of the country’s GDP and 25% of fiscal revenue. However, political instability disrupted the country’s resource development. In 2005, the mining sector generated only USD 27 million in tax receipts (2.4 per cent of total fiscal revenue) and its contribution to GDP had declined to less than 1%. Since then, Congolese mining production has boomed, amounting to 13.4% in 2011 and projected to reach 20% in 2012 (final statistics not available at the time of publication). The majority of mineral production is generated by the private sector, with state-owned companies producing relatively small quantities.

The most active mining regions are Katanga Province (copper, cobalt and tin), Eastern Kasai Province (diamond), Orientale Province (gold) and North and South Kivu Provinces (gold, tin, and columbite-tantalite).

The mining industry is regulated through the Mining Code (enacted by Law No. 007/2002 of 11 July 2002) adopted in 2002 and its ancillary Mining Regulation, adopted in 2003. This core legislation includes environmental norms applicable to mining activities.

The main administrative entities in charge of regulating mining activities in the DRC are:

• the president of the Republic, who can enact mining regulations to implement the Mining Code and exercises his or her powers by decree made on his or her own initiative or on the proposal of the minister of mines, after having obtained the opinion of the directorate of geology or of the Mining Registry

• the minister of mines, who has, among other powers, jurisdiction over the granting, refusal and cancellation of mining rights, and exercises his or her powers by way of decree

• the Mining Registry, which is a public entity, under the supervision of the minister of mines and the minister of finance, whose role is to conduct administrative proceedings

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concerning the application for, and registration of, mining rights, as well as the withdrawal, cancellation and expiry of those rights

• the Directorate of Mines, which is responsible for inspecting and supervising mining activities with regard to safety, health, working practices, production, transport, sale and social matters

• the Department in Charge of the Protection of the Mining Environment, which has powers regarding the definition and implementation of the mining regulations concerning environmental protection and the technical evaluation of the mitigation and rehabilitation plan, the environmental impact study and the environmental management plan

The ownership of Mineral Resources is reserved for the State. Private parties may obtain exploration or mining licences relating to one or more specific minerals for which they can apply pursuant to a specific procedure.

The maximum area that can be granted for a Permis de Recherche (PR or exploration licence) or Permis d’Exploitation (PE or mining licence) is 400 km², while the maximum mining area that can be held by one person and his or her affiliated companies is 20,000 km².

The granting of mineral titles is based on a first come, first served principle: the applications for mineral rights for a given area are registered in the chronological order of their filing. Occasionally, the Minister of Mines may submit mining rights relating to a specific deposit to tender.

To maintain the validity of its mineral rights, the holder of a PR must commence exploration within six months, whilst the holder of a PE must commence development and construction works within three years from the date the title is issued, and pay the surface duty per cadastral square (or 30 second x 30 second square) relating to its title at the Mining Registry. If the holder fails to fulfil any of these obligations, the holder may have its right withdrawn.

A title holder must also comply with specific rules relating to protection of the environment, cultural heritage, health and safety, and construction and planning of infrastructure.

Holders of PRs may request transfer to a PE provided that they demonstrate the existence of an economically exploitable deposit.

Holders of mineral rights may request the renewal of their mining rights. To obtain a renewal:

• The holder of a PR must file a request containing inter alia a report on the exploration works during the validity period of the permit and the results obtained. For every renewal, the holder of a PR must relinquish 50% of the area of the licence, and the PR must remain a single contiguous area. If the Minister of Mines does not respond within 30 days, the renewal is deemed to be granted.

• The holder of a PE must file a Feasibility Study containing an update of the mineral reserves on the licence, updated environmental management plans, and establish the availability of the financial resources needed to continue the project. Unless the request is

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rejected with 30 days by the Minister of Mines, the renewal is deemed granted. Any refusal must be justified and is subject to appeal.

4.2.1.1 Transfer of Mineral Rights

A mineral right can be transferred wholly or partly, provided that the transferee assumes all of the holder’s obligations to the State in relation to the transferred mineral right. The transfer is subject to a cadastral and technical evaluation that will assess the financial capability of the intended transferee and the latter’s ability to assume the transferor’s obligations. Any refusal must be justified and is subject to appeal.

4.2.1.2 Surface Rights

According to the Land Law No. 73-021 of 1973, the State has the exclusive ownership of the land. The State can grant surface rights to private or public parties that have to be distinguished from mining rights since surface rights do not provide the right to exploit minerals and a mining right does not entail any surface occupation right over the surface. Consequently, any occupation of land preventing the surface-right holder from using the surface will entail the obligation for the holder of the mining rights to pay fair compensation. The Mining Code provides for judicial and arbitral recourses in the event of disputes.

4.2.1.3 Taxes and Royalties

The Mining Code provides for all the taxes, charges, royalties and other fees owed to the Treasury by mineral right holders in respect of their mining and exploration activities, to the exclusion of any other form of taxation. However, this principle does not prevent the tax agencies from often claiming additional taxes. The Mining Code provides a certain guarantee of stability in that the existing tax, customs, exchange and other benefits applicable to mining activities remain in effect for 10 years for existing mining title holders in the event that the Mining Code is amended.

Mining Royalty

A mining royalty is owed from the date of commencement of effective exploitation. The mining royalty is calculated on the value of sales made, less transport, assay, insurance and marketing costs. The rate of the mining royalty is 0.5 per cent for iron or ferrous metals, 2 per cent for non- ferrous metals and 2.5 per cent for precious metals.

Profit-Based Tax

A professional tax on benefits at the preferential Mining Code rate of 30 per cent (instead of the 35 per cent corporate tax rate) is levied on the net profits from exploitation determined in accordance with the accounting and tax legislation in force.

Tax on the Surface Area of Mineral Properties

A PR holder is liable for the tax on the surface area of properties at the rates of USD 0.02 per hectare for the first year, USD 0.03 for the second year, USD 0.035 for the third year and USD 0.04 for each subsequent year. A PE holder is liable for this tax at USD 0.04 per hectare for the first

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year, USD 0.06 for the second year, USD 0.07 for the third year and USD 0.08 for subsequent years.

A special surface duty, payable annually to the Mining Registry, is levied on the number of cadastral squares held by a title holder. This duty is meant to cover service and management costs of the Mining Registry and the Ministry of Mines.

For a PR, the annual duty per cadastral square amounts to USD 2.55 for each of the first two years, USD 26.34 for each subsequent year, USD 43.33 for each year of the first renewal period and USD 124.03 for each year of the second renewal period.

For a PE, the annual duty per square is USD 424.78 for an ordinary exploitation permit, USD 679.64 for a PE intended to mine tailings, and USD 195.40 for a small-scale PE.

Export Duties

Mineral title holders are fully exempted from all customs duties and other taxes, regardless of their nature, for exports in relation to the mining project. Remuneration fees for official services on exports are capped at 1% of the export value. However, the cap of 1% is not complied with by the various state agencies involved with export formalities and the total fees often amount to 2% or more of the export value. This uncertainty is a risk for mining projects in DRC.

4.2.2 Terms of the current Joint Venture between CCN and HPX

A Joint Venture (JV) agreement was reached in 2011 between HPX and CCN (through its 100% owned subsidiary Swala Resources PLC) whereby HPX would commit to funding exploration for an initial earn-in of 80%. The 20% share in the project which CCN holds is still subject to a prior Memorandum of Understanding (MOU) between CCN and Bugeco. The JV agreement was broken down into separate phases (referred to as Stages here to avoid confusion with the phases of work described in the Recommendations section of this report):

• Stage 1

Airborne and ground geophysical surveys and other exploration activities over the Ebende Project area in accordance with an Initial Work Programme and Budget of USD 3 million. Completion of Stage 1 would earn HPX an 80% interest in the Project. All subsequent work would be funded on a pro rata basis according to the JV partners’ 80%/20% holding in the Project.

• Stage 2

Proceed to NI 43-101 compliant Mineral Resource Estimate and accompanying Technical Report.

• Stage 3

Conduct Scoping, Prefeasibility and Feasibility Studies in respect of the identified Mineral Resources.

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If CCN is unable to fund its share of the cost of the Work Programme following the completion of Stage 1, HPX would fund the work, and CCN would dilute to a 15% shareholding in Ebende Resources. Similarly, if CCN were unable to fund its share of the Work Programme in Stage 3, HPX would fund the work and increase its shareholding a further 5% at the expense of CCN, resulting in CCN having a 10 % share in the Project.

At the end of Stage 3, CCN would have an option to buy back an interest in the project up to 20%. Following Stage 3, a standard dilution formula would apply in relation to CCN’s dilution. If CCN’s interest is diluted to 10% or less, its participation interest shall automatically be substituted by a 3% net profit interest (NPI) in the Project.

Technical management of the Work Programme is through a committee comprising highly experienced geologists and geophysicists from CCN/Bugeco (3) and HPX (4) who previously held senior positions in major mining companies such as De Beers, AngloGold Ashanti, Anglo American Corporation and Ivanhoe Mines.

4.3 Environmental Liabilities and Legislation

MSA is not aware of any environmental liabilities related to the Ebende Project. Considering the early stage of this exploration project and the limited extent of historical work, the potential environmental liabilities related to the surface exploration activities are considered low.

In order to carry out work on the ground the company is required to have completed its Environmental Impact and Remediation Plan (Permis de Attenuation et Rehabilitation, “PAR”). PARs for each of the PRs were prepared by DRC Green-Emec Sprl (“DRC Green”). The dates of acceptance of the PARs by the Ministry of Mines range between July and September 2010.

4.4 Surface Rights and Access Rights

Surface rights are owned by the State. Access rights must be negotiated with local inhabitants and village representatives. It is customary to approach local chiefs and to compensate local farmers for crop disturbances due to exploration activities on ground they would otherwise be cultivating. Ebende Resources has been careful to manage the relationship with local inhabitants through employment of local labour where possible, and by maintaining dialogue with the local chiefs.

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5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

5.1 Accessibility

The properties are remote and may be accessed in a good 4x4 vehicle by road from Lubumbashi, which has international airlinks, or Mbuji Mayi, which has domestic airlinks with Lubumbashi and Kinshasa (Figure 5-1). The road from Lubumbashi is tarred to a point near Likasi, but from there onwards, with the exception of a short stretch between Mwene Ditu and Mbuji Mayi, it is a gravel road which generally deteriorates northwards. The road trip from Lubumbashi is approximately 1,400 km and takes approximately four days during the dry season. It is likely to take much longer in the wet season. The road trip from Mbuji Mayi is approximately 150 km on a dirt track and the journey into the northernmost properties can usually be completed within one day. The journey from the north of the Project area to the south can usually be completed within one day. There is a ferry crossing over the Lomami River at Mani (Figure 4-1) which runs several times each day.

It is also possible to charter a light aircraft in Lubumbashi, and fly into the airstrip in Kabinda in the north of the Project. MAF (Mission Aviation Fellowship) operates light aircraft up to the size of a Cessna Grand Caravan (~2 hrs 30 minutes flying time). MAF follows US standards for aircraft maintenance and undertakes major services in Entebbe, Uganda. The payload for the trip with a Grand Caravan is approximately 600 kg when flying into Kabinda.

