Finning International (Ftt-Tsx)

INITIATION REPORT

October 3, 2019

OSINO RESOURCES CORP. (OSI – TSXV, $0.76) Rating: BUY Target Price: C$2.70 REGIONAL SCALE WITH MULTIMILLION OUNCE POTENTIAL

Osino Resources Corp. TSXV:OSI We are initiating coverage on Osino Resources Corp. with a BUY (Currency is C$ unless noted otherwise) rating and a 12-month target price of $2.70 per share. OSI is a 426% Canadian exploration company with assets in Namibia where it has discovered a broad zone of gold mineralization. OSI was created by the co-founders of 255% Auryx Gold Corp. which sold to B2Gold Corp. (BTO:TSX) after advancing the Otjikoto Gold Project in Namibia to a production decision. OSI is focused on $0.76 $2.70 $4.00 advancing its regional scale land package which is adjacent to gold producing mines and which has the potential to host an economic deposit. CURRENT 12 MO TARGET BULL Net Asset Value Per Share $2.70 52 Week Low / High $0.22 / $1.07 INVESTMENT HIGHLIGHTS CAPITALIZATION Basic Diluted Shares Outstanding (M) 67.0 67.0 An emerging gold discovery. Osino’s three projects are along major deep- Market Capitalization ($M) $50.9 $50.9 seated regional fault structures known to host gold deposits. Enterprise Value ($M) $48 Reported Cash Balance ($M) $3.0 Proven team of top tier management. OSI management has a long Reported Debt ($M) $0.0 history of delivering value through discovery, development and M&A. Since FYE: DEC 31 2025E 2026E 2012, management delivered value through two ~$200M exits. Gold Price (US$/oz) $1,400 $1,400 2 Gold Produced (oz) 94,639 94,639 Sizable land OSI has assembled 6,561 km in 3 project areas (22 licenses) Cash Costs (US$ per oz) $540 $540 that encompasses at least 45 exploration targets with the potential to define $603 $608 AISC (US$ per oz) more than one gold deposit. All of Osino’s projects are located in historic Operating CFPS (US$) $0.92 $0.91 gold mining districts and are contiguous to world class gold producing mines Cash At Year End (US$M) $60 $60 PRODUCTION FORECAST and other past producers. Karibib Gold District. Osino’s current focus is on the Twin Hills and 100,0002.5 609 608 1000 Goldkuppe prospects, which are located on a major regional structure 2 607 606 known to host gold deposits. At Twin Hill Central OSI made a discovery of 1.5 750 605 50,000 wide zones of mineralization of up to 189 m grading 0.7 g/t Au, in addition 604 1 500 603 to higher grade shoots that include 17 m at 2.17 g/t and 65m at 1.37 g/t 0.5 250 602 Au.The region, including Goldkuppe, has historic drilling resulting in 7 m at 601 0 - 0 600 9.0 g/t Au, 73 g/t Ag and 4.43% Cu. The Karibib project surrounds the 2026 2027 2028 2029 2030 Navachab Gold Mine, covering 50 km of prospective strike extension. OSI Production#REF! (oz) #REF!AISC (US$/oz)0 0 consolidated the district and discovered significant new gold mineralized systems on strike with Navachab. MAJOR SHAREHOLDERS Management & Insiders (7.7%), Beaty, Ross J. (5.9%), Daun, Otjikoto East Exploration Area. Otjikoto East is contiguous to B2Gold’s Heye Edmund (0.82%), Friedman, Alan Mark (0.61%), Dr. Otjikoto Mine. B2Gold acquired Otjikoto deposit from the current Osino Kohlhase Vermögensve (0.32%), Grayston Capital Invest management team in 2012 in a US$180M transaction. Osino has identified (0.16%) extensive mineralization in an area that has seen little systematic regional DISCLOSURE CODE: 6 scale modern exploration. (Please refer to the applicable disclosures listed on the back page) Within the highly prospective Damara Gold Belt OSI’s efforts could Source: M Partners, Company Information, Capital IQ yield shallow bulk tonnage deposits, having gold grades similar to both neighboring mines that have global resource grades ~1.2 g/t but selectively mining about 1.5 g/t Au. Clean Capital Structure. OSI is supported by institutions, insiders and strategic investors that hold, in aggregate, 55% of the Company. It has minimal dilutive securities outstanding.

Valuation: We are initiating coverage on OSI with a BUY rating and a 12-month target price of $2.70 per share. Our valuation is based on Osino Resources Corp. is led by a proven team of a top tier managers with a record of success in the exploitation of a conceptual resource of 36 Mt grading 1.20 g/t Au and on discovery, project development, financing and M&A a conservative 0.7x NAV multiple, at conservative discount rate of 10% plus and has assembled a land package of 6,561 km2 in corporate adjustments. Relative to the current steady state production at 3 project areas with 45 exploration targets that are Otjikoto Mine our base case assumptions are conservative. We assume an at different stage of advancement within a historic annualized mill throughput rate of 2.5 Mtpa at an average 1.2 g/t Au (relative gold mining district in Namibia. to 3.5 Mtpa, currently mining 1.54 g/t Au at Otjikoto). Company website: http://osinoresources.com

Member of the Investment Industry Regulatory Organization of Canada (IIROC) Analyst: Bereket A. Berhe Participating Organization – Toronto Stock Exchange and TSX Venture Exchange 416.603.7381 x261 Member – Canadian Investor Protection Fund (CIPF) [email protected]

INITIATION REPORT

October 3, 2019

We are using a 10% discount rate for OSI to account for the current stage of development. We are assuming a long-term gold price of US$1,400 per ounce, relative to the spot price of ~US$1,500 per ounce. Our base case scenario results in a project NPV of US$191M NPV10%, utilizing a conceptual resource target of 1.3 Moz recoverable gold grading 1.2 g/t Au. Applying face value asset/liability adjustments of $25M for regional exploration credits, and corporate and exploration expenses of $20M, we derive a NAV of C$3.80/share at a NAV multiple of 1.0x. Until further exploration success is announced, we value OSI on a 0.7x NAV multiple or a target price of C$2.70 per share.

Table 1: Valuation Summary Ne t A s s e t V a lu a t io n Discount $ Million $/Share Target Derivation $/Share Twin Hill Central (100%) 10.0% $191 $2.86 Project NAV $2.86 Multiple 0.7x Project NAV $191 $2.86 $2.00 Exploration Credit $25 $0.26 Adjustments $0.01 Corporate Expenses 10.0% ($20) ($0.30) Target ($/shr) $2.01 Cash $3.5 $0.05 ITM Warrants $0 $0.00 Adjusted NAV $200 $2.87 USD:CAD exchange 1.32 12-Month Target C$2.70 Source: M Partners P/NAV 0.20x Implied ROR 255%

Conclusion: The Company is transitioning from prospecting and evaluating its large land holding to a more focused, systematic and long-term exploration approach to delineate its discovery at Twin Hills. Recent drilling results from OSI’s Twin Hill Central targets have considerably improved our confidence in the project and the Company’s ability to define a high tonnage and moderate grade gold deposit that is similar to B2Gold Corp’s Otjikoto gold mine.

INVESTMENT THESIS Our valuation is based on the Company’s projects’ exploration potential to identify a large tonnage and multimillion-ounce deposit similar to the mines currently operating in and around Osino’s project areas. Like Otjikoto and Navachab, as an example of disseminated orogenic gold deposits, the potential to identify deposits of large tonnage that contain shoots of higher-grade gold in sulphide rich (including pyrrhotite) lenses is suggested by current and historic exploration works in the project areas. We expect management to reproduce their success with Otjikoto and outline at a minimum a 2 Moz Au deposit.

Osino’s projects are at various stages of development, as such there is still significant work ahead on some of the targets. However, a discovery has been made on the main targets and additional drilling is underway with many targets drill ready. In the near term, Osino remains well positioned to continue advancing all of its projects.

In the near to midterm, we expect Osino to define at least one preliminary maiden resource estimate. As exploration and success progresses in an orderly fashion, we anticipate the Company will emerge as an attractive M&A target. Should Osino define a high tonnage resource with similar grades that are being mined in the already established mines, the nearby operators (and others) could view Osino either for its ability to provide additional feed or its potential as a standalone project.

Member of the Investment Industry Regulatory Organization of Canada (IIROC) Participating Organization – Toronto Stock Exchange and TSX Venture Exchange Member – Canadian Investor Protection Fund (CIPF)

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October 3, 2019

CATALYSTS Additional assay result from diamond drilling – Q3/19 Ongoing percussion and a significant RC/DD drill program – H2/19 New target drilling – H2/19 Extending 2 drill holes that ended in mineralization – H2/19 Step-out and infill drilling – Q4/19 and H1/20 General and continued exploration on other targets – Q4/19 and H1/20 Ongoing consolidation of land position

INVESTMENT LANDSCAPE Osino’s projects are located in central Namibia, between 150 km to 300 km north and northwest of the capital city, Windhoek. The projects are road accessible via sealed and secondary gravel road networks. A number of regional towns and settlements are located within the general project area. Electrical power is readily available in most parts of the area.

Namibia enjoys high economic and social stability. Situated in southern Africa, Namibia is more economically advanced than most countries in the continent. Its economic status in Africa is due in part to mining and the quality of the country’s infrastructure. The IMF and the World Bank rate Namibia as an upper-middle income country. The World Bank describes Namibia as politically stable with sound economic management. It is governed by a stable multi-party parliamentary democracy; however, one party dominates. The World Bank’s ‘Ease of Doing Business’ index consistently ranks Namibia highly in Sub- Saharan Africa, among the top 10, and globally as average.

Figure 1– Country Location, Flag and Company Emblem

The largest economic sector in the country is mining, representing approximately 11% of GDP. The IMF expects economic growth of 1.4% in 2019/2020, driven mainly by growth in the mining sector. Diamond and uranium mining have a more entrenched history. Gold and base metal exploration and mining are a growing sector. Small deposits of gold were first discovered in Namibia during the German colonial period (1850s). More significant alluvial gold sources were discovered in 1917. In 1989, Navachab commenced production with a resource of around 1 Moz. Navachab produced continuously since then at a production rate of around 60 – 85 Koz per annum. Continuous and simultaneous

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brownfields exploration since the mid-1990s has resulted in a much improved geological understanding of the scale potential of these types of deposits. It has produced over 2 Moz to date. However, discovery of the resource base has since increased substantially. In 2011, AngloGold Ashanti reported a remaining Mineral Resource of 4.95 Moz Au (Mineral Reserve of 2.05 Moz Au) after 22 years of mining. Currently reserves are at ~4.0 Moz Au. In July 2014, Navachab was sold to QKR Corporation Limited (a private mining company). QKR acquired Navachab from AngloGold Ashanti in a transaction valued at US$110M.

B2Gold acquired the Otjikoto deposit from the current Osino management team in 2012 for US$180M. B2Gold owns 90% of the Otjikoto Mine (the remaining 10% is owned by EVI Mining, a Namibian broad-based economic empowerment group). B2Gold’s Namibia portfolio includes other exploration concessions. The Otjikoto Gold Mine started production in 2014, with a 1.4 Moz resource estimate in 29.41 Mt at an average head grade of 1.42 g/t, at a cut-off grade of 0.4 g/t (inclusive of a 1.34 Moz reserve at 1.4 g/t Au). After approximately 160 Koz of annual production since commissioning, this deposit still has a published Measured and Indicated Mineral Resource of 38 Mt grading 1.24 g/t Au and 4 Mt at 2.27 g/t Au for a total of nearly 2 Moz Au contained (inclusive of ~1.0 Moz Au reserve grading 1.54 g/t).

Namibia is largely desert ranchland with a long coastline on the South Atlantic and borders South Africa, Botswana and Angola. The country is one of the least densely populated, with a population of 2.6M. It occupies expansive, arid Namib and Kalahari deserts that make up more than 825,000 km2.

In Namibia, the Ministry of Mines and Energy grants an Exclusive Prospecting Licence (EPL) in terms of section 48(4) of the Minerals (Prospecting and Mining) Act, No. 33 of 1992. The royalty for gold, copper, zinc and other base metals is 3% of the total revenue. The corporate tax for mining in Namibia is 37.5%. Namibia has abandoned a ‘New Economic Empowerment Framework’ that was to force companies to sell a 25% interest to local entities to mitigate racial disparity.

Currently Osino is one of the more active gold explorers in the country. It consolidated a large district and discovered a significant new Au system along major mineralized structure on strike with the Navachab Gold deposit as well as the Otjikoto deposit.

REGIONAL GEOLOGY OF NAMIBIA Osino’s projects are located in the west and in central Namibia, within the Neoproterozoic Damara Mobile Belt, which forms part of the Pan–African Mobile Belt system. There are several gold occurrences and economic gold deposits hosted within the Damara Mobile Belt.

The Damara orogen is defined by a northeast striking Neoproterozoic fold, thrust and metamorphic belt that cuts through central Namibia. It results from the rifting and accretionary event between the Congo Craton and the Kalahari Craton, where the peak deformation event is estimated between 500 – 530 Ma. Another orogenic belt, the Kaoko occupies the western coast-line of Namibia. These rifting cycles began at 800 – 750 Ma and concluded by 600 Ma. The entire area is covered by up to 30 m of surficial calcrete.