The airstrip at Kabinda is not currently suitable for larger aircraft. It is approximately 1,500 m long at an elevation of 800 m.

The airstrip at Kabongo, in the south of the project area, is also suitable for use by the MAF Cessna Grand Caravan charter (~2 hrs flying time).

5.2 Climate

The climate is tropical with a pronounced wet season between September and April. No data is available from within the project area, but has been obtained from Mbuji Mayi (Table 5-1).

Table 5-1 Climate data for Mbuji Mayi (data from NASA Langley Research Centre Atmospheric Science Data)

Jan Feb Mar Apr May June Jul Aug Sep Oct Nov Dec Avg Temp oC 23.97 24.33 24.29 24.43 26.41 26.98 27.32 28.41 27.07 24.84 23.78 23.67 Rainfall mm 203 140 174 172 56 10 7 56 114 143 226 180 Wet days 11.7 11.6 14.2 14.0 6.9 1.7 1.4 4.0 8.5 11.8 15.1 15.4

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Figure 5-1 Access Map of Ebende Project (elevation data from SRTM 90m )

July 30 2013

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5.3 Physiography and Vegetation

The Project lies at elevations ranging between 610m and 1,150m along a section of the Lomami River, and very close to the major watershed between drainages flowing east and north into the upper Congo River (Lomami River and Lukashi Rivers), and those flowing west and northwest into the Sankuru and lower Kasai Rivers (Lubumbi and Lubilanji Rivers).

The topography is gently undulating with open savannah grassland on the interfluves and dense riverine forest in the river valleys. A Julbernardia-Brachystegia complex dominates the savannah areas, whilst the river valleys contain species such as Anthocleista vogelli , Mitragyna ciliata and Phoenix reclinata (Thieme et al., 2005). The river valleys tend to be quite steeply incised because the rivers have cut into the soft sands and clays that cover most of the area to depths up to 100 m, to expose the underlying bedrock. At the head of river valleys, the sand cover is often eroded into prominent steep sided features known as cirques.

5.4 Infrastructure and Local Resources

The Project is currently isolated from public infrastructure. The main local towns marking the northern and southern border of the licences are Kabinda and Kabongo, with the closest population centres being Mbuji Mayi, 100 km to the west of Kabinda and Mwene Ditu, 240 km west of Kabongo. All the population centres in the region are without power, and generators are required. Most of DRC’s commercial power is hydroelectric, and there is potential to generate power from major rivers for large infrastructure projects. Water is plentiful as the rivers flow year round.

There is a rail link from Lubumbashi to Mwene Ditu, which then continues northwestwards to Kananga and onwards to a port on the Kasai River at Ilebo. The rail link is used to transport fuel and freight. It is unreliable, but generally runs on an approximately weekly schedule. Most staple food items and domestic supplies such as rice, palm oil, sugar, flour and paraffin are transported across the region by several hundreds of individuals with modified bicycles from the ports on Lake Tanganyika into the interior, and traded in the main towns.

There is also a rail link between Lubumbashi and Kabongo. However, the line is frequently unserviceable and trains are reported to run only every few weeks or even months. The line continues from Kabongo to the port at Kalemie on Lake Tanganyika.

There is a well-developed cell phone network, and cell phone coverage is available in the main towns of Kabinda and Kabongo in the north and south of the Project respectively.

The Project is still at an early stage and it is premature to consider the location of mining infrastructure such as potential tailings storage areas, potential waste disposal areas, heap leach pad areas, and potential processing plant sites.

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6 HISTORY

No formal exploration work is known prior to the work undertaken by Bugeco and its partners from 2004 onwards, during which several barren or poorly diamondiferous kimberlites were reported.

Apart from the current Cu-Ni-PGE-Au exploration target, artisanal diamond diggings were observed along the Lomami River and its tributaries downstream of the Project area. However, this has not been documented in detail. In addition, the mineral map of DRC reports pyrite occurrences associated with the mafic sequence at the top of the Mbuji Mayi Supergroup (Tervuren, 2005).

No other published information on mineral occurrences within the Ebende Project area is known.

Section 6.4 and Table 6-3 summarise the historical exploration expenditures.

6.1 Bugeco / De Beers JV

Bugeco was granted PRs in the area of what is now the Ebende Project in 2003. Bugeco subsequently entered into an option agreement with De Beers to explore the licences for diamonds. This agreement was superseded by a Heads of Agreement between Bugeco and De Beers which was signed in May 2005. The agreement appointed De Beers as the exclusive operator to conduct kimberlite exploration work over the project area. However, these licences were also valid for Cu, Co, Cr, Ni, PGE, Au, Pb and Zn.

Between 2004 and 2008, De Beers undertook exploration over the properties. A total of 10 kimberlites were found within the Bugeco PRs, but none of these occurs within the current Ebende Project area. The diamond potential of the kimberlites was considered low by De Beers and they decided to exit the JV in mid-2008. Bugeco subsequently relinquished the PRs. Table 6-1 and Figure 6-1 summarise the work done by De Beers that falls within the current Ebende Project licences.

Table 6-1 Exploration work undertaken during the Bugeco / De Beers Joint Venture between 2004 and 2008 within the current Ebende Project (See Figure 6-1)

Activity Description Quantum Year Geochemical Stream Sampling To recover kimberlitic indicator minerals 146 samples 2004 -5 Regional Aeromagnetic (AM) Survey Xcalibur - 250 m lines at altitude of 30 m N -S 1,962 km 2 2004 Airborne EM (Electomagnetic) Survey Spectrem - 150 m lines at altitude of 90 m N -S 400 km 2 2006 Detailed Aeromagnetic Follow Up Xcalibur – 100 m lines at altitude of 30 m N-S 75 km 2 2006 (DAF) Ground magnetic surveys 100 m lines x 10 m station spacing N -S 60 km 2 2007 -8 Ground gravity surveys 100 m lines x 20 m station spacing N -S unknown 2007 -8 Vertical holes to investigate geophysical Core Drilling 4 holes 2005-7 anomalies

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Figure 6-1 Historical exploration within the Ebende Project

The grey background is an image (total field) of the 2004 aeromagnetic survey flown by De Beers

The coloured blocks are airborne and ground magnetic follow up blocks surveyed by De Beers

July 30 2013

6.1.1 Xcalibur Regional Aeromagnetic Surveys

De Beers flew an aeromagnetic survey over the entire Bugeco ground holding in 2004. This area includes the northern licences of the Ebende Project. A map of the aeromagnetic coverage is shown in Figure 6-1. The survey was flown with the Xcalibur system (section 9.1.1) at a height of 30 m along lines 250 m apart.

6.1.2 Spectrem Airborne Electromagnetic Survey

Spectrem2000 is a time-domain electromagnetic survey system owned and operated by Anglo American Corporation. The system is flown in a modified Douglas DC-3 aircraft. The survey that lies partially within the current Ebende Project was flown by De Beers in 2006 as an experimental survey and was flown at an altitude of 90 m along N-S oriented lines 150 m apart. The objective was to try to identify kimberlite pipes. It was unsuccessful in identifying kimberlites, and no further surveys were flown in the area.

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Electromagnetic prospecting methods make use of an alternating magnetic field established by passing an alternating current through a coil, (or along a long wire). The field is measured with a receiver consisting of a sensitive electronic amplifier and meter or potentiometer bridge. The frequency of the alternating current is chosen such that a small eddy-current field is induced in the ground (in accordance with Faraday’s law).

If the source and receiver are brought near a more conductive zone (such as a subsurface occurrence of massive sulphides), stronger eddy currents may be caused to circulate within it and an appreciable secondary magnetic field will thereby be created. Close to the conductor, this secondary or anomalous field may be compared in magnitude to the primary or normal field (which prevails in the absence of conductors), in which case it can be detected by the receiver. Different configurations of transmitter and receiver may be used for different applications.

In the Spectrem2000 system, the transmitter coil is vertical, whilst the receiver coil has both horizontal and vertical axes. The separation between the transmitter and receiver is nominally 41 m (vertical) and 121 m (horizontal), with a transmitter loop area of 420 m 2.

Eight ‘windows’ are generated corresponding to different frequencies, which effectively provide information on the conductivity (or resistivity) of rocks at progressively deeper depths; the lower the frequency, the deeper the penetration and the lower the resolution.

The survey results showed conductive and resistive rocks at depth, with structural discontinuities between (Figure 6-1 and Figure 6-2).

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Figure 6-2 Resistivity maps from the airborne Electromagnetic Survey which covers parts of the Ebende Project

Nos 1-8 indicate progressively deeper penetration and lower resolution

September 30 2013

6.1.3 Detailed Aeromagnetic Follow Up (DAF) Surveys

During June 2006, Detailed Aeromagnetic Follow Up (DAF) was conducted over anomalies selected from the regional aeromagnetic survey to identify drill targets. A total of approximately 75 km 2 of these surveys occur within the current Ebende Project (Figure 6-1 and Table 6-1).

6.1.4 Ground Magnetic Surveys

De Beers surveyed four large ground magnetic blocks within the current Ebende Project between 2007 and 2008 over a total area of 60 km 2. The surveys were conducted over targeted areas which were considered particularly prospective for kimberlites and were designed to identify drill targets. A total of 60 km2 was surveyed over these anomalies with 100 m lines spacing and 10 m stations spacing (Table 6-1 and Figure 6-1).

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6.1.5 Ground Gravity Surveys

De Beers undertook ground gravity surveying over areas within the Bugeco JV. However, the location and results of these surveys are not available.

6.1.6 Core Drilling

De Beers drilled 43 targets between 2005 and 2008, including four holes drilled on the Ebende Project licences. Two drill rigs were used to drill the boreholes; a Hydracore Gopher, and a Sonic Prospector. Both are man-portable core drilling rigs with limited capacity.

The De Beers Standard Operating Procedures (SOPs) are not available to MSA. However, the drill cores were collected and sent to a core storage and logging facility situated in Kananga. The cores have not been kept, but are not considered material to the current Ebende Project given the exploration programme was targeting the identification of diamond bearing lithologies. The boreholes were not surveyed, and would not be incorporated into any future Mineral Resource estimate.

Boreholes drilled within the Ebende Project are summarised in Table 6-2 and shown in Figure 6-1.

Table 6-2 Boreholes drilled by De Beers within the current Ebende Project (See Figure 6-1)

DRILLED BY TARGET 1 METHOD EOH DEPTH EOH LITHOLOGY YEAR DIP AZIMUTH LONGITUDE LATITUDE DE BEERS 173_X009 CORE 92.0 BRECCIA 2005 -90 0.0 24.62968 -6.17427 DE BEERS 158_X017 CORE 32.5 DOLERITE 2006 -90 0.0 24.49548 -5.94372 DE BEERS 158_X032 CORE 121.0 DOLERITE 2006 -90 0.0 24.49548 -5.94372 DE BEERS 174_X081 CORE 69.0 SAND 2007 -90 0.0 25.17187 -6.36927 Lat/Long coordinates are based on the WGS84 datum

6.2 Bugeco / Umbono JV

6.2.1 Geochemical Stream Sampling

In 2007, Bugeco signed an agreement with Umbono Financial Services Pty Ltd (“Umbono”) to analyse the fine fraction (<0.5 mm) of stream samples collected by De Beers within the De Beers JV. A total of 948 samples were assayed as part of this programme, of which 146 fall within the current Ebende Project area.