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Figure 2 – Tectonic evolution of the Damara belt from

(A) the opening of the Khomas ocean basin (ca. 700 Ma), to (B) beginning of subduction and ocean consumption, up to (C) ridge subduction and migration of the relative slab window at depth, with associated magmatic evidence in the forearc region and (D) the Damara structural unit stack at present. Congo craton(Cc); Kalahari craton(kc); Northern Foreland(NF); Northern Zone(NX); Central Zone(CZ); Southern Zone (SZ); Southern Margin Zone(SMZ); Southern Foreland(SF); Omaruru Shear Zone(OmSZ); Okahandia Shear Zone(OSZ); Matchless Amphibolite(MA); Donkehoek Granite(DG). Source: Francesca Meneghini et al (2017)

The Neoproterozoic collisional environment of the Damara is divided into three major belts the North Zone: an openly folded foreland basin of low metamorphic rank; the Central Zone: calcareous and pelitic metasediments, and minor volcanic rocks that were initially deposited in a back arc, passive continental margin resting on pre-Damara basement rocks and; the Southern Zone: a suture of zone that is defined by a series of southeast verging thrust belts cutting pelitic sediments which have been deformed under high P/low T metamorphic conditions. The Eastern Kaoko Zone (EKZ) is stratigraphically and structurally continuous with the western edge of the Northern Platform. The Damara sequence is continuous beneath the Mesozoic to Cenozoic cover on the Northern Platform.

Osino’s projects, like Navachab and Otjikoto, can be classified as orogenic gold deposits. The deposits occur in a similar stratigraphic position. Although structurally controlled, for the most part mineralization is hosted within vein systems in amphibolite grade

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metasediments. Gold in the main Otjikoto deposit is hosted by a north-northeast (NNE) striking sheeted sulphide gold bearing vein system. Vein concentrations vary from 1 to 30 veins per meter with higher vein concentration in a mineralized system which has been traced over a strike length of 2.5 km and below 450 m below surface.

Figure 3 – Tectonostratigraphic zones of the Damara Orogen (after Miller 2008).

At the Navachab Mine gold mineralization is associated with auriferous calc-silicate assemblages which form at a permissive, usually carbonate rich stratigraphic interval. It is associated with the formation of discordant auriferous vein sets and breccias. Similarly, Osino’s Goldkuppe gold mineralized zones are associated with auriferous calc-silicate and sulphide assemblages within a dolomitic unit that are laterally persistent. Here mineralization may also be hosted in discordant breccias and vein systems.

PROJECT GEOLOGY In Namibia, Osino has three project areas: the Karibib Regional Exploration, Goldkuppe and Extensions and the Otjikoto East Exploration. The projects are located in the west- central part of Namibia, starting about 150 km to the northwest of the capital city Windhoek. Additionally, OSI has the Otjiwarongo Regional Project. The Project is made up of six licenses encompassing more than 3,003 km2 in central Namibia. The licenses are between the Company’s Karibib and Otjikoto East Projects. OSI has also applied for another two exploration licenses, that if granted will add another 1,580 km2 to the its land holding.

Osino is exploring the southwest portion of a deep regional structure known as the Karibib Fault zone and the Goldkuppe-Onguati trend. The projects are situated within the Southern Central Zone of the Damara Supergroup in central Namibia between the towns of Karibib and Omaruru. The Damara Supergroup is Neo-Proterozoic in age and is

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comprised of continental margin carbonates and silts which grade into turbidite sequences representing continental shelf and basin deposits. The Damara underwent a major orogenic event at 550 – 500 Ma when the sea closed along a series of major ENE structures. Hydrothermal fluid movement produced widespread gold mineralization within the carbonates and schists. There are two major producing gold mines within the Damara, the Otjikoto and Navachab, and several well- known smaller deposits which have been mined or evaluated in the past including Ondundu, Onguati, Sandamap and Epako. The area is known to host base metal deposits.

Gold deposits in the area surrounding Osino’s projects present a shallow-dipping, sheeted- vein system within a package of meta-sediments comprising marbles, albitites and hornfels biotite schists of the Karibib Formation. The deposits are situated within the northern zone of the Damara Orogen which comprises an open synformal structure immediately east of the Otjikoto deposit. The nature of gold mineralization at the Otjikoto gold deposit is often coarse and particulate, hence having high nugget effect, especially at higher gold grades. It presents a metallurgical benefit as well as resource estimation challenges. The mineralized vein systems at Navachab have lateral dimensions between 2 km to 5 km by approximately 900 m width. Depth extent exceeds 730 m below surface.

The Navachab and Otjikoto gold deposits are structurally controlled. Large scale structures with deep roots are believed to have been conduits for mineralized fluids. Both primary and secondary structures play a role in forming localized fluid traps. The secondary structures allow for economically significant gold precipitation in a spatially constrained zone. Correlation between gold and magnetite have been observed. The magnetite appears to be of an earlier, higher temperature event. Minor retrograde alteration has been associated with gold mineralization at Navachab. The Otjikoto deposit has a magnetic and electromagnetic signature from both airborne and ground data. Some of the general characteristics of the known deposits are identified on Osino’s Karibib, Goldkuppe and Otjikoto East exploration license.

THE PROJECTS Karibib Regional Exploration. Osino’s Karibib consists of 11 licenses covering a total area of approximately 1,715 km2 and more than 50 km of prospective strike extension of the Navachab Gold Mine, as well as the area from the historical Onguati Gold Mine up to and including the Goldkuppe prospect. OSI’s main focus on the Karibib is newly defined “Twin Hills Camp”. The Twin Hills Camp is 11 km long and includes: the Twin Hills East Prospect, Barking Dog Target, Clouds Target, Twin Hills Central, and Twin Hills West. The licenses cover a large turbidite basin between two carbonate horizons which have never been systematically explored. Regional mapping and re-interpretation of the aeromagnetic data has identified a large, previously unmapped, deep regional structure – now named the Karibib Fault zone. This structure can be traced over 40 km and has several gold-in- soil anomalies along it and on splays leading off it. Osino’s exploration activities since 2017 are focused along this major structure between the Company’s Goldkuppe project and the Navachab Gold Mine.

The Twin Hills Gold Project. Ground magnetic interpretation, calcrete sampling and infill calcrete sampling, as well as bedrock drilling at Twin Hills Central indicates excellent correlation between anomalous gold in surface geochemistry and the interpreted folded magnetic host unit. These results along with the previous confirmatory bedrock RAB drilling (with up to 2.65 g/t Au in bedrock samples) confirm that the target identified requires additional drill testing.