The <0.5 mm from the heavy mineral stream sediment samples was submitted for geochemical assay at ALS Chemex in Johannesburg. The sample results with respect to V, Ni, Cu, Cr and Pb-Zn are presented in Figure 6-3.

It should be noted that the sampling survey was not designed to locate geochemical anomalies, but rather to recover kimberlitic indicator minerals. The sampling medium was the coarsest

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available sediment in heavy mineral trapsites. This is not usually the best medium to sample for geochemical assay, because relatively little very fine material accumulates with the coarsest and heaviest particles in a stream channel. Furthermore, a large portion of the Project area is underlain by a transported cover of Cretaceous sediments, which makes conventional geochemical sampling ineffective.

Despite these limitations, it is notable that almost all elements provide an anomalous response within licence PR10930. No significant Pt, Pd or Au anomalies were reported with respect to ppb values (the highest assays reporting 5.7 ppb, 31 ppb and 5 ppb respectively). However, most of the highest assays for these metals were also reported within licence PR10930. The magnetic target is inferred to be relatively shallow in this area (based on modelling done by De Beers), and it is possible that the anomalous values have simply identified an area of good outcrop close to the Lomami River and its confluence with the Lubangule River (Figure 4-1).

The questionable quality of the sampling with respect to geochemical mapping purposes means that the results may not be definitive. It is recommended that further geochemical sampling is undertaken in areas where the Cretaceous cover has been stripped, and that the survey be designed specifically for geochemical assay.

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Figure 6-3 Results of geochemical assay of stream samples overlain on the aeromagnetic images

July 30 2013

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6.3 Ambase / Swala JV

In 2009, Ambase was granted PRs which included the current Ebende Project PRs in a JV with Swala Resources PLC (Figure 6-1). Between 2009 and 2011, Ambase did some preliminary geological exploration work over the southern permits, but no work was recorded over the northern permits which now constitute the Ebende Project. In 2011, Ambase withdrew from the JV and returned the northern permits (what is now the Ebende Project) to Swala.

Swala subsequently entered into a JV with HPX to investigate the magnetic feature identified from the De Beers aeromagnetic survey in 2004. Subsequent work has been undertaken under this JV.

6.4 Historical Exploration Expenditures

Table 6-3 lists the historical expenditures on the Project area. Note that these expenditures do not all apply exclusively to the currently licence area as the Ebende Project comprises 17 of the 23 licences historically held by Ambase. Current Expenditures (2011 onwards) are listed in section 9.4.

Table 6-3 Historical Exploration Expenditures

Year Exploration Entity Major Activities Expenditure 2004 Bugeco/De Beers JV Regional aeromagnetic survey USD 200,000 1 2005 Bugeco/De Beers JV Stream sampling, discovery drilling USD 546.040 2006 Airborne and ground geophysical follow up Bugeco/De Beers JV USD 3.988,013 and discovery drilling 2007 Airborne EM survey, ground geophysical Bugeco/De Beers JV USD 4,080,293 follow up and discovery drilling 2008 Bugeco/De Beers JV Discovery drilling, evaluation drilling USD 1,961,914 2007 Bugeco/ Umbono JV Geochemical analysis of stream samples USD 100,000 2 2010 Bugeco/Ambase JV Maintenance of licenses USD 38,752 2011 Bugeco/Ambase JV Maintenance of licenses USD 453,063 3 Total expenditure to mid -2011 USD 11,3 68,075 Note that not all of these expenditures can be regarded as attributable to the Ebende Project because the license holdings at the time of the expenditures were not the same as the current Ebende Project. 1 Estimate of airborne survey cost. 2 This is MSA’s estimate of the cost of maintaining the licenses and analysing, reporting and interpreting the geochemical assays. No record of actual expenditure is available. 3 This figure is inflated by expenditure by Ambase on licenses outside the Ebende Project, but allocated across Ambase’s entire licence holding at the time.

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7 GEOLOGICAL SETTING AND MINERALIZATION

7.1 Regional Geology

Figure 7-1

Geological Architecture of Central and Southern Africa (from Begg et al , 2009)

The Ebende Project is shown as a red circle on the eastern margin of the Congo Craton.

July 30 2013

The sub-Cretaceous geological structure in the vicinity of the Ebende Project was investigated by De Beers (unpublished data) using a Magnetotelluric (MT) survey in 2007. MT is an electromagnetic geophysical method of imaging the Earth's subsurface by measuring natural variations of electrical and magnetic fields at the Earth's surface. Investigation depth ranges from 300 m below ground by recording higher frequencies down to 10,000 m or deeper with long- period soundings. In the De Beers survey, long period soundings were used primarily to identify the craton margin (which is important in diamond exploration). However, the survey also identified conductive shallow sedimentary sequences including the base of the Mbuji Mayi Supergroup (Figure 7-2).

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Figure 7-2 Regional Geology of the Ebende Project with magnetotelluric (MT) profile

Geology from the 1:2.5 million geological map of DRC, MT data and interpretation from De Beers (unpublished)

July 30 2013

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7.2 Local Geology

7.2.1 Stratigraphy

Figure 7-3 Stratigraphy of the Ebende Project area

Avg Stratigraphy Lithology Thickness Intrusives Lithology Extrusives Lithology (m)

Polymorphic sandstone and aeolian sands >30 Kalahari Gp ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ UNCONFORMITY ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ C1/C2 Congo Basin Alluvial Sands and Clays >120 (Lower Cret.) Kimberlite Kimberlite pipes

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~UNCONFORMITY~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ Condensed Karoo Sequence Glacial - Marine Shale - Marine and Karoo SG? >100? Alluvial Sands - Aeolian Sands ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ UNCONFORMITY ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Dykes and Sills Gabbro, dolerite Lavas Basalt, Picrite

5 Grey limstones with stromatolites 17.5 4 Brecciated grey limestones with stromatolites 24.0 BIIe 3 Pink limestones 11.0 2 Grey limestones, grey to pink dolostones 15.0 1 pink to grey shaly to calcareous dolostones 13.5 3 Grey cherty dolostones with cherts and pink shaly dolostones 343.0 BIId 2 Grey dolostones, shaly dolostones and dolomitic limestones 42.0 1 Shales with cherts 15.0 8 Darl shales, green to purple shaly dolostones 24.0 7 Grey dolostones with stromatolites 5.0 6 Dark shales, grey shaly dolostone 27.0 5 Grey dolostones with stromatolites 25.0 BIIc 4 Dark shales, grey shaly dolostone 12.5 3 Grey dolostones with stromatolites 88.0 2 Dark shales, grey shaly dolostone 21.0

Upper Mbuji Mayi Group Mayi Mbuji Upper 1 Grey dolostones with stromatolites 89.0 5 Dark cherty dolostone, shaly dolostones 25.0 4 Shaly calcareous dolostones 23.0 BIIb 3 Polygenetic conglomerates 19.0 2 Shaly dolostones and calcareous dolostones (sometimes brecciated) 39.0 Mbuji Mayi Supergroup Mayi Mbuji 1 Grey cherty dolostone 9.0 BIIa 1 Grey dolostones with stromatolites 105.0 2 Grey pink feldspathic psammites and shaly dolostones 27.5 BIe 1 Grey to pink dolostones with galena 25.5 2 Red shales and shaly psammites with grey calcareous dolostones (local) 28.0 BIE 1 Pink to brown shales and grey dolostones 31.5 2 Quartzites 308.0 BId 1 Red sandy psammites. Occasionally dolomitic variable 2 Red shales and shaly psammites 180.0 BIc 1 Conglomerate variable BIb 1 Basal conglomerate and sandstone 17.0

Lower Mbuji Mayi Group Mayi Mbuji Lower BIa 1 Shales and quartzites (local) 500-1500 ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ UNCONFORMITY ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

Archaean Basement (Kasai Lomami Complex) Gneiss \ Kibaran Mobile Belt granite and schists

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The stratigraphy of the area has been documented in the 1:2.5 million geological map of DRC (Lepersonne, 1974) and boreholes drilled in the area by De Beers during exploration between 2005 and 2008 (Delpomdor et al. , 2013) and is presented in Figure 7-3.

7.2.1.1 Congo-Kasai Craton (Archaean)

The Congo-Kasai Craton comprises a highly metamorphosed crystalline basement, largely buried beneath the Neoproterozoic Mbuji Mayi Supergroup, and Mesozoic–Cainozoic cover of the Congo Basin. The exposed area comprises extensive tracts of NE-ENE-trending gneiss-migmatite (2.65 Ga) and calc-alkalic granites (2.59 Ga) of the Dibaya Complex, and gabbro-norite, charnockite and older gneiss remnants (3.4 Ga) of the Kasai-Lomami Complex. Extensive granulite facies metamorphism occurred at 2.82 Ga (Goodwin, 1996).

7.2.1.2 Kibaran Mobile Belt (Mesoproterozoic)

The Kibaran Belt sensu lato refers only to the type area around the Kibaran Mountains in central Katanga Province, extending over an area of approximately 400 km x 145 km, and trending northwest (Tack et al. , 2010).

Two informal lithostratigraphic units separated by a disconformity have been defined within the Kibaran supracrustal metasedimentary sequence in the type area: the older Mitwaba Group and the younger Mulumbi Group (Kokonyangi et al. , 2004). The Mitwaba Group includes metapelitic rocks, with minor intercalations of quartzite. This supracrustal metasedimentary assemblage is intruded by gabbros and granites. The Mulumbi Group is made of: (1) the Kataba conglomerate containing pebbles from the underlying Mitwaba Group metasedimentary rocks and related orthogneisses; (2) quartzites with conglomerate intercalations; and (3) metapelites.

The Kibaran rocks do not outcrop within the Project area and are interpreted to be covered by the Mbuji Mayi Supergroup and younger rocks.

7.2.1.3 Mbuji Mayi Supergroup (Neoproterozoic)

The Mbuji Mayi sequence occurs as an open anticline and outcrops in two linear belts with a northwest-southeast trend parallel to the edge of the Congo Craton, which are separated by cover of Cainozoic sands and clays of the Congo Basin (Figure 7-5). The Mbuji Mayi sequence is weakly or unaffected by regional metamorphism. The Mbuji Mayi Supergroup is divided into a Lower and Upper Group. The Lower Mbuji Mayi Group is a mainly siliciclastic succession (~500 m) whilst the Upper Mbuji Mayi Group is a predominantly a carbonate sequence (~1,000m) with stromatolitic build-ups and black shales. U-Pb age determinations on detrital zircon grains retrieved from the lower arenaceous-pelitic sequence together with C and Sr isotopic data on carbonates from the upper dolomitic-pelitic sequence and an 40 Ar/ 39 Ar age determination on a dolerite intruding the sequence gives a Neoproterozoic depositional time frame between 1,174 ± 22 Ma and ca. 800 Ma (Delpomdor et al., 2013). The limestones are characterized by karst features. The western outcrop dips gently to the east at approximately 4 o. The eastern outcrop,

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east of Kabinda, appears as an open antiform comprising the same sequence as the west, but the sediments are folded with estimated maximum dips in the region of 30°.