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Follow up diamond drilling resulted in significant discovery. It returned an intersection of high-grade shoots, within extensive mineralized system. It is rather encouraging that early in the drill program the scale and grade of the Twin Hills discovery are shaping up to be substantial. The most recent drilling program intersected mineralization ranging from 65 m to up to 198 m grading 1.4 g/t Au to 0.64 g/t Au.

Highlights of the 5 recent holes include: 104 m at 0.70 g/t Au (from 115 m), incl. 10 m at 1.27 g/t and 20 m at 1.11 g/t 189 m at 0.69 g/t Au (from 21 m), incl. 14 m at 1.14 g/t, 7 m at 1.42 g/t and 5 m at 1.43 g/t 78 m at 0.64 g/t (from 91 m) including 23 m at 1.01 g/t intersection of a high-grade gold zone of 65 m at 1.37 g/t Au (16 m – 81 m), including 31 m @ 2.2 g/t (42 m - 73 m) 17 m grading 2.17 g/t Au (116 - 133 m) and 3 m grading 2.73 g/t Au (87 - 90 m) individual meter assays include 15.2, 5.84, 8.36, 5.70, 4.70, 4.90 and 4.4 g/t Au

Higher gold intervals include drill hole OKD002 intersecting 5.70 m for 4.76 g/t, drill hole OKD001 intersecting 3.08 m for 2.84 g/t and drill hole OKD003 intersecting 1.0 m for 4.29 g/t. The extensive mineralization intersected in the first four holes suggests a strike length of more than 400 m and widths of up to 200 m, that is still open along strike and down dip. The 5th hole (OKD007) highlights the higher-grade potential. Three holes ended in mineralization, two are been extended.

Figure 4 - Twin Hills: A Camp Scale Gold System (~11km)

Figure 4 above reveals both the scale and potential of the project, by comparing the ~6 Moz Navachab pit outlined in yellow at same scale and rotated for illustrative purposes versus the surface geochemical anomaly outlined in red, as well as, drill hole locations. It is important to note that the Navachab mineralization is contained within plunging oreshoots in a banded marble, like what is being interested at Twin Hills and Goldkuppe.

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It is also hosted within a system of horizontal or shallow dipping sheeted veins within calcitic marbles and schists as in the Otjikoto deposit. There is evidence to support that similar sheeted vein sets occur at OSI’s properties.

Cm-scale quartz sulphide veins in schist

Brecciation and silicification in quartzite

Pyrrhotite in brecciated quartz vein

Arsenopyrite in cm scale veinlet in schist

Pyrite on margin of breccia in quartzite Figure 5 - Twin Hills Central Drill Core Exhibits

Goldkuppe and Extensions. The advanced stage project forms part of Osino’s core Karibib-Omaruru-Wilhelmstal exploration area. It covers gold mineralization within carbonate rocks belonging to the Karibib Formation over an extensive area. The Karibib rocks are folded into an overturned isoclinal antiform plunging shallowly to the north east with limbs dipping southeast. This antiform has later been refolded.

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Since the mid-1980s a series of geochemical, geophysical and geological surveys have defined several gold and copper anomalies, magnetic anomalies, chargeability anomalies and geologically generated targets in the Goldkuppe area. Approximately 10,000 m of RC and diamond drilling has been conducted in the area by at least three previous operators. Mineralization is shallow, in some cases just 9 m below surface, and some significant high- grade (3 g/t Au – 30 g/t Au) zones occur within the lower grade envelope.

Highlights of historical drilling are as follows: DDH OJD009: 18 m of 1.0 g/t Au, 0.14% Cu and 7.5 g/t Ag (from 9 m – 27 m) DDH OJD012: 28 m of 1.8 g/t Au and 5 g/t Ag (from 37 m – 65 m) DDH OJD001: 7 m at 9.0 g/t Au, 73 g/t Ag and 4.43% Cu (from 54 m – 61 m) DDH OJD008: 6 m at 5.3 g/t Au and 23 g/t Ag (from 48 m – 54 m) DDH OJD013: 4 m at 11.6 g/t Au (from 30 m – 34 m)

Many of the historic RC and diamond drill holes were of a reconnaissance type and were terminated at distances of less than 50 m sub-surface.

In the Goldkuppe area the Karibib Formation is underlain by Arandis schists in the core of the antiform. The Arandis Formation schists are the lithologies that hosts much of the Navachab gold mineralisation. There are granitic intrusions to the east of Goldkuppe and pegmatitic dykes, sills and blows are common. The carbonate rocks have been altered to skarn in irregular haloes – diopside and tremolite are common alteration minerals. Two major producing gold mines Navachab and Otjikoto are on trend as well as other smaller past producers and targets including Ondundu, Onguati, Sandamap and Epako.

The gold mineralization at Goldkuppe is hosted primarily by dolomite with minor zones in the underlying white and banded marbles – all within the Karibib Formation. Stefan A. Vollgger et al (2015) pointed out that Goldkuppe and Otjikoto are described as having a similar style of mineralisation to that of the Navachab gold deposit.

A wide zones of gold mineralization were intersected in several holes at the Oasis target. Here the mineralization is contained within sheeted quartz-pyrite veins associated with faulting and folding in the banded marble host lithology. These sheeted veins, which have a fairly consistent distribution and grade throughout the mineralized package, strike north- south and dip moderately to the east. This style of gold mineralization is typical of the multi-million ounce Navachab Gold Deposit 30 km to the southwest.

An initial scout drilling conducted in December 2017 at Wedge target returned best gold assays of 49 m grading 0.7 g/t (OJR210) and at Oasis 10 m grading 2.0 g/t (OJR215). A 2018 step-out drilling program from 2017, that aimed to delineating strike extensions and obtain data on structural and lithological controls on mineralization, intercepted mineralization of up to 77 m grading 0.4 g/t (OJD031), 37 m at 0.5 g/t (OJD028) and 37 m at 0.4 g/t (OJD027).

The Goldkuppe Project is focused on an anticlinal fold in marbles which strikes northeast and plunges in the same direction. The historical exploration focus was on the gossanous shoots within dolomitic marble which produced several high-grade gold intercepts. Goldkuppe also contains wide zones of low-grade skarn mineralization (e.g. OJR181 – 60 m at 0.7 g/t), as detailed above.

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Figure 6- Generalized Geological & Mineralization Relationships at Navachab Open Pit

The higher-grade mineralization is primarily associated with massive sulphides (pyrite and chalcopyrite) on or adjacent to the contact between dolomite and underlying white marble. Lower grade disseminated mineralization occurs within the skarn alteration zones which are often magnetic due to the presence of pyrrhotite. These zones can be 20 m or 30 m wide but are generally less than 1 g/t and can be less than 0.5 g/t. Gold also occurs in quartz – sulphide veins which are 1 cm – 10 cm wide. The mineralization is strongly structurally controlled with the massive sulphide zones occurring in the north – south orientated fold noses as saddle reefs and foliation parallel boudins.

Figure 7 - Characteristics of Goldkuppe Mineralized Zones, Representative Samples

Figure 7 Sourced from Solomon Resources Inc. technical report dated 2014 shows on plate (a) a coarsely annealed chalcopyrite, pyrite plus or minus pyrrhotite is noted. The interval is dominated by sulphides only, with an absence of silicate or carbonate gangue

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mineral phases. Massive sulphide bodies commonly grade into calc-silicate assemblages which are formed by interlocked dark-green black aggregations of clinopyroxene, tremolite, pyrite and chalcopyrite, (b). Small structurally controlled veins and breccias, sometime associated with high grade mineralized zones but also typical of broader lower grade mineralized zones are noted on plate (c) and (d). These veins, when hosted in marble units, have limited alteration selvedges.

Otjikoto East Exploration. The Otjikoto East Exploration Project comprises 5 large exploration licenses over a total of ~1,844 km2 in north-eastern Namibia. These licences cover the eastern strike extension of the Otjikoto Gold Mine geology over a length of approximately 80 km.

This project is also situated within the Northern Zone of the Damara Supergroup in central Namibia to the south of Tsumeb. Tsumeb is to the north of Otavi and the base metal mine of Kombat Copper. Just south of Otavi is B2Gold’s Otjikoto Mine. Osino’s license abuts the Otjikoto Mines and encompasses a 110 km strike length of prospective Otjikoto stratigraphy.

Figure 8 - Otjikoto East: Opening Up a New District

The exploration area is within a zone of convergence of major tectonic boundaries, having a likelihood to produce significant hydrothermal fluid flow during and immediately after the Damara orogeny. The setting is ideal for orogenic style gold mineralisation. Detailed structural interpretation from aeromagnetics and ground mapping is being conducted.

The Otjikoto deposit is situated just below the contact between the Karibib marbles within schists. The licences also cover turbidites belonging to the Kuiseb Formation within a regional syncline. The project area has been continuously under license for over 30 years,

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however no meaningful historical exploration has taken place due to calcrete and sand cover. Recently completed airborne geophysics, extensive soil and anthill as well as calcrete sampling has discovered five coherent gold anomalies to date. OSI has an ongoing drilling program.

Otjiwarongo Regional Gold Project. The project comprises 6 large exploration licenses covering over 3,000 km2 located near the town of Otjiwarongo, in central Namibia. The Project forms part of OSI’s ongoing target generation program. It is another gold- prospective and under-explored ground in the central part of the Damara Belt in Namibia. OSI has conduced preliminary reconnaissance field visits and land/farm access negotiations. Additionally OSI has been in preparation for an upcoming exploration and drill program at Etekero. A preliminary shallow bedrock drilling campaign for the Etekero target is planned for H2/19. Initial regional field programs are planned for the second half of 2019 on priority regional targets identified, with the aim of defining targets for detailed follow-up in late 2019 and early 2020.

UPCOMING EXPLORATION PROGRAMMES For 2019 Osino has planned extensive exploration programs across all its Project Areas. These include:

Karibib Gold Project Completion of the diamond drilling of Twin Hills Central Target. Prioritization of targets for diamond or RC drilling at Twin Hills West, Barking Dog and Clouds. Prioritization of targets along the Karibib Gold Trend (Airfield, West End and others). Review of regional top of calcrete drilling and determining whether further in-fill shallow calcrete sample drilling is required along the south-western extensions of the Karibib Fault Zone. Ongoing regional sampling in the Kranzberg area. The ongoing shallow 500-hole bedrock and calcrete sample drilling is expected to be between 5,000 m and 7,500 m in total.

Otjikoto East Gold Project OSI completed a regional surface sampling on priority areas at Otjikoto East Gold Project. Eleven anomalies were identified in calcrete and anthill sampling. Through further review and field checking four have been prioritized as targets worth drill-testing. Shallow percussion (RC) bedrock drilling is planned for Q3/19.

Initial shallow percussion bedrock drilling of the Fairview, Okumukanti North, Okumukanti South and Platform priority targets. Ongoing field checking and review of unsampled regional or conceptual target areas.

Otjiwarongo Regional Gold Project Initial shallow percussion (RC) drilling of the Etekero Target. Initial field reconnaissance programs will commence on other licences with the aim of identifying targets for follow-up in late 2019 or early 2020.

BALANCE SHEET AND CAPITAL STRUCTURE On July 28, 2018, Osino Resources Corp. (formerly Romulus Resources Ltd.) started trading on the TSX Venture Exchange. On April 20, 2018, the Company closed a private placement raising gross proceeds of $2.9M by issuing 32.5M shares at a price of $0.088 per share. On May 15, 2018 and June 15, 2018, 31.7M warrants issued in May and June

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2016 were exercised at a price of $0.044 per share raising approximately $1.4M. Up to September 30, 2018, the Company’s financing activities generated $5.64M.

Currently, Osino has 67.4M common shares issued and outstanding. A total of 5.13M warrants and 5.05M options are issued and outstanding. On a fully diluted basis 78.03M share are issued as at August 29, 2019. Of Osino’s 67.4M common shares issued, institutional investors and insiders hold approximately 50%, while another 20% is held by family and friends.

Figure 9 – Key Shareholders (70% Tightly Held Shares)

Effective July 15, 2019, OSI completed an oversubscribed non-brokered private placement raising gross proceeds of $3.6M through the issuance of 10.3M units. OSI anticipates that it has sufficient funds to meet the Company’s exploration expenditures and administrative costs for FY2019 and into 2020. As at August 29, 2019, OSI reported a cash on hand of $3.6M. The Company has minimal debt ($0.8M). As at December 31, 2018, Osino had working capital of $4.4M (including cash and cash equivalents totaling $4.2M).

VALUATION We are initiating coverage on OSI with a BUY rating and a 12-month target price of $2.70 per share. Our target price is based on the Company’s projects’ exploration potential to identify a large tonnage and multimillion-ounce deposit similar to the mines currently operating in and around Osino’s project areas. We expect management to reproduce their success with Otjikoto and outline at a minimum a 2 Moz Au deposit. Like Otjikoto and Navachab, as an example of a disseminated orogenic gold deposits, the potential to identify deposits of large tonnage that contain shoots of higher- grade gold in sulphide rich (including pyrrhotite) lenses is suggested by current and historic exploration works in the project areas.

Osino’s projects are at various stages of development and there is still significant work ahead. However, discovery has been made on the main targets. Additional drilling is underway on priority targets. Many other targets that are drill ready will also be drill tested. In the near term, Osino remains well positioned to continue advancing all of its projects. The Company has the requisite technical personal, management and access to capital markets (and sufficient funds at hand) to continue its exploration programs through 2019 and beyond.