The Mbuji Mayi sequence may be interpreted as a gradually deepening retrograde (fining-up) continental shelf sequence formed at the onset of rifting within the Rodinia Supercontinent. The basal sandstones reflect palaeo-river systems that incised a flat peneplained surface; the overlying sandstone-dolomite alternation represents a transgressive intertidal to subtidal setting, and the upper dolomites and limestones a restricted lagoonal setting.

7.2.1.4 Mafic-Ultramafic Volcanic-Plutonic Sequence (Neoproterozoic)

These rocks comprise the main exploration target within the Ebende Project (section 8.1).

The mafic rocks that occur as sills and dykes near the top of Mbuji Mayi sequence, and as lavas overlying the Mbuji Mayi sequence have not been stratigraphically named. It is not known whether the sequence is conformable with the underlying Mbuji Mayi Supergroup or whether there is an unconformity separating the two. However, the extrusion of basalts and intrusion of dolerite dykes suggests concomitant magmatism with continued opening of a rift system. The age of the rocks has not been dated by modern methods. K-Ar dating in the seventies constrained the age of the basalts at 930 Ma, which corresponds to the window defined by dating of the Mbuji Mayi Supergroup. They are therefore assumed to be only slightly younger based on the fact that they occur stratigraphically above (or at least near the top of) the limestones.

A number of rock types have been described. However, the stratigraphic sequence in which these rocks occur has not been documented. The lithologies identified to date are listed in Table 7-1.

Table 7-1 Igneous rocks described from the Mafic-Ultramafic Plutonic and Volcanic sequence in the Ebende Project area

Rock Types Reference Amygdaloidal basalt Thatcher (2013) ‘Lavas doleritiques’ Lap ersonne (1974) Basaltic andesite, porphyritic dolerite, trachyandesite, basalt, brecciated basalt, Anglo American Mineralogical report 0608/127 (unpubl.) picrobasalt ‘Komatiitic lavas’ (olivine -bearing spinifex De Beers (2004) (unpubl.) textured lavas) Dolerite De Beers borehole logs (2005 -2008) (un publ.)

According to the detailed petrographic analysis of core samples by Anglo American (Theron and Youlton, 2008), the basalts are continental tholeiites. The samples contain pyrrhotite, chalcopyrite, pyrite, bornite and covellite, but only in trace amounts. No Ni phases were identified, and because of the continental tholeiitic nature of the samples (i.e. they are more evolved than calc-alkaline basalts) they are to be considered more prospective for Cu than Ni. However, without some

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means of upgrading the tenor of metals (such as subaqueous hydrothermal circulation or later shearing and thrusting accompanied by meteoric fluid circulation) economic grades would not be achieved.

7.2.1.5 Karoo Supergroup

The Karoo Supergroup is a sequence of sedimentary rocks capped by basalts, the extrusion of which marked the onset of rifting which broke up Gondwanaland. Sedimentary rocks of the Karoo Supergroup range in age from Permian to Jurassic (approximately 300 Ma to 150 Ma) and are described in the geological map of DRC to the east of the Ebende Project (Figure 7-5) and from core holes drilled by De Beers to investigate geophysical targets to the east and west of the Ebende Project.

Glacial diamictite from the Lower part of the Karoo Supergroup is reported from a borehole between Mbuji Mayi and Gandajika, whereas fluvial sandstones from the upper part of the Karoo sequence are reported from a borehole approximately 100 km east of Kabinda. It is possible that the Karoo sediments are preserved in down-faulted blocks (Roberts, 2008).

7.2.1.6 Cretaceous Sands and Clays

Sands and clays of lower Cretaceous age cover large parts of the Project area along the southwestern side, which marks the south-eastern edge of the Congo Basin. The cover has been partially stripped along the north-eastern side of the Project, in the valley of the Lomami River and further east.

The Cretaceous sequence reaches over 100 m in thickness in parts of the Ebende Project area and has been studied from drill cores and exposures (Roberts, 2008). The study revealed considerable facies, provenance and thickness variations suggesting a complex depositional and stratigraphic history of the Congo Basin sediments, as well as post-depositional block faulting, which is probably related to the East African Rift system

The lower Cretaceous sequence records a progression from alluvial fan facies into fluvial sands and lacustrine sediments containing freshwater fossils including fish bones and bivalves. Figure 7-4 presents a geological log of the lower Cretaceous sequence intersected in borehole 173_X009 within PR10415. This vertical borehole was drilled by De Beers in 2005 to investigate a discrete magnetic anomaly thought to be associated with kimberlite. The location of the borehole is shown in Figure 6-1.

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Figure 7-4 Geological log of the Cretaceous sequence in borehole 173_X009 in PR10415 (Roberts, 2008)

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7.2.1.7 Kalahari Group

Isolated outliers of post-Cretaceous Kalahari Group sediments are preserved in some areas overlying the lower Cretaceous sediments at elevations above approximately 825 m. These comprise a basal siliceous unit known as the Grès Polymorph, overlain by reddish aeolian sandstones.

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Figure 7-5 Map of the local geology (modified from the 1:2.5 million scale geological map of DRC)

July 30 2013

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Figure 7-6

Interpreted map of the pre-Cretaceous geology (courtesy of Ebende Resources)

30 August 2013

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Figure 7-7 Geological section interpreted across the Ebende Project (A” – B” on Figure 7-6) courtesy of Ebende Resources

Legend as for Figure 7-4

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7.3 Property Geology

No detailed geology of the Ebende properties has been published due to the presence of the Cretaceous cover, which masks the underlying lithologies and structure. However, a geological model has been inferred by Ebende Resources on the basis of detailed geophysical data that has been acquired, limited surface mapping, and drillhole intersections reported by De Beers and Ebende Resources (section 9.1.1). The details of the geophysical data acquisition are presented in section 9.1. In this section, the geological interpretation of this data is presented. Figure 7-6 is an interpreted geological map of the Ebende Project properties with the Cretaceous cover removed.

A prominent magnetic structure consisting of a lower more magnetic unit overlain by a less magnetic unit was identified in the sequence, and in addition, layers of variable magnetic intensities are also present below and above these two units. Field follow-up and drilling indicated that the variable magnetic signals/responses are mainly caused by high Fe-tholeiitic basalts, varying in composition from picrobasalt, through basalt, basaltic andesite to trachyandesite as well as dolerite. Further east, ‘komatiitic basalts’ (olivine basalts exhibiting spinifex textures) have been identified in outcrops reported by De Beers (2004; Figure 7-6). The latest drilling indicates that the magnetic susceptibilities vary considerably with readings from virtually 0 to >117 x 10 -3 (SI units) determined with a handheld meter. This confirms the presence of a differentiated succession of CFB lavas in the upper portion of the Mbuji Mayi sequence.

This sequence is tentatively correlated with the Upper Roan or Mwashya Subgroups of the Katangan Supergroup in the Central African Copper Belt of DRC. The possible correlation is supported by the presence of volcaniclastics and gabbro sills at this stratigraphic position in the Katangan Supergroup in the Copperbelt and basaltic andesites at certain localities as well as gabbro/dolerite intrusions at other occurrences of the Pan African Neoproterozoic formations.

The airborne magnetic data reveals a large (~ 200 km x ~ 30 km) magnetic structure along the eastern margin of the Mbuji Mayi synclinal basin which has been named the Ebende Structure (Figure 7-5). Modelling by Ebende Resources suggests that the magnetic structure has a synformal shape. The structure drapes around the Congo Craton in a crescent shape with a north- northwest to northwest strike direction between Kabongo and Kabinda. No dip measurements are available and it is unclear whether the Ebende Structure is a lopolithic intrusion, or a synclinal fold. The eastern limb was originally mapped as a dyke in the geological compilation by Lepersonne (1974), implying that it is steeply dipping in that area. In the geological section (Figure 7-7) it is interpreted as a synform and the magnetic lavas are duplicated along the eastern edge of the basin by folding. The repetition of the synform in a northwesterly direction may be caused by changes in the plunge of the fold axis or by faulting cutting across the main Ebende Structure.

The sediments of the Mbuji Mayi Supergroup are interpreted to be tightly folded east of the magnetic structure, between it and the basin contact with the Kibaran basement. Lepersonne (1974) interpreted thrust faults along the eastern flank of the magnetic structure present at or near the western contact of the upper magnetic unit. The folding and possible thrusting are probably associated with the late Neoproterozoic closure of the Mbuji Mayi basin possibly during the Katangan orogenic episode.

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The Ebende Structure is intruded by three dykes, striking northwest which show no structural deformation features and are probably Jurassic (Karoo) in age.

7.4 Mineralization

No significant mineralization has yet been identified within the Ebende properties.

The drill core produced by Ebende Resources contains occasional chalcopyrite with less frequent bornite and pyrite. Occasional arsenopyrite was also noted. No assays of the core have yet been done.

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8 DEPOSIT TYPES

A number of exploration models have been postulated for the Ebende Project, including:

• A Lufilian Arc type sedimentary Cu-Co Copperbelt model in which mineralisation occurred during the closure of the sedimentary basin during tectonic collision (e.g. Amira P544, 2003). This model is based on the premise that the rocks of the Mbuji Mayi Supergroup are a similar age to the Katangan Sequence in southern DRC and were also affected by an advancing thrust front. Subsequent phases of mineralization may have occurred as the thrust faults deformed the sediments, introducing more fluids which could have been trapped by favourable fault/stratigraphic relationships as is an accepted model for the Lufilian Arc.

• Rift-related igneous deposits, such as the Noril’sk deposit in Russia, in which mineralisation occurred during development of the Mbuji Mayi Supergroup basin and is associated with rift-related volcanics. Given the early stage of the project, and using available data, the geological parallels between Noril’sk and the Ebende Project are such that this is currently the favoured model. However, it should be noted that no significant mineralisation has been reported from the Ebende Project, and the comparison remains conceptual in nature. The comparisons include the following:

o The Ebende Project area contains a thick sequence of basaltic lavas. This has been demonstrated by drilling and petrographic analysis (section 9)

o The Ebende mafic sequence has been emplaced on the margin of an Archaean craton

o The Ebende mafic rocks were intruded into a pelitic and carbonate platform sequence (the Mbuji Mayi Supergroup)

8.1 Noril’sk Model

The favoured conceptual exploration model for the Ebende Project is based on the Noril’sk Ni- Cu-PGE deposits in Russia (Eckstrand and Hulbert, 2007). The Noril’sk deposits are the largest known Ni-Cu-Pd deposits in the world. The deposits were formed during the eruption of the Siberian Traps igneous province (STIP). The STIP erupted over one million cubic kilometres of lava, a large portion of it through a series of flat-lying lava conduits lying below Noril’sk and the Talnakh Mountains.