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tonnage resource with similar grades that are being mined in the already established mines, the nearby operators (and others) could view Osino either for its ability to provide additional feed or its potential as a standalone project.

OTJIKOTO REDUX Our valuation of Osino is informed by its projects’ similarities to the current operating mines in and around its properties, as well as, its previous successes of developing and defining a deposit before successfully exiting to creating shareholder value. As such, we take a closer look at Otjikoto, a deposit previously developed by the current management of Osino and one that has similar characteristics with its current projects. OSI’s management as AngloGold veterans are intimately familiar with the Navachab deposit and its development as well.

Additionally, we highlight the manner in which Osino is assembling its present land package is similar to Auryx’s (previously run by Osino management). Auryx purchased the Wolfshaag, Otjikoto, Gerhardshausen and Okaputa Nord farms to consolidate Otjikoto and develop it prior to being acquired by B2Gold. Over the last couple of years, Osino has assembled 6,561 km2 in three project areas comprising 22 licenses that encompasses at least 26 exploration targets.

At Feasibility Study the total indicated run-of mine ore tonnes contained in the ultimate feasibility study pit design of Otjikoto were 29.41 Mt at an average head grade of 1.42 g/t (at a cut-off grade of 0.4 g/t). It contained approximately 1.3 Moz Au. Otjikoto had a mineral resource estimate effective August 2012 as detailed below.

Table 2: Otjikoto Mineral Resource Estimate, August 2012

Our valuation of Osino is focused on the potential of developing a relatively similar resource to Otjikoto and Navachab. This potential exists primarily at the Twin Hill and Goldkuppe prospects, centered on the Twin Hill Central target. Osino could potentially develop a resource here that could be a standalone project. This represents a potential resource target that is supported by both historic drilling and current work conducted by Osino. Although our valuation is reliant on a conceptual resource base, Osino’s three projects are located in a historic gold mining district and are contiguous to world class gold producing mines and past producers. Results of OSI’s recent drilling program are indicative of the extent of mineralization. Moreover, drilling is suggestive of the variety of resource size that can be developed within and proximal to the Twin Hill Central target. We highlight that similar to Otjikoto and Navachab, the potential to identify deposits that contain shoots of higher-grade gold in sulphide rich lenses is suggested by current and historic exploration works. A starter pit, whose initial years that is optimized over one of these zones could mine significantly higher grades over the first few years of LOM. The result being a much improved NPV.

We glean from Osino’s exploration result the potential to define a significant deposit. The results thus far highlight the potential for several outcomes. Although we expect the size and grade of a potential definable resource may vary, the likelihood of defining some form of deposit has materially appreciated. The extensive mineralization intersected in the first seven holes suggests a strike length of more than 800 m and widths of up to 200 m.

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Mineralization is still open along strike and down dip. The first two holes ended in mineralization and will be extended. In an environment of a disseminated orogenic gold deposits model mineralization extending beyond 1,000 m is not uncommon. Drilling results thus far are suggestive of these dimensions. On Table 3 below, we suggest some of the likely outcomes from OSI’s current exploration program.

For our valuation, although, we rely on more modest size conceptual resource estimate than even our lower end estimate of what is possible. The possibility that one or more of OSI’s targets can deliver a world class deposit exists.

Table 3: Otjikoto Mineral Resource Estimate, August 2012 Contained Au Strike length Down Dip Width Average S.G. Au (g/t) Tonnes (oz)

750 150 150 2.7 1.4 45,562,500 2,050,781 800 175 175 2.7 1.3 66,150,000 2,764,757 900 200 200 2.7 1.1 97,200,000 3,437,500 1000 400 200 2.7 1 216,000,000 6,944,444

All of OSI’s projects are along a major deep regional scale structure known to host gold, and where Osino and previous operators have identified gold mineralization within the highly prospective Damara Gold Belt.

The upside potential on success here is significant. The current status of the projects, notwithstanding our view that the projects can develop resources that will be attractive to other players, is supported given that there is an established milling capacity within the proximity of the projects. All other infrastructure within the project areas are advanced. This position is further supported by a potential strategic fit that that can unlock significant synergies should Osino develop a smaller deposit than is envisioned here.

DEJA ENTENDU Osino’s management has been here before. Starting in 2011, Auryx Properties Holdings (Pty) Ltd., a company that was managed by current Osino management, purchased the Wolfshaag, Otjikoto, Gerhardshausen and Okaputa Nord farms and consolidated the project areas until B2Gold completed acquisition of Auryx in July 2012 to commence work on the Otjikoto mine. The payoff at developing a fair size deposit, as exemplified by management’s earlier exit, is substantial.

Parenthetically, prior to selling Otjikoto to B2Gold, a number of Auryx’s and now OSI’s board and management were AngloGold Ashanti veterans. Navachab gold mine was owned and operated by AngloGold Ashanti since the company was formed in 1998. As at 31 December 2013, Navachab had gold Mineral Resources of 3.91 Moz and gold Ore Reserves of 1.92 Moz. In the year ended 31 December 2013, Navachab produced 63 Koz Au at a cash cost of US$691 per ounce and an all-in-sustaining cost of US$781 per ounce. In July 2014 Navachab was sold to QKR Corporation Limited, a private mining company. QKR acquired Navachab from AngloGold Ashanti in a transaction valued at US$110M.

At Feasibility Study Otjikoto’s major process design criteria included a plant throughput of 2.5 Mtpa for a LOM expected to be 12.46 years. Total LOM gold produced was estimated to be 1.3 Moz or about 112 Koz per year over LOM.

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Otjikoto Gold Mine started production in 2014. This deposit had a published Indicated Mineral Resource of 33 Mt at a grade of 1.37 g/t gold. These discoveries highlighted the Northern-Central (Swakop Zone) and the Northern Zone (Outjo Zone) of the Damara Orogen, sometimes referred to as the Gold Belt, and the region presents prime targets for further discovery.

Table 4: Otjikoto’s Major Process Design Criteria

Otjikoto at present has a mill throughput rate that is 40% larger than initial design. For the full year 2018, Otjikoto throughput rate was 3.5 Mtpa, processing 1.57 g/t Au head grade with a gold recovery rate of 98.0%. For FY18, Otjikoto produced 167.3 Koz at a cash operating cost of $502 per ounce and an AISC of $719 per ounce.

After being in production since 2014, Otjikoto’s reported resource contains more ounces than its Feasibility Study assumptions. Current resource contains 1.85 Moz Au. These facts highlight both the potential for expanded processing rate and also highlights the area’s potential to process material above resource grade, over a sustained period. In both cases our base case assumptions are significantly more conservative than current reality at Otjikoto suggests, as well as the 2012 Otjikoto feasibility study.

A starter pit, whose initial years that is optimized over one of the higher grade zones, could mine significantly higher grades over the first few years of LOM. For instance, historic drill hole OJD1 intersected 50 m of 2.1 g/t Au, 14.0 g/t Ag, 0.8% Cu (the drill hole ranging in S.G. from 2.90 to 4.14). OJD1 also included a 7 m section of 9.0 g/t Au, 73.0 g/t Ag and 4.43% Cu (S.G. 4.14). The result of optimizing the starter pit over such zones could be a significantly enhanced NPV, over our assumed lower global grade mined for the LOM.

The Otjikoto Plant was designed to crush ore, treat it in a grinding circuit utilizing conventional SAG and ball mills, with a CIL recovery process. The DFS estimated capital

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costs are $244.2M. The Otjikoto Project indicated robust economics. At a long-term gold price assumption of $1,550 per ounce, the project was projected to yield a positive after- tax NPV of $243.4M at a discount rate of 5%. The IRR after-tax is 23.6%. The project had a 2.7 year pay-back period.

Below we present our assumption of exploitation parameters for a conceptual resource developed at Twin Hill Central. Our valuation is based on these assumptions. Relative to the current steady state production at Otjikoto our base case assumptions are significantly conservative. We assume an annualized mill throughput rate to approximate around 2.5 Mtpa relative to the current 3.5 Mtpa at Otjikoto. Otjikoto is currently mining 1.54 g/t Au. Our assumption is an annual average of 1.2 g/t Au until OSI conducts further definition work. Given the jurisdiction’s relative safety and mining history, B2Gold used a discount rate of 5% for Otjikoto, we are assuming double that rate, a 10% discount rate, to account for the current stage of development. Moreover, we are using a long-term gold price assumption of US$1,400 per ounce, relative to the spot price that is around $1,500 per ounce (and the $1,550 per ounce Otjikoto feasibility study gold price).

Table 5: Twin Hill Central Major Process Design Assumption Project Parameter Assumptions Gold Equivalent Grade (g/t) 1.2 Mineable Resource (Mt) 35 Throughput (tpd) 7,000 Mine Life (Years) 14 Gold Recovery (%) 96

Annual Gold Equivalent Production (koz Au) 94,639 Cash Cost (US$/oz produced) 526 AISC (US$/oz produced) 599

Operating Costs Mining Cost (US$/t milled) $4.00 On-Site Processing Cost (US$/t milled) $13.50 G&A Cost (US$/t milled) $2.50 Total On-Site Operating Costs (US$/t milled) $20.00

Initial Capital Cost (US$M) $250 LOM Sustaining Capital Cost (US$M) $25 Total Capital Cost (US$M) $275

Post-Tax NPV @ 10% (US$M) 191

Pre-Tax IRR (%) 23%

Overall, even with our modest assumptions, our base case scenario results in a project NPV of US$191M NPV10%, utilizing a conceptual resource target of 1.3 Moz recoverable, having gold grading 1.2 g/t Au.

Applying face value asset/liability adjustments of $25M for regional exploration credits, and corporate and exploration expenses of $20M, we derive a NAV of C$3.80/share at a NAV multiple of 1.0x. Until further exploration success, we value OSI on a 0.7x NAV multiple or a target price of C$2.70 per share.

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Table 6: Twin Hill Central Major Process Design Assumption

Ne t A s s e t V a lu a t io n Discount $ Million $/Share Target Derivation $/Share Twin Hill Central (100%) 10.0% $191 $2.86 Project NAV $2.86 Multiple 0.7x Project NAV $191 $2.86 $2.00 Exploration Credit $25 $0.26 Adjustments $0.01 Corporate Expenses 10.0% ($20) ($0.30) Target ($/shr) $2.01 Cash $3.5 $0.05 ITM Warrants $0 $0.00 Adjusted NAV $200 $2.87 USD:CAD exchange 1.32 12-Month Target C$2.70 Source: M Partners P/NAV 0.20x Implied ROR 255%

Given OSI’s exploration results, the potential to outline a high tonnage at about 1.0 g/t Au is relatively high. We highlight the fact that the current Otjikoto milling rate is 3.5 Mtpa. If we make similar assumptions for Osino’s assets, even at a lower grade, the NPV that can be derived is higher than our base case assumption, as higher tonnages not only imply longer LOM, but also entail a higher throughput rate, leading to economies of scale that results in lower cash cost per ounce produced.

SENSITIVITY ANALYSIS At our chosen discount rate of 10% and our long-term price of US$1,400 per ounce of gold, we derive a robust post-tax NPV10% and IRR of US$191M and 23%, respectively. However, if gold price moves towards US$1,500 per ounce the NPV can easily add another $50M. Similarly, at US$1,300 per ounce gold, the NPV remains at a healthy US$141M.

The rerating potential with additional exploration and the adjustment of the discount rate is also evident (table 7). If the discount rate is reduced by 3%, the increase in the NPV could be closer to $53M (depending on gold price). Hence, additional upside potential on our valuation is evident.

Table 7: Sensitivity Tables Discount Rate (%) 191,387 7% 8% 9% 10% 11% 12% 13% 1,100 98 78 60 43 28 14 1 1,200 156 133 112 93 75 59 43 1,300 215 188 164 142 122 103 86 1,400 273 244 216 191 168 147 128 1,500 332 299 269 241 215 192 170 Gold Price ($/oz) Gold 1,600 391 354 321 290 262 236 212 Grade (g/t Au) 191,387 1 1.1 1.2 1.3 1.4 1.5 1.6 1,100 (47) (2) 43 89 134 179 224 1,200 (6) 43 93 142 191 241 290 1,300 35 89 142 196 249 302 356 1,400 76 134 191 249 307 364 422 1,500 117 179 241 302 364 426 488

Gold Price ($/oz) Gold 1,600 158 224 290 356 422 488 553

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COMPARABLES Using B2Gold’s US$180M acquisition of Otjikoto as a precedent transaction, Otjikoto was acquired for approximately US$90.00 per in situ resources ounce as at the transaction date. Current EV pre in situ ounce for select developers is detailed below. The average is US$48 per global in situ resources ounce.