The mineralisation formed when the erupting magma became saturated in sulphur, forming globules of pentlandite, chalcopyrite, and other sulphides. These sulphides were then "washed" by the continuing torrent of erupting magma, and upgraded their tenor with respect to Ni, Cu, Pt, and Pd.

Peak production at the Norilsk-Talnakh mines was reached in the late 1980s, at around 4 million oz of palladium and 1 million oz of platinum annually. The most recent Mineral Resource estimate published by Noril’sk Nickel is from December 31, 2011 and is presented in Table 8-1. Note that there is no implication that a similar Mineral Resource will be defined within the Ebende Project.

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This Mineral Resource is quoted to indicate the type of deposit that is conceptualised in the Ebende Project. MSA has not independently verified the Mineral Resource estimate at Noril’sk and Talnakh.

Table 8-1 Mineral Resource estimate from the Noril’sk – Talnakh area (source: Noril’sk Nickel) 1

Ore Metal Grade Area tonnage Ni Cu Pd Pt Au 6PGM (Mt) % % g/t g/t g/t Total Talnakh field 1,354.697 0.57 1.12 3.04 0.86 0.19 4.08 Noril’sk - 1 25,802 0.33 0.45 4.24 1.67 0.15 6.30 Total 1,380,499 0.57 1.11 3.07 0.87 0.19 4.12 1 Dated 31 December 2011. The calculations were conducted in accordance with the principles of the Joint Ore Reserves Committee (JORC) Code of the Australasian Institute of Mining and Metallurgy, using terms and rules, developed in the course of regular reserves’ audit, performed at Noril’sk Nickel’s Russian deposits by Micon International Co Ltd. The Mineral Resource estimate has not been verified by MSA. No such Mineral Resource has been identified in the Ebende Project, and the Noril’sk Mineral Resource estimate is presented only to illustrate the conceptual target in the Ebende Project.

The Noril’sk Ni-Cu-PGE deposits are associated with the large Siberian flood basalt magmatic suite. In the Noril’sk area, the sedimentary strata form a gentle north–south-trending syncline. Intruded into this sequence are elongate, gently dipping sill-like mafic bodies that underlie the 3.5 km thick lava sequence. These are the units with which the mineralisation is associated (Figure 8-1), and they are considered to be feeders to the overlying volcanic rocks. All the mineralized sills lie within 7 km of the NNE trending Karayelakh Fault, which is thought to be part of the conduit system. The sills have thicknesses of a few tens of metres, lateral extents of a few hundred metres, and lengths of a few kilometres. They consist of a variety of layer-like gabbro-dolerite units (Figure 8-1). The lowermost unit consists of an olivine-free gabbro-dolerite contact facies overlain by coarser-grained taxitic olivine gabbro-dolerite, which passes upwards into picritic gabbro-dolerite. Olivine-free gabbro-dolerite and anorthosite units make up the upper portions of these bodies. The sills are enveloped by metamorphic aureoles of exceptional thickness (up to 200 m) and, hence, are considered to have been conduits for the passage of very large volumes of magma.

Three distinct types of Ni-Cu-PGE mineralisation occur in specific associations with the mineralized sills, and contribute to the total resources of the Noril’sk deposits.

Massive sulphide mineralisation occurs as flat-lying sheets and lenses at the base of the sills, in some cases protruding downward into the footwall rocks (Figure 8-1 and Figure 8-2). One such massive sulphide orebody attains a thickness of over 50 m and lateral dimensions of hundreds of metres. Some of the larger mineralised bodies display remarkable sulphide zonation, ranging from pyrrhotite dominated chalcopyrite-pentlandite assemblages in the outermost and lower

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parts, through progressively more copper-rich zones, to mainly Cu sulphides, chalcopyrite, cubanite, and mooihoekite together with pentlandite in the central upper parts (Stekhin, 1994). The latter can have up to 25% to 30% Cu, 3% to 6% Ni, 50 to 60 g/t Pt, and 60 to 200 g/t Pd. This zonation of sulphides is believed to result from fractionation in situ. The mechanism of early cumulate separation and basal segregation of a pyrrhotite-like iron sulphide leaves a Cu-PGE-rich supernatant liquid to crystallize last. This style of Ni and Cu-rich massive sulphide mineralisation has been the mainstay of Noril’sk production for much of the district’s history.

Copper breccia mineralisation in the form of semi-conformable sheet-like zones occupy the upper contacts of the sills with the overlying rocks (stringer-disseminated ores in Figure 8-2). The breccia comprises fragments of both the intrusion and wall rocks in a matrix of mainly massive sulphide. Sulphide stringers and disseminations accompany the breccias.

Disseminated sulphides occur as lenticular to tabular layers in picritic gabbro-dolerite units within the sills. The sulphides generally take the form of centimetre-size spheres of chalcopyrite, pentlandite, and pyrrhotite dispersed through the host gabbro-dolerite. This was the first mineralisation type mined at Noril’sk; later it declined in importance with the discovery of massive sulphide mineralisation.

Figure 8-1 Noril’sk west-east geological section (after Duzhikov et al. , 1992)

The section is approximately 7km across.

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Noril’sk mineralisation is exceptionally rich in PGE’s, to the degree that the precious metals currently have approximately the same value as the base metals. Noril’sk is the world’s leading producer of Pd, and supplies about 20% of the world’s Pt, second only to the Bushveld Complex in South Africa.

Figure 8-2 Simplified stratigraphy of the Noril’sk Ni-Cu_PGE deposits (after Duzhikov et al., 1992).

The Cu-Ni-PGE Norilsk deposits occur within a conduit type of intrusion of overall basaltic composition associated with basaltic lava and intrusive into a sulphur–bearing carbonate and pelitic succession. The deposits occur within a structural zone close to the edge of a cratonic block. The geological observations within the Ebende Project suggest that there are common features with the Noril’sk deposit. The Ebende Project is considered by Ebende Resources to represent a potential analogue of the Noril’sk style of mineralisation.

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8.1.1 Noril’sk Deposit Type Exploration Methods

These types of deposits are characterised by the presence large igneous provinces of mafic and ultramafic igneous rocks of tholeiitic affinity which can be mapped by magnetic surveys. Mineralisation commonly occurs as massive or disseminated sulphides, which can be identified by other geophysical methods, such as electromagnetics, or induced polarisation surveys. Typically, the exploration methods would include:

• Regional aerial magnetic and gravity surveys are used to identify prospective areas showing the regional characteristics noted above and to determine the extent, geometry, and basal contacts of intrusions. At district to local scales, magnetics may be used to delineate lithologic layering and identify small-scale structural embayments and depressions along the basal contact of intrusions. Airborne and ground electromagnetics and induced polarization are used to identify and delineate conductive sulphides.

• Stream sediment and soil geochemistry can be useful if intrusions are exposed or are in subcrop. Lithogeochemical study of prospective intrusions for S, Cu, Ni, PGE contents, as well as Cu/Pd ratio and Mg-number helps to determine stratigraphic variations and the occurrence of sulphur-saturation events.

• Composition of olivine (Ni content versus Mg-number) can be used as an indicator of nickel depletion in magmas from which the olivine has crystallized.

• Closely spaced drilling, particularly of basal contacts and feeder conduits, as well as down-hole geophysics such as time-domain electromagnetics can help direct exploration toward the most mineralised parts of the intrusion.

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9 EXPLORATION

In this section, the geophysical surveys, drilling and petrographic analysis of samples, carried out on behalf of Ebende Resources is summarised. No assay samples have yet been collected and the only samples collected to date were for petrographic analysis. Sample bias and sample representivity are therefore not considered by the Qualified Persons to be material at this stage.

9.1 Geophysical Surveys

Due to the almost ubiquitous cover of Cretaceous sands and clays, geophysics has been extensively applied in the exploration of the area. De Beers applied geophysical surveys in the search for diamondiferous kimberlites. However, the data generated is also useful for exploration for other commodities. Ebende Resources has flown an additional aeromagnetic survey, which when combined with the 2004 De Beers survey (section 6.1.1) provides almost complete coverage of the entire Ebende Project area. Ebende Resources has also undertaken a ground gravity survey over a small portion of the Project on licence PR 10422.

9.1.1 Xcalibur Aeromagnetic Surveys

Magnetic surveys measure and map the Earth’s magnetic field, which is influenced by the subsurface geology. Rocks containing magnetite (and to a lesser extent other magnetic minerals) in varying proportions (such as mafic igneous rocks) can be readily distinguished from those containing no magnetite (such as carbonate sedimentary rocks) and thus their distribution can be mapped.

The Xcalibur aeromagnetic system is operated from a crop sprayer aircraft (Airtractor 402A) at a survey speed of 128 mph (206 km/h) and a survey height of 30 m (hazard dependent), providing a survey reading every 4 m. Survey lines were oriented at 90o – 270 o (east-west) with respect to the UTM 35 S coordinate system, and were 250 m apart. Tie lines were flown N-S along lines 2,500 m apart.

Survey navigation was with AgNav Guia TM , and data positioning was with a Trimble SPS852 and OMNI Star differential GPS system. Data acquisition was with XAGDAS TM , using two Geometrics G8223A Caesium vapour magnetometers with a resolution of 0.001 nT. An Optech/King laser/radar altimeter was used to measure altitude above the ground. A GEM 19 magnetometer was used as a base station.

De Beers flew an area which includes the northern licences of the Ebende Project in 2007 (section 6.1). Subsequently, the southern licences were flown for Ebende with the same survey parameters. A map of the aeromagnetic coverage is shown in Figure 9-1. A total of 12,161 line km was flown by Xcalibur for the Ebende survey.

The Total Magnetic Intensity survey map in Figure 9-1 shows the extent of the magnetic target (the Ebende Structure) which is inferred by CCN to represent a synformal mafic/ultramafic intrusion (possibly a lopolith) with overlying lavas (Liebenberg, 2013).

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Figure 9-1 Combined Aeromagnetic Surveys (2004 and 2012) of the Ebende Project showing the magnetic target known as the Ebende Structure

Magnetic feature (Ebende Structure) which is the primary target of the Ebende Project

Warm colours indicate higher magnetic intensity.

30 August 2013

Interpretation of the combined 2004 and 2012 Xcalibur aeromagnetic surveys was undertaken by De Wet (2013). Both 2D magnetic profile modelling (2D modelling), and 3D magnetic amplitude inversion modelling (3D modelling) was performed on the aeromagnetic data (de Wet, 2013). The results suggest the presence of a moderately magnetic intrusion beneath the Ebende Structure (section B-B’ in Figure 9-3). In the north, this feature is interpreted as a possible flat lying sill, which would support the model of a synformal lopolith (section A-A’ in Figure 9-3).