Table 8: Gold EV/oz and EV/oz Au Eq

Market Working Enterprise Global Reserve & Resources Global CapitalizationCapital Value Au Au AuEq AuEq EV/oz EV/oz Company Symbol (millions) (millions) (millions) (Moz) (g/t) (Moz) (g/t) % Au Au AuEq Condor Gold Plc AIM:CNR 43 1 42 1.9 6.2 1.9 3.2 97% 22.59 21.97 Corvus Gold Inc. TSX:KOR 289 4 285 3.6 0.4 3.7 0.4 96% 79.47 76.16 Eastmain Resources Inc. TSX:ER 42 0 41 1.7 6.6 1.7 6.7 99% 23.70 23.46 Gold Standard Ventures Corp TSX:GSV 372 2 367 3.6 0.8 3.8 0.9 94% 102.38 96.65 Granada Gold Mine Inc. TSXV:GGM 8 -6 9 1.6 2.2 1.6 2.2 100% 5.94 5.94 Lincoln Mining Corporation TSXV:LMG 1 -3 2 0.5 1.5 0.5 1.6 100% 4.21 4.21 Lion One Metals Limited TSXV:LIO 68 9 59 0.8 9.2 0.8 9.2 100% 77.06 77.06 Marathon Gold Corporation TSX:MOZ 212 15 196 4.2 1.8 4.2 1.8 100% 46.48 46.48 Monarch Gold Corporation TSX:MQR 66 5 66 3.8 9.5 3.8 2.9 100% 17.68 17.68 Nighthawk Gold Corp. TSX:NHK 133 18 114 2.6 1.6 2.6 1.6 100% 43.65 43.65 Northern Empire Resources Corp. TSXV:NM 87 10 77 1.0 1.3 1.0 1.3 100% 76.85 76.85 Osisko Mining Inc. TSX:OSK 958 77 914 7.4 2.1 7.4 2.1 100% 123.40 123.40 Osprey Gold Development Ltd. TSXV:OS 4 0 4 0.3 3.2 0.3 3.2 100% 12.69 12.69 Pure Gold Mining Inc. TSXV:PGM 202 2 200 2.5 8.7 2.5 8.7 100% 78.93 78.93 Red Pine Exploration Inc. TSXV:RPX 15 2 13 0.7 1.7 0.7 1.7 100% 19.91 19.91 Revival Gold Inc. TSXV:RVG 37 0 36 2.0 1.2 2.0 1.2 100% 18.33 18.33 Rupert Resources Ltd. TSXV:RUP 92 -5 96 0.8 2.6 0.8 2.6 100% 114.24 114.24 Sarama Resources Ltd TSXV:SWA 23 3 18 1.6 1.7 1.6 1.7 100% 10.63 10.63 Average 48.78 48.23

TOP 15 SHAREHOLDERS Table 9: Top 15 Shareholders Top 15 Shareholders # Shares % Total Resolute Mining Limited 32.36 15.4% Zebra Holdings and Investments S.à.r.l. 31.27 14.9% Clark, Richard Peter 7.88 3.8% U.S. Global Investors, Inc. 4.05 1.9% Lorito Holdings S.à.r.l. 4.00 1.9% Konwave AG 2.89 1.4% Stuart, Hugh David 1.67 0.8% Fuchs & Associes Finance SA 1.05 0.5% Chase, Robert F. 0.90 0.4% Ross, Kevin J. 0.70 0.3% Field, David 0.51 0.2% Universal-Investment-Gesellschaft mbH 0.20 0.1% Davidson, Alexander John 0.13 0.1% BlackRock, Inc. 0.06 0.0% Ahead International Portfolio Management 0.06 AG 0.0% TOTAL 87.72 41.77%

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KEY RISKS Potential risks to our valuation and estimates are: issues related to resources or mining grades to maintain operations; adverse changes in commodity prices; exchange rates; permitting risks; and market sentiment. We consider geopolitical risk to be high as Namibia is located in Southern Africa, despite it having a long-established mining culture, a modern mining code and entrenched international trade agreements.

Operational and Commodity Price Risks – High Like all mining and development companies, OSI is subject to various factors beyond its control, including, but not limited to: fluctuations in commodity and consumables prices; operational issues, such as unforeseeable development delays; work stoppages; unexpected environmental issues; unanticipated metal recoveries; and inflationary factors. Furthermore, certain technical risks are associated with project exploration and development.

Development and Exploration Risks – High As is the case with all exploration companies, OSI also must outline new resources to maintain market visibility at its operations in Namibia. OSI has an ongoing exploration program that aims to complete a resource estimate within its main current targets. The Company has begun work towards this goal, success however is not guaranteed. Additionally, many of our assumptions related to technical and economic assumptions remain subject to change.

Financial Risk – Average At the current rate of exploration and development expenditure OSI is well financed to advance its projects well into 2019 and H1/20. It has working capital of C$4.3M for FY2019 which should be sufficient to fund ongoing exploration and development. Consequently, for future exploration expenditures we estimate the Company will need an additional cash injection in the near-term.

Permitting Risk – Very High Although Namibia has a stable history of international mining companies operating successfully in the country, due to its location on the continent it is not always perceived favorably. While permitting new mines and deposits poses inherent risks regardless of the jurisdiction, we do consider them to be relatively moderate for OSI in Namibia.

KEY FOUNDERS AND MANAGEMENT Heye Daun CEO, Founder & Director Mining engineer and company builder with 25 years of mining and public markets experience. Delivered value with two successful exits (AYX sold to BTO for C$180M in 2012 and EGX merged into LUM in a C$200M transaction in 2016). Previous roles in banking and fund management. First 10 years of career with Rio Tinto and AngloGold, building and operating mines in Africa.

Alan Friedman President, Founder & Director Toronto-based public markets entrepreneur. Over 20 years of experience with various successful acquisitions, financings and go-public transactions in mining, oil & gas, cannabis, e-sports and technology. Formerly with Investec Bank and Director of the Canada-Southern Africa Chamber of Business.

Dave Underwood VP Exploration Experienced gold exploration geologist with a strong aptitude for structural geology. Formerly with AngloGold, Anglo American and De Beers. Last 12 years he worked as an independent exploration consultant in exploration, target generation, evaluation and due diligence programs for Newmont, AngloGold Ashanti, Silver Bull Resources, Roxgold and others.

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Jon Andrew Country & Exploration Manager Experienced geologist with over 20 years in exploration and mining geology in Africa and the Middle East, including diverse experience in precious, base and rare metals and industrial minerals. Formerly with BHP Billiton, Kumba Iron Ore and others. Deep knowledge of Namibian geology and exploration. Built Osino’s team of young, dynamic and driven Namibian geologists and support staff, infrastructure, systems and controls and executed a large and diverse exploration program to discovery.

Figure 10 – Total Land Holdings

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Disclosure Code: 6

Disclosure The particulars contained herein were obtained from sources which we believe to be reliable but are not guaranteed by us and may be incomplete. The opinions expressed are based upon our analysis and interpretation of these particulars and are not to be construed as a solicitation or offer to buy or sell the securities mentioned herein. Disclosure codes are used in accordance with Policy 3400 of IIROC.

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