Variations in the Natural Remanant Magnetisation (NRM) of the Ebende Structure suggests that the intrusions formed over an extended period of time, which does not contradict the conceptual model of a Noril’sk style magmatic event.

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Figure 9-2 3D Inversion modelling of the Ebende structure (de Wet, 2013)

Warm colours indicate higher magnetic intensity.

30 August 2013

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9.1.2 Ground Geophysical Surveys

Ebende Resources undertook a ground gravity survey over licence PR10422 during the period December 2012 to January 2013. The survey comprised 729 measurement stations arranged on a 200 m x 200 m grid, was intended to help identify areas of possible alteration and massive sulphide mineralisation (which might form gravity highs) and therefore assist in locating boreholes. Figure 9-3 is map of the results of the gravity survey, presented as a Bouguer Gravity Anomaly map (i.e. corrected for elevation and the gravitational attraction of undulations in the terrain). A number of gravity highs were identified. In the Qualified Person’s opinion it is debatable whether gravity would be an effective tool for identifying primary mineralisation, but might be effective in identifying alteration associated with a mineralising event.

Figure 9-3 Map of the ground Gravity Survey done by Ebende Resources on PR10422

Warm colours indicate higher gravity field.

30 August 2013

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9.2 Drilling

The Ebende JV drilled five core holes to investigate specific geophysical targets within the main magnetic anomaly to test the model of a mafic/ultramafic sequence. This drilling is described in section 10.

All the holes are summarised in Table 10-1 and shown in Figure 10-1.

9.3 Petrographic Analysis

Rock samples from three of the five cored holes drilled within licence PR10422 by Ebende Resources were selected for petrographic analysis (Thatcher, 2013). The samples were selected by a geologist as representative examples of different lithologies within the basalt sequence. The core samples were fresh and unweathered. The locality of the three holes from which the samples were selected is shown in Figure 10-1, and the petrographic descriptions are summarised in Table 9-1. The rocks are all altered basaltic lavas, which confirm that the magnetic feature observed within the Ebende licences is associated with a thick sequence of mafic rocks, including basalts.

Table 9-1 Petrographic descriptions of rock samples from drill core (Thatcher, 2013)

Hole Sample Depth Magnetic Classification Alteration No. No. (m) Type Degree Massive Chloritised, Silicified, DH_003 35 50.21 Strongly Partially amygdaloidal basalt Sericitised, Albitised Amygdaloidal Chloritised, Silicified, DH_003 36A 79.04 Strongly Strongly basalt Goethitised Amygdaloidal Chloritised, Silicified, DH_003 36B 79.04 Strongly Strongly basalt Goethitised/ Hematitised Amygdaloidal Chloritised, Silicified, DH_006 45 47.85 Moderately Strongly basalt Hematitised/ Goethitised Amygdaloidal Chloritised, Epidotised, DH_006 49 224.38 No Strongly basalt Goethitised/ Limonitised Amygdaloidal Hematitised, Goethitised, DH_008 52 40.25 Moderately Strongly basalt Chloritised Amygdaloidal Albitised, Chloritised, DH_008 54 93.62 Strongly Strongly andesitic basalt Epidotised, Amphibolised Amygdaloidal Chloritised, Saussuritised, DH_008 58 358.28 Moderately Strongly basalt Epidotised, Silicified Chloritised with limonite(?) Fine-grained DH_008 60 366.62 No and siliceous material filling Strongly brecciated basalt veinlets

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9.4 Exploration Expenditure

Ebende Resources has spent a total of USD 2.65 million on its exploration programme during the period 2011 to July 2013. The expenditure is shown in Table 9-2. Planned future expenditure is presented in section 26.

Table 9-2 2011 – July 2013 Exploration Expenditure on the Ebende Project (USD)

Activity/Expense 2011 2012 2013 Total

Aeromagnetic Survey 309 589 26 292 Drilling Programme 688 614 458 220

Ground Gravity survey 4 000 72 920

Field Logistics 2 454 106 834 55 806

Licence Fees 184 261 276 226

Overheads 105 630 166 583 196 646 Total (USD) 108 084 1 459 881 1 086 109 2 654 074

It should be noted that the costs for the 2012/2013 drilling programme were high, amounting to a total of USD 1,146,834, and equivalent to a cost of USD 769 per metre based on a total metreage of 1,492 m. The primary reasons for this are fourfold: the cost includes the geological supervision of the drilling programme; the costs were inflated by delays in the drilling programme brought about by equipment failures experienced by the contractors; the remote location and difficult access meant that the mobilisation cost was high and that cost of delays was amplified by the time taken to procure replacement parts for equipment; and the cost of diesel in this environment is approximately USD 3.00 per litre.

10 DRILLING

Boreholes drilled within the Project by Ebende Resources are summarised in Table 10-1 and shown in Figure 10-1.

Table 10-1 List of Boreholes drilled within the Ebende Project by Ebende Resources

DRILLED BY TARGET 1 METHOD EOH DEPTH EOH LITHOLOGY YEAR DIP AZIMUTH LONGITUDE LATITUDE EBENDE RESOURCES DH_003 CORE 300.4 BASALT 2012 -60 20.0 25.16227 -6.38328 EBENDE RESOURCES DH_004 CORE 361.8 BASALT 2012 -60 20.0 25.16164 -6.38390 EBENDE RESOURCES DH_006 CORE 301.3 BASALT 2012 -60 20.0 25.16996 -6.38383 EBENDE RESOURCES DH_008 CORE 500.2 BASALT 2013 -90 0.0 25.13693 -6.37473 EBENDE RESOURCES DH_011 CORE 28.3 BASALT 2012 -60 20 .0 25.15858 -6.36560 Lat/Long coordinates are based on the WGS84 datum

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Figure 10-1 Map of boreholes drilled by Ebende Resources within the Ebende Project on PR10422

Warm colours indicate higher magnetic intensity.

30 August 2013

Ebende Resources planned a total of 9 holes to investigate portions of the Ebende Structure identified primarily by the airborne magnetic and airborne electromagnetic survey flown by De Beers. The holes were located with the objective of intersecting the Ebende Structure magnetic feature where it is coincident with conductive zones identified by the EM survey, and gravity highs identified by the ground gravity survey (section 9.1) in the hope that these would represent conductive massive sulphides within the mafic sequence.

Five holes (out of a planned total of 9) were drilled by E Global Drilling Corp for Ebende Resources between November 2012 and February 2013 using an Energold Series 2 drill rig. The drilling programme experienced breakdowns and logistical challenges, and only three of the holes were completed to their intended depth. A total of 1,492 m was drilled in five holes.

The drill cores are currently stored at a field base in Kabinda (Figure 10-2).

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Figure 10-2 The core shed in Kabinda with core logging and core storage

The drilling and core logging was completed according to set of Standard Operating Procedures (SOPs) prepared especially for the project. The SOPs cover operational control of the drilling, including site preparation, hole siting, depth control, production statistics, core handling, core transport, core logging (lithological, mineralogical and RQD), core recovery, and sampling. To date, the cores have been logged, but the only sampling done to date has been for petrographic purposes. The boreholes were surveyed downhole with an Eztrack survey tool. The borehole collars were preserved with a cement plinth. If the holes were to be incorporated into a Mineral Resource estimate at some time in the future, the borehole collars would have to be surveyed. Their current location is accurate to a few metres, based on hand held GPS.

10.1 Core Logs

Core logging was undertaken by a geologist contracted from MSA. The core logs are presented in Figure 10-3. Three different types of basalt were observed in the core, which are summarised in Figure 10-4.

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Figure 10-3 Core Logs from five holes drilled by Ebende Resources within PR10422

Figure 10-4 Types of basalt observed (NQ core approximately 47 mm in diameter)

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11 SAMPLE PREPARATION, ANALYSES AND SECURITY

The only sample analysis which has been undertaken within the Project to date is petrographic analysis of drill core samples from the 2012-2013 drilling programme. The sample preparation and analysis is briefly described below.

No assay samples have yet been collected and the certification of the laboratory, security measures, and quality control measures are not considered by the Qualified Persons to be material at this stage.

11.1 Petrographic Samples

Petrographic samples were prepared and analysed by Microsearch CC, an independent service provider in Johannesburg (Thatcher, 2013). Thin sections of the rock samples were prepared for analysis with transmitted light using a polarising optical microscope. Individual minerals can be identified on the basis of their appearance and optical properties, which enables the petrologist to identify and classify the rock.

A Struers Discoplan-TS precision cutting and grinding machine was used to prepare the tin sections. The samples were initially cut along a marked line to produce a parallel sided slab about 8 mm thick. This was trimmed using a diamond cut-off wheel to a rectangle of suitable size to fit on to 27 x 46 mm glass slide and was glued on to the heated slide using Struers EpoFix epoxy resin and hardener. The mounted slice was then reduced to close to final thickness (approximately 80 µm) using the grinding module on the Discoplan-TS machine. Final correct thickness (approximately 30 µm) was achieved by hand on a grinding pad with a fine paste prepared from grinding powders of suitable grade. Thickness was checked under a polarising microscope against the interference colours produced as a result of birefringence in common minerals at known thicknesses. The sample number was scribed on to the underside of the glass slide at each end. A glass cover slip was then glued with heated epoxy resin on to the upper surface of the thin slice and a plastic label, with sample number, affixed to one end.

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12 DATA VERIFICATION

The Qualified Persons reviewed all of the exploration data compiled to date. Reviews included the following:

• Field checking of collar co-ordinates, drill collar elevations and orientations, down-hole survey data, geological and mineralization logging, and assay and density data. No significant errors were noted that could affect any possible future Mineral Resource estimation.

• A visit to Xcalibur to observe the QAQC performed on airborne magnetic data sets.

In the opinion of the Qualified Persons, the data procured for the project to date is considered by the Qualified Persons to be accurate and precise and of a high standard, and has been collected according to strict protocols documented in SOPs. The drilling SOP includes a section on logging and sampling of core, which contains procedures for measuring core density (by the Archimedes Principle) and ensuring quality assurance and quality control (QAQC) on samples for assay should a future assay programme be required.

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13 MINERAL PROCESSING AND METALLURGICAL TESTING

No metallurgical studies have been undertaken to date.

14 MINERAL RESOURCE ESTIMATES

There are currently no Mineral Resources estimated in the Project area.

15 MINERAL RESERVE ESTIMATES

There are currently no Mineral Reserves estimated in the Project area.

16 MINING METHODS

There is currently no mining activity on the Property.

17 RECOVERY METHODS

This section is not relevant to the report as no mineralisation has yet been identified.

18 PROJECT INFRASTRUCTURE

The Project is still at an early stage and no detailed infrastructure analysis has been carried out. A summary of the infrastructure within and adjacent to the Project area is presented in section 5.4.

19 MARKET STUDIES AND CONTRACTS

No market studies have yet been completed for the project.

20 ENVIRONMENTAL STUDIES, PERMITING AND SOCIAL OR COMMUNITY IMPACT

The required environmental permits are in place to allow early stage exploration. Good relations with the local community have been maintained by Ebende Resources and previous explorers in the area. This fact was verified by the Qualified Person during site visits to the area.

21 CAPITAL AND OPERATING COSTS

These have not been estimated at this time.

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22 ECONOMIC ANALYSIS

No economic analysis is relevant at this time.

23 ADJACENT PROPERTIES

There are no known adjacent properties with comparable mineral deposits.

24 OTHER RELEVANT DATA AND INFORMATION

None.

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25 INTERPRETATION AND CONCLUSIONS

The Ebende Project is an early stage exploration project based on a licence holding of approximately 5,400 km 2 in the Kasai Orientale and Katanga Provinces of DRC. Historical geological mapping and diamond exploration in the area produced geological and geophysical data that reveals the remnants of a thick, possibly fractionated, tholeiitic continental flood basalt pile which occurs within the Mbuji Mayi Supergroup and is largely covered by younger sediments. Remnants of this basalt sequence are reported from rocks which may be correlated with the Mwashya Group in the Copperbelt and elsewhere. The basalts, along with geophysical features which may represent plutonic feeders, collectively make up a very large (> 200 km x 30 km), elongate, synformal magnetic feature identified from aeromagnetic surveys, and named by Ebende Resources geologists as the Ebende Structure. The basalt sequence was apparently extruded through a carbonate platform on the margin of the Archaean Congo-Kasai Craton. These geological features are comparable to the giant Noril’sk PGE-Ni-Cu deposit in Russia, which was emplaced as a feeder to the Siberian Trap continental flood basalt sequence on the margin of the Siberian Craton in Russia.

To date, Ebende Resources has undertaken additional geophysical surveys and limited drilling to further delineate the Ebende Structure. The exploration work has been executed in accordance with SOPs prepared by MSA and aligned with international best practice. The results of the exploration to date have not identified significant mineralization. However, the exploration model remains to be fully tested.

25.1 Risks

Mineral exploration carries inherent risk. In addition, there are risks associated with the level of development of a project, the location of the project, and a variety of social and political aspects. A number of risks are evident for the Ebende Project and these are summarised in Table 25-1.

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Table 25-1 Summary of Key Risks for the Ebende Project

Risk Risk Class Risk Mitigation/Comment

The model is incorrect, or there is no The exploration will proceed in a phased manner Technical significant mineralisation present to minimise exposure Exploration under cover and over a very Regional geophysics and geochemical survey large area makes location of mineralization Technical results will be used to focus exploration challenging Social licence to operate. Without this, the Maintain dialogue with local Chiefs and establish a local community may prevent development of Social risk register and appropriate integrated the project Environmental Health and Safety (EHS) system The shortage of skills may compromise the Skills are available outside DRC at high cost. Financial development of a future mine Develop local skills. Lack of infrastructure will inhibit project Consequence is high cost of operation and Technical execution increased delays when breakdowns arise Operate with emergency response plans and Health and Safety SHE appoint paramedics on the project where possible Maintain policy and establish and monitor work Environmental SHE protocols. Establish EMP to minimise environmental damage

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26 RECOMMENDATIONS

It is recommended that further geochemical sampling is undertaken in areas where the Cretaceous cover has been stripped, and that the survey be designed specifically for geochemical assay. Sampling with the use of Mobile Metal Ions (MMI) technology may be effective in areas of shallow cover. MMI uses weak acid to dissolve grain coatings and can detect very low metal concentrations.

The budget for the proposed work programme Phases I and II is presented in Table 26-1. The 2013 expenditure presented in Table 26-1 is the budgeted expenditure from 1 August 2013 to the end of 2013 to complete Phase I.

If the results of Phase I are sufficiently encouraging, then MSA recommends that Ebende Resources proceeds to Phase II of the exploration programme in 2014. The Phase II programme would involve further delineation of anomalies through additional geochemical sampling and ground geophysical surveys, followed by a core drilling programme designed to test anomalies identified. Reverse circulation drilling is cheaper than core drilling, but provides little geological information other than assay data. Core drilling is therefore the recommended method whilst the exploration models are being tested.,

Table 26-1 Proposed Exploration Expenditure on the Ebende Project (USD)

2013 2014 Activity/Expense Phase I Phase 1I Licence Fees 220,000 Geological Mapping 75,000 - IP Survey (Typhoon) 330,000 350,000 Geochemical Stream Sediment 100,000 275,000 Sampling Ground Gravity survey 43,000 - Drilling Programme - 1,200,000 Field Logistics 50,000 170,000 Overheads 50,000 130,000

Total (USD) 823,000 2,170,000 2,993,000

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27 REFERENCES

AMIRA P544 (2003) Proterozoic sediment-hosted copper deposits. Final report.

Bourassa, M. and Turner,J. (2013) Mining in 31 Jurisdictions Worldwide. Getting the Deal Through. Democratic Republic of Congo

De Beers (2004) De Beers Mineralogical report: The petrography of samples EDI008, EDI013, EDI015, EDI016 and EDI025 from different localities within the Bugeco Permits, Kasai, Eastern DRC. K.M. Burgers De Beers African Exploration Office, Centurion (unpublished)

Delpomdor, F., Linnemannb, U., Bovenc, A., Gärtnerb, A., Travind, A., Blanpiede, C., Virgonee, A., Jelsma, H., Préata, A. (2013) Depositional age, provenance, and tectonic and paleoclimatic settings of the late Mesoproterozoic–middle Neoproterozoic Mbuji-Mayi Supergroup, Democratic Republic of Congo.

De Wet, B. (2013) Review of Airborne Magnetic Surveys including Kabongo survey area and long gravity line proposal. Ebende Resources internal report (unpublished).

Duzhikov, O.A., Distler, V.V., Strunin, B.M., Mkrtychyan, A.K., Sherman, M.L., Sluzhenikin, S.S., and Lurye, A.M., (1992) Geology and metallogeny of sulphide deposits Noril’sk region, USSR: Society of Economic Geologists, Special Publication 1, p. 242.

Eckstrand, O.R., and Hulbert, L.J. (2007) Magmatic Nickel-Copper-Platinum Group Element Deposits. in Goodfellow, W.D., ed., Mineral Deposits of Canada: A Synthesis of Major Deposit Types, District Metallogeny, the Evolution of Geological Provinces, and Exploration Methods: Geological Association of Canada, Mineral Deposits Division, Special Publication No. 5, p. 205- 222.

Emery Mukendi Wafwana and Associates SCP (2013) Emery Mukendi Wafwana and Associates SCP avocats et mandataires en mines et carrières. Legal opinion on the validity and compliance with the rules and regulations of the Democratic Republic of Congo regarding exploration permits acquired by Ebende Resources Ltd. as well as the prerogatives grantes to the company as holders of these permits. 23 September 2013.

Goodwin, A.M. (1996). Principles of Precambrian Geology. Academic press

Kokonyangi, J., Armstrong, R.A., Kampunzu, A.B., Yoshida, M., Okudaira, T. (2004) U–Pb zircon geochronology and petrology of granitoids from Mitwaba (Katanga, Congo): implications for the evolution of the Mesoproterozoic Kibaran belt. Precambrian Research 132 (2004) 79–106

Lapersonne, J. (1974) 1:2.5 million Geological Map of DRC. Royal Museum of Central Africa, Tervuren, Belgium.

Liebenberg, L. (2013) A provisional report on the geological interpretation of the Ebende Project area. Prepared for the Technical Committee of Ebende Resources Limited. 9 August 2013

Roberts, E.M. (2008) Stratigraphic, sedimentologic, and palaeontologic investigation of Karoo and Cretaceous-aged sedimentary cover sequences in the south-central Congo Basin, Democratic Republic of Congo. Prepared for De Beers Group Services by Dr. Eric M. Roberts, School of Geosciences, University of the Witwatersrand (unpublished) June 2008

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Tack, L., Wingate, M.T.D., De Waeld, B., Meert, J., Belousova, E., Griffin, B. Tahon, A., and Fernandez-Alonso, M. (2010) The 1375Ma “Kibaran event” in Central Africa: Prominent emplacement of bimodal magmatism under extensional regime. Precambrian Research. doi:10.1016/j.precamres.2010.02.022

Tervuren (2005) Carte Géologique et Minière de la République Démocratique du Congo. 1 :2.5 million scale. Royal Museum of Central Africa, Tervuren, Belgium

Theron and Youlton (2008) Detailed Petrographic Examination and Brief Geochemical Characterization of Nineteen Samples from the DRC (Anglo American Corporation mineralogical report 0608/127 unpublished)

Thieme, M.L., Abell, R., Burgess, N., Lehner, B., Dinerstein, E., and Olson, D. (2005) Freshwater ecoregions of Africa and Madagascar: A Conservation Assessment. ISBN 1-55963-365-4

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APPENDIX 1:

Glossary of Terms

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Glossary

amphibolite A rock consisting mainly of hornblende and amphibole, the use of the term being restricted, however, to metamorphic rocks. amsl Above Mean Sea Level Archaean The geologic eon from about 3,800 to 2,500 million years ago. Archimedes’ Principle A principle which relates buoyancy to displacement and states that a body immersed in a fluid is buoyed up by a force equal to the weight of the displaced fluid. basalt A mafic volcanic rock composed chiefly of plagioclase and pyroxene. It is the extrusive equivalent of gabbro. Bouguer anomaly The Bouguer anomaly (named after Pierre Bouguer) is a gravity anomaly, corrected for the height at which it is measured and the gravity attraction of terrain. calc-alkaline magma The calc-alkaline magma series is one of two main series magma series in igneous rocks, the other magma series being the tholeiitic. A magma series is a series of compositions that describes the evolution of a mafic magma, which is high in magnesium and iron and produces basalt or gabbro, as it fractionally crystallizes to become a felsic magma, which is low in magnesium and iron and produces rhyolite or granite. Calc-alkaline rocks are rich in alkaline earths (magnesia and calcium oxide) and alkali metals and make up a major part of the crust of the continents. carbonate A rock, usually of sedimentary origin, composed primarily of calcium, magnesium or iron and CO3. Essential component of limestones and marbles. chalcopyrite An iron copper sulphide mineral which is used as an ore of copper

chromite An iron chromium oxide: FeCr 2O4. It is an oxide mineral belonging to the spinel group. density A measure of the amount of matter contained by a given volume. dip The angle at which a planar feature, such as bedding or schistosity, is inclined from the horizontal. discordant When a differing type of rock cuts across a formation. disseminated Term applied to ore deposits consisting of fine grains of ore mineral dispersed through the host rock.

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dolerite Medium-grained intrusive igneous rock of basaltic composition (plagioclase + clinopyroxene) dolomite A carbonate mineral composed of calcium magnesium

carbonate CaMg(CO 3)2. dunite An igneous, plutonic rock, of ultramafic composition, with coarse-grained texture. The mineral assemblage is greater than 90% olivine. dyke A tabular body, typically of igneous rock, which cuts across the structure of another older rock. fault A crack in the earth's crust resulting from the displacement of one side with respect to the other. gabbro A mafic igneous rock composed chiefly of plagioclase and clinopyroxene, sometimes with olivine. It is the intrusive equivalent of basalt. gneiss A common and widely-distributed metamorphic rock having bands or veins, but not schistose. grade A measure that describes the concentration of a valuable natural material in the surrounding ore. granite A common widely occurring type of intrusive, felsic, igneous rock. Granite usually has a medium- to coarse- grained texture. greenstone A major metamorphic rock type resulting from regional metamorphism. igneous Pertaining to a rock that has crystallized out of a melt. intrusion Liquid rock that forms under Earth's surface. Magma from under the surface is slowly pushed up from deep within the earth into any cracks or spaces it can find, sometimes pushing existing country rock out of the way, a process that can take millions of years. As the rock slowly cools into a solid, the different parts of the magma crystallize into minerals kimberlite A type of potassic, carbon dioxide containing, volcanic rock (peridotite) best known for sometimes containing diamonds. komatiite A type of ultramafic mantle-derived volcanic rock. Komatiites have low silicon, potassium and aluminium, and high to extremely high magnesium content. limestone A sedimentary rock composed largely of the minerals calcite and aragonite, which are different crystal forms of

calcium carbonate (CaCO 3).

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lithology A description of a rock’s physical characteristics visible at outcrop, in hand or core samples or with low magnification microscopy, such as colour, texture, grain size, or composition. lopolith A concordant, typically layered igneous intrusion that is planoconvex in shape mafic A type of rock that is rich in magnesium and iron

magnesium number 100 MgO/(MgO + FeO) indicates the level of evolution of (Mg#) a volcanic rock (e.g. Basalt) since leaving the Earth’s mantle. Mg# of a primitive basalt which originates in the mantle is ~70. As the basalt undergoes evolution while passing through the Earth’s crust (interacting with and assimilating other rock types in the crust) the Mg# goes down from primitive number 70.

magnetite An iron oxide mineral with the chemical formula Fe 3O4 and a member of the spinel group. massive sulphide A sulphide body containing over 50 per cent of sulphide minerals. metasediment A sedimentary rock that shows evidence of having been subjected to metamorphism. mica A group of hydrous aluminosilicate minerals characterized by highly perfect cleavage, so that they readily separate into very thin leaves. Natural Remanant The permanent magnetism of a rock caused by the Magnetisation (NRM) alignment of magnetic particles in the rock with the Earth’s magnetic field at the time the rock formed. olivine A magnesium iron silicate mineral with the formula

(Mg,Fe) 2SiO 4. pegmatite A very crystalline, intrusive igneous rock composed of interlocking crystals usually larger than 2.5 cm in size;[1] such rocks are referred to as pegmatitic.

pentlandite An iron-nickel sulphide, (Fe,Ni) 9S8. peridotite A dense, coarse-grained igneous rock, consisting mostly of the minerals olivine and pyroxene. Peridotite is ultramafic, as the rock contains less than 45% silica. It is high in magnesium, reflecting the high proportions of magnesium-rich olivine, with appreciable iron. PGE Platinum Group Elements. The six platinum group metals are ruthenium, rhodium, palladium, osmium, iridium, and platinum.

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plunge The angle made by a linear feature, such as an axis of a fold, with the horizontal plane. ppm parts per million

pyrite An iron sulphide mineral with the formula FeS 2. pyroxene A group of important rock-forming inosilicate minerals found in many igneous and metamorphic rocks.

Pyroxenes have the general formula XY(Si,Al) 2O6. pyroxenite An ultramafic igneous rock consisting essentially of minerals of the pyroxene group, such as augite and diopside, hypersthene, bronzite or enstatite. pyrrhotite A weakly magnetic ferrous sulphide mineral, FeS. QAQC Quality assurance and quality control. quartz The most abundant mineral on the earth's surface, of chemical composition silicon dioxide, SiO2. saprolite A chemically weathered rock. Saprolites form in the lower zones of soil profiles and represent deep weathering of the bedrock surface. serpentine A group of common rock-forming hydrous magnesium

iron phyllosilicate ((Mg, Fe) 3Si 2O5(OH) 4) minerals. serpentinisation A geological low-temperature metamorphic process involving heat and water in which low-silica mafic and ultramafic rocks are oxidized (anaerobic oxidation of Fe 2+ by the protons of water leading to the formation of H2) and hydrolyzed with water into serpentinite. serpentinite A rock composed of one or more serpentine group minerals. SG Specific gravity. The ratio of the density (mass of a unit volume) of a substance to the density (mass of the same unit volume) of a reference substance. shale A fine-grained, clastic sedimentary rock composed of mud that is a mix of flakes of clay minerals and tiny fragments (silt-sized particles) of other minerals, especially quartz and calcite. SOP Standard Operating Procedures stratification The process leading to the formation or deposition of layers, especially of sedimentary rocks. strike The direction of the line formed by the intersection of a fault, bed, or other planar feature and a horizontal plane. syncline Fold in rock with a U-shaped cross section, containing stratigraphically younger rocks towards the centre of curvature.

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synform A structure with a U-shaped cross section, with unknown stratigraphic orientation or origin. tholeiitic magma series The tholeiitic magma series is one of two main magma series in igneous rocks, the other magma series being the calc-alkaline. A magma series is a series of compositions that describes the evolution of a mafic magma, which is high in magnesium and iron and produces basalt or gabbro. Typhoon TM A high power Induced Polarisation geophysical system designed to locate buried massive sulphide mineralisation at greater depth, or under more conductive cover, than conventional systems. ultramafic rock (also referred to as ultrabasic) rocks are igneous and meta-igneous rocks with very low silica content (less than 45%), generally >18% MgO, high FeO, low potassium, and are composed of usually greater than 90% mafic minerals (dark coloured, high magnesium and iron content). weathering Mechanical or chemical breaking down of rocks in situ by weather or other causes.

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APPENDIX 2 Certificates of Qualified Persons

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CERTIFICATE OF QUALIFIED PERSON Dr Brendan Morgan Clarke

I, Dr Brendan Morgan Clarke, do hereby certify that:

1. I am the Head of Geology at The MSA Group (Pty) Ltd located at 20B Rothesay Avenue, Craighall Park, Johannesburg, South Africa

2. This certificate applies to the Technical Report entitled “Independent Technical Report on the Ebende Project, Democratic Republic of Congo” with an effective date of 27 September 2013 prepared in support of a proposed reverse takeover whereby Bureau of Geological Consultancy S.A. and HPX Techco will vend their stakes in Ebende Resources Limited (BVI) into Concordia Resource Corp, taking shares as payment.

3. I graduated with a degree in Geology from the University of Natal in 1999. In addition, I have obtained a PhD in Structural Geology from the University of KwaZulu-Natal in 2010.

4. I have worked as a geologist for a total of 13 years. This experience includes technical and management roles with technical roles predominantly focussed on geological mapping, research and the management and execution of multi-commodity exploration programmes in West, Central and Southern Africa as well as parts of East Africa and the Middle East. I have specific PGE exploration experience in the Bushveld Complex of South Africa and disseminated and massive Ni sulphide deposit experience in Botswana, Burundi and South Africa.

5. I am a Professional Natural Scientist (PrSciNat) registered with the South African Council for Natural Scientific Professions (SACNASP; registration 400063/03)

6. I have read the definition of “Qualified Person” set out in National Instrument 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 am a “qualified person” for the purposes of NI 43-101.

7. I have not visited the property as it remains a very early stage conceptual target.

8. I am responsible for sections 7-9, 25 and 26 of the Technical Report.

9. I am independent of the Company and the vendor according to the definition of independence described in section 1.5 of the instrument.

10. I have not had prior involvement with the property that is the subject of the Technical Report.

11. I have read NI 43-101 and the Technical Report, to the best of my knowledge, information and belief, those portions of the Technical Report for which I am responsible have been prepared in compliance with NI 43 101.

12. As of the effective date of the Technical Report, to the best of my knowledge, information and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.

13. I consent to the filing of this Technical Report with any stock exchange or other regulatory authority, and any publication of the Report or the Summary of the Report by them for regulatory purposes, including electronic publication in the public company files on their websites accessible by the public, of this Technical Report.

Dated this 16th day of October, 2013. “Signed and sealed” Dr Brendan Morgan Clarke

Head of Geology – The MSA Group (Pty) Ltd

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CERTIFICATE OF QUALIFIED PERSON - Mr Michael David Lynn

I, Mr Michael David Lynn, do hereby certify that:

1. I am a Principal Consultant at The MSA Group (Pty) Ltd located at 20B Rothesay Avenue, Craighall Park, Johannesburg, South Africa

2. This certificate applies to the Technical Report titled “Independent Technical Report on the Ebende Project, Democratic Republic of Congo”, effective date 27 September 2013 prepared in support of a proposed reverse takeover whereby Bureau of Geological Consultancy S.A. and HPX Techco will vend their stakes in Ebende Resources Limited (BVI) into Concordia Resource Corp, taking shares as payment.

3. I graduated with an Honours degree in Geology from Portsmouth Polytechnic in June 1984, and with a Master’s Degree in Exploration Geology from Rhodes University in January 1991.

4. I have worked as a geologist for a total of 28 years. This experience includes technical and management roles focussed on geological exploration and the management and execution of exploration programmes in West, Central and Southern Africa as well as India. I have specific exploration experience in the DRC, having been technical manager and exploration manager for De Beers during 2007 and 2008, and I managed De Beers exploration activities over the area covered by the properties described in the Technical Report at that time.

5. I am a Professional Natural Scientist (PrSciNat) registered with the South African Council for Natural Scientific Professions (SACNASP; registration 400148/11)

7. I most recently visited the Ebende Project properties during the periods 27 May to 3 June 2012 and 14 to 18 August 2012 to plan and inspect the exploration activities.

8. I am responsible for sections 1-6 and 10-24, and 27 of this Technical Report.

7. I am independent of the Company and the vendor according to the definition of independence described in section 1.5 of the instrument.

9. I was the technical manager, and later exploration manager, for De Beers DRC Exploration over the properties currently held by Concordia Resource Corp. (through Ebende Resources Ltd BVI) and adjacent areas during the period February 2007 – January 2009.

10. I have read NI 43-101 and the Technical Report, to the best of my knowledge, information and belief, those portions of the Technical Report for which I am responsible have been prepared in compliance with NI 43 101.

11. As at the effective date of this certificate, to the best of my knowledge, information and belief, sections 1-6 and 9-12 of this Technical Report contain all scientific and technical information that is required to be disclosed to make this Technical Report not misleading.

12. I consent to the filing of this Technical Report with any stock exchange or other regulatory authority, and any publication by them of the Report or the Summary of the Report for regulatory purposes, including electronic publication in the public company files on their websites accessible by the public, of this Technical Report.

Dated this 16th day of October, 2013 “Signed and sealed” Michael David Lynn

Principal Consultant – The MSA Group (Pty) Ltd

